Stock Code: 000100 Stock Abbr.: TCL TECH. Announcement No.: 2023-031
TCL科技集团股份有限公司TCL Technology Group Corporation
First Quarter 2023 Report
April 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 Mr. Peng Pan, the person-in-charge of the financial department,hereby guarantee that the financial statements carried in this Report are factual, accurate and complete.All the Company’s directors attended the board meeting for the review of this Report.The future plans, development strategies or other forward-looking statements mentioned in thisReport shall NOT be considered as promises of the Company to investors. Therefore, investors arekindly reminded to pay attention to possible investment risks.This Report has not been audited. This Report has been prepared in both Chinese and English.Should there be any discrepancies or misunderstandings between the two versions, the Chineseversion shall prevail.
Definitions
| Term | Refers to | Definition |
| Company, the Company, group | Refers to | TCL Technology Group Corporation |
| The “Reporting Period”, “current period” | Refers to | The period from January 1, 2023 to March 31, 2023. |
| TCL CSOT | Refers to | TCL China Star Optoelectronics Technology Co., Ltd. |
| TCL Zhonghuan | 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) |
| GW | Refers to | Gigawatt, power unit for solar cells, 1GW = 1,000 megawatts |
| G12 | Refers to | 12-inch ultra-large DW-cut solar monocrystalline silicon square wafer, size: 44,096mm?, diagonal line: 295mm, side length: 210mm, with its size 80.5% larger than the conventional M2 |
| RMB | Refers to | Renminbi |
Section II Key Financial InformationI. Key accounting data and financial indicatorsIndicate whether there is any retrospectively adjusted or restated datum in the table below
□ Yes ? No
| Q1 2023 | Q1 2022 | Change (%) | |
| Revenue (RMB) | 39,443,242,439 | 40,566,851,319 | -2.77% |
| Net profit attributable to the company’s shareholders (RMB) | -548,999,154 | 1,352,533,125 | -140.59% |
| Net profits attributable to the company’s shareholders before non-recurring gains and losses (RMB) | -729,931,586 | 611,554,193 | -219.36% |
| Net cash generated from operating activities (RMB) | 4,495,356,538 | 3,863,953,881 | 16.34% |
| Basic earnings per share (RMB/share) | -0.0326 | 0.1008 | -132.34% |
| Diluted earnings per share (RMB/share) | -0.0322 | 0.0993 | -132.43% |
| Weighted average return on equity (%) | -1.09% | 3.16% | -4.25% |
| At the end of the reporting period | December 31, 2022 | Change (%) | |
| Total assets (RMB) | 379,396,714,372 | 359,996,232,668 | 5.39% |
| Owner’s equity attributable to the company’s shareholders (RMB) | 49,663,049,661 | 50,678,520,477 | -2.00% |
The total share capital at the end of the last trading session before the disclosure of this Report:
| The total share capital at the end of the last trading session before the disclosure of this Report: (share) | 17,071,891,607 |
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) | -0.0322 |
II. Non-recurring profit and loss items and amounts
?Applicable □ Not applicable
Unit: RMB
| Item | Amount in the reporting period |
| Gains and losses on disposal of non-current assets (inclusive of impairment allowance write-offs) | 10,833,557 |
| 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) | 341,941,846 |
| 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. | 38,869,586 |
| Non-operating income and expenses other than the above | 2,962,918 |
| Less: Corporate income tax | 68,908,196 |
| Non-controlling interests (net of tax) | 144,767,279 |
| Total | 180,932,432 |
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 listed in the Explanatory Announcement No. 1 on Information Disclosure for CompaniesOffering Their Securities to the Public—Non-Recurring Gain/Loss defined as 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 and
loss 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 |
| Receivables financing | 3,502,980,188 | 1,103,127,764 | 217.5 | Mainly due to the increase in bank acceptances held by the Company |
| Other non-current financial assets | 6,897,248,599 | 2,928,827,232 | 135.5 | Mainly due to the increase in investments in equity instruments |
| Deferred income tax assets | 2,333,080,519 | 1,753,887,430 | 33.0 | Mainly due to the increase in deductible losses for the period |
