Securities Code: 000100 Securities Abbreviation: TCL TECH. Announcement No.: 2021-115
TCL科技集团股份有限公司
TCL Technology Group Corporation
Third Quarter 2021 Report
October 27, 2021
Content
Section I Important Notice ...... 3
Section II Key Financial Information ...... 4
Section III Management Discussion and Analysis ...... 8
Section IV Shareholder Information ...... 17
Section V Other Important Matters ...... 19
Section VI Quarterly Financial Statements ...... 20
Section I Important Notice
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 true, accurate and complete, and shall bejointly and severally liable for any misrepresentations, misleading statements or material omissionstherein.The Company’s legal representative, person in charge of accounting (Chief Financial Officer) andhead of the accounting department hereby certify that the financial information set out in thequarterly report is true, accurate and complete.All directors have attended the Board meeting for the review of this report.This report has not been audited. This report has been prepared in both Chinese and English. Shouldthere be any discrepancies or misunderstandings between the two versions, the Chinese versionshall prevail.
Section II Key Financial InformationI. Main accounting data and financial indicatorsDoes the Company need to retroactively adjust or restate the accounting data of previous years?
□ Yes √ No
July to September 2021 | Change (%) | January to September 2021 | Change (%) | |
Revenue (RMB) | 46,629,888,432 | 140.65% | 120,928,535,190 | 148.26% |
Net profits attributable to the company’s shareholders (RMB) | 2,318,085,363 | 183.69% | 9,101,970,170 | 349.44% |
Net profits attributable to the company’s shareholders before non-recurring gains and losses (RMB) | 3,060,177,204 | 351.23% | 8,557,995,151 | 895.06% |
Net cash generated from operating activities (RMB) | —— | —— | 23,959,709,061 | 101.83% |
Basic earnings per share (RMB / share) | 0.1730 | 173.73% | 0.6756 | 332.25% |
Diluted earnings per share (RMB / share) | 0.1652 | 173.51% | 0.6487 | 333.33% |
Weighted average return on equity (%) | 6.20% | 3.54% | 25.16% | An increase of 18.42 percentage points |
30 September 2021 | 31 December 2020 | Change (%) | ||
Total assets (RMB) | 305,386,375,811 | 257,908,278,887 | 18.41% | |
Owner’s equity attributable to the company’s shareholders (RMB) | 39,483,249,414 | 34,107,795,454 | 15.76% |
The total share capital at the end of the last trading session before the disclosure of this Report:
Total share capital at the end of the last trading session before the disclosure date (share) | 14,030,642,421 |
Fully diluted earnings per share based on the latest total share capital above:
Fully diluted earnings per share calculated based on the latest total share capital above (RMB / share) | 0.6487 |
II. Non-recurring profit and loss items and amount
√ Applicable □ Not applicable
Unit: RMB
Item | Amount for the current reporting period | Amount from the beginning of the year to the end of the reporting period |
Gains and losses on disposal of non-current assets (inclusive of impairment allowance write-offs) | -785,538,181.00 | -46,198,134.00 |
Government subsidies charged to current profits and loss (except for government subsidies closely related to the Company’s normal business which comply with national policies and regulations and are enjoyed on an ongoing basis according to certain standard quotas or quantities) | 250,706,085.00 | 609,898,567.00 |
Gain equal to the amount by which investment costs for the Company to obtain subsidiaries, associates and joint ventures are lower than the Company’s enjoyable fair value of identifiable net assets of investees when making investments | - | 40,299,579.00 |
The profits and losses generated from changes in fair value arising from holding marketable financial assets and marketable financial liabilities, as well as the investment-related income from the disposal of marketable financial assets, marketable financial liabilities and available-for-sale financial assets, except for the effective hedging business related to the Company’s normal business operation. | 7,578,933.00 | 217,852,030.00 |
Other gains and losses that meet the definition of non-recurring gain/loss | 20,182,634.00 | 264,752,193.00 |
Less: Corporate income tax | 52,430,322.00 | 135,316,019.00 |
Non-controlling interests (net of tax) | 182,590,990.00 | 407,313,197.00 |
Total | -742,091,841.00 | 543,975,019.00 |
Details of other profit and loss items that meet the definition of non-recurring profits and losses:
□ Applicable √ Not applicable
The Company has no other profit and loss items that meet the definition of non-recurring profits and losses.Note on non-recurring profit and loss items - 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 on InformationDisclosure of Companies Offering Securities to the Public No. 1 - Non-recurring Profits and Losses that are defined as recurringprofit and loss items.
III. Changes of main accounting data and financial indicators and reasons therefor
√ Applicable □ Not applicable
Unit: RMB
Balance Sheet items | Ending balance | Beginning balance | Increase / decrease ratio (%) | Reason for change |
Notes receivable | 3,379,119,189 | 595,685,338 | 467.3 | Mainly due to the expansion of operating revenue scale |
Prepayments | 2,951,934,848 | 1,355,653,454 | 117.7 | Mainly due to the increase of prepayment |
Accounts receivable | 21,099,262,446 | 12,557,614,486 | 68.0 | Mainly due to the expansion of operating revenue scale |
Other receivables | 3,885,453,661 | 2,793,640,153 | 39.1 | Mainly due to the increase of equity transfer funds |
Inventories | 14,458,361,006 | 8,834,957,692 | 63.6 | Mainly due to the expansion of operating revenue scale |
Investment property | 701,618,665 | 1,664,201,130 | -57.8 | Mainly due to the merger of Moka |
Development costs | 2,909,088,335 | 2,103,994,558 | 38.3 | Mainly due to the increase of R&D investment |
Goodwill | 9,125,488,681 | 6,943,264,794 | 31.4 | Mainly due to the merger of Moka and CSOT Suzhou |
Long-term deferred expenses | 1,627,220,359 | 2,536,670,015 | -35.9 | Mainly due to the impact of the new Leasing Standards |
Deferred income tax assets | 2,117,664,125 | 1,578,087,991 | 34.2 | Mainly due to the merger of CSOT Suzhou |
Other non-current assets | 6,566,151,346 | 12,532,852,630 | -47.6 | Mainly due to the decrease of prepayments for equipment |
Short-term borrowings | 7,615,688,682 | 12,263,713,979 | -37.9 | Mainly due to repayment for borrowings |
Borrowings from the Central Bank | 1,289,155,102 | 469,834,291 | 174.4 | Mainly due to the increase of borrowings from the Central Bank by the Finance Company |
Held-for-trading financial liabilities | 1,029,572,413 | 527,901,041 | 95.0 | Mainly due to the increase of financial products |
Taxes and levies payable | 1,695,966,861 | 670,058,792 | 153.1 | Mainly due to the increase of taxes and surcharges caused by the increase of performance |
Long-term payables | 497,341,480 | 1,280,299,665 | -61.2 | Mainly due to the impact of the new Leasing Standards |
Income Statement | January to | January to | Increase / | Reason for change |
items | September 2021 | September 2020 | decrease ratio (%) | |
Revenue | 120,928,535,190 | 48,709,987,251 | 148.3 | Mainly due to the expansion of sales scale and the merger of Zhonghuan Electronic and Moka |
Cost of sales | 95,426,765,891 | 43,507,752,953 | 119.3 | Mainly due to the expansion of operating revenue scale and the merger of Zhonghuan Electronic and Moka |
Sales expense | 1,552,806,398 | 548,204,916 | 183.3 | Mainly due to the expansion of operating revenue scale and the merger of Zhonghuan Electronic |
Administrative expense | 3,008,738,778 | 1,215,567,756 | 147.5 | Mainly due to the expansion of operating revenue scale and the merger of Zhonghuan Electronic |
R&D expense | 5,274,324,791 | 2,800,775,204 | 88.3 | Mainly due to the increase of R&D investment and the merger of Zhonghuan Electronic |
Finance expenses | 2,827,514,469 | 1,453,054,866 | 94.6 | Mainly due to the increase of financing scale and the merger of Zhonghuan Electronic |
