TCL科技:2021年第一季度报告全文(英文版)

 TCL 科技集团股份有限公司
  TCL Technology Group Corporation




FIRST QUARTERLY REPORT 2021




              27 April 2021




                    1
TCL Technology Group Corporation                                          First Quarterly 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 shall be jointly and severally liable for any misrepresentations,
misleading statements or material omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report,
and all the Company’s supervisors have attended the meeting of the Supervisory Committee
for the review of this Report
Mr. Li Dongsheng, the Chairman of the Board, Ms. Du Juan, 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.
This Report has been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese version shall
prevail.




                                                2
TCL Technology Group Corporation                                                                          First Quarterly Report 2021



                                                    Table of Contents


Part I Important Notes, Table of Contents and Definitions ......................................................... 2

Part II Key Corporate Information ............................................................................................. 4

Part III Directors’ Report ............................................................................................................. 9

Part IV Significant Events .......................................................................................................... 17

Part V Financial Statements ....................................................................................................... 26




                                                                    3
TCL Technology Group Corporation                                                                               First Quarterly Report 2021




                                    Part II Key Corporate Information

I Key Financial Information

Indicate whether there is any retrospectively restated datum in the table below.

□ Yes ■ No

                                                           Q1 2021                       Q1 2020                       Change (%)

 Revenue (RMB)                                              32,143,561,563                13,742,129,162                         133.91%

 Net profit attributable to the company’s
                                                              2,403,729,935                  408,125,802                         488.97%
 shareholders (RMB)
 Net profit attributable to the company’s
 shareholders before non-recurring gains                      2,123,056,041                 -109,881,642                        2032.13%
 and losses (RMB)
 Net cash generated from/used in operating
                                                              8,003,201,979                2,299,183,493                         248.09%
 activities (RMB)

 Basic earnings per share (RMB/share)                                   0.1781                     0.0316                        463.61%

 Diluted earnings per share (RMB/share)                                 0.1713                     0.0302                        467.22%

 Weighted average return on equity (%)                                  7.07%                          1.35%                        5.72%

                                                        31 March 2021              31 December 2020                    Change (%)

 Total assets (RMB)                                        274,693,487,644               257,908,278,887                            6.51%

 Owners’ equity attributable to the
                                                            35,224,374,002                34,107,795,454                            3.27%
 company’s shareholders (RMB)
The total share capital at the end of the last trading session before the disclosure of this Report:

Total share capital at the end of the last trading session before the
                                                                                                                             14,030,788,362
disclosure of this Report (share)

Fully diluted earnings per share based on the latest total share
                                                                                                                                     0.1713
capital above (RMB/share)



Non-recurring gains and losses:
                                                                                                                                  Unit: RMB
                                    Item                                                     Q1 2021                              Note
 Gain or loss on disposal of non-current assets (inclusive of
                                                                                                               -14,935,921   Not applicable
 impairment allowance write-offs)
 Government subsidies charged to current profit or loss (exclusive
 of government subsidies given in the Company’s ordinary course of
                                                                                                               302,185,840   Not applicable
 business at fixed quotas or amounts as per the government’s
 uniform standards)




                                                                        4
TCL Technology Group Corporation                                                                           First Quarterly Report 2021


 Gain or loss on fair-value changes in held-for-trading and
 derivative financial assets and liabilities & investment income from
 disposal of held-for-trading and derivative financial assets and                                           25,600,678      Not applicable
 liabilities and other debt investments (exclusive of effective portion
 of hedges that arise in the Company’s ordinary course of business)
 Non-operating income and expense other than the above                                                     113,649,860      Not applicable

 Less: Corporate income tax                                                                                 73,184,923      Not applicable

         Non-controlling interests (net of tax)                                                             72,641,640      Not applicable
 Total                                                                                                     280,673,894            --

Explanation of why the Company reclassifies as recurrent a non-recurring gain/loss item defined or listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-Recurring Gain/Loss
Items:

□ Applicable ■ Not applicable


II Total Number of Shareholders and Holdings of Top 10 Shareholders at the End of the
Reporting Period

1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders

                                                                                                                                Unit: share

                                                           Number of preference shareholders
Number of ordinary shareholders at
                                                  570,474 with resumed voting rights at the                                              -
the period-end
                                                           period-end (if any)

                                                         Top 10 shareholders

     Name of             Nature of        Shareholding                           Restricted shares        Shares in pledge or frozen
                                                           Total shares held
   shareholder          shareholder         percentage                                 held               Status              Shares

  Li Dongsheng                                                                                       Put in pledge by
                     Domestic natural                                                                                         144,000,000
     and his                                                                                         Li Dongsheng
                      person/general               8.26%      1,158,599,393           610,181,602
acting-in-concert                                                                                    Put in pledge by
                       legal person                                                                                           344,899,521
         party                                                                                       Jiutian Liancheng
     Huizhou
                    State-owned legal
   Investment                                      5.30%        743,139,840                      -                      -                -
                          person
Holding Co., Ltd.

