Third Quarter 2024 Report of TCL Technology Group Corporation
Stock Code: 000100 Stock Abbr.: TCL TECH. Announcement No.: 2024-080
TCL 科技集团股份有限公司
TCL Technology Group Corporation
Third Quarter 2024 Report
October 2024
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Third Quarter 2024 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 .......................................................................... 8
Section IV Shareholder Information .............................................................................................. 12
Section V Other Significant Events ................................................................................................ 15
Section VI Quarterly Financial Statements ................................................................................... 16
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Third Quarter 2024 Report of TCL Technology Group Corporation
Section I Important Notices 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 that
this quarterly report is factual, accurate, and complete, and shall be jointly and
severally liable for any misrepresentations, misleading statements, or material
omissions therein.
Mr. Li Dongsheng, the person-in-charge of the Company, Ms. Li Jian, the
person-in-charge of financial affairs (Chief Financial Officer), and Ms. Jing
Chunmei, the person-in-charge of the financial department, hereby guarantee
that the financial statements in this Report are factual, accurate, and complete.
All of the Company’s directors attended the Board meeting for the review of
this Third Quarter 2024 Report.
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 2024 Report of TCL Technology Group Corporation
Definitions
Term Refers to Definition
The “Company”, the “Group”,
Refers to TCL Technology Group Corporation
“TCL”, “TCL TECH.”, or “we”
Reporting Period Refers to The period from January 1, 2024 to September 30, 2024.
Q3 2024 Refers to The period from July 1, 2024 to September 30, 2024.
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)
GW Refers to Gigawatt, power unit for solar cells, 1GW = 1,000 megawatts
RMB Refers to Renminbi
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Third Quarter 2024 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
From the beginning of
Q3 2024 Change the year to the end of Change
the Reporting Period
Operating revenue (RMB) 42,804,760,985 -10.75% 123,028,497,947 -7.57%
Net profits attributable to
the company’s 530,108,230 -58.29% 1,525,319,763 -5.34%
shareholders (RMB)
Net profits attributable to
the company’s
shareholders after non- 169,910,967 -84.66% 728,668,028 43.58%
recurring gains and losses
(RMB)
Net cash generated from
operating activities — — 22,000,714,536 36.28%
(RMB)
Basic earnings per share
0.0286 -58.31% 0.0821 -5.63%
(RMB/share)
Diluted earnings per share
0.0282 -58.35% 0.0812 -5.36%
(RMB/share)
Weighted average return Decrease by 1.46 Decrease by 0.25
1.00% 2.87%
on equity (%) percentage points percentage points
September 30, 2024 December 31, 2023 Change
Total assets (RMB) 393,795,228,854 382,859,086,727 2.86%
Owner's equity
attributable to the
53,014,857,861 52,921,867,086 0.18%
company's shareholders
(RMB)
(II) Non-recurring profit and loss items and amount
Applicable □ Not applicable
Unit: RMB
Amount from the beginning of the
Item Amount in the Reporting period
year to the end of the Reporting Period
Gains and losses on disposal of non-current assets
107,746,900 156,185,954
(inclusive of impairment allowance write-offs)
Public grants charged to current profits and loss
(except for public grants which are closely related to
the Company's daily operations, comply with
384,161,162 1,356,764,489
national policies, are granted based on determined
standards, and have a continuous impact on the
Company's profits or losses)
The profits or losses generated from changes in fair
value arising from financial assets and financial
6,825,607 3,515,257
liabilities held by non-financial enterprises and the
profits or losses from the disposal of such financial
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Third Quarter 2024 Report of TCL Technology Group Corporation
assets and financial liabilities, except for the
effective hedging business related to the company’s
normal business operations
Reversal of provision for impairment of receivables
30,500,000
that have been individually tested for impairment
Non-operating income and expenses other than the
465,516,476 724,147,192
above
Less: Amount affected by income tax 140,851,280 297,070,538
Amount affected by equity of minority
463,201,602 1,177,390,619
shareholders (net of tax)
Total 360,197,263 796,651,735
Note: According to the relevant provisions of the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering
Their Securities to the Public—Non-Recurring Gain/Loss (Revised in 2023), public grants closely related to the Company’s normal
business operations, in compliance with national policies, received according to determined criteria, and with a continuous impact on
the Company’s profits and losses shall be presented as recurring profits and losses. Public grants presented as non-recurring profits or
losses in the third quarter of 2023 comprise the public grants related to assets amounting to RMB 287.77 million, which should be
classified as recurring profits or losses in accordance with the relevant provisions of the 2023 Explanatory Announcement No. 1. The
change did not have any material impact on the Company's financial position and operation results.
