Stock Code: 000100 Stock Abbr.: TCL TECH. Announcement No.: 2024-018
TCL科技集团股份有限公司
TCL Technology Group Corporation
First Quarter 2024 Report
April 28, 2024
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 ...... 11
Section V Other Significant Events ...... 13
Section VI Quarterly Financial Statements ...... 14
Section I Important Notices and Definitions
The Board of Directors (or the "Board"), the Supervisory Committee, directors, supervisors andsenior 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 andseverally 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 financialaffairs (Chief Financial Officer), and Ms. Jing Chunmei, the person-in-charge of the financialdepartment, hereby guarantee that the financial statements carried in this Report are factual, accurateand complete.
All the Company's directors attended the Board meeting for the review of this Report.
The future plans, development strategies or other forward-looking statements mentioned in thisReport shall NOT be considered as promises of the Company to investors. Therefore, investors arekindly 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 Chineseversion shall prevail.
Definitions
Term Refers toDefinitionCompany,
the Company, the Group Refers toTCL Technology Group CorporationThe "Reporting Period", "current period" Refers toThe period from January 1, 2024 to March 31, 2024.TCL CSOT Refers toTCL China Star Optoelectronics Technology Co., Ltd.TZE Refers to
TCL Zhonghuan Renewable Energy Technology Co., Ltd., a majority-owned subsidiary of the Company listed on the Shenzhen Stock Exchange(stock code: 002129.SZ)t9 Refers to
The generation 8.6 (or G8.6) new oxide production line at GuangzhouCSOTG12 Refers to
12-inch ultra-large DW-cut solar monocrystalline silicon square wafer,size: 44,096mm?, diagonal line: 295mm, side length: 210mm, with its size
80.5% larger than the conventional M2
RMB Refers toRenminbi
Section II Key Financial Information(I) Key accounting data and financial indicatorsIndicate whether there is any retrospectively adjusted or restated datum in the table below? Yes □ NoReason for retrospective adjustment or restatement
□Change of accounting policies □Correction of accounting errors □Business combination under common control
?Others
Q1 2024
Q1 2023 Change (%)Before adjustment After adjustmentAfter adjustmentRevenue (RMB) 39,908,458,08339,443,242,43939,443,242,4391.18%Net profit attributable to thecompany's shareholders (RMB)
239,970,389-548,999,154-548,999,154143.71%Net profits attributable to thecompany's shareholders afternon-recurring gains and losses(RMB)
70,716,493-729,931,586-729,931,586109.69%Net cash generated fromoperating activities (RMB)
6,596,505,9324,495,356,5384,495,356,53846.74%Basic earnings per share(RMB/share)
0.0129 -0.0326 -0.0297 143.43%Diluted earnings per share(RMB/share)
0.0128 -0.0322 -0.0292 143.84%Weighted average return onequity (%)
0.45%-1.09%-1.09%
Increase by 1.54 percentage
points YoY
March 31, 2024
December 31, 2023 Change (%)Before adjustment After adjustmentAfter adjustmentTotal assets (RMB) 391,746,725,368382,859,086,727382,859,086,7272.32%Owner's equity attributable tothe company's shareholders(RMB)
53,682,079,21052,921,867,08652,921,867,0861.44%Note 1: The Company converted its capital reserve into share capital in May 2023, at a rate of 1 share for every 10 shares to allshareholders. The Company recalculated the basic earnings per share and diluted earnings per share for the first quarter of 2023 inaccordance with accounting standards and other regulations.Note 2: According to the relevant provisions of the Explanatory Announcement on Information Disclosure by Companies OfferingSecurities to the Public No. 1 - Non-Recurring Profits and Losses (2023 Revision), any public subsidies that are closely related to theCompany's daily operations, comply with national policies, are granted based on determined standards, and have a continuous impacton the Company's profits or losses, should be included into recurring profits or losses. Public grants presented as non-recurring profitsor losses in the first quarter of 2023 comprise of the public grants related to assets amounting to RMB75.12 million, which should beclassified as recurring profits or losses in accordance with the relevant provisions of the 2023 Explanatory Announcement No. 1. Thechange did not have any material impact on the Company's financial position and operation results.