  Wuhan Optics
 Valley Industrial State-owned legal
                                                   3.65%        511,508,951           511,508,951                       -                -
 Investment Co.,          person
         Ltd.

   Hong Kong           Foreign legal
                                                   3.26%        457,850,083                      -                      -                -
    Securities            person



                                                                    5
TCL Technology Group Corporation                                                                First Quarterly Report 2021


       Clearing
 Company Ltd.

China Securities
       Finance       Domestic general
                                            2.66%        373,231,553                  -                      -                -
  Corporation          legal person
       Limited

 Tibet Tianfeng
   Enterprise        Domestic general
                                            1.76%        247,284,337                  -                      -                -
Management Co.,        legal person
         Ltd.

                     Domestic natural
   Fang Deji                                1.47%        206,130,576
                          person

 Zhejiang Yiwu
       Tanzhen
   Investment
  Management
   Partnership
                       Fund, wealth
       (Limited
                       management           1.03%        145,169,128
 Partnership)-
                       product, etc.
  Loyal Valley
(Tanzhen) Value
China Exclusive
Private Securities
Investment Fund

 National Social
                       Fund, wealth
       Security
                       management           0.93%        129,785,014                  -                      -                -
 Fund-Portfolio
                       product, etc.
         601

CITIC Securities
-CITIC Bank-
CITIC Securities       Fund, wealth
 Dividend Value        management           0.58%         80,906,050                  -                      -                -
One-Year Mixed         product, etc.
Collective Asset
Management Plan

                                            Top 10 unrestricted shareholders

                                                                                                     Shares by type
          Name of shareholder           Unrestricted shares held at the period-end
                                                                                                Type             Shares

Huizhou Investment Holding Co.,                                                           RMB-denominate
                                                                            743,139,840                          743,139,840
Ltd.                                                                                      d ordinary stock

Li Dongsheng and his                                                        548,417,791 RMB-denominate           548,417,791


                                                            6
TCL Technology Group Corporation                                                                          First Quarterly Report 2021


acting-in-concert party                                                                            d ordinary stock

Hong Kong Securities Clearing                                                                      RMB-denominate
                                                                                    457,850,083                             457,850,083
Company Ltd.                                                                                       d ordinary stock

China Securities Finance                                                                           RMB-denominate
                                                                                    373,231,553                             373,231,553
Corporation Limited                                                                                d ordinary stock

Tibet Tianfeng Enterprise                                                                          RMB-denominate
                                                                                    247,284,337                             247,284,337
Management Co., Ltd.                                                                               d ordinary stock

                                                                                                   RMB-denominate
Fang Deji                                                                           206,130,576                             206,130,576
                                                                                                   d ordinary stock

Zhejiang Yiwu Tanzhen Investment
Management Partnership (Limited
                                                                                                   RMB-denominate
Partnership)-Loyal Valley                                                          145,169,128                             145,169,128
                                                                                                   d ordinary stock
(Tanzhen) Value China Exclusive
Private Securities Investment Fund

National Social Security                                                                           RMB-denominate
                                                                                    129,785,014                             129,785,014
Fund-Portfolio 601                                                                                 d ordinary stock

CITIC Securities-CITIC Bank-
CITIC Securities Dividend Value                                                                    RMB-denominate
                                                                                      80,906,050                             80,906,050
One-Year Mixed Collective Asset                                                                    d ordinary stock
Management Plan

Bank of Communications Co., Ltd.
                                                                                                   RMB-denominate
-China Southern Growth Pioneer                                                       77,368,741                             77,368,741
                                                                                                   d ordinary stock
Mixed Securities Investment Fund

                                       Being acting-in-concert parties upon the signing of the Agreement on Acting in Concert, Mr.
Related or acting-in-concert parties   Li Dongsheng and Xinjiang Jiutian Liancheng Equity Investment Partnership (Limited
among the shareholders above           Partnership) (hereinafter referred to as “Jiutian Liancheng”) are the biggest shareholder of the
                                       Company with a total of 1,158.5994 million shares.

                                       Shareholders Fang Deji and Zhejiang Yiwu Tanzhen Investment Management Partnership
Top 10 shareholders involved in
                                       (Limited Partnership)-Loyal Valley (Tanzhen) Value China Exclusive Private Securities
securities margin trading (if any)
                                       Investment Fund held shares in the Company in margin accounts.

Note: The top 10 shareholders in the table above do not include “The Securities Account of TCL Technology Group Corporation for
Repurchases”. As of the end of the Reporting Period, there were 484,206,763 shares in the account.

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.
□ Yes ■ No
No such cases in the Reporting Period.