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 are 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.
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Third Quarter 2024 Report of TCL Technology Group Corporation
(III) Changes of key accounting data and financial indicators and reasons therefor
Applicable □ Not applicable
Unit: RMB
Increase / decrease ratio
Balance Sheet items Ending balance Beginning balance Reason for change
(%)
Primarily due to the increase in
Construction in progress 26,689,963,785 17,000,052,457 57.0 investment of the display
production line
Primarily due to the optimization
Short-term borrowings 11,346,551,303 8,473,582,304 33.9
of the debt and cost structure
Primarily due to the increase in
Notes payable 7,920,031,353 5,610,802,064 41.2
loans paid by notes
Increase / decrease ratio
Income Statement Item Current balance Prior balance Reason for change
(%)
Due to an increase in falling
Asset impairment losses
-3,540,212,533 -2,432,074,536 45.6 price of inventory accrual in line
(losses are indicated by "-")
with the market
Cash Flow Statement Increase / decrease ratio
Current balance Prior balance Reason for change
items (%)
Mainly due to an increase in cash
Net cash generated from
22,000,714,536 16,144,013,013 36.3 from sale of commodities and
operating activities
rendering of services
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Third Quarter 2024 Report of TCL Technology Group Corporation
Section III Management Discussion and Analysis
Since this year, we witnessed increasing complexity and volatility in world politics, with
escalating geopolitical tensions, and continuously restructuring international trade relations, while the
global economy exacerbated the uncertainty with repeat measures to counter inflation seen worldwide.
In response to these challenges, the Company focused on the development of displays and new energy
photovoltaics, and enhanced the resilience of its business and optimized its competitive edge in
pursuit of high-quality sustainable development. In the first three quarters, the Company reported an
operating revenue of RMB 123.028 billion, and the net profit attributable to shareholders of the listed
company of RMB 1.525 billion.
During the Reporting Period, the display industry experienced a period of supply-end stability,
characterized by growing demand for larger-sized products. This healthy supply-demand dynamic
contributed to improved year-on-year profitability, particularly for mainstay products like television
panels. During the Reporting Period, the Company's display business took a proactive stance in
optimizing both business strategies and structure, with an operating revenue of RMB 76.956 billion,
up by 25.74% year-on-year; a net profit of RMB 4.443 billion, representing a year-on-year increase
of RBM6.067 billion. Despite the ongoing growth of global demand for photovoltaic installations,
the overall industry faced operating challenges due to a concentrated release of capacity, which has
resulted in a widening supply-demand gap and a significant decline in product prices compared to the
previous year. TZE maintained positive operating cash flow and a relentless focus on cost efficiency,
while accelerating organizational changes to address industry challenges. TZE generated RMB
22.582 billion of operating revenue in the first three quarters, and resulted in TCL Technology's net
profits attributable to the parent company decreased by RMB 1.813 billion.
Display Business
Despite the global economic slowdown and subdued consumer demand, which dampened
demand for large-sized panels in the first three quarters of 2024, the industry's competitive landscape
improved, and the on-demand production trend laid a solid foundation for the healthy development
of the industry. Seasonal fluctuations in downstream inventory demand led to a moderate increase in
TV panel prices in the first half of the year, followed by a dip in the third quarter and the price has
remained stable since then. The structural price hike and subsequent fluctuations in a narrow range
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Third Quarter 2024 Report of TCL Technology Group Corporation
in small and medium-sized panel products were driven by innovations in hardware products and the
need for replacements.
By leveraging its strengths in terms of scale and efficiency, TCL CSOT consistently optimized
its business and product mix with favorable price increases for key products compared to the same
period from last year, and significantly boosted operating performance year on year. During the
Reporting Period, the display business achieved an operating revenue of RMB 76.956 billion, with a
year-on-year increase of 25.74%, and a net profit of RMB 4.443 billion, with a year-on-year
increase of RMB 6.067 billion; and net cash flows from operating activities of RMB 19.838
billion.
