TCL科技集团股份有限公司TCL Technology Group Corporation
First Quarter 2022 Report
April 27, 2022
Table of Contents
Section I Important Notice ...... 3
Section II Key Financial Information ...... 4
Section III Management Discussion and Analysis ...... 7
Section IV Shareholder Information ...... 10
Section V Other Important Matters ...... 12
Section VI Quarterly Financial Statements ...... 12
Section I Important NoticeThe Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,supervisors and senior management of TCL Technology Group Corporation (hereinafter referred toas the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents ofthis First Quarter 2022 Report, and shall be jointly and severally liable for any misrepresentations,misleading statements or material omissions therein.Mr. Li Dongsheng, the Chairman of the Board, Ms. Li Jian, the person-in-charge offinancial affairs (Chief Financial Officer), and Mr. Xi Wenbo, the person-in-charge of thefinancial department, hereby guarantee that the financial statements carried in this First Quarter2022 Report are factual, accurate and complete.
All the Company’s directors 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.Should there be any discrepancies or misunderstandings between the two versions, the Chineseversion shall prevail.
Section II Key Financial InformationI. Key financial information and financial indicators
Indicate whether there is any retrospectively restated datum in the table below.
√ Yes □ No
Reasons for retroactive adjustment or restatementChange of accounting policy
Q1 2022 | Q1 2021 | YoY change | ||
Before adjustment | After adjustment | After adjustment | ||
Revenue (RMB) | 40,566,851,319 | 32,143,561,563 | 32,244,933,306 | 25.81% |
Net profit attributable to the company’s shareholders (RMB) | 1,352,533,125 | 2,403,729,935 | 2,410,539,527 | -43.89% |
Net profits attributable to the company’s shareholders before non-recurring gains and losses (RMB) | 611,554,193 | 2,123,056,041 | 2,129,865,633 | -71.29% |
Net cash generated from operating activities (RMB) | 3,863,953,881 | 8,003,201,979 | 8,003,201,979 | -51.72% |
Basic earnings per share (RMB/share) | 0.1008 | 0.1781 | 0.1786 | -43.56% |
Diluted earnings per share (RMB/share) | 0.0993 | 0.1713 | 0.1718 | -42.20% |
Weighted average return on equity (%) | 3.16% | 7.07% | 7.09% | -3.93% |
March 31, 2022 | December 31, 2021 | Change | ||
Before adjustment | After adjustment | After adjustment | ||
Total assets (RMB) | 316,518,995,777 | 308,733,133,305 | 308,987,970,915 | 2.44% |
Owner’s equity attributable to the company’s shareholders (RMB) | 43,504,943,301 | 43,034,234,611 | 43,103,580,799 | 0.93% |
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 of this Report (share) | 14,030,642,421 |
Fully diluted earnings per share based on the latest total share capital above:
Fully diluted earnings per share based on the latest total share capital above (RMB/share) | 0.0964 |
II. Non-recurring profit and loss items and amount
√ Applicable □ Not applicable
Unit: RMB
Item | Amount for the current reporting period | Note |
Gains and losses on disposal of non-current assets (inclusive of impairment allowance write-offs) | -2,868,821 | Not applicable |
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) | 277,162,460 | Not applicable |
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. | -3,059,068 | Not applicable |
Non-operating income and expenses other than the above | 568,266,489 | Not applicable |
Less: Corporate income tax | 29,836,572 | Not applicable |
Non-controlling interests (net of tax) | 68,685,556 | Not applicable |
Total | 740,978,932 | -- |
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 recurring profitand loss items.
III. Changes of main accounting data and financial indicators and reasons therefor
√ Applicable □ Not applicable
Unit: RMB
Balance Sheet | Ending balance | Beginning | Increase / | Reason for change |
items | balance | decrease ratio (%) | ||
Prepayments | 3,481,851,278 | 2,306,325,116 | 51.0 | Mainly due to an expansion of production scale and an increase in prepayments |
Short-term borrowings | 14,457,812,778 | 9,341,426,543 | 54.8 | Mainly due to an increase in financing scale |
Borrowings from the Central Bank | 931,249,178 | 1,437,062,154 | -35.2 | Mainly due to a decrease in borrowings from the Central Bank by the Finance Company |
Notes payable | 5,158,493,935 | 3,275,295,915 | 57.5 | Mainly due to an increase in scale and an increase in operating notes payable |
Contract liabilities | 3,878,494,022 | 2,593,882,004 | 49.5 | Mainly due to an increase in advance receipts |
Income Statement items | January - March 2022 | January - March 2021 | Increase / decrease ratio (%) | Reason for change |
Cost of sales | 35,594,751,040 | 25,383,357,989 | 40.2 | Mainly due to the expansion of operating revenue scale and the merger of Moka |
R&D expenses | 2,042,751,101 | 1,540,240,528 | 32.6 | Mainly due to the increase of R&D investment |
Financial expenses | 991,083,508 | 740,010,321 | 33.9 | Mainly due to an increase in exchange losses |
Cash Flow Statement items | January - March 2022 | January - March 2021 | Increase / decrease ratio (%) | Reason for change |
Net cash generated from operating activities | 3,863,953,881 | 8,003,201,979 | -51.7 | Mainly due to an increase in payments for commodities and services |
Net cash generated from financing activities | 4,613,471,688 | 2,657,860,614 | 73.6 | Mainly due to the absorbing of minority shareholders' investments and the issuing of bonds |
Section III Management Discussion and AnalysisThis year, the international situation has become increasingly complicated and increasinglysevere; geopolitical conflicts have triggered an increase in commodity prices and sparked theexpectation of inflation; the spread of the pandemic has weakened downstream production andconsumption links; and the global economy is facing great challenges. Faced with business pressure,the Company adheres to the strategic policy of “Striving to Ramp Up, Catching Up and Surpassing,Pressing on Toward Global Leadership” to promote the high-quality development of the enterprise.The Company focuses on the development of core high-tech industries of semi-conductordisplays and new energy photovoltaic and semi-conductor materials, implements the businessstrategy of “Improving Business Quality and Efficiency, Strengthening Advantages and Making upfor Disadvantages, Innovation-driven Development and Accelerating Global Layout”, sticks to thebusiness