2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them

□ Applicable ■ Not applicable


                                                                    7
TCL Technology Group Corporation                                              First Quarterly Report 2021




                                   Part III Directors’ Report

I.      Overview

     In the Reporting Period, the rollout of the COVID-19 vaccine and the implementation of
relaxed policies contributed to the recovery of the global economy. However, the adjustment of
relations among major countries continued to disturb the trade order, increasing the instability of the
industrial chain, and accelerating the differentiation and restructuring of the global economic
pattern. The manufacturing, as a source of China's economic competitiveness and comparative
competitive advantage, will usher in a new stage of development. In the face of the challenges and
opportunities, the Company continued its efforts in line with the spirit of “Ramping up, Catching up
and Going all out to be A Global Leader”, the requirements of the "9205" strategic development
plan and the operating strategy of “improving operating quality and profitability, consolidating
advantages and improving disadvantages, accelerating global layout, and driving development via
innovation” to promote the two core businesses, namely the semi-conductor display business and
the semi-conductor photovoltaic and semi-conductor materials business, to be global leading
industries.

     In the first quarter of 2021, the Company recorded a revenue of RMB32.144 billion, up by
133.91% year-on-year; a net profit of RMB3.236 billion, up by 10.96 times year-on-year; a net
profit attributable to the Company’s shareholders of RMB2.404 billion, up by 488.97%
year-on-year. TCL CSOT and Zhonghuan Semiconductor had great performance in these two core
industries. The semi-conductor display industry had constant improvement in the competition
pattern and the supply and demand relationship, resulting in the price rise; the new production line
is raising its mass production, and the scale effect and market position are increasing, product
portfolio in high-end market and medium-size products is expanded. TCL CSOT recorded a net
profit of RMB2.396 billion, up by RMB2.57 billion year-on-year and by 29.12% quarter-on-quarter,
including a quarter-on-quarter net profit increase of 52.96% from large-size products, achieving
continuously leading efficiency and profitability. The main raw materials in the photovoltaic
industry continued to increase in price, and the competition pattern tends to be more complex.


                                                   8
TCL Technology Group Corporation                                            First Quarterly Report 2021



Zhonghuan Semiconductor redefined its corporate development strategy, and reduced the costs,
increased the capacity of existing equipment, improved product quality and consistency, and
reduced raw material consumption per unit of product through technological innovation and
improved manufacturing process. The total capacity of photovoltaic monocrystalline silicon product
reached 60GW two months ahead of schedule, the market competitiveness, market share and
profitability improved month by month. With continued global semiconductor shortage, Zhonghuan
Semiconductor had accelerated growth in the business of raw materials used for power
semiconductor products. The 8-12-inch large silicon wafers project ramped up smoothly, with a
revenue increase of c. 80% year-on-year. Zhonghuan Semiconductor achieved a net profit of
RMB743 million, up by 100.0% year-over-year.

    Looking into the rest of 2021, TCL CSOT and Zhonghuan Semiconductor will continue to
grow robustly. Phase I of the t7 production line in Shenzhen will reach design capacity this year. 60%
shares of Suzhou China Star Optoelectronics (t10) and 100% shares of Suzhou China Star Display
(M10) were acquired, which will contribute to revenue of the Company from the second quarter of
2021; Moka International Limited will be included in the consolidated statements of the Company
from the second quarter of 2021; t9 production line in Guangzhou will be a new driving force in
medium-size field as the Board of Directors has approved it. Zhonghuan Semiconductor accelerated
construction of phase V monocrystalline silicon project in Inner Mongolia, and Zhonghuan Phase
VI 50GW(G12) project in Yinchuan, Ningxia Province was commenced as planned. In a new round
of pattern reshaping driven by technological innovation, industrial ecosystem and ultimate
efficiency in the PV industry, Zhonghuan Semiconductor stands out thanks to its accumulated
technological advantages. Through the G12 platform and overlapped-cell products’ technological
strength, the ecological resources of the fast-growing industrial alliance, and the first layout of
advantageous production capacity, Zhonghuan Semiconductor is confident to complete the Double
Operating Profit Plan in 2021.

    TCL Tech. will seize the golden period of global economic pattern adjustment and China's
manufacturing development, and march forward to be a global industry leader with a stronger
driving force for development!




                                                 9
TCL Technology Group Corporation                                              First Quarterly Report 2021


II. Core Business Analysis

      The business structure of the Company primarily consists of the semi-conductor display
business, the semi-conductor photovoltaic and semi-conductor materials business, the industrial
finance and investment business, as well as the other businesses. The Company will continue to
optimize its business structure and further focus its resources on the development of the two core
businesses, and achieve the strategic goal of global leadership in the two core businesses, namely
the semi-conductor display and the semi-conductor photovoltaic and semi-conductor materials.




(I)     Semi-conductor display business

      The supply-demand relationship in the semi-conductor display industry was improved,
industry consolidation was accelerated, product prices continued to rise, and the overall profitability
of the industry was enhanced. TCL CSOT continued to adhere to established strategies and
operating strategy, held the business bottom line of maximizing cost efficiency, continuously
improved management capabilities and control systems to consolidate the global industry
leadership in terms of efficiency and profitability. In the Reporting Period, TCL CSOT recorded
a product sales area of 8.344 million square meters, up by 17.5% year-on-year; a revenue of
RMB17.373 billion, up by 90.0% year-on-year; and a net profit of RMB2.396 billion, up by
RMB2.57 billion year-on-year or by 29.12% compared with Q4 2020.

