Stock Code: 000100 Stock Abbr.: TCL TECH. Announcement No.: 2023-063
TCL科技集团股份有限公司TCL Technology Group Corporation
Third Quarter 2023 Report
October 27, 2023
Content
Section I Important Notices and Definitions ...... 3
Section II Key Financial Information ...... 5
Section III Management Discussion and Analysis ...... 7
Section IV Shareholder Information ...... 11
Section V Other Significant Events ...... 13
Section VI Quarterly Financial Statements ...... 14
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, accurate,and complete.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 to | Definition |
Company, the Company, the Group | Refers to | TCL Technology Group Corporation |
The “Reporting Period”, “current period” | Refers to | The period from January 1, 2023 to September 30, 2023. |
The “Reporting Period”, “current period” | Refers to | The period from July 1, 2023 to September 30, 2023. |
TCL CSOT | Refers to | TCL China Star Optoelectronics Technology Co., Ltd. |
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) |
RMB | Refers to | Renminbi |
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 □ NoEarnings per share in the third quarter of 2022 were adjusted due to the conversion of capital reserve into share capital during the Reporting Period
Q3 2023 | Q3 2022 | Change | Beginning of the year to the end of the reporting period | Q3 2022 | Change | |||
Before adjustment | After adjustment | After adjustment | Before adjustment | After adjustment | After adjustment | |||
Revenue (RMB) | 47,960,309,079 | 41,992,680,714 | 41,992,680,714 | 14.21% | 133,109,034,685 | 126,514,861,842 | 126,514,861,842 | 5.21% |
Net profit attributable to the company’s shareholders (RMB) | 1,270,918,405 | -382,858,737 | -382,858,737 | 431.95% | 1,611,411,994 | 280,664,134 | 280,664,134 | 474.14% |
Net profits attributable to the company’s shareholders before non-recurring gains and losses (RMB) | 1,107,560,913 | -1,259,772,878 | -1,259,772,878 | 187.92% | 507,494,073 | -1,886,642,263 | -1,886,642,263 | 126.90% |
Net cash generated from operating activities (RMB) | — | — | — | — | 16,144,013,013 | 12,661,888,660 | 12,661,888,660 | 27.50% |
Basic earnings per share (RMB/share) | 0.0686 | -0.0282 | -0.0257 | 366.93% | 0.0870 | 0.0207 | 0.0188 | 362.77% |
Diluted earnings per share (RMB/share) | 0.0677 | -0.0280 | -0.0255 | 365.49% | 0.0858 | 0.0205 | 0.0186 | 361.29% |
Weighted average return on equity (%) | 2.46% | -0.99% | -0.99% | Increase by 3.45 percentage points YoY | 3.13% | 0.72% | 0.72% | Increase by 2.41 percentage points YoY |
At the end of the reporting period | December 31, 2022 | Change | ||||||
Before adjustment | After adjustment | After adjustment | ||||||
Total assets (RMB) | 389,212,032,795 | 359,996,232,668 | 359,996,232,668 | 8.12% | ||||
Owner’s equity attributable to the company’s shareholders (RMB) | 52,331,472,951 | 50,678,520,477 | 50,678,520,477 | 3.26% |
Note: The Company converted capital reserve into share capital in May 2023, at a rate of 1 share for every ten shares to all shareholders. The Company recalculated the basic earnings per shareand the diluted earnings per share for FY2022 in accordance with accounting standards and other regulations.