bottom line of extreme cost efficiency, and strengthens risk control capabilities andadaptability. In the first quarter, the Company achieved an operating revenue of RMB40.57billion, a year-on-year increase of 25.8%; it achieved a net profit of RMB2.35 billion, ayear-on-year decrease of 27.5% but a month-on-month increase of 29.5%; its net profitattributable to shareholders of the listed company was RMB1.35 billion, a year-on-yeardecrease of 43.9% but a month-on-month increase of 41%; its R&D investment was RMB2.25billion, a year-on-year increase of 10.1%.Impacted by factors such as the weakening of downstream demand and short-term stagnation ofthe supply chain, the prosperity of the semi-conductor display industry fell to the bottom of its field,the prices of large-scale products decreased significantly compared with the same period last year,and industry profitability came under pressure. TCL CSOT continued to expand its economy ofscale, improve the business structure, and optimize the composition of products and customers,meeting business challenges with extreme management efficiency. In the first quarter of 2022, thesales area of TCL CSOT products increased by 34.7% year-on-year to 11.241 million squaremeters; it achieved an operating revenue of RMB20.04 billion from the semi-conductordisplay business, a year-on-year increase of 15.3%, and earned a net profit of RMB340 million,a year-on-year decrease of 85.8%.
In the field of large-scale products business, Factory t7 ramped up as scheduled, and the marketshare of the Company in the field of large-scale products further improved: it ranked second in theworld in terms of market share for TV panels, and the first in the world in terms of market share for8K and 120Hz high-end TV panels; it ranked first in the world in terms of market share forinteractive whiteboards, and maintained rapid growth in field of commercial displays such as digitalsigns and splicing screens; it maintained its ranking as first in the world in terms of e-sportsdisplays, and the revenue share from non-TV business increased to 24%. In the field of small andmedium-sized products business, Factory t3, the factory with the largest single production capacityof LTPSs in the world, is actively transforming its products such as notebook computers, tablets andonboard products to optimize the product portfolio; LTPS tablets ranked first in the world, notebookcomputers ranked second in the world, and revenue from LTPS business other than mobile phonebusiness reached 54%; the Factory t3 expansion project is progressing in an accelerated manner,and the overall capacity of LTPSs will achieve a scale and comprehensive competitiveness thatranks first overall; the production capacity for Phase II and Phase III of the Factory t4 productionline are under construction as scheduled, and are still facing business pressure during the ramp-upperiod, but the development of new technologies and products such as flexible OLED folding,under-screen cameras and LTPO is progressing smoothly, and the customer structure is graduallybeing optimized, laying the foundation for subsequent business improvement; Factory t9,positioned for the layout of new businesses such as medium-sized IT and onboard products, isaccelerating in its construction and is expected to achieve mass production in 2023.The business of new energy photovoltaic and semi-conductor materials continued to growrapidly, with the proportion of its performance contribution increasing significantly. Duringthe reporting period, TCL Zhonghuan achieved an operating revenue of RMB13.37 billion, ayear-on-year increase of 79.1%, and earned a net profit of RMB1.46 billion, a year-on-year increaseof 96.2%.
Benefiting from the growth of domestic distributed installed capacity and the demand foraccelerated transformation of overseas energy, there was continued demand in the new energyphotovoltaic industry; however, uncertainties such as industrial chain coordination and logisticsexacerbated business challenges due to the impact of the epidemic. The Company gives full play to
the comprehensive advantages of G12 advanced production capacity, laminated tile patent barrierand Industry 4.0 flexible manufacturing, to maintain industry leadership in advanced productioncapacity scale, technology and production efficiency, as well as continue improving market share.As of the end of the first quarter of 2022, the production capacity of single crystals had increased to95GW, of which G12 production capacity accounted for 72%, ranking first in the global market.Benefiting from the rapid growth of 5G and automotive electronics, the speed of expansion ofwafer factories has driven the strong demand for semiconductor materials. Through the dual-pathdevelopment of 'characteristic process + advanced manufacturing process', during the reportingperiod, the production capacity of 8-12 inch polished wafers and epitaxial wafers increased rapidly,the product and customer structure was upgraded rapidly, the product sales scale increased by 54%year-on-year, and the production capacity of 8-inch products reached 800,000 pieces per month,having formed a comprehensive product capacity and market competitiveness comparable withinternational first-line manufacturers, and realized the full coverage of domestic customers; theproduction capacity of 12-inch products reached 170,000 pieces per month, and acceleratedcatching up in terms of advanced process products. At present, 28nm and above series productshave entered the stage of mass production, having signed into long-term strategic cooperationagreements with a number of front-line customers at home and abroad.Looking ahead to the whole year, the world development pattern is complex and changeable,and global economic development faces great challenges. In response to the changing situation, theCompany will adhere to the spirit of “Striving to Ramp Up, Catching Up and Surpassing”, respondto the uncertainty from the surrounding environment with business certainty, and give full play tothe advantages of efficiency and technological innovation; the Company will accelerate theupgrade from being a leader in large-scale displays to being a leader in full-scale products interms of the field of semi-conductor displays, achieve global leadership in comprehensivecompetitiveness in the field of new energy photovoltaic materials, give play to industrialsynergy in the field of semiconductor materials, and build a leading global technologyindustry group.