      The large-size panel business expanded its scale advantage, further promoted its market
position and maintained leading efficiency and profitability in the world. t1, t2 and t6 plants
continued to operate at full capacity for strong sales. The t7 plant raised production as scheduled.
The shipment of large-size products reached 7.9453 million square meters, up by 15.5%

                                                  10
TCL Technology Group Corporation                                             First Quarterly Report 2021



year-on-year. 12.8133 million pieces were shipped with a year-on-year increase of 7.57%. Sales
revenue was RMB12.072 billion, rising by 94.9% year-on-year. Globally, the Company rose to
second place in the ranking of market share in TV panels. Besides, it was ranked first regarding the
market share in 55-inch products, second in 32-inch, 65-inch and 75-inch products. The shipment of
interactive whiteboards jumped to the top across the world. Market shares in commercial displays,
such as rail transit products and splicing screen, climbed swiftly.

     For the small-size panel business, close attention was paid to enhancement of technical
capacity and optimization of product and customer structures. In terms of the t3 LTPS
production line, technical capacity was continuously enhanced, product structure was diversified,
and cooperation with strategic customers was deepened; the shipment of LTPS mobile panels took
fourth place globally, the shipment of LTPS notebook panels was ranked second in the world, with
continuous robust growth. The t4 production line of flexible AMOLED displays produced at full
capacity in Phase I. The flexible foldable screens grew due to the volume spike of new types
launched by brand customers. Breakthroughs in new customers will be made further as equipment
for Phases II and III are being moved in. In the Reporting Period, due to the significant increase in
fixed costs driven by the expansion of new production lines and seasonal factors, the performance
of small-size panel business slightly declined quarter on quarter, and the Company actively
improved its operational benefits through product structure optimization and maximizing cost
reduction. In the Reporting Period, the shipment of t3 and t4 reached 398,700 square meters, up by
81.2% year-on-year; 25.8972 million pieces were shipped with a year-on-year increase of 55.1%.
The revenue from the small-size panel business amounted to RMB5.30 billion, increasing by 79.8%
year-on-year.

     The medium-sized panel business had fast improved comprehensive competitiveness and
became a new driving force for the growth of TCL CSOT. To grasp the market opportunities
brought by emerging application scenarios and demand of performance upgrade, and to enhance
TCL CSOT's market share and competitive advantage in medium-sized displays, the Company
rapidly implemented its medium-sized panel business strategy and completed its reserve in
technology, product and customer, and as a result, successfully introduced multiple world famous
brands of high-end notebooks, tablets and vehicle displays. Based on the existing products, R&D


                                                   11
TCL Technology Group Corporation                                               First Quarterly Report 2021



and customer base, the 8.6 generation oxide semiconductor new display device production line (t9
plant) project was quickly built to expand capacity for the medium-sized product market and
customers, further diversified the e-sports displays, high-end notebooks, tablets, and vehicle
displays and commercial displays. The Company accelerated the upgrade from a global leader in
large-size display industry to a global leader in full-size display industry by leveraging its
advantages in low-power consumption, high refresh rate, wide color gamut and other technological
areas.

       Looking into the future, the long-term prospects of the semi-conductor display industry
are promising, TCL CSOT continued growth in scale and strengthened its efficiency
advantages. The concentration of LCD industry is improved and leading enterprises have
developed a significant industry barrier. TCL CSOT’s market share and competitive advantage will
continue to improve significantly over the next 12 quarters as the takeover of t10 plant is completed,
the t7 plant continues its capacity ramp-up, phases II and III of the t4 plant are accelerated, and
construction of t9 plant starts. The Company will continuously optimize product and revenue
structures, implement strategic layout of high-end products, and enhance the scale and overall
competitiveness of full-size products to drive its sustainable and quality progress.



(II)     Semi-conductor photovoltaic and semi-conductor materials

       The year 2021 marks the start of ownership reform of Zhonghuan Semiconductor. The
company updated the "9205" development strategic plan, which clarifies the overall goal of
"global leading strategy for new energy materials and catching up strategy for semiconductor
materials", and accelerated the renewal of opeartions and improved organizational vitality,
optimized industrial layout, consolidated advantages and improved disadvantages, and improved
operating quality and profitability. In the Reporting Period, Zhonghuan Semiconductor accelerated
the

         enhancement of G12 product technology and overlapped-cell modules technology barriers
and industrialization process, expand the leading edge of silicon wafer for power semiconductor
products, and accelerate the increase of the production capacity of silicon wafer for IC products. It
recorded a revenue of RMB7.46 billion, up by 65.23% year-on-year; a net profit of RMB743


                                                  12
TCL Technology Group Corporation                                             First Quarterly Report 2021



million, up by 100.0% year-on-year.

     In terms of semi-conductor photovoltaic, Zhonghuan Semiconductor grasped the golden
opportunity of industry development and accelerated the expansion from technology
leadership to advanced capacity scale leadership and industrial chain ecology leadership.
Focusing on the development and integration of two platform-level technologies, namely G12
large-size silicon wafers and high-efficiency overlapped-cell modules, and leveraging Industry
4.0 and lean intelligent manufacturing, the company took advantage of product and
technology to enhance industrial competitiveness.