Return on investment | 2,884,044,180 | 1,951,687,393 | 47.8 | Mainly due to the merger of Zhonghuan Electronic |
Income tax expense | 2,102,388,345 | 338,749,095 | 520.6 | Mainly due to the increase of operating profits and the merger of Zhonghuan Electronic |
Net profit attributable to non-controlling interests | 4,061,307,528 | 36,529,164 | 11,018.0 | Mainly due to the increase of net profits and the merger of Zhonghuan Electronic |
Cash Flow Statement items | January to September 2021 | January to September 2020 | Increase / decrease ratio (%) | Reason for change |
Net cash generated from in operating activities | 23,959,709,061 | 11,871,070,129 | 101.8 | Mainly due to the expansion of operating revenue scale, the improvement of operating profits and the merger of Zhonghuan Electronic |
Net cash generated from financing activities | 8,683,436,043 | 23,485,740,179 | -63.0 | Mainly due to the increase of repayment for borrowings during the current reporting period |
Section III Management Discussion and Analysis
I. OverviewThe COVID-19 epidemic and reverse globalization is reshaping the global political and economiclandscape, and global industrial chains are becoming increasingly unstable, posing severechallenges for China's manufacturing enterprises. China has proposed the building of a newdevelopment pattern centered around domestic circulation while also encouraging the mutualpromotion of dual domestic-international circulation, which, with the strategic support fromscientific and technological self-reliance and self-improvement, will promote China's science andtechnology industries to break through the development bottleneck and establish a commandingheight of scientific and technological innovation. Facing the challenges and opportunities head on,the Company has focused on the development of two major, core technology industries, i.e.,semiconductor displays, and semiconductor photovoltaics and semiconductor materials, adhering tothe business strategy of “Improving Business Quality and Efficiency, Strengthening Advantages andMaking up for Disadvantages, Accelerating Global Layout, and Innovation-driven Development”,establishing a relative corporate competitive advantage, and continuing to press on towards globalleadership.In the first three quarters, the Company achieved operating revenue of RMB 120.93 billion, ayear-on-year increase of 148.3%; achieved net profit of RMB 13.16 billion, a year-on-year increaseof 538.5%; achieved net profit attributable to the shareholders of listed companies of RMB 9.1billion, a year-on-year increase of 349.4%; exceeded the budget in an overall manner with respect tosemiconductor displays business, and semiconductor photovoltaics and semiconductor materialsbusiness, achieving a record-high in performance. The prosperity of the semiconductor displayindustry was higher than that of the same period in the previous year. The Company's mainproduction lines maintained full sales and produced at full production capacity, factory t7 rampedup as scheduled, factory t10 was integrated smoothly after consolidation in Q2, and the Companycontinued to promote the strategy of business diversification and high-end product structure, and ledthe industry in efficiency and benefits. The semiconductor display industry achieved operatingrevenue of RMB 66.56 billion, a year-on-year increase of 106% and net profit of RMB 9.74 billion,a year-on-year increase of 1620%. The Company's advantageous production capacity of
semiconductor photovoltaics’ 210 mm silicon wafers has accelerated, and a quality supply chainsystem has ensured the substantial growth of production and sales scale and profit; thesemiconductor materials business's 8-12 inch large silicon wafer project is progressing smoothly,and the product and customer structures are constantly improving; the Industry 4.0 production modehas further improved per-capita labor productivity, product quality and consistency, and has reducedmaterial consumption and operating costs, and significantly enhanced industry competitiveness.Zhonghuan Semiconductor achieved operating revenue of RMB 29.09 billion, a year-on-yearincrease of 117%, and net profit of RMB 3.28 billion, a year-on-year increase of 190%. Due to theone-time financial impact from the disposal of Fantasia Properties equity, the performance of theCompany's investment business segment in Q3 decreased significantly year-on-year, while otherbusinesses in the industrial finance and investment business segment operated well.The Company has adopted scientific and technological innovation as the core driving force forcorporate development. In the first three quarters, the Company invested RMB 6.5 billion inresearch and development, a year-on-year increase of 51.1%, accounting for 5.4% of the operatingrevenue, whereby the Company focused on the development of new display technologies such asMini LED, Micro LED, printed OLED and QLED, the improvement of the leading photovoltaicstechnology platform combining G12 large silicon wafers and shingled PV 3.0, the processimprovement of 8-inch and 12-inch semiconductor materials, as well the advanced research andcollaboration of the upstream core nodes in industrial chains and the establishment of an industrialecological alliance. As of the end of September 2021, the number of Company’s PCT patentapplications reached 13,517, and the number of patent applications in the field of quantum dotelectroluminescence technology and materials has reached 1,778, ranking #2 globally.The global economy is complex and ever-changing under the normalization of the COVID-19epidemic and international economic and trade frictions. We believe that accelerating thedevelopment of the high-end manufacturing industry is the only way for China to sustain economicdevelopment and overcome the middle-income trap; actively participating in global competition isalso an inevitable option for Chinese manufacturing enterprises to become bigger and stronger.Rooted in the science and technology industries, the Company has a global layout and is movingtowards leadership, relying on lean management, technological innovation and industrial ecology asthe foundation for competitiveness. In the field of semiconductor displays, the Company has
established comprehensive competitive advantages with respect to scale, efficiency and technology,and will further expand its layout in the global display industry and strengthen the overseaslocalized supply chain system in the future; In the semiconductor photovoltaics field, ZhonghuanSemiconductor, relying on the application of the Industry 4.0 production mode in various operationprocesses and scenarios as well as the improvement of overseas industrial layout and supply chainsystems, has gradually completed the transformation from product output to industrial competenceoutput; With regard to the semiconductor materials business, the Company will firmly adhere to theestablished strategies, actively enhance its core competitiveness, build a great brand reputation, andundertake the mission and responsibility for localized independent research and development of thesemiconductor industry.As a pioneer in the globalization of China's manufacturing industry, TCL has been moving forwardfor the last 40 years, actively facing the challenges, insisting on originality, making unremittingefforts, and catching up and surpassing time and time again. Looking forward to the future, TCLTechnology will seize the golden period of global economic restructuring and the development ofChina's manufacturing industry, change from being a follower to a leader, and become a globalleader with stronger development momentum.II. Main business conditionsThe Company's main business structure consists of semiconductor displays, semiconductorphotovoltaics and semiconductor materials, industrial finance and investment platforms and otherbusinesses. The Company will continue to optimize its business structure, and further focus on itsmain businesses, to achieve the strategic goal of global leadership in its two core industries.