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: share
Total number of ordinary shareholdersat the period-end | 773,077 | 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 | Restricted shares held | Shares in pledge, marked or frozen | |||
Share Status | Shares | |||||||
Li Dongsheng and his acting-in-concert party | Domestic natural person / Domestic non-state-owned legal person | 8.26 | 1,158,599,393 | 610,181,602 | Pledge | 164,338,800 | ||
Pledge | 215,000,000 | |||||||
Huizhou Investment Holding Co., Ltd. | State-owned legal person | 5.30 | 743,139,840 | 0 | ||||
Wuhan Optics Valley Industrial Investment Co., Ltd. | State-owned legal person | 3.98 | 558,552,396 | 0 | Pledge | 255,754,475 | ||
Hong Kong Securities Clearing Company Ltd. | Foreign legal person | 2.71 | 380,385,171 | 0 | ||||
China Securities Finance Corporation Limited | Domestic non-state-owned legal person | 2.66 | 373,231,553 | 0 | ||||
Tibet Tianfeng Enterprise Management Co., Ltd. | Domestic non-state-owned legal person | 1.54 | 215,582,406 | 0 | ||||
TCL Technology Group Corporation - | Fund, wealth management product, etc. | 0.81 | 113,143,154 | 0 |
2021 to 2023 Employee Stock Ownership Plan (Phase I) | ||||||
Sinatay Life Insurance Co., Ltd. - Conventional Product | Fund, wealth management product, etc. | 0.74 | 104,190,172 | 0 | ||
ICBC Credit Suisse Fund - Agricultural Bank of China - ICBC Credit Suisse China Securities Financial Asset Management Plan | Fund, wealth management product, etc. | 0.53 | 74,761,500 | 0 | ||
Southern Asset Management - Agricultural Bank of China - Southern China Securities Financial Asset Management Plan | Fund, wealth management product, etc. | 0.53 | 74,761,500 | 0 | ||
Top 10 unrestricted ordinary shareholders | ||||||
Name of Shareholder | Number of unrestricted ordinary shares held | Shares by class | ||||
Shares by class | Shares | |||||
Huizhou Investment Holding Co., Ltd. | 743,139,840 | RMB-denominated ordinary stock | 743,139,840 | |||
Wuhan Optics Valley Industrial Investment Co., Ltd. | 558,552,396 | RMB-denominated ordinary stock | 558,552,396 | |||
Li Dongsheng and his acting-in-concert party | 548,417,791 | RMB-denominated ordinary stock | 548,417,791 | |||
Hong Kong Securities Clearing Company Ltd. | 380,385,171 | RMB-denominated ordinary stock | 380,385,171 | |||
China Securities Finance Corporation Limited | 373,231,553 | RMB-denominated ordinary stock | 373,231,553 | |||
Tibet Tianfeng Enterprise Management Co., Ltd. | 215,582,406 | RMB-denominated ordinary stock | 215,582,406 |
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 | 104,190,172 | RMB-denominated ordinary stock | 104,190,172 |
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 |
Note on the above shareholders’ associations or concerted actions | Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity Investment Partnership (Limited Partnership) became persons acting in concert by signing the Agreement on Concerted Action, holding 1,158,599,393 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 123,187,314 shares through the general securities account, and holds 92,395,092 shares through the credit securities account, with a total of 215,582,406 shares actually held. | ||
Special account for share repurchases (if any) among the top 10 shareholders | The top ten shareholders of the Company include the "The Securities Account of TCL Technology Group Corporation for Repurchases". As of the end of the reporting period, there were 327,728,516 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 Statements
I. Financial statements
1. Consolidated Balance Sheet
Prepared by: TCL Technology Group Corporation
Unit: RMB
Item | March 31, 2022 | December 31, 2021 |
Current assets: | ||
Monetary assets | 28,552,470,300 | 31,393,692,485 |
Settlement reserves | ||
Funds on loan | ||
Held-for-trading financial assets | 8,069,926,732 | 7,601,255,964 |
Derivative financial assets | 322,678,427 | 70,928,566 |
Notes receivable | 727,550,494 | 776,201,686 |
Accounts receivable | 18,500,042,137 | 18,238,782,247 |
Receivables financing | 2,490,926,634 | 2,217,638,736 |
Prepayments | 3,481,851,278 | 2,306,325,116 |
Premiums receivable | ||
Reinsurance accounts receivable | ||
Reinsurance contract provisions receivable | ||
Other receivables | 5,061,976,198 | 4,458,621,235 |
Of which: Interests receivable | - | - |
Dividends receivable | - | - |
Financial assets purchased under sale-back agreement | - | - |
Inventories | 15,655,222,396 | 14,083,356,918 |