(II) Non-recurring profit and loss items and amounts? Applicable □ Not applicable
Unit: RMBItem
Amount in thereporting periodGains and losses on disposal of non-current assets (inclusive of impairment allowance write-offs)64,227,059Public subsidies charged to current profits and loss (except for public subsidies which are closely relatedto the Company's daily operations, comply with national policies, are granted based on determinedstandards, and have a continuous impact on the Company's profits or losses)
249,918,328Gains and losses on change in fair value of financial assets and financial liabilities held by the non-financialcompanies, other than those valid hedging activities related to the normal operating business, as well asgains and losses from the disposal of financial assets and financial liabilities
-1,977,888Reversal of provision for impairment of receivables that have been individually tested for impairment26,500,000Non-operating income and expenses other than the above61,038,599Less: Corporate income tax49,297,817Non-controlling interests (net of tax)181,154,385Total169,253,896Details 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 Disclosurefor 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 InformationDisclosure for Companies Offering Their Securities to the Public—Non-Recurring Gain/Loss that are defined as recurring profit andloss items.
(III) Changes of key accounting data and financial indicators and reasons therefor? Applicable □ Not applicable
Unit: RMBBalance Sheet items Ending balance Beginning balance
Increase / decreaseratio (%)
Reason for changeReceivables financing 1,943,020,838 954,409,558 103.6
Mainly due to an increaseof bank acceptance notesIncome Statement Item Current balance Prior balance
Increase / decreaseratio (%)
Reason for changeAsset impairment losses (lossesare indicated by "-")
-702,391,301 -338,223,994 107.7
Due to an increase infalling price of inventoryaccrual in line with themarketCash Flow Statement items Current balance Prior balance
Increase / decrease
ratio (%)
Reason for change
Net cash generated fromoperating activities
6,596,505,932 4,495,356,538 46.7
Mainly due to an increasein cash from sale ofcommodities andrendering of services
Section III Management Discussion and Analysis
Beginning this year, global geopolitical risks have increased, leading to an intensiverestructuring of industrial and supply chains. Developed economies worldwide have maintained tightmonetary policy, and the global economy faces increasing uncertainties. In response to thesechallenges, the Company has 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. During the Reporting Period, TCL TECH. achieved a revenue ofRMB39.908 billion, which is a year-on-year increase of 1.18%; a net profit of RMB240 millionattributable to the shareholders of listed companies, which is an increase of RMB789 million year-on-year; and a net operating cash flow of RMB6.597 billion.Driven by supply-side optimization, the display industry has returned to an orderly developmentstage with reasonable commercial returns, and the supply-demand relationship remains stable andhealthy. Despite the seasonal off-season in Q1 2024, the price of mainstream products grew steadily.The Company actively optimized its business strategies and improved its operation structure, whichresulted in a remarkable improvement in year-on-year performance. With the acceleration of theenergy transition, latent capacity was unleashed centrally from the investment peak period, leadingto a phased imbalance between supply and demand in the industry and a decline in industry chainprofitability. The Company's new energy photovoltaic business strengthened its operational resilienceto cope with challenges, but its performance declined year-on-year due to product price reduction.
Display business
During Q1 2024, the end-user demand for displays was still that of a traditional "off-season".However, driven by favorable supply-side fundamentals and an on-demand production strategy, theindustry's supply-demand dynamics and inventory levels remained healthy. Restocking demand afterthe Chinese New Year pushed up the prices of large-sized panels, while the prices of small- andmedium-sized panels remained relatively stable, with some products experiencing structured pricehikes.
