TCL Technology Group Corporation Annual Report 2021
TCL 科技集团股份有限公司
TCL Technology Group Corporation
ANNUAL REPORT 2021
April 27, 2022
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TCL Technology Group Corporation Annual Report 2021
Bucking up, Speeding up and Stepping up to a New Level
ANNUAL REPORT 2021 Chairman's Statement
In 2021, the Group recorded a revenue of RMB163.54 billion, up by 113.3% year-on-year; a
net profit of RMB14.96 billion, up by 195.3% year-on-year, a net profit attributable to the
company’s shareholders of RMB10.06 billion, up by 129.2% year-on-year; the net cash flow
generated from operating activities of RMB32.9 billion, up by 97% year-on-year; and a debt/asset
ratio of 61.2%, down by 3.8 percentage points. As stated above, the financial status remains stable,
various operating indicators significantly improved, relative competitive advantages were
strengthened obviously, and the Group took great steps towards becoming a global leader.
Excellent business performance depends on continuous corporate transformation, with a focus
on the main business, enhancing relative competitiveness and speeding up the development of core
industries. TCL CSOT achieved an operating revenue of RMB88.1 billion, a year-on-year increase
of 88.4%, and a net profit of RMB10.65 billion, a year-on-year increase of 339.6%. TCL
Zhonghuan achieved an operating revenue of RMB41.1 billion, a year-on-year increase of 115.7%,
and a net profit of RMB4.44 billion, a year-on-year increase of 200.6%. Other businesses under the
Group maintained stable growth.
The Group's development strategy focuses on the pan-semiconductor industry, aiming at
becoming a global leader or industry leader, continuously enhancing core competence and steadily
advancing various businesses. TCL CSOT will consolidate the competitiveness of large-sized LCD
business, maintain high efficiency, optimize the production line and product structure, and
accelerate the development of medium-sized t9 project. TCL CSOT has established a relative
competitive advantage in LTPS business and is investing in expanding LTPS production capacity
(Wuhan t5 project). TCL CSOT will strive to become the most competitive enterprise in the field of
semiconductor displayby enhancing the competitiveness of its t4 OLED production line and
developing the next generation of new display technology.
TCL Zhonghuan new energy photovoltaic business has established industry-leading
competitiveness in the field of crystals and wafers. With the production of Yinchuan Crystal Plant, it
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TCL Technology Group Corporation Annual Report 2021
will further enhance its competitive advantage. The Company will improve its industrial chain
layout, proactively expand global business, and make every effort to become a leader in the global
photovoltaic new energy industry.
Zhonghuan Advanced has made considerable progress in its semiconductor materials business.
While consolidating its competitive advantage of original products, it has rapidly improved the
competitiveness of 12-inch products and strives to become an industry leader in China.
The Group will firmly push ahead with its development strategy for the pan-semiconductor
industry and actively support the development of various industries.
The year 2022 will see a turbulent international situation. Risky events occur constantly,
posing a great impact on the global economy. The Group should be prepared for various risks with
worst-case scenario thinking.
The semiconductor display market has entered a downside circle since last September. In the
face of a pessimistic situation affected by economic slowdown and weak market demand, TCL
CSOT is under pressure. Moka Technology, acquired by the Group last year, is expected to maintain
stable business growth this year and contribute to profit growth, which will play a positive role in
the semiconductor display business. Benefiting from the global energy conservation and carbon
reduction policy, the new energy photovoltaic business ushers in a historic opportunity. TCL
Zhonghuan will accelerate the development of its new energy photovoltaic business. Zhonghuan
Advanced’s semiconductor materials business will seize the opportunity brought by the
development of China's integrated circuit industry. TCL Zhonghuan’s business is expected to
continue to grow robustly this year.
Facing the uncertainty of the global economy, the Group will firmly promote its global leading
development strategy, consolidate its basic capacity and actively expand the global operation. In the
meantime, the Group will prudently assess the project investments, manage operations risks,
maintain financial stability, and achieve development against the trend.
The Company has always been dedicated to returning high value to its shareholders. The
Board of Directors has proposed a final dividend of RMB1.5 per 10 shares to share the value of
corporate growth with shareholders.
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TCL Technology Group Corporation Annual Report 2021
I would like to express my sincere gratitude for the trust of all our shareholders, for the support
from all our partners and users, as well as for the efforts of all employees!
April 27, 2022
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TCL Technology Group Corporation Annual Report 2021
Part I Important Notes, Table of Contents and Definitions
The 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 to
as the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents of
this Report and its summary, 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 of financial
affairs (Chief Financial Officer), and Mr. Xi Wenbo, 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 and its
summary.
The future plans, development strategies or other forward-looking statements mentioned in this
Report and its summary shall NOT be considered as promises of the Company to investors.
Therefore, investors are kindly reminded to pay attention to possible investment risks.
The Board has approved a final dividend plan for the ordinary shareholders as follows: based
on the share capital of 13,666,683,905 shares on April 27, 2022 that are eligible for profit
distribution (the total share capital of 14,030,642,421 shares minus the 363,958,516 shares in the
Company’s special securities account for repurchase that are not eligible for profit distribution), a
cash dividend of RMB1.5 (tax inclusive) per 10 shares is to be distributed to the shareholders,
totaling RMB2,050,002,585.75. The retained earnings of RMB5,971,326,768.25 will carry forward
for future distribution. Where any changes occur, before the implementation of the dividend plan, to
the share capital of the Company due to any convertible bonds-to-stock programs, share repurchases,
exercises of equity incentives, new share issues in refinancing, etc., the dividend will be adjusted
according to the principle of “adjusting the total payout amount under the same dividend ratio”,
subject to the actual payout amount.
This Report and its summary has been prepared in both Chinese and English. Should there be
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TCL Technology Group Corporation Annual Report 2021
any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
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TCL Technology Group Corporation Annual Report 2021
Table of Contents
Part I Important Notes, Table of Contents and Definitions.......................................... 5
Part II Corporate Information and Key Financial Information .................................. 11
Part III Management Discussion and Analysis.......................................................... 16
Part IV Corporate Governance ................................................................................. 55
Part V Environmental and Social Responsibility ...................................................... 82
Part VI Significant Events ........................................................................................ 92
Part VII Share Changes and Shareholder Information ............................................ 114
Part VIII Bonds ...................................................................................................... 124
Part IX Financial Statements .................................................................................. 133
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TCL Technology Group Corporation Annual Report 2021
Documents Available for Reference
(I) The financial statements signed and stamped by the Company’s legal
representative, the Chief Financial Officer and person-in-charge of the financial
department.
(II) The original of the auditor’s report with the seal of the accounting firm, and
signed and stamped by CPAs.
(III) The originals of all company documents and announcements that were
disclosed to the public during the Reporting Period.
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TCL Technology Group Corporation Annual Report 2021
Definitions
Term Definition
The “Company”, the “Group”，“TCL”，“TCL TCL Technology Group Corporation
TECH.” or “we”
The “Reporting Period”, “current period” The period from January 1, 2021 to December 31, 2021.
TCL CSOT TCL China Star Optoelectronics Technology Co., Ltd.
Tianjin Zhonghuan Electronics Group Co., Ltd., which changed its name to TCL
Zhonghuan Electronics
TECHNOLOGY GROUP(TIANJIN) CO., LTD. in March 2022.
Tianjin Zhonghuan Semiconductor Co., Ltd., a majority-owned subsidiary of the
TCL Zhonghuan
Company listed on the Shenzhen Stock Exchange (stock code: 002129.SZ)
Tianjin Printronics Circuit Corporation, a majority-owned subsidiary of the
TPC
Company listed on the Shenzhen Stock Exchange (stock code: 002134.SZ)
Wuhan CSOT Wuhan China Star Optoelectronics Technology Co., Ltd.
Guangdong Juhua Guangdong Juhua Printed Display Technology Co., Ltd.
Highly Information Industry Co., Ltd., a majority-owned subsidiary of the
Highly Company listed on the National Equities Exchange and Quotations (stock code:
835281)
China Display Optoelectronics Technology Holdings Limited, a majority-owned
CDOT subsidiary of the Company listed on the Hong Kong Stock Exchange (stock code:
00334.HK)
Moka Technology Moka International Limited
712 Tianjin 712 Communication & Broadcasting Co., Ltd., (stock code: 603712.SH)
t1 The generation 8.5 (or G8.5) TFT-LCD production line of TCL CSOT
The generation 8.5 (or G8.5) TFT-LCD (including oxide semiconductor)
t2
production line of TCL CSOT
t3 The generation 6 (or G6) LTPS-LCD panel production line of TCL CSOT
The generation 6 (or G6) flexible LTPS-AMOLED panel production line of TCL
t4
CSOT
Expanding the production line for generation 6 (or G6) semiconductor new
t5
display at Wuhan CSOT
t6 The generation 11 (or G11) new TFT-LCD display production line of TCL CSOT
The generation 11 (or G11) new ultra-high-definition (UHD) TFT-LCD and
t7
AMOLED production line of TCL CSOT
The generation 8.6 (or G8.6) new oxide semiconductor production line of
t9
Guangzhou CSOT
The generation 8.5 (or G8.5) TFT-LCD production line of Suzhou China Star
t10
Optoelectronics Technology Co., Ltd.
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TCL Technology Group Corporation Annual Report 2021
GW Gigawatt, power unit for solar cells, 1GW = 1,000 megawatts
12-inch ultra-large DW-cut solar monocrystalline silicon square wafer, size:
G12 44,096mm diagonal line: 295mm, side length: 210mm, with its size 80.5%
larger than the conventional M2
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TCL Technology Group Corporation Annual Report 2021
Part II Corporate Information and Key Financial Information
I. Corporate Information
Stock name TCL TECH. Stock code 000100
Place of listing Shenzhen Stock Exchange
Company name in Chinese TCL 科技集团股份有限公司
Abbr. TCL 科技
Company name in English (if
TCL Technology Group Corporation
any)
Abbr. (if any) TCL TECH.
Legal representative Li Dongsheng
TCL Tech Building, 17 Huifeng Third Road, Zhongkai Hi-Tech Development District, Huizhou
Place of registration
City, Guangdong Province
Zip code 516001
TCL Tech Building, 17 Huifeng Third Road, Zhongkai Hi-Tech Development District, Huizhou
Office address
City, Guangdong Province
Zip code 516001
Company website https://www.tcltech.com/
Email address ir@tcl.com
“Top 60 brands under 2021 Chinese Corporate Citizenship 520”
“2021 CSR CHINA TOP 100 of CSR Award”
“Top 10 Private Enterprises under 2021 Chinese CSR Development Index”
Company honors
"Four-star CSR in electronic information industry in 2020-2021”
“The Best Practice Case of Board Office issued by CHINA ASSOCIATION FOR PUBLIC
COMPANIES”
II Contact Information
Board Secretary
Name Liao Qian
10/F, Tower G1, International E Town, TCL Science Park, 1001 Nanshan District, Shenzhen,
Office address
Guangdong Province, China
Tel. 0755-3331 1666
Email address ir@tcl.com
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TCL Technology Group Corporation Annual Report 2021
III. Media for Information Disclosure and Place Where This Report is Lodged
Stock exchange website for publication of this Report http://www.szse.cn
Media name and website for publication of this Securities Times, China Securities Journal, Shanghai Securities News and
Report Securities Daily, as well as http://www.cninfo.com.cn
Place where this Report is lodged Office of the Board of TCL Technology Group Corporation
IV. Changes to Company Registered Information
Unified social credit code 91441300195971850Y
1. In 2019, the Company focused on semi-conductor display devices by sold
smart terminal businesses such as consumer electronics and household
appliances and related supporting businesses.
Changes in main business activities of the Company
2. In 2020, the Company acquired 100% equity of Tianjin Zhonghuan
since going public (if any)
Electronics through public delisting, shaping a business structure that
focused on semi-conductor display, new energy photovoltaic and
semi-conductor materials.
Changes of controlling shareholder since
Not applicable
incorporation (if any)
V. Other information
The independent audit firm hired by the Company:
Name Da Hua Certified Public Accountants (Special General Partnership)
Office address Room 1101, Building 7, No. 16 Xi Si Huan Zhong Road, Haidian District, Beijing
Accountants writing signatures Qiu Junzhou and Jiang Xianmin
The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period
□ Applicable √ Not applicable
The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
√ Applicable □ Not applicable
Name Office address Representative Period of supervision
CITIC Securities Tower, No. 8
Liu Jian, Wu Huiyu, The period from October 17, 2020 to
CITIC Securities Co., Ltd. Zhongxin 3rd Road, Futian
Fei Shaozhen December 31, 2021.
District, Shenzhen, China
VI. Key Financial Information
Indicate whether there is any retrospectively restated datum in the table below.
□ Yes √ No
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TCL Technology Group Corporation Annual Report 2021
2021 2020 2021-Over-2020 Change 2019
Revenue (RMB) 163,540,559,623 76,677,238,079 113.28% 74,933,085,688
Net profit attributable to the
10,057,443,528 4,388,159,018 129.20% 2,617,766,571
company’s shareholders (RMB)
Net profits attributable to the
company’s shareholders before
9,437,240,976 2,933,248,153 221.73% 235,119,321
non-recurring gains and losses
(RMB)
Net cash generated from operating
32,878,450,437 16,698,282,775 96.90% 11,490,096,405
activities (RMB)
Basic earnings per share
0.7463 0.3366 121.72% 0.1986
(RMB/share)
Diluted earnings per share
0.7354 0.3226 127.96% 0.1935
(RMB/share)
Weighted average return on equity Up by 12.71 percentage
26.46% 13.75% 9.09%
(%) points
Change of December 31,
At the end of the December 31,
December 31, 2020 2021 over December 31,
Reporting Period 2019
2020
Total assets (RMB) 308,733,133,305 257,908,278,887 19.71% 164,844,884,926
Owners’ equity attributable to the
43,034,234,611 34,107,795,454 26.17% 30,111,946,237
company’s shareholders (RMB)
The net profit before or after the deduction of non-recurring gains and losses in the latest three accounting years, whichever is lower,
is negative and the audit report of the latest year shows the company's ability to continue as a going concern
□ Yes √ No
The net profit before or after the deduction of non-recurring gains and losses, whichever is lower, is negative
□ Yes √ No
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
14,030,642,421
the disclosure of this Report (share)
Fully diluted earnings per share based on the latest total share capital above:
Fully diluted earnings per share based on the latest total share
0.7168
capital above (RMB/share)
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TCL Technology Group Corporation Annual Report 2021
VII. Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Differences in Net Profit and Equity under CAS and IFRS
□ Applicable √ Not applicable
2. Differences in Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
3. Reasons for Accounting Data Differences Above
□ Applicable √ Not applicable
VIII. Major Financial Indicators by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Revenue 32,143,561,563 42,155,085,195 46,629,888,432 42,612,024,433
Net profit attributable to the company’s shareholders 2,403,729,935 4,380,154,872 2,318,085,363 955,473,358
Net profits attributable to the company’s shareholders
2,123,056,041 3,374,761,906 3,060,177,204 879,245,825
before non-recurring gains and losses
Net cash generated from operating activities 8,003,201,979 5,892,512,178 10,063,994,904 8,918,741,376
Indicate whether any of the quarterly financial data in the table above or their summations differs materially from what has been
disclosed in the Company’s quarterly or interim reports.
□ Yes √ No
IX. Non-Recurring Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item 2021 2020 2019 Note
Gains and losses on disposal of non-current
assets (inclusive of impairment allowance -184,525,551 226,829,348 1,419,020,969 Not applicable
write-offs)
Government subsidies charged to current
profits and loss (except for government
subsidies closely related to the Company’s
699,270,673 736,747,146 1,170,648,526 Not applicable
normal business which comply with national
policies and regulations and are enjoyed on
an ongoing basis according to certain
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TCL Technology Group Corporation Annual Report 2021
standard quotas or quantities)
Gain equal to the amount by which
investment costs for the Company to obtain
subsidiaries, associates and joint ventures
40,299,579 292,440,389 68,021,706 Not applicable
are lower than the Company’s enjoyable fair
value of identifiable net assets of investees
when making investments
Gain or loss on fair-value changes on
held-for-trading financial assets and
liabilities & income from disposal of
held-for-trading financial assets and
238,629,291 350,757,476 186,339,457 Not applicable
liabilities and available-for-sale financial
assets (exclusive of the effective portion of
hedges that arise in the Company’s ordinary
course of business)
Non-operating income and expenses other
275,789,900 80,764,287 9,263,922 Not applicable
than the above
Less: Corporate income tax 93,176,105 135,130,967 165,397,982 Not applicable
Non-controlling interests (net of tax) 356,085,235 97,496,814 305,249,348 Not applicable
Total 620,202,552 1,454,910,865 2,382,647,250 --
Details of other profit and loss items that meet the definition of non-recurring profits and losses:
□ Applicable √ Not applicable
Explanation of defining the non-recurring profit and loss items that which is listed in the Explanatory Announcement No. 1 on
Information Disclosure for Companies Offering Their Securities to the Public Non-Recurring Gain/Loss as recurring profit and loss
items
□ Applicable √ Not applicable
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TCL Technology Group Corporation Annual Report 2021
Part III Management Discussion and Analysis
I. Principal Activity of the Company in the Reporting Period
In 2021, the international situation was increasingly complex, and regional conflicts worsened.
With the continuation of the pandemic, the global economy faced huge risk challenges. China
pushed ahead the establishment of a "dual circulation" development pattern that focuses on
domestic flow and features positive interplay between domestic flow and international engagement
as a major strategic task. China built its comparative advantages in major links, strengthened its
influence in the industrial chain, supply chain and innovation chain, gradually transformed in an
orderly way, upgraded to a green and low-carbon development mode and achieved high-quality
development across the board. In the face of opportunities and challenges, the Company
continuously focused on the semi-conductor display business, the new energy photovoltaic and
semi-conductor materials business. In accordance with its requirements of "Ramp up, Catch up", the
Company implements the operating strategy of "improving operating quality and profitability,
consolidating advantages and improving disadvantages, accelerating global layout, and promoting
innovation-driven development" and is dedicated to be a global leading and competitive group with
core industries all occupying world leading positions.
During the reporting period, the semiconductor display business, and new energy photovoltaic
and semiconductor materials business drove the growth of the Company. Both the operating scale
and financial revenue hit a new high. The Company achieved an operating revenue of RMB163.54
billion, a year-on-year increase of 113.3%; achieved a net profit of RMB 14.96 billion, a
year-on-year increase of 195.3%; achieved a net profit attributable to the shareholders of the listed
company of RMB10.06 billion, a year-on-year increase of 129.2%. Benefiting from the overall
higher prosperity in the industry, the Company's capacity scale increased and its structure was
optimized, as the Company’s display business saw its revenue increase by 88.4% year -on-year and
the net profit increase by 339.6%. The Company seized the development opportunity in the new
energy photovoltaic industry and gave full play to the advantages of intelligent manufacturing,
advanced technology and production capacity. G12 silicon wafer ranked top in global market shares.
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TCL Technology Group Corporation Annual Report 2021
The semiconductor material business continued to maintain strong growth, and shipments of
8-12-inch polished wafers and epitaxial wafers rose quickly. The new energy photovoltaics and
semiconductor materials businesses achieved an operating revenue of a year-on-year increase of
115.7%, and a net profit of a year-on-year increase of 200.6%.
Driven by innovation in product technology and continuously expanding in the major
links alongside the industrial chain and value chain. During the reporting period, the Company
invested RMB8.77 billion in R&D, with a year-on-year increase of 34.1%. The company newly
filed 1,254 PCT patent applications, with a total of 14,051 applications filed, ranked top among the
Chinese enterprises. The display business further increased R&D investments in the process,
materials and equipment of new display technologies such as printing OLED, QLED and
Micro-LED, and jointly built an industrial ecosystem for technology development and application
with industries, scientific research institutions and universities. The number of patent applications
for quantum dot electroluminescence technology and materials reached 1,964, ranking second in the
world. A series of patented technologies and know-how have been developed with independent
intellectual property rights in the new energy photovoltaic field, and the introduction of the "G12 +
integrated shingle" technology platform has been accelerated. The Company will continue to
increase resource investment in the field of new energy photovoltaic and semi-conductor materials
and improve its technical strength in key links alongside the industrial chain.
Strengthen the integration of intelligent technology and industrial manufacturing, and
build future competitiveness based on digitization and intelligence. The Company has greatly
improved its production efficiency and product quality through introducing automation and
intelligent equipment, building the industrial Internet and a big data platform, accelerating industrial
4.0 upgrading, and integrating intelligent technologies such as artificial intelligence and IoT into
products. TCL CSOT has introduced intelligent technology projects such as artificial intelligence
identification systems and multi-factor analysis to develop an overall solution for AI industrial
quality inspection with independent intellectual property rights, and the level of intelligent
manufacturing has been greatly improved. Through the construction of intelligent benchmarking
factories, TCL Zhonghuan has improved its production and operation efficiency by more than 70%
and increased its labor efficiency by 4 to 5 times.
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TCL Technology Group Corporation Annual Report 2021
Increase production capacity in an orderly way, along with a high-end product system,
and optimize the business portfolio and revenue structure. The semi-conductor display business
follows a strategy featuring the high-end development for large-sized panels and excellent quality
for medium-sized and small-sized panels. The market share of TV panels is second in the world, of
which the high-end market occupies first place, and the market share of interactive whiteboards is
the first in the world; the medium-sized business revenue of the LTPS production line accounts for
41%, the shipment of notebook computers is the second in the world, onboard products have been
imported into many core customers, having become a profit growth point. New energy
photovoltaics further enhanced the industrial application of G12 + silicon wafers and the integrated
shingled technology platform. The Company's total monocrystalline silicon production capacity was
increased to 88GW. Ningxia Yinchuan 50GW (G12) solar grade monocrystalline silicon material
intelligent plant was put into operation in January 2022. Both production and sales of
semiconductor materials have increased significantly, enabling the company to transform into a
first-class comprehensive solution provider in the industry.
In order to actively implement CSR and achieve high-quality development, the Company
upgraded its corporate culture and took on "leading technology, realizing harmony and
coexistence" as its vision and mission to promote sustainable social development. The
Company advocates a green development model and promotes low-carbon at the production and
final-user ends. TCL CSOT improves the use of clean energy by building a photovoltaic power
generation system on the plant roof. HVA, 1G1D display and other technologies can effectively
improve the transmission of light, improving image quality while saving energy. The G12 silicon
wafer of TCL Zhonghuan can achieve higher photoelectric conversion and manufacturing efficiency.
The Company continues to devote itself to poverty alleviation, student aid, disaster relief and other
charitable activities in an innovative manner. The funds and materials with a total of RMB300
million are used for normalized charitable services to promote joint social progress.
On the occasion of the 40th anniversary and looking into the future, we will pool our
efforts, take science and technology as the guide and innovation as the driving force, continue
to “ramp up, catch up”, and accelerate to become the world's leading intelligent technology
industry group, and shoulder greater responsibility and missions for the prosperity of the
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TCL Technology Group Corporation Annual Report 2021
national economy and people's lives.
II. Main businesses of the Company during the reporting period
Based on the semi-conductor display business, new energy photovoltaic and semi-conductor
materials as the main business, the Company will continue to optimize its business structure, and
further focus on its main businesses, to achieve the strategic goal of global leadership in its two core
industries.
TCL TECH.
Semi-conductor New energy photovoltaic & Industrial finance & Other
display Semi-conductor materials investment
Zhonghuan Zhonghuan TCL TCL Capital
TCL CSOT China Ray Highly TPC
Photovoltaic Advanced Financial
Moka TCL
Juhua
Technology M icrochip
(I) Semiconductor display business
In the first half of 2021, the supply-demand relationship was improved in the semi-conductor
display industry with increased industry concentration. Affected by fluctuated market demands and
logistics costs, the large-size products saw a sharp decrease in price in the second half of the year.
As a leading enterprise, TCL CSOT continued to expand its scale and optimize its business
structure through endogenous growth and external acquisition. Both revenue and profit hit a
record high. During the reporting period, TCL CSOT achieved a total of sales areas of 39.4915
million square meters, a year-on-year increase of 36%, and semi-conductor display business
achieved a revenue of RMB88.1 billion, a year-on-year growth of 88.4% and a net profit of
RMB10.65 billion, a year-on-year increase of 339.6%.
In the large-size segment, TCL CSOT continued to expand its scale, adhering to the
strategy of high-end products and enhanced its competitive advantage. Factories t1, t2 and t6
maintained effective operations, Factory t7 ramped up as scheduled; Factory t10 (formerly Samsung
Suzhou LCD factory) has been consolidated since Q2 and the acquisition of the remaining 30%
minority equity was completed at the end of September, thus becoming a wholly-owned subsidiary
of TCL CSOT. The Company's leading position in large-size panels was further reinforced, ranking
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TCL Technology Group Corporation Annual Report 2021
2nd globally in terms of market share of TV panels, ranking 1st globally in terms of market share of
55-inch products; the high-end strategy has achieved remarkable results, with the shipment area of
65 inch and above products exceeding 47% of the total shipment area, 65-inch and 75-inch products
ranked No.2 in terms of market share, and the Company ranked 1st globally in terms of market
share of 8K and 120 HZ high-end TV panels; the Company has accelerated the adjustment of its
product structure, with non-TV business exceeded 23%, and become the core supplier for the
leading customers in terms of commercial display markets such as interactive whiteboards, digital
signage and splicing screens, among which the market share of interactive whiteboards increased to
No.1 globally.
In the medium-sized segment, TCL CSOT diversified its product structure, actively
introduced leading customers, invested in new production capacity and de veloped a new
engine for business growth. The Company has seized opportunities for rapid growth in the market
of medium-sized products and increased its market share through optimizing existing production
lines. The Company ranks 1st globally in terms of market share of e-sports displays in Q4, Factory
t3 production line accelerated the medium-sized transformation, and the revenue of non-mobile
phone products increased to 41%, 2nd globally in terms of shipment volume of LTPS notebook
panels, and 1st globally in terms of shipment volume of LTPS tablet PC panels; the shipment
volume of vehicle-mounted panels has increased rapidly by introducing a number of Chinese and
foreign leading customers; the Company has achieved cooperation with brand customers with
respect to display and laptop products equipped with Mini LED backlighting. To meet the needs of
customers, the Company is expanding its 6th generation LTPS LCD display panel production line.
The plant of t9 project has been constructed for 8.6th generation oxide semi-conductor new display
device production line and SoP is expected in 2023. The Company's medium-sized business layout
will be gradually improved to explore a new drive for business growth.
In the field of small-sized product businesses, TCL CSOT has improved productivity
through technological differentiation, improved the customer portfolio and improved the
operating indicators. The shipment volume of LTPS mobile phone panels of Factory t3 production
line ranked fourth in the world, and the new VR/AR display products were expanded to improve the
profitability. The first phase of t4 project has successfully reached production capacity, and the
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TCL Technology Group Corporation Annual Report 2021
second and third phases of production capacity are constructed as scheduled. The differentiation
advantage has been realized thanks to folding screens, under screen camera technology and LTPO
technology. The folding screen has successfully realized the SoP and supplied to the first-tier brand
manufacturer, and made a breakthrough in the development of new customers. Affected by high
R&D investments in the early stage and the fixed expenditure in the production capacity increase
period, t4 operating efficiency did not meet expectations. The Company will focus on improving
technical capacity of products, meeting the needs of strategic customers and gradually improving
operating efficiency.
Breakdown of semi-conductor display business：
Shipment area Shipment volume Revenue Net profit
10,000
10,000 Year- Year- RMB Year- RMB Year-
Item pieces /
square on-year on-year 100 on-year 100 on-year
10,000
meters (%) (%) million (%) million (%)
sets
Large-sized
3,774.7 36% 6,332.4 38% 565.5 95.1% 123.0 306.4%
products
Medium-to-small Decreased
sized products by RMB
174.5 23% 9,622 -3% 234.1 31.6% -11.1
1,150
million
Moka Not Not Not
- - 903.9 120.0 3.3
Technology applicable applicable applicable
Other and offsets - Not Not
- - - -38.5 -8.7
applicable applicable
Total - - - - 881.0 88.4% 106.5 339.6%
Note: Moka Technology has been integrated since the second quarter of 2021. The numbers in the Table may contain rounding
errors.
In the long term, the LCD display industry will remain centered on Mainland China with an
optimized competitive pattern. The leading enterprises had significant advantages in terms of
management efficiency, scale, technology, research and development, supply chain, and so forth,
significantly increasing industry entry barriers. In the short term, affected by the turbulent
21
TCL Technology Group Corporation Annual Report 2021
international political and economic situation, economic growth has slowed down, and market
demands have become sluggish. The semi-conductor display industry faces huge operating
challenges.