| Non-current liabilities due within one year | 7,594,431,650 | 10,957,320,562 | -30.7 | Mainly due to the repayment of maturing liabilities |
| Long-term payables | 1,533,196,765 | 887,762,713 | 72.7 | Mainly due to the expansion in consolidation scope |
| Deferred income | 3,809,748,717 | 2,468,144,649 | 54.4 | Mainly due to the receipt of government subsidies |
| Deferred income tax liabilities | 1,811,280,797 | 1,319,428,442 | 37.3 | Due the business combinations under non-common control during the period |
| Income Statement items | January-March, 2023 | January-March, 2022 | Increase / decrease ratio (%) | Reason for change |
| Other income | 531,668,577 | 976,625,863 | -45.6 | Mainly due to the decrease in amortization of government subsidies |
| Gain on changes in fair value (loss is indicated by “-”) | 151,543,005 | -136,683,550 | 210.9 | Mainly due to the increase in change in fair value of financial assets |
| Asset impairment loss (loss is indicated by “-”) | -338,223,994 | -246,385,486 | 37.3 | Mainly due to provisions made for the diminution in value of inventory led by market price fluctuation |
| Cash Flow Statement items | January-March, 2023 | January-March, 2022 | Increase / decrease ratio (%) | Reason for change |
| Net cash used in investing activities | -5,200,472,661 | -12,591,690,089 | -58.7 | Mainly due to the increase in recovery of investments |
Section III Management Discussion and Analysis
The global political and economic situation remains both complicated and challenging thus farthis year. With developed economies still experiencing inflation pressure, overseas economy growthis expected to slow down, while China's economy has generally shown sound momentum. In the faceof a complicated and volatile external business environment, the Company continues to maintain itsstrategic position with a focus on developing semiconductor displays, new energy photovoltaic andsemiconductor materials along with other related semiconductor industries. On the basis of itsoperating strategy of “enhancing the quality and efficiency of operations, playing to strengths whilstshoring up weaknesses, accelerating global strategic development and driving development withinnovation”, the Company continues to improve its comparative competitiveness, strengthen riskcontrol and maintain robust operations.During the reporting period, the Company registered revenue of RMB39.44 billion, representinga decline of 2.8% year-on-year; net profit of RMB110 million; net profit attributable to shareholdersof the listed company of -RMB550 million; and a net operating cash flow of RMB4.5 billion. TheCompany's declines in performance are mainly due to the following reasons: the average price ofmainstream semiconductor display products was significantly lower than that during the same periodof last year, and industry profit margins hit cyclical lows, which resulted in the performance of thesemiconductor display business dropping significantly year-on-year. However, the Company hasmanaged to stabilize performance compared with the fourth quarter of last year, gradually improvingprofitability in step with the continuously rising price of major products since the end of the firstquarter. During the reporting period, return on investment was significantly reduced in comparisonwith that of the previous year due to the impact of project exit and revenue recognition. In terms ofnew energy photovoltaic and semiconductor materials business, the Company continues to cement itsleadership positioning through advantages in products and technologies, registering rapid growth inrevenue and performance.
Semiconductor display business
During the first quarter, the semiconductor industry, as a whole, experienced seasonal lows, butthe supply-demand relationship tended to be sound, with the price of mainstream panels rebounding.
Emphasizing cost efficiency in its operations, the Company continued to optimize its business andproduct structure, driving the operational improvement of semiconductor display business, andexpedited the strategic shift from large-sized displays to full-sized displays. During the reportingperiod, the Company’s semiconductor display business realized revenue of RMB15.12 billion,recording a year-on-year decline of 24.5%; TCL CSOT sold 11,323,000 sq.m of display panels, up
0.7% year-on-year.