By virtue of the gradual recovery of profitability in key products and the Company's edge in
operational excellence, the display business surged in profitability year-on-year. During theReporting Period, the display business achieved an operating revenue of RMB23.376 billion, with ayear-on-year increase of 54.58%, and a net profit of RMB539 million, with a year-on-year increaseof RMB3.337 billion.In the large-sized products segment, TCL CSOT, on the basis of on-demand production, waswell-poised to lead the upgrade of large-sized TV panels, impelling the healthy and sounddevelopment of the industry. During the Reporting Period, the Company's overall utilization rateremained relatively low. However, in March, restocking demand drove a significant rebound inutilization rates. The Company maintained its leadership position in the large-sized panels segmentand ranked within the top two globally in terms of its TV panel market share. In the medium-sizedproducts segment, the T9 production line ramped up as scheduled and continuously bolstered theCompany's market share in IT products. The Company remained No. 3 in the display market, amongwhich, e-sports displays ranked No. 1 in terms of market share globally. In the small-sized displaysegment, the Company's flexible OLED products maintained a high demand. During the ReportingPeriod, the Company ascended to No. 3 globally in terms of shipments of flexible OLED mobilephone panels, while also further optimizing its product and customer structure, which resulted incontinuous improvements in operating performance.Looking forward to the remainder of the year, global display terminal sales are expected toremain stable. The size growth trend of large-sized products will drive the robust growth of displayareas. At the same time, catalyzed by innovation in AI hardware and other factors, the display industryis expecting structural growth. The improving supply-side structure will push the industry to pivotback on reasonable commercial returns, and the display industry's cyclical fluctuation will graduallyweaken. As the global leader in large-sized display panels, TCL CSOT will continuously drive thehealthy and stable development of the industry, while enhancing both corporate profitability andvalue.
New energy photovoltaics and other silicon materials business
In Q1 2024, global demand for new PV installed capacity continued to grow rapidly, but thetrend of localized PV manufacturing and anti-globalization trade remains unchanged as countries
seek energy self-sufficiency and control. As domestic photovoltaic capacity is released across allsegments of industry chain, intensified competition further impacts product price reductions, puttingpressure on industry profitability. However, rapid iteration of new technologies, such as N-type, isfurther restructuring the industry's capacity, and laggard capacity will be ruled out in a faster sense.During the Reporting Period, TZE achieved a revenue of RMB9.933 billion, a year-on-year decreaseof 43.62%, and a net profit of negative RMB951 million, due to falling prices for major productsacross the industry chain.
In response to external environmental challenges, TZE has further improved its quality andefficiency through technological innovation, process improvement and management enhancement. Ithas promoted the optimization of operating indicators, e.g., utilization of silicon materials, furnacecosts and number of output wafers per kilogram, and cemented the Company's competitive advantage.The Company further consolidated its technological and market leadership in G12 large silicon wafersand N-type products. The proportion of shipments of N-type and large-sized (210 series) products
accounted for 88%, among which the external sales market share of N-type 210 exceeded 90%,maintaining its leading position. The Company is continuously promoting the transformation toIndustry 4.0, enabling factories for silicon wafers, batteries and components to achieve internationalleading quality in terms of digitization and intelligentization.
Looking to the future, with the continuous optimization of supply-side structure and the stablegrowth of demand area, the display industry is expected to improve its prosperity, and the operatingreturn of the Company's display business will further improve. The photovoltaic industry is currentlyat the bottom of the cycle, and downstream demand continues its rapid growth. The long-term positiveoutlook for the industry remains unchanged. The Company's new energy photovoltaic business willstrengthen its operational resilience, allowing it to smoothly navigate industry cycles with acompetitive edge. By upholding the spirit of "Venturing Midstream and Striving to Win", theCompany will firmly grasp the opportunities brought by transformations in the technologymanufacturing industry and global energy structure, and continue to implement the business strategiesof "improving operational quality and efficiency, enhancing strengths to shore up weaknesses,innovation-driven development as well as accelerating global expansion" in order to achievesustainable, high-quality development and take on a leading role in the global market.