Contract assets | 251,695,386 | 233,528,786 |
Held-for-sale assets | - | - |
Non-current assets maturing within one year | - | - |
Other current assets | 6,067,310,872 | 5,802,960,362 |
Total current assets | 89,181,650,854 | 87,183,292,101 |
Non-current assets: | ||
Loans and advances to customers | - | - |
Debt investments | 20,005,392 | - |
Other debt investments | - | - |
Long-term receivables | 636,980,360 | 651,117,971 |
Long-term equity investments | 26,312,482,901 | 25,640,578,245 |
Investments in other equity instruments | 907,425,159 | 927,319,447 |
Other non-current financial assets | 2,544,518,385 | 2,704,037,825 |
Investment property | 887,658,397 | 761,902,236 |
Fixed assets | 113,933,544,407 | 113,579,297,130 |
Construction in progress | 38,973,986,371 | 36,965,885,393 |
Productive biological assets | ||
Oil and gas assets | ||
Right-of-use assets | 2,279,108,039 | 2,426,911,208 |
Intangible assets | 15,053,564,730 | 13,982,647,108 |
Development costs | 2,531,852,461 | 2,508,418,669 |
Goodwill | 9,158,841,295 | 9,158,841,295 |
Long-term deferred expenses | 2,639,976,273 | 2,640,530,156 |
Deferred income tax assets | 2,186,797,451 | 2,153,345,865 |
Other non-current assets | 9,270,603,302 | 7,449,008,656 |
Total non-current assets | 227,337,344,923 | 221,549,841,204 |
Total assets | 316,518,995,777 | 308,733,133,305 |
Current liabilities: | ||
Short-term borrowings | 14,457,812,778 | 9,341,426,543 |
Borrowings from the Central Bank | 931,249,178 | 1,437,062,154 |
Borrowed funds | 490,296,314 | - |
Held-for-trading financial liabilities | 1,107,531,562 | 925,035,483 |
Derivative financial liabilities | 150,126,418 | 22,204,824 |
Notes payable | 5,158,493,935 | 3,275,295,915 |
Accounts payable | 22,333,315,646 | 24,297,859,803 |
Advances from customers | 4,720,742 | 5,794,242 |
Contract liabilities | 3,878,494,022 | 2,593,882,004 |
Financial assets sold under repurchase agreements | - | - |
Customer deposits and deposits from other banks and financial institutions | 1,245,502,887 | 666,056,133 |
Funds for brokering securities transaction | ||
Funds for brokering securities underwriting | ||
Employee compensation payable | 2,694,460,641 | 3,311,933,217 |
Taxes and levies payable | 1,074,816,975 | 1,238,849,334 |
Other payables | 19,002,048,259 | 19,386,888,623 |
Of which: Interests payable | - | - |
Dividends payable | 1,258,937,007 | 34,607,012 |
Service charges and commissions payable | ||
Reinsurance accounts payable | ||
Held-for-sale liabilities | - | - |
Current portion of non-current liabilities due within a one-year period | 14,965,660,824 | 13,006,764,842 |
Other current liabilities | 1,335,041,800 | 1,269,886,904 |
Total current liabilities | 88,829,571,981 | 80,778,940,021 |
Non-current liabilities: | ||
Insurance contract provisions | ||
Long-term borrowings | 86,196,079,447 | 87,279,081,955 |
Bonds payable | 12,057,598,825 | 13,066,281,402 |
Of which: Preferred stocks | ||
Perpetual bonds | ||
Lease liabilities | 1,084,941,574 | 1,102,071,813 |
Long-term payables | 649,802,775 | 671,344,466 |
Long-term employee compensation payable | 686,643,663 | 669,931,395 |
Estimated liabilities | ||
Deferred income | 2,397,904,434 | 2,361,205,043 |
Deferred income tax liabilities | 3,097,626,266 | 3,158,985,929 |
Other non-current liabilities | - | - |
Total non-current liabilities | 106,170,596,984 | 108,308,902,003 |
Total liabilities | 195,000,168,965 | 189,087,842,024 |
Owner's equity: | ||
Share capital | 14,030,642,421 | 14,030,642,421 |
Other equity instruments | 200,334,057 | 200,334,057 |
Of which: Preferred stocks | ||
Perpetual bonds | ||
Capital reserves | 5,238,082,152 | 6,079,267,240 |
Less: Treasury stock | 2,054,946,580 | 1,885,556,526 |
Other comprehensive income | -351,078,842 | -409,447,681 |
Specific reserves | 2,584,804 | 1,549,125 |
Surplus reserves | 2,550,172,644 | 2,550,172,644 |
General risk reserve | 8,933,515 | 8,933,515 |
Retained earnings | 23,880,219,130 | 22,458,339,816 |
Total equity attributable to the owners of the parent company | 43,504,943,301 | 43,034,234,611 |
Non-controlling interests | 78,013,883,511 | 76,611,056,670 |
Total owner's equity | 121,518,826,812 | 119,645,291,281 |
Total liabilities and owner's equity | 316,518,995,777 | 308,733,133,305 |
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Li JianPerson-in-charge of the financial department: Xi Wenbo
2. Consolidated Income Statement
Unit: RMB
Item | Amount incurred in the current period | Amount incurred in the previous period |
1. Total revenue | 40,597,535,003 | 32,173,945,858 |