     In terms of photovoltaic materials, the company's G12 monocrystalline silicon and silicon
wafers in the Reporting Period gradually highlighted its technical advantages, product sales and
earnings grew month by month, and the company's advanced production capacity entered a period
of rapid growth. Phase V crystal production capacity in Inner Mongolia's is climbing as scheduled;
following the start of operation of the DW-cut ultra-thin silicon wafer project in Tianjin, for the
Inner Mongolia Zhonghuan Solar Phase II 25GW(G12) wafer project, the first batch of process
equipment arrived at the plant, and commissioning was completed at the end of February, and this
project is expected to start production in April 2021 and reach design capacity within the year; the
construction of the 50GW(G12) intelligent factory project launched in Yinchuan started. In addition,
through a new round of technical reform and manufacturing methods improvement, Zhonghuan
Semiconductor economically increased the theoretical unit capacity of existing equipment and the
actual capacity during the Reporting Period, which jointly facilitated the total monocrystalline PV
silicon capacity to be more than 60GW 2 months ahead of the original plan and effectively reduced
the unit investment cost of the company's advanced capacity.

     Moreover, the technical reform and manufacturing methods improvement have effectively
improved product quality and consistency, reduced raw material consumption per unit of product,
and continuously reduced operating costs. As a result, profits on the manufacturing side increased
by more than RMB155 million in the first quarter, absorbing to some extent the impact of the price
increase of raw and auxiliary material during the Reporting Period. Relevant technological
innovation and the continued application of Industry 4.0 in the company's operation scenarios and
business processes will bring sustained contributions to the production and sales scale and operating
                                                 13
TCL Technology Group Corporation                                            First Quarterly Report 2021



results in the PV materials segment throughout the year.

     In terms of photovoltaic cells and modules, Zhonghuan Semiconductor continuously
performed R&D of module technology for the overlapped-cell 3.0 production line and PERC3.0
cell technology, collaborated with domestically leading G12 PERC cell manufacturers in investing
resources for new technology R&D to improve the cost performance of overlapped-cell module
products and achieve the differentiating competitiveness of the final products. The capacity turned
5GW/year at the end of the Reporting Period. In the Reporting Period, based on the intellectual
property rights and R&D capacities of MAXEON in IBC cells and components and overlapped-cell
modules, the company further built up its manufacturing system of cells and components as well as
surface and distributed power stations worldwide and improved overseas industrial layout and
global supply chain system.

     In terms of semi-conductor materials business, Zhonghuan Semi-conductor strengthened
product technology development and industrial capacity building, and improved product
structure to meet the differentiating needs of strategic customers.

     In the Reporting Period, benefiting from the inadequate supply in global and Chinese
semiconductor markets and the improvement of its competitiveness, Zhonghuan Semiconductor
increased revenue from silicon wafers by c. 80% year-on-year. Dominated by 5-inch, 6-inch and
8-inch silicon wafers for power semiconductor products, the segment growth accelerated, it was at a
leading position and had brand recognition in the domestic market in terms of production and sales
scale, product diversity, product quality and product certification speed; the production and sales
scale of the dominant 8-inch and 12-inch silicon wafers for IC products grew fast, and verification
of strategic customers at home and abroad accelerated. The 8-12-inch large silicon wafer project for
integrated circuits in Yixing, Jiangsu Province is raising capacity smoothly and a short supply
situation has occurred, laying the market foundation for continued capacity release in 2021. By
actively expanding global marketing and service capabilities, actively building market channel
networks in Europe, Japan, Taiwan and other regions where the semiconductor businesses cluster,
creating technical support platforms, and strengthening global system service capabilities,
Zhonghuan Semiconductor achieved 30% overseas sales of materials business in the first quarter of
2021.
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TCL Technology Group Corporation                                            First Quarterly Report 2021



     Looking into the rest of 2021, Zhonghuan Semiconductor will increase investment and asset
restructuring of Inner Mongolia base, Tianjin base and Jiangsu base of Zhonghuan Advanced,
orderly promote the coverage of the company’s products for power semiconductors chips and
integrated circuit chips of all kind; As the company maintains the domestic and global leadership of
Zhonghuan Advanced in power semi-conductor chips of all kinds, it will further improve service
capability for customers with the advanced production process and to raise further the market share
in this area.



(III) Industrial Finance and Investment Business

     TCL Capital seeks investment opportunities in key fields of high-tech industries, including
new display, semi-conductor industry chain, as well as key materials and process equipment. These
investments took a balanced approach to promote technology development and derive economic
benefits. By the end of the Reporting Period, the AUM of TCL Capital exceeded RMB9 billion, and
114 projects were invested cumulatively. Currently, it holds the stake of CATL, DKEM, Cambricon,
Newtouch Software, Petro-king Oilfield, ZJBC, HyUnion Holding and other listed companies; as
for Admiralty Harbour Capital, the investment banking and asset management business grew
steadily and it has issued and underwritten 9 bonds and 2 debt management projects. China
Innovative focused on industrial chain investment opportunities related to the Company’s two core
businesses, and has invested in more than 110 listed companies cumulatively with a steady growth
in performance.