In the large-sized products segment, TCL CSOT, on the basis of on-demand production, was
well-poised to lead the upgraded and high-end large-sized TV panels, impelling the healthy and sound
development of the industry. During the Reporting Period, the Company solidified its position as the
world's second-largest TV panel supplier, leading the global market in both 65-inch and 75-inch
segments. The share of 65-inch and larger products in total TV panel shipment area reached 55%,
while the Company vigorously develop large commercial displays such as interactive whiteboards
and splicing screens. In the mid-size segment, the Company significantly increased its market shares
in IT and vehicle-mounted products with the product development of t9 production line as scheduled
and customer acquisition efforts. At present, the Company is the world's second largest monitor
supplier, and holds the top spot in the global gaming monitor market. Furthermore, the Company has
successfully secured partnerships with several leading international laptop manufacturers and
achieved SoP. In the small-size segment, the Company is focused on capturing an incremental share
of the mid-to-high-end consumer electronics market. During the Reporting Period, the Company
cemented its position as the world's second largest supplier of LTPS smartphone panels to brand
customers. Meanwhile, shipments of flexible OLED mobile phone panels experienced steady growth,
with an increased proportion of high-end products.
During the Reporting Period, the Company's Board of Directors approved the strategic
acquisition of an 80% stake in LG Display (China) Co., Ltd. and a 100% stake in LG Display
(Guangzhou) Co., Ltd. by TCL CSOT. This move is expected to enhance the Company's technology
portfolio in display production lines, strengthen partnerships with global customers, and drive
profitability.
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Third Quarter 2024 Report of TCL Technology Group Corporation
Looking at the longer term, global display terminal sales are expected to remain stable. The size
growth trend of large-sized products will drive the robust growth of display areas. The improving
supply-side structure will push the industry to pivot back on reasonable commercial returns, and the
display industry's cyclical fluctuation will gradually weaken. TCL CSOT will continue to develop
healthily and stably, while enhancing both corporate profitability and value.
New energy photovoltaics and other silicon materials business
Since 2024, the installed capacity of global PV at the user end has been on an upward trajectory.
However, the supply-demand imbalance and intensified competition in the photovoltaic industry have
led to a sustained decline in product prices, eroding profitability and pushing industry players into
negative cash margins. At the end of August, a trend had been shown featuring a stable price
throughout the supply chain, and the industry is poised to bottom out with continued consolidation
and elimination of outdated capacity. During the Reporting Period, TZE achieved an operating
revenue of RMB 22.582 billion, a year-on-year decrease of 53.6%, net profits negative RMB 6.478
million, and net cash flows from operating activities of RMB 2.562 billion due to falling prices for
major products across the industry chain as well as substantial setbacks in both financial performance
and stock prices of Maxeon, with its controlling interests held by TZE.
To navigate the tough industry environment, the Company focused on extreme cost efficiency,
built a robust Industry 4.0 foundation, and executed a global strategy, with the aim to promote a
sustainable industry ecosystem characterized by healthy competition. By leveraging technological
innovation and lean manufacturing, the Company established a competitive edge with ongoing efforts
to optimize silicon material utilization, reduce furnace costs, increase wafer output per kilogram, and
proactively address cyclical swings in the market during the Reporting Period, which drove the
industry’s transition to N-type and larger-sized products. At the end of the Reporting Period, the
company’s N-type products monthly output per unit was approximately 505kg higher than the
industry runner-up. Additionally, the company’s wafer yield per kilogram surpassed that of the
second best in the industry by approximately 1 piece. During the Reporting Period, the Company’s
monocrystalline silicon production capacity for photovoltaic segment rose to 190GW. Shipments of
photovoltaic materials amounted to approximately 94.86GW, reflecting an 11.4% year-on-year
increase. The Company ranked first in the industry with a 19.2% market share for silicon wafers. By
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Third Quarter 2024 Report of TCL Technology Group Corporation
upgrading Industry 4.0 manufacturing processes, the Company established flexible and synergistic
partnerships with its supply chain. The high traceability of our products enhanced customer loyalty
and global competitiveness. In collaboration with RELC fully owned by Saudi Arabia’s Public
Investment Fund (PIF), and Vision Industries, the Company built the world’s largest overseas crystal
wafer plant to bolster its global competitiveness.
Amid cyclical bottom in the industry, the Company actively pushed ahead with its organizational
restructuring, business changes, and management optimization to bolster its competitive position.