(II) Non-recurring profit and loss items and amounts
?Applicable □ Not applicable
Unit: RMB
Item | Amount in the 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) | -13,604,021 | 308,149,421 |
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) | 735,377,897 | 2,002,636,876 |
The profits or losses generated from changes in fair value arising from held-for-trading financial assets and held-for-trading financial liabilities, as well as return on investment from the disposal of held-for-trading financial assets, held-for-trading financial liabilities and available-for-sale financial assets, except for the effective hedging business related to the Company’s normal business operation. | -69,031,849 | -111,771,947 |
Reversal of provision for impairment of receivables that have been individually tested for impairment | 10,904,237 | 13,404,237 |
Non-operating income and expenses other than the above | -4,429,556 | 702,991,099 |
Less: Corporate income tax | 166,912,976 | 531,434,692 |
Non-controlling interests (net of tax) | 328,946,240 | 1,280,057,073 |
Total | 163,357,492 | 1,103,917,921 |
Details of other profit and loss items that meet the definition of non-recurring profits and losses:
□ Applicable ?Not applicable
The Company has no other profit and loss items that meet the definition of non-recurring profits and losses.Notes on non-recurring profit and loss items that which is listed in the Explanatory Announcement No. 1 on Information 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: RMB
Balance Sheet items | Ending balance | Beginning balance | Increase / decrease ratio (%) | Reason for change |
Held-for-trading financial assets | 17,015,862,288 | 12,703,507,482 | 33.9 | Mainly caused by an increase in wealth management products |
Accounts receivable | 25,259,972,511 | 14,051,661,462 | 79.8 | Mainly caused by an expansion of sales, an increase in accounts receivables |
Cash Flow Statement items | Current balance | Prior balance | Increase / decrease ratio (%) | Reason for change |
Net cash generated from financing activities | 7,657,735,025 | 24,068,689,896 | -68.2 | Mainly caused by a decrease in financing activities |
Section III Management Discussion and AnalysisThe global economic growth rate slowed down this year, being influenced by such factors asintensifying geopolitical tensions, stubbornly high inflation, and tightening policies adopted bycertain economies to address inflation. In the face of such a complex and challenging externalenvironment, the Company focused on two core industries of display and new energy photovoltaic,so as to strengthen operational resilience and optimize business strategies in pursuit of sustainableand high-quality development. From January to September 2023, the Company achieved an operatingrevenue of RMB133.1 billion, up 5.2% year on year; net profits of RMB5.57 billion, up 185% yearon year; net profit attributable to shareholders of the listed company of RMB1.61 billion, up 474%year on year; and net operating cash flow of RMB16.14 billion.As the international relocation of display production capacity gradually drew to an end, thecompetitive landscape of display industry had leveled out. The industry had returned to a stage oforderly development based on reasonable business returns, and enterprises continuously optimizedtheir business strategies to promote the gradual recovery of the industry. During the Reporting Period,display industry enjoyed a stable supply and demand relationship, large-sized display products drovethe area of demand increase steady and the prices of mainstream products, such as TV panels, againrose to the range of profitability. The Company continued to upscale its products, and furtheroptimized its business structure. In the third quarter, the display business recorded a revenue ofRMB25.68 billion, net profit of RMB1.82 billion, accompanied by vastly improved profitability.With the structural transformation of global energy, the Company’s new energy photovoltaicbusiness continued to consolidate its leading advantages in both technologies and intelligentmanufacturing, improved its synergistic role in congruence with the industry chain, pro-activelyexpanded its global presence, and achieved robust growth in both scale and performance ofproduction and sales. During the Reporting Period, TZE registered an operating revenue ofRMB48.65 billion and net profit of RMB6.58 billion, up 19.9% year on year.Display BusinessDuring the Reporting Period, the end-user demand for display maintained stability amidfluctuation, manifested a trend of seasonal improvement, while the popularity of larger-sized TVs
continued to drive growth in demand areas. The ever-improving supply-side landscape had furthergalvanized the healthy development of the industry, and catalyzed the uptick in prices of large-sizedpanels at the beginning of this March. The prices of small and medium-sized panels graduallystabilized. Driven by downstream new product launches and stockpiling, small-sized panels sufferedfrom structural capacity shortages in the third quarter which led to product price increases.
TCL CSOT maintained healthy inventory through flexible production scheduling strategies,expedited operational turnover, and consistently improved its business and product structure. Risingproduct prices also evidenced the improvement of quarter-on-quarter operational performance. In thefirst three quarters of 2023, the display business achieved an revenue of RMB61.2 billion, up by 17.5%year on year, including revenue of RMB25.68 billion in the third quarter, represented an increase of
73.0% year on year, or 25.8% quarter on quarter; and achieved net profit of RMB1.82 billion, turnedlosses into gains in the third quarter and resulted in both YoY and QoQ growth.
In large-sized segment, TCL CSOT had taken full advantages of the high-generation productionlines, and led the industry by its large-sized panels. TCL CSOT consolidated its top 2 position in theglobal market share of TV panels. TCL CSOT’s proportion of shipping area of TV products withsizes of 55 inches and above had increased to 79%, while the market share of 55-inch and 75-inchproducts ranked first in the world, the market share of 65-inch products ranked second in the world.In commercial markets such as interactive whiteboards, digital signage, and splicing screens, TCLCSOT ranked among the top three in terms of global market share. In its medium-sized productsbusiness, the t9 production line successfully achieved a capacity increase, with expanding marketshare, and the Company continued to optimize the layout of its product and customer structure. TheCompany’s shipment of monitors jumped to a ranking of third in the world, with e-sports monitorsoccupied the largest percentage of market share worldwide. Products for laptops and vehicle-mounteddevices were introduced to major brands worldwide at an accelerated rate. In its small-sized productsbusiness, the Company consolidated its competitiveness through technological innovation. TheCompany ranked among the top three in the world in terms of LTPS mobile panel shipments. The G6LTPS production line was expanded as planned to meet demands for multi-purpose products. Theutilization of the t4 flexible OLED production line was significantly improved, with increasing sharesof high-end products. In the third quarter, the Company ascended to fourth place globally in terms ofmarket share for flexible OLED.