     In the Reporting Period, the finance team focused on the funding needs of the Company’s key
projects, strengthened the active management of liquidity and currency risk, and gradually satisfied
financial needs of business globalization to support the core businesses of the Company to achieve
global leadership.




                                                 15
TCL Technology Group Corporation                                                           First Quarterly Report 2021




                                     Part IV Significant Events

I Major Changes of Main Items in Financial Statements and Financial Indicators within the
Reporting Period, as well as the Reasons for the Changes

                                                                                                               Unit: RMB

    Balance sheet items       31 March 2021          31 December 2020        Change (%)        Reasons for the Changes

                                                                                             Decrease in derivatives
Derivative financial assets           219,179,859             453,578,245          -51.7
                                                                                             investments
Notes receivable                     1,052,967,190            595,685,338           76.8     Increase in revenue

                                                                                             Increase in prepayments to
Prepayments                          1,824,063,319           1,355,653,454          34.6
                                                                                             suppliers
                                                                                             Increase in receivables in
Other receivables                    8,465,195,129           2,793,640,153         203.0
                                                                                             relation to investments
                                                                                             Increase in borrowings
Borrowings from central                                                                      received by TCL Tech
                                      668,442,302             469,834,291           42.3
bank                                                                                         Finance Co., Ltd. from the
                                                                                             central bank
Held-for-trading financial                                                                   Increase in financial
                                     1,368,835,184            527,901,041          159.3
liabilities                                                                                  products
Derivative financial                                                                         Decrease in derivatives
                                      174,841,937             384,903,731          -54.6
liabilities                                                                                  investments

Taxes and levies payable              979,478,482             670,058,792           46.2     Increase in earnings

                                                                                             Effect of the new accounting
Long-term payables                    565,351,943            1,280,299,665         -55.8
                                                                                             standard governing leases
Other comprehensive                                                                          Foreign currency translation
                                      -297,310,404           -145,573,093         -104.2
income                                                                                       differences

  Income statement items           Q1 2021               Q1 2020             Change (%)        Reasons for the Changes

                                                                                             Increase in revenue and
Revenue                             32,143,561,563        13,742,129,162           133.9     consolidation of Zhonghuan
                                                                                             Electronics

                                                                                             Increase in revenue and
Cost of sales                       25,383,357,989        12,743,745,923            99.2     consolidation of Zhonghuan
                                                                                             Electronics

                                                                                             Increase in earnings and
Taxes and levies                      106,853,638              38,902,775          174.7     consolidation of Zhonghuan
                                                                                             Electronics

                                                                                             Increase in revenue and
Selling expense                       330,230,062             159,592,940          106.9     consolidation of Zhonghuan
                                                                                             Electronics


                                                        16
TCL Technology Group Corporation                                                                       First Quarterly Report 2021


                                                                                                         Increase in business and
Administrative expense                       763,004,335                 321,790,541          137.1      consolidation of Zhonghuan
                                                                                                         Electronics

                                                                                                         Increase in R&D
                                                                                                         investments and
R&D expense                                1,540,240,528                 837,453,524           83.9
                                                                                                         consolidation of Zhonghuan
                                                                                                         Electronics

                                                                                                         Increase in financings and
Finance costs                                740,010,321                 384,913,273           92.3      consolidation of Zhonghuan
                                                                                                         Electronics

                                                                                                         Decrease in government
Other income                                 343,452,869                 620,518,501           -44.7
                                                                                                         subsidies

Gain on changes in fair                                                                                  Changes in the fair value of
                                            -292,943,771                -205,634,246           -42.5
value                                                                                                    derivatives

                                                                                                         Increase in impairment loss
Credit impairment loss
                                             -31,736,912                   -7,478,551         324.4      on loans and advances to
( “-” for loss)
                                                                                                         customers

                                                                                                         Increase in operating profit
Income tax expense                           487,257,128                  25,846,940         1,785.2     and consolidation of
                                                                                                         Zhonghuan Electronics

                                                                                                         Increase in net profit and
Net profit attributable to
                                             831,927,064                -137,547,929          704.8      consolidation of Zhonghuan
non-controlling interests
                                                                                                         Electronics

Cash flow statement items               Q1 2021                     Q1 2020             Change (%)         Reasons for the Changes

Net cash generated                                                                                       Increase in revenue and
from/used in operating                     8,003,201,979                2,299,183,493         248.1      consolidation of Zhonghuan
activities                                                                                               Electronics

                                                                                                         Loan repayment and
Net cash generated
                                                                                                         increase in the interest in
from/used in financing                     2,657,860,614                7,670,463,871          -65.3
                                                                                                         Zhonghuan Semiconductor
activities
                                                                                                         in the Reporting Period


II Progress, Influence and Solutions with regard to Significant Events

        Summary of the significant event                     Disclosure date                Index to the related announcement

Announcement on the Completion of the
Non-Deal Transfer under the Third Global 22 January 2021
Partner Plan                                                                            http://www.cninfo.com

Voluntary Announcement on the Increase
                                                 4 February 2021
in the Interest in Tianjin Printronics Circuit



                                                                   17
     TCL Technology Group Corporation                                                                                             First Quarterly Report 2021


    Corporation

    Announcement on the Progress on the
    Acquisition of a 60% Interest in Samsung
    Suzhou LCD Co. Ltd. and the 100%                  8 February 2021
    Interest in Samsung Display Suzhou Co.,
    Ltd.