Section IV Shareholder Information
(I) Table of the total number of ordinary shareholders and the number of preferredshareholders with resumed voting rights as well as the shareholdings of the top 10 shareholders
Unit: ShareTotal number of ordinary shareholders by the endof the reporting period
578,652
Total number of preferred shareholders with resumed votingrights by the end of the reporting period
Shareholdings of top 10 shareholders of ordinary shares(excluding the lending of shares under refinancing)Name of shareholder
Nature ofshareholder
Shareholdingpercentage (%)
Number ofshares held
Number ofrestrictedshares held
Shares in pledge, marked or frozenStatus NumberLi Dongsheng
Domesticindividual/Domesticgeneral legalentity
6.731,264,053,189672,868,840
Ningbo Jiutian LianchengEquity Investment Partnership(Limited Partnership)
Pledge 293,668,015Huizhou Investment HoldingCo., Ltd.
Public legalentity
4.35817,453,824Hong Kong Securities ClearingCompany Ltd.
Foreign legalentity
4.05761,222,897Wuhan Optics Valley IndustrialInvestment Co., Ltd.
Public legalentity
2.64495,390,330Pledge 246,780,000China Securities FinanceCorporation Limited
Domesticgeneral legalentity
2.19410,554,710Perseverance AssetManagement Partnership(Limited Partnership) - GaoyiXiaofeng No. 2 Zhixin Fund
Fund, wealthmanagementproduct, etc.
1.19223,736,600Industrial and CommercialBank of China - Huatai-Pinebridge CSI 300 ETF
Fund, wealthmanagementproduct, etc.
1.08202,917,730Bank of China Limited -Huatai-Pinebridge CSIPhotovoltaic Industry ETF
Fund, wealthmanagementproduct, etc.
1.03192,656,860CITIC Securities Co., Ltd.
FinancialInstitution
0.98184,127,136Shareholdings of top 10 non-restricted ordinary shareholdersName of shareholder
Number of non-restricted ordinary shares held at the
end of reporting period
Share type and quantityType QuanityHuizhou Investment Holding Co., Ltd. 817,453,824
RMB-denominatedordinary shares
817,453,824Hong Kong Securities Clearing Company Ltd. 761,222,897
RMB-denominatedordinary shares
761,222,897Li Dongsheng
591,184,349
RMB-denominatedordinary shares
591,184,349Ningbo Jiutian Liancheng Equity InvestmentPartnership (Limited Partnership)Wuhan Optics Valley Industrial Investment Co.,Ltd.
495,390,330
RMB-denominatedordinary shares
495,390,330China Securities Finance Corporation Limited 410,554,710
RMB-denominatedordinary shares
410,554,710Perseverance Asset Management Partnership(Limited Partnership) - Gaoyi Xiaofeng No. 2Zhixin Fund
223,736,600
RMB-denominatedordinary shares
223,736,600Industrial and Commercial Bank of China -Huatai-Pinebridge CSI 300 ETF
202,917,730
RMB-denominatedordinary shares
202,917,730Bank of China Limited - Huatai-Pinebridge CSIPhotovoltaic Industry ETF
192,656,860
RMB-denominatedordinary shares
192,656,860
CITIC Securities Co., Ltd. 184,127,136
RMB-denominatedordinary shares
184,127,136Note on the above shareholders' associations orconcerted actions
Among the top 10 shareholders, Mr. Li Dongsheng and Ningbo Jiutian Liancheng EquityInvestment Partnership (Limited Partnership) became persons acting in concert by signing theAgreement on Concerted Action. Mr. Li Dongsheng holds 897,158,453 shares and NingboJiutian Liancheng Equity Investment Partnership (Limited Partnership) holds 366,894,736shares, representing 1,264,053,189 shares in total and becoming the largest shareholder of theCompany.Explanation on the top 10 ordinary shareholdersparticipating in securities margin trading
At the end of the Reporting Period, Wuhan Optics Valley Industrial Investment Co., Ltd.,among the shareholders above, held certain shares in the Company through a credit securityaccount.5% or greater shareholders, top 10 shareholders and top 10 unrestricted shareholders participating in the lending of shares under therefinancing business?Applicable □ Not applicable
Unit: Share5% or greater shareholders, top 10 shareholders and top 10 unrestricted shareholders participating in the lending of shares under
the refinancing business
Name ofshareholder(full name)
Shares in the ordinaryaccount and credit account
at the beginning of the
period