Looking ahead, the supply-side adjustments have positioned the industry for high-quality growth, but
the global photovoltaic industry is expected to keep intense competition in the near term. In response
to operational challenges, TZE took rational measures by adjusting its production and sales structure,
ensured positive cash flow, and strove for the highest level of cost efficiency, so as to strengthen its
competitiveness. The global renewable energy market presents ample growth opportunities, yet the
distribution of production capacity worldwide remains uneven. The Company’s management team
believes that the principle of "survival of the fittest” within the photovoltaic industry would contribute
to a more optimized long-term industry landscape, enhance profitability, and has confidence that it
can leverage the industry bottom so as to build a lasting competitive advantage.
Looking at the future, the display industry is expected to experience further consolidation under
the Matthew effect as large-scale manufacturers continue to cement their dominant positions. In the
meanwhile, the emerging trends such as. the growing demand for larger displays and AI applications
will drive new growth opportunities, ultimately enhancing industry profitability. The photovoltaic
industry is still poised for significant growth globally. The Company's new energy photovoltaic
business will strengthen its operational resilience and competitive edge to navigate through industry
cycles. By upholding the spirit of "Venturing Midstream and Striving to Win", the Company will
firmly grasp the opportunities brought by transformations in the technology manufacturing industry
and the global energy structure, and continue to implement the business strategies of "improving
operational quality and efficiency, enhancing strengths to shore up weaknesses, innovation-driven
development as well as accelerating global expansion" in order to achieve sustainable, high-quality
development and take on a leading role in the global market.
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Third Quarter 2024 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 Total number of preferred shareholders with resumed
shareholders by the end of 596,865 voting rights by the end of the Reporting Period (if 0
the Reporting Period any)
Shareholdings of top 10 shareholders of ordinary shares (excluding the lending of shares under refinancing)
Shareholding Number of Shares in pledge, marked
Nature of Number of
Name of shareholder percentage restricted or frozen
shareholder shares held
(%) shares held Status Number
Li Dongsheng
Ningbo Jiutian Liancheng Domestic
Pledge by
Equity Investment individual/Domestic 6.74% 1,265,347,805 673,839,802
Jiutian 293,668,015
Partnership (Limited general legal entity
Liancheng
Partnership)
Hong Kong Securities
Foreign legal entity 3.81% 715,658,083
Clearing Company Ltd.
Huizhou Investment
Public legal entity 2.85% 535,767,694
Holding Co., Ltd.
Wuhan Optics Valley
Industrial Investment Co., Public legal entity 2.41% 452,866,342 In pledge 226,430,000
Ltd.
China Securities Finance Domestic general
2.19% 410,554,710
Corporation Limited legal entity
Industrial and Commercial Fund, wealth
Bank of China - Huatai- management 1.92% 359,767,630
Pinebridge CSI 300 ETF product, etc.
China Construction Bank - Fund, wealth
Efund - CSI 300 Initiated management 1.27% 238,696,515
ETF product, etc.
Perseverance Asset
Management Partnership Fund, wealth
(Limited Partnership) - management 1.18% 222,000,000
Gaoyi Xiaofeng No. 2 product, etc.
Zhixin Fund
Bank of China Limited - Fund, wealth
Huatai-Pinebridge CSI management 0.94% 176,087,160
Photovoltaic Industry ETF product, etc.
Shareholdings of top 10 non-restricted shareholders
(excluding the lending of shares under refinancing and locked-up shares held by senior management)
Number of non-restricted ordinary shares held at Share type and quantity
Name of shareholder
the end of Reporting Period Type Quantity
RMB-
Hong Kong Securities
715,658,083 denominated 715,658,083
Clearing Company Ltd.
ordinary shares
Li Dongsheng
Ningbo Jiutian Liancheng RMB-
Equity Investment 591,508,003 denominated 591,508,003
Partnership (Limited ordinary shares
Partnership)
Huizhou Investment RMB-
535,767,694 535,767,694
Holding Co., Ltd. denominated
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Third Quarter 2024 Report of TCL Technology Group Corporation
ordinary shares
Wuhan Optics Valley RMB-
Industrial Investment Co., 452,866,342 denominated 452,866,342
Ltd. ordinary shares
RMB-
China Securities Finance
410,554,710 denominated 410,554,710
Corporation Limited
ordinary shares
Industrial and Commercial RMB-
Bank of China - Huatai- 359,767,630 denominated 359,767,630
Pinebridge CSI 300 ETF ordinary shares
China Construction Bank - RMB-
Efund - CSI 300 ETF 238,696,515 denominated 238,696,515
Initiated ordinary shares
Perseverance Asset
Management Partnership RMB-
(Limited Partnership) - 222,000,000 denominated 222,000,000
Gaoyi Xiaofeng No. 2 ordinary shares
Zhixin Fund
Bank of China Limited - RMB-
Huatai-Pinebridge CSI 176,087,160denominated 176,087,160
Photovoltaic Industry ETF ordinary shares
Among the top 10 shareholders, Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity
Note on the above Investment Partnership (Limited Partnership) became persons acting in concert by signing the
shareholders’ associations or Agreement on Concerted Action. Mr. Li Dongsheng holds 898,453,069 shares and Ningbo Jiutian
concerted actions Liancheng Equity Investment Partnership (Limited Partnership) holds 366,894,736 shares,
representing 1,265,347,805 shares in total and becoming the largest shareholder of the Company.