    Voluntary Announcement on the Increase
    in the Interest in Tianjin Printronics Circuit 17 March 2021
    Corporation

    Voluntary Announcement on the Increase
    in the Interest in Tianjin Zhonghuan              18 March 2021
    Semiconductor Co., Ltd.

    Progress of any share repurchase:

    □ Applicable ■ Not applicable
    Progress on reducing the repurchased shares by means of centralized bidding:
    □ Applicable ■ Not applicable


    III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,
    Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the
    Reporting Period

    □ Applicable      ■ Not applicable


    IV Financial Investments

    1. Securities Investments

                                                                                                                                                 Unit: RMB’0,000
                                                                     Gain/loss         Cumulati

                                              Measu                     on                 ve
                                                                                                    Purchased                    Gain/los
           Secu                    Initial    remen   Beginning      fair-value        fair-valu                 Sold in the                Ending                  Fundin
Securit             Security                                                                          in the                     s in the               Account
           rity                  investment     t     carrying       changes in            e                     Reporting                  carrying                  g
y type                name                                                                          Reporting                    Reportin               ing title
           code                     cost      metho    amount           the            changes                     Period                   amount                  source
                                                                                                     Period                      g Period
                                                d                    Reporting         recorded

                                                                      Period           in equity

Bank’s             Sea Gull
                                                                                                                                                        Held-for
wealth     Not      Collective
                                               Fair                                                                                                     -trading    Self-fu
manage     appli     Capital         20,000                      -            260               -       20,000               -       260       20,260
                                              value                                                                                                     financia     nded
 ment      cable   Trust Plan
                                                                                                                                                        l assets
product               No. 2

Convert    Not     Convertible                 Fair                                                                                                     Held-for    Self-fu
                                    115,077                      -                -             -     115,077       103,005         1,046      12,072
 ible      appli    bonds of                  value                                                                                                     -trading     nded




                                                                                      18
     TCL Technology Group Corporation                                                                         First Quarterly Report 2021


bonds     cable     Bank of                                                                                                       financia

                    Shanghai                                                                                                      l assets

                                                                                                                                  Investm

                                                                                                                                  ents in

          0860                               Fair                                                                                  other     Self-fu
Stock                Apollo         24,336             17,847         -        -12,801          -         -        -     11,637
          .HK                                value                                                                                 equity     nded

                                                                                                                                  instrum

                                                                                                                                    ents

Tier 2    Not       20 China                 Amort                                                                                 Debt
                                                                                                                                             Self-fu
capital   appli      CITIC          10,000   ized      10,148         -              -          -         -      95      10,244   investm
                                                                                                                                              nded
 debt     cable    Bank Tier 2               cost                                                                                   ents

                   Yuanheng

Asset              FOF Single                                                                                                     Held-for
          Not
manage               Asset                   Fair                                                                                 -trading   Self-fu
          appli                     10,000             10,040        89              -          -         -      89      10,129
 ment              Manageme                  value                                                                                financia    nded
          cable
 plan              nt Plan No.                                                                                                    l assets

                       1

          USG                                                                                                                     Held-for

          9T27      Vedanta                  Fair                                                                                 -trading   Self-fu
Bonds                                8,337                  -      -213              -      8,337         -     -213      8,251
          HA       Resources                 value                                                                                financia    nded

          D62                                                                                                                     l assets

          XS2                                                                                                                     Held-for

          2939     Easy Tactic               Fair                                                                                 -trading   Self-fu
Bonds                                7,890                  -       272              -      7,890         -     272       8,221
          1828        Ltd                    value                                                                                financia    nded

           5                                                                                                                      l assets

          USG                                                                                                                     Held-for
                    Vedanta
          9328                               Fair                                                                                 -trading   Self-fu
Bonds              Resources         7,541                  -        45              -      7,541         -     302       7,641
          DA                                 value                                                                                financia    nded
                      Ltd
          M23                                                                                                                     l assets

          US7                                                                                                                     Held-for

          1654      Petroleos                Fair                                                                                 -trading   Self-fu
Bonds                                6,677              7,019      -165              -          -         -      46       6,902
          QCG      Mexicanos                 value                                                                                financia    nded

           55                                                                                                                     l assets

          XS1                                                                                                                     Held-for

          6426      Softbank                 Fair                                                                                 -trading   Self-fu
Bonds                                6,969              6,704        41              -          -         -     265       6,793
          8667     Group Corp                value                                                                                financia    nded