TCL CSOT will further optimize its business portfolio and accelerate transformation and
upgrading from a leader in large-sized displays to a leader in all sizes of displays. With the capacity
increase of Factory t4 phase II and phase III and the expansion of Factory t9 and Factory t3, TCL
CSOT will continue to increase its capacity and improve the layout of large, medium and small size
display businesses. Large size businesses continue to increase the proportion of high-end products
and take a lead in becoming a global leader. Small and medium-sized businesses build a business
matrix mixed with product lines and technology lines, shapi ng a diversified business layout in
combination with flexible OLEDs, LTPS and module factories, with product planning for all
technological categories.
The Company will uphold efficiency-oriented operations, maintain industry-leading
profitability, improve intelligent manufacturing capacity, management efficiency and personnel
efficiency by building a digital plant. The existing production lines will end their depreciation
period respectively, it is expected that the proportion of depreciation in revenue will gradually
decline, further improving the profitability of TCL CSOT. Meanwhile, TCL CSOT will further
increase R&D investments. By means of equity investment and strategic cooperation and other
methods, the Company works with industrial chain partners to jointly promote the development of
new display technologies such as OLED, Miniled and Microled.
(II) New energy photovoltaic and semiconductor materials business
The global energy structure is undergoing transformation. Renewable energy ushers in new
opportunities for development, and semi-conductor materials, as the upstream of the electronic
industry chain, ushering in fast development following the trend of domestic substitution. Since
2021, as the raw material price keeps rising, the manufacturers face pressure in the short term. In
the face of both opportunities and challenges, TCL Zhonghuan adopts a "9215" development plan,
resolutely implementing "global leading strategies for new energy photovoltaic materials and the
strategy of catching up and surpassing for semiconductor materials", to deepen institutional reform,
comprehensively improve organizational capacity and release corporate vitality. TCL Zhonghuan
22
TCL Technology Group Corporation Annual Report 2021
pushes ahead with technological innovation and deeply participates in the governance of global
intellectual property rights; builds a scientific and orderly manufacturing mode of transformation to
ensure high-quality corporate development.
During the reporting period, the new energy photovoltaics and semiconductor materials
businesses achieved a total revenue of RMB41.1 billion, a year-on-year increase of 115.7%, and a
net profit of RMB4.44 billion, a year-on-year increase of 200.6%.
1. New energy photovoltaics industry
The Company gives full play to its leading technology advantages and drives rapid growth of
the business scale. During the reporting period, TCL Zhonghuan increased the capacity of new
energy photovoltaics to 88GW, with improved product adaptability, and the market share rose to
28%. Relying on the advantages of G12 silicon wafer technology and the manufacturing mode, the
G12 silicon wafer market share ranked first in the world, while high-efficiency N-type
monocrystalline silicon wafer ranked first in the world, and the global industrial influence was
further strengthened. The Company continues to expand the advantages of advanced production
capacity. The 50GW (G12) single crystal silicon material plant of Ningxia Zhonghuan phase VI has
been put into operation, and the 25GW monocrystalline silicon plant in Tianjin and 30GW
monocrystalline silicon material plant in Inner Mongolia are under construction, which will further
facilitate the release of G12 silicon chip production capacity of the Company.
In terms of modules, benefiting from the rapid increase of overseas high-power and distributed
products, the Company has expanded its international market through patented technology of
shingle 3.0, making it the benchmark in power generation efficiency of high-power modules.
During the reporting period, the production capacity of photovoltaic modules increased to 11GW,
with a year-on-year increase of 120%. The G12 high-efficiency shingled PV module project has
realized SoP in Jiangsu Province, while the G12 high-efficiency shingled PV module project in
Tianjin has hastened its SoP.
Based on long-term technological development and the comprehensive application of industry
4.0, the Company has established its differentiated competitiveness in production efficiency and
product reliability. During the reporting period, the consumption rate of silicon material per unit
decreased by nearly 3% year-on-year, the monthly production of silicon rod per unit increased by
23
TCL Technology Group Corporation Annual Report 2021
30%, the labor productivity and the first pass yield (FPY) of G12 production line increased
significantly, and the monthly production and output per single unit took a lead in the industry.
Relying on industry 4.0, the Company has cooperated with upstream and downstream customers to
establish a flexible cooperation mode, which has effectively driven the production and marketing
scale and improved product quality.
2. Semiconductor materials industry
The global semi-conductor industry is increasingly moving to Mainland China. China has
become the largest semiconductor market and continues to maintain the fastest growth rate, driving
the rapid development of the semiconductor material industry. The Company's semiconductor
materials business has developed rapidly. During the reporting period, semiconductor materials
reached the preset capacity targets of 8-inch 750,000 pieces/month and 12-inch 170,000
pieces/month. 8-inch products have established a comprehensive product capability and market
competitiveness comparable to international first-tier manufacturers; the 12-inch products were in a
breakthrough period. The products applied to the customized process have passed the certification
of several domestic leading customers under stable SoP. The products adopting the advanced
process accelerated to catch up, and products above 28nm were successfully verified by several
customers and entered a stage of capacity increase.
Looking into the future, the dual carbon policy will drive the high-efficiency and high-quality
development of the global economy, and the global economic pattern is bound to drive the
reconstruction of the high-tech industrial chain dominated by electronic information. The Company
will seize strategic opportunities, increase investment in new energy photovoltaic and
semi-conductor fields, strengthen the control of key links and strategic nodes alongside the
industrial chain, and contribute to the high-tech industry breakthrough under the trend of energy
structure transformation.
The Company is maintaining steady development in other aspects of corporate development.
TCL financial company focused on ensuring the Company's project capital demand, reducing costs
and increasing efficiency, improving its active management of industrial funds and risks, and
supporting the high-quality development of the industry. TCL Capital explored investment and
deployment opportunities in key areas that drive the development of the science and technology
24
TCL Technology Group Corporation Annual Report 2021
industry, such as new display types, semiconductor and core materials and process equipment
related to the industrial chain, and promoted technology and business synergy. Highly and TPC
stably improved their operation benefits, significantly enhancing both quality and efficiency.
III. Analysis of core competitiveness
In 2021, TCL grandly celebrated its 40th anniversary. Over the last 40 years, TCL has
celebrated outstanding achievements. We have gone through different cycles and grown from a
small local enterprise to become China's leading group in the technology manufacturing industry.
Now, the Company has developed a business structure based on semi-conductor display devices,
new energy photovoltaic and semi-conductor materials. The Company, with a clear development
path, efficient operation and distinct culture, has greatly improved its profitability under
professional operation, and continuously improved its core competitiveness and ability in
sustainable development.
Leading scale: High-speed growth and leading position in the global market
As a global leading enterprise in semi-conductor display and a pioneer in independent line
construction in the domestic display field, the Company has brought the aggregation effect into full
play through the centralized production line layout, and continues to expand production capacity
through endogenous growth and external acquisition; through the construction of two 8.5-gen lines,
TCL CSOT has gained a firm foothold in the field of TV panels; subsequently, two 6-gen lines
successfully introduce small-size panels, and the shipment has exceeded 10%; in recent years,
through the investment and construction of two 11-gen lines and the acquisition of Suzhou Samsung
Factory t10 production line, we have further expanded our large-sized production capacity and kept
a leading position for large-sized panels in the world; in 2021, the Company invested in the
construction of t9 production lines for high value-added IT, commercial display and other
medium-sized products to speed up full-size strategic layout. At present, the market share of TCL
CSOT TV panel shipping area ranks second in the world, LTPS laptop ranks second in the world,
LTPS mobile phone panels rank fourth in the world, E-sports panels rank second in the world, and
IWB ranks first in market share.
At the same time, TCL CSOT has also actively extended the value chain downward, and
25
TCL Technology Group Corporation Annual Report 2021
further improved the Company's position and profitability on the value chain by expanding the
production capacity of its independently constructed modules, and by acquiring Moka Technology
and Samsung's module factory. The Company will further strengthen its core competitive advantage
based on scale effect and supply chain synergy, and with industry recovery and optimizing the
competition layout, TCL CSOT will usher in rapid scale growth and industry improvement driven
by a high growth rate, and consolidate its industry status and comprehensive competitiveness.
Leading in technology and ecology: Actively laying the groundwork for next-generation
display technologies and materials, building a first-mover advantage through ecological
leadership
Relying on TCL CSOT, the Company accelerated the vertical layout of the industrial chain and
continuously improved its upstream capacity for technological innovation. The Company, focusing
on basic materials, next-generation display materials, key equipment in new techniques and other
fields for its ecological layout, has constructed a TCL ecosystem within the display field, so as to
establish its leading advantage based on next generation display technology, and its high-tech value
continues to be enhanced.
The "National Printing and Flexible Display Innovation Center" of Guangdong Juhua, a
subsidiary of the Company, is the only national innovation center in the display field within China,
and has built a global leading public platform for G4.5 printed display R&D, integrating industrial
chain resources from all links including materials, techniques, processes and application verification.
In addition, the Company will continue to invest in Micro-LED display technology, establish a joint
laboratory with San'an to focus on the development of Micro-LED technology, so as to promote the
Company's ecological layout in this field from materials, techniques, equipment, and production
line solutions to independent intellectual property, and form a process flow solution for Micro-LED
commercial scale mass production.
In 2021, the Company ranked top among Chinese Mainland enterprises, with 14,051 patents
applied, and ranked second globally in terms of quantum dot patents. More than half of them are
invention patents, covering 14 fields such as quantum dot materials, backlights and panels, shaping
a well-designed patent layout, and it is expected that the Company will establish its competitive
advantage when the next generation of display technology arrives.
Leading in management: TCL CSOT takes the lead in global efficiency and traverses the
26
TCL Technology Group Corporation Annual Report 2021
cycle with relative competitiveness
While establishing market scale, technology and ecological advantages, the Company has
taken the lead in efficiency and benefit indicators. Since beginning operations in 2011, TCL CSOT
has weathered two rounds of sharp fluctuation cycles in the display industry with ten consecutive
years of profitability, where the net margin has always been positive across the panel cycle, with
extreme cost efficiency and lean management being key factors.
Through the synergistic effect of centralized factories, the Company gives full play to the
efficiency of its production line layout and capacity increase, further improving the activation and
product scheduling efficiency with advantages in industrial chain integration and locking in
strategic customers, promoting end-to-end cost and expense control through refined management
and extreme efficiency cost measures, so as to build its relative competitiveness in the industry. In
the past several rounds of cyclical industry fluctuations, the Company has continuously maintained
an industry leading level of net profit margin and EBITDA margin, making it a model for
profitability within the panel industry. In the future, the Company will go through the industrial
development cycle and take a lead in the industrial development relied on this major advantageous
capacity.
New strategic track: Arranging the layout for semiconductor and photovoltaics
businesses to open up a secondary growth curve
Focusing on enterprise development and the national planning of strategic emerging industries,
the Company actively seeks new tracks that are technology-intensive and capital-intensive with
long development cycles that can give full play to and continue to enhance TCL's core competence.
In July 2020, Zhonghuan successfully achieved state-ownership reform. In 2021, TCL Zhonghuan
released its growth potential through institutional reform, optimized capital structure, stimulated
organizational vitality, accelerated business development, its surpassed performance doubling plan,
and achieved significant growth in revenue and profit. At present, TCL Zhonghuan ranks second in
the world in the sales of photovoltaic materials and for sales volume of semiconductor materials
ranks first in China, making Zhonghuan the second growth engine under the TCL Group.
Organizational and cultural guarantee: Creating a “Path to Global Leadership” and
strengthening the genes of corporate culture
The "greatness, innovation, determination, change and vision" championed by TCL over the
27
TCL Technology Group Corporation Annual Report 2021
past magnificent 40 years is the most important value for TCL's 40 years of development and the
driving force to push TCL to a new level to become a global leader. Aiming at the strategic goal of
“Ramp up, Catch up and Go all out to be a Global Leader”, the Company is committed to reshaping
an organizational culture of accountability, behavior, and performance orientation. TCL will carry
forward its values of “greatness, innovation, determination, change and vision”, deepen team
building and corporate culture, and create a more dynamic corporate organizational culture.
IV. Analysis of Core Businesses
1. Overview
See “Part III Management Discussion and Analysis”.
2. Revenue and costs
(1) Breakdown of operating revenue
Unit: RMB
2021 2020
As % of total As % of total Change (%)
Amount Amount
revenue (%) revenue (%)
Total 163,540,559,623 100% 76,677,238,079 100% 113.28%
By operating division
Semi-conductor
88,102,920,983 53.87% 46,765,152,291 60.99% 88.39%
display
New energy
41,104,685,049 25.13% 5,682,961,642 7.41% 623.30%
photovoltaic
Distribution business 31,932,016,149 19.53% 22,518,401,333 29.37% 41.80%
Other businesses and
internally offset 2,400,937,442 1.47% 1,710,722,813 2.23% 40.35%
accounts
By product category
Semi-conductor
88,102,920,983 53.87% 46,765,152,291 60.99% 88.39%
display devices
New energy
photovoltaic &
41,104,685,049 25.13% 5,682,961,642 7.41% 623.30%
semi-conductor
materials
Distribution of
31,932,016,149 19.53% 22,518,401,333 29.37% 41.80%
electronics
28
TCL Technology Group Corporation Annual Report 2021
Other businesses and
internally offset 2,400,937,442 1.47% 1,710,722,813 2.23% 40.35%
accounts
By operating segment
Mainland China 104,742,993,732 64.05% 54,350,588,776 70.88% 92.72%
Overseas (including
58,797,565,891 35.95% 22,326,649,303 29.12% 163.35%
Hong Kong)
Distribution mode
Direct sales 135,292,006,356 82.73% 56,095,910,392 73.16% 141.18%
Distribution 25,981,764,486 15.89% 19,929,066,792 25.99% 30.37%
Dealer 2,266,788,781 1.39% 652,260,895 0.85% 247.53%
Note: The year-on-year growth change is larger for new energy photovoltaic & semi-conductor materials, because
TCLZhonghuan was consolidated as part of the Company in Q4 2022. This table may contain rounding errors.
(2) Operating division, product category, region or sales mode contributing over 10% of the revenue or
operating profit:
√ Applicable □ Not applicable
Unit: RMB
YoY change in
Gross profit YoY change in YoY change in
Revenue Cost of sales gross profit
margin revenue (%) cost of sales (%)
margin (%)
By operating division
Semi-conductor
88,102,920,983 66,411,847,114 24.62% 88.39% 70.88% 7.73%
display
New energy
41,104,685,049 32,190,397,141 21.69% 623.30% 601.67% 2.41%
photovoltaic
Distribution business 31,932,016,149 30,775,267,445 3.62% 41.80% 41.57% 0.16%
By product category
Semi-conductor
88,102,920,983 66,411,847,114 24.62% 88.39% 70.88% 7.73%
display devices
New energy
photovoltaic &
41,104,685,049 32,190,397,141 21.69% 623.30% 601.67% 2.41%
semi-conductor
materials
Distribution of
31,932,016,149 30,775,267,445 3.62% 41.80% 41.57% 0.16%
electronics
By operating segment
29
TCL Technology Group Corporation Annual Report 2021
Mainland China 104,742,993,732 85,551,184,486 18.32% 92.72% 77.02% 7.24%
Overseas (including
58,797,565,891 45,507,474,011 22.60% 163.35% 154.04% 2.84%
Hong Kong)
Distribution mode
Direct sales 135,292,006,356 103,822,066,115 23.26% 141.18% 124.29% 5.78%
Distribution 25,981,764,486 25,291,879,997 2.66% 30.37% 30.36% 0.01%
Dealer 2,266,788,781 1,944,712,385 14.21% 247.53% 252.34% -1.17%
Core business data restated according to the changed methods of measurement that occurred in the Reporting Period:
□ Applicable √ Not applicable
(3) Whether Revenue from Physical Sales is Higher than Service Revenue
√ Yes □ No
Operating division Item Unit 2021 2020 Change (%)
Sales 10,000 square meters 3949 2910 35.71%
Semi-conductor
Production volume 10,000 square meters 4058 2887 40.56%
display
Inventory 10,000 square meters 170 61 178.31%
Sales 10,000 sets 904 / /
Module and finished
Production volume 10,000 sets 941 / /
machine
Inventory 10,000 sets 49 / /
Sales 10,000 sets 821,234 / /
Photovoltaic silicon
Production volume 10,000 sets 824,803 / /
wafer
Inventory 10,000 sets 12,025 / /
Million square
Sales 752 / /
inches
Semiconductor Million square
Production volume 751 / /
silicon wafer inches
Million square
Inventory 25 / /
inches
Sales MW 4,166 / /
Photovoltaic module Production volume MW 4,763 / /
Inventory MW 628 / /
Sales 10,000 kWh 81,031 / /
Photovoltaic power
Production volume 10,000 kWh 81,031 / /
stations
Inventory 10,000 kWh / / /
Explanation of why any financial indicator in the table above registered a year-on-year change of over 30%
The year-on-year change is larger mainly due to revenue increase. TCL Zhonghuan was consolidated in October 2020. Moka
30
TCL Technology Group Corporation Annual Report 2021
Technology was consolidated in April 2021. The production, sales and inventory of modules and complete machines, photovoltaic
silicon wafers, semiconductor silicon wafers, photovoltaic modules and photovoltaic power stations are not comparable.
(4) Execution Progress of Major Signed Sales Contracts in the Reporting Period
□ Applicable √ Not applicable
(5) Breakdown of operating cost
Operating division
Unit: RMB
2021 2020
Operating division Breakdown of Cost As % of As % of operating Change (%)
Amount Amount
operating cost cost
Semi-conductor Materials, salary,
66,411,847,114 50.67% 38,864,960,717 58.67% 70.88%
display depreciation etc.
New energy Materials, salary,
32,190,397,141 24.56% 4,587,699,136 6.93% 601.67%
photovoltaic depreciation etc.
Distribution
Finished goods etc. 30,775,267,445 23.48% 21,737,804,382 32.82% 41.57%
business
Materials, salary,
Other 1,681,146,797 1.28% 1,051,814,193 1.59% 59.83%
depreciation etc.
Note: The year-on-year growth change is larger for new energy photovoltaic, because TCL Zhonghuan was consolidated as part of
the Company in Q4 2022. The year-on-year data are the consolidated amount.
Product category
Unit: RMB
2021 2020
Product category Item As % of As % of operating Change (%)
Amount Amount
operating cost cost
Semi-conductor Materials, salary,
66,411,847,114 50.67% 38,864,960,717 58.67% 70.88%
display devices depreciation etc.
New energy Materials, salary,
photovoltaic & depreciation etc.
32,190,397,141 24.56% 4,587,699,136 6.93% 601.67%
semi-conductor
materials
Distribution of Finished goods etc.
30,775,267,445 23.48% 21,737,804,382 32.82% 41.57%
electronics
Materials, salary,
Other 1,681,146,797 1.28% 1,051,814,193 1.59% 59.83%
depreciation etc.
31
TCL Technology Group Corporation Annual Report 2021
Note: The year-on-year growth change is larger for new energy photovoltaic & semi-conductor materials, because TCL Zhonghuan
was consolidated as part of the Company in Q4 2022. The year-on-year data are the consolidated amount.
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
√ Yes □ No
Compared with 2020, 35 subsidiaries (18 newly incorporated and the other 17 over which theCompany newly obtained control
of) are newly included and 30 subsidiaries (20 transferred, 8 de-registered, and the other 2 changed into affiliated companies) are
excluded from the consolidation scope of 2021.
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable √ Not applicable
(8) Major Customers and Suppliers
Major Customers
Total sales of top five customers (RMB) 57,063,520,152
Total sales of top five customers as % of total sales of the
35.44%
Reporting Period (%)
Total sales of related parties among top five customers as % of
9.72%
total sales of the Reporting Period (%)
Top five customers:
Serial No. Customer Sales revenue (RMB) As % of total sales revenue (%)
1 1 18,422,044,625 11.44%
2 2 15,642,946,590 9.72%
3 3 11,752,841,832 7.30%
4 4 6,438,331,108 4.00%
5 5 4,807,355,997 2.99%
Total -- 57,063,520,152 35.44%
Other information about major customers: For sales transactions between the Company and its related parties, see provisional
announcements disclosed by the Company on the designated media for information disclosure.
Major suppliers
Total purchases from top five suppliers (RMB) 28,606,000,601
Total purchases from top five suppliers as % of total purchases
22.51%
of the Reporting Period (%)
Total purchases from related parties among top five
-
suppliersas % of total purchases of the Reporting Period (%)
Top five suppliers
32
TCL Technology Group Corporation Annual Report 2021
Purchase in the Reporting
Serial No. Supplier name As % of total purchases (%)
Period (RMB)
1 1 7,950,214,472 6.26%
2 2 6,504,776,293 5.12%
3 3 5,653,948,037 4.45%
4 4 4,397,147,828 3.46%
5 5 4,099,913,971 3.23%
Total -- 28,606,000,601 22.51%
Other information about major suppliers
□ Applicable √ Not applicable
3. Expense
Unit: RMB
2021 2020 Change (%) Main reason for change
Increase in the business size and acquisition of
Selling expenses 1,919,285,105 886,816,654 116.42%
TCL Zhonghuan
Increase in the business size and acquisition of
Administrative expense 4,393,319,922 2,370,378,495 85.34%
TCL Zhonghuan
Increase in the business size and acquisition of
Financial expenses 3,727,915,281 2,357,022,129 58.16%
TCL Zhonghuan
Increase in the business size and acquisition of
R&D expenses 7,236,340,804 4,402,820,839 64.36%
TCL Zhonghuan
4. R&D investments
√ Applicable □ Not applicable
Expected influence on
Main R&D
Purpose Progress Preset goals the future development
project name
of the Company
Realize the
Intelligent speech Meet the voice
Synthesis technology for Realized industrial industry-leading voice
synthesis interaction requirements
speech interactive scenario transformation interaction standard of
technology of intelligent products
intelligent products
Overall technical solutions for The ADC system developed Realize the coverage of
Improve the overall
AI industrial quality by TCL CSOT self-developed ADC
ADC system intelligent manufacturing
inspection with independent multi-production line has system at TCL CSOT
level of the Company
intellectual property rights been fully launched factories
Medium-size Screen technology of Continuous innovation in Become an industry
SoP development
technology high-end flagship notebook function integration, image benchmark to support the
33
TCL Technology Group Corporation Annual Report 2021
development computer and tablet computer quality improvement, eye implementation of the
market protection and company's medium-sized
energy-saving, and transformation strategy
appearance design
The WQHD LTPO
technology platform has
Meet the market requirements been built and the first Ensure major brand
LTPO SoP Improve product
for long endurance electronic LTPO display screen with customers and occupy the
introduction features and yield
products WQ resolution has been market share
directly developed in the
domestic LTPO market
Some technical
LCD image quality reaches Reduce reflectivity and
development has been Improve the
the industry benchmark level, improve rating score;
HVA technology completed and products competitiveness of HVA
and energy efficiency takes a improved UD panel
have been imported after Technology
lead in the industry penetration rate
verification
Deploy the layout in
Develop new Deploy the layout in new-type
Some products develop SoP Develop core algorithms new-type display
display products display products
technology
Research and Improve the
Meet the market demand for
development of monomorph qualified
12-inch photovoltaic crystal Enhance the core
new energy Thermal field and process rate, optimize product
technical indicators and competitiveness of the
photovoltaic design have been completed parameters and further
strengthen the company's core company's main business
12-inch crystal reduce cost and increase
competitiveness
technology proficiency
Research and develop
Achieve 150μm thick
R&D of 210 ultra-thin solar silicon wafer
Equipment upgrading and SoP target of silicon Enhance the core
silicon wafer cutting technology to meet the
cutting process design have wafer; and complete competitiveness of the
slicing demand for thin film in the
been completed 130μm thick technical company's main business
technology downstream market and
reserve of silicon wafer
improve unit output
R&D on Enhance the core
Meet the market demand for Increase the market
semiconductor SoP for Silicon wafers for competitiveness of the
large-size silicon wafers of share of semiconductor
12-inch silicon 12-inch power devices Company's
12-inch integrated circuits 12-inch silicon wafer
wafer technology semi-conductor materials
R&D personnel
2021 2020 Change (%)
Number of R&D Employees 10,517 8,156 28.95%
As % of R&D Employees (%) 16.14% 16.83% -0.69%
Education
34
TCL Technology Group Corporation Annual Report 2021
PhD 202 197 2.54%
Master 2,081 1,716 21.27%
Bachelor’s degree and others 8,234 6,243 31.89%
Age
Under 30 years old 5,730 4,678 22.49%
30~ 40 years old 4,394 3,215 36.67%
Over 40 years 393 263 49.43%
R&D investments
2021 2020 Change (%)
R&D investment amount (RMB) 8,772,389,079 6,543,368,860 34.07%
R&D investments as % of total
5.36% 8.53% -3.17%
revenue (%)
Capitalization amount of R&D
3,813,925,123 2,836,134,458 34.48%
investments (RMB)
Capitalization amount of R&D
43.48% 43.34% 0.13%
investments as % of total revenue (%)
Reasons and impacts of major changes in the composition of R&D personnel of the Company
□ Applicable √ Not applicable
Reasons for significant changes in R&D investment as % of total revenue compared with the previous year
□ Applicable √ Not applica ble
Reasons for significant changes in R&D investments capitalization and rationality explanation
□ Applicable √ Not applicable
5. Cash Flow
Unit: RMB
Item 2021 2020 Change (%)
Sub-total of cash generated from
153,026,874,325 86,452,810,939 77.01%
operating activities
Sub-total of cash used in operating
120,148,423,888 69,754,528,164 72.24%
activities
Net cash generated from operating
32,878,450,437 16,698,282,775 96.90%
activities
Sub-total of cash generated from
43,772,408,329 32,460,222,661 34.85%
investment activities
Subtotal of cash used in investing 77,405,450,301 71,233,732,364 8.66%
35
TCL Technology Group Corporation Annual Report 2021
activities
Net cash used in investing activities -33,633,041,972 -38,773,509,703 13.26%
Sub-total of cash generated from
75,934,217,326 75,566,392,668 0.49%
financing activities
Subtotal of cash used in financing
63,151,712,744 52,701,802,798 19.83%
activities
Net cash generated from financing
12,782,504,582 22,864,589,870 -44.09%
activities
Net increase in cash and cash
11,873,288,084 570,673,851 1980.57%
equivalents
Explanation of why related data has significant changes year-on-year
√ Applicable □ Not applicable
Large increase in net cash flow generated from operating activities: Mainly due to the expansion of operating revenue scale and the
merger of TCL Zhonghuan
The net increase in cash and cash equivalents increased significantly: Increase in cash inflow generated from operating activ ities
Explanation of the significant difference between the net cash flow generated by the Company's operating activities and the net profit
of the current year during the reporting period
□ Applicable √ Not applicable
V. Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
Amount As % of gross profit Source Sustainability
Asset Falling price of inventory write-off in line
2,911,463,958 16.58% No
impairment with market
Non-operating
351,979,944 2.00% Not applicable No
income
Non-operating
140,452,279 0.80% Not applicable No
expense
VI. Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
The end of 2021 Beginning of 2021 Change in Main reason for change
36
TCL Technology Group Corporation Annual Report 2021
percentage
As % of As % of
Amount Amount (%)
total assets total assets
Monetary assets Increase in net cash generated
31,393,692,485 10.17% 21,708,904,743 8.42% 1.75%
from operating activities
Accounts receivable Mainly due to the expansion of
18,238,782,247 5.91% 12,557,614,486 4.87% 1.04%
operating revenue scale
Contract assets 233,528,786 0.08% 183,650,278 0.07% 0.00% No significant change
Inventories Mainly due to the expansion of
14,083,356,918 4.56% 8,834,957,692 3.43% 1.14%
operating revenue scale
Investment property 761,902,236 0.25% 1,664,201,130 0.65% -0.40% No significant change
Long-term equity No significant change
25,640,578,245 8.31% 24,047,036,004 9.32% -1.02%
investments
Fixed assets 113,579,297,130 36.79% 92,829,901,894 35.99% 0.80% No significant change
Construction in No significant change
36,965,885,393 11.97% 31,508,310,783 12.22% -0.24%
progress
Right-of-use assets Adoption of the new
2,426,911,208 0.79% - 0.00% 0.79% accounting standard governing
leases
Short-term Optimization of the debt structure
9,341,426,543 3.03% 12,263,713,979 4.76% -1.73%
borrowings
Contract liabilities 2,593,882,004 0.84% 2,004,004,181 0.78% 0.06% No significant change
Long-term Increase in financings
87,279,081,955 28.27% 73,589,403,308 28.53% -0.26%
borrowings
Lease liabilities Adoption of the new accounting
1,102,071,813 0.36% - 0.00% 0.36%
standard governing leases
Explanation of high proportion of overseas assets
□ Applicable √ Not applicable
2. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
37
TCL Technology Group Corporation Annual Report 2021
Impairm
ent
Gain/loss on Cumulative
allowan
fair-value fair-value Purchased in Sold in the
Beginning ces Other
Item changes in the changes the Reporting Repor ting Ending amount
amount establish changes
Reportin g recorded in Period Period
ed in the
Period equity
Reportin
g Period
Financial
assets
1.Held-for-
trading
financial
assets
8,355,640,976 155,319,290 31,086,333,926 29,292,000,403 10,305,293,789
(excluding
derivative
financial
assets)
2. Derivative
financial 453,578,245 -317,003,187 -52,084,504 8,051,884 21,613,872 70,928,566
assets
3.