Shares lent underrefinancing at thebeginning of the period
that have not been
returned
Shares in the ordinaryaccount and credit account
at the end of the period
Shares lent underrefinancing at the end ofthe period that have notbeen returnedTotalnumber
Proportion
to totalshare capital
Totalnumber
Proportion
to total
sharecapital
Totalnumber
Proportion
to totalsharecapital
Totalnumber
Proportion
to total
sharecapitalIndustrialandCommercialBank ofChina -Huatai-PinebridgeCSI 300ETF
140,037,730 0.75% 136,9000.001%202,917,7301.08% 0 0%
Bank ofChinaLimited -Huatai-PinebridgeCSIPhotovoltaicIndustryETF
204,079,760 1.09% 1,602,8000.01%192,656,8601.03% 418,800 0.002%
Change in the top 10 shareholders and top 10 unrestricted shareholders due to the lending of shares under the refinancing businesscompared with the previous period
□ Applicable ?Not Applicable
(II) Total number of preferred shareholders and shareholdings of the top 10 preferredshareholders
□ Applicable ?Not Applicab
Section V Other Significant Events
? Applicable □ Not applicable
1. Derivative investment for hedging purposes during the reporting period
Unit: RMB'0,000Type of contract
Beginning amount Ending amount
Gain/lossstatus intheReporting Period
Ending contractualamount as % of theCompany's ending net
assetContractual amount
Transaction limit
Contractual amount
Transaction limit
Contractual amount
Transaction limit
1. Forward forex
contracts
3,039,040 114,0953,440,748131,003
9,269
23.67% 0.90%
2. Interest rate swaps 40,686 12,231340,10010,2032.34% 0.07%
Total 3,446,726 126,3263,780,848141,2069,269
26.01% 0.97%
Accounting policies and specific accountingprinciples for hedging business during the ReportingPeriod and a description of whether there have beensignificant changes from those of the previousreporting period
No significant change.Description of actual profits and losses during theReporting Period
During the Reporting Period, profit from changes in the fair value of
hedged items amounted to RMB55.19 million; losses from the delivery of
due forward exchange contracts amounted to negative RMB7.31 million;
and profit from the valuation of outstanding forward exchange contracts
amounted to RMB44.81 million.Description of the hedging effect
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 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.Approval date of the Board of Directors and theGeneral Meeting for Derivative investment forhedging purposes during the Reporting Period
The proposal was approved by the 29th meeting of the 7th Session of the
Board of Directors held on March 30, 2023, and the 2022 Annual
General Meeting held on April 21, 2023.
2. Other Significant Events During the Reporting Period
Title of announcement Date of disclosure Website for disclosureAnnouncement on the Certain Quota Allocation Adjustment amongExpected Continuing Related-Party Transactions for 2023
January 27, 2024
http:/ www.cninfo.com.cnAnnouncement on Public Offering of Sci-Tech Innovation CorporateBonds (Digital Economy) (Phase 1) for Professional Investors in 2024
January 29, 2024
Section VI Quarterly Financial Statements
(I) Financial statements
1. Consolidated Balance Sheet
Prepared by: TCL Technology Group Corporation
Unit: RMBItem Ending balance
Balance at the beginning of the
periodCurrent assets:
Monetary assets24,944,029,733 21,924,270,872Settlement reservesFunds on loanHeld-for-trading financial assets24,227,149,499 23,184,116,975Derivative financial assets
110,218,202 108,007,603Notes receivable369,068,163 615,391,820Accounts receivable
23,886,721,056 22,003,651,259Receivables financing1,943,020,838 954,409,558Prepayments
3,376,980,570 2,946,288,443Premiums receivableReinsurance accounts receivableReinsurance contract provisions receivableOther receivables
4,704,724,701 5,706,855,391Of which: Interests receivable- -Dividends receivable
1,381,297,611 1,381,489,936Financial assets purchased under sale-back agreement- -Inventories
19,304,750,766 18,481,754,865Including: Data resourcesContract assets
350,323,417 343,907,118Held-for-sale assets- 162,415,745Non-current assets due within one year