Of which: Revenue | 40,566,851,319 | 32,143,561,563 |
Interest income | 30,683,684 | 30,384,295 |
Earned premiums | ||
Service charge and commission income | - | |
II. Total costs | 40,004,606,380 | 28,868,451,833 |
Of which: Cost of sales | 35,594,751,040 | 25,383,357,989 |
Interest expenditures | 9,336,013 | 4,754,960 |
Service charge and commission expenditures | - | |
Surrender value | ||
Net claims payment | ||
Net insurance liability provisions accrued | ||
Policy dividend expenditures | ||
Reinsurance expenses | ||
Taxes and levies | 137,883,718 | 106,853,638 |
Selling expenses | 471,927,285 | 330,230,062 |
Administrative expense | 756,873,715 | 763,004,335 |
R&D expenses | 2,042,751,101 | 1,540,240,528 |
Financial expenses | 991,083,508 | 740,010,321 |
Including: Interest expenses | 999,858,819 | 966,852,847 |
Interest income | 176,470,746 | 103,593,808 |
Plus: Other income | 976,625,863 | 343,452,869 |
Return on investment (losses are indicated by "-") | 661,221,895 | 493,372,758 |
Including: Share of profit or loss of joint ventures and associates | 804,480,527 | 149,003,152 |
Income from derecognition of financial assets measured at amortised costs | ||
Exchange gains (losses are indicated by "-") | 14,068,652 | -14,384 |
Gain on net exposure hedging (losses are indicated by "-") | - | - |
Gain on changes in fair value (losses are indicated by "-") | -136,683,550 | -292,943,771 |
Credit impairment losses (losses are indicated by "-") | 5,829,571 | -31,736,912 |
Asset impairment losses (losses are indicated by "-") | -246,385,486 | -301,118,508 |
Income from asset disposal (losses are indicated by "-") | -4,567,331 | 159,503 |
III. Operating profit (losses are indicated by "-") | 1,863,038,237 | 3,516,665,580 |
Plus: Non-operating income | 581,485,774 | 210,942,953 |
Less: Non-operating expenses | 8,873,689 | 4,694,406 |
IV. Gross profits (total losses are indicated by "-") | 2,435,650,322 | 3,722,914,127 |
Less: Income tax expenses | 89,681,571 | 487,257,128 |
V. Net profits (net losses are indicated by "-") | 2,345,968,751 | 3,235,656,999 |
(1) Classification by business continuity | ||
1. Net profits from continuing operations (net losses are indicated by "-") | 2,345,968,751 | 3,235,656,999 |
2. Net profits from discontinued operations (net losses are indicated by "-") | - | - |
(2) Classification by ownership | ||
1. Net profits attributable to the owners of the parent company | 1,352,533,125 | 2,403,729,935 |
2. Net profit attributable to non-controlling interests | 993,435,626 | 831,927,064 |
VI. Other comprehensive income, net of tax | 107,592,545 | -180,087,886 |
Other comprehensive income attributable to the owners of the parent company, net of tax | 58,368,839 | -151,737,311 |
(1) Other comprehensive income that will not be reclassified to profit or loss | -18,244,588 | -65,621,285 |
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 | - | - |
3. Changes in fair value of other equity instrument investments | -18,244,588 | -65,621,285 |
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 | 76,613,427 | -86,116,026 |
1. Other comprehensive income that can be transferred to profits and losses under the equity method | 129,581 | 11,868 |
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 | 27,994,488 | -75,069,636 |
6. Conversion differences in foreign currency financial statements | 48,489,358 | -11,058,258 |
7. Others | - | |
Other net comprehensive income attributable to minority interests, net of tax | 49,223,706 | -28,350,575 |
VII. Total comprehensive income | 2,453,561,296 | 3,055,569,113 |
Total comprehensive income attributable to the owners of the parent company | 1,410,901,964 | 2,251,992,624 |
Total comprehensive income attributable to | 1,042,659,332 | 803,576,489 |
non-controlling interests | ||
VIII. Earnings per share: | ||
(1) Basic earnings per share | 0.1008 | 0.1781 |
(2) Diluted earnings per share | 0.0993 | 0.1713 |
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Li JianPerson-in-charge of the financial department: Xi Wenbo
3. Consolidated Cash Flow Statement
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 | 32,479,892,087 | 27,034,723,608 |
Net increase of deposits from customers and banks and other financial institutions | 579,446,754 | 733,511,000 |
Net increase of borrowings from the Central Bank | -505,812,976 | 198,608,011 |
Net increase in loans from other financial institutions | 490,296,314 | |
Cash received from collecting premiums for original insurance contracts | ||