Receivables 2,176,743,646 40,895,090 2,217,638,736
financing
4. Other debt
152,062,601 152,062,601 0
investments
5.
Investments
in other 1,333,675,630 -212,103,988 3,391,150 197,643,345 927,319,447
equity
instruments
Subtotal of
financial 12,471,701,098 -161,683,897 -264,188,492 31,097,776,960 29,663,320,221 40,895,090 13,521,180,538
assets
Total of the
12,471,701,098 -161,683,897 -264,188,492 31,097,776,960 29,663,320,221 40,895,090 13,521,180,538
above
Financial
912,804,772 -15,099,498 -130,076,277 219,887,900 40,276,590 947,240,307
liabilities
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
38
TCL Technology Group Corporation Annual Report 2021
3. Restricted Asset Rights as at the Period-End
Carrying amount
Restricted assets Reason for restriction
(RMB10,000)
Monetary assets 35,818 Deposited in the central bank as the required reserve
Monetary assets 95,381 Other monetary funds and restricted bank deposits
Notes receivable 11,938 Pledge
Fixed assets 6,446,982 As collateral for loan
Intangible assets 275,942 As collateral for loan
Held-for-trading financial assets 3,434 Put in pledge for loan
Right-of-use assets 5,700 As collateral for lease
Accounts receivable 105,034 Pledge
Contract assets 17,583 Pledge
Total 6,997,811
VII. Investments Made
1. Total Investment Amount
√ Applicable □ Not applicable
Total investment amount in the Reporting Total investment amount in the same
Change (%)
Period (RMB) period of last year (RMB)
46,434,920,794 53,763,722,110 -13.63%
2. Major Equity Investments Made in the Reporting Period
√ Applicable □ Not applicable
Unit: RMB'0,000
Anticip Investm
Index
Progres ated ent Any
Inve Share Co- (if any)
Name s as of return income/ legal Date (if
stme Amount of sholdi Fundin investor Investm Type of to
of Principal the on loss in matter any) of
nt Investmen ng g (trading ent product disclose
investe Activity balance investm the involve disclos
mod t Ratio Source counter Term s d
e sheet ent Reporti d ure
e (%) part) informa
date investm ng or not
tion
ent Period
39
TCL Technology Group Corporation Annual Report 2021
State-
owned
enterpri
se
undue
the
coordin
ation of
Producti
the
on and
People’
sales of
Funds f s
medium- Equi
rom pla Govern
Guangz sized ty Not Not Not Not April
nned pr ment of
hou high inve 962,500 55% applica applica applica applica 1,091 No 10,
ivate pl Guangz
CSOT value-ad stme ble ble ble ble 2021
acemen houMu
ded nts
t nicipali
display http://w
ty and
panels, ww.cni
Guangz
etc nfo.co
hou
m.cn
Develo
pment
Zone
Manage
ment
Commi
t tee
R&D,
TCL
procurem
Industri
ent,
Equi es,
productio
Moka ty Self-rai Holdin Not Not Not Not Decem
n and
Technol inve 280,000 100% sed g applica applica applica applica 32,542 No ber 12,
sales of
ogy stme funds (Hong ble ble ble ble 2020
intelligen
nts Kong)
t display
Co.,
terminal
Ltd.
products
Total -- -- 1,242,500 -- -- -- -- -- -- -- 33,633 -- -- --
3. Major Non-Equity Investments Ongoing in the Reporting Period
□ Applicable √ Not applicable
40
TCL Technology Group Corporation Annual Report 2021
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Unit: RMB'0,000
Gain/l
Cumul
oss on
Se Begi ative
fair-va
cu Mea nnin fair-va
Initial lue Purchase Sold in Gain/los
rit Securities sure g lue Ending Accou Fundi
Security invest change d in the the Repor s in the
ie Abbreviati ment carry change carrying ntin g ng
type men t s in Reportin ting Reportin
s on meth ing s amount title source
cost the g Period Period g Period
co od amou record
Report
de nt ed in
in g
equity
Period
Changjian
g pension
N golden
Held-f
ot short-term
or-trad
ap bonds No. Fair
ing Self-f
Other pli 2 45,000 valu - 297 - 45,000 - 297 45,297
financ unded
ca collective e
ial
bl asset
assets
e managem
ent
product
Financia
N
l Held-f
ot China
manage or-trad
ap Securities Fair
ment of ing Self-f
pli “Stable 32,000 valu - 29 - 32,000 - 29 32,029
securitie financ unded
ca Income” e
s ial
bl No. 7347
compani assets
e
es
Financia CITIC
N
l Future - Held-f
ot
manage Yue Wan or-trad
ap Fair
ment of No. 2 ing Self-f
pli 30,000 valu - 859 - 30,000 - 859 30,859
securitie Collective financ unded
ca e
s Asset ial
bl
compani Managem assets
e
es ent Plan
41
TCL Technology Group Corporation Annual Report 2021
N
Held-f
Bank’s ot
or-trad
wealth ap Sunshine Fair
ing Self-f
manage pli 6M bonus 30,000 valu - 586 - 30,000 - 586 30,586
financ unded
ment ca No. 2 e
ial
product bl
assets
e
Xingyin
Wealth
Managem
ent Gold
N Snowball
Held-f
Bank’s ot Solid
or-trad
wealth ap Income Fair
ing Self-f
manage pli No. 1 A- 50,000 valu - 547 - 50,000 20,000 547 30,547
financ unded
ment ca type Net e
ial
product bl Value
assets
e Wealth
Managem
ent
Product
(Jijifeng)
N Sunshine
Held-f
Bank’s ot 12M
or-trad
wealth ap bonus Fair
ing Self-f
manage pli exclusive 30,000 valu - 329 - 30,000 - 329 30,329
financ unded
ment ca for the e
ial
product bl National
assets
e Day
China
Constructi
on Bank's
"Qianyuan
N Huizhong
Held-f
Bank’s ot " (daily
or-trad
wealth ap applicatio Fair
ing Self-f
manage pli n and 30,000 valu - 197 - 30,000 - 197 30,197
financ unded
ment ca quarterly e
ial
product bl redemptio
assets
e n) open
net worth
RMB
financial
products
42
TCL Technology Group Corporation Annual Report 2021
N
Held-f
Bank’s ot
Sunshine or-trad
wealth ap Fair
daily ing Self-f
manage pli 30,000 valu - 192 - 30,000 - 192 30,192
purchase financ unded
ment ca e
180 days ial
product bl
assets
e
China
Constructi
on Bank's
"Qianyuan
N Huizhong
Held-f
Bank’s ot " (daily
or-trad
wealth ap applicatio Fair
ing Self-f
manage pli n and 60,000 valu - 117 - 60,000 30,325 117 29,792
financ unded
ment ca weekly e
ial
product bl redemptio
assets
e n) open
net worth
RMB
financial
products
CCB
trust -
N
Shengjing Held-f
ot
Tongying or-trad
ap Fair
Trust bond ing Self-f
pli 20,000 valu - 437 - 20,000 - 437 20,437
products investmen financ unded
ca e
t ial
bl
collective assets
e
fund trust
plan
Other securities investments 3,208,9 550,9 -26,55 -21,21 2,794,72
-- 2,831,257 20,038 520,118 -- --
held at the period-end 58 54 0 0 0
3,565,9 550,9 -21,21 3,151,72
Total -- -22,96 2,881,583 23,628 830,383 -- --
58 54 0 0
0
Disclosure date of the board
announcement approving March 11, 2021
the securities investments
Disclosure date of the
general meeting
May 6, 2021
announcement approving
the securities investments
43
TCL Technology Group Corporation Annual Report 2021
(2) Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RMB'0,000
Funding source Mostly foreign-currency revenue
Legal matters involved (if applicable) Not applicable
Disclosure date of the board
announcement approving the April 28, 2018
derivative investments (if any)
Disclosure date of the general
meeting announcement approving the Not applicable
derivative investments (if any)
In order to effectively manage the exchange and interest rate risks of foreign currency
assets, liabilities and cash flows, the Company, after fully analyzing the market trend and
predicting the operation (including orders and capital plans), adopts forward foreign
exchange contracts, options and interest rate swaps to avoid future exchange rate and
interest rate risks. As its business scale changes subsequently, the Company will adjust the
exchange rate risk management strategy according to the actual market conditions and
business plans.
Risk analysis:
1. Market risk: the financial derivatives business carried out by the Group belongs to
hedging and trading business related to main business operations, and there is a market risk
of loss due to the fluctuation of underlying interest and exchange rates, which lead to the
fluctuation of prices of financial derivatives;
Analysis of risks and control 2. Liquidity risk: the derivatives business carried out by the Group is an over-the-counter
measures associated with derivative transaction operated by a financial institution, and there is a risk of loss due to paying fees to
investments held in Reporting Period the bank for the operations of evening up or selling the derivatives below the buying prices;
(including but not limited to market 3. Performance risk: the Group conducts the derivative business based on rolling budgets for
risk, liquidity risk, credit risk, risk management, and there is a risk of performance failure due to deviation between the
operational risk, legal risk, etc.) actual operating results and budgets;
4. Other risks: in the case of specific business operations, if the operator fails to finish the
prescribed procedures for report or approval, or fails to record the financial derivative
business information accurately, timely and completely, it may result in loss of derivative
business or trading opportunities. Moreover, if the trading operator fails to fully understand
the terms of transaction contracts or product information, the Group will face the legal risks
and transaction losses therefrom.
Measures taken for risk control:
1. Basic management principles: the Group strictly follows the hedging principle and the
main purpose of locking costs and avoiding risks. It is required that the financial derivatives
business to be carried out matches the variety, size, direction and duration of spot goods, and
no speculative trading should be involved. In the selection of hedging instruments, only
simple financial derivatives that are closely related to the main business operation and meet
44
TCL Technology Group Corporation Annual Report 2021
the requirements of hedge accounting treatment should be selected, and avoid complex
business that exceeds the prescribed business scope or is difficult to recognize in terms of
risk and pricing;
2. The Group has formulated a special risk management system tailored to the risk
characteristics of the financial derivatives business, covering all key aspects such as
preemptive prevention, in-process monitoring and post-processing. It reasonably allocates
professionals for investment decision-making, business operation and risk control as
required; Personnel involved in investment are required to fully understand the risks of
financial derivatives investment and strictly implement the business operation and risk
management system of derivatives. Before starting the derivatives business, the holding
company must submit to the competent department of the Group detailed business reports
including its internal approval, main product terms, operational necessity, preparations, risk
analysis, risk management strategy, fair value analysis and accounting methods, and special
summary reports on business operated. Operation is only allowed upon the approval of the
functions under the Group;
3. Relevant departments should track the changes in the open market price or fair value of
financial derivatives, timely assess the risk exposure changes of invested financial
derivatives, and make reports to the board of directors on business development;
4. When the combined impairment of the fair value of derivatives and changes in the value
of the assets (if any) used for risk hedging by the Group results in a total loss or floating loss
amounting to 10% of the recently audited net assets of the Company, and the absolute
amount exceeds RMB10 million, the Group will disclose it in a timely manner.
With the rapid expansion of overseas sales, the Company keeps following the above rules in
Changes in market prices or fair value
the operation of forward foreign exchange contracts, interest rate swap contracts and futures
of derivative investments in
contracts to avoid and hedge foreign exchange risks arising from operation and financing.
Reporting Period (fair value analysis
The profit and loss during the reporting period was RMB184.15 million. The fair value of
should include measurement method
derivatives is determined by real-time quoted price of the foreign exchange market, based on
and related assumptions and
the difference between the contractual price and the forward exchange rate quoted
parameters)
immediately in the foreign exchange market on the balance sheet date.
Major changes in accounting policies
and specific accounting principles
adopted for derivative investments in No significant change
Reporting Period compared to last
reporting period
In view of the fact that certain raw materials of the core business of the Company are
purchased overseas, a wide range of settlement currencies is involved. The Company
reduces exchange losses and locks transaction costs by reasonable financial derivatives,
Opinion of independent directors on which helps to reduce risk control costs and improve company competitiveness. Risks are
derivative investments and risk effectively controlled as the Company has taken series of measures such as conducting a
control rigorous internal evaluation for the operation of financial derivatives business, establishing a
corresponding regulatory mechanism, formulating reasonable accounting policies and
specific accounting principles, setting limits for risk exposure management, and operating
simple financial derivatives. The contracting agent for financial derivatives business of the
45
TCL Technology Group Corporation Annual Report 2021
Company is a sound financial agent with good credit standing. We are of the opinion that the
financial derivatives transactions carried out by the Company in 2021 were closely related to
the daily operation needs of the Company with controllable risks in line with the interests of
the Company and minority shareholders and the relevant provisions of relevant laws and
regulations.
Unit: RMB'0,000
Ending contractual
Gain/loss amount as % of the
Beginning amount Ending amount
in Company’s ending
Type of contract
Reporting net assets
Contractual Actual Contractual Actual Period Contractual Actual
amount amount amount amount amount amount
1. Forward forex contracts 1,931,617 59,359 1,736,175 61,406 14.51 0.51
2. Interest rate swaps 758,846 22,765 415,696 12,471 18,415 3.47 0.10
3. Currency swaps 310,520 15,526 0 0 0.00 0.00
Total 3,000,983 97,650 2,151,871 73,877 18,415 17.98 0.61
Note: The 8th meeting of the 6th board of directors of the Company deliberated and approved the proposal on Adjusting the Lim it of
Financial Derivative Business, which raised the upper limit of operating financial derivatives to RMB2 billion. The financial
derivatives operated are hedging contracts related to the main business, mainly including forwards, options, swaps, futures a nd other
products or a combination of the above products. Within the scope of this limit, the business limit for financial derivat ives can be
recycled.
5. Use of Funds Raised
√ Applicable □ Not applicable
(1) General Information about the Use of Raised Funds
√ Applicable □ Not applicable
Unit: RMB'0,000
Amount
Cumulativ Cumulative Purpose and
with
Total Used in e amount amount with whereabouts Amount being
Way of Cumulativ changed Unused
Year of raising amount the current with changed used of the idle for more
raising ely used use in the amount
raised period changed as % of total unused than two years
reporting
used amount raised amount
period
Private
placement
Not
2020 (raising the 256,880 67.6 256,894.96 0 0 0.00% 0 0
applicable
matching
funds)
2021 Public 50,000 50,000 50,000 0 0 0.00% 0 Not 0
46
TCL Technology Group Corporation Annual Report 2021
offering to applicable
qualified
investors
Total -- 306,880 50,067.6 306,894.96 0 0 0.00% 0 -- 0
Use of funds raised
1. During the reporting period, the Company publicly issued scientific and technological innovation short-term corporate bonds (phase I) to
qualified investors in 2021, raised a total of RMB500 million to replace the existing debt of the Company's scientific and technological
innovation business, and all the funds raised by bonds were used up.
2. In 2020, the Company issued shares, convertible corporate bonds, purchased assets in cash and raised supporting funds. The total amount of
supporting funds raised was RMB2.5688 billion. As of March 10, 2021, the Company had invested RMB2.5689496 billion (including
RMB149,600 of accumulated interest saved in the special account and income after deducting handling fees), and the raised funds had been used
up.
(2) Promised Use of Raised Funds
√ Applicable □ Not applicable
Unit: RMB'0,000
Investm
Total
ent Time Signific
Project promised Adjusted Cumulative
progres when the Benefits ant
Promised project changed investme total Investme investment Meeting the
s as at project is derived change
funded with raised or not nt investme nt in the amount at expected
the ready for in the to
funds and investment (includin amount nt Reporting the benefits or
period- its Reporting project
with over-raised funds g partial with amount Period period-end not
end (3) intended Period feasibili
change) raised (1) (2)
= (2) / use ty or not
funds
(1)
Promised projects
Not Not Not
1. Acquired 39.95% of 100.00 Not
No 161,700 161,700 0 161,700 applicabl applicabl applicab
equity of Wuhan COST % applicable
e e le
2. Repaying debts of
Not Not Not
listed companies and 100.00 Not
No 95,180 95,180 67.6 95,194.96 applicabl applicabl applicab
supplementing the % applicable
e e le
working capital
Not
Subtotal of promised
-- 256,880 256,880 67.6 256,894.96 -- -- applicabl -- --
projects
e
Over-raised funds
None
Subtotal of over-raised
-- - - - - -- -- - -- --
funds
47
TCL Technology Group Corporation Annual Report 2021
Total -- 256,880 256,880 67.6 256,894.96 -- -- - -- --
-
Description of major
changes in project Not applicable
feasibility
Over-raised fund
amount, purpose and Not applicable
use progress
Location change of the
project with raised Not applicable
funds
Adjustment of project
Not applicable
implementation
Advance investments
On November 26, 2020, the Proposal on the Swap of Raised Funds and Advance Investments of
in promised projects
Self-Pooled Funds was approved at the Second Meeting of the Company’s Seventh Board of Directors. As
funded with raised
such, raised funds were agreed to be swapped with the advance investments of self-pooled funds in projects
funds and subsequent
funded with raised funds. Total swap amount was RMB1.617 billion.
swaps
Supplemented the
working capital with Not applicable
idle funds
Amount and reasons
for the balance of
Not applicable
raised funds in the
project implementation
Unused fund purpose
Not applicable
and whereabouts
Problems and other
circumstances in raised Not applicable
fund use and disclosure
(3) Change of the raised fund projects
□ Applicable √ Not applicable
No such cases in the Reporting Period.
48
TCL Technology Group Corporation Annual Report 2021
VIII. Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□ Applicable √ Not applicable
2. Sale of Major Equity Investments
√ Applicable □ Not applicable
Net profit
Ratio of the Execute
contribut
net profit d as
ed to the Relationsh Equity
contribut ed schedule
Transact Compan y Any ip between investment Index to
by the sale Pricin d or not; Date
Equity i on from the Effect on associ the involved disclose
Trading Date of of the equity g if not, of
investment price period-be the ated transaction has been d
counterpart sale investment princip give disclos
sold (RMB’0 gin to the Company transac party and all informat
to the le reasons ure
,000) date of tions the transferred ion
Compan y’s and
sale Company or not
total profit measure
(RMB’0,0
(%) s taken
00)
Further
optimize
the
business Mr. Li
Based
structure Dongshen
on
and focus g serves as
valuati
on the the
on
developme Chairman
with
nt of the of the
TCL referen
main Board in
TCL Financial ce to http://w
business; both the May
Industries Holding May 31, the ww.cnin
257,202 4,776 comply 0.1% Yes Company Yes Yes 22,
Holdings Group 2021 market fo.com.c
with and TCL 2021
Co., Ltd. (Guangzho prices n
national Industries,
u) Co., Ltd. of
policies and TCL
transac
and meet Industries
tions
the needs is a related
of the
of the corporatio
same
Company' n of the
kind
s Company
announced
financing
projects
49
TCL Technology Group Corporation Annual Report 2021
IX. Principal Subsidiaries and Joint Stock Companies
√ Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the Companys net profit:
Registered
Relationship Operating Operating
Principal capital Total assets Net assets Net profit
Company Name with the revenue profit
activity (RMB100 (RMB’0,000) (RMB’0,000) (RMB’0,000)
Company (RMB’0,000) (RMB’0,000)
million)
TCL China Star
Optoelectronics Semi-conduc
Subsidiary 304.68 20,387,161 8,453,049 8,005,172 1,171,071 1,011,063
Technology tor display
Co., Ltd.
Tianjin
New energy
Zhonghuan
Subsidiary photovoltaic 32.32 7,797,936 4,166,978 4,110,469 500,560 443,513
Semiconductor
and materials
Co., Ltd.
Highly
Information Distribution
Subsidiary 4.12 613,589 133,062 3,193,202 38,292 27,205
Industry Co., business
Ltd.
Acquisition and disposal of subsidiaries in the reporting period
√ Applicable □ Not applicable
How subsidiary was obtained or disposed of Effects on overall operations and
Company Name
in the Reporting Period operating performance
Shenzhen Huatuo Trade Technology Co., Ltd. Newly incorporated No significant effect
Xiamen Xinying Display Technology Co., Ltd. Newly incorporated No significant effect
Shaanxi Xiaoyi E-commerce Service Co., Ltd. Newly incorporated No significant effect
Shaanxi RunhuanTianyu Technology Co., Ltd. Combination not under common control No significant effect
Highly (Tianjin) Technology Co., Ltd. Newly incorporated No significant effect
Tianjin WanfangNuoxin Technology Co., Ltd. Newly incorporated No significant effect
Zhonghuan Advanced Semiconductor
Newly incorporated No significant effect
(Shanghai) Co., Ltd.
Ningxia Zhonghuan Solar Material Co., Ltd. Newly incorporated No significant effect
Suzhou China Star Optoelectronics Technology
Combination not under common control No significant effect
Co., Ltd.
Suzhou China Star Optoelectronics Display
Combination not under common control No significant effect
Co., Ltd.
Moka International Limited and its subsidiaries Combination not under common control No significant effect
50
TCL Technology Group Corporation Annual Report 2021
Huizhou Shengyao New Energy Technology
Newly incorporated No significant effect
Co., Ltd.
Inner Mongolia Huanya Hotel Management
Newly incorporated No significant effect
Co., Ltd.
HuludaoXincheng New Energy Technology
Combination not under common control No significant effect
Co., Ltd.
En Yi Investment Co., Ltd. Newly incorporated No significant effect
Zhonghuan Semi-Conductor (Singapore)
Newly incorporated No significant effect
Private Ltd.
Inner Mongolia Huanxing Power Construction
Combination not under common control No significant effect
Engineering Co., Ltd
Shaanxi HuanboXinneng Power Engineering
Combination not under common control No significant effect
Construction Co., Ltd
Beijing Lingyun Data Technology Co., Ltd. Newly incorporated No significant effect
Guangdong TCL New Technology Co., Ltd. Combination not under common control No significant effect
Tianjin Silica Material Technology Co., Ltd. Newly incorporated No significant effect
Tianjin Huanou New Energy Technology Co.,
Newly incorporated No significant effect
Ltd
Xiamen TCL Technology Industrial Investment
Newly incorporated No significant effect
Co., Ltd.
Tianjin TiTiYunchuang Technology Co., Ltd Newly incorporated No significant effect
Tianjin Xincheng Pilot Technology Co., Ltd. Newly incorporated No significant effect
Junjia Development Co., Ltd. Newly incorporated No significant effect
TCL Communication Technology (HK)
De-registered No significant effect
Limited
Tianjin Huanyan Technology Co., Ltd. Transferred No significant effect
Tianjin Huan’Ou International New Energy
De-registered No significant effect
Technology Co., Ltd.
KangbaoShenghui New Energy Co., Ltd. De-registered No significant effect
Winshero Investment Limited De-registered No significant effect
Tianjin Xietong Real Estate Development Co.,
De-registered No significant effect
Ltd.
TCL International Distribution (HK) Limited De-registered No significant effect
TCL Financial Holding Group (Guangzhou)
Transferred No significant effect
Co., Ltd. and its subsidiaries
TCL Huanxin Semi-conductor (Tianjin) Co.,
Increase in non-controlling interests No significant effect
Ltd. and its subsidiaries
51
TCL Technology Group Corporation Annual Report 2021
Tianjin ZhonghuanXinyu Technology Co., Ltd. Transferred No significant effect
UTOP (Shanghai) Co., Ltd. De-registered No significant effect
Li Rong Development Limited and its
Transferred No significant effect
subsidiaries
TCL Medical Ultrasound Technology (Wuxi)
Transferred No significant effect
Co., Ltd.
Peer College Education Technology (Huizhou)
Transferred No significant effect
Co., Ltd.
TCL Light Source Energy-saving Technology De-registered No significant effect
(Huizhou) Co., Ltd.
X. Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
IX. Prospects
Looking into 2022, in the face of great changes unseen in a century, the central government is
promoting the transformation of China's economy from high growth to high-quality development.
The micro foundation of high-quality economic development is the high-quality development of
enterprises, and the high-quality development of the country is the high-quality development of
enterprises.
TCL Tech seizes the strategic opportunity period of high-quality development of the national
economy, develops core assets in the global technology industry, and strategically focuses on the
business development of semiconductor display, new energy photovoltaic and semiconductor
materials. The two industries are on the track of high growth and great potential. Based on the
advantages of technology, management and scale, the Company is committed to becoming a global
leader in these two industries.
As one of the world's leading semiconductor display enterprises, the Company will focus on
seizing the opportunity of industry integration, enhancing the leading advantage of large-sized
products, improving the layout of small and medium-sized products, optimizing the business,
product and customer structure, and transforming into an industry leader at all sizes.
Through the acquisition of TCL Zhonghuan, the Company actively engages in the two strategic
industries of new energy and semiconductor, aiming to establish the core track of the science and
technology industry in the next decade. TCL Zhonghuan has become one of the main engines of
52
TCL Technology Group Corporation Annual Report 2021
TCL's scientific and technological performance growth through institutional reform, activating the
organizational vitality, releasing growth potential and accelerating business development.
On the occasion of the 40th anniversary, TCL will pool its efforts, take science and technology
as the guide and innovation as the drive, and continue to ramp up, catch up and achieve high-quality
development.
XII. Communications with the Investment Community such as Researches, Inquiries and
Interviews
√ Applicable □ Not applicable
Way of Type of Main discussions
Index to main information
Date Place communic communic Communication party and materials
communicated
ation ation party provided
Know the business On March 15, 2021, Log
The
By visit + JPMorgan Chase, Morgan Stanley, UBS group, situation and Sheet No. 2021-001 on
Ritz-Carlton
March 11, teleconfer Aspen Capital Management (HK), DBS, HSBC, development plan Investor Relations Activities
Beijing, Institution
2021 ence + live Nomura, CICC, Foresight Fund, TruValue Asset of TCL Tech and on March 11, 2021
Financial
streaming Management etc. TCL CSOT in disclosed on
Street
2020 http://www.cninfo.com.cn.
On April, 13, 2021, Log
Company E Funds, China Asset Management, Huaxi
Sheet No. 2021-002 on
Conference Securities, Hwabao WP Fund Management, Know the
April 10, Investor Relations Activities
Room in By phone Institution Sequoia Capital, Haitong International, Company’s
2021 on April 10, 2021 disclosed
Shenzhen GuotaiJunan Securities, Everbright Securities, GF business
on
Headquarters Fund, SINOLINK Securities, etc.
http://www.cninfo.com.cn.
On April, 14, 2021, Log
Company Know the business
CICC, Harvest Fund, HFT Fund, OTT Capital, Sheet No. 2021-003 on
Conference situation and
April 12, Soochow Asset Management, GF Fund, High Investor Relations Activities
Room in By phone Institution development plan
2021 Flyer Quant, CP Investment, HSBC, LMR on April 12, 2021 disclosed
Shenzhen of TCL Tech in
Partners, etc on
Headquarters Q1 2021
http://www.cninfo.com.cn.
Agricultural Bank of China Life Insurance, On April, 30, 2021, Log
Company Know the business
Southern Asset Management, Morgan Stanley Sheet No. 2021-004 on
Conference situation and
April 28, Huaxin Funds, ICBC AXA Asset Management, Investor Relations Activities
Room in By phone Institution development plan
2021 Perseverance Asset Management, Goldman on April 28, 2021 disclosed
Shenzhen of TCL Tech in
Sachs, Hillhouse Investment, Zhong'an Insurance, on
Headquarters Q1 2021
China Post Finance, China Post Fund, etc http://www.cninfo.com.cn.
June 15, Company China Life Pension, JPMorgan Chase, Loyal Know the On June, 17, 2021, Log
By phone Institution
2021 Conference Valley Capital, TF International Securities, Company’s Sheet No. 2021-005 on
53
TCL Technology Group Corporation Annual Report 2021
Room in Standard Chartered Bank, CITIC Securities, business Investor Relations Activities
Shenzhen China Securities, China Fund, China Re-Asset on June 15, 2021 disclosed
Headquarters Management, Optimas Capital Limited etc. on
http://www.cninfo.com.cn.