Explanation on the top 10
ordinary shareholders At the end of the Reporting Period, Wuhan Optics Valley Industrial Investment Co., Ltd., among
participating in securities the shareholders above, held certain shares of the Company through a credit security account.
margin trading (if any)
Participation of shareholders holding more than 5%, top 10 shareholders, and top 10 non-restricted shareholders in the lending of shares
under the refinancing business
Applicable □ Not applicable
Unit: share
Participation of shareholders holding more than 5%, top 10 shareholders, and top 10 non-restricted shareholders in the lending of
shares under the refinancing business
Shares lent under
Shares in the ordinary Shares in the ordinary Shares lent under
refinancing at the
account and credit account account and credit refinancing at the end
beginning of the period
at the beginning of the account at the end of the of the period that have
that have not been
Name of period period not been returned
returned
shareholder (full
name) Proporti
Proportion Proportion Proportion
on to
Total to total Total to total Total Total to total
total
number share number share number number share
share
capital capital capital
capital
Industrial and
Commercial Bank
of China - Huatai- 140,037,730 0.75% 136,900 0.001% 359,767,630 1.92% 0 0%
Pinebridge CSI
300 ETF
China
Construction Bank
52,602,215 0.28% 125,900 0.0007% 238,696,515 1.27% 0 0%
- Efund - CSI 300
Initiated ETF
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Third Quarter 2024 Report of TCL Technology Group Corporation
Bank of China
Limited - Huatai-
Pinebridge CSI 204,079,760 1.09% 1,602,800 0.01% 176,087,160 0.94% 0 0%
Photovoltaic
Industry ETF
Change in top 10 shareholders and top 10 non-restricted shareholders due to securities lending/returning under refinancing as compared
to the previous period
□Applicable Not applicable
(II) Total number of preferred shareholders and shareholdings of the top 10 preferred shareholders
□Applicable Not applicable
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Third Quarter 2024 Report of TCL Technology Group Corporation
Section V Other Significant Events
1. Derivative investments for hedging purposes made during the Reporting Period
Unit: RMB'0,000
Ending contractual amount
Beginning amount Gain/loss
Ending amount as % of the Company's
in the ending net assets
Type of contract
Reporting
Contractual Transaction Contractual Transaction Period Contractual Transaction
amount limit amount limit amount limit
1. Forward forex contracts 3,039,040 114,095 5,512,867 213,987 40.35% 1.57%
33,832
2. Interest rate swaps 407,686 12,231 308,838 9,265 2.26% 0.07%
Total 3,446,726 126,326 5,821,705 223,252 33,832 42.61% 1.63%
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, loss from changes in the fair value of hedged
items amounted to RMB 60.7 million; profit from the delivery of due
Description of actual profits and losses during the
forward exchange contracts amounted to RMB 246.06 million, and profit
Reporting Period
from the valuation of outstanding forward exchange contracts amounted
to RMB 152.96 million.
During the Reporting Period, the Company’s main foreign exchange risk
exposures included exposures of assets and liabilities denominated in
foreign currencies arising from business such as outbound sales, raw
Description of the hedging effect material procurement, and financing. The uncertain risks arising from the
exchange rate fluctuations were effectively hedged by using derivative
contracts with the same purchase amounts and maturities in opposite
directions.