Net cash received for reinsurance business | ||
Net increase of deposits and investments of policyholders | ||
Interest, fees and commissions received | 30,683,684 | 30,384,295 |
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 | 1,801,281,700 | 1,394,337,857 |
Cash generated from other operating activities | 1,752,565,605 | 1,171,334,830 |
Sub-total of cash generated from operating activities | 36,628,353,168 | 30,562,899,601 |
Payments for commodities and services | 25,746,314,393 | 17,145,704,624 |
Net increase of loans and advances to customers | -291,363,670 | 1,013,946,603 |
Net increase of deposits with the Central Bank, | 202,991,230 | 68,720,062 |
banks and other financial institutions | ||
Cash paid for claims for original insurance contracts | ||
Net increase of funds on loan | ||
Cash paid for interest, service charges and commissions | ||
Cash paid for policy dividends | ||
Cash paid to and for employees | 3,158,375,360 | 2,018,238,456 |
Taxes and levies paid | 806,447,479 | 582,590,307 |
Cash used in other operating activities | 3,141,634,495 | 1,730,497,570 |
Sub-total of cash used in operating activities | 32,764,399,287 | 22,559,697,622 |
Net cash generated from operating activities | 3,863,953,881 | 8,003,201,979 |
II. Cash flow generated from investing activities: | ||
Proceeds from disinvestments | 9,653,344,653 | 6,373,430,027 |
Proceeds from return on investments | 239,383,580 | 125,899,457 |
Net proceeds from disposal of fixed assets, intangible assets and other long-term assets | 3,422,583 | 18,531,879 |
Net proceeds from disposal of subsidiaries and other business units | ||
Cash generated from other investing activities | 50,123,919 | 6,368,912 |
Sub-total of cash generated from investment activities | 9,946,274,735 | 6,524,230,275 |
Payments for the acquisition and construction of fixed assets, intangible assets and other long-term assets | 10,941,138,741 | 7,543,249,643 |
Payments for investments | 11,495,911,476 | 9,287,433,997 |
Net increase of pledged loans | ||
Net payments for acquiring subsidiaries and other business units | ||
Cash used in other investing activities | 100,914,607 | 50,133,413 |
Subtotal of cash used in investing activities | 22,537,964,824 | 16,880,817,053 |
Net cash used in investing activities | -12,591,690,089 | -10,356,586,778 |
III. Cash flow generated from financing activities: | ||
Capital contributions received | 2,571,180,000 | 94,900,000 |
Including: Capital contributions by non-controlling interests to subsidiaries | 2,571,180,000 | 94,900,000 |
Borrowings raised | 18,821,994,041 | 16,219,912,408 |
Cash generated from other financing activities | 151,949,228 | |
Sub-total of cash generated from financing activities | 21,393,174,041 | 16,466,761,636 |
Cash paid for debt repayment | 13,689,241,447 | 10,706,121,604 |
Cash paid for distribution of dividends and profits or payment of interests | 1,111,330,624 | 1,209,556,374 |
Including: Dividends paid by subsidiaries to non-controlling interests | 19,790,027 | 23,055,560 |
Cash used in other financing activities | 1,979,130,282 | 1,893,223,044 |
Subtotal of cash used in financing activities | 16,779,702,353 | 13,808,901,022 |
Net cash generated from financing activities | 4,613,471,688 | 2,657,860,614 |
IV. Effect of exchange rate changes on cash and cash equivalents | -27,326,776 | 57,381,895 |
V. Net increase of cash and cash equivalents | -4,141,591,296 | 361,857,710 |
Plus: Beginning balance of cash and cash equivalents | 30,081,704,864 | 18,208,416,780 |
VI. Closing balance of cash and cash equivalents | 25,940,113,568 | 18,570,274,490 |
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Li JianPerson-in-charge of the financial department: Xi Wenbo
II. Notes on adjustments in the financial statements
On December 31, 2021, the Ministry of Finance issued the Notice on the Issuance of ‘Interpretation of Accounting Standardsfor Business Enterprises No. 15’ (CK [2021] No. 35) (hereinafter referred to as “Interpretation No. 15”), which defines theaccounting handling of the external sales of products or by-products produced before the fixed assets reach the expected serviceablestate or during the R&D process. In accordance with the requirements of Interpretation No. 15, the company has adopted newaccounting standards as of January 1, 2022, and retroactively adjusted the profit and loss realized from the external sales of trialproducts produced in previous periods. The impact of the adoption of the new standards on relevant items is as follows.