Know the business On July, 16, 2021, Log
Company Goldman Sachs, Hillhouse Capital, E Funds,
situation and Sheet No. 2021-006 on
Conference Xintai Life Insurance, OTT Capital, Yingda Asset
July 14, development plan Investor Relations Activities
Room in By phone Institution Management, CIDA Securities, New China Asset,
2021 of TCL Tech in on July 14, 2021 disclosed
Shenzhen Southwest Securities Asset Management, China
the first half of on
Headquarters Fund etc.
2021 http://www.cninfo.com.cn.
Know the business On August, 12, 2021, Log
Hillhouse Investment, Goldman Sachs (Asia),
situation and Sheet No. 2021-007 on
Perseverance Asset Management, China Life
August 10, Shangri-La By visit - development plan Investor Relations Activities
Institution Pension, China Life Asset Management, CCB
2021 Shenzhen phone call of TCL Tech in on August 10, 2021
Pension Management, Morgan Huaxin Fund,
the first half of disclosed on
Taikang Pension, Tian'an Life, E Funds, etc
2021 http://www.cninfo.com.cn.
CICC, Zhongbao Ideal Investment Management On October, 29, 2021, Log
Company Know the business
Co., Ltd., Western Securities, Sealand Securities, Sheet No. 2021-008 on
Conference situation and
October 27, Morgan Stanley, September 1st Conference, Investor Relations Activities
Room in By phone Institution development plan
2021 Zhejiang Shaoxia Investment Management Co., on October 27, 2021
Shenzhen of TCL Tech in
Ltd., CITIC Securities, TX Capital, Guosheng disclosed on
Headquarters Q3 2021
Securities, etc http://www.cninfo.com.cn.
54
TCL Technology Group Corporation Annual Report 2021
Part IV Corporate Governance
I. General information of Corporate Governance
Since listed, in accordance with the Company Law, the Securities Law, the Code of Corporate Governance
for Listed Companies, Rules Governing the Listing of Shares on Shenzhen Stock Exchange and the
Self-regulatory Guidelines of Shenzhen Stock Exchange for Listed Companies No. 1 - Standardized Operation of
Listed Companies on the Main Board and other relevant laws and regulations, the Company has continued to
improved its governance structure and further standardized its operations to comply with the requirements of
related laws and regulations.
During the Reporting Period, the Company pushed ahead with its corporate government work in many
aspects. At present, the Company has established an organizational structure that meets the needs of the
Company's business scale and operation and management, reasonably set up departments and posts, scientifically
plan responsibilities and duties and build an internal control system that enables employees to performs their
duties, assumes their responsibilities, work and supervise each other. The Company has a complete internal audit
and internal control system, especially in terms of internal audit, with a clarified structure and clear
responsibilities defined, which can effectively prevent Group risks.
The board of directors of the Company sets up four dedicated committees: strategy committee, audit
committee, nomination committee and remuneration and appraisal committee to provide advice and suggestions to
the board of directors to ensure the board meetings and decision-making in a professional and efficient manner.
The board of supervisors perform their duties diligently and conscientiously. The supervisors investigate issues at
various sites, take the initiative to put forward management suggestions, which effectively improve the internal
governance of the Company. The Company has continuously improved its information disclosure management
and investor relations management through innovative management system. The Company actively arranges
directors, supervisors, senior managers and heads of relevant departments to participate in the dedicated training
organized by regulators and associations, effectively promotes the management's learning and understanding of
relevant laws, regulations and documents on the governance of listed companies, strengthens the management's
self-discipline capacity, make them diligently perform their duties, and effectively safeguards the interests of all
shareholders, especially small and medium-sized shareholders. The Company has successively launched employee
55
TCL Technology Group Corporation Annual Report 2021
stock incentive plans with the participation of middle and senior managers and excellent employees, further
improving corporate performance and continuous improvement of its value. The Company is devoted to public
charitable undertakings and actively participates in social public charitable donations. Thanks to these measures,
the Company takes a lead in corporate governance in the industry.
Currently, there is no difference between the actual status of the Company’s corporate governance structure
and the standard documents on the corporate governance for listed companies published by China Securities
Regulatory Commission. The names of the policies are shown in the following table and all the policies have been
published on www.cninfo.com.cn.
Category of rules Title of rules
Articles of Association The Articles of Association of TCL Technology Group Corporation
The Dividend Rules of TCL Corporation
Dividend rules The Shareholder Reward Plan of TCL Technology Group Corporation for the Next Three Years
(2020-2022)
The Rules Governing the Shareholdings of Directors, Supervisors and Senior Management in TCL
Corporation and Changes therein
The Rules Governing the Registration of Information Insiders of TCL Corporation
The Accountability Rules for Material Errors in Annual Report Disclosure of TCL Corporation
The Rules Governing External Users of Information of TCL Corporation
Information disclosure
The Rules Governing Investor Relations of TCL Corporation
policy
The Work Rules for Independent Directors Concerning Annual Reports of TCL Corporation
The Reception and Promotional Work Rules of TCL Corporation
The Rules Governing Internal Reporting of Significant Information of TCL Corporation
The Work Rules for the Board Secretary of TCL Corporation
The Rules Governing Information Disclosure of TCL Corporation
Governance and operation The Rules of Procedure for the General Meeting of TCL Technology Group Corporation
rules The Rules of Procedure for the Supervisory Committee of TCL Technology Group Corporation
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TCL Technology Group Corporation Annual Report 2021
The Rules of Procedure for the Board of Directors of TCL Technology Group Corporation
The Work Rules for the Independent Directors of TCL Corporation
The Specific Work Rules for the CEO of TCL Corporation
The Rules of Procedure for the Audit Committee under the Board of Directors of TCL Corporation
The Work Procedures for the Annual Audit by the Audit Committee under the Board of Directors of
TCL Corporation
The Rules of Procedure for the Remuneration and Appraisal Committee under the Board of Directors
of TCL Corporation
The Rules of Procedure for the Nomination Committee under the Board of Directors of TCL
Corporation
The Rules of Procedure for the Strategy Committee under the Board of Directors of TCL
Corporation
The Rules Governing Major Investments of TCL Corporation
The Rules Governing the Use of Raised Funds of TCL Technology Group Corporation
The Internal Control Rules for Venture Capital of TCL Corporation
The Rules Governing Securities Investment of TCL Technology Group Corporation
The Internal Control Rules for Investment in Derivative Financial Instruments of TCL Technology
Group Corporation
Internal control rules The Majority-Owned Subsidiary Management Measures of TCL Corporation
The Rules Governing the Related-Party Transactions of TCL Corporation
The Rules Governing the Guarantees Provided for External Parties of TCL Technology Group
Corporation
The Internal Control Rules of TCL Corporation
The Internal Audit Charter of TCL Corporation
The Internal Control Evaluation Rules of TCL Corporation
The following rules are revised during the Reporting Period and relevant rules are disclosed on http://www.cninfo.com.cn:
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TCL Technology Group Corporation Annual Report 2021
Title of rules
The Articles of Association of TCL Technology Group Corporation
Revised
The Rules of Procedure for the Board of Directors of TCL Technology Group Corporation
Is there any material incompliance with the regulatory documents issued by the CSRC governing the governance of listed
companies?
□ Applicable √ Not applicable
There is no material incompliance with the regulatory documents issued by the CSRC governing the governance of listed companies.
II The Company’s Independence from Its Controlling Shareholder in Business, Personnel,
Asset, Organization and Financial Affairs
□ Applicable √ Not applicable
III Horizontal Competition
□ Applicable √ Not applicable
IV. Annual and Extraordinary General Meetings Convened during the Reporting Period
1. General Meetings Convened during the Reporting Period
Investor
Meeting Type participati Date of the meeting Date of disclosure Resolutions of the meeting
on ratio
All proposals were adopted. Please refer to
Annual the Notice on Resolutions of General Meeting
The 2020 Annual
general 27.24% April 30, 2021 May 6, 2021 of Shareholders in 2020 disclosed on
General Meeting
meeting www.cninfo.com.cn on May 6, 2021 (Notice
No.: 2021-046)
All proposals were adopted. Please refer to
The First
Extraordinary the Notice on the 1st Extraordinary General
Extraordinary
general 30.11% May 13, 2021 May 14, 2021 Meeting of Shareholders in 2021 disclosed on
General Meeting
meeting www.cninfo.com.cn on May 14, 2021 (Notice
of 2021
No.: 2021-052)
All proposals were adopted. Please refer to
The Second
Extraordinary the Notice on the 2nd Extraordinary General
Extraordinary
general 20.08% June 7, 2021 June 8, 2021 Meeting of Shareholders in 2021 disclosed on
General Meeting
meeting www.cninfo.com.cn on June 8, 2021 (Notice
of 2021
No.: 2021-065)
The Third Extraordinary All proposals were adopted. Please refer to
Extraordinary general 13.99% July 6, 2021 July 7, 2021 the Notice on the 3rd Extraordinary General
General Meeting meeting Meeting of Shareholders in 2021 disclosed on
58
TCL Technology Group Corporation Annual Report 2021
of 2021 www.cninfo.com.cn on July 7, 2021 (Notice
No.: 2021-080)
All proposals were adopted. Please refer to
The Fourth
Extraordinary the Notice on the 4th Extraordinary General
Extraordinary
general 22.11% August 25, 2021 August 26, 2021 Meeting of Shareholders in 2021 disclosed on
General Meeting
meeting www.cninfo.com.cn on August 26, 2021
of 2021
(Notice No.: 2021-102)
All proposals were adopted. Please refer to
The Fifth
Extraordinary the Notice on the 5th Extraordinary General
Extraordinary December 20, December 21,
general 18.17% Meeting of Shareholders in 2021 disclosed on
General Meeting 2021 2021
meeting www.cninfo.com.cn on December 21, 2021
of 2021
(Notice No.: 2021-131)
Note: Investor participation ratio refers to the share proportion of investors who attend the meeting to the Company’s total shares.
2. Extraordinary General Meetings Convened at the Request of Preference Shareholders with Resumed
Voting Rights
□ Applicable √ Not applicable
V. Performance of Duty by Independe nt Directors in the Reporting Period
1. General information
Increas Decreas
Beginnin Granted Other
e in the e in the Ending
g Share restricte increas Reason
Nam Incumbent Gen Start of End of Reporti Reporti shareho
Office title Age sharehold optio d e/decre for
e /Former der tenure tenure ng ng lding
ing n shares ase change
Period Period (share)
(share) (shares) (share)
(share) (share)
Li 4/19/20
Chairman Not
Dong 02 11/12/2 813,575, 813,57
Incumbent Male 64 - - - - - applica
shen 6/20/20 023 470 5,470
CEO ble
g 05
Lian
Vice Not
g 11/13/2 11/12/2
Charmian of Incumbent Male 40 - - - - - - - applica
Weih 020 023
the Board ble
ua
Not
Du Fem 3/19/20 11/12/2 417,73
Director Incumbent 51 417,730 - - - - - applica
Juan ale 18 023 0
ble
JinX 1/25/20 11/12/2 521,99 Not
Director Incumbent Male 67 521,997 - - - - -
uzhi 19 023 7 applica
59
TCL Technology Group Corporation Annual Report 2021
Senior Vice 8/13/20 ble
President 15
11/13/2
Director
020
Shen Not
11/12/2
Haop Incumbent Male 59 - - - - - - - applica
Senior Vice 11/14/2 023
ing ble
President 020
9/1/201
Director
7
Not
Liao Board 4/23/20 11/12/2 229,59
Incumbent Male 41 229,596 - - - - - applica
Qian Secretary 14 023 6
ble
Senior Vice 8/27/20
President 20
Not
Liu 5/13/ 4/13/20
Director Incumbent Male 43 - - - - - - - applica
Kun 2021 22
ble
Not
Yu Independent 11/13/2 11/12/2
Incumbent Male 74 - - - - - - - applica
Yong director 020 023
ble
Not
Chen Independent 11/13/2 11/12/2
Incumbent Male 65 - - - - - - - applica
Shiyi director 020 023
ble
Wan
Not
Lian Independent 11/13/2 11/12/2
Incumbent Male 42 - - - - - - - applica
gyon director 020 023
ble
g
Liu Not
Independent 9/1/201 11/12/2
Xunc Incumbent Male 63 - - - - - - - applica
director 7 023
i ble
Chairman of
He Not
the 9/2/201 11/12/2
Zhuo Incumbent Male 56 - - - - - - - applica
Supervisory 5 023
hui ble
Committee
Qiu Not
Fem 9/1/201 11/12/2
Haiy Supervisor Incumbent 47 - - - - - - - applica
ale 4 023
an ble
Mao Employee Incumbent Male 41 9/1/201 11/12/2 128,979 - - - - - 128,97 Not
60
TCL Technology Group Corporation Annual Report 2021
Tian Supervisor 7 023 9 applica
xiang ble
Wan
Not
g 8/9/202 11/12/2 157,66
COO Incumbent Male 47 157,661 - - - - - applica
Chen 1 023 1
ble
g
Not
Li Fem 8/9/202 11/12/2
CFO Incumbent 49 97,709 - - - - - 97,709 applica
Jian ale 1 023
ble
Senior Vice 9/1/201
Yan Not
President 4 11/12/2 1,018,17 1,018,1
Xiaol Incumbent Male 55 - - - - - applica
12/6/20 023 6 76
in CTO ble
12
816,147, 816,14
Total -- -- -- -- -- -- - - - - - --
318 7,318
During the reporting period, any resignation of directors and supervisors and dismissal of senior managers during their term of
office?
□ Yes √ No
Change of Directors, Supervisors and Senior Management
√ Applicable □ Not applicable
Type of
Name Office title Date of change Reason for change
change
Non-executive Nominated by Wuhan Optics Valley Industrial Investment Co.,
Liu Kun Elected May 13, 2021
Director Ltd., a shareholder with an over-3% stake in the Company
Resignatio Resigned COO and CFO due to job changes, but still holding
Du Juan COO and CFO August 9, 2021
n the role of non-executive director
Wang Chief Operation Appointm
August 9, 2021 Nominated by Chairman and CEO Li Dongsheng.
Cheng Office (COO) ent
Chief Financial Office Appointm
Li Jian August 9, 2021 Nominated by Chairman and CEO Li Dongsheng
(CFO) ent
2. Positions
Professional background, major work experience and current holds the post in the Company of incumbent director, supervisor an d
senior manager:
Mr. Li Dongsheng, born in July 1957, the founder of TCL who currently serves as TCL Tech’s Chairman
and CEO; he was elected as a delegate to China’s 16th National Congress of the CPC and a deputy to the 10th,
11th, 12th and 13th National People’s Congress. Mr. Li holds a number of prestigious positions: Vice Chairman of
61
TCL Technology Group Corporation Annual Report 2021
All China Federation of Industry and Commerce (ACFIC), Honorary President of China Video Industry
Association, Vice Chairman of China Commerce of International Chamber, President of Guangdong Provincial
Enterprise Confederation, President of Guangdong Provincial Association of Entrepreneurs, First President of
China Manufacturing Innovation Alliance, Honorary President of South China University of Technology
Education Development Foundation, Vice President of Alumni Association South China University of Technology,
Member of the Council of South China University of Technology, Visiting Professor in Wuhan University and
Honorary Professor in Beijing Institute of Technology. From 1982 to 1985, he served as Technician, Workshop
Manager and Production Director in TTK Household Appliances TCL Technology Group Corporation Annual
Report 2020Co., Ltd.; from 1985 to 1986, he served as First General Manager of TCL Communication Devices
Company; from 1986 to 1989, he served as Director of the Introduction Department in Guangdong Huizhou
Industrial Development Corporation; from 1990 to 1993, he served as Deputy General Manager, Deputy Secretary
of the Party Committee and Secretary of the Youth League Committee of Huizhou Electronic Communication
Corporation; from 1993 to 1996, he served as General Manager of TCL Electronics Group; from 1996 to 2002, he
served as Chairman and President of TCL Corporation and in 2002; from April 2002 to January 2004, he served as
Chairman and President of TCL Corporation; from January 2004 till now, he serves as Chairman and CEO of TCL
Technology Group Corporation.
Mr. Liang Weihua, Vice Chairman of TCL TECH. He was born in March 1981. He holds a master's degree
and is a Party member. He graduated from the Department of Sociology of the School of Government, the Sun
Yat-sen University, in July 2003 and graduated from the Economics and Management School of Wuhan
University in July 2003 and obtained the MBA degree in December 2012. Currently, he serves as Deputy General
Manager and director at Huizhou Investment Holding Co., Ltd. From July 2003 to December 2010, he worked as
Assistant Manager of Enterprise Management Department and Administration Department of Huizhou Investment
Management Company. From December 2010 to December 2011, he took the post of Executive Deputy General
Manager of Huidong County Hongyuan Water Supply Co., Ltd. From December 2011 to June 2016, he served as
the General Manager of Huidong County Hongyuan Water Supply Co., Ltd. (and participated in the Special
Seminar for Young and Middle-aged Cadres at Section Chief Rank in Huizhou City to Learn and Implement Spirit
of Third Plenary Session of the 18th CPC Central Committee (Zhong Qing Class 2) from May to August, 2014).
From June 2016 to the present, he has taken office as Deputy General Manager of Huizhou Investment Holding
Co., Ltd. (and also served as a director of the company since August 2016). Since March 2017, he has been a
62
TCL Technology Group Corporation Annual Report 2021
director of Huizhou Financing Guarantee Company and Utrust Inclusive Finance (Huizhou) Financing Guarantee
Co., Ltd. From April 2017, he was a director at Truly (Huizhou) Smart Display Limited. Since October 2019, he
has been Chairman and General Manager of Huizhou New Materials Industry Park Investment and Construction
Co., Ltd. Since November 2020, he has held office as Vice Chairman of TCL Technology Group Corporation and
its consolidated subsidiaries, except where the context otherwise requires. He became Chairman and General
Manager of Huizhou Innovative Investment Co., Ltd. on November 19, 2020; In June 2021, he was appointed as
Deputy General Manager of Huizhou State-Owned Asset Investment Group.
Ms. Du Juan currently serves as non-executive director at TCL TECH. Born in May 1970, she graduated
from the Department of Investment atZhongnan University of Economics and Law and obtained an EMBA from
CKGSB. From July 1991 to May 1999, she worked at CCB Huizhou Branch. In May 1999, she joined TCL
Corporation and served as General Manager of the Settlement Center of TCL Corporation and General Manager
of TCL Financial. From October 2014 to May 2021, she served as President and Chairman of TCL Financial
Holdings Group (Guangzhou) Co., Ltd. From July 2016 to February 2018, she served as Vice President of TCL
Corporation. From March 2018 to August 2021, she served as Chief Operating Officer (COO) of TCL TECH.
From January 2019 to August 2021, she concurrently served as Chief Financial Officer (CFO) of TCL TECH.
From October 2019 to October 2021, she was appointed as non-executive director of the Bank of Shanghai Co.,
Ltd. From August 2021 until now, she serves as the director and general manager of TCL Industrial Holdings Co.,
Ltd. and the chairman and executive director of the board of directors at TCL Electronic Holdings Co., Ltd.
Mr. JinXuzhi currently serves as Executive Director and Senior Vice President of TCL Tech, as well as CEO
and Director of TCL CSOT, Chairman of the Board of Wuhan CSOT and Chairman of the Board of Wuhan China
Star Optoelectronics Semiconductor Display Technology Co., Ltd. Born in September 1955, he obtained his
Master’s Degree in Material Engineering from Yonsei University in South Korea and MBA from McGill
University. He worked at LG Semiconductor Co., Ltd. and served as Deputy General Manager in LG Display
(formerly known as LG Philips LCD) and Head of the IT Business Division. From April 2009 to March 2010, he
served as Senior Consultant at Fuhrmeister Electronics. He joined TCL Corporation in March 2010 and served as
Senior Vice President, President and CEO of TCL CSOT and General Manager of Wuhan CSOT.
Mr. Shen Haoping, Executive Director and Senior Vice President of TCL TECH. Born in 1962, he holds a
bachelor's degree. He is a Senior Engineer receiving a special allowance from the State Council. At present, he
serves as Vic Chairman and General Manager of Tianjin Zhonghuan Semiconductor Co., Ltd. and Deputy
63
TCL Technology Group Corporation Annual Report 2021
Secretary of the Party Committee and General Manager of Tianjin Zhonghuan Electronics and Information Group
Co., Ltd. He used to work as Chairman and Deputy General Manager of Tianjin Zhonghuan Semiconductor Co.,
Ltd.
Mr. Liao Qian currently serves as Executive Director, Senior Vice President, Chief of Staff and Board
Secretary of TCL TECH. He obtained a Master’s Degree and holds the Occupational Qualification Certificate of
the People’s Republic of China for Law. From August 2006 to February 2014, he worked at
GuotaiJunanInternational Holdings Co., Ltd. and was engaged in the investment banking business in Hong Kong
and Mainland China. Joining TCL Corporation in March 2014, he is in charge of strategic planning, strategic
investment and matters in relation to domestic and overseas capital markets. He is also Chairman of TCL
Technoly Electronics(Huizhou)Co.,Ltd. and CDOT (0334.HK); Vice Chairman of the Board of Tianjin 712
Communication & Broadcasting Co., Ltd. (603712.SH), Independent Director of Jiawei Renewable Energy Co.,
Ltd. (300317.SZ) and Director of Tianjin Zhonghuan Semiconductor Co., Ltd. (002129.SZ).
Mr. Liu Kun, non-executive director, graduated from Wuhan University in 2000 (formerly Wuhan Technical
University of Surveying and Mapping) majoring in geophysics. Now, he acts as the Deputy General Manager of
Hubei Science and Technology Investment Group, presiding over setting up the Group's industrial investment
company and the industrial investment system. As a major participant in provincial and municipal major industrial
investments, he has led the investment of Wuhan CSOT, Yangtze Memory, Wuhan Industrial Technology Research
Institute, Xiaomi funds and other projects in recent years. He is also a member of the Investment Committee of
industrial funds such as the master fund of China Information Communication Technology Group Corporation,
Xiaomi fund and China Unicom 5G fund.
Mr. Gan Yong, independent director of TCL TECH., Professor Senior Engineer, metallurgist and materials
scientist, academician of the Chinese Academy of Engineering (CAE) (2001), and doctoral supervisor. He serves
as Director of the National Advisory Committee on New Materials Industry Development, Honorary President of
the Association of China Rare Earth Industry (ACREI), and President of the Chinese Society for Metals (CSM). In
June 2010, he was elected Assistant Dean of the CAE and became a member of the 12th National Committee of
the Chinese People's Political Consultative Conference (CPPCC) and Deputy Director of the Committee of
Population, Resources and Environment of the CPPCC.
Mr. Chen Shiyi, independent director of TCL TECH. He was born in Tiantai, Zhejiang in October 1956. He
started to work in July 1987. His titles include Doctor of Science, doctoral supervisor, academician of the Chinese
64
TCL Technology Group Corporation Annual Report 2021
Academy of Sciences (CAS) and the World Academy of Sciences (TWAS), and former principal of the Southern
University of Science and Technology (SUSTech). Now he serves as Chair Professor of the SUSTech,
Co-president of the Southern University of Science and Technology Education Foundation, Vice President of the
11th Council of the Chinese Society of Theoretical and Applied Mechanics (CSTAM), Vice President of the 2nd
Council of the China Engineering Education Accreditation Association (CEEAA), member of the Standing
Committee of the 6th Shenzhen Municipal Committee of the CPPCC, and Vice Chairman of the 6th Committee of
the Shenzhen Municipal Science and Technology Association.
Mr. Wan Liangyong, independent director of TCL TECH. Born in 1979, he is a Party member who joined
the "National Leading Accounting Talent" of the Ministry of Finance of the People's Republic of China. He is also
a council member of the Accounting Society of China (ASC), Vice President of the Branch of Engineering
Institutions of Higher Education of the ASC, and independent director of multiple companies, including Wens.
Mr. Liu Xunci, independent director of TCL TECH., professor, and Top Talent in Huizhou City. He was
born in Shaoyang, Hunan Province, in September 1959. He holds a master's degree in Economics. In September
1976, he became an educated urban young man working in the countryside. In July 1983, he started to work upon
graduation. He taught at the Hunan Agricultural University and the Huizhou University as a lecturer, associate
professor, and professor. He is an expert of the Decision-making Consultative Committee.
Mr. He Zhuohui, Chairman of the Supervisory Committee of TCL TECH. Born in July 1966, he serves as
Full-time Deputy Secretary and Director in Huizhou Investment Holdings Co., Ltd. From August 1991 to June
1995, he served as Deputy Director of the General Office and Director of the Office in China Construction Bank
Huiyang Branch; from June 1995 to August 2008, he served as Manager at Renchengchang (Huizhou) Investment
Co., Ltd.; from August 2008 to September 2009, he served as General Manager of Huizhou Investment Holdings
Asset Management Co., Ltd.; from September 2009 to December 2012, he served as Manager of the Management
and Development Department in Huizhou Investment Holdings Co., Ltd. and Deputy General Manager and
Director of Huizhou Fairway Investment and Construction Co., Ltd.; from December 2012 till now, he serves as
Full-time Deputy Secretary at Huizhou Investment Holdings Co., Ltd.; from February 2014 till now, he serves as
Director at Huizhou Investment Holdings Co., Ltd. (from April 2010 to January 2017, he concurrently served as
Director of the First and Second Session of the Board of Huizhou Fairway Investment and Construction Co., Ltd.;
from August 2015, he concurrently serves as Chairman of the Fifth and Sixth Supervisory Committees of TCL
Corporation).
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TCL Technology Group Corporation Annual Report 2021
Ms. Qiu Haiyan, Supervisor of TCL TECH. Born in December 1975, she obtained her Bachelor’s Degree
from the Central Radio & TV University in 2011. She is an accountant and member of the Communist Party of
China. From July 1995 to March 1998, she served as a finance officer in Huizhou Zongli Real Estate Company;
from March 1998 to June 2002, she served as a finance officer at Huizhou Trust Investment Company; from June
2002 till now, she serves as Accountant, Deputy Manager and Manager of the Finance Department in Huizhou
Investment Holdings Co., Ltd.; from February 2014 till now, she serves as Workers’ Director in Huizhou
Investment Holdings Co., Ltd. (from June 2009 to February 2013, she concurrently served as Supervisor at
Huizhou Fairway Investment and Construction Co., Ltd.; from June 2013 to May 2018, she concurrently served as
Director in Huizhou Investment Holdings Asset Operation Co., Ltd.; from March 2014, she concurrently serves as
Workers’ Representative Director at Huizhou Investment and Development Co., Ltd.; from April 2014, she
concurrently serves as Supervisor of the Fifth, Sixth and Seventh Supervisory Committees of the Company).
Mr. Mao Tianxiang, Employee Supervisor of TCL TECH. Now, he is Deputy Secretary of the Party
Committee, Assistant President, and Head of the Audit and Supervision Department of TCL TECH. He was born
in January 1980 and graduated from Guangxi University with a Bachelor degree in July 2003. From July 2003 to
June 2005, he served as Secretary at China Telecom Guangxi Guilin Company; from July 2005 to November 2007,
he served as Supervisor of PR and Communications in the Strategic OEM Business Division and Officer in the
President’s Office in the Company; from November 2007 to June 2009, he served as Deputy Head of the Legal
Section and Head of the General Section in Huizhou Auditing Bureau; from June 2009 to August 2014, he served
as Deputy Director and Deputy Director of the Divisional Level in the Law Enforcement Inspection Office and the
Efficacy Inspection Office of Huizhou Discipline Committee. He has been working in the Company since
September 2014. He served as Deputy Director of the Party-Masses Work Department in the Company and
Secretary of the Youth League Committee of the Company; from August 2015 to January 2016, he concurrently
served as Acting General Manager of the Electronic Device Business Division in Techne Corporation; in
November 2016, he was elected as Member of the Party Committee and Deputy Secretary of the Discipline
Committee of TCL Corporation; in February 2017, he served as Head of the Audit and Supervision Department.
From March 2017 to December 2018, he concurrently served as General Manager of TCL Resource Investment
Company. From July 2019 to July 2020, he concurrently served as Auditor General of TCL CSOT. Since 2019, he
has successively been a Supervisor of Tianjin 712 Communication & Broadcasting Co., Ltd. (603712.SH), the
Chairman of the Supervisory Committee of Highly Information Industry Co., Ltd., and the Chief Supervisor of
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TCL Technology Group Corporation Annual Report 2021
TCL Financial Co., Ltd. Since October 2020, he has been Chairman of the Supervisory Committee of Tianjin
Zhonghuan Semiconductor Co., Ltd. (002129.SZ); since October 2020, he has been Chairman of the Supervisory
Committee of Tianjin Printronics Circuit Corporation (002134.SZ); since December 2020, he has been Assistant
President, Head of the Audit and Supervision Department, Deputy Secretary of the Party Committee and Secretary
of the Discipline Inspection Committee of TCL TECH.