(I)Semiconductor display businessIn the first three quarters, the prosperity of the semiconductor display industry was higher compared
TCL TechSemi-conductordisplay
Semi-conductor display | Semi-conductor photovoltaic & Semi-conductor materials |
Industrial finance &
investmentOther
OtherTCL CSOT
TCL CSOT | China Ray |
Zhonghuan Photovoltaic | Zhonghuan Advanced | TCL Financial | TCL Capital |
Highly | TPC |
JuhuaMokaTechnology
Moka Technology | TCL Microchip |
to the same period in the last year; in the first half of the year, the supply-demand relationship andthe shortage of upstream materials drove a continual increase in the prices of main products; in Q3,the price of the panel fell due to the impact of maritime logistics and the weakening of demand insome regions. TCL CSOT's production capacity continued to grow, which accelerated theoptimization of product structures, and improved its profitability; it achieved a sales area of 28.477million square meters in the first three quarters, a year-on-year increase of 31.3%; with regard to thesemiconductor display business, it achieved an operating revenue of RMB 66.56 billion, ayear-on-year increase of 106%, and achieved a net profit of RMB 9.74 billion, a year-on-yearincrease of 1620%, including net profit of RMB 3.13 billion achieved in Q3, a year-on-yearincrease of 347%.Operating composition of the semiconductor display business in the first three quarters:
Item | Shipment area | Shipment volume | Revenue | Net profit | ||||
10,000 square meters | Year-on-year % | 10,000 pieces / 10,000 sets | Year-on-year % | RMB 100 million | Year-on-year % | RMB 100 million | Year-on-year % | |
Large-sized products | 2,721.8 | 31.4% | 4,436.0 | 28.6% | 441.4 | Increased by 117% | 109.7 | Increased by 810% |
Medium-to-small sized products | 125.8 | 29.2% | 7,370.1 | 5.8% | 169.7 | Increased by 41% | -7.8 | Decreased by RMB 520 million |
Moka Technology (note) | - | - | 520.1 | N/A | 85.5 | N/A | 2.4 | N/A |
Other and offsets | - | - | - | - | -31.1 | N/A | -6.8 | N/A |
Total | - | - | - | - | 665.6 | Increased by 106% | 97.4 | Increased by 1619% |
Note: Moka Technology has been consolidated since Q2 2021, and the year-on-year data does not include Moka Technologyoperational data for the first three quarters of 2020.
In the large-sized product field, TCL CSOT continued to expand its scale advantage, promotehigh-end strategy, and continuously optimize production lines and product structure,
maintaining industry-leading efficiency and benefits advantages.Factories t1, t2 and t6 maintained full sales and produced at full capacity, factory t7 ramped up asscheduled; t10 (formerly Samsung Suzhou LCD factory) has been consolidated since the Q2 and theacquisition of the remaining 30% minority equity was completed at the end of September, thusbecoming a wholly-owned subsidiary of TCL CSOT. The Company's leading position in large-sizepanels has been further reinforced, ranking #2 globally in terms of market share of TV panels,ranking #1 globally in terms of market shares of 55-inch products, and #2 globally in terms ofmarket shares of 65-inch and 75-inch products; the high-end strategy has achieved remarkableresults, with the shipment area of products of 65 inches and above accounting for nearly 50% of thetotal shipment area, and the Company ranks #1 globally in terms of market shares of 8K and 120HZ high-end TV panels; the Company has accelerated the adjustment of its product structure, andbecome the core supplier for the leading customers in the industry in terms of commercial displaymarkets such as interactive whiteboards, digital signage and splicing screens, among which themarket share of interactive whiteboards has increased to #1 globally.Affected by the weakening global economy and market demand, the prices of large-sized productsshowed an inflection point in August, the prices of TV display screens declined rapidly, and theprices of other products also showed a declining trend; the Company will hedge such risks byimproving its product quality and operating efficiency.In the field of small-sized product businesses, TCL CSOT has accelerated the release ofproduction capacity and the increase of yield rate, so as to leverage continuous technologicalinnovation to improve the product experience, and optimize its customer portfolio.The shipment volume of LTPS mobile phone panels of the t3 production line remained fourth placein the world, the proportion of non-mobile phone products has increased to 30%, the product andcustomer structures continue to be optimized, and the profitability has been improved. The t4flexible OLED production line, which has completed the construction of Phase II and Phase III, iscommitted to forming differentiated competitiveness such as flexible folding and under-screencamera placement; however, due to the impact of preliminary R&D investment and fixed costsincurred during the ramp-up of the production line, t4's losses have increased month-on-month. TheCompany will focus on improving its technical capacity, meeting the needs of strategic customers,and gradually improving its operating efficiency.
TCL CSOT has accelerated the promotion of its medium-sized product business strategy,focusing on the fast-growing high-end market, actively introducing leading customers of theindustry, and establishing a new driving force for businesses growth.The Company has seized the opportunities for rapid growth in the high-end market of medium-sizedproducts and given full play to its technical and customer advantages through the capacityadjustment of existing production lines, leading to a rapidly increasing market share. The Companyranks the #2 globally in terms of market shares of e-sports displays, #2 globally in terms ofshipment volume of LTPS notebook panels, and #1 globally in terms of shipment volume of LTPStablet PC panels; the shipment volume of vehicle-mounted LTPS panels has increased rapidly byintroducing a number of Chinese and foreign leading customers; the Company has achievedcooperation with brand customers with respect to display and laptop products equipped with MiniLED backlighting, and expanded VR / AR new display products. The Company has accelerated theinvestment and construction of the G8.6 oxide semiconductor-based t9 project, which is expected tobe put into operation in 2023.We believe that the total demand area of all regions in the world will maintain steady annualizedgrowth, the pattern of industrial competition will be optimized, and the weakening trend of theindustrial cycle volatility will remain unchanged. The Company will maintain industry-leadingefficiency and profitability advantages and accelerate its upgrade from being a global leaderof the large-sized display industry to being a global leader of the full-sized display field,centered on "optimizing production line structure and product structure, improving customerportfolio and perfecting industrial ecology".(II) Semiconductor photovoltaics and semiconductor materials businessIn the first three quarters, although the pressure on the production costs of multiple semiconductorphotovoltaics manufacturing links increased due to the dual impact of rising raw materials costs andenergy consumption, global energy consumption increased rapidly, thus energy structuretransformation will surely become a general trend, and the photovoltaics industry will enter along-term, high-speed development stage. In the field of semiconductor materials, the global chipshortage continues, the shortage of semiconductor materials supply has yet to ease, and theprosperity of the industry is rising. In the first three quarters, both the photovoltaics andsemiconductor materials businesses of Zhonghuan Semiconductor achieved rapid development,
with operating revenue of RMB 29.09 billion, a year-on-year increase of 117%, and net profit ofRMB 3.28 billion, a year-on-year increase of 190%.