In the field of large-sized displays, TCL CSOT sustained its premium products strategy toconsolidate its leading position in TV panels. By market share, the Company secured its top 2 positionin TV panels, of which it ranked No.1 in both 55-inch and 75-inch products, and top 2 in 65-inchproducts, while being a top-tier player in commercial displays. The Company consistently took thelead in trends related to large-sized displays in the industry, and more than 45% of the shipment areaof TV products are above 65-inch. The Company has enhanced the competitiveness of its mid-sizedproducts, and delivered products to IT brands through its t9 production line; during the reportingperiod, the Company ranked No.1 in MNT e-sports displays and No.2 in LTPS tablets and LTPSlaptops by global market share, while maintaining the rapid development of vehicle-mounted devicebusiness. In terms of small-sized products, TCL COST focused on differential technologies andpushed ahead with product structure upgrading. The Company jumped to the second place amongLTPS mobile phones by global market share, supplying flexible LTPO OLED products for a numberof high-end models launched by various brands.With a surging global digital economy, the Company is optimistic about the development andindustrial value of semiconductor displays as the key information carrier and major interactiveinterface. The Matthew effect has further optimized the industry, top-tier enterprises have constantlyenhanced their economies of scale, laying a solid foundation for future long-term and healthydevelopment. Along with the steady price rebound of mainstream products, led by TV panels, theindustry mid-range ROE is expected to be restored, and the Company’s semiconductor displaybusiness will also gradually experience operational improvements.
New energy photovoltaic and semiconductor materials businessIn the first quarter, the photovoltaic industry increasingly improved its upstream materials supply.The Company’s large-sized silicon wafers were in short supply, catalyzing the high-speed
development of new energy photovoltaic materials. During the reporting period, TCL Zhonghuanrecorded revenue of RMB17.62 billion, represented an increase of 31.8% year-on-year, and net profitof RMB2.46 billion, up 69.2% year-on-year.TCL Zhonghuan seized the initiative for future development, fortified its competitive advantagethrough its "G12 + Shingled PV" dual technology platform, and increased its capacity for advancedmanufacturing with a stabilized and strengthened supply chain, continuously improved its productcompetitiveness as well as the scale of production and sales. At the end of the reporting period, theCompany's total monocrystalline silicon capacity was up to 150GW, with the production utilizationrate climbing sharply month-over-month. The Company consolidated its leading position in theglobal market share of photovoltaic silicon wafers and N-type wafers, and consistently developedlarge-sized, flake-oriented and N-type technologies for photovoltaic materials. Using metrics such asconsumption rate of silicone materials per crystalline unit, monthly output per furnace, wafer outputper kg and other indicators, the Company has managed to maintain an industry leadership positionwith the remarkable cost and market advantages of G12 strategic products. Upholding the concept ofdifferentiated development, the Company has built an intelligent plant for 25GW N-type TOPCONbatteries, working to integrate the advanced technologies of photovoltaic materials, imbricationcomponents and N-type TOPCON batteries, so as to enhance synergistic effects along the industrialchain and strengthen the comprehensive competitiveness of new energy photovoltaic business.With the aim of cementing a leadership position in new energy photovoltaic products, theCompany will continue to focus on the development of photovoltaic materials, building adifferentiated business ecosystem for batteries and components, and deepen the industry 4.0 systemand the application of flexible manufacturing.
Looking ahead to the year, the Company’s semiconductor display business is expected to seeimproved operational performance aided by balanced supply and demand throughout the industry.Driven by the high-speed development of the industry and TCL Zhonghuan’s competitive edges, thenew energy photovoltaic business will maintain its high-quality development, making contributionsto the steady growth of the Company. Through both internal development and M&As of thesemiconductor materials business, the Company will develop into a leader in semiconductor siliconwafer production within China.With a focus on a wide range of semiconductor businesses, including semiconductor displays,
new energy photovoltaic and semiconductor materials, the Company will continue to seizeopportunities arising from the technical and manufacturing transformation of China and global energyrestructuring, so as to build its core competitive strength based on product and technology innovation,giving full play to the advantages of lean management and economies of scale, leading to itsaccelerated development into a leading international tech industry group.