Mr. Wang Cheng, COO of TCL TECH. Born in 1974, MBA, EMBA from the University of Texas at
Arlington. Since joined TCL in 1997 and successively served in multiple management positions at TCL
multimedia overseas business, human resources director and senior vice president of TCL Group. He once worked
as the CEO of TCL Electronics from October 2017 to August 2021, and CEO of TCL Industrial Holdings from
January 2019 to August 2021. From August 2021, he was appointed as COO of TCL TECH.
Ms. Li Jian, CFO of TCL TECH. Born in 1972, she has an MBA from MIT. Joined TCL in 2004,
successively serving as the capital director of TCL Multimedia Technology Holding Co., Ltd., the deputy general
manager and general manager of TCL Group Finance Co., Ltd., and now serves as the chairman of TCL
Technology Group Finance Co., Ltd. From August 2021, she is appointed as CFO of TCL TECH.
Mr. Yan Xiaolin, Professor Senior Engineer, serves as Chief Technology Officer (CTO) and Senior Vice
President of TCL Technology Group Corporation and its consolidated subsidiaries, except where otherwise stated,
and Dean of the Wuhan TCL Industrial Technology Research Institute, Ltd.; Executive Director of TCL
Electronics (Huizhou) Co., Ltd., director of TCL CSOT, and Chief Scientist of TCL CSOT; Chairman of
Guangdong Juhua and China Ray, director of Kateeva, an American "printed display equipment" company,
Chairman of the International Electrotechnical Commission (IEC)/TC110, and Vice Chairman and Asian President
of the Organic and Printed Electronics Association (OE-A). He is an expert of the National Advisory Committee
on New Materials Industry Development and initiator of the New Display Direction of the National "Key New
Materials R&D and Application" Key Project (2030), the New Display Direction of the "Special Project of New
Display and Strategic Electronic Materials" of the National Key R&D Plan of the 14th Five-Year Plan, the New
Display Direction of the "Key Project of Strategic and Advanced Electronic Materials" of the National Key R&D
Plan of the 13th Five-Year Plan, and the New Display Direction of "863" of the 12th Five-Year Plan of the
Ministry of Science and Technology of the People's Republic of China. He is also a Leading Talent in Scientific
and Technological Innovation of the Special Support Plan for High-level Talent of the Organization Department of
the Central Committee of the CPC and Young Expert with Outstanding Contribution to China of the National
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TCL Technology Group Corporation Annual Report 2021
"Hundred-Thousand-Ten Thousand Talent Project.
Positions held at the shareholding entity
√ Applicable □ Not applicable
Any pay received
Office title at the
Name Name of shareholding entity Start of tenure End of tenure from the
shareholding entity
shareholding entity
Ningbo JiutianLiancheng Equity
Representative appointed
Li Dongsheng Investment Partnership (Limited August 2014 Incumbent No
by the executive partner
Partnership)
Liang Weihua Huizhou Investment Holding Director, deputy general August 2016 Incumbent Yes
Co., Ltd. manager
Huizhou Investment Holding Full-time Deputy
He Zhuohui December 2012 Incumbent Yes
Co., Ltd. Secretary and Director
Huizhou Investment Holding
Qiu Haiyan Workers’ Director February 2014 Incumbent Yes
Co., Ltd.
Notes to
positions held at
Not applicable
the shareholding
entity
Positions held at other entities
√ Applicable □ Not applicable
Office title at other Pay received from
Name Name of other entities Start of tenure End of tenure
entities other entities
TCL Industries Holdings Co., Ltd. Chairman Septermber 2018 Incumbent Yes
Independent and
Li Dongsheng
Tencent Holdings Limited non-exeuctive April 2004 Incumbent Yes
director
Huizhou New Material Industrial
Chairman and general
Park Investment and Construction October 2019 Incumbent No
manager
Co., Ltd
Liang Weihua Huizhou Innovation Investment Chairman and general
November 2020 Incumbent No
Co., Ltd manager
Huizhou State-owned Capital Deputy General June 2021 Incumbent Yes
Investment Group Co., Ltd Manager
TCL Industries Holdings Co., Ltd. Director and General September 2018 Incumbent Yes
Du Juan
Manager
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TCL Technology Group Corporation Annual Report 2021
TCL ELECTRONICS HOLDINGS Chairman of the August 2021 Incumbent No
LIMITED board
Getech Ltd. Chairman September 2018 Incumbent No
Shenzhen JiaWei Renewable
Independent director November 2016 Incumbent Yes
Energy Co., Ltd.
Liao Qian
Tianjin 712 Communication & Vice Charmian of the
June 2019 Incumbent No
Broadcasting Co., Ltd. Board
Yu Yong The Chinese Society for Metals President May 2017 Incumbent Yes
China Railway Construction Heavy Independent director April 2019 Incumbent Yes
Industry Corporation Limited
Wan Liangyong
URTRUST Insurance Co., Ltd. Independent director February 2020 Incumbent Yes
Guangdong Goworld Co., Ltd Independent director October 2021 Incumbent Yes
Tianjin 712 Communication &
Mao Tianxiang Supervisor June 2019 Incumbent No
Broadcasting Co., Ltd.
TCL Microchip Technology May 2021 Incumbent
Director No
Wang Cheng (Guangdong) Co., Ltd.
Amlogic (Shanghai) Co., Ltd Director May 2020 Incumbent No
Wuhan NITE Photoelectricity Chairman December 2020 December No
Equipment Manufacture Co., Ltd. 2021
Yan Xiaolin
TCL Microchip Technology Chairman May 2021 Incumbent No
(Guangdong) Co., Ltd.
Notes to
positions held at Other major jobs or concurrrently held jobs and resume
other entities
Punishments imposed in recent three years by the securities regulator on the incumbent directors, supervisors and senior mana gement
as well as those who left in the Reporting Period:
□ Applicable √ Not applicable
3. Remuneration of Directors, Supervisors and Senior Management
Decision-making procedure, determination basis and actual payments of remuneration for directors, supervisors
and senior management:
(I) Decision-making procedure
The allowances for directors and supervisors of the Company were reviewed and approved by the Company
at the second extraordinary general meeting in 2008 and the fourth extraordinary general meeting in 2011. The
remuneration for senior executives is subject to the Company’s remuneration rules.
(II) Determination basis and actual payment
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TCL Technology Group Corporation Annual Report 2021
1. Remuneration or allowance criteria for directors
The remuneration of executive directors: As the Company pays remuneration to executive directors, it shall
not pay additional allowances to them. The remuneration is determined as per the Company’s remuneration
management rules.
The allowances of non-executive directors: RMB160,000/year (tax inclusive):
The allowances of independent non-executive directors: The allowance for each independent non-executive
director is RMB160,000/year (tax inclusive), and the allowance for the convener of the Audit Committee is
RMB200,000/year (tax inclusive).
The Company shall bear the travel expenses arising from the independent directors attending the Company’s
board and general meetings, as well as other expenses arising from non-executive directors and independent
directors’ exercising their functions and powers as per the Company’s Articles of Association.
2. Remuneration or allowance criteria for supervisors
The allowance for the Chairman of the Supervisory Committee is RMB160,000/year (tax inclusive);
The allowance for the shareholder supervisor is RMB100,000/year (tax inclusive);
And as the Company pays remuneration to the employee supervisor, it shall not pay additional allowances to
him/her.
The Company shall bear the travel expense arising from the shareholder supervisors attending the Company’s
Supervisory Committee meetings, general meetings and board meetings (as a non-voting delegate), as well as
other expenses arising from his/her exercising his/her functions and powers as per the Company’s Articles of
Association.
3. Remuneration criteria for senior management
The remuneration of senior management is determined as per the Company’s Articles of Association and
remuneration management rules.
Remuneration of directors, supervisors and senior management for the Reporting Period
Unit: RMB'0,000
Total before-tax
Remuneration
remuneration
Name Office title Gender Age Incumbent/Former from any related
from the
party or not
Company
Chairman of the Board and
Li Dongsheng Male 64 Incumbent 1,312.98 Yes
CEO
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TCL Technology Group Corporation Annual Report 2021
Liang Weihua Vice Charmian of the Board Male 40 Incumbent 0 Yes
Du Juan Director Female 51 Incumbent 690.50 Yes
Director, Senior Vice
JinXuzhi Male 67 Incumbent 1,257.37 No
President
Director, Senior Vice
Shen Haoping Male 59 Incumbent - No
President
Director, Board Secretary
Liao Qian Male 41 Incumbent 587.96 No
and Senior Vice President
Liu Kun Director Male 43 Former 0 No
Yu Yong Independent director Male 74 Incumbent 0 No
Chen Shiyi Independent director Male 65 Incumbent 0 No
Wan Liangyong Independent director Male 42 Incumbent 20 No
Liu Xunci Independent director Male 63 Incumbent 16 No
Chairman of the Supervisory
He Zhuohui Male 56 Incumbent 16 Yes
Committee
Qiu Haiyan Supervisor Female 47 Incumbent 10 Yes
Mao Tianxiang Employee Supervisor Male 41 Incumbent 241.34 No
Wang Cheng COO Male 47 Incumbent 323.46 No
Li Jian CFO Female 49 Incumbent 306.05 No
Yan Xiaolin Senior Vice President, CTO Male 55 Incumbent 1,038.21 No
Total -- -- -- -- 5,819.87 --
Note: 1. As of the end of the Reporting Period, Non-Executive Director Mr. Liang Weihua and Independent Directors Mr. Gan Yong
and Mr. Chen Shiyi hadn’t collected their allowances of RMB181,300 (before tax) respectively.
2. Non-executive director Liu Kun gave up to collect his allowance.
3. Director Shen Haoping collected his allowance from TCL Zhonghuan. Specific data is subject to the notice of TCL Zhonghuan.
VI. Performance of Duty by Directors in the Reporting Period
1. Board of Directors During the Reporting Period
Meeting Date of the meeting Date of disclosure Resolutions of the meeting
All proposals were adopted. Please refer to the Notice on
The 4th meeting of the 7th Resolutions adopted at the 4th Meeting of the 7th Board
February 8, 2021 April 10, 2021
Board of Directors of Directors disclosed on www.cninfo.com.cn on April
10, 2021 (Notice No.: 2021-029)
All proposals were adopted. Please refer to the Notice on
The 5th meeting of the 7th
March 10, 2021 March 11, 2021 Resolutions adopted at the 5th Meeting of the 7th Board
Board of Directors
of Directors disclosed onwww.cninfo.com.cn on March
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TCL Technology Group Corporation Annual Report 2021
11, 2021 (Notice No.: 2021-009)
All proposals were adopted. Please refer to the Notice on
The 6th meeting of the 7th Resolutions adopted at the 6th Meeting of the 7th Board
April 8, 2021 April 10, 2021
Board of Directors of Directors disclosed on www.cninfo.com.cn on April
10, 2021 (Notice No.: 2021-031)
All proposals were adopted. Please refer to the Notice on
The 7th meeting of the 7th Resolutions adopted at the 7th Meeting of the 7th Board
April 27, 2021 April 28, 2021
Board of Directors of Directors disclosed on www.cninfo.com.cn on April
28, 2021 (Notice No.: 2021-041)
All proposals were adopted. Please refer to the Notice on
The 8th meeting of the 7th Resolutions adopted at the 7th Meeting of the 8th Board
May 21, 2021 May 22, 2021
Board of Directors of Directors disclosed on www.cninfo.com.cn on May
22, 2021 (Notice No.: 2021-054)
All proposals were adopted. Please refer to the Notice on
The 9th meeting of the 7th Resolutions adopted at the 7th Meeting of the 9th Board
June 20, 2021 June 21, 2021
Board of Directors of Directors disclosed on www.cninfo.com.cn on June
21, 2021 (Notice No.: 2021-066)
All proposals were adopted. Please refer to the Notice on
The 10th meeting of the 7th Resolutions adopted at the 10th Meeting of the 7th Board
August 9, 2021 August 10, 2021
Board of Directors of Directors disclosed on www.cninfo.com.cn on August
10, 2021 (Notice No.: 2021-093)
All proposals were adopted. Please refer to the Notice on
The 11th meeting of the 7th Resolutions adopted at the 11th Meeting of the 7th Board
September 27, 2021 September 28, 2021
Board of Directors of Directors disclosed on www.cninfo.com.cn on
September 28, 2021 (Notice No.: 2021-105)
All proposals were adopted. Please refer to the Notice on
The 12th meeting of the 7th Resolutions adopted at the 12th Meeting of the 7th Board
October 26, 2021 October 27, 2021
Board of Directors of Directors disc losed on www.cninfo.com.cn on
October 27, 2021 (Notice No.: 2021-113)
All proposals were adopted. Please refer to the Notice on
The 13th meeting of the 7th Resolutions adopted at the 13th Meeting of the 7th Board
November 1, 2021 November 2, 2021
Board of Directors of Directors disclosed on www.cninfo.com.cn on
November 2, 2021 (Notice No.: 2021-116)
All proposals were adopted. Please refer to the Notice on
The 14th meeting of the 7th Resolutions adopted at the 14th Meeting of the 7th Board
December 2, 2021 December 3, 2021
Board of Directors of Directors disclosed on www.cninfo.com.cn on
December 3, 2021 (Notice No.: 2021-126)
72
TCL Technology Group Corporation Annual Report 2021
2. Attendance of Independent Directors at Board Meetings and General Meetings
Attendance of directors at board meetings and general meetings
Total number Board Board
Board
of board Board meetings meetings The director failed to
meetings General
meetings the meetings attended by the attend two
Director attended meetings
director attended on way of director consecutive board
through a attended
eligible to site telecommunica failed to meetings or not
proxy
attend tion attend
Li Dongsheng 11 3 8 - - No 1
Liang Weihua 11 1 10 - - No 6
Du Juan 11 3 8 - - No -
JinXuzhi 11 2 9 - - No -
Shen Haoping 11 1 10 - - No -
Liao Qian 11 3 8 - - No 3
Liu Kun 7 - 7 - - No -
Yu Yong 11 1 10 - - No -
Chen Shiyi 11 1 10 - - No 1
Wan Liangyong 11 1 10 - - No 1
Liu Xunci 11 1 10 - - No 5
3. Objections Raised by Directors on Matters of the Company
Whether directors raised objections on matters of the Company
□ Yes √ No
No such cases in the Reporting Period.
4. Other information about the Performance of Duty by Directors
Whether directors adopted the proposals of the Company
√ Yes □ No
Explanation for the proposal adopted by directors or not
During the reporting period, the directors of the Company diligently performed their duties and obligations in
accordance with the provisions of the Company Law, the Securities Law, the Listing Rules of Shenzhen Stock
Exchange, the Articles of Association, the Rules of Procedure of the Board of Directors and other laws,
regulations and rules, and put forward valuable professional opinions on the internal control and daily operation
decision-making of the Company, which effectively improved the standard operation and scientific
decision-making of the Company. The independent directors of the Company performed their duties
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TCL Technology Group Corporation Annual Report 2021
independently and impartially in strict accordance with the Regulations on the Work of Independent Directors and
relevant laws and regulations, and issued independent and impartial opinions on major matters such as the
Company's private placement, annual profit distribution and annual daily affiliated transaction forecast, effectively
safeguarded the legitimate rights and interests of investors, especially small and medium-sized investors.
VII. Performance of Duties by Dedicated Committees During the Reporting Period
Meeting
Other Objection
s Date of the Important opinions and
Name Members Meeting agenda duties matters (if
convene meeting proposals raised
performed any)
d
The audit committee
carried out its work in
strict accordance with
the Company Law, the
1. 2020 Audit Plan for
regulatory rules of the
Financial Statements of
CSRC, the Articles of
TCL Technology Group
Association and the Not
January 20, 2021 Corporation; -
Rules of Procedure of applicable
2. 2020 Internal Control
the Board of Directors.
Plan of TCL Technology
Upon thorough
Group Corporation;
communication and
discussion, all proposals
were unanimously
Audit Wan Liangyong, adopted.
Commit Chen Shiyi, Du 2
tee Juan
1. 2020 Financial
The audit committee
Report;
carried out its work in
2. Summary Report of
strict accordance with
the Audit Committee
the Company Law, the
under the Board
regulatory rules of the
Regarding the 2020
CSRC, the Articles of
Annual Audit Carried
Association and the Not
March 10, 2021 out by Da Hua Certified -
Rules of Procedure of applicable
Public Accountants
the Board of Directors.
(Special General
Upon thorough
Partnership);
communication and
3. Proposal on the
discussion, all proposals
Reappointment of
were unanimously
DaHua Certified Public
adopted.
Accountants (Special
74
TCL Technology Group Corporation Annual Report 2021
General Partnership) as
the Independent Auditor.
Proposal on adding All proposals were
Not
Chen Shiyi, Wan April 27, 2021 directors to the 7th adopted upon -
Nomina applicable
Liangyong, Liu board of directors. deliberation.
tion
Xunci, Liang 2 Proposal on
Commit All proposals were
Weihua, Liao appointment of Mr. Not
tee August 8, 2021 adopted upon -
Qian Wang Cheng as COO applicable
deliberation.
and Li Jian as CFO.
VIII. Performance of Duty by the Supervisory Committee
Indicate whether the Supervisory Committee found any risk to the Company during its supervision in the Reporting Period.
□ Yes √ No
The Supervisory Committee raised no objections in the Reporting Period.
IX. Employees
1. Number, Functions and Educational Backgrounds of Employees
Number of in-services of the Company as the parent 447
Number of in-services of the Company of major subsidiaries 64,712
Total number of in-services of the Company at the end of period 65,159
Total number of paid employees in the Reporting Period 65,159
Number of retirees to whom the Company as the parent or its
2,449
major subsidiaries need to pay retirement pensions
Functions
Function Employees
Production 43,028
Sales 1,917
R&D and technical 10,517
Financial 799
Administrative 507
Managerial 1,370
Other 7,021
Total 65,159
Educational backgrounds
Educational background Employees
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TCL Technology Group Corporation Annual Report 2021
PhD 255
Master 3,143
Bachelor’s degree 11,916
Junior college and others 4,051
Total 19,365
Note: The “educational backgrounds” section excludes overseasemployees and operating workers.
2. Employee Remuneration Policy
The Company implements the remuneration management principle of “determining position by
responsibilities, determining salary by position and determining remuneration by performance” Fixed income is
determined based on position assessment, variable income is determined based on performance appraisal and a
remuneration distribution mechanism oriented by position and performance is established inside the Company.
3. Employee Training Plans
On September 10, 2000, the Training Department of TCL Headquarters shifted to TCL Training Institute. On
August 16, 2005, TCL Training Institute changed its name to TCL Leadership Development Institute, which
focused on cultivation of management talent and development of leadership. In 2015, the institute has been
upgraded to TCL University. In 2021, to better focus on the business scenario, training talents for the organization,
TCL University was merged into the Organizational Department of the Group, changed its name to the Learning
and Development Group.
The Learning and Development Group shoulders the mission of "empower employees and development of
organization by men". It has unswervingly implemented the "Hawk" Project for more than a decade, cultivated
many excellent management personnel at all levels for enterprises, and supported the development of TC. In the
meantime, to empower the strategy and business, create an atmosphere that fosters the intensive learning and
actively implement the digital transformation, in 2020, T-school launched an online learning platform with more
than 50000 users registered and more than 2300 online courses provided, committed to creating an innovative
experience combined with knowledge, function and social culture learning.
The Learning and Development Group will continue to build a more comprehensive training system and
build a management and professional talent pool that meets the strategic requirements of the Company. In terms of
long-term goals, the Learning and Development Group is committed to increasing the talent pool (i.e. 1:2
managers: talents), both quantitatively and qualitatively, and gradually transforming the talent structure from a
pyramid shape to a spindle.
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TCL Technology Group Corporation Annual Report 2021
4. Labor Outsourcing
□ Applicable √ Not applicable
X. Profit Distributions to Shareholders (in the Form of Cash and/or Stock)
Formation, implementation or adjustment of profit distribution policy, especially cash dividend policy, in the Reporting Period
√ Applicable □ Not applicable
Special explanation of cash dividend policy
In compliance with the Company’s Artic les of Association and
Yes
resolution of general meeting
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and mechanism Yes
Independent directors faithfully performed their duties and played
Yes
their due roles
Non-controlling interests were able to fully express their opinions
Yes
and desires and their legal rights and interests were fully protected
In case of adjusting or changing the cash dividend policy, the
conditions and procedures involved were in compliance with Not applicable
applicable regulations and were transparent
During the Reporting Period, the Company made profits and the parent company’s profits that were eligible forprofit distribut ion for
shareholders were positive, but no cash dividend distr ibution plan was put forward.
□ Applicable √ Not applicable
Final Dividend P lan for the Reporting Period
√ Applicable □ Not applicable
Bonus issue from profit (share/10 shares) 0
Cash dividend/10 shares (RMB) (tax inclusive) 1.50
Bonus issue from capital reserves (share/10 shares) 0
Share base (share) 13,666,683,905
Cash dividends (RMB) (tax inclusive) 2,050,002,585.75
Cash dividends in other forms (e.g. share
629,175,986.4
repurchase) (RMB)
Total cash dividends (including those in other
2,679,178,572.15
forms) (RMB)
Distributable profits (RMB) 8,021,329,354
Total cash dividends (including those in other
forms) as a percentage of total profits to be 100%
distributed (%)
Cash dividend plan
77
TCL Technology Group Corporation Annual Report 2021
Based on the share capital of 13,666,683,905 shares on April 27, 2022 that were eligible for profitdistribution (the total share
capital of 14,030,642,421 shares minus the 363,958,516 shares inthe Company’s special securities account for repurchase that were
not eligible for profit distribution), a cash dividend of RMB1.5 (tax inclusive) per 10 shares was to be distributed to
theshareholders, totaling RMB2,050,002,585.75. Where any changes occur, before the implementation of the dividend plan, to the
share capital of the Company due to any convertible bonds-to-stock programs, share repurchases, exercises of equity incentives,
new share issues in refinancing, etc., the dividend will be adjusted according to the principle of “adjusting the total payout amount
under the same dividend ratio”, subject to the actual payout amount.
Details of profit distribution or capital reserve fund transfer plan
Based on the share capital of 13,666,683,905 shares on April 27, 2022 that were eligible for profitdistribution (the total share
capital of 14,030,642,421 shares minus the 363,958,516 shares inthe Company’s special securities account for repurchase that were
not eligible for profit distribution), a cash dividend of RMB1.5 (tax inclusive) per 10 shares was to be distributed to
theshareholders, totaling RMB2,050,002,585.75. The retained earnings of RMB5,971,326,768.25will carry forward for future
distribution. Meanwhile, there will be no bonus issue from either profit or capital reserves for the year under review. Where any
changes occur, before the implementation of the dividend plan, to the share capital of the Company due to any convertible
bonds-to-stock programs, share repurchases, exercises of equity incentives, new share issues in refinancing, etc., the dividend will
be adjusted according to the principle of “adjusting the total payout amount under the same dividend ratio”, subject to the actual
payout amount.
XI. Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures
for Employees
√ Applicable □ Not applicable
(I) Equity Incentives
The 2019 Restricted Stock Incentive Plan and the TCL Global Innovation Partner Plan
1. On June 20, 2021, the Proposal on the Repurchase and Retirement of Restricted Shares That Were Granted
to Certain Awardees under the 2019 Restricted Stock Incentive Plan But Are Still in Lockup and the Adjustment to
the Repurchase Price was approved at the Ninth Meeting of the Seventh Board of Directors and the Seventh
Meeting of the Seventh Supervisory Committee, which agreed on the repurchase and retirement of restricted
shares that had been granted but were still in lockup to 10 awardees including Zhang Kun due to personal
resignation. At the same time, according to the Company’s implementation arrangement of profit distribution in
2020, the repurchase price granted under the 2019 restricted stock incentive plan would be adjusted from RMB
1.86/share to RMB 1.64/share.
In addition, the Proposal on the Satisfaction of the Unlocking Conditions for the Second Unlocking Period
under the 2019 Restricted Stock Incentive Plan and the Second Global Innovation Partner Plan was approved
upon deliberation. This time, a total of 85 awardees were eligible for unlocking, and the number of restricted
stocks that can be applied for to be unlocked and listed for circulation was 1,351,316, accounting for 0.0096% of
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TCL Technology Group Corporation Annual Report 2021
the Company’s total share capital at that time. The Company’s independent directors issued their independent
opinions of consent, and the Supervisory Committee issued their supervision opinion, with respect to the
aforesaid.
2. On June 24, 2021, the Company disclosed the Reminder on the Shares Unlocked in the Second Unlocking
Period under the 2019 Restricted Stock Incentive Plan and the Second Global Innovation Partner Plan Being
Allowed for Public Trading. The number of restricted shares released from this restriction and listed for
circulation was 1,351,316, and the date of listing and circulation was June 28, 2021.
3. On July 6, 2021, the Proposal on the Repurchase and Retirement of Restricted Shares That Were Granted
to Certain Awardees under the 2019 Restricted Stock Incentive Plan But Are Still in Lockup and the Adjustment to
the Repurchase Price was approved at the Third Extraordinary General Meeting of 2021.
4. On September 11, 2021, the Company disclosed the Announcement on Completing the Repurchase and
Retirement of Some Restricted Shares and Unchanged Share Transfer Price of Convertible Company Bonds. As of
the date of this announcement, the Company had completed the repurchase and retirement of 145,941 restricted
shares in China Securities Depository and Clearing Corporation Limited Shenzhen Branch.
Equity Incentives Granted to Directors and Senior Management
□ Applicable √ Not applicable
Appraisal of and Incentive for Senior Management
During the Reporting Period, the Company carried out performance appraisal and competenceexamination
on managers. The KPI (key performance indicators) system was used for performance appraisal. In respect to the
team led by each manager, the key factors of performance appraisal included phased goals of strategic
transformation and operating indicators of the current period (such as profits, cash flow, products and service
quality); the comprehensive results of the accomplishment of each goal were considered as the main basis for
motivating managers. In that way, corporate strategies were converted into internal management activities through
the process of goal setting, implementation and accomplishment to steer the work orientation of all systems of the
Company and serve the purpose of enhancing the overall efficiency of the Company. Leader examination
consisted of four dimensions of assessment, which included leader performance, competence, experience and
quality (potential, personality and aspiration/values). An annual examination report for leaders was generated
through annual performance assessment, virtual assessment center, 360-degree behavior interviews or online
assessment, supported by key experience, personality or management style assessment, which served as the main
basis for appraising, appointing and dismissing leaders.
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TCL Technology Group Corporation Annual Report 2021
(II) Implementation of Employee Stock Ownership Plan
√ Applicable □ Not applicable
All the valid employee stock ownership plans during the Reporting Period
Proportion to
Funding source
Scope of Number of Total amount of total share capital
Name Changes for implementing
employees employees shares held of listed
the plan
companies
The Third Global The Company's
Partner Plan middle and senior The Company's
management and 1,800 43,859,649 shares Not applicable 0.31% special incentive
outstanding key fund for 2020
staff
2021-2023 The Company's
Employee Stock middle and senior The Company's
113,143,154
Ownership Plan management and 3,600 Not applicable 0.81% special incentive
shares
(Phase I) outstanding key fund for 2021
staff
Shareholdings of Directors, Supervisors and Senior Management under the Employee Stock Ownership Plan during the Reporting
Period
Beginning amount in the Ending amount in the Proportion to total share capital
Name Office title
Reporting Period Reporting Period of listed companies
Chairman of the Board
Li Dongsheng
and CEO
Du Juan Director
Director, Senior Vice
JinXuzhi
President About 15.0466 million About 22.2425
0.16%
Director, Board Secretary shares million shares
Liao Qian
and Senior Vice President
Senior Vice President,
Yan Xiaolin
CTO
Mao Tianxiang Employee Supervisor
Note: The number of shares in the above table is the conversion data according to the announced Employee Stock Ownership Plan,
and the final ownership result shall prevail.
Changes of asset management institutions during the Reporting Period
□ Applicable √ Not applicable
Changes of equity caused by the holder’s disposal share during the Reporting Period
□ Applicable √ Not applicable
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TCL Technology Group Corporation Annual Report 2021
Exercise of shareholder rights during the Reporting Period
□ Applicable √ Not applicable
Other relevant information and explanations of the Employee Stock Ownership Plan during the Reporting Period.
□ Applicable √ Not applicable
Changes of the members of Employee Stock Ownership Plan Management Committee
□ Applicable √ Not applicable
Financial impact of Employee Stock Ownership Plan on the Company during the Reporting Period and related accounting treatment
√ Applicable □ Not applicable
The financial, accounting treatment and taxation involved in the Company's shareholding plan shall be implemented according
to laws and regulations and normative documents on financial systems, accounting standards, taxation systems, etc. The holder of the
shareholding plan shall pay the personal income tax generated due to the shareholding plan according to law, and can choose to sell
the corresponding amount of shares to the shareholding plan to cover personal income tax. The remaining shares will be attrib uted to
individuals.