1. Semiconductor photovoltaics field
In the first three quarters, there was a shortage in the supply of upstream materials coupled withrising prices, which accelerated the trend of silicon wafer products becoming larger and thinner.Zhonghuan Semiconductor's G12 products effectively match the benefit needs of industrial chains.The Company sped up its planned capacity construction. The diamond wire cutting ultra-thin siliconwafer smart factory project implemented in Tianjin and Inner Mongolia was put into operationsmoothly, and there has been substantial improvement in labor productivity and throughput for theG12 production line. The Ningxia Zhonghuan Phase VI project is expected to be put into operationby the end of the year. At the end of the reporting period, the Company's total production capacityof single crystal silicon increased to 73.5 GW, of which G12 production capacity accounted forabout 59%, and the Company's G12 silicon wafer market penetration increased from 6% at thebeginning of the year to 20% at the end of the reporting period. With the accumulation of advancedprocesses and technologies, the monthly production of single crystal furnaces and the A-class ratingof silicon wafers continued to increase, the silicon consumption per unit product decreasedsignificantly, and profitability improved against the quarterly trend.At the photovoltaic cell and module end, the market share of products has increased steadily basedon the deep integration of dual "G12 + Shingled PV" technology platforms with Industry 4.0 (smartmanufacturing). The production capacity of the G12 high-efficiency shingled PV module project inJiangsu Province has reached 6 GW; the G12 high-efficiency shingled PV modules project inTianjin has officially entered the production stage, adding momentum to the rapid growth of thebusiness.
2. Semiconductor materials field
In the first three quarters, the domestic substitution process of semiconductor materials accelerated,the demand for semiconductor terminals increased significantly; Zhonghuan Semiconductoraccelerated the release of production capacity and the optimization of product structure; theshipment volume of 8-12 inch polished wafers and epitaxial wafers increased, with the productionand sales scale increasing by more than 90% year-on-year. By cooperating with downstreamcustomers to establish a flexible cooperation mode, Zhonghuan Semiconductor continues to develop
and introduce customers at home and abroad, build competitive barriers based on the characteristicprocess, and develop advanced process products. At the end of the reporting period, a monthlyproduction capacity of 650,000 pieces for 8-inch products and 100,000 pieces for 12-inch productshas been formed, with a new small-diameter layout for production expansion and new 8-inchproduct projects. It is expected that by the end of 2021, the Company may achieve the establishedgoal of a monthly production capacity of 750,000 pieces for 8-inch products and 170,000 pieces for12-inch products, so as to accelerate the development of the semiconductor business.(III) Industrial finance businessIn the first three quarters, the Company's financial and treasury businesses focused on ensuring theCompany's demand for project funds, improved its active management capacity with regard toindustrial funds and risks, reduced costs and increased efficiency to the greatest extent possible,controlled corporate receivables and foreign exchange risks, and supported the Company's coremain businesses move towards global leadership. The Company's financial and treasury businesseswill continue to adopt a strategy of steady development, focusing on the Company's long-termstrategic objectives, solidly establishing long-term capacity that empowers industrial development,and supporting the Company's business operations and territory expansion.TCL Capital explored investment and deployment opportunities in key areas that drive thedevelopment of the science and technology industry, such as new display types, semiconductors andcore materials and process equipment related to the industrial chain, and promotedtechnology-business synergy, concurrently creating investment income. At the end of the reportingperiod, the funds managed by TCL Capital reached a scale of about CNY 9.2 billion, with a totalinvestment of 118 projects. At present, TCL Capital holds shares of listed companies such as CATL,DKEM, Cambricon, Newtouch Software, ZJBC Information and HyUnion Holding; AdmiraltyHarbour Capital Limited achieved steady growth in its investment banking and asset managementbusiness, completing 14 capital market and financial advisory projects in the first three quarters, andAdmiralty Harbour Capital Limited was approved to become a member of the Euroclear Bank,further diversifying its business scope; China Innovative Capital continued to focus on the industrialchain layout opportunities of the two core main businesses of the Company, invested in more than137 listed companies, with steadily growing performance.Over the past 40 years, TCL has loyally dedicated itself to the manufacturing industry, constantly
changing and innovating, traveling upstream along the electronics industrial chain all the way. TheCompany will continue to focus on resources to develop core technology industries, build strategiccontrol points in the fields of semiconductor displays, semiconductor photovoltaics andsemiconductor materials, adhere to the core requirements of "Improving Business Quality andEfficiency, Strengthening Advantages and Making up for Disadvantages, Accelerating GlobalLayout, and Innovation-driven Development", and enter a new development stage with strongerdevelopment momentum, so as to become a global leader among industry competitors!
Section IV Shareholder InformationI. Table of the total number of shareholders holding common stocks, number of shareholders holdingpreferred stocks with resumed voting rights, and shareholding of the top ten shareholders
Unit: Shares
Total number of ordinary shareholders at the period-end | 820,878 | Total number of preference shareholders with resumed voting rights at the period-end (if any) | 0 | |||||
Shareholding of the top 10 shareholders | ||||||||
Name of shareholder | Nature of shareholder | Shareholding ratio (%) | Number of shares held (shares) | Restricted shares held (shares) | Shares in pledge, marked or frozen | |||
Share status | Quantity (shares) | |||||||
Li Dongsheng and his acting-in-concert party | Domestic natural person | 8.26 | 1,158,599,393 | 610,181,602 | Pledge by Li Dongsheng | 138,178,800 | ||
Pledge by the persons acting in concert | 344,899,521 | |||||||