Looking ahead into the fourth quarter, with further improvements in the competitive landscapeand new development trends based on reasonable business returns, the display industry will maintainsupply-demand balance as well as developing in a long-term, orderly, and healthy manner. The pricesof large-sized display products are subject to a moderate degree of seasonal variation. The prices ofmedium-sized products have stabilized, while small-sized products see a higher utilization rate andrising prices in certain areas because of demands for new products. The Company is confident thatits display business will continue to operate steady in the fourth quarter.
New Energy Photovoltaics Business
In the first three quarters of 2023, the photovoltaics industry witnessed intensifying competitionin key sectors, drove prices downward throughout the industrial chain. Be that as it may, the economicviability of photovoltaic power generation improved, impelled a steady increase in installationcapacity at the terminal end. The photovoltaic industry would return to technological innovation andmanufacturing prowess in terms of core competitiveness. TZE gave full play to its rights of defining,benchmarking, and pricing through the improvement of technologies and manufacturing,consolidated its leading position in the market and achieved steady performance growth. During theReporting Period, TZE registered an operating revenue of RMB48.65 billion and net profit ofRMB6.58 billion, up 19.9% year on year.
The production capacity of G12 and N-type photovoltaic materials continued to increase. TZEenhanced the layout of TOPCON cells and shingled modules, and strengthened its differentiatedcompetitiveness. During the Reporting Period, the Company’s production and sales of photovoltaicmaterials rose by 68% year on year, with G12 silicon wafers occupied the largest share of the globalmarket, while N-type silicon wafers also secured pole position in terms of market share of sales. TheCompany led the upgrade of large-sized, thin-slice, thin-line process technologies for crystals andwafers. The Company excelled in metrics such as the monthly crystal output per furnace, volume ofwafer output per kg, and significantly enhanced its leadership position in terms of cost management.To improve industrial synergy, the Company built a demonstration production line for G12 cells withannual output of 2GW in the Jiangsu province, and invested in and constructed an intelligent 25GWN-type TOPCON plant for solar power cells, expedited the development of shingled module projects.
By virtue of the capability of the Industry 4.0 technology in flexible manufacturing and the
strategic partnership with the international community, TZE accelerated to deploy a layout in theglobal commercial market. Having relied on long-term investment and development in smartmanufacturing over the years, the Company had applied Industry 4.0 flexible manufacturing invarious industries, created autonomously coordinated and highly efficient dark factories, whichenabled the Company to achieve industry-leading productivity, with a competitive advantage inlocalized manufacturing on a global scale. The Company signed the Joint Development Agreementwith Vision Industries Company, with a view to jointly investing in and establishing a photovoltaiccrystal and wafer factory in Saudi Arabia with a designed capacity of 20GW in its first phase. Givento Maxeon's intellectual properties and technology advantages in IBC cell-modules and shingledmodules, the Company and Maxeon had achieved mutually reinforced and coordinated developmentin terms of production and channels globally. These efforts will further accelerate the future growthof the Company’s overseas business.
Looking ahead to the future, the display industry has entered a new phase of development amida reshaped competitive landscape. By continuously developing its capabilities in response to demandfluctuations, the Company is expecting consistently improving returns on its display business. TZEwill continue to take advantage of its leading position in terms of G12 and N-type strategic products,intensify the synergistic expansion of modules and cells, and actively expand its internationalbusiness. Under such a backdrop, the Company's new energy photovoltaic business will experiencerobust growth. The Company will seize opportunities from manufacturing upgrades and global cleanenergy transformation, continue to implement its business strategy of “improving operational qualityand efficiency, enhancing strengths to shore up weaknesses, innovation-driven development as wellas accelerating global expansion” to achieve sustainable and high-quality development, and turn itselfinto a global leader.