Termination of Employee Stock Ownership P lan during the Reporting Period
□ Applicable √ Not applicable
Other explanations
□ Applicable √ Not applicable
(III) Other Employee Incentives
□ Applicable √ Not applicable
XII. Construction and Implementation of Internal Control System During the Reporting
Period
1、 Construction and Implementation of Internal Control System
In accordance with the provisions of internal control standard system, the Company establishes, improves
and effectively implements internal controls, reasonably ensures the legal compliance of business management,
asset security, authenticity and integrity of financial statements and relevant information, improves business
efficiency and effectiveness, and promotes the realization of development strategy.
2. Material Internal Control Weaknesses Identified in the Reporting Period
□ Yes √ No
XIII. Management and Control of Subsidiaries by the Company During the Reporting Period
□ Applicable √ Not applicable
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TCL Technology Group Corporation Annual Report 2021
XIV. Internal Control Self-Evaluation Report or Independent Auditor’s Report on Internal
Controls
1. Internal Control Self-Evaluation Report
Disclosure date of the internal control
April 28, 2022
self-evaluation report
Index to the disclosed internal control
http://www.cninfo.com.cn
self-evaluation report
Evaluated entities combined assets as a
96%
percentage of consolidated total assets
Evaluated entities combined revenue as a
95%
percentage of consolidated revenue
Identification standards for internal control weaknesses
Weaknesses in internal controls over Weaknesses in internal controls not
Category
financial reporting related to financial reporting
Material weaknesses: (1) material
violations of the country’s laws or
regulations in the Company’s operating
Material weaknesses: (1) an invalid control activities; (2) any material
environment; (2) fraud of directors, decision-making error that is caused by
supervisors and senior management; (3) any an irrational decision-making procedure
material misstatement of financial reporting and causes material property loss to the
of the current period which is identified by Company; (3) a massive loss of the key
the registered accountants but which the managerial or technical personnel; and
Company failed to report; and (4) invalid (4) frequent negative news coverage that
internal control supervision by the Audit causes great concern for the regulatory
Nature standard
Committee and the internal audit organ. administration and a material long-lasting
Serious weaknesses: A single weakness or a impact on the Company’s brand and
group of weaknesses which are less serious reputation.
than a material weakness but could still Serious weaknesses: A single weakness
cause deviation from the control objectives or a group of weaknesses which are less
Common weaknesses: Other internal control serious than a material weakness but
weaknesses that are neither material nor could still cause deviation from the
serious control objectives
Common weaknesses: Other internal
control weaknesses that are neither
material nor serious
Material weaknesses: misstatements ≥5% of
profit before tax;
Quantitative standard Not applicable
Serious weaknesses: 3% of profit before tax
≤misstatements <5% of profit before tax;
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TCL Technology Group Corporation Annual Report 2021
Common weaknesses: misstatements <3% of
profit before tax
Number of material weaknesses in internal Not applicable
controls over financial reporting
Number of material weaknesses in internal Not applicable
controls not related to financial reporting
Number of serious weaknesses in internal Not applicable
controls over financial reporting
Number of serious weaknesses in internal Not applicable
controls not related to financial reporting
2. Independent Auditor’s Report on Internal Controls
√ Applicable □ Not applicable
Opinion paragraph in the independent auditor’s report on internal controls
In our opinion, TCL Technology Group Corporation maintained, in all material respects, effective internal control over financ ial
reporting as of December 31, 2021, based on the Basic Rules on Enterprise Internal Controls and other applicable rules.
Independent auditor’s report on The Internal Control Audit Report of TCL Technology Group Corporation disclosed at
internal controls disclosed or not http://www.cninfo.com.cn dated April 28, 2022
Disclosure date April 28, 2022
Index to such report disclosed http://www.cninfo.com.cn
Type of the auditor’s opinion Unqualified opinion
Material weaknesses in internal No
controls not related to financial
reporting
Indicate whether any modified opinion is expressed in the independent auditor’s report on the Company’s internal controls.
□ Yes √ No
Indicate whether the independent auditor’s report on the Company’s internal controls is consistent with the internal control
self-evaluation report issued by the Company’s Board.
√ Yes □ No
XV. Self-Examination and Rectification of Special Actions for Listed Company Governance
□ Applicable √ Not applicable
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TCL Technology Group Corporation Annual Report 2021
Part V Environmental and Social Responsibility
I. Major Environme ntal Issues
Whether the listed company and its subsidiaries are major polluters announced by the environmental protection department
√ Yes □ No
Approved
Number Governing Total
Distribution of Discharge total
Name of the Company or Major Way of of discharge discharge Excessive
discharge concentratio discharge
subsidiary pollutants discharge discharge standards (metric discharge
outlets n (mg/L) (metric
outlets (mg/L) ton)
tons/year)
Intermittentl y Not
COD Northwester n 147.5mg/L 260 mg/L 1108 t /
discharged to applicable
1 corner of the
Ammonia Guangming Not
TCL China Star plant area 6.83 mg/L 30 mg/L 51.3 t /
nitrogen Sewage Plant applicable
Optoelectronics Technology
Artificial Not
Co., Ltd. COD Continuousl y 16 mg/L 30 mg/L 60.4 t /
wetland to the applicable
discharged to 1
Ammonia north of the Not
Dongkengshui 0.18 mg/L 1.5 mg/L 0.71 t /
nitrogen plant area applicable
Continuously Not
COD 58mg/L 500mg/L 146.4t 453.6t
discharged to In CSSD applicable
CSSD Environmental
Suzhou China Star
Environmental Technology
Optoelectronics Technology 1
Ammonia Technology Wastewater Not
Co., Ltd. 3.62mg/L 45 mg/L 9.13t 22.68t
nitrogen Wastewater Treatment applicable
Treatment Plant
Plant
Phase 1:
Continuously 120mg/L Not
COD 500mg/L 19.48t 75.69t
discharged to Southeast Phase 2: applicable
Suzhou China Star Suzhou corner of the
12mg/L
Optoelectronics Display Co., Industrial Park 2 plant area /
Phase 1:
Ltd. First Sewage South gate of
Ammonia Treatment 14.4mg/L Not
the plant area
45mg/L 2.31t 5.65t
nitrogen Plant Phase 2: applicable
0.48mg/L
Intermittently 30.5589 64.479 353.55 Not
Wuhan China Star COD Southwestern 400mg/l
discharged mg/l tons tons applicable
Optoelectronics Technology 1 corner of the
Ammonia Intermittently 1.311 35.36 Not
Co., Ltd. plant area 0.9397 mg/l 30mg/l
nitrogen discharged tons tons applicable
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TCL Technology Group Corporation Annual Report 2021
Approved
Number Governing Total
Distribution of Discharge total
Name of the Company or Major Way of of discharge discharge Excessive
discharge concentratio discharge
subsidiary pollutants discharge discharge standards (metric discharge
outlets n (mg/L) (metric
outlets (mg/L) ton)
tons/year)
Wastewater:
COD,
ammonia
nitrogen,
other
characteristic
pollutants DB12/356-2018
TianJinZhonghuan Advanced (total General As per Comprehensive
Not Not
Material&Technology Co., nitrogen, Organized 1 discharge emission Sewage Standard
exceeding applicable
Ltd. total outlet standard Discharge
phosphorus, Standard
pH value,
suspended
matter,
BOD5, flow,
fluoride,
petroleum)
Wastewater:
COD,
ammonia
nitrogen,
other
characteristic
pollutants DB12/356-2018
Tianjin Huan'Ou
(total General As per Comprehensive
Semiconductor Not Not
nitrogen, Organized 1 discharge emission Sewage Standard
Material&Technology Co., exceeding applicable
total outlet standard Discharge
Ltd.
phosphorus, Standard
pH value,
suspended
matter,
BOD5, flow,
fluoride,
petroleum)
Waste gas: General GB16297-1996
As per
Inner Mongolia Zhonghuan Particulate Organized, discharge Comprehensive Not Not
Multiple emission Standard
Solar Material Co., Ltd. matter, unorganized outlet, plant Air Pollutant exceeding applicable
standard
nitrogen area, and roof Emission
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TCL Technology Group Corporation Annual Report 2021
Approved
Number Governing Total
Distribution of Discharge total
Name of the Company or Major Way of of discharge discharge Excessive
discharge concentratio discharge
subsidiary pollutants discharge discharge standards (metric discharge
outlets n (mg/L) (metric
outlets (mg/L) ton)
tons/year)
oxides, of production Standard,
VOCs, workshop GB8978-1996
fluoride Comprehensive
Wastewater: Sewage
COD, Discharge
ammonia Standard
nitrogen,
other
characteristic
pollutants
(total
phosphorus,
pH,
suspended
matter,
BOD5,
fluoride)
Wastewater:
COD,
ammonia GB/T 31962
nitrogen, Water Quality
other Standard for
characteristic Sewage
Zhonghuan Advanced pollutants General As per Discharged into
Not Not
Semiconductor Materials Co., (fluoride, Organized 1 discharge emission Urban Sewers Standard
exceeding applicable
Ltd. total outlet standard GB8978-1996
nitrogen, Comprehensive
total Sewage
phosphorus, Discharge
suspended Standard
matter, pH,
BOD5)
Wastewater: GB 30484-2013
COD, Discharged Discharge
General
Huansheng Solar (Jiangsu) ammonia according Standard for Not Not
Organized 1 discharge Standard
Co., Ltd. nitrogen, to the Battery exceeding applicable
outlet
other standard Industry
characteristic Pollutants
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TCL Technology Group Corporation Annual Report 2021
Approved
Number Governing Total
Distribution of Discharge total
Name of the Company or Major Way of of discharge discharge Excessive
discharge concentratio discharge
subsidiary pollutants discharge discharge standards (metric discharge
outlets n (mg/L) (metric
outlets (mg/L) ton)
tons/year)
pollutants
(fluoride,
total
nitrogen,
total
phosphorus,
suspended
matter, pH)
Wastewater:
COD,
ammonia
nitrogen,
GB 30484-2013
other
Discharged Discharge
characteristic General
Wuxi Zhonghuan Applied according Standard for Not Not
pollutants Organized 1 discharge Standard
Materials Co., Ltd. to the Battery exceeding applicable
(total outlet
standard Industry
nitrogen,
Pollutants
total
phosphorus,
suspended
matter, pH)
Construction and operation of facilities for preventing pollution:
During this Reporting Period, an advanced sewage management system was established by the Company and
its subsidiaries, and regular monitoring and supervision and inspection mechanisms were adopted to ensure the
waste water, waste gas, solid waste and factory noises generated during the operation were emitted and treated
according to national and local laws and regulations.
The Company’s waste water includes domestic waste water and industrial waste water, of which domestic
waste water is discharged into the local municipal sewage treatment pipe network after being pre-treated with oil
separation and septic treatment, and industrial waste water enters different treatment systems according to its
characteristics, and is discharged after physical, chemical and biochemical treatment. The air pollutants produced
by the Company are mainly process waste gas in the production process. For different types of waste gases, the
Company has constructed corresponding waste gas treatment systems, such as a waste gas stripping system, acidic
waste gas treatment system, alkaline waste gas treatment system, organic waste gas treatment system, waste gas
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TCL Technology Group Corporation Annual Report 2021
treatment system for waste water treatment station, etc. for the collection of waste gases through pipelines to the
corresponding waste gas treatment system, where waste gases are discharged at a high altitude after meeting
relative standards. The concentration and total amount of waste water and exhaust gas discharged meet the
relevant national and local standards. The solid wastes generated by the Company include general waste,
hazardous waste and domestic garbage, of which, hazardous wastes are treated by an entrusted qualified
hazardous waste disposal agency according to the regulations; general wastes are recycled and disposed of by a
resource recycling manufacturer after being classified in the plant area; domestic garbage is handed over by the
property company to a domestic garbage landfill for sanitary landfill. All of the above disposals have been carried
out according to laws and regulations. The factory noises generated by the Company come from the mechanical
noises of production and power equipment, including refrigerators, cooling towers, air compressors, fans, various
pumps, etc. The Company reduces the impact of noise on the surrounding environment by the use of low-noise
equipment, vibration reduction, noise reduction, etc., and noise reduction measures such as sound insulation and
sound absorption in the factories and equipment rooms. The monitoring results show that the Company's factory
noise emissions can stably reach the standards.
Environmental Impact Assessment on Construction Projects and Other Environmental Protection Administrative
Licenses
The Company complies with the laws and regulations of environmental impact assessment on construction
projects and other environmental protection administrative licenses.
Emergency Response Plan for Environmental Incidents
The Company has set up an environmental incident emergency organization led by the seniormanagement of
the enterprise and prepared an environmental emergency response plan, which hasbeen filed with the local
environmental protection department in accordance with relevant nationallaws and regulations. In addition,
regularly staff trainings and emergency drills are conducted for environmental incidents according to the plan to
ensure valid and accurate treatment of environmental pollution emergencies.
Environmental Self-Monitoring Program
The Company has formulated an environmental self-monitoring program in accordance with national
regulations, and monitors the discharge of pollutants by automatic monitoring or manual monitoring performed by
a third-party qualified agency. The monitoring plans and annual monitoring reports can be checked on the key
environmental monitoring information platform managed by local environmental authorities or subsidiary
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TCL Technology Group Corporation Annual Report 2021
websites.
Major administrative punishments received with respect to environmental issues in the Reporting Period:
□ Applicable √ Not applicable
Measures taken to reduce its carbon emissions and their effects during the Reporting Period
√ Applicable □ Not applicable
To meet the challenges of global climate change, TCL Technology is committed to green development,
energy saving and emission reduction in all aspects of the Company's operations. TCL technology has effectively
reduced the carbon emissions for business by continuously improving the energy management system, increasing
the utilization of renewable energies, building a green supply chain, and enhancing employee low carbon
awareness. At the same time, TCL Technology actively expands its green industry, and is developing its
photovoltaic semiconductor industry through TCL Zhonghuan’s business, which helps meet the challenges of
climate change.
In terms of efficient energy management, a sound energy management system has been established for the
main industries of TCL Technology and passed the third-party ISO50001 certification. In 2021, TCL CDOT saved
3,915,500 kWh of electricity by improving productivity and other energy management actions. Suzhou CSOT
Plant saved up to RMB 52.16 million by starting the Extreme Kinetic Energy Project, in which extreme frugality
measures were carried out for basic energies such as water, electricity and gas.
To increase the use of renewable energy, TCL Technology Industry actively promotes the laying of roof
photovoltaic systems. Shenzhen CSOT has independently established the largest photovoltaic system among the
industrial parks of South China and continues to expand it by using the existing roof of the plant area with the
principle of “laying as much as possible”. By the end of 2021, the total installed capacity of Shenzhen CSOT
reached 44MW, which can generate 44 million kWh per year, and the annual energy saving is equal to the daily
electricity consumption of 220,000 households. In 2021, Huizhou CSOT Roof Solar Photovoltaic Project
generated 21.5 million kWh.
In terms of supply chain, TCL Technology uses green finance to help member enterprises and upstream and
downstream of the industrial chain to improve the level of green development. In April 2021, TCL Technology
Group Finance Co., Ltd. successfully launched the first green note rediscount business, which is expected to save
nearly RMB 1 million in costs for the enterprise. In November 2021, TCL Technology successfully launched the
first "Green Carbon Chain System” of its supply chain finance based on low-carbon evaluation of enterprises in
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TCL Technology Group Corporation Annual Report 2021
China. The "Green Carbon Chain System" not only saves more financial costs for enterprises, but also motivates
enterprises to carry out a transformation of energy conservation and emission reduction.
To improve employee low-carbon awareness, TCL Technology continues to carry out various knowledge
trainings, experience sharing and theme activities on environmental protection. In August 2021, TCL CSOT
organized a low-carbon and energy-saving publicity month with the theme of “starting from myself to realize
energy saving, consumption reduction, green development, and circular economy”. Twelve activities were carried
out, including publicity and promotion, strengthening of energy-saving awareness, and commendation of
outstanding employees in energy-saving, so as to further enhance the green and low-carbon awareness of all
employees. In December 2021, TCL Technology Group launched the Initiative for All Employees to Promote
“Energy Saving and Carbon Reduction” and to Keep the Spirit of Hard Work, which aims to call on all employees
to practice the green office concept and to create a strong atmosphere of energy saving and carbon reduction
throughout the group.
With the philosophy of sustainable development, TCL Technology Group actively deploys green industries.
TCL Zhonghuan accelerates the production and manufacturing of semiconductor materials, and strengthens the
Company’s national industrial layout with its manufacturing bases in Inner Mongolia, Tianjin and Jiangsu. TCL
Zhonghuan conducts continuous R&D and innovation to reduce the cost of photovoltaic products and promote the
development of the global photovoltaic industry. The Company continues to focus on the development and
integration of two major platforms: G12 large-size silicon wafer and high-efficiency imbricated component
technology, which effectively reduce the Levelized Cost of Electricity and push photovoltaic power generation
forward to the "parity era". The installed capacity of TCL Zhonghuan's wholly-owned photovoltaic project
reached 1.2GW.
In the future, all companies of TCL Technology will continue to forge ahead in sustainable development, and
constantly explore and implement the carbon reduction strategy, leading the industry and the whole value chain
towards green and low carbon.
Other relevant information:
Not applicable
II Social Responsibility
See TCL Technology Group Corporation ESG Report 2021.
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TCL Technology Group Corporation Annual Report 2021
III. Consolidating and Extending the Achievements of Poverty Alleviation and Pushing
Forward Rural Revitalisation
Plan for consolidating and extending the achievements of poverty alleviation and pushing forward
rural revitalisation
The Company actively responds to the call of the state, and constantly channels efforts toward innovation by
devoting itself to three major fields of public welfare: poverty alleviation, student financial aid, and disaster relief.
It focuses on educational public welfare and promotes rural revitalization. It explores the innovative mode of
science and technology + public welfare, and uses A.I. technology to accompany left-behind children. TCL has
always taken responsibility for society, fulfilled its social responsibility with practical actions, and contributed to
common prosperity.
The “TCL Project Hope Candlelight Award”, jointly established by the Shenzhen TCL Public Welfare
Foundation and the CYDF, rewards outstanding rural teachers and organizes offline training. The Shenzhen TCL
Public Welfare Foundation cooperated with TCL Industrial Technology Research Institute to initiate the “A.I. Go
Home” project. An “Eagle” storytelling robot was developed and designed with professional technology and AI
technology. The robot is designed to imitate parents’ voices telling stories for children who lack parental
companionship, so as to strengthen the parent-child relationship. In 2021, the “A.I. Go Home” project was
upgraded again, and the “Eagle Listen” WeChat Mini Program was launched. The Shenzhen T CL Public Welfare
Foundation and the Education Foundation of the Central Conservatory of Music jointly launched the “Little Music
+” project and developed the “Xiao Xue” music robot. In this way, they care for children who lack musical
resources, bring them famous Chinese and foreign musical pieces and appreciation, which enrich the music
teaching resources of rural primary schools, and encourage every child to be positive and optimistic with the
power of music. The Candlelight Micro-Loan Project, a micro-loan oriented public welfare project jointly
provided by the Shenzhen TCL Public Welfare Foundation and TCL Finance Group for rural teachers, aims to
solve the financial needs of rural teachers and their families in the areas of major diseases, daily consumption and
skills training.
Annual summary of consolidating and extending the achievements of poverty alleviation and pushing
forward rural revitalisation
In 2021, the seventh “TCL Project Hope Candlelight Award” was launched, and outstanding rural teachers
were selected from 523 counties in 23 provinces nationwide. After registration, data screening, verification and
other procedures, 524 qualified rural teachers entered the final evaluation, in which they were finally reviewed by
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TCL Technology Group Corporation Annual Report 2021
experts. Finally, 400 outstanding rural teachers were selected, and each of the winning teachers was given a
personal award worth RMB8,000, including a cash reward and 7-day offline “Candlelight Classroom” training. In
October 2021, the glory ceremony of the seventh “TCL Project Hope Candlelight Award” was held in Shenzhen
with the theme of “Revitalize the Countryside Together with the Love of Candlelight”.
The “Eagle Story Club”, a project of “A.I. Go Home”, encouraged the whole school to participate by taking
the class as a unit. Based on the language learning situation of the pilot class, the “Eagle” storytelling robot was
used to select the appropriate stories. The story club gathered children together and popularized the allusions from
famous literary works at home and abroad for them. In 2021, the “Eagle Story Club” continued to be carried out.
The project set up 14 rural pilot schools in 9 provinces across the country, and distributed 50 “Eagle” story boxes
in total, benefiting more than 2,000 people. In 2021, the “A.I. Go Home” project was upgraded again, and the
“Eagle Listen” WeChat Mini Program was developed. “Eagle Listen” is a WeChat Mini Program integrating AI
(Artificial Intelligence) technology which customizes parents’ voices and plays stories and music. It has built-in
industry-leading ASR and voiceprint recognition technology, which allows users to synthesize AI simulated voice
with recording, and listen to stories told in a synthesized voice. Up to now, there have been more than 150 people
recording with “Eagle Listen”, and the number of users is nearly 1,000.
In 2021, the “Little Music +” project visually displayed the famous Chinese and foreign music pieces and
appreciations in the “Xiao Xue” music robot. Music story picture books were designed and created to help rural
children understand the connotations of music and enhance their imagination. In 2021, the “Xiao Xue Music Class”
project had pilots run in 13 schools in 10 provinces in total. A total of 50 Xiao Xue Music Boxes were distributed,
covering more than 3,000 students. In the first half of 2021, “Xiao Xue Music Class” set up pilot schools in
Heilongjiang and Inner Mongolia, and paid a return visit to minority primary schools in Qiqihar and Heilongjiang
about the development of “Xiao Xue Music Class”. In the second half of the year, pilot schools were set up in
Henan. A return visit was paid to Xiangyang Primary School in Suixian County, Henan Province to explore the
expansion of pilot schools “from point to area”. A forum of principals was held with the principals of seven
schools in Suixian County, in which they discussed the current situation and approach of “Eagle Story Club” and
“Xiao Xue Music Class”.
The Candlelight Micro-Loan Project uses the innovations in public welfare and finance to improve the
quality of life of rural educators working on the frontline to ensure the development of rural education. In 2021,
nearly 20 rural teachers submitted application materials for the “Candlelight Micro-Loan Project”, which granted
a loan of nearly RMB 300,000 to 6 teachers.
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TCL Technology Group Corporation Annual Report 2021
Effects of consolidating and extending the achievements of poverty alleviation and pushing forward rural revitalisation
Index Unit Quantity/Development
I Overall Situation —— ——
Of which: 1. Fund RMB’0,000 602
II Specific investments —— ——
1. Education —— ——
1.1 Amount of investment to improve the
RMB’0,000 492
educational resources in poverty-stricken areas
2. Society —— ——
2.1 Amount of public welfare fund investment RMB’0,000 110
Subsequent plans for consolidating and extending the achievements of poverty alleviation and pushing
forward rural revitalisation
In 2022, the eighth “TCL Project Hope Candlelight Award” will continue to be implemented. Rural teachers
who devote themselves to grassroots education in rural areas will be supported, so as to promote the development
of education in rural areas and rural revitalization. This plan will seek for outstanding rural teachers nationwide,
who have worked hard in the grassroots education front in poverty-stricken areas for their posts, and encourage
more outstanding young teachers to take root in rural basic education and promote rural education development.
In addition, it will expand the existing rewarding and publicity influence, continue to strengthen the engagement
of netizens on Internet platforms, and maintain its popularity in society.
In 2022, the “A.I. Go Home” project will continue to expand. The promotion and usage of “Eagle Listen”
will be strengthened, to provide “Eagle” storytelling robots with parents’ voices for more left-behind children, and
to strengthen the parent-child relationship and emotional support. At the same time, the project will set up 8 to 10
new pilot schools for “Eagle Story Club” and distribute 50 to 80 story boxes, so that more classes can listen to
stories with “Eagle” storytelling robots. Students will be encouraged to listen to, write and tell stories, from which
their learning ability, reading interest and positive ecology will be improved. It is estimated that more than 5,000
students will be covered.
In 2022, “Xiao Xue Music Class” will continuously expand pilot schools and distribute 50 to 80 Xiao Xue
Music Boxes, covering more than 5,000 students. At the same time, the project will publish music story picture
books matched with the “Xiao Xue” music robot, which will provide more opportunities and resources for
students in rural primary schools to learn and understand music. We will also expand the coverage of the
“Candlelight Micro-Loan Project” and discuss its development and future planning. Through the Candlelight
Micro-Loan Project, we will solve the financial needs of some rural teachers and their families.
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TCL Technology Group Corporation Annual Report 2021
Part VI Significant Events
I. Fulfillme nt of Commitme nts
1. Commitments of the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as well
as the Company Itself and Other Entities Fulfilled in the Reporting Period or Overdue at the Period-End
√ Applicable □ Not applicable
Date of Term of
Type of Fulfillm
Commitment Promisor Details of commitment commitme commitme
commitment ent
nt making nt
1. This company shall not transfer the shares in
TCL TECH. obtained through this transaction
within 12 months since the end date of issuance
of shares, including but not limited to direct or
indirect transfer in the securities market or by
agreement.
2. This company shall obey the above agreement
regarding the shares in TCL TECH. additionally
obtained because of allocation of bonus shares
and conversion to share capital, after the end of
About the
this issuance.
lockup
Commitments made 3. This company shall not transfer the convertible
period of the
in asset purchases bonds obtained through this transaction within 12 12 months
shares
via share and months of the end date of issuance, including but from the
Wuhan subscribed
convertible bonds not limited to direct or indirect transfer in the June 16, date of the Having
Industrial for and the
offering and cash securities market or by agreement. 2020 completio expired
Investment bond-to-stoc
payment and 4. The conversion period of the convertible bonds n of the
k period of
matching fund in this issuance starts from the first trading day 12 offering
convertible
raising months after the end date of issuance to the
corporate
maturity date of convertible bonds.
bonds
5. This company shall not transfer its shares in
TCL TECH. if this issuance is registered and
investigated by judicial authorities or the China
Securities Regulation Commission (CSRC) where
information provided or disclosed in this issuance
contains false presentations, misleading
statements, or material omissions, and the
investigation conclusion is unclear. Moreover, this
company shall submit its written application for
suspension of transfer and share account to the
94
TCL Technology Group Corporation Annual Report 2021
Board of Directors of the listed company, within
two trading days upon receipt of the notice on
case registration and investigation. The Board of
Directors will, on behalf of this company, apply
for lockup with the stock exchange and the
clearing house. If this company fails to submit the
lockup application within two trading days, the
Board of Directors will be authorized to verify the
situation and directly submit the identity and
account information of this company to and apply
for lockup with the stock exchange and the
clearing house. If the Board of Directors fails to
submit the identity and account information of
this company to the stock exchange and the
clearing house, the stock exchange and the
clearing house will be authorized to directly lock
up relevant shares. This company promises that it
will voluntarily use the shares locked up to
compensate relevant investors, should the
investigation conclusion identify violations of
laws and regulations.
About the This organization agrees that it will not transfer
commitment its subscribed convertible bonds within six
Subscribers
letter and months from the date when this issuance ends and
to the 6 months
the share the registration is completed. In addition, it
convertible from the
lockup entrusts the Board of Directors of TCL TECH. to
corporate completio
application apply for lockup of the above subscribed
bonds November n of the Having
of issuing convertible bonds with China Securities
privately 17, 2020 offering expired
targets of Depository and Clearing Corporation Limited
placed to and
the private (CSDC) Shenzhen Branch so as to ensure that the
raise the registratio
placement of above subscribed convertible bonds will not be
matching n
convertible transferred within six months from the date when
funds
corporate this issuance ends and the registration is
bonds completed.
1) I shall avoid horizontal competition between During the
About the companies, enterprises or other business tenure of
There is
horizontal organizations that I own, control, control with the
no
competition, others, have significant influence on and the Company’
Commitments made Li August 30, violatio
related-party Company with its subsidiaries; and 2) I shall s director,
in refinancing Dongsheng 2013 n of
transaction reduce and control transactions of related parties supervisor
commit
and capital between the companies, enterprises or other or senior
ment
occupation business organizations that I own, control, control manageme
with others, or have significant influence on and nt
95
TCL Technology Group Corporation Annual Report 2021
the Company with its subsidiaries.
1. Before and after this transaction, there was no
horizontal competition between me/this
partnership and the enterprises controlled by
me/this partnership and TCL Group and the main
businesses of its affiliated enterprises.