Section IV Shareholder InformationI. 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 | 677,632 | Total number of preferred shareholders with resumed voting rights by the end of the reporting period (if any) | - | |||
| Shareholdings of top 10 shareholders of ordinary shares | ||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage (%) | Number of shares held at the period-end | Number of restricted ordinary shares held | Shares in pledge, marked or frozen | |
| Status | Shares | |||||
| Li Dongsheng and his acting-in-concert party | Domestic individual/Domestic general legal entity | 6.79% | 1,159,085,019 | 610,545,822 | Put in pledge by Li Dongsheng | 143,665,800 |
| Put in pledge by Jiutian Liancheng | 280,052,495 | |||||
| Hong Kong Securities Clearing Company Ltd. | Foreign legal entity | 4.52% | 771,411,684 | |||
| Huizhou Investment Holding Co., Ltd. and its acting-in-concert party | State-owned legal entity | 4.23% | 722,144,427 | |||
| China Securities Finance Corporation Limited | Domestic general legal entity | 2.19% | 373,231,553 | |||
| CITIC Securities Co., Ltd. | State-owned legal entity | 1.75% | 298,947,808 | 280,701,754 | ||
| Wuhan Optics Valley Industrial Investment Co., Ltd. | State-owned legal entity | 1.63% | 277,932,396 | |||
| Guotai Junan Securities Co., Ltd. | State-owned legal entity | 1.38% | 235,511,984 | 228,070,175 | ||
| UBS AG | Foreign legal entity | 1.27% | 217,197,549 | 196,783,625 | ||
| Everbright Securities Company Limited | State-owned legal entity | 1.24% | 212,006,577 | 204,678,362 | ||
| GF Securities Co., Ltd. | Domestic general legal entity | 1.11% | 190,079,302 | 187,134,502 | ||
| Shareholdings of top 10 non-restricted ordinary shareholders | ||||||
| Name of shareholder | Number of non-restricted ordinary shares held at the end of reporting period | Type of shares | ||||
| Type | Shares | |||||
| Hong Kong Securities Clearing Company Ltd. | 771,411,684 | RMB-denominated ordinary shares | 771,411,684 | |||
| Huizhou Investment Holding Co., Ltd. and its acting-in-concert party | 722,144,427 | RMB-denominated ordinary shares | 722,144,427 | |||
| Li Dongsheng and his acting-in-concert party | 548,539,197 | RMB-denominated ordinary shares | 548,539,197 | |||
| China Securities Finance Corporation Limited | 373,231,553 | RMB-denominated ordinary shares | 373,231,553 | |
| Wuhan Optics Valley Industrial Investment Co., Ltd. | 277,932,396 | RMB-denominated ordinary shares | 277,932,396 | |
| Goldman Sachs International - Self-owned funds | 137,149,490 | RMB-denominated ordinary shares | 137,149,490 | |
| TCL Technology Group Corporation - 2021 to 2023 Employee Stock Ownership Plan (Phase I) | 113,143,154 | RMB-denominated ordinary shares | 113,143,154 | |
| TCL Technology Group Corporation - 2021 to 2023 Employee Stock Ownership Plan (Phase II) | 106,484,364 | RMB-denominated ordinary shares | 106,484,364 | |
| Sinatay Life Insurance Co., Ltd. - Conventional Product | 104,190,172 | RMB-denominated ordinary shares | 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 shares | 74,761,500 | |
| Explanation 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 1,159,085,019 shares in total and becoming the largest shareholder of the Company. Huizhou Investment Development Co., Ltd., and Huizhou Investment Holding Co., Ltd. constitute persons acting in concert based on the ownership relationship. | |||
| Explanation on the top 10 ordinary shareholders participating in securities margin trading (if any) | As at the end of the Reporting Period, a shareholder of the Company, i.e., Huizhou Investment Holding Co., Ltd. and its person acting in concert, i.e., Huizhou Investment Development Co., Ltd., decreased the number of shares by 66,500,000 shares due to their participation in the refinancing business; the shareholder Wuhan Optical Valley Industrial Investment Co., Ltd. decreased the number of shares by 280,620,000 shares due to its participation in the refinancing business. | |||
II. Total number of preferred shareholders and shareholdings of the top 10 preferred shareholders