593,040,352 580,694,984Other current assets7,330,962,553 5,286,533,753Total current assets
111,140,989,850 102,298,298,386Non-current assets:
Loans and advances to customers
- -Debt investments113,675,101 122,348,768Other debt investments
- -Long-term receivables713,436,215 720,281,051Long-term equity investments
25,385,336,134 25,431,271,193Investments in other equity instruments383,375,780 386,648,418Other non-current financial assets
3,465,290,957 2,971,566,228Investment property893,614,356 911,679,154Fixed assets
172,335,934,669 176,422,620,794Construction in progress19,433,344,116 17,000,052,457Productive biological assetsOil and gas assetsRight-of-use assets
6,264,937,218 6,386,446,373Intangible assets18,387,779,542 18,419,544,291Including: Data resources
Development costs
2,506,826,415 2,541,492,504Including: Data resourcesGoodwill
10,527,004,047 10,516,741,724Long-term deferred expenses3,294,567,956 3,402,689,489Deferred income tax assets
2,636,794,377 2,246,221,719Other non-current assets14,263,818,635 13,081,184,178Total non-current assets280,605,735,518 280,560,788,341Total assets391,746,725,368 382,859,086,727Current liabilities:
Short-term borrowings10,685,553,579 8,473,582,304Borrowings from the Central Bank
1,193,509,342 995,009,514Borrowed funds- -Held-for-trading financial liabilities
328,127,731 251,451,420Derivative financial liabilities43,275,218 58,590,840Notes payable
6,755,509,159 5,610,802,064Accounts payable29,328,388,152 29,402,493,015Advances from customers
677,665 677,665Contract liabilities1,882,128,359 1,899,468,140Financial assets sold under repurchase agreements
- -Customer deposits and deposits from other banks andfinancial institutions
475,445,310 270,928,810Funds for brokering securities transactionFunds for brokering securities underwritingEmployee salaries payable2,988,086,266 3,034,496,680Taxes and levies payable1,041,097,792 861,342,467Other payables21,983,250,582 22,171,403,238Of which: Interests payable- -Dividends payable54,250,777 54,250,777Service charges and commissions payableReinsurance accounts payableHeld-for-sale liabilities- -Non-current liabilities due within one year25,789,723,337 24,631,658,876Other current liabilities1,596,875,014 1,563,244,949Total current liabilities
104,091,647,506 99,225,149,982Non-current liabilities:
Insurance contract provisionsLong-term borrowings121,600,706,725 117,662,208,623Bonds payable8,618,969,988 9,113,847,771Of which: Preferred sharesPerpetual bondsLease liabilities5,734,875,694 5,737,287,693Long-term payables2,640,183,515 2,739,444,094Long-term employee compensation payable29,570,539 29,645,007Estimated liabilities121,583,401 117,394,992Deferred income2,117,319,016 1,540,647,642Deferred income tax liabilities1,446,582,227 1,427,487,042Other non-current liabilitiesTotal non-current liabilities
142,309,791,105 138,367,962,864Total liabilities
246,401,438,611 237,593,112,846Owner's equity (or shareholders' equity)Share capital18,779,080,767 18,779,080,767
Other equity instruments
- -Of which: Preferred sharesPerpetual bondsCapital reserves10,835,973,616 10,752,055,217Less: Treasury share
718,236,786 1,094,943,423Other comprehensive income-888,982,900 -945,797,878Specific reserves
14,144,671 11,342,949Surplus reserves3,874,005,579 3,874,005,579General risk reserve
8,933,515 8,933,515Retained earnings21,777,160,748 21,537,190,360Total equity attributable to the owners of the parentcompany
53,682,079,210 52,921,867,086Non-controlling interests91,663,207,547 92,344,106,795Total owner's equity
145,345,286,757 145,265,973,881Total liabilities and owner's equity
391,746,725,368 382,859,086,727Legal representative:
Li Dongsheng
Person-in-charge of Financial affairs:
Li Jian
Person-in-charge of the Financial Department:
Jing Chunmei
2. Consolidated Income Statement
Unit: RMBItem Current balance Prior balanceI. Total revenue39,946,382,780 39,465,731,391Including: Operating revenue39,908,458,083 39,443,242,439Interest income37,924,697 22,488,952Earned premiums