Huizhou Investment Holding Co., Ltd. | State-owned legal person | 5.30 | 743,139,840 | |||||
Wuhan Optics Valley Industrial Investment Co., Ltd. | State-owned legal person | 3.65 | 511,508,951 | 511,508,951 | Pledge | 255,754,475 | ||
Hong Kong Securities Clearing Company Ltd. | Overseas legal person | 2.82 | 395,663,351 | |||||
China Securities Finance Corporation Limited. | Domestic general legal person | 2.66 | 373,231,553 | |||||
Tibet Tianfeng Enterprise Management Co., Ltd. | Domestic general legal person | 1.76 | 246,568,838 | |||||
TCL Technology Group | Funds, wealth management | 0.81 | 113,143,154 |
Corporation - 2021 to 2023 Employee Stock Ownership Plan (Phase I) | products, etc. | |||||
Sinatay Life Insurance Co., Ltd. - Conventional Product | Funds, wealth management products, etc. | 0.77 | 107,528,172 | |||
ICBC Credit Suisse Asset Management -Agricultural Bank of China-ICBC Credit Suisse China Securities Financial Asset Management Plan | Funds, wealth management products, etc. | 0.53 | 74,761,500 | |||
Southern Asset Management - Agricultural Bank of China - Southern China Securities Financial Asset Management Plan | Funds, wealth management products, etc. | 0.53 | 74,761,500 | |||
Top 10 unrestricted ordinary shareholders | ||||||
Name of shareholder | Unrestricted ordinary shares held at the period-end | Type of share | ||||
Type of share | Quantity (shares) | |||||
Huizhou Investment Holding Co., Ltd. | 743,139,840 | RMB-denominated ordinary stock | 743,139,840 | |||
Li Dongsheng and his acting-in-concert party | 548,417,791 | RMB-denominated ordinary stock | 548,417,791 |
Hong Kong Securities Clearing Company Ltd. | 395,663,351 | RMB-denominated ordinary stock | 395,663,351 |
China Securities Finance Corporation Limited. | 373,231,553 | RMB-denominated ordinary stock | 373,231,553 |
Tibet Tianfeng Enterprise Management Co., Ltd. | 246,568,838 | RMB-denominated ordinary stock | 246,568,838 |
TCL Technology Group Corporation - 2021 to 2023 Employee Stock Ownership Plan (Phase I) | 113,143,154 | RMB-denominated ordinary stock | 113,143,154 |
Sinatay Life Insurance Co., Ltd. - Conventional Product | 107,528,172 | RMB-denominated ordinary stock | 107,528,172 |
ICBC Credit Suisse Fund - Agricultural Bank of China - ICBC Credit Suisse China Securities Financial Asset Management Plan | 74,761,500 | RMB-denominated ordinary stock | 74,761,500 |
Southern Asset Management - Agricultural Bank of China - Southern China Securities Financial Asset Management Plan | 74,761,500 | RMB-denominated ordinary stock | 74,761,500 |
Zhong Ou Asset Management- Agricultural Bank of China- Zhong Ou China Securities Financial Asset Management Plan | 74,761,500 | RMB-denominated ordinary stock | 74,761,500 |
Note on the above shareholders’ associations or concerted actions | Mr. Li Dongsheng and Xinjiang Jiutian Liancheng Equity Investment Partnership (Limited Partnership) became persons acting in concert by signing the Agreement on Concerted Action, holding 1,158,599,400 shares in total and becoming the largest shareholder of the Company. | ||
Note on the top 10 shareholders' participation in securities margin trading (if any) | Tibet Tianfeng Enterprise Management Co., Ltd., a shareholder of the Company, holds 154,173,746 shares through the general securities account, and holds 92,395,092 shares through the credit securities account, with a total of 246,568,838 shares actually held. |
Note: The top ten shareholders of the Company do not include the "The Securities Account of TCL Technology Group Corporationfor Repurchases". As of the end of the reporting period, there were 451,727,197 shares held in the repurchase account.
II. Total number of shareholders holding preferred stocks and shareholding of the top 10 thereof
□ Applicable √ Not applicable
Section V Other Important Matters
□ Applicable √ Not applicable
Section VI Quarterly Financial StatementsI. Financial statements
1. Consolidated Balance Sheet
Prepared by: TCL Technology Group Corporation
Unit: RMB
Item | September 30, 2021 | December 31, 2020 |
Current assets: | ||
Monetary assets | 23,184,408,917.00 | 21,708,904,743.00 |
Settlement reserves | ||
Funds on loan | ||
Held-for-trading financial assets | 11,831,331,630.00 | 5,300,045,879.00 |
Derivative financial assets | 179,909,523.00 | 453,578,245.00 |
Notes receivable | 3,379,119,189.00 | 595,685,338.00 |
Accounts receivable | 21,099,262,446.00 | 12,557,614,486.00 |
Receivables financing | 1,921,109,524.00 | 2,176,743,646.00 |
Prepayments | 2,951,934,848.00 | 1,355,653,454.00 |
Premiums receivable | ||
Reinsurance accounts receivable | ||
Reinsurance contract provisions receivable | ||
Other receivables | 3,885,453,661.00 | 2,793,640,153.00 |
Of which: Interests receivable | ||
Dividends receivable | 4,930,128.00 | |
Financial assets purchased under sale-back agreement | ||
Inventories | 14,458,361,006.00 | 8,834,957,692.00 |
Contract assets | 217,788,723.00 | 183,650,278.00 |
Held-for-sale assets | 360,935,948.00 | |
Non-current assets maturing within one year | ||
Other current assets | 9,771,156,475.00 | 9,367,055,433.00 |
Total current assets | 92,879,835,942.00 | 65,688,465,295.00 |
Non-current assets: | ||
Loans and advances to customers | 981,876,228.00 | |
Debt investments | 119,349,896.00 |
Other debt investments | 91,975,931.00 | 152,062,601.00 |
Long-term receivables | 655,239,169.00 | 778,889,309.00 |
Long-term equity investments | 24,635,045,163.00 | 24,047,036,004.00 |
Investments in other equity instruments | 1,030,905,223.00 | 1,333,675,630.00 |
Other non-current financial assets | 2,813,697,571.00 | 3,055,595,097.00 |
Investment property | 701,618,665.00 | 1,664,201,130.00 |
Fixed assets | 110,704,663,779.00 | 92,829,901,894.00 |
Construction-in-progress | 34,942,314,395.00 | 31,508,310,783.00 |
Productive biological assets | ||
Oil and gas assets | ||
Right-of-use assets | 1,980,527,730.00 | |
Intangible assets | 12,604,939,397.00 | 10,054,045,032.00 |
Development expenditures | 2,909,088,335.00 | 2,103,994,558.00 |
Goodwill | 9,125,488,681.00 | 6,943,264,794.00 |
Long-term deferred expenses | 1,627,220,359.00 | 2,536,670,015.00 |
Deferred tax assets | 2,117,664,125.00 | 1,578,087,991.00 |
Other non-current assets | 6,566,151,346.00 | 12,532,852,630.00 |
Total non-current assets | 212,506,539,869.00 | 192,219,813,592.00 |
Total assets | 305,386,375,811.00 | 257,908,278,887.00 |
Current liabilities: | ||
Short-term borrowings | 7,615,688,682.00 | 12,263,713,979.00 |
Borrowings from the Central Bank | 1,289,155,102.00 | 469,834,291.00 |
Borrowed funds | 500,100,000.00 | |
Held-for-trading financial liabilities | 1,029,572,413.00 | 527,901,041.00 |