Section IV Shareholder Information(I) Table of the total number of ordinary shareholders and the number of preferred shareholders withresumed voting rights as well as the shareholdings of the top 10 shareholders
Unit: Share
Total number of ordinary shareholders by the end of the reporting period | 622,787 | Total number of preferred shareholders with resumed voting rights by the end of the reporting period (if any) | 0 | |||
Shareholdings of top 10 shareholders of ordinary shares | ||||||
Name of shareholder | Nature of shareholder | Shareholding percentage (%) | Number of shares held | Number of restricted shares held | Shares in pledge, marked or frozen | |
Status | Shares | |||||
Li Dongsheng and his acting-in-concert party | Domestic individual/ Domestic general legal entity | 6.73% | 1,264,053,189 | 672,868,839 | Put in pledge by Li Dongsheng | 100,320,000 |
Put in pledge by Jiutian Liancheng | 308,057,743 | |||||
Hong Kong Securities Clearing Company Ltd. | Foreign legal entity | 5.67% | 1,065,125,357 | |||
Huizhou Investment Holding Co., Ltd. | State-owned legal entity | 4.35% | 817,453,824 | |||
Wuhan Optics Valley Industrial Investment Co., Ltd. | State-owned legal entity | 2.83% | 532,003,016 | Pledge | 149,000,000 | |
China Securities Finance Corporation Limited | Domestic general legal entity | 2.19% | 410,554,710 | |||
CITIC Securities Co., Ltd. | State-owned legal entity | 1.48% | 277,627,874 | |||
Perseverance Asset Management Partnership (Limited Partnership) - Gaoyi Xiaofeng No. 2 Zhixin Fund | Fund, wealth management product, etc. | 1.21% | 226,736,512 | |||
Bank of China Limited - Huatai-Pinebridge CSI Photovoltaic Industry ETF | Fund, wealth management product, etc. | 0.96% | 179,627,610 | |||
China Foreign Economy and Trade Trust Co., Ltd. - Foreign trade trust - Gaoyi Xiaofeng Hong Yuan Collective Fund Trust Scheme | Fund, wealth management product, etc. | 0.90% | 168,599,830 | |||
China Securities Co., Ltd. - Tianhong CSI Photovoltaic Industry ETF | Fund, wealth management product, etc. | 0.75% | 141,775,320 | |||
Shareholdings of top 10 non-restricted ordinary shareholders | ||||||
Name of shareholder | Number of non-restricted ordinary shares held at the end of reporting period | Share type and quantity | ||||
Type | Quantity | |||||
Hong Kong Securities Clearing Company Ltd. | 1,065,125,357 | RMB-denominated ordinary shares | 1,065,125,357 | |||
Huizhou Investment Holding Co., Ltd. | 817,453,824 | RMB-denominated ordinary shares | 817,453,824 | |||
Li Dongsheng and his acting-in-concert party | 591,184,350 | RMB-denominated ordinary shares | 591,184,350 | |||
Wuhan Optics Valley Industrial Investment Co., Ltd. | 532,003,016 | RMB-denominated ordinary shares | 532,003,016 | |||
China Securities Finance Corporation Limited | 410,554,710 | RMB-denominated ordinary shares | 410,554,710 | |||
CITIC Securities Co., Ltd. | 277,627,874 | RMB-denominated ordinary shares | 277,627,874 | |||
Perseverance Asset Management Partnership (Limited Partnership) - Gaoyi Xiaofeng No. 2 Zhixin Fund | 226,736,512 | RMB-denominated ordinary shares | 226,736,512 |
Bank of China Limited - Huatai-Pinebridge CSI Photovoltaic Industry ETF | 179,627,610 | RMB-denominated ordinary shares | 179,627,610 | |
China Foreign Economy and Trade Trust Co., Ltd. - Foreign trade trust - Gaoyi Xiaofeng Hong Yuan Collective Fund Trust Scheme | 168,599,830 | RMB-denominated ordinary shares | 168,599,830 | |
China Securities Co., Ltd. - Tianhong CSI Photovoltaic Industry ETF | 141,775,320 | RMB-denominated ordinary shares | 141,775,320 | |
Note on the above shareholders’ associations or concerted actions | Mr. Li Dongsheng, one of the top 10 shareholders, and Ningbo Jiutian Liancheng Equity Investment Partnership (Limited Partnership) became persons acting in concert by signing the Agreement on Concerted Action, holding 1,264,053,189 shares in total and becoming the largest shareholder of the Company. The Company is not aware of any affiliation or concerted action among the other aforementioned shareholders. | |||