2. Other significant events during the Reporting Period
□Applicable Not applicable
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Third Quarter 2024 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 Ending balance Beginning balance
Current assets:
Monetary assets 24,816,231,022 21,924,270,872
Settlement reserves
Funds on loan 7,007,400
Held-for-trading financial assets 30,071,225,566 23,184,116,975
Derivative financial assets 147,012,726 108,007,603
Notes receivable 199,819,395 615,391,820
Accounts receivable 23,482,521,853 22,003,651,259
Receivables financing 1,174,912,739 954,409,558
Prepayments 2,686,308,360 2,946,288,443
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract provisions receivable
Other receivables 4,661,994,764 5,706,855,391
Of which: Interests receivable
Dividends receivable 681,036,032 1,381,489,936
Financial assets purchased under sale-back
agreement
Inventories 21,356,758,945 18,481,754,865
Including: Data resources
Contract assets 384,804,675 343,907,118
Held-for-sale assets 162,415,745
Non-current assets due within one year 103,308,277 580,694,984
Other current assets 6,745,841,332 5,286,533,753
Total current assets 115,837,747,054 102,298,298,386
Non-current assets:
Loans and advances to customers
Debt investments 141,110,158 122,348,768
Other debt investments
Long-term receivables 693,836,138 720,281,051
Long-term equity investments 24,500,474,910 25,431,271,193
Investments in other equity instruments 384,264,002 386,648,418
Other non-current financial assets 2,499,076,821 2,971,566,228
Investment property 831,742,422 911,679,154
Fixed assets 164,949,332,826 176,422,620,794
Construction in progress 26,689,963,785 17,000,052,457
Productive biological assets
Oil and gas assets
Right-of-use assets 6,137,866,912 6,386,446,373
Intangible assets 18,223,415,580 18,419,544,291
Including: Data resources
Development costs 2,246,733,656 2,541,492,504
Including: Data resources
Goodwill 12,139,929,725 10,516,741,724
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Third Quarter 2024 Report of TCL Technology Group Corporation
Long-term deferred expenses 2,352,710,334 3,402,689,489
Deferred income tax assets 2,677,836,891 2,246,221,719
Other non-current assets 13,489,187,640 13,081,184,178
Total non-current assets 277,957,481,800 280,560,788,341
Total assets 393,795,228,854 382,859,086,727
Current liabilities:
Short-term borrowings 11,346,551,303 8,473,582,304
Borrowings from the Central Bank 707,127,866 995,009,514
Borrowed funds
Held-for-trading financial liabilities 230,652,182 251,451,420
Derivative financial liabilities 88,414,713 58,590,840
Notes payable 7,920,031,353 5,610,802,064
Accounts payable 29,432,486,756 29,402,493,015
Advances from customers 5,245,666 677,665
Contract liabilities 2,346,445,608 1,899,468,140
Financial assets sold under repurchase
agreements
Customer deposits and deposits from other
846,202,751 270,928,810
banks and financial institutions
Funds for brokering securities transaction
Funds for brokering securities
underwriting
Employee salaries payable 3,506,429,229 3,034,496,680
Taxes and levies payable 1,322,279,166 861,342,467
Other payables 21,820,572,980 22,171,403,238
Of which: Interests payable
Dividends payable 13,131,347 54,250,777
Service charges and commissions payable
Reinsurance accounts payable
Held-for-sale liabilities
Non-current liabilities due within one year 33,145,072,450 24,631,658,876
Other current liabilities 1,524,549,544 1,563,244,949
Total current liabilities 114,242,061,567 99,225,149,982
Non-current liabilities:
Insurance contract provisions
Long-term borrowings 124,141,297,002 117,662,208,623
Bonds payable 6,487,354,763 9,113,847,771
Of which: Preferred shares
Perpetual bonds
Lease liabilities 5,783,414,140 5,737,287,693
Long-term payables 2,187,797,655 2,739,444,094
Long-term employee compensation
23,369,510 29,645,007
payable
Estimated liabilities 384,235,897 117,394,992
Deferred income 2,263,408,073 1,540,647,642
Deferred income tax liabilities 1,652,554,875 1,427,487,042
Other non-current liabilities 16,775,944
Total non-current liabilities 142,940,207,859 138,367,962,864
Total liabilities 257,182,269,426 237,593,112,846
Owner's equity:
Share capital 18,779,080,767 18,779,080,767
Other equity instruments
Of which: Preferred shares
Perpetual bonds
Capital reserves 10,469,171,863 10,752,055,217
Less: Treasury share 919,321,508 1,094,943,423
Other comprehensive income -779,275,992 -945,797,878
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Third Quarter 2024 Report of TCL Technology Group Corporation
Specific reserves 15,953,615 11,342,949
Surplus reserves 3,874,005,579 3,874,005,579
General risk reserve 8,933,515 8,933,515