Derivative financial liabilities | 131,544,781.00 | 384,903,731.00 |
Notes payable | 5,936,898,099.00 | 4,725,611,752.00 |
Accounts payable | 28,111,529,829.00 | 16,468,931,544.00 |
Advances from customers | 10,271,352.00 | 78,597,459.00 |
Contract liabilities | 3,133,347,724.00 | 2,004,004,181.00 |
Financial assets sold under repurchase agreements | 50,080,208.00 | |
Deposits from customers and banks and other financial institutions | 1,767,151,542.00 | 2,850,138,744.00 |
Funds for brokering securities transaction | ||
Funds for brokering securities underwriting |
Remunerations payable | 3,067,368,090.00 | 1,856,664,146.00 |
Taxes and levies payable | 1,695,966,861.00 | 670,058,792.00 |
Other payables | 18,156,812,794.00 | 14,869,433,359.00 |
Of which: Interests payable | ||
Dividends payable | 34,607,024.00 | 1,293,097.00 |
Service charges and commissions payable | ||
Reinsurance accounts payable | ||
Held-for-sale liabilities | ||
Non-current liabilities maturing within one year | 11,044,514,342.00 | 13,429,669,611.00 |
Other current liabilities | 879,169,322.00 | 366,970,706.00 |
Total current liabilities | 84,369,090,933.00 | 71,016,513,544.00 |
Non-current liabilities: | ||
Insurance contract provisions | ||
Long-term borrowings | 90,381,279,079.00 | 73,589,403,308.00 |
Bonds payable | 16,959,991,644.00 | 18,040,772,610.00 |
Of which: Preferred stocks | ||
Perpetual bonds | ||
Lease liabilities | 940,140,289.00 | |
Long-term payables | 497,341,480.00 | 1,280,299,665.00 |
Long-term remunerations payable | 86,649,243.00 | 27,857,583.00 |
Estimated liabilities | ||
Deferred income | 1,311,591,825.00 | 1,509,867,357.00 |
Deferred tax liabilities | 2,964,549,710.00 | 2,386,496,733.00 |
Other non-current liabilities | ||
Total non-current liabilities | 113,141,543,270.00 | 96,834,697,256.00 |
Total liabilities | 197,510,634,203.00 | 167,851,210,800.00 |
Owner's equity: | ||
Capital stock | 14,030,642,421.00 | 14,030,788,362.00 |
Other equity instruments | 230,240,606.00 | 230,240,606.00 |
Of which: Preferred stocks | ||
Perpetual bonds | ||
Capital reserves | 3,909,667,193.00 | 5,442,384,608.00 |
Less: Treasury stocks | 2,423,528,242.00 | 1,913,028,859.00 |
Other comprehensive income | -319,841,847.00 | -145,573,093.00 |
Specific reserves | 1,003,264.00 | 211,932.00 |
Surplus reserves | 2,452,892,102.00 | 2,452,892,102.00 |
General risk provisions | 360,767.00 | 385,534.00 |
Retained earnings | 21,601,813,150.00 | 14,009,494,262.00 |
Total equity attributable to the owners of the parent company | 39,483,249,414.00 | 34,107,795,454.00 |
Minority interests | 68,392,492,194.00 | 55,949,272,633.00 |
Total owner's equity | 107,875,741,608.00 | 90,057,068,087.00 |
Total liabilities and owner's equity | 305,386,375,811.00 | 257,908,278,887.00 |
Legal representative: Li Dongsheng Person in charge of accounting: Li JianHead of accounting department: Xi Wenbo
2. Consolidated Income Statement from the beginning of the year to the end of the reporting period
Unit: RMB
Item | Amount incurred in the current period | Amount incurred in the previous period |
I. Total revenue | 121,041,930,585.00 | 48,833,159,938.00 |
Of which: Revenue | 120,928,535,190.00 | 48,709,987,251.00 |
Interest income | 113,395,395.00 | 123,172,687.00 |
Earned premiums | ||
Service charge and commission income | ||
II. Total costs | 108,632,792,060.00 | 49,698,704,134.00 |
Of which: Costs of sales | 95,426,765,891.00 | 43,507,752,953.00 |
Interest expenditures | 24,985,728.00 | 25,967,987.00 |
Service charge and commission expenditures | ||
Surrender value | ||
Net claims payment | ||
Net insurance liability provisions accrued | ||
Policy dividend expenditures | ||
Reinsurance expenses | ||
Taxes and levies | 517,656,005.00 | 147,380,452.00 |
Selling expenses | 1,552,806,398.00 | 548,204,916.00 |
Administrative expenses | 3,008,738,778.00 | 1,215,567,756.00 |
R&D expenses | 5,274,324,791.00 | 2,800,775,204.00 |
Financial expenses | 2,827,514,469.00 | 1,453,054,866.00 |
Of which: Interest expenses | 3,143,032,709.00 | 1,663,333,175.00 |
Interest income | 304,396,859.00 | 297,750,444.00 |
Plus: Other income | 1,236,157,521.00 | 1,254,526,018.00 |
Return on investment (losses are indicated by "-") | 2,884,044,180.00 | 1,951,687,393.00 |
Of which: Share of profit or loss of joint ventures and associates | 2,115,987,323.00 | 1,293,666,489.00 |
Income from derecognition of financial assets measured at amortised costs | ||
Exchange gains (losses are indicated by "-") | 1,496,097.00 | 321,274.00 |
Gain on net exposure hedging (losses are indicated by "-") | ||
Gain on changes in fair value (losses are indicated by "-") | 38,035,283.00 | 294,474,510.00 |
Credit impairment losses (losses are indicated by "-") | -14,189,833.00 | 7,074,256.00 |
Asset impairment losses (losses are indicated by "-") | -1,556,201,649.00 | -708,096,422.00 |
Income from asset disposal (losses are indicated by "-") | 24,654,877.00 | 931,334.00 |
III. Operating profit (losses are indicated by "-") | 15,023,135,001.00 | 1,935,374,167.00 |
Plus: Non-operating income | 284,672,695.00 | 496,388,240.00 |
Less: Non-operating expenditures | 42,141,653.00 | 31,308,402.00 |
IV. Gross profits (total losses are indicated by "-") | 15,265,666,043.00 | 2,400,454,005.00 |
Less: Income tax expenses | 2,102,388,345.00 | 338,749,095.00 |
V. Net profits (net losses are indicated by "-") | 13,163,277,698.00 | 2,061,704,910.00 |
(1) Classification by business continuity | ||
1. Net profits from continuing operations (net losses are indicated by "-") | 13,104,980,954.00 | 2,061,704,910.00 |
2. Net profits from discontinued operations (net losses are indicated by "-") | 58,296,744.00 | |
(2) Classification by ownership | ||
1. Net profits attributable to the owners of the parent company | 9,101,970,170.00 | 2,025,175,746.00 |
2. Net profits attributable to minority interests | 4,061,307,528.00 | 36,529,164.00 |
VI. Other comprehensive income, net of tax | -160,804,149.00 | 184,621,267.00 |
Other comprehensive income attributable to the owners of the parent company, net of tax | -174,268,754.00 | 220,697,688.00 |
(1) Other comprehensive income that will not be reclassified to profit or loss | -214,495,965.00 | -26,301,283.00 |
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 | 14,869,672.00 | -5,592,197.00 |
3. Changes in fair value of other equity instrument investments | -229,365,637.00 | -20,709,086.00 |
4. Changes in fair value of the enterprise's own credit risks | ||
5. Others | ||
(2) Other comprehensive income that may subsequently reclassified into profit and loss | 40,227,211.00 | 246,998,971.00 |