Explanation on the top 10 ordinary shareholders participating in securities margin trading (if any) | At the end of the reporting period: 1. Mr. Li Dongsheng and his acting-in-concert party, Huizhou Investment Holding Co., Ltd., and Wuhan Optics Valley Industrial Investment Co., Ltd. did not participate in refinancing business. In addition, the Company is not aware of any other shareholder engaging in refinancing business. 2. The top 10 shareholders indicated above did not hold any stock of the Company via any margin accounts. |
(II) Total number of preferred shareholders and shareholdings of the top 10 preferred shareholders
□ Applicable ?Not applicable
Section V Other Significant Events
1. Derivative investment for hedging purposes during the reporting period
Unit: RMB'0,000
Type of contract | Beginning amount | Ending amount | Profit or Loss During the Reporting Period | Ending contractual amount as % of the Company’s ending net assets | |||
Contractual amount | Transaction limit | Contractual amount | Transaction limit | Contractual amount | Transaction limit | ||
1. Forward forex contracts | 2,062,172 | 73,441 | 3,385,069 | 129,988 | -3,892 | 23.32 | 0.90 |
2. Interest rate swaps | 384,446 | 11,533 | 148,851 | 4,466 | 1.03 | 0.03 | |
Total | 2,446,618 | 84,974 | 3,533,920 | 134,454 | -3,892 | 24.34 | 0.93 |
Accounting policies and specific accounting principles for hedging business during the Reporting Period and a description of whether there have been significant changes from those of the previous reporting period | No significant change | ||||||
Description of actual profits and losses during the Reporting Period | During the Reporting Period, profit from change in fair value of hedged items was RMB285.31 million; profit/loss arising from delivery of maturing forward exchange contracts was -RMB453.60 million; and profit/loss arising from valuation of effective forward exchange contracts was RMB129.37 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. |
2. Other Significant Events During the Reporting Period
□ Applicable ?Not Applicable
Section VI Quarterly Financial Statements
(I) Financial statements
1. Consolidated Balance Sheet
Prepared by: TCL Technology Group Corporation
Unit: RMB
Item | September 30, 2023 | January 01, 2023 |
Current assets: | ||
Monetary assets | 29,555,316,954 | 35,378,501,261 |
Settlement reserves | ||
Funds on loan | ||
Held-for-trading financial assets | 17,015,862,288 | 12,703,507,482 |
Derivative financial assets | 173,048,603 | 361,034,230 |
Notes receivable | 440,791,529 | 512,848,988 |
Accounts receivable | 25,259,972,511 | 14,051,661,462 |
Receivables financing | 1,199,510,501 | 1,103,127,764 |
Prepayments | 3,919,752,013 | 3,593,856,572 |
Premiums receivable | ||
Reinsurance accounts receivable | ||
Reinsurance contract provisions receivable | ||
Other receivables | 4,257,727,145 | 4,033,248,387 |
Of which: Interests receivable | ||
Dividends receivable | 1,226,086 | |
Financial assets purchased under sale-back agreement | ||
Inventories | 19,764,196,521 | 18,001,121,855 |
Contract assets | 221,243,875 | 315,167,085 |
Held-for-sale assets | ||
Non-current assets due within one year | ||
Other current assets | 5,998,663,756 | 5,438,935,717 |
Total current assets | 107,806,085,696 | 95,493,010,803 |
Non-current assets: | ||
Loans and advances to customers | ||
Debt investments | 528,993,993 | 741,703,137 |
Other debt investments | ||
Long-term receivables | 616,420,554 | 631,372,701 |
Long-term equity investments | 30,456,209,044 | 29,256,215,804 |
Investments in other equity instruments | 396,036,493 | 439,996,263 |
Other non-current financial assets | 4,481,682,741 | 2,928,827,232 |
Investment property | 887,185,942 | 946,449,125 |
Fixed assets | 153,896,990,033 | 132,477,671,844 |
Construction in progress | 37,572,331,212 | 52,053,833,629 |
Productive biological assets | ||
Oil and gas assets | ||
Right-of-use assets | 6,159,717,031 | 5,110,123,904 |
Intangible assets | 18,081,584,593 | 16,783,930,537 |
Development costs | 2,428,635,648 | 3,179,207,056 |
Goodwill | 10,385,265,330 | 9,161,852,161 |
Long-term deferred expenses | 3,350,854,184 | 2,744,208,125 |
Deferred income tax assets | 2,574,282,379 | 1,753,887,430 |
Other non-current assets | 9,589,757,922 | 6,293,942,917 |