1. Adjustments to the beginning balances of the relevant items of the financial statements due to the adoption of the newAccounting Standards initially implemented beginning in 2022
Consolidated Balance Sheet
Unit: RMB
Item | December 31, 2021 | January 1, 2022 | Amount of adjustment |
Current assets: | |||
Monetary assets | 31,393,692,485 | 31,393,692,485 | |
Settlement reserves |
Funds on loan | |||
Held-for-trading financial assets | 7,601,255,964 | 7,601,255,964 | |
Derivative financial assets | 70,928,566 | 70,928,566 | |
Notes receivable | 776,201,686 | 776,201,686 | |
Accounts receivable | 18,238,782,247 | 18,238,782,247 | |
Receivables financing | 2,217,638,736 | 2,217,638,736 | |
Prepayments | 2,306,325,116 | 2,306,325,116 | |
Premiums receivable | |||
Reinsurance accounts receivable | |||
Reinsurance contract provisions receivable | |||
Other receivables | 4,458,621,235 | 4,458,621,235 | |
Of which: Interests receivable | |||
Dividends receivable | |||
Financial assets purchased under sale-back agreement | |||
Inventories | 14,083,356,918 | 14,083,356,918 | |
Contract assets | 233,528,786 | 233,528,786 | |
Held-for-sale assets | |||
Non-current assets maturing within one year | |||
Other current assets | 5,802,960,362 | 5,802,960,362 | |
Total current assets | 87,183,292,101 | 87,183,292,101 | - |
Non-current assets: | |||
Loans and advances to customers | |||
Debt investments | |||
Other debt investments | |||
Long-term receivables | 651,117,971 | 651,117,971 | |
Long-term equity investments | 25,640,578,245 | 25,640,578,245 | |
Investments in other equity instruments | 927,319,447 | 927,319,447 | |
Other non-current financial assets | 2,704,037,825 | 2,704,037,825 | |
Investment property | 761,902,236 | 761,902,236 |
Fixed assets | 113,579,297,130 | 113,723,758,876 | 144,461,746 |
Construction in progress | 36,965,885,393 | 37,029,504,222 | 63,618,829 |
Productive biological assets | |||
Oil and gas assets | |||
Right-of-use assets | 2,426,911,208 | 2,426,911,208 | |
Intangible assets | 13,982,647,108 | 14,000,546,363 | 17,899,255 |
Development costs | 2,508,418,669 | 2,540,199,289 | 31,780,620 |
Goodwill | 9,158,841,295 | 9,158,841,295 | |
Long-term deferred expenses | 2,640,530,156 | 2,640,530,156 | |
Deferred income tax assets | 2,153,345,865 | 2,150,423,025 | -2,922,840 |
Other non-current assets | 7,449,008,656 | 7,449,008,656 | |
Total non-current assets | 221,549,841,204 | 221,804,678,814 | 254,837,610 |
Total assets | 308,733,133,305 | 308,987,970,915 | 254,837,610 |
Current liabilities: | |||
Short-term borrowings | 9,341,426,543 | 9,341,426,543 | |
Borrowings from the Central Bank | 1,437,062,154 | 1,437,062,154 | |
Borrowed funds | |||
Held-for-trading financial liabilities | 925,035,483 | 925,035,483 | |
Derivative financial liabilities | 22,204,824 | 22,204,824 | |
Notes payable | 3,275,295,915 | 3,275,295,915 | |
Accounts payable | 24,297,859,803 | 24,297,859,803 | |
Advances from customers | 5,794,242 | 5,794,242 | |
Contract liabilities | 2,593,882,004 | 2,593,882,004 | |
Financial assets sold under repurchase agreements | |||
Customer deposits and deposits from other banks and financial institutions | 666,056,133 | 666,056,133 | |
Funds for brokering securities transaction | |||
Funds for brokering securities underwriting | |||
Employee compensation payable | 3,311,933,217 | 3,311,933,217 | |
Taxes and levies payable | 1,238,849,334 | 1,238,849,334 |
Other payables | 19,386,888,623 | 19,386,888,623 | |
Of which: Interests payable | |||
Dividends payable | 34,607,012 | 34,607,012 | |
Service charges and commissions payable | |||
Reinsurance accounts payable | |||
Held-for-sale liabilities | |||
Current portion of non-current liabilities due within a one-year period | 13,006,764,842 | 13,006,764,842 | |
Other current liabilities | 1,269,886,904 | 1,269,886,904 | |
Total current liabilities | 80,778,940,021 | 80,778,940,021 | - |
Non-current liabilities: | |||
Insurance contract provisions | - | ||
Long-term borrowings | 87,279,081,955 | 87,279,081,955 | |
Bonds payable | 13,066,281,402 | 13,066,281,402 | |
Of which: Preferred stocks | |||
Perpetual bonds | |||
Lease liabilities | 1,102,071,813 | 1,102,071,813 | |
Long-term payables | 671,344,466 | 671,344,466 | |
Long-term employee compensation payable | 669,931,395 | 669,931,395 | |
Estimated liabilities | |||
Deferred income | 2,361,205,043 | 2,361,205,043 | |
Deferred income tax liabilities | 3,158,985,929 | 3,158,985,929 | |
Other non-current liabilities | |||
Total non-current liabilities | 108,308,902,003 | 108,308,902,003 | - |
Total liabilities | 189,087,842,024 | 189,087,842,024 | - |
Owner's equity: | |||
Share capital | 14,030,642,421 | 14,030,642,421 | |
Other equity instruments | 200,334,057 | 200,334,057 | |
Of which: Preferred stocks | |||
Perpetual bonds | |||
Capital reserves | 6,079,267,240 | 6,079,267,240 | |
Less: Treasury stock | 1,885,556,526 | 1,885,556,526 |
Other comprehensive income | -409,447,681 | -409,447,681 | |
Specific reserves | 1,549,125 | 1,549,125 | |
Surplus reserves | 2,550,172,644 | 2,550,172,644 | |
General risk reserve | 8,933,515 | 8,933,515 | |
Retained earnings | 22,458,339,816 | 22,527,686,004 | 69,346,188 |