1. Other comprehensive income that can be transferred to profits and losses under the equity method | -141,659,959.00 | 78,939,921.00 |
2. Changes in fair value of other debt investments | 118,211.00 | |
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 | -10,473,743.00 | 48,139,564.00 |
6. Conversion differences in foreign currency financial statements | 192,242,702.00 | 119,919,486.00 |
7. Others | ||
Other net comprehensive income attributable to minority interests, net of tax | 13,464,605.00 | -36,076,421.00 |
VII. Total comprehensive income | 13,002,473,549.00 | 2,246,326,177.00 |
Total comprehensive income attributable to the owners of the parent company | 8,927,701,416.00 | 2,245,873,434.00 |
Total comprehensive income attributable to minority interests | 4,074,772,133.00 | 452,743.00 |
VIII. Earnings per share: | ||
(1) Basic earnings per share | 0.6756 | 0.1563 |
(2) Diluted earnings per share | 0.6487 | 0.1497 |
Legal representative: Li Dongsheng Person in charge of accounting: LiJianHead of accounting department: Xi Wenbo
3. Consolidated Cash Flow Statement from the beginning of the year to the end of the reporting period
Unit: RMB
Item | Amount incurred in the current period | Amount incurred in the previous period |
I. Cash flow generated from operating activities: | ||
Proceeds from sale of commodities and rendering of services | 102,830,329,814.00 | 50,348,052,437.00 |
Net increase of deposits from customers and banks and other financial institutions | -1,082,987,202.00 | 1,984,254,690.00 |
Net increase of borrowings from the Central Bank | 819,320,811.00 | 661,882,266.00 |
Net increase of borrowings from other financial institutions | 500,100,000.00 | |
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 commissions | 113,395,395.00 | 123,172,687.00 |
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 | 3,993,901,692.00 | 2,691,374,733.00 |
Cash generated from other operating activities | 5,956,428,024.00 | 1,704,768,084.00 |
Sub-total of cash generated from operating activities | 113,130,488,534.00 | 57,513,504,897.00 |
Payments for commodities and services | 73,019,566,104.00 | 36,638,895,339.00 |
Net increase of loans and advances to customers | 324,408,575.00 | -991,814,418.00 |
Net increase of deposits with the Central Bank, banks and other financial institutions | 299,437,969.00 | -284,795,549.00 |
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 | 5,891,150,448.00 | 2,985,796,906.00 |
Taxes and levies paid | 3,198,245,274.00 | 3,682,068,200.00 |
Cash used in other operating activities | 6,437,971,103.00 | 3,612,284,290.00 |
Sub-total of cash used in operating activities | 89,170,779,473.00 | 45,642,434,768.00 |
Net cash generated from operating activities | 23,959,709,061.00 | 11,871,070,129.00 |
II. Cash flow generated from investment activities: |
Proceeds from disinvestments | 18,761,531,372.00 | 17,115,227,387.00 |
Proceeds from return on investments | 1,486,814,462.00 | 783,085,375.00 |
Net proceeds from disposal of fixed assets, intangible assets and other long-term assets | 170,993,357.00 | 148,840.00 |
Net proceeds from disposal of subsidiaries and other business units | 1,167,218,777.00 | 303,139,290.00 |
Cash generated from other investing activities | 5,589,112.00 | |
Sub-total of cash generated from investment activities | 21,592,147,080.00 | 18,201,600,892.00 |
Payments for the acquisition and construction of fixed assets, intangible assets and other long-term assets | 20,703,364,427.00 | 23,959,069,555.00 |
Payments for investments | 26,563,389,197.00 | 34,796,469,202.00 |
Net increase of pledged loans | ||
Net payments for acquiring subsidiaries and other business units | 4,139,504,958.00 | |
Cash used in other investing activities | 104,678,378.00 | 23,279,913.00 |
Subtotal of cash used in investing activities | 51,510,936,960.00 | 58,778,818,670.00 |
Net cash used in investing activities | -29,918,789,880.00 | -40,577,217,778.00 |
III. Cash flow generated from financing activities: | ||
Capital contributions received | 10,064,658,519.00 | 3,262,240,000.00 |
Of which: Capital contributions by non-controlling interests to subsidiaries | 10,064,658,519.00 | 3,262,240,000.00 |
Borrowings raised | 48,844,261,186.00 | 53,060,270,869.00 |
Cash generated from other financing activities | 858,099,886.00 | 473,470,318.00 |
Sub-total of cash generated from financing activities | 59,767,019,591.00 | 56,795,981,187.00 |
Cash paid for debt repayment | 39,176,083,445.00 | 28,146,415,143.00 |
Cash paid for distribution of dividends and profits or payment of interests | 5,851,178,360.00 | 4,080,360,106.00 |
Of which: Dividends and profits paid by subsidiaries to minority shareholders | 412,425,974.00 | 279,523,652.00 |
Other cash paid in relation to financing activities | 6,056,321,743.00 | 1,083,465,759.00 |
Subtotal of cash used in financing activities | 51,083,583,548.00 | 33,310,241,008.00 |
Net cash generated from financing activities | 8,683,436,043.00 | 23,485,740,179.00 |
IV. Effect of exchange rate changes on cash and cash equivalents | 3,648,815.00 | -46,170,424.00 |
V. Net increase of cash and cash equivalents | 2,728,004,039.00 | -5,266,577,894.00 |
Plus: Beginning balance of cash and cash equivalents | 18,208,416,780.00 | 17,637,742,929.00 |
VI. Closing balance of cash and cash equivalents | 20,936,420,819.00 | 12,371,165,035.00 |
Legal representative: Li Dongsheng Person in charge of accounting: LiJianHead of accounting department: Xi WenboII. Notes on adjustments in the financial statements
1. Adjustments to the beginning balances of the relevant items of the financial statements due to theadoption of the new Leasing Standards initially implemented beginning in 2021
√ Applicable □ Not applicable
Whether there is need to adjust the beginning balances of the balance sheet items
√ Yes □ No
Consolidated Balance Sheet
Unit: RMB
Item | December 31, 2020 | January 1, 2021 | Amount of adjustment |
Current assets: | |||
Monetary assets | 21,708,904,743.00 | 21,708,904,743.00 | |
Settlement reserves | |||
Funds on loan | |||
Held-for trading financial assets | 5,300,045,879.00 | 5,300,045,879.00 | |
Derivative financial assets | 453,578,245.00 | 453,578,245.00 | |
Notes receivable | 595,685,338.00 | 595,685,338.00 | |
Accounts receivable | 12,557,614,486.00 | 12,557,614,486.00 | |
Receivables financing | 2,176,743,646.00 | 2,176,743,646.00 | |
Prepayments | 1,355,653,454.00 | 1,355,653,454.00 | |
Premiums receivable | |||
Reinsurance accounts receivable | |||
Reinsurance contract provisions receivable | |||
Other receivables | 2,793,640,153.00 | 2,793,640,153.00 | |
Of which: Interests receivable | |||
Dividends receivable | |||