Service charge and commission income-II. Total costs40,367,085,554 40,491,139,667Of which: Operating cost35,307,482,997 35,357,669,407Interest expenditures5,895,581 5,205,619Service charge and commission expenditures-Surrender value
Net claims payment
Net insurance contract provisions accrued
Policy dividend expenditures
Reinsurance expenses
Taxes and levies198,854,235 171,412,685Sales expenses562,546,199 520,726,236Administrative expenses984,278,694 937,229,625R&D expenses2,207,454,463 2,593,998,005Financial expenses1,100,573,385 904,898,090Including: Interest expenses1,336,824,794 1,145,570,837
Interest income208,100,403 213,027,337Plus: Other income332,434,076 531,668,577Return on investment (losses are indicated by "-")111,069,433 765,964,042Including: Share of profit or loss of joint ventures and associates -20,350,516 633,769,440
Income from derecognition of financial assets measuredat amortised costs
Exchange gains (losses are indicated by "-")
7,789 -2,828,841
Gain on net exposure hedging (losses are indicated by "-")- -Gain on changes in fair value (losses are indicated by "-")
173,603,977 151,543,005
Credit impairment losses (losses are indicated by "-")-35,961,488 -23,968,551
Asset impairment losses (losses are indicated by "-")
-702,391,301 -338,223,994Income from asset disposal (losses are indicated by "-")76,453,230 -15,124,996III. Operating profit (losses are indicated by "-")
-465,487,058 43,620,966Add: Non-operating income23,528,519 10,152,922Less: Non-operating expenses
24,312,896 3,266,785IV. Gross profit (gross loss is indicated by "-")-466,271,435 50,507,103Less: Income tax expenses
-132,665,572 -60,849,759V. Net profits (net losses are indicated by "-")
-333,605,863 111,356,862
(I) Classification by business continuity
1. Net profits from continuing operations (net losses are indicated
by "-")
-333,605,863 111,356,862
2. Net profits from discontinued operations (net losses are indicated
by "-")
- -
(II) Classification by ownership
1. Net profits attributable to the shareholders of the parent company
239,970,389 -548,999,154
2. Net profit attributable to non-controlling interests
-573,576,252 660,356,016VI. Other comprehensive income, net of tax60,681,004 25,847,967
Other comprehensive income attributable to the owners of the parentcompany, net of tax
50,576,585 48,006,773(I) Other comprehensive income that will not be reclassified to profit or
loss
-3,386,503 -19,294,731
1. Changes arising from remeasurement of defined benefit
plans
2. Other comprehensive income that cannot be subsequently
reclassified into profits and losses under the equity method
- 682,618
3. Changes in fair value of investments in other equity
instruments
-3,386,503 -19,977,349
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 losses
53,963,088 67,301,504
1. Other comprehensive income that can be transferred to
profits and losses under the equity method
14,828 -670,638
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
7,722,180 32,625,420
6. Conversion differences in foreign currency financial
statements
46,226,080 35,346,722
7. Others
-
Other net comprehensive income attributable to minority interests, netof tax
10,104,419 -22,158,806VII. Total comprehensive income-272,924,859 137,204,829Total comprehensive income attributable to the shareholders of the
parent company
290,546,973 -500,992,380Total comprehensive income attributable to non-controlling interests
-563,471,832 638,197,209VIII. Earnings per share:
(I) Basic earnings per share
0.0129 -0.0297
(II) Diluted earnings per share
0.0128 -0.0292
Legal representative:
Li Dongsheng
Person-in-charge of Financial affairs:
Li Jian
Person-in-charge of the Financial Department:
Jing Chunmei
3. Consolidated Cash Flow Statement
Unit: RMB
Item Current balance Prior balanceI. Net cash generated from operating activities:
Proceeds from sale of commodities and renderingof services
34,317,092,852 28,874,162,646Net increase of deposits from customers, banks andother financial institutions
204,352,893 -414,994,865Net increase of borrowings from the Central Bank 197,084,045 134,144,024Net increase of borrowings from other financialinstitutions
- 500,112,500Cash received from collecting premiums for