□ Applicable ?Not applicable
Section V Other Significant Events?Applicable □ Not applicable
1. Derivative investment for hedging purposes during the reporting period
Unit: RMB'0,000
| Type of contract | Beginning amount | Ending amount | Gain/loss in 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 | 2,539,419 | 97,032 | -3,066 | 18.41% | 0.70% |
| 2. Interest rate swaps | 384,446 | 11,533 | 373,303 | 11,199 | 2.71% | 0.08% | |
| Total | 2,446,618 | 84,974 | 2,912,722 | 108,231 | -3,066 | 21.11% | 0.78% |
| 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 RMB58.25 million; profit from settlement of maturing forward exchange contracts was RMB34.02 million; and profit arising from valuation of effective forward exchange contracts was -RMB122.93 million. | ||||||
| Description of the hedging effect | During the Reporting Period, the Company's main foreign exchange risk exposures include exposures of assets and liabilities denominated in foreign currencies arising from business such as outbound sales, raw material procurement and financing. The uncertain risks arising from the exchange rate fluctuations were effectively hedged by derivative contracts with the same purchase amounts and maturities in opposite directions. | ||||||
2. Other material matters during the reporting period
| Title of announcement | Date of disclosure | Website for disclosure |
| Announcement on the Exhaustion of Proceeds from IPOs and the Deregistration of Special Funding Accounts | January 10, 2023 | www.cninfo.com.cn |
| Announcement on Capital Increase and Additional Share Issuance of Subsidiary Zhonghuan Advanced Semiconductor Materials Co., Ltd. and the Acquisition of Xinxin Semiconductor Technology Co., Ltd. | January 20, 2023 |
Section VI Quarterly Financial Statements
I. Financial statements
1. Consolidated Balance Sheet
Prepared by: TCL Technology Group Corporation
Unit: RMB
| Item | Ending balance | Beginning balance |
| Current assets: | ||
| Monetary assets | 38,048,025,406 | 35,378,501,261 |
| Settlement reserves | - | - |
| Funds on loan | - | - |
| Held-for-trading financial assets | 10,246,426,895 | 12,703,507,482 |
| Derivative financial assets | 251,359,134 | 361,034,230 |
| Notes receivable | 514,711,416 | 512,848,988 |
| Accounts receivable | 15,727,488,133 | 14,051,661,462 |
| Receivables financing | 3,502,980,188 | 1,103,127,764 |
| Prepayments | 3,573,085,834 | 3,593,856,572 |
| Premiums receivable | - | - |
| Reinsurance accounts receivable | - | - |
| Reinsurance contract provisions receivable | - | - |
| Other receivables | 3,178,673,010 | 4,033,248,387 |
| Of which: Interests receivable | - | - |
| Dividends receivable | 216,000,000 | 1,226,086 |
| Financial assets purchased under sale-back agreement | - | - |
| Inventories | 18,668,473,927 | 18,001,121,855 |
| Contract assets | 330,463,809 | 315,167,085 |
| Held-for-sale assets | - | - |
| Non-current assets due within one year | - | - |
| Other current assets | 6,521,842,373 | 5,438,935,717 |
| Total current assets | 100,563,530,125 | 95,493,010,803 |
| Non-current assets: | ||
| Loans and advances to customers | - | - |
| Debt investments | 848,232,539 | 741,703,137 |
| Other debt investments | - | - |
| Long-term receivables | 626,912,691 | 631,372,701 |
| Long-term equity investments | 28,442,902,804 | 29,256,215,804 |
| Investments in other equity instruments | 419,510,042 | 439,996,263 |
| Other non-current financial assets | 6,897,248,599 | 2,928,827,232 |
| Investment property | 1,010,441,283 | 946,449,125 |
| Fixed assets | 144,919,311,705 | 132,477,671,844 |
| Construction in progress | 46,302,522,741 | 52,053,833,629 |
| Productive biological assets | - | - |
| Oil and gas assets | - | - |
| Right-of-use assets | 5,437,319,261 | 5,110,123,904 |
| Intangible assets | 17,868,534,073 | 16,783,930,537 |
| Development costs | 2,493,497,183 | 3,179,207,056 |
| Goodwill | 10,341,857,559 | 9,161,852,161 |
| Long-term deferred expenses | 3,078,161,896 | 2,744,208,125 |
| Deferred income tax assets | 2,333,080,519 | 1,753,887,430 |
| Other non-current assets | 7,813,651,352 | 6,293,942,917 |