Total non-current assets | 281,405,947,099 | 264,503,221,865 |
Total assets | 389,212,032,795 | 359,996,232,668 |
Current liabilities: | ||
Short-term borrowings | 10,134,151,406 | 10,215,910,963 |
Borrowings from the Central Bank | 715,606,494 | 777,676,330 |
Borrowed funds | ||
Held-for-trading financial liabilities | 764,455,192 | 861,911,768 |
Derivative financial liabilities | 218,790,559 | 70,734,905 |
Notes payable | 3,068,249,954 | 6,365,659,580 |
Accounts payable | 32,018,005,100 | 26,381,911,940 |
Advances from customers | 685,922 | 1,402,178 |
Contract liabilities | 2,507,095,482 | 2,336,008,164 |
Financial assets sold under repurchase agreements | ||
Customer deposits and deposits from other banks and financial institutions | 203,141,843 | 603,423,212 |
Funds for brokering securities transaction | ||
Funds for brokering securities underwriting | ||
Employee salaries payable | 2,610,934,481 | 2,376,932,722 |
Taxes and levies payable | 1,229,479,209 | 1,215,591,227 |
Other payables | 22,611,884,909 | 24,190,353,350 |
Of which: Interests payable | ||
Dividends payable | 55,083,448 | 40,010,329 |
Service charges and commissions payable | ||
Reinsurance accounts payable | ||
Held-for-sale liabilities | ||
Non-current liabilities due within one year | 13,262,490,063 | 10,957,320,562 |
Other current liabilities | 1,554,607,747 | 1,185,847,619 |
Total current liabilities | 90,899,578,361 | 87,540,684,520 |
Non-current liabilities: | ||
Insurance contract provisions | ||
Long-term borrowings | 130,504,280,714 | 118,603,164,839 |
Bonds payable | 9,579,298,359 | 12,006,850,805 |
Of which: Preferred shares | ||
Perpetual bonds | ||
Lease liabilities | 5,533,381,892 | 4,461,382,902 |
Long-term payables | 3,202,300,378 | 887,762,713 |
Long-term employee compensation payable | 47,304,888 | 472,538,409 |
Estimated liabilities | 114,747,324 | 97,521,975 |
Deferred income | 2,298,308,610 | 2,468,144,649 |
Deferred income tax liabilities | 1,862,112,771 | 1,319,428,442 |
Other non-current liabilities | ||
Total non-current liabilities | 153,141,734,936 | 140,316,794,734 |
Total liabilities | 244,041,313,297 | 227,857,479,254 |
Owner's equity: | ||
Capital share | 18,779,080,767 | 17,071,891,607 |
Other equity instruments | ||
Of which: Preferred shares | ||
Perpetual bonds | ||
Capital reserves | 10,945,727,155 | 12,522,792,596 |
Less: Treasury share | 1,119,036,126 | 1,314,581,308 |
Other comprehensive income | -1,094,921,020 | -811,821,600 |
Specific reserves | 2,301,029 | 2,301,029 |
Surplus reserves | 3,712,272,814 | 3,712,272,814 |
General risk reserve | 8,933,515 | 8,933,515 |
Retained earnings | 21,097,114,817 | 19,486,731,824 |
Total equity attributable to the owners of the parent company | 52,331,472,951 | 50,678,520,477 |
Non-controlling interests | 92,839,246,547 | 81,460,232,937 |
Total owner's equity | 145,170,719,498 | 132,138,753,414 | ||
Total liabilities and owner's equity | 389,212,032,795 | 359,996,232,668 | ||
Legal representative: Li Dongsheng | Person-in-charge of Financial affairs: Li Jian | Person-in-charge of the Financial Department: Jing Chunmei |
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 | 133,165,997,183 | 126,575,669,585 |
Including: operating revenue | 133,109,034,685 | 126,514,861,842 |
Interest income | 56,962,498 | 60,807,743 |
Earned premiums | ||
Service charge and commission income | ||
II. Total costs | 129,007,796,700 | 128,949,175,733 |
Of which: Operating cost | 113,643,241,301 | 114,950,650,732 |
Interest expenditures | 14,379,206 | 18,341,537 |
Service charge and commission expenditures | ||
Surrender value | ||
Net claims payment | ||
Net insurance liability provisions accrued | ||
Policy dividend expenditures | ||
Reinsurance expenses | ||
Taxes and levies | 603,630,830 | 450,506,832 |
Sales expenses | 1,831,309,694 | 1,456,590,197 |
Administrative expenses | 3,044,021,757 | 2,739,873,088 |
R&D expenses | 7,201,406,325 | 6,862,053,578 |
Financial expenses | 2,669,807,587 | 2,471,159,769 |
Including: Interest expenses | 3,731,262,986 | 3,156,169,091 |
Interest income | 857,965,962 | 574,239,059 |
Plus: Other income | 1,762,418,772 | 2,527,046,371 |