Total equity attributable to the owners of the parent company | 43,034,234,611 | 43,103,580,799 | 69,346,188 |
Non-controlling interests | 76,611,056,670 | 76,796,548,092 | 185,491,422 |
Total owner's equity | 119,645,291,281 | 119,900,128,891 | 254,837,610 |
Total liabilities and owner's equity | 308,733,133,305 | 308,987,970,915 | 254,837,610 |
2. Notes on retrospective adjustments to the previous comparative data due to adoption of the new Accounting Standardsinitially implemented beginning in 2022
Consolidated Income Statement
Unit: RMB
Item | Amount incurred in the previous period before adjustment | Amount incurred in the previous period after adjustment | Amount of adjustment |
1. Total revenue | 32,173,945,858 | 32,275,317,601 | 101,371,743 |
Of which: Revenue | 32,143,561,563 | 32,244,933,306 | 101,371,743 |
Interest income | 30,384,295 | 30,384,295 | |
Earned premiums | |||
Service charge and commission income | |||
II. Total costs | 28,868,451,833 | 28,950,337,978 | 81,886,145 |
Of which: Cost of sales | 25,383,357,989 | 25,462,422,453 | 79,064,464 |
Interest expenditures | 4,754,960 | 4,754,960 | |
Service charge and commission expenditures | |||
Surrender value | |||
Net claims payment | |||
Net insurance liability provisions accrued | |||
Policy dividend expenditures | |||
Reinsurance expenses | |||
Taxes and levies | 106,853,638 | 106,853,638 | |
Selling expenses | 330,230,062 | 330,230,062 | |
Administrative expense | 763,004,335 | 763,004,335 |
R&D expenses | 1,540,240,528 | 1,543,062,209 | 2,821,681 |
Financial expenses | 740,010,321 | 740,010,321 | |
Including: Interest expenses | 966,852,847 | 966,852,847 | |
Interest income | 103,593,808 | 103,593,808 | |
Plus: Other income | 343,452,869 | 343,452,869 | |
Return on investment (losses are indicated by "-") | 493,372,758 | 493,372,758 | |
Including: Share of profit or loss of joint ventures and associates | 149,003,152 | 149,003,152 | |
Income from derecognition of financial assets measured at amortised costs | |||
Exchange gains (losses are indicated by "-") | -14,384 | -14,384 | |
Gain on net exposure hedging (losses are indicated by "-") | - | ||
Gain on changes in fair value (losses are indicated by "-") | -292,943,771 | -292,943,771 | |
Credit impairment losses (losses are indicated by "-") | -31,736,912 | -31,736,912 | |
Asset impairment losses (losses are indicated by "-") | -301,118,508 | -301,118,508 | |
Income from asset disposal (losses are indicated by "-") | 159,503 | 159,503 | |
III. Operating profit (losses are indicated by "-") | 3,516,665,580 | 3,536,151,178 | 19,485,598 |
Plus: Non-operating income | 210,942,953 | 210,942,953 | |
Less: Non-operating expenses | 4,694,406 | 4,694,406 | |
IV. Gross profits (total losses are indicated by "-") | 3,722,914,127 | 3,742,399,725 | 19,485,598 |
Less: Income tax expenses | 487,257,128 | 490,179,967 | 2,922,839 |
V. Net profits (net losses are indicated by "-") | 3,235,656,999 | 3,252,219,758 | 16,562,759 |
(1) Classification by business continuity | |||
1. Net profits from continuing operations (net losses are indicated by "-") | 3,235,656,999 | 3,252,219,758 | 16,562,759 |
2. Net profits from discontinued operations (net losses are indicated by "-") | - | - | |
(2) Classification by ownership | |||
1. Net profits attributable to the owners of the parent company | 2,403,729,935 | 2,410,539,527 | 6,809,592 |
2. Net profit attributable to non-controlling | 831,927,064 | 841,680,231 | 9,753,167 |
interests | |||
VI. Other comprehensive income, net of tax | -180,087,886 | -180,087,886 | - |
Other comprehensive income attributable to the owners of the parent company, net of tax | -151,737,311 | -151,737,311 | |
(1) Other comprehensive income that will not be reclassified to profit or loss | -65,621,285 | -65,621,285 | - |
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 | - | ||
3. Changes in fair value of other equity instrument investments | -65,621,285 | -65,621,285 | |
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 | -86,116,026 | -86,116,026 | - |
1. Other comprehensive income that can be transferred to profits and losses under the equity method | 11,868 | 11,868 | |
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 | -75,069,636 | -75,069,636 | |
6. Conversion differences in foreign currency financial statements | -11,058,258 | -11,058,258 | |
7. Others | - | ||
Other net comprehensive income attributable to minority interests, net of tax | -28,350,575 | -28,350,575 | |
VII. Total comprehensive income | 3,055,569,113 | 3,072,131,872 | 16,562,759 |
Total comprehensive income attributable to the owners of the parent company | 2,251,992,624 | 2,258,802,216 | 6,809,592 |
Total comprehensive income attributable to non-controlling interests | 803,576,489 | 813,329,656 | 9,753,167 |
VIII. Earnings per share: | |||
(1) Basic earnings per share | 0.1781 | 0.1786 | |
(2) Diluted earnings per share | 0.1713 | 0.1718 |
III. Auditor’s reportWhether the First Quarter 2022 Report has been audited or not?
□ Yes √ No
The Company’s First Quarter 2022 Report has not yet been audited.
TCL Technology Group Corporation
Board of DirectorsApril 27, 2022