original insurance contractsNet cash received for reinsurance businessNet increase of deposits and investments ofpolicyholders Cash received from interest, service charges and
commissions
32,922,547 22,488,952Net increase of borrowed funds from banks and
other financial institutions
- -Net increase of repurchase business fundsNet cash received from brokering securities
transactionTax and levy rebates 1,232,745,372 1,661,519,549Cash generated from other operating activities 2,995,096,129 3,130,400,647Sub-total of cash generated from operating
activities
38,979,293,838 33,907,833,453Payments for commodities and services 25,276,065,192 23,587,210,982Net increase of loans and advances to customers 95,339,843 -558,602,998Net increase of deposits with the Central Bank,
banks and other financial institutions
-102,445,135 105,682,459Cash paid for claims for original insurance
contracts
Net increase of funds on loanCash paid for interest, service charges and
commissions
- -Cash paid for policy dividendsCash paid to and for employees 3,385,466,209 2,733,093,133Taxes and levies paid 1,142,639,741 915,275,257Cash used in other operating activities 2,585,722,056 2,629,818,082 Sub-total of cash used in operating activities
32,382,787,906 29,412,476,915 Net cash generated from operating activities
6,596,505,932 4,495,356,538II. Cash flow generated from investing activities:
Proceeds from disinvestments 16,290,600,367 15,215,716,206Proceeds from return on investments 575,956,542 380,580,542Net proceeds from disposal of fixed assets,intangible assets and other long-term assets
253,835,051 38,716,274Net proceeds from disposal of subsidiaries and
other business units
- -Cash generated from other investing activities 23,533,065 1,451,281,370Sub-total of cash generated from investmentactivities
17,143,925,025 17,086,294,392Payments for the acquisition and construction offixed assets, intangible assets and other long-termassets
6,604,971,676 8,748,893,383Payments for investments 19,201,612,912 13,350,111,306Net increase of pledged loans - -Net payments for acquiring subsidiaries and otherbusiness units
15,805,873 -Cash used in other investing activities 286,841,021 187,762,364Subtotal of cash used in investing activities 26,109,231,482 22,286,767,053Net cash used in investing activities -8,965,306,457 -5,200,472,661 III. Net cash generated from financing activities:
Capital contributions received 2,000,000 46,449,000Including: Capital contributions by non-controlling
interests to subsidiaries
2,000,000 46,449,000Borrowings raised 19,205,366,600 27,287,574,742
Cash generated from other financing activities 994,839,843 36,193,437Sub-total of cash generated from financingactivities
20,202,206,443 27,370,217,179Cash paid for debt repayment 12,362,132,985 18,392,118,214Cash paid for distribution of dividends and profits
or the repayment of interest
1,462,312,501 1,429,360,583Of which: Dividends and profits distributed bysubsidiaries to minority shareholders
13,294,747 16,524,493Cash used in other financing activities 652,112,281 4,287,733,637Subtotal of cash used in financing activities 14,476,557,767 24,109,212,434Net cash generated from financing activities 5,725,648,676 3,261,004,745IV. Effect of exchange rate changes on cash andcash equivalents
52,422,141 -124,222,607V. Net increase in cash and cash equivalents
3,409,270,292 2,431,666,015Plus: Beginning balance of cash and cash
equivalents
19,996,815,160 33,675,624,291VI. Ending balance of cash and cash equivalents23,406,085,452 36,107,290,306
Legal representative:
Li Dongsheng
Person-in-charge of Financial affairs:
Li Jian
Person-in-charge of the Financial Department:
Jing Chunmei(II) Adjustments to financial statement items at the beginning of the year of the firstimplementation of the new accounting standards which have been implemented since 2024
□ Applicable ?Not Applicable
(III) Auditor's Report
Whether the First Quarter Report has been audited or not?
□Yes ?No
The Company's First Quarter Report has not yet been audited.
TCL Technology Group CorporationBoard of Directors
April 28, 2024