Return on investment (losses are indicated by "-") | 2,442,260,295 | 2,945,923,073 |
Of which: Share of profit or loss of joint ventures and associates | 1,205,559,646 | 2,162,708,733 |
Income from derecognition of financial assets measured at amortised costs | ||
Exchange gains (losses are indicated by "-") | -57,583 | 17,243,641 |
Gain on net exposure hedging (losses are indicated by "-") | ||
Gain on changes in fair value (losses are indicated by "-") | 372,289,148 | 174,313,519 |
Credit impairment losses (losses are indicated by "-") | -106,792,302 | -21,497,079 |
Asset impairment losses (losses are indicated by "-") | -2,432,074,536 | -2,147,817,307 |
Income from asset disposal (losses are indicated by "-") | -23,258,312 | -24,703,658 |
III. Operating profit (losses are indicated by "-") | 6,172,985,965 | 1,097,002,412 |
Plus: Non-operating income | 61,847,094 | 613,528,624 |
Less: Non-operating expenses | 158,935,459 | 97,681,058 | ||
IV. Gross profit (gross loss is indicated by "-") | 6,075,897,600 | 1,612,849,978 | ||
Less: Income tax expenses | 507,453,577 | -339,091,631 | ||
V. Net profits (net losses are indicated by "-") | 5,568,444,023 | 1,951,941,609 | ||
(I) Classification by business continuity | ||||
1. Net profits from continuing operations (net losses are indicated by "-") | 5,568,444,023 | 1,951,941,609 | ||
2. Net profits from discontinued operations (net losses are indicated by "-") | ||||
(II) Classification by ownership | ||||
1. Net profit attributable to the owners of the parent company (net loss is indicated by "-") | 1,611,411,994 | 280,664,134 | ||
2. Net profit attributable to non-controlling interests (net loss is indicated by "-") | 3,957,032,029 | 1,671,277,475 | ||
VI. Other comprehensive income, net of tax | -350,450,809 | -600,216,587 | ||
Other comprehensive income attributable to the owners of the parent company, net of tax | -283,099,420 | -657,794,348 | ||
(I) Other comprehensive income that will not be reclassified to profit or loss | -42,627,164 | -38,664,611 | ||
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 | 5,512,131 | 387,914 | ||
3. Changes in fair value of investments in other equity instruments | -48,139,295 | -39,052,525 | ||
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 | -240,472,256 | -619,129,737 | ||
1. Other comprehensive income that can be transferred to profits and losses under the equity method | 29,601,657 | 4,527,850 | ||
2. Changes in fair value of other debt investments | ||||
3. Amount of financial assets reclassified into other comprehensive income | ||||
4. Provisions for credit impairment of other debt investments | ||||
5. Reserves for cash flow hedging | -202,298,071 | -178,024,905 | ||
6. Conversion differences in foreign currency financial statements | -67,775,842 | -445,632,682 | ||
7. Others | - | |||
Other net comprehensive income attributable to minority interests, net of tax | -67,351,389 | 57,577,761 | ||
VII. Total comprehensive income | 5,217,993,214 | 1,351,725,022 | ||
(I) Total comprehensive income attributable to the owners of the parent company | 1,328,312,574 | -377,130,214 | ||
(II) Total comprehensive income attributable to minority shareholders | 3,889,680,640 | 1,728,855,236 | ||
VIII. Earnings per share: | ||||
(I) Basic earnings per share | 0.0870 | 0.0188 | ||
(II) Diluted earnings per share | 0.0858 | 0.0186 | ||
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 from the Beginning of the Year to the End of the Reporting Period
Unit: RMB
Item | Amount incurred in the current period | Amount incurred in the previous period |
I. Net cash generated from operating activities: |
Proceeds from sale of commodities and rendering of services | 101,241,792,349 | 100,750,626,818 |
Net increase of deposits from customers, banks and other financial institutions | -400,281,369 | 89,255,314 |
Net increase of borrowings from the Central Bank | -62,069,836 | -615,194,941 |
Net increase of borrowings from other financial institutions | ||
Cash received from collecting premiums for original insurance contracts | ||
Net cash received for reinsurance business | ||
Net increase of deposits and investments of policyholders | ||