Retained earnings 21,566,310,022 21,537,190,360
Total equity attributable to the owners of the
53,014,857,861 52,921,867,086
parent company
Non-controlling interests 83,598,101,567 92,344,106,795
Total owner's equity 136,612,959,428 145,265,973,881
Total liabilities and owner's equity 393,795,228,854 382,859,086,727
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 for the period from the beginning of the year to the end of the Reporting
Period
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
I. Total revenue 123,131,768,609 133,165,997,183
Including: Operating revenue 123,028,497,947 133,109,034,685
Interest income 103,270,662 56,962,498
Earned premiums
Service charge and commission
income
II. Total costs 124,050,215,990 129,007,796,700
Of which: Operating cost 108,286,768,520 113,643,241,301
Interest expenditures 16,004,207 14,379,206
Service charge and commission
expenditures
Surrender value
Net claims payment
Appropriation of net insurance
liability reserve
Policy dividend expenditures
Reinsurance expenses
Taxes and levies 888,627,867 603,630,830
Sales expenses 1,749,388,377 1,831,309,694
Administrative expenses 3,121,692,041 3,044,021,757
R&D expenses 6,576,221,492 7,201,406,325
Financial expenses 3,411,513,486 2,669,807,587
Including: Interest expenses 3,734,284,335 3,731,262,986
Interest income 501,033,624 857,965,962
Plus: Other income 1,334,221,454 1,762,418,772
Return on investment (losses are
878,654,664 2,442,260,295
indicated by "-")
Including: Return on investment in
-119,650,822 1,205,559,646
joint ventures and associates
Income from derecognition of
financial assets measured at amortized costs
Exchange gains (losses are indicated 421,473 -57,583
18
Third Quarter 2024 Report of TCL Technology Group Corporation
by "-")
Gain on net exposure hedging (losses
are indicated by "-")
Gain on changes in fair value (losses
479,574,279 372,289,148
are indicated by "-")
Credit impairment losses (losses are
-15,204,947 -106,792,302
indicated by "-")
Asset impairment losses (losses are
-3,540,212,533 -2,432,074,536
indicated by "-")
Asset disposal income (losses are
40,910,222 -23,258,312
indicated by "-")
III. Operating profit (losses are indicated by
-1,740,082,769 6,172,985,965
"-")
Plus: Non-operating income 238,237,895 61,847,094
Less: Non-operating expenses 102,597,065 158,935,459
IV. Gross profit (gross loss is indicated by "-
-1,604,441,939 6,075,897,600
")
Less: Income tax expenses 224,564,284 507,453,577
V. Net profits (net losses are indicated by "-") -1,829,006,223 5,568,444,023
(I) Classification by business continuity
1. Net profits from continuing
-1,829,006,223 5,568,444,023
operations (net losses are indicated by "-")
2. Net profits from discontinued
operations (net losses are indicated by "-")
(II) Classification by ownership
1. Net profits attributable to
shareholders of the parent company (net 1,525,319,763 1,611,411,994
losses are indicated by "-")
2. Net profit attributable to non-
controlling interests (net losses are indicated -3,354,325,986 3,957,032,029
by "-")
VI. Other comprehensive income, net of tax 148,408,442 -350,450,809
Other comprehensive income attributable
to the owners of the parent company, net of 166,521,886 -283,099,420
tax
(I) Other comprehensive income that
128,945,901 -42,627,164
will not be reclassified to profit or loss
1. Changes arising from
remeasurement of defined benefit plans
2. Other comprehensive income that
cannot be subsequently reclassified into 131,124,694 5,512,131
profits and losses under the equity method
3. Changes in fair value of investments
-2,178,793 -48,139,295
in other equity instruments
4. Changes in fair value of the
enterprise's own credit risks
5. Others
(II) Other comprehensive income that
may subsequently reclassified into profit and 37,575,985 -240,472,256
losses
1. Other comprehensive income that
can be transferred to profits and losses under 26,476,380 29,601,657
the equity method
2. Changes in fair value of other debt
investments
3. Amount of financial assets
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Third Quarter 2024 Report of TCL Technology Group Corporation
reclassified into other comprehensive income
4. Provisions for credit impairment of
other debt investments
5. Reserves for cash flow hedging 28,637,483 -202,298,071
6. Conversion differences in foreign
-17,537,878 -67,775,842
currency financial statements
7. Others
Other net comprehensive income
-18,113,444 -67,351,389
attributable to minority interests, net of tax
VII. Total comprehensive income -1,680,597,781 5,217,993,214
(I) Total comprehensive income
attributable to the shareholders of the parent 1,691,841,649 1,328,312,574
company