| Total non-current assets | 278,833,184,247 | 264,503,221,865 |
| Total assets | 379,396,714,372 | 359,996,232,668 |
| Current liabilities: |
| Short-term borrowings | 10,494,805,699 | 10,215,910,963 |
| Borrowings from the Central Bank | 911,820,354 | 777,676,330 |
| Borrowed funds | 500,112,500 | - |
| Held-for-trading financial liabilities | 684,837,401 | 861,911,768 |
| Derivative financial liabilities | 74,642,812 | 70,734,905 |
| Notes payable | 7,907,085,234 | 6,365,659,580 |
| Accounts payable | 26,790,963,084 | 26,381,911,940 |
| Advances from customers | 660,363 | 1,402,178 |
| Contract liabilities | 2,586,278,480 | 2,336,008,164 |
| Financial assets sold under repurchase agreements | - | - |
| Customer deposits and deposits from other banks and financial institutions | 188,428,347 | 603,423,212 |
| Funds for brokering securities transaction | - | - |
| Funds for brokering securities underwriting | - | - |
| Remunerations payable | 2,658,656,331 | 2,376,932,722 |
| Taxes and levies payable | 1,230,369,499 | 1,215,591,227 |
| Other payables | 23,671,698,141 | 24,190,353,350 |
| Of which: Interests payable | - | - |
| Dividends payable | 40,010,315 | 40,010,329 |
| Service charges and commissions payable | - | - |
| Reinsurance accounts payable | - | - |
| Held-for-sale liabilities | - | - |
| Non-current liabilities due within one year | 7,594,431,650 | 10,957,320,562 |
| Other current liabilities | 1,315,322,728 | 1,185,847,619 |
| Total current liabilities | 86,610,112,623 | 87,540,684,520 |
| Non-current liabilities: | ||
| Insurance contract provisions | - | - |
| Long-term borrowings | 128,772,688,397 | 118,603,164,839 |
| Bonds payable | 13,478,276,808 | 12,006,850,805 |
| Of which: Preferred shares | - | - |
| Perpetual bonds | - | - |
| Lease liabilities | 4,839,131,901 | 4,461,382,902 |
| Long-term payables | 1,533,196,765 | 887,762,713 |
| Long-term employee compensation payable | 482,150,813 | 472,538,409 |
| Estimated liabilities | 100,856,119 | 97,521,975 |
| Deferred income | 3,809,748,717 | 2,468,144,649 |
| Deferred income tax liabilities | 1,811,280,797 | 1,319,428,442 |
| Other non-current liabilities | - | - |
| Total non-current liabilities | 154,827,330,317 | 140,316,794,734 |
| Total liabilities | 241,437,442,940 | 227,857,479,254 |
| Owner's equity: | ||
| Capital share | 17,071,891,607 | 17,071,891,607 |
| Other equity instruments | - | - |
| Of which: Preferred shares | - | - |
| Perpetual bonds | - | - |
| Capital reserves | 12,006,084,762 | 12,522,792,596 |
| Less: Treasury share | 1,314,581,308 | 1,314,581,308 |
| Other comprehensive income | -763,814,827 | -811,821,600 |
| Specific reserves | 4,530,430 | 2,301,029 |
| Surplus reserves | 3,712,272,814 | 3,712,272,814 |
| General risk reserve | 8,933,515 | 8,933,515 |
| Retained earnings | 18,937,732,668 | 19,486,731,824 |
| Total equity attributable to the owners of the parent company | 49,663,049,661 | 50,678,520,477 |
| Non-controlling interests | 88,296,221,771 | 81,460,232,937 |
| Total owner's equity | 137,959,271,432 | 132,138,753,414 |
| Total liabilities and owner's equity | 379,396,714,372 | 359,996,232,668 |
| Legal representative: Li Dongsheng | Person-in-charge of Financial affairs: Li Jian | Person-in-charge of the Accounting Department: Peng Pan |
2. Consolidated Income Statement
Unit: RMB
| Item | Amount incurred in the current period | Amount incurred in the previous period |
| I. Total revenue | 39,465,731,391 | 40,597,535,003 |
| Of which: Operating revenue | 39,443,242,439 | 40,566,851,319 |
| Interest income | 22,488,952 | 30,683,684 |
| Earned premiums | - | - |
| Service charge and commission income | - | - |
| II. Total costs | 40,491,139,667 | 40,004,606,380 |
| Of which: Operating cost | 35,357,669,407 | 35,594,751,040 |
| Interest expenditures | 5,205,619 | 9,336,013 |
| Service charge and commission expenditures | - | - |
| Surrender value | - | - |
| Net claims payment | - | - |
| Net insurance liability provisions accrued | - | - |
| Policy dividend expenditures | - | - |