2. After this transaction, I/this partnership will
take active measures to avoid any business or
activity that competes or may constitute
competition with the main business of TCL Group
and its affiliated enterprises, and will urge the
enterprises controlled by me/this partnership to
avoid any business or activity that competes or
may constitute competition with the main
business of TCL Group and its affiliated
enterprises.
3. If I/this partnership and the enterprises
The largest
controlled by me/this partnership obtain the
shareholder
opportunity to engage in new business, which
of the listed During the
constitutes or may constitute horizontal There is
company period of
About competition with the main business of TCL Group no
Commitments made and person being the
avoiding and its affiliated enterprises. I/this partnership December violatio
in selling major acting in largest
horizontal will, when it is possible, try my/our best to make 7, 2018 n of
assets concert (Mr. shareholde
competition this business opportunity available to TCL Group commit
Li r of TCL
or its affiliated enterprises in the first place based ment
Dongsheng Group
on reasonable and fair terms and conditions.
and Jiutian
4. If the business of mine/this partnership and the
Liancheng)
enterprises controlled by me/this partnership
coincides or may constitute horizontal
competition with TCL Group’s business due to
my/this partnership’s investment demand or TCL
Group’s business development, I/this partnership
and the enterprises controlled by me/this
partnership agree to solve the resulting horizontal
competition within a specific time limit since as it
is determined.
5. During the period of being the largest
shareholder of TCL Group, the aforementioned
commitment is unconditional and irrevocable. If
I/this partnership violate the aforementione d
commitments, I/this partnership will make
comprehensive, timely and full joint and several
compensations for the losses to TCL Group
96
TCL Technology Group Corporation Annual Report 2021
caused thereby.
1. I/this partnership will minimize the related
party transactions between me/this partnership
and the enterprises controlled by me/this
partnership and TCL Group and its affiliated
enterprises.
2. For inevitable or reasonable related party
transactions, I/this partnership and the enterprises
controlled by me/this partnership and TCL Group
and its affiliated enterprises will conduct them
according to fair market principles and normal
commercial conditions, so as to ensure the
The largest
fairness of the related party transaction price, and
shareholder
will perform the decision-making procedures for
of the listed During the
Commitmen related party transactions according to the law, to There is
company period of
ts on ensure that the related party transactions will not no
and person being the
reducing and be used to illegally transfer TCL Group’s funds or December violatio
acting in largest
regulating to damage the legitimate rights and interests of 7, 2018 n of
concert (Mr. shareholde
related party TCL Group and its shareholders. commit
Li r of TCL
transactions 3. I/this partnership and the enterprises controlled ment
Dongsheng Group
by me/this partnership will not ask TCL Group
and Jiutian
and its affiliated enterprises to give more
Liancheng)
favorable conditions than those that can be
offered to an independent third party in any fair
market transaction.
4. During the period of being the largest
shareholder of TCL Group, the aforementioned
commitment is unconditional and irrevocable. If
I/this partnership violate the aforementioned
commitments, I/this partnership will make
comprehensive, timely and full joint and several
compensations for the losses to TCL Group
caused thereby.
The largest After this transaction, I/this partnership will
shareholder continue to exercise shareholder’s rights
Commitmen During the
of the listed according to laws, regulations and the Articles of There is
ts on period of
company Association of TCL Group, and maintain the no
maintaining being the
and person independence of TCL Group in terms of assets, December violatio
the largest
acting in personnel, finance, business and institutions. I/this 7, 2018 n of
independenc shareholde
concert (Mr. partnership will ensure: commit
e of listed r of TCL
Li (I) The independence of TCL Group personnel. ment
companies Group
Dongsheng I/this partnership promise(s) to maintain
and Jiutian personnel independence with TCL Group. TCL
97
TCL Technology Group Corporation Annual Report 2021
Liancheng) Group’s senior management, including the
general manager, deputy general manager, chief
financial officer, and secretary of the board of
directors, shall not hold positions other than
directors and supervisors in my/this partnership’s
subordinate wholly-owned, controlled or other
enterprises with actual control (hereinafter
referred to as “subordinate enterprises”), and shall
not be paid in my/this partnership’s subordinate
enterprises. The financial personnel of TCL
Group shall not work part-time in my/this
partnership’s subordinate enterprises.
(II) The independence and integrity of TCL
Group’s assets.
1. The independence and integrity of TCL
Group’s assets.
2. TCL Group does not have any funds or assets
occupied by me/this partnership and my/this
partnership’s subordinate enterprise.
(III) The financial independence of TCL Group.
1. TCL Group establishes an independent
financial department and an independent financial
accounting system.
2. TCL Group has a standardized and independent
financial accounting system.
3. TCL Group opens an independent bank account
and does not share a bank account with me/this
partnership.
4. The financial personnel of TCL Group shall not
work part-time in my/this partnership’s
subordinate enterprises.
5. TCL Group can make independent financial
decisions, and I/this partnership shall not interfere
with the use of TCL Group’s funds.
(IV) The institutional independence of TCL
Corporation.
1. TCL Group has an independent and complete
organization which can operate independently.
2. TCL Group’s office and premises for
production and operations are separated from my
subordinate enterprises/this partnership.
3. The Board of Directors, Board of Supervisors
and various functional departments of TCL Group
98
TCL Technology Group Corporation Annual Report 2021
operate independently, and have no subordinate
relationship with this partnership’s functional
departments.
(V) The business independence of TCL Group.
1. I/this partnership promise(s) to maintain the
business independence of TCL Group after this
transaction.
2. TCL Group has the assets, personnel,
qualifications and ability to independently carry
out business activities, and has the ability to
operate independently in the market.
If TCL Group suffers losses due to the violation
of commitments under the letter of commitment
by me/this partnership or my/this partnership’s
subordinate enterprises, I/this partnership will
bear the corresponding compensation liability
according to the law.
Fulfilled on time Yes
Specific reasons for
failing to fulfill
commitments on Not applicable
time and plans for
next steps
2. Where there had been an earning forecast for an asset or project and the Reporting Period was still
within the forecast period, explain why the forecast has been reached for the Reporting Period.
√ Applicable □ Not applicable
Current Current
Reasons for not Date of
Name of asset or forecast actual
Forecast start Forecast end reaching the original Index to original
project with an performance performance
time time forecast (if forecast forecast disclosure
earnings forecast (RMB’0,00 (RMB’0,000
applicable) disclosure
0) )
Announcement on
the Acquisition of
the 100% Equity
Moka Interests of Moka
January 1, December 31, December 12,
International 22,443 40,823 Not applicable International
2021 2023 2020
Limited Limited & the
Related-Party
Transactions
(2020-166)
99
TCL Technology Group Corporation Annual Report 2021
Commitments Made by the Company’s Shareholders and Counterparties on the Annual Operating Performance of the
Report
√ Applicable □ Not applicable
According to the Announcement on the Acquisition of the 100% Equity Interests of Moka International
Limited & the Related-Party Transaction, the net profit (hereinafter referred to as “net profit”) of Moka
International Limited (hereinafter referred to as “the target company”) in the audited consolidated statements in
2021, 2022 and 2023 (hereinafter referred to as “performance commitment period”) is not less than RMB224.43
million, RMB246.07 million, and RMB287.65 million respectively. Therefore, TCL Industries Holdings (HK)
Limited (hereinafter referred to as the “Transferor”) commits that the cumulative net profit of the target company
during the performance commitment period is not less than RMB760 million (hereinafter referred to as the
“committed net profit”).
TCL Technology Investments Limited (hereinafter referred to as the “Transferee”, a wholly-owned
subsidiary of the Company) shall, within 4 months after the end of the performance commitment period, hire an
accounting firm approved by the Transferor to conduct a special audit on the achievement of the target company’s
committed net profit throughout the performance commitment period, and issue a special audit report. After
auditing, if the net profit actually achieved by the target company during the performance commitment period fails
to reach the committed net profit, the Transferee shall notify the Transferor in writing within 10 working days
after the issue of the special audit report agreed herein. The Transferor shall compensate the Transferee in cash
within 3 months after receiving the written notice from the Transferee. The amount of compensation payable by
the Transferor for the current period = (committed net profit - achieved net profit) ÷ committed net profit × the
price of this equity transfer. Both parties further confirm that the accumulative amount compensated by the
Transferor during the performance commitment period shall not exceed the total amount of consideration obtained
by the Transferor in this equity transfer. After auditing, if the net profit actually achieved by the target company
exceeds the committed net profit during the performance commitment period, both parties agree to take 50% of
the excess amount as the transferor’s excess performance reward (the maximum amount of excess performance
reward shall not exceed 20% of the equity transfer price), and the Transferee shall pay this excess performance
reward to the Transferor in cash within 3 months after the issuance of the special audit report.
Achievement of Performance Commitment and Its Influence on Goodwill Impairment Tests
In 2021, the target company Moka International Limited realized a net profit of RMB408.23 million, which
exceeded the estimated amount in the Asset Evaluation Report of the TCL Technology Group Corporation to buy
100
TCL Technology Group Corporation Annual Report 2021
100% Equity Interests of Moka International Limited. There was no sign of goodwill impairment, so it is not
necessary to make provision for goodwill impairment.
II Occupation of the Company、Capital by the Controlling Shareholder or any of Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
III Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV. Explanations Given by the Board of Directors Regarding the Latest Independent
Auditor's “Modified Opinion” on the Financial Statements
□ Applicable √ Not applicable
V. Explanations Given by the Board of Directors, the Supervisory Committee, and
Independent Directors (If Any) Regarding the Independent Auditor's “Modified Opinion” on
the Financial Statements of the Reporting Period
□ Applicable √ Not applicable
VI. YoY Changes to the Accounting Policies and Estimates or Correction of Material
Accounting Errors
√ Applicable □ Not applicable
For details, see “41. Changes to main accounting policies and estimates” in “III Significant accounting policies and estimates” in
“Part IX Financial Report”.
VII. YoY Changes to the Scope of the Consolidated Financial Statements
√ Applicable □ Not applicable
Compared with 2020, 35 subsidiaries (18 newly incorporated and the other 17 over which the Company
newly obtained control of) are newly included and 30 subsidiaries (20 transferred, 8 de-registered, and the other 2
changed into affiliated companies) are excluded from the consolidation scope of 2021. Please refer to Note VI to
the financial statements.
VIII. Engage ment and Disengagement of Independent Auditor
Current independent auditor:
101
TCL Technology Group Corporation Annual Report 2021
Da Hua Certified Public Accountants (Special General
Name of the domestic independent auditor
Partnership)
The Company’s payment to the domestic independent auditor (RMB’0,000) 384.6
How many consecutive years the domestic independent auditor has
14
provided audit services for the Company
Names of the certified public accountants from the domestic independent
Qiu Junzhou and Jiang Xianmin
auditor writing signatures on the auditor’s report
How many consecutive years the certified public accountants have
3 years, 3 years
provided audit services for the Company
Name of the foreign independent auditor (if any) Not applicable
The Company’s payment to the foreign independent auditor (RMB’0,000)
Not applicable
(if any)
How many consecutive years the foreign independent auditor has provided
Not applicable
audit services for the Company (if any)
Names of the certified public accountants from the foreign independent
Not applicable
auditor writing signatures on the auditor’s report (if any)
How many consecutive years the certified public accountants have
Not applicable
provided audit services for the Company (if any)
Indicate whether the independent auditor was changed for the Reporting Period.
□ Yes √ No
CPA firm, financial advisor or sponsor hired for the audit of internal control:
√ Applicable □ Not applicable
During the Reporting Period, the Company hired Da Hua Certified Public Accountants (Special General
Partnership) to conduct an internal control audit, with an audit cost of RMB500,000.
IX. Delisting Faced After the Disclosure of the Annual Report
□ Applicable √ Not applicable
X. Insolvency and Reorganization
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XI. Significant Lawsuits and Arbitrations:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XII. Punishme nts and Rectifications
□ Applicable √ Not applicable
102
TCL Technology Group Corporation Annual Report 2021
No significant punishments or rectifications in the Reporting Period.
XIII. Credit Quality of the Company as well as its Controlling Shareholder and Actual
Controller
□ Applicable √ Not applicable
XIV. Major Related-Party Transactions
1 Continuing Related-Party Transactions
□ Applicable √ Not applicable
During the Reporting Period, the Company’s daily related-party transactions is found in the related announcements disclosed on
http://www.cninfo.com.cn.
2 Related-Party Transactions Regarding Purchase or Disposal of Assets or Equity Investments
□ Applicable √ Not applicable
Refer to VIII “Sale of Major Equity Investments” of Part III in this report.
3 Related-Party Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
No related-party transactions regarding joint investments in third parties which occurred during the Company’s Reporting Period.
4. Amounts Due to and from Related Parties
√ Applicable □ Not applicable
Indicate whether there were any amounts due to and from related parties for non-operating purposes.
√ Yes □ No
Amounts receivable due to related parties
Amount of
Capital Amount of
recovered Interest in
occupation Beginning new grants Ending
Relationshi grants in current
Related for balance in current balance
p with the Source current Coupon rate period
parties non-operati (RMB’0,00 period (RMB’0,000
Company period (RMB’0,00
ng purposes 0) (RMB’0,00 )
(RMB’0,00 0)
or not 0)
0)
TCL
Sale of
Industries Related
equity No 0 257,202.01 131,173.03 0.00% 0 126,028.98
Holdings corporation
investments
Co., Ltd.
The Influence of The Company sells 100% equity of Guangzhou Financial Development Service Center to TCL Industries
Amounts Due to Related Holdings Inc., in order to seize the opportunity in industrial development, further optimize the business
Parties on the structure, and focus resources on the development of the main business in line with the national policy
103
TCL Technology Group Corporation Annual Report 2021
Company’s Operating guidance, and based on the demands of the Company’s announced financing projects. According to the
Results and Financial agreement signed by both parties, TCL Industries Holdings Inc. shall pay 51% of the equity transfer price
Status to the Company within 40 days from the effective date of the agreement. The remaining 49% of the
equity transfer price will be paid within two years from the effective date of the agreement. Refer to the
Announcement on the Disposal of Equity Interests in Guangzhou Financial and the Related-party
Transactions disclosed by the Company on http://www.cninfo.com.cn dated May 22, 2021.
5. Transactions with Related Finance Companies
□ Applicable √ Not applicable
6. Transactions Between the Financial Company Controlled by the Company and Related Companies
√ Applicable □ Not applicable
Deposits:
Amount incurred in the current period
Relationsh Daily deposit Beginning Ending
Range of Total deposit amount Total withdrawal
Related parties ip with the ceiling balance balance
interest in current period amount in current
Company (RMB’0,000) (RMB’0,000) (RMB’0,000)
(RMB’0,000) period (RMB’0,000)
Subsidiary of
Related
TCL Industries
corporatio 600,000.00 0.01%-2.25% 252,815.49 6,767,979.46 7,018,667.16 2,127.79
Holdings Co.,
n
Ltd.
Loans:
Amount incurred in the current
period
Relationship Beginning Total
Loan limit Range of Total loan Ending balance
Related parties with the balance repayment
(RMB’0,000) interest amount in (RMB’0,000)
Company (RMB’0,000) amount in
current period
current period
(RMB’0,000)
(RMB’0,000)
Subsidiary of
TCL Industries Related Comprehensive
0.7%-4.5% 135,823.30 202,781.50 338,604.80 -
Holdings Co., corporation credit
Ltd.
Credit or other financial business:
Relationship
Total line of credit
Related parties with the Business type Ending balance (RMB’0,000)
(RMB’0,000)
Company
Subsidiary of TCL Industries Holdings Related Credit granting (bill The balance of
83,334.22
Co., Ltd. corporation discount) comprehensive credit
104
TCL Technology Group Corporation Annual Report 2021
on any one day shall
Subsidiary of TCL Industries Holdings Related Credit granting (bill
not exceed RMB 6 31,557.21
Co., Ltd. corporation acceptance)
billion
7. Other Major Related-Party Transactions
√ Applicable □ Not applicable
Index to relevant announcements:
Title of announcement Date of disclosure Website for disclosure
Announcement on TCL Finance Co., Ltd. Continuing to Provide Financial
March 11, 2021
Services for TCL Industries Holdings Inc. and Extending the Financial Service
Agreement between Them and the Related-Party Transaction http://www.cninfo.com.cn
Announcement on the Launch of Accounts Receivable Factoring and the May 22, 2021
Related-party Transaction
XV. Major Contracts and Execution Thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable √ Not applicable
There were no entrustment projects that brought profits and losses to the Company reaching more than 10% of the Company’s total
profits in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
There were no contracting projects that brought profits and losses to the Company reaching more than 10% of the Company’s total
profits in the Reporting Period.
(3) Leases
□ Applicable √ Not applicable
There were no lease projects that brought profits and losses to the Company reaching more than 10% of the Company’s total prof its
in the Reporting Period.
2. Major Guarantees
√ Applicable □ Not applicable
Unit: RMB'0,000
105
TCL Technology Group Corporation Annual Report 2021
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Disclosure
date of the Counter Term Guarantee
Actual Actual Collat Expir
guarantee Line of Type of guarante of for related
Obligor occurrenc guarantee eral (if ed or
line guarantee guarante e e (if guarant parties or
e date amount any) not
announceme any) ee not
nt
56
TCL King Electrical Joint
December August days-7.
Appliances (Huizhou) 345,000 327,138 liability / No Yes
7, 2018 29, 2020 36
Co., Ltd. guarantee
years
TCL King Electrical Joint 0.47-0.
December July 27,
Appliances (Chengdu) 60,000 51,653 liability / 49 No Yes
7, 2018 2021
Co., Ltd. guarantee years
Huizhou TCL Mobile Joint 41
December July 12,
Communication Co., 450,000 212,507 liability / days-0. No Yes
7, 2018 2021
Ltd. guarantee 5 years
TCL Communication Joint
December
Technology Holdings 120,000 - - liability / - No Yes
7, 2018
Limited guarantee
TCL Mobile Joint 0.25-0.
December September TCL
Communication (HK) 248,500 29,225 liability / 34 No Yes
7, 2018 16, 2021 Industrie
Company Limited guarantee years
s
Joint
TCT Mobile Overseas December Holding
6,625 - - liability / - No Yes
Limited 7, 2018 s Co.,
guarantee
Ltd.
Joint
December provided
TCT Mobile (US) Inc. 84,500 - - liability / - No Yes
7, 2018 counter
guarantee
guarante
Joint
TCT Mobile December es
31,000 - - liability / - No Yes
International Limited 7, 2018
guarantee
Joint
TCT Mobile Italy December
1,600 - - liability / - No Yes
S.R.L 7, 2018
guarantee
Joint
TCT MOBILE - December
12,000 - - liability / - No Yes
TELEFONES LTDA. 7, 2018
guarantee
30
TCL Home Joint
December March 2, days-1.
Appliances (Hefei) 140,000 68,280 liability / No Yes
7, 2018 2021 97
Co., Ltd. guarantee
years
TCL Home December June 29, Joint 36-189
16,000 4,929 / No Yes
Appliances 7, 2018 2021 liability days
106
TCL Technology Group Corporation Annual Report 2021
(Zhongshan) Co., Ltd. guarantee
Joint 18
TCL Air-Conditioner December March 13,
158,600 80,991 liability / days-3 No Yes
(Zhongshan) Co., Ltd. 7, 2018 2020
guarantee years
Joint
TCL Air Conditioner December January 18-190
131,600 13,480 liability / No Yes
(Wuhan) Co., Ltd. 7, 2018 19, 2021 days
guarantee
Zhongshan TCL Joint
December March 24, 32-364
Refrigeration 75,300 31,749 liability / No Yes
7, 2018 2021 days
Equipment Co., Ltd. guarantee
Guangdong TCL
Joint
Smart Heating & December July 23, 43-186
7,000 2,522 liability / No Yes
Ventilation Equipment 7, 2018 2021 days
guarantee
Co., Ltd.
TCL Home Joint
December June 18,
Appliances (Huizhou) 11,500 10,000 liability / 1 year No Yes
7, 2018 2021
Co., Ltd. guarantee
TCL Intelligent Joint
December
Technology (Hefei) 800 - - liability / - No Yes
7, 2018
Co., Ltd. guarantee
Joint
TCL Air-Conditioner December January 51-189
25,000 5,488 liability / No Yes
(Jiujiang) Co., Ltd. 7, 2018 25, 2021 days
guarantee
TCL Home Joint
December
Appliances (Hong 20,000 - - liability / - No Yes
7, 2018
Kong) Limited guarantee
Shenzhen TCL
Joint
Hangxiang Supply December
500 - - liability / - No Yes
Chain Service Co., 7, 2018
guarantee
Ltd.
Zhongshan Hhappy Joint
December
Tree Network 2,000 - - liability / - No Yes
7, 2018
Technology Co., Ltd. guarantee
Joint 80
TCL Tonly Electronics December April 23,
40,000 39,496 liability / days-3 No Yes
(Huizhou) Co., Ltd. 7, 2018 2021
guarantee years
TCL Commercial
Joint
Information December
14,000 - - liability / - No Yes
Technology (Huizhou) 7, 2018
guarantee
Co., Ltd.
TCL Very Lighting Joint
December October 8, 62-125
Technology (Huizhou) 4,000 1,034 liability / No Yes
7, 2018 2021 days
Co., Ltd. guarantee
107
TCL Technology Group Corporation Annual Report 2021
Joint
TCL Capital (Hong December
100,000 - - liability / - No Yes
Kong) Limited 7, 2018
guarantee
Huizhou Cool Friends Joint
December
Network Technology 13,000 - - liability / - No Yes
7, 2018
Co., Ltd. guarantee
SHIFENDAOJIA Joint
December September 100-11
Online Service Co., 3,000 77 liability / No Yes
7, 2018 15, 2021 4 days
Ltd. guarantee
Joint
TCL Technology Park December
27,000 - - liability / - No Yes
Co., Ltd. 7, 2018
guarantee
Guangzhou Yunsheng Joint
December
Tianji Technology 110,000 - - liability / - No Yes
7, 2018
Co., Ltd. guarantee
Guangzhou TCL
Joint
Science and December December 13
200,000 84,700 liability / No Yes
Technology 7, 2018 18, 2018 years
guarantee
Development Co., Ltd.
Shenzhen Bao’an TCL
Joint
Haichuanggu December
20,000 - - liability / - No Yes
Technology Park 7, 2018
guarantee
Development Co., Ltd.
TCL Industries Joint
December April 14, 1-3
Holdings (HK) 800,000 514,629 liability / No Yes
7, 2018 2020 years
Limited guarantee
Canyon Circuit Joint
December July 29, 98-183
Technology (Huizhou) 5,000 499 liability / No No
7, 2018 2021 days
Co., Ltd. guarantee
Joint
Huizhou Shenghua December
9,000 - - liability / - No No
Industrial Co., Ltd. 7, 2018
guarantee
Joint
Taiyang Electro-optic December
4,000 - - liability / - No No
(Huizhou) Co., Ltd. 7, 2018
guarantee
Joint
Huizhou Gaoshengda December
9,000 - - liability / - No No
Technology Co., Ltd. 7, 2018
guarantee
With
Shenzhen Qianhai Joint
March 11, December counter- 186-19
Qihang Supply Chain 40,000 33,799 liability / No Yes
2021 23, 2020 guarante 9 days
Management Co., Ltd. guarantee
e
Qihang March 11, Joint With
6,000 - - / - No No
Import&Export 2021 liability counter-
108
TCL Technology Group Corporation Annual Report 2021
Limited guarantee guarante
e
Shenzhen Qianhai With
Joint
Qihang International March 11, May 6, counter- 181
110,000 10,978 liability / No No
Supply Chain 2021 2021 guarante days
guarantee
Management Co., Ltd. e
Guarant
ee in
proporti
AGC New Electronic Joint
March 11, April 28, on to
Display Glass 55,000 29,447 liability / 8 years No No
2021 2020 sharehol
(Shenzhen) Co., Ltd.* guarantee
ding
percenta
ge
With
Qihang International Joint
March 11, counter-
Import & Export 50,000 - - liability / - No No
2021 guarante
Limited guarantee
e
Huizhou Zhongkai With
Joint
TCL Zhirong May 22, January 5, counter-
45,500 16,500 liability / 1 year No Yes
Technology 2021 2021 guarante
guarantee
Microcredit Co., Ltd. e
With
Guangzhou TCL Joint
May 22, February counter-
Internet Microcredit 100,000 30,000 liability / 1 year No Yes
2021 26, 2021 guarante
Co., Ltd. guarantee
e
Total actual amount of
Total approved line for such
406,500.00 such guarantees in 2,009,214.23
guarantees in Reporting Period (A1)
Reporting Period (A2)
Total actual balance of
Total approved line for such
such guarantees at end
guarantees at the end of Reporting 3,712,025.00 1,599,120.67
of Reporting Period
Period (A3)
(A4)
Guarantees provided by the Company as the parent for its subsidiaries
Disclosure
date of the Counter Term Guarantee
Actual Actual Collat Expir
guarantee Line of Type of guarante of for related
Obligor occurrenc guarantee eral (if ed or
line guarantee guarante e e (if guarant parties or
e date amount any) not
announceme any) ee not
nt
1
Wuhan China Star Joint
March 11, April 13, month
Optoelectronics 1,110,000 454,860 liability / / No No
2021 2016 -8
Technology Co., Ltd. guarantee
years
109
TCL Technology Group Corporation Annual Report 2021
Shenzhen China Star
3
Optoelectronics Joint
March 11, April 28, month
Semiconductor 3,650,000 1,014,620 liability / / No No
2021 2018 -8
Display Technology guarantee
years
Co., Ltd.
3
TCL China Star Joint
March 11, April 21, month
Optoelectronics 710,800 59,646 liability / / No No
2021 2015 -8
Technology Co., Ltd. guarantee
years
Wuhan China Star
3
Optoelectronics Joint
March 11, December month
Semiconductor 1,700,000 869,083 liability / / No No
2021 22, 2017 -8
Display Technology guarantee
years
Co., Ltd.
Huizhou China Star Joint
March 11, August 1-8
Optoelectronics 990,000 498,068 liability / / No No
2021 21, 2020 years
Technology Co., Ltd. guarantee
China Star
Joint
Optoelectronics August 10, December
500,000 159,393 liability / / 3 years No No
International (HK) 2021 5, 2020
guarantee
Limited
China Display
Joint
Optoelectronics March 11, March 31, 43-190
150,000 53,096 liability / / No No
Technology (Huizhou) 2021 2021 days
guarantee
Co., Ltd.
Wuhan China Display Joint
March 11, June 1, 1-5
Optoelectronics 50,000 223 liability / / No No
2021 2020 years
Technology Co., Ltd. guarantee
Guangdong Juhua Joint
March 11, November 6
Printed Display 20,000 266 liability / / No No
2021 19, 2020 months
Technology Co., Ltd. guarantee
Joint
March 11,
TCL Finance Co.,Ltd 200,000 - - liability / / - No No
2021
guarantee
Joint 263-
Highly Information March 11, June 17,
383,000 288,079 liability / / 633 No No
Industry Co., Ltd. 2021 2020
guarantee days
Beijing Joint
March 11, July 23,
HechengNuoxin 5,000 5,000 liability / / 1 year No No
2021 2021
Technology Co., Ltd. guarantee
Joint
Beijing Lingyun Data March 11, April 28, 89-394
131,500 20,688 liability / / No No
Technology Co., Ltd. 2021 2021 days
guarantee
Beijing Sunpiestore March 11, 87,000 June 19, 83,000 Joint / / 89-394 No No
110
TCL Technology Group Corporation Annual Report 2021
Technology Co., Ltd. 2021 2020 liability days
guarantee
Shaanxi Titi Joint
March 11, July 23,
Electronic Technology 3,000 3,000 liability / / 1 year No No
2021 2021
Co., Ltd. guarantee
Joint
TCL Technology Park March 11, April 24, 1-10
180,000 99,700 liability / / No No
(Huizhou) Co., Ltd. 2021 2020 years
guarantee
Joint
TCL Technology March 11, July 14,
400,000 192,000 liability / / 5 years No No
Investments Limited 2021 2020
guarantee
Joint
Ningbo TCL Equity March 11,
50,000 - - liability / / - No No
Investment Ltd. 2021
guarantee
Joint
TCL Moka April 28, October 2-3
360,000 66,949 liability / / No No
International Limited 2021 27, 2021 months
guarantee
Joint
April 28,
US Moka Limited 210,000 - - liability / / - No No
2021
guarantee
Huizhou Moka Joint
April 28,
Technology 50,000 - - liability / / - No No
2021
Development Co., Ltd. guarantee
Joint
Moka Technology April 28, January 8, 1-6
400,000 84,946 liability / / No No
(Guangdong) Co., Ltd. 2021 2021 months
guarantee
Guangzhou China Star
Optoelectronics Joint
April 10,
Semiconductor 1,750,000 - - liability / / - No No
2021
Display Technology guarantee
Co., Ltd.