Cash received from interest, service charges and commissions | 56,962,498 | 60,807,743 |
Net increase of borrowed funds from banks and other financial institutions | ||
Net increase of repurchase business funds | ||
Net cash received from brokering securities transaction | ||
Tax and levy rebates | 6,897,140,163 | 9,008,513,808 |
Cash generated from other operating activities | 6,549,758,540 | 6,499,913,125 |
Sub-total of cash generated from operating activities | 114,283,302,345 | 115,793,921,867 |
Payments for commodities and services | 77,969,681,520 | 83,453,908,540 |
Net increase of loans and advances to customers | -20,126,492 | 40,873,048 |
Net increase of deposits with the Central Bank, banks and other financial institutions | -94,966,195 | 55,082,779 |
Cash paid for claims for original insurance contracts | ||
Net increase of funds on loan | ||
Cash paid for interest, service charges and commissions | ||
Cash paid for policy dividends | ||
Cash paid to and for employees | 8,675,722,473 | 8,563,502,480 |
Taxes and levies paid | 3,042,877,731 | 2,472,457,316 |
Cash used in other operating activities | 8,566,100,295 | 8,546,209,044 |
Sub-total of cash used in operating activities | 98,139,289,332 | 103,132,033,207 |
Net cash generated from operating activities | 16,144,013,013 | 12,661,888,660 |
II. Net cash generated from investment activities: | ||
Proceeds from disinvestments | 36,407,981,056 | 36,317,483,105 |
Proceeds from return on investments | 1,443,449,707 | 1,015,752,094 |
Net proceeds from disposal of fixed assets, intangible assets and other long-term assets | 157,900,475 | 82,138,786 |
Net proceeds from disposal of subsidiaries and other business units | ||
Cash generated from other investing activities | 1,675,476,985 | 107,866,294 |
Sub-total of cash generated from investment activities | 39,684,808,223 | 37,523,240,279 |
Payments for the acquisition and construction of fixed assets, intangible assets and other long-term assets | 22,058,677,309 | 31,453,416,391 |
Payments for investments | 46,043,068,029 | 44,706,020,240 |
Net increase of pledged loans | ||
Net payments for acquiring subsidiaries and other business units | 342,527,176 | 50,133,077 |
Cash used in other investing activities | 679,513,856 | 657,451,880 |
Subtotal of cash used in investing activities | 69,123,786,370 | 76,867,021,588 |
Net cash used in investing activities | -29,438,978,147 | -39,343,781,309 |
III. Net cash generated from financing activities: | ||
Capital contributions received | 3,227,627,076 | 8,440,501,173 |
Of which: Net capital contributions by non-controlling interests to subsidiaries | 3,227,627,076 | 8,440,501,173 |
Borrowings raised | 59,814,243,560 | 73,945,824,297 |
Cash generated from other financing activities | 3,288,722,855 | 46,000,000 |
Sub-total of cash generated from financing activities | 66,330,593,491 | 82,432,325,470 |
Cash paid for debt repayment | 46,877,621,540 | 46,000,724,997 |
Cash paid for distribution of dividends and profits or the repayment of interest | 5,260,345,180 | 7,638,841,951 |
Of which: Dividends and profits distributed by subsidiaries to minority shareholders | 334,580,641 | 1,667,403,525 |
Cash used in other financing activities | 6,534,891,746 | 4,724,068,626 |
Subtotal of cash used in financing activities | 58,672,858,466 | 58,363,635,574 |
Net cash generated from financing activities | 7,657,735,025 | 24,068,689,896 |
IV. Effect of exchange rate changes on cash and cash equivalents | 72,098,972 | 616,824,475 |
V. Net increase in cash and cash equivalents | -5,565,131,137 | -1,996,378,278 |
Plus: Beginning balance of cash and cash equivalents | 33,675,624,291 | 30,081,704,864 |
VI. Ending balance of cash and cash equivalents | 28,110,493,154 | 28,085,326,586 |
(II) Adjustments to financial statement items at the beginning of the year of the firstimplementation of the new accounting standards which have been implemented since 2023
□ Applicable ?Not Applicable
(III) Auditor’s ReportWhether the Third Quarter Report has been audited or not?
□Yes ?No
The Company’s Third Quarter Report has not yet been audited.
TCL Technology Group Corporation
Board of Directors
October 27, 2023