(II) Total comprehensive income
-3,372,439,430 3,889,680,640
attributable to non-controlling interests
VIII. Earnings per share:
(I) Basic earnings per share 0.0821 0.0870
(II) Diluted earnings per share 0.0812 0.0858
Legal representative: Person in charge of financial affairs: Person-in-charge of the financial department:
Li Dongsheng Li Jian Jing Chunmei
3. Consolidated Statement of Cash Flows for the period from the beginning of the year to the end of the
Reporting Period
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
I. Net cash generated from operating
activities:
Proceeds from sale of commodities and
123,374,242,201 101,241,792,349
rendering of services
Net increase of deposits from customers,
574,758,778 -400,281,369
banks and other financial institutions
Net increase of borrowings from the
-287,595,760 -62,069,836
Central Bank
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
104,035,829 56,962,498
charges and commissions
Net increase of borrowed funds from banks
and other financial institutions
Net increase of repurchase business funds
Net cash received from brokering securities
transaction
Tax and levy rebates 4,189,699,038 6,897,140,163
Cash generated from other operating
3,505,370,060 6,549,758,540
activities
Sub-total of cash generated from operating
131,460,510,146 114,283,302,345
activities
Cash paid for commodities and services 88,059,421,971 77,969,681,520
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Third Quarter 2024 Report of TCL Technology Group Corporation
Net increase of loans and advances to
-282,990,363 -20,126,492
customers
Net increase of deposits with the Central
-89,725,774 -94,966,195
Bank, 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 9,177,134,623 8,675,722,473
Taxes and levies paid 3,746,232,645 3,042,877,731
Cash used in other operating activities 8,849,722,508 8,566,100,295
Sub-total of cash used in operating activities 109,459,795,610 98,139,289,332
Net cash generated from operating activities 22,000,714,536 16,144,013,013
II. Cash flow generated from investing
activities:
Proceeds from disinvestments 52,857,913,578 36,407,981,056
Proceeds from return on investments 2,162,788,974 1,443,449,707
Net proceeds from disposal of fixed assets,
317,694,322 157,900,475
intangible assets and other long-term assets
Net proceeds from disposal of subsidiaries
35,197,323
and other business units
Cash generated from other investing
480,351,646 1,675,476,985
activities
Sub-total of cash generated from investment
55,853,945,843 39,684,808,223
activities
Cash paid for the acquisition and
construction of fixed assets, intangible 18,673,744,678 22,058,677,309
assets and other long-term assets
Payments for investments 62,378,097,855 46,043,068,029
Net increase of pledged loans
Net payments for acquiring subsidiaries
395,597,639 342,527,176
and other business units
Cash used in other investing activities 959,825,953 679,513,856
Subtotal of cash used in investing activities 82,407,266,125 69,123,786,370
Net cash used in investing activities -26,553,320,282 -29,438,978,147
III. Net cash generated from financing
activities:
Capital contributions received 96,135,256 3,227,627,076
Including: Capital contributions by non-
96,135,256 3,227,627,076
controlling interests to subsidiaries
Cash received from raising borrowings 61,968,446,494 59,814,243,560
Cash generated from other financing
434,971,952 3,288,722,855
activities
Sub-total of cash generated from financing
62,499,553,702 66,330,593,491
activities
Cash paid for debt repayment 46,959,964,907 46,877,621,540
Cash paid for distribution of dividends and
6,531,212,376 5,260,345,180
profits or the repayment of interest
Of which: Dividends and profits
distributed by subsidiaries to minority 1,003,910,923 334,580,641
shareholders
Cash used in other financing activities 2,162,527,863 6,534,891,746
Subtotal of cash used in financing activities 55,653,705,146 58,672,858,466
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Third Quarter 2024 Report of TCL Technology Group Corporation
Net cash generated from financing activities 6,845,848,556 7,657,735,025
IV. Effect of exchange rate changes on cash
-26,384,744 72,098,972
and cash equivalents
V. Net increase in cash and cash equivalents 2,266,858,066 -5,565,131,137
Plus: Beginning balance of cash and cash
19,996,815,160 33,675,624,291
equivalents
VI. Ending balance of cash and cash
22,263,673,226 28,110,493,154
equivalents
Legal representative: Person in charge of financial affairs: Person-in-charge of the financial department:
Li Dongsheng Li Jian Jing Chunmei
(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 2024
□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
October 29, 2024
22