Suzhou China Star Joint
August 10, May 7, 252
Optoelectronics 200,000 500 liability / / No No
2021 2021 days
Display Co., Ltd. guarantee
Suzhou China Star Joint
August 10, May 7, 252
Optoelectronics 400,000 3,660 liability / / No No
2021 2021 days
Technology Co., Ltd. guarantee
Joint
Highly (Tianjin) August 10,
50,000 - - liability / / - No No
Technology Co., Ltd. 2021
guarantee
Joint
Highly (Tianjin) August 10,
5,000 - liability / / - No No
E-Commerce Co., Ltd. 2021
guarantee
111
TCL Technology Group Corporation Annual Report 2021
Total approved line for such Total actual amount of
guarantees in the Reporting Period 13,745,300 such guarantees in the 2,034,131
(B1) Reporting Period (B2)
Total actual balance of
Total approved line for such
such guarantees at the
guarantees at the end of the Reporting 13,745,300 3,956,777
end of the Reporting
Period (B3)
Period (B4)
Guarantees provided between subsidiaries
Disclosure
date of the Counter Term Guarantee
Actual Actual Collat Expir
guarantee Line of Type of guarante of for related
Obligor occurrenc guarantee eral (if ed or
line guarantee guarante e e (if guarant parties or
e date amount any) not
announceme any) ee not
nt
Huhehaote Huanju Joint
November April 13, 9.5
New Energy 29,529 29,529.00 liability / / No No
26, 2014 2015 years
Development Co., Ltd. guarantee
Zhonghuan Energy Joint
June 24, July 21, 15
(Inner Mongolia) Co., 12,360 12,360.00 liability / / No No
2017 2017 years
Ltd. guarantee
Joint
Otog Banner Huanju June 24, August 10
21,328 21,328.28 liability / / No No
New Energy Co., Ltd. 2017 30, 2017 years
guarantee
Joint
Qinhuangdao Tianhui November January 12
10,100 10,100.00 liability / / No No
Solar Energy Co., Ltd. 11, 2017 19, 2018 years
guarantee
Inner Mongolia Joint
November May 31, 108,750.0
Zhonghuan Solar 108,750 liability / / 5 years No No
29, 2017 2018 0
Material Co., Ltd. guarantee
Joint
Qinhuangdao Tianhui September April 26, 10
13,629 13,629.18 liability / / No No
Solar Energy Co., Ltd. 6, 2018 2019 years
guarantee
Joint
GuyuanShengju New September October 8, 11
10,869 10,869.34 liability / / No No
Energy Co., Ltd. 6, 2018 2018 years
guarantee
Zhangjiakou Joint
September October 8, 11
Shengyuan New 14,740 14,740.00 liability / / No No
6, 2018 2018 years
Energy Co., Ltd. guarantee
Joint
Zhonghuan Hong December
0 - - liability / / No No
Kong Holding Limited 8, 2018 -
guarantee
Joint
Zhonghuan Hong August 22,
0 - - liability / / No No
Kong Holding Limited 2019 -
guarantee
112
TCL Technology Group Corporation Annual Report 2021
Joint
Zhonghuan Hong March 22, March 26,
65,000 52,259.08 liability / / 3 years No No
Kong Holding Limited 2021 2021
guarantee
Inner Mongolia
Joint
ZhonghuanXiexin March 22, April 30, 412,500.0
412,500 liability / / 7 years No No
Solar Material Co., 2021 2021 0
guarantee
Ltd.
Joint
Huansheng Solar March 22, April 1,
54,000 54,000.00 liability / / 5 years No No
(Jiangsu) Co., Ltd. 2021 2021
guarantee
Tianjin Huanzhi New Joint
January 21, July 20,
Energy Technology 131,500 57,096.72 liability / / 7 years No No
2021 2021
Co., Ltd. guarantee
Total approved line for such Total actual amount of
guarantees in the Reporting Period 663,000 such guarantees in the 575,856
(C1) Reporting Period (C2)
Total actual balance of
Total approved line for such
such guarantees at the
guarantees at the end of the Reporting 884,306 797,162
end of the Reporting
Period (C3)
Period (C4)
Total guarantee amount (total of the three kinds of guarantees above)
Total actual guarantee
Total guarantee line approved in the
amount in the Reporting 4,619,201
Reporting Period (A1+B1+C1) 14,814,800
Period (A2+B2+C2)
Total actual guarantee
Total approved guarantee line at the
balance at the end of the
end of the Reporting Period 6,353,059
18,341,631 Reporting Period (A4+
(A3+B3+C3)
B4+ C4)
Total actual guarantee amount (A4+B4+C4) as % of the
147.63%
Company’s net assets
Of which:
Balance of guarantees provided for shareholders, the actual
controller and their related parties (D) 1,558,197
Balance of debt guarantees provided directly or indirectly for
obligors with an over 70% debt/asset ratio (E) 2,805,115
Amount by which the total guarantee amount exceeds 50% of the
Company’s net assets (F) 4,201,347
Total of the three amounts above (D+E+F)
4,201,347
Joint liability possibly borne or already borne in the Reporting
-
Period for outstanding guarantees (if any)
Guarantees provided in breach of prescribed procedures (if any) -
113
TCL Technology Group Corporation Annual Report 2021
Note: ① * indicates that the vouchee’s company changed during the Reporting Period.
②The guarantee period in the above table is the occurrence period of the principal debt. The actual guarantee is valid for two or three
years from the expiration date of the principal debt, which is subject to the single contract.
3. Entrusted Cash Asset Management
(1) Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
Overview of cash entrusted for wealth management during the Reporting Period
Unit: RMB'0,000
Unrecovered overdue
Type Funding source Amount Undue amount
amount
Bank’s wealth
Self-funded 1,044,652.90 249,674.54 -
management product
Securities firm’s wealth
Self-funded 30,000.00 30,000.00 -
management product
Trust plan Self-funded 120,000.00 70,000.00 -
Other Self-funded 361,044.17 279,078.22 -
Total 1,555,697.07 628,752.76
High-risk wealth management transactions with a significant single amount liquidity:
□ Applicable √ Not applicable
Wealth management transactions where the principal is expectedly irrecoverable or an impairment may be incurred:
□ Applicable √ Not applicable
(2) Loan Entrusted for Wealth Management
√ Applicable □ Not applicable
Overview of loan entrusted for wealth management during the Reporting Period
Unit: RMB'0,000
Total amount of loan entrusted Funding source of loan entrusted
Undue amount Unrecovered overdue amount
for wealth management for wealth management
- Self-funded 23.28 -
High-risk loan transactions with a significant single amount liquidity:
□ Applicable √ Not applicable
Loan transactions where the principal is expectedly irrecoverable or an impairment may be incurred:
□ Applicable √ Not applicable
114
TCL Technology Group Corporation Annual Report 2021
4. Other Major Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XVI. Other Significant Events
√ Applicable □ Not applicable
Title of announcement Date of disclosure Website for disclosure
Announcement on the Incorporation of TCL Semiconductor Technology
2021-03-11
(Guangdong) Co., Ltd. and the Related-party Transaction
Announcement on Capital Increase in TCL CSOT 2021-05-22 http://www.cninfo.com.cn
Announcement on the Transfer of Subsidiary Equity and the Related-party
2021-09-28
Transaction
XVII. Significant Events of Subsidiaries
√ Applicable □ Not applicable
Title of announcement Date of disclosure Website for disclosure
Voluntary Announcement on Increasing the Equity-holdings in Tianjin
2021-02-04
Printronics Circuit Corporation
Voluntary Announcement on Increasing the Equity-holdings in Tianjin
2021-03-17
Printronics Circuit Corporation
Voluntary Announcement on Increasing the Equity-holdings in Tianjin
2021-03-18 http://www.cninfo.com.cn
Zhonghuan Semiconductor Co., Ltd.
Announcement on Increase and Investment in Expanding Production on the
2021-12-3
Generation 6 (or G6) Semiconductor Production Line of Wuhan CSOT
Voluntary Announcement on Public Delisting and Acquisition of Minority
2021-10-11
Shareholders’ Equity in Subsidiaries
115
TCL Technology Group Corporation Annual Report 2021
Part VII Share Changes and Shareholder Information
I. Share Changes
1. Share Changes
Unit: share
Increase/decrease in the Reporting
Before After
Period (+/-)
Shares Ratio Other Subtotal Shares Ratio
I.Restricted shares 1,374,578,078 9.80% -762,467,590 -762,467,590 612,110,488 4.36%
1. Shares held by state-owned
511,508,951 3.65% -511,508,951 -511,508,951 0 0.00%
legal persons
2. Shares held by other
772,504,348 5.51% -160,785,358 -160,785,358 611,718,990 4.36%
domestic investors
Among which: Shares held by
150,908,441 1.08% -150,908,441 -150,908,441 0 0.00%
domestic legal persons
Shares held by domestic natural
621,595,907 4.43% -9,876,917 -9,876,917 611,718,990 4.36%
persons
3. Shares held by foreign
90,564,779 0.65% -90,173,281 -90,173,281 391,498 0.00279%
investors
Among which: Shares held by
90,532,347 0.65% -90,532,347 -90,532,347 0 0.00%
foreign legal persons
Shares held by foreign natural
32,432 0.000231% 359,066 359,066 391,498 0.00279%
persons
II. Unrestricted shares 12,656,210,284 90.20% 762,321,649 762,321,649 13,418,531,933 95.64%
1、RMB-denominated ordinary
12,656,210,284 90.20% 762,321,649 762,321,649 13,418,531,933 95.64%
stock
III. Total shares 14,030,788,362 100.00% -145,941 -145,941 14,030,642,421 100.00%
Reasons for share changes:
√ Applicable □ Not applicable
1. During the Reporting Period, locked-up shares held by senior management decreased by 8,020,594 restricted shares, as
unrestricted shares decreased by the same number;
2. During the Reporting Period, on September 11, 2021, the Company disclosed the Announcement on Completing the
Repurchase and Retirement of Some Restricted Shares and Unchanged Share Transfer Price of Convertible Company Bonds . Ten
people have resigned for personal reasons, and the Company has repurchased and cancelled 145,941 restricted stocks collectively
held by them. As such, the total share capital of the Company decreased from 14,030,788,362 to 14,030,642,421 shares.
3. During the Reporting Period, on November 8, 2021, the Company disclosed the Reminder on the Release of the Restricted
116
TCL Technology Group Corporation Annual Report 2021
Shares for Asset Purchase via Share and Convertible Corporate Bonds Offering and Cash Payment and Matching Funds Raised in
2020, in which the date of listing and circulation of 511,508,951 restricted shares released was November 11, 2021, and the number
of unrestricted shares increased correspondingly, while the total number of the Company’s shares remains unchanged.
Approval of share changes:
□ Applicable √ Not applicable
Transfer of share ownership:
□ Applicable √ Not applicable
Effects of share changes on the basic earnings per share, diluted earnings per share, equity per share attributable to the Company’s
ordinary shareholders and other financial indicators of the prior year and the prior accounting period, respectively:
√ Applicable □ Not applicable
Item January-December 2021
Basic earnings per share (RMB/share) 0.7463
Diluted earnings per share (RMB/share) 0.7354
Item December 31, 2021
Net profit attributable to ordinary shareholders of the Company
3.07
(RMB)
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable √ Not applicable
2. Changes in Restricted Shares
√ Applicable □ Not applicable
Unit: share
Beginning Increase in Unlocked in Ending restricted Reason for Date of
Shareholder
restricted shares Reporting Period Reporting Period shares restriction unlocking
Wuhan Optics Restricted shares 2021-11-11
Valley Industrial in a share
511,508,951 0 511,508,951 0
Investment Co., offering
Ltd.
Star Century Restricted shares 2021-1-11
Enterprises 90,532,347 0 90,532,347 0 in a share
Limited offering
Ningbo Restricted shares 2021-1-11
XinglanZhonglian in a share
Enterprise offering
Management 42,521,163 0 42,521,163 0
Partnership
(Limited
Partnership)
Ningbo 38,380,684 0 38,380,684 0 Restricted shares 2021-1-11
117
TCL Technology Group Corporation Annual Report 2021
XingyongZhonglia in a share
n Enterprise offering
Management
Partnership
(Limited
Partnership)
Ningbo Restricted shares 2021-1-11
XingyuanZhonglia in a share
n Enterprise offering
Management 37,695,315 0 37,695,315 0
Partnership
(Limited
Partnership)
Ningbo Restricted shares 2021-1-11
XinglianZhonglian in a share
Enterprise offering
Management 32,311,279 0 32,311,279 0
Partnership
(Limited
Partnership)
Other Locked-up shares 2021
620,131,082 0 8,020,594 612,110,488 of senior
management
2019 Restricted Restricted shares 2021-9-10
Stock Incentive 1,497,257 0 1,497,257 0 granted as
Plan incentives
Total 1,374,578,078 0 762,467,590 612,110,488 -- --
II Issuance and Listing of Securities
1. Issuance of Securities (Preferred Shares Exclusive) in the Reporting Period
√ Applicable □ Not applicable
Name of
Issue price Number Termination Index to
stock and its Issued Date of
Issue date (or interest Listing date approved for date of disclosed
derivative number disclosure
rate) public trading transaction information
securities
Shares
Not
applicable
Type: convertible corporate bonds, convertible corporate bonds with warrants, corporate bonds
118
TCL Technology Group Corporation Annual Report 2021
Corporate Announcement
2021-03-29 3.65% 5,000,000 pcs 2021-04-07 5,000,000 pcs 2021-09-25 2021-03-24
bonds No.: 2021-024
Other derivative securities
Not
applicable
2. Changes in the Total Number of Shares, Shareholder Structure, and the Structure of Assets and
Liabilities
√ Applicable □ Not applicable
(1) For Changes in the total number of shares and shareholder structure, see “I. Share Changes” in this section.
(2) During the Reporting Period, all convertible corporate bonds “TCL Private Convertible 1” issued by the Company were conve rted
into shares, and the net assets increased.
3. Existing Staff-Held Shares
□ Applicable √ Not applicable
III. Shareholders and Actual Controller
1. Shareholders and Their Shareholdings
Unit: share
Number of
preference
Number of Number of
shareholders
ordinary preference
Total ordinary with resumed
shareholders at the shareholders with
shares held at 799,609 773,077 0 voting rights at 0
month-end prior to resumed voting
the period-end the month-end
the disclosure of rights at the
prior to the
this Report period-end
disclosure of this
Report
5% or greater shareholders or top 10 shareholders
Unrestricted Shares in pledge, marked or
Increase/decr
Shareholdi Total shares ordinary frozen
Name of Nature of ease in the Restricted
ng ratio held at the shares held
Shareholder shareholder Reporting shares held
(%) period-end at the Share Status Shares
Period
period-end
Li Dongsheng Domestic Put in pledge by
198,838,800
and his natural Li Dongsheng
8.26 1,158,599,393 0 610,181,602 548,417,791
acting-in-concer person/gener Put in pledge by
344,899,521
t party al legal JiutianLianchen
119
TCL Technology Group Corporation Annual Report 2021
person g
Huizhou
Investment State-owned
5.30 743,139,840 0 0 743,139,840
Holding Co., legal person
Ltd.
Wuhan Optics
Valley
State-owned
Industrial 3.98 558,552,396 47,043,445 0 558,552,396 Pledge 255,754,475
legal person
Investment Co.,
Ltd.
Hong Kong
Securities Foreign
3.19 447,848,011 -75,894,556 0 447,848,011
Clearing legal person
Company Ltd.
China Securities
Domestic
Finance
general legal 2.66 373,231,553 0 0 373,231,553
Corporation
person
Limited
Tibet Tianfeng
Domestic
Enterprise
general legal 1.76 246,568,838 -109,294,877 0 246,568,838
Management
person
Co., Ltd.
TCL
Technology
Group Fund,
Corporation - wealth
0.81 113,143,154 113,143,154 0 113,143,154
2021 to 2023 management
Employee Stock product, etc.
Ownership Plan
(Phase I)
Sinatay Life
Fund,
Insurance Co.,
wealth
Ltd. - 0.74 104,190,172 25,499,072 0 104,190,172
management
Conventional
product, etc.
Product
ICBC Credit
Suisse Fund -
Fund,
Agricultural
wealth
Bank of China - 0.53 74,761,500 0 0 74,761,500
management
ICBC Credit
product, etc.
Suisse China
Securities
120
TCL Technology Group Corporation Annual Report 2021
Financial Asset
Management
Plan
Southern Asset
Management-
Agricultural
Fund,
Bank of China-
wealth
Southern China 0.53 74,761,500 0 0 74,761,500
management
Securities
product, etc.
Financial Asset
Management
Plan
Strategic investor or general
legal person becoming a
Not applicable
top-10 shareholder in a rights
issue
Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity Investment Partnership (Limited
Note on the above
Partnership) became persons acting in concert by signing the Agreement on Concerted Action,
shareholders’ associations or
holding 1,158,599,393 shares in total and becoming the largest shareholder of the
concerted actions
Company.
Explain if any of the
shareholders above was
involved in entrusting/being Not applicable
entrusted with voting rights
or waiving voting rights
Special account for share The top 10 shareholders above include “The Securities Account of TCL Technology Group
repurchases among the top 10 Corporation for Repurchases”, but they are not listed in the above top 10 shareholders. As of the end
shareholders of the Reporting Period, there were 293,415,852 shares in the account.
Top 10 unrestricted ordinary shareholders
Shares by class
Name of Shareholder Unrestricted shares held at the period-end
Shares by class Shares
RMB-denomina
Huizhou Investment Holding
743,139,840 ted ordinary 743,139,840
Co., Ltd.
stock
Wuhan Optics Valley RMB-denomina
Industrial Investment Co., 558,552,396 ted ordinary 558,552,396
Ltd. stock
RMB-denomina
Li Dongsheng and his
548,417,791 ted ordinary 548,417,791
acting-in-concert party
stock
Hong Kong Securities 447,848,011 RMB-denomina 447,848,011
121
TCL Technology Group Corporation Annual Report 2021
Clearing Company Ltd. ted ordinary
stock
RMB-denomina
China Securities Finance
373,231,553 ted ordinary 373,231,553
Corporation Limited
stock
RMB-denomina
Tibet Tianfeng Enterprise
246,568,838 ted ordinary 246,568,838
Management Co., Ltd.
stock
TCL Technology Group
RMB-denomina
Corporation - 2021 to 2023
113,143,154 ted ordinary 113,143,154
Employee Stock Ownership
stock
Plan (Phase I)
RMB-denomina
Sinatay Life Insurance Co.,
104,190,172 ted ordinary 104,190,172
Ltd. - Conventional Product
stock
ICBC Credit Suisse Fund -
Agricultural Bank of China - RMB-denomina
ICBC Credit Suisse China 74,761,500 ted ordinary 74,761,500
Securities Financial Asset stock
Management P lan
Southern Asset Management-
Agricultural Bank of China- RMB-denomina
Southern China Securities 74,761,500 ted ordinary 74,761,500
Financial Asset Management stock
Plan
Related or acting-in-concert
parties among top 10
Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity Investment Partnership (Limited
unrestricted outstanding
Partnership) became persons acting in concert by signing the Agreement on Concerted Action,
shareholders, as well as
holding 1,158,599,393 shares in total and becoming the largest shareholder of the
between top 10 unrestricted
Company.
outstanding shareholders and
top 10 shareholders
Top 10 ordinary shareholders Tibet Tianfeng Enterprise Management Co., Ltd., a shareholder of the Company, holds 154,173,746
involved in securities margin shares through the general securities account, and holds 92,395,092 shares through the credit
trading securities account, with a total of 246,568,838 shares actually held.
Indicate whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conducted
any promissory repo during the Reporting Period.
□ Applicable √ Not applicable
No such cases in the Reporting Period.
122
TCL Technology Group Corporation Annual Report 2021
2. The Company’s Controlling Shareholders
Explanation of The Company’s Absence of Controlling Shareholders
Mr. Li Dongsheng and Ningbo JiutianLiancheng 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.
As per Article 216 of the Company Law, a controlling shareholder refers to a shareholder who owns over 50%
of a limited liability company’s total capital or over 50% of a joint stock company’s total share capital; or, despite
the ownership of less than 50% of a limited liability company’s total capital or less than 50% of a joint stock
company’s total number of shares, who can still prevail in the resolution of a meeting of shareholders or a general
meeting of shareholders according to the voting rights corresponding to his interest in the limited liability
company’s total capital or the joint stock company’s total number of shares.
According to the definition above, the Company has no controlling shareholder or actual controller.
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
The Company’s controlling shareholder did not change during the Reporting Period.
3. Actual Controller and Its Acting-in-Concert Parties
Explanation of The Company’s Absence of Actual Controller
The “actual controller” refers to an entity which is not a shareholder of a company but actually controls the
company behaviors through investment relationship, agreement or other arrangements. According to the definition
above, the Company has no actual controller.
Whether there is any shareholder with a greater than 10% interest at the ultimate control level:
□ Applicable √ Not applicable
Change of the actual controller in the Reporting Period:
□ Applicable √ Not applicable
The Company’s actual controller did not change during the Reporting Period.
4. The cumulative pledged shares of the Company’s controlling shareholder or the largest shareholder and
its acting-in-concert parties account for 80% of the company shares held by them.
□ Applicable √ Not applicable
5. Other Corporate Shareholders Holding 10% or Greater
□ Applicable √ Not applicable
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TCL Technology Group Corporation Annual Report 2021
6. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder, Actual Controller,
Reorganizer and Other Commitment Makers
□ Applicable √ Not applicable
IV. Specific Implementation of Share Repurchase During the Reporting Period
Progress on any share repurchase:
√ Applicable □ Not applicable
The
proportion
of
Discl repurchased
Purpose Quantity of
osure Amount of Proposed shares to the
Number of shares to be Proportion to total share of share repurchased
time shares to be repurchase underlying
repurchased capital repurch shares
of the repurchased period shares
ase (shares)
plan involved in
the equity
incentive
plan
According to the upper limit of
According to the upper
the total amount of repurchase Within 12
limit of the total amount of
and the upper limit of The total months after
repurchase and the upper
repurchased share price, it is amount of the 9th
limit of repurchased share For
estimated that the number of share Meeting of
price, it is estimated that employ
eligible shares accounts for repurchase is the
the number of eligible ee stock
about 0.42% of the Company’s not less than Company’s
June shares is no less than owners
total share capital at that time. RMB600 Seventh
21, 58.3333 million. According hip 80,663,588 0.57%
According to the lower limit of million Board of
2021 to the lower limit of the plans or
the total amount of repurchase (inclusive) and Directors
total amount of repurchase equity
and the upper limit of the not more than deliberates
and the upper limit of the incentiv
repurchased share price, it is RMB700 and approves
repurchased share price, it es
estimated that the number of million this share
is estimated that the
eligible shares accounts for (inclusive). repurchase
number of eligible shares is
about 0.36% of the Company’s plan
about 50 million.
total share capital at that time.
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
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TCL Technology Group Corporation Annual Report 2021
Part VIII Bonds
I. Enterprise Bonds
□ Applicable √ Not applicable
No enterprise bonds in the Reporting Period.
II Corporate Bonds
√ Applicable □ Not applicable
1. General Information on Corporate Bonds
Unit: RMB'0,000
Way of
principal
Bond Date of Outstanding Coupon Place of
Bond name Abbr. Value date Maturity repayment and
code issuance balance rate transaction
interest
payment
TCL Corporation Interest payable
Corporate Bonds annually and Shenzhen
April 19, April 19,
Publicly Offered in 17TCL01 112518 April 18, 2017 100,000 3.40% principal Stock
2017 2022
2017 to Qualified repayable in full Exchange
Investors (Tranche 1) upon maturity
TCL Corporation Interest payable
Corporate Bonds annually and Shenzhen
Publicly Offered in 17TCL02 112542 July 6, 2017 July 7, 2017 July 7, 2022 15,700 3.45% principal Stock
2017 to Qualified repayable in full Exchange
Investors（ Tranche 2) upon maturity
TCL Corporation Interest payable
Corporate Bonds annually and Shenzhen
June 6, June 6,
Publicly Offered in 18TCL01 112717 June 5, 2018 17,001.90 4.00% principal Stock
2018 2023
2018 to Qualified repayable in full Exchange
Investors (Tranche 1) upon maturity
TCL Corporation
Interest payable
Corporate Bonds
annually and Shenzhen
Publicly Offered in August 17, August 20, August 20,
18TCL02 112747 200,000 3.55% principal Stock
2018 to Qualified 2018 2018 2023
repayable in full Exchange
Investors（ Tranche 2)
upon maturity
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TCL Technology Group Corporation Annual Report 2021
TCL Corporation Interest payable
Corporate Bonds annually and Shenzhen
May 20, May 20,
Publicly Offered in 19TCL01 112905 May 17, 2019 100,000 4.33% principal Stock
2019 2024
2019 to Qualified repayable in full Exchange
Investors (Tranche 1) upon maturity
TCL Corporation Interest payable
Corporate Bonds annually and Shenzhen
July 23, July 23,
Publicly Offered in 19TCL02 112938 July 19, 2019 100,000 4.30% principal Stock
2019 2024
2019 to Qualified repayable in full Exchange
Investors (Tranche 2) upon maturity
TCL Corporation Interest payable
Corporate Bonds annually and Shenzhen
October 17, October 21, October 21,
Publicly Offered in 19TCL03 112983 200,000 4.20% principal Stock
2019 2019 2024
2019 to Qualified repayable in full Exchange
Investors (Tranche 3) upon maturity
Investor eligibility (if any) For qualified investors / For professional investors
Trading system applicable Not applicable
Risk of termination of listing and trading (if
No
any) and countermeasures
Overdue bonds:
□ Applicable √ Not applicable
2. Triggering and implementation of issuer or investor option clauses and investor protection clauses
√ Applicable □ Not applicable
In accordance with the provisions of the Prospectus for TCL Technology Group Corporation Corporate
Bonds Publicly Offered in 2018 to Qualified Investors (Tranche 1), the bondholders of 18TCL01 elected to sell
back all or part of their 18TCL01 to TCL Technology Group Corporation during the sell-back registration period
(May 11, 2021 to May 17, 2021) at the sell-back price of RMB100/bond (excluding interest). The coupon rate
decreased from 5.48% to 4.00% 2 years after the existence period, and the sell-back fund was released on June 7,
2021. According to the data provided by the Shenzhen Branch of China Securities Depository and Clearing
Corporation Limited, the number of 18TCL01 sold back was 8,299,810 during the sell-back registration period,
and the sell-back amount was RMB829,981,000. As indicated in the Announcement on Sell-back Declaration
Results, the issuer would resell the sold-back bonds from June 8, 2021 to July 6, 2021, and the number of bonds to
be resold would be 8,299,810. Based on cost considerations, the Company decided not to resell the bonds of the
tranche, so the number of resold bonds of the tranche was 0. After the implementation of the resale, the Company
applied to the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited for the
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TCL Technology Group Corporation Annual Report 2021
cancellation of the 8,299,810 bonds not resold. After the cancellation, the number of remaining 18TCL01
depository bonds was 1,700,190.
In accordance with the provisions of the Prospectus for TCL Technology Group Corporation5 Corporate
Bonds Publicly Offered in 2018 to Qualified Investors (Tranche 1), the bondholders of 18TCL02 elected to sell
back all or part of their 18TCL02 to TCL Technology Group Corporation during the sell-back registration period
(July 23, 2021 to July 29, 2021) at the sell-back price of RMB100/bond (excluding interest). The coupon rate
decreased from 5.3% to 3.55% 2 years after the existence period, and the sell-back fund was released on August
20, 2021. According to the data provided by the Shenzhen Branch of China Securities Depository and Clearing
Corporation Limited, the number of 18TCL02 sold back during the sell-back registration period was 11,871,052,
and the sell-back amount was RMB1,187,105,200. As indicated in the Announcement on Sell-back Declaration
Results, the issuer would resell the sold-back bonds from August 23, 2021 to October 12, 2021, and the number of
bonds to be resold would be 11,871,052. According to the Announcement on the Implementation Results of Bond
Resale, the number of bonds resold in this tranche was 11,871,052, and the average resale price was
RMB100.254/bond, of which 11,871,052 bonds were resold through manual transfer, and the number of
remaining 18TCL02 depository bonds was 20,000,000.
3. Intermediary Organizations
Accountants
Name of intermediary Contact of intermediary
Name of bond project Office address writing Tel.
organization organization
signatures
19TCL03, 19TCL02,
19TCL01, 18TCL02, GuotaiJunan Securities 33F, One Museum Place, Xu Lei, Wu Lei, Li 021