| Reinsurance expenses | - | - |
| Taxes and levies | 171,412,685 | 137,883,718 |
| Sales expenses | 520,726,236 | 471,927,285 |
| Administrative expenses | 937,229,625 | 756,873,715 |
| R&D expenses | 2,593,998,005 | 2,042,751,101 |
| Financial expenses | 904,898,090 | 991,083,508 |
| Including: Interest expenses | 1,145,570,837 | 999,858,819 |
| Interest income | 213,027,337 | 176,470,746 |
| Plus: Other income | 531,668,577 | 976,625,863 |
| Return on investment (losses are indicated by "-") | 765,964,042 | 661,221,895 |
| Of which: Share of profit or loss of joint ventures and associates | 633,769,440 | 804,480,527 |
| Income from derecognition of financial assets measured at amortised costs | - | - |
| Exchange gains (losses are indicated by "-") | -2,828,841 | 14,068,652 |
| Gain on net exposure hedging (losses are indicated by "-") | - | - |
| Gain on changes in fair value (losses are indicated by "-") | 151,543,005 | -136,683,550 |
| Credit impairment losses (losses are indicated by "-") | -23,968,551 | 5,829,571 |
| Asset impairment losses (losses are indicated by "-") | -338,223,994 | -246,385,486 |
| Income from asset disposal (losses are indicated by "-") | -15,124,996 | -4,567,331 |
| III. Operating profit (loss is indicated by “-”) | 43,620,966 | 1,863,038,237 |
| Plus: Non-operating income | 10,152,922 | 581,485,774 |
| Less: Non-operating expenses | 3,266,785 | 8,873,689 | ||
| IV. Gross profit (gross loss is indicated by “-”) | 50,507,103 | 2,435,650,322 | ||
| Less: Income tax expenses | -60,849,759 | 89,681,571 | ||
| V. Net profits (net losses are indicated by "-") | 111,356,862 | 2,345,968,751 | ||
| (1) Classification by business continuity | ||||
| 1. Net profits from continuing operations (net losses are indicated by "-") | 111,356,862 | 2,345,968,751 | ||
| 2. Net profits from discontinued operations (net losses are indicated by "-") | - | - | ||
| (2) Classification by ownership | ||||
| 1. Net profit attributable to owners of the parent company | -548,999,154 | 1,352,533,125 | ||
| 2. Net profit attributable to non-controlling interests | 660,356,016 | 993,435,626 | ||
| VI. Other comprehensive income, net of tax | 25,847,967 | 107,592,545 | ||
| Other comprehensive income attributable to the owners of the parent company, net of tax | 48,006,773 | 58,368,839 | ||
| (1) Other comprehensive income that will not be reclassified to profit or loss | -19,294,731 | -18,244,588 | ||
| 1. Changes arising from remeasurement of defined benefit plans | - | - | ||
| 2. Other comprehensive income that cannot be subsequently reclassified into profits and losses under the equity method | 682,618 | - | ||
| 3. Changes in fair value of investments in other equity instruments | -19,977,349 | -18,244,588 | ||
| 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 losses | 67,301,504 | 76,613,427 | ||
| 1. Other comprehensive income that can be transferred to profits and losses under the equity method | -670,638 | 129,581 | ||
| 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 | 32,625,420 | 27,994,488 | ||
| 6. Conversion differences in foreign currency financial statements | 35,346,722 | 48,489,358 | ||
| 7. Others | - | - | ||
| Other net comprehensive income attributable to minority interests, net of tax | -22,158,806 | 49,223,706 | ||
| VII. Total comprehensive income | 137,204,829 | 2,453,561,296 | ||
| Total comprehensive income attributable to the shareholders of the parent company | -500,992,380 | 1,410,901,964 | ||
| Total comprehensive income attributable to non-controlling interests | 638,197,209 | 1,042,659,332 | ||
| VIII. Earnings per share: | ||||
| (1) Basic earnings per share | -0.0326 | 0.1008 | ||
| (2) Diluted earnings per share | -0.0322 | 0.0993 | ||
| Legal representative: Li Dongsheng | Person-in-charge of Financial affairs: Li Jian | Person-in-charge of the Accounting Department: Peng Pan | ||
3. Consolidated Cash Flow Statement
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 | 28,874,162,646 | 32,479,892,087 |
| Net increase of deposits from customers, banks and other financial institutions | -414,994,865 | 579,446,754 |