Financial assets purchased under sale-back agreement | |||
Inventories | 8,834,957,692.00 | 8,834,957,692.00 | |
Contract assets | 183,650,278.00 | 183,650,278.00 |
Held-for-sale assets | 360,935,948.00 | 360,935,948.00 | |
Non-current assets maturing within one year | |||
Other current assets | 9,367,055,433.00 | 9,367,055,433.00 | |
Total current assets | 65,688,465,295.00 | 65,688,465,295.00 | |
Non-current assets: | |||
Loans and advances to customers | 981,876,228.00 | 981,876,228.00 | |
Debt investments | 119,349,896.00 | 119,349,896.00 | |
Other debt investments | 152,062,601.00 | 152,062,601.00 | |
Long-term receivables | 778,889,309.00 | 778,889,309.00 | |
Long-term equity investments | 24,047,036,004.00 | 24,047,036,004.00 | |
Investments in other equity instruments | 1,333,675,630.00 | 1,333,675,630.00 | |
Other non-current financial assets | 3,055,595,097.00 | 3,055,595,097.00 | |
Investment property | 1,664,201,130.00 | 1,664,201,130.00 | |
Fixed assets | 92,829,901,894.00 | 91,515,595,994.00 | -1,314,305,900.00 |
Construction-in-progress | 31,508,310,783.00 | 31,508,310,783.00 | |
Productive biological assets | |||
Oil and gas assets | |||
Right-of-use assets | 1,856,862,180.00 | 1,856,862,180.00 | |
Intangible assets | 10,054,045,032.00 | 10,054,045,032.00 | |
Development expenditures | 2,103,994,558.00 | 2,103,994,558.00 | |
Goodwill | 6,943,264,794.00 | 6,943,264,794.00 | |
Long-term deferred expenses | 2,536,670,015.00 | 2,099,368,428.00 | -437,301,587.00 |
Deferred tax assets | 1,578,087,991.00 | 1,578,087,991.00 | |
Other non-current assets | 12,532,852,630.00 | 12,532,852,630.00 | |
Total non-current assets | 192,219,813,592.00 | 192,325,068,285.00 | 105,254,693.00 |
Total assets | 257,908,278,887.00 | 258,013,533,580.00 | 105,254,693.00 |
Current liabilities: | |||
Short-term borrowings | 12,263,713,979.00 | 12,263,713,979.00 | |
Borrowings from the Central Bank | 469,834,291.00 | 469,834,291.00 | |
Borrowed funds | |||
Held-for-trading financial liabilities | 527,901,041.00 | 527,901,041.00 | |
Derivative financial liabilities | 384,903,731.00 | 384,903,731.00 | |
Notes payable | 4,725,611,752.00 | 4,725,611,752.00 |
Accounts payable | 16,468,931,544.00 | 16,468,931,544.00 | |
Advances received | 78,597,459.00 | 78,597,459.00 | |
Contract liabilities | 2,004,004,181.00 | 2,004,004,181.00 | |
Financial assets sold under repurchase agreement | 50,080,208.00 | 50,080,208.00 | |
Deposits from customers and banks and other financial institutions | 2,850,138,744.00 | 2,850,138,744.00 | |
Funds for brokering securities transaction | |||
Funds for brokering securities underwriting | |||
Remunerations payable | 1,856,664,146.00 | 1,856,664,146.00 | |
Taxes and levies payable | 670,058,792.00 | 670,058,792.00 | |
Other payables | 14,869,433,359.00 | 14,869,433,359.00 | |
Of which: Interests payable | |||
Dividends payable | 1,293,097.00 | 1,293,097.00 | |
Service charges and commissions payable | |||
Reinsurance accounts payable | |||
Held-for-sale liabilities | |||
Non-current liabilities maturing within one year | 13,429,669,611.00 | 13,449,071,421.00 | 19,401,810.00 |
Other current liabilities | 366,970,706.00 | 366,970,706.00 | |
Total current liabilities | 71,016,513,544.00 | 71,035,915,354.00 | 19,401,810.00 |
Non-current liabilities: | |||
Insurance contract provisions | |||
Long-term borrowings | 73,589,403,308.00 | 73,589,403,308.00 | |
Bonds payable | 18,040,772,610.00 | 18,040,772,610.00 | |
Of which: Preferred stocks | |||
Perpetual bonds | |||
Lease liabilities | 912,550,980.00 | 912,550,980.00 | |
Long-term payables | 1,280,299,665.00 | 453,601,568.00 | -826,698,097.00 |
Long-term remunerations payable | 27,857,583.00 | 27,857,583.00 | |
Estimated liabilities | |||
Deferred income | 1,509,867,357.00 | 1,509,867,357.00 | |
Deferred tax liabilities | 2,386,496,733.00 | 2,386,496,733.00 |
Other non-current liabilities | |||
Total non-current liabilities | 96,834,697,256.00 | 96,920,550,139.00 | 85,852,883.00 |
Total liabilities | 167,851,210,800.00 | 167,956,465,493.00 | 105,254,693.00 |
Owner's equity: | |||
Capital stock | 14,030,788,362.00 | 14,030,788,362.00 | |
Other equity instruments | 230,240,606.00 | 230,240,606.00 | |
Of which: Preferred stocks | |||
Perpetual bonds | |||
Capital reserves | 5,442,384,608.00 | 5,442,384,608.00 | |
Less: Treasury stocks | 1,913,028,859.00 | 1,913,028,859.00 | |
Other comprehensive income | -145,573,093.00 | -145,573,093.00 | |
Specific reserves | 211,932.00 | 211,932.00 | |
Surplus reserves | 2,452,892,102.00 | 2,452,892,102.00 | |
General risk provisions | 385,534.00 | 385,534.00 | |
Retained earnings | 14,009,494,262.00 | 14,009,494,262.00 | |
Total equity attributable to the owners of the parent company | 34,107,795,454.00 | 34,107,795,454.00 | |
Minority interests | 55,949,272,633.00 | 55,949,272,633.00 | |
Total owner's equity | 90,057,068,087.00 | 90,057,068,087.00 | |
Total liabilities and owner's equity | 257,908,278,887.00 | 258,013,533,580.00 | 105,254,693.00 |
Note on the adjustmentsAs of January 1, 2021, the Company has adopted the Accounting Standards for Business Enterprises No. 21 - Leasing revised by theMinistry of Finance in 2018.The Company has adopted the simplified retroactive adjustment method to adjust the beginning balances of relevant items of thefinancial statements for the year of the initial implementation (January 1, 2021) according to the cumulative impact of the initialimplementation of the Standards based on the requirements of the new Leasing Standards, and has not adjusted the information forcomparable periods.The impact of the implementation of the new Lease Standards on the beginning balances of the relevant items of the Balance Sheetare shown as follows:
Unit: RMB
Item | December 31, 2020 | Amount of adjustment | January 1, 2021 |
Fixed assets | 92,829,901,894 | -1,314,305,900 | 91,515,595,994 |
Right-of-use assets | 1,856,862,180 | 1,856,862,180 |
Long-term prepaid expenses | 2,536,670,015 | -437,301,587 | 2,099,368,428 |
Non-current liabilities maturing within one year | 13,429,669,611 | 19,401,810 | 13,449,071,421 |
Lease liabilities | 912,550,980 | 912,550,980 |
Long-term payables | 1,280,299,665 | -826,698,097 | 453,601,568 |
2. Notes on retrospective adjustments to the previous comparative data due to adoption of the new LeasingStandards initially implemented beginning in 2021
□ Applicable √ Not applicable
III. Auditor’s reportWhether the Third Quarter 2021 Report has been audited or not?
□ Yes √ No
The Company's Third Quarter 2021 Report has not yet been audited.
TCL Technology Group Corporation
Board of DirectorsOctober 27, 2021