| Net increase of borrowings from the Central Bank | 134,144,024 | -505,812,976 |
| Net increase of borrowings from other financial institutions | 500,112,500 | 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 | - | - |
| Cash received from interest, service charges and commissions | 22,488,952 | 30,683,684 |
| 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 | 1,661,519,549 | 1,801,281,700 |
| Cash generated from other operating activities | 3,130,400,647 | 1,752,565,605 |
| Sub-total of cash generated from operating activities | 33,907,833,453 | 36,628,353,168 |
| Payments for commodities and services | 23,587,210,982 | 25,746,314,393 |
| Net increase of loans and advances to customers | -558,602,998 | -291,363,670 |
| Net increase of deposits with the Central Bank, banks and other financial institutions | 105,682,459 | 202,991,230 |
| 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 | 2,733,093,133 | 3,158,375,360 |
| Taxes and levies paid | 915,275,257 | 806,447,479 |
| Cash used in other operating activities | 2,629,818,082 | 3,141,634,495 |
| Sub-total of cash used in operating activities | 29,412,476,915 | 32,764,399,287 |
| Net cash generated from operating activities | 4,495,356,538 | 3,863,953,881 |
| II. Net cash used in investing activities: | ||
| Proceeds from disinvestments | 15,215,716,206 | 9,653,344,653 |
| Proceeds from return on investments | 380,580,542 | 239,383,580 |
| Net proceeds from disposal of fixed assets, intangible assets and other long-term assets | 38,716,274 | 3,422,583 |
| Net proceeds from disposal of subsidiaries and other business units | - | - |
| Cash generated from other investing activities | 1,451,281,370 | 50,123,919 |
| Sub-total of cash generated from investment activities | 17,086,294,392 | 9,946,274,735 |
| Payments for the acquisition and construction of fixed assets, intangible assets and other long-term assets | 8,748,893,383 | 10,941,138,741 |
| Payments for investments | 13,350,111,306 | 11,495,911,476 |
| Net increase of pledged loans | - | - | ||
| Net payments for acquiring subsidiaries and other business units | - | - | ||
| Cash used in other investing activities | 187,762,364 | 100,914,607 | ||
| Subtotal of cash used in investing activities | 22,286,767,053 | 22,537,964,824 | ||
| Net cash used in investing activities | -5,200,472,661 | -12,591,690,089 | ||
| III. Net cash generated from financing activities: | ||||
| Capital contributions received | 15,215,716,206 | 2,571,180,000 | ||
| Of which: Capital contributions by non-controlling interests to subsidiaries | 380,580,542 | 2,571,180,000 | ||
| Borrowings raised | 38,716,274 | 18,821,994,041 | ||
| Cash generated from other financing activities | - | - | ||
| Sub-total of cash generated from financing activities | 1,451,281,370 | 21,393,174,041 | ||
| Cash paid for debt repayment | 17,086,294,392 | 13,689,241,447 | ||
| Cash paid for distribution of dividends and profits or the repayment of interest | 8,748,893,383 | 1,111,330,624 | ||
| Of which: Dividends and profits distributed by subsidiaries to minority shareholders | 13,350,111,306 | 19,790,027 | ||
| Cash used in other financing activities | 4,287,733,637 | 1,979,130,282 | ||
| Subtotal of cash used in financing activities | 24,109,212,434 | 16,779,702,353 | ||
| Net cash generated from financing activities | 3,261,004,745 | 4,613,471,688 | ||
| IV. Effect of exchange rate changes on cash and cash equivalents | -124,222,607 | -27,326,776 | ||
| V. Net increase in cash and cash equivalents | 2,431,666,015 | -4,141,591,296 | ||
| Plus: Beginning balance of cash and cash equivalents | 33,675,624,291 | 30,081,704,864 | ||
| VI. Ending balance of cash and cash equivalents | 36,107,290,306 | 25,940,113,568 | ||
| Legal representative: Li Dongsheng | Person-in-charge of Financial affairs: Li Jian | Person-in-charge of the Accounting Department: Peng Pan | ||
II. Auditor’s report
Whether the First Quarter Report has been audited or not?
□ Yes ? No
TCL Technology Group Corporation
Board of Directors
April 27, 2023