           6                                                                                                                      l assets

Other securities
investments held at the          585,818      --     499,197    -19,391        6,841     112,409    333,493   1,321    305,524       -         --
period-end
Total                            802,646      --     550,954    -19,060         -549     271,254    436,498   3,484    407,673      --         --
Disclosure date of the
board announcement               12 December 2020
approving the securities


                                                                          19
    TCL Technology Group Corporation                                                                             First Quarterly Report 2021


investments
Disclosure date of the
general meeting
announcement                  29 December 2020
approving the securities
investments (if any)


   2. Investments in Derivative Financial Instruments


   Funding source                        Mostly foreign-currency revenue

   Legal matters involved (if
                                         Not applicable
   applicable)

   Disclosure date of the board
   announcement approving the            28 April 2018
   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
   Analysis of risks and control         fluctuation of underlying interest and exchange rates, which lead to the fluctuation of prices of
   measures associated with              financial derivatives;
   derivative investments held in
                                         2. Liquidity risk: the derivatives business carried out by the Group is an over-the-counter
   Reporting Period (including but
                                         transaction operated by a financial institution, and there is a risk of loss due to paying fees to the
   not limited to market risk,
                                         bank for the operations of evening up or selling the derivatives below the buying prices;
   liquidity risk, credit risk,
   operational risk, legal risk, etc.)   3. Performance risk: the Group conducts the derivative business based on rolling budgets for risk
                                         management, and there is a risk of performance failure due to deviation between the 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:



                                                                          20
TCL Technology Group Corporation                                                                           First Quarterly Report 2021


                                     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 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 pre-emptive prevention,
                                     in-process monitoring and post-processing. Professional personnel are rationally arranged for
                                     investment decision-making, business operations and risk control. Investment participants are
                                     required to fully understand the risks of financial derivatives investment and strictly implement
                                     the business operations and risk management systems of derivatives. Before starting the
                                     derivatives business, the holding company must submit to the management 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. Operations can be implemented only
                                     after getting opinions from the professional department of 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 the
Changes in market prices or fair
                                     operation of forward foreign exchange contracts, interest rate swap contracts and futures contracts
value of derivative investments in
                                     to avoid and hedge foreign exchange risks arising from operation and financing. It saw a net gain
Reporting Period (fair value
                                     of RMB91.02 million for the Reporting Period. The fair value of derivatives is determined by
analysis should include
                                     real-time quoted price of the foreign exchange market, based on the difference between the
measurement method and related
                                     contractual price and the forward exchange rate quoted immediately in the foreign exchange
assumptions and parameters)
                                     market on the balance sheet date.

Major changes in accounting
policies and specific accounting
principles adopted for derivative No significant change
investments in Reporting Period
compared to last reporting period

Opinion of independent directors
                                     In view of the fact that certain raw materials of the core business of the Company are purchased
on derivative investments and
                                     overseas, a wide range of settlement currencies is involved. The Company reduces exchange
risk control                         losses and locks transaction costs by reasonable financial derivatives, which helps to reduce risk



                                                                    21
TCL Technology Group Corporation                                                                      First Quarterly Report 2021


                                  control costs and improve company competitiveness. Risks are effectively controlled as the
                                  Company has taken series of measures such as conducting a 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 Company is a sound financial agent with good credit
                                  standing. The financial derivatives transactions carried out by the Company in Q1 2021 are
                                  closely related to the daily operation needs of the Company with controllable risks. The business
                                  is in line with the interests of minority shareholders of the company and the relevant laws and
                                  regulations.


Positions of derivative investments at the period-end:
                                                                                                                      Unit: RMB’0,000

                                                                                                      Ending contractual amount
                                                                                      Gain/loss
                                Beginning amount             Ending amount                          as % of the Company’s ending
                                                                                          in
       Type of contract                                                                                         net assets
                                                                                     Reporting
                              Contractual        Actual   Contractual     Actual                     Contractual             Actual
                                                                                       Period
                                amount           amount     amount        amount                       amount                amount

 1. Forward forex contracts      1,931,617       59,359     1,627,130      54,962                             17.75                 0.60

 2. Interest rate swaps            758,846       22,765       764,242      22,927       9,102                  8.34                 0.25

 3. Currency swaps                 310,520       15,526        98,570       4,928                              1.08                 0.05

            Total                3,000,983       97,650     2,489,942      82,818       9,102                 27.17                 0.90


V Progress of Projects Financed with Raised Funds

In 2020, the Company carried out a program of asset purchase via share and convertible corporate
bonds offering and cash payment and matching funds raising, with the total raised funds amounting
to RMB2.6 billion. The raised funds would be used to pay the cash consideration for the acquisition
of a 39.95% interest held by Wuhan Industrial Investment in Wuhan CSOT, repay debt and
supplement the working capital. As of 10 March 2021, the raised funds had been used up. For
further information, please refer to the Announcement on Using up of the Funds Raised via Share
and Convertible Corporate Bonds Offering for Asset Purchase and Raising the Matching Funds
disclosed by the Company on the media designated for information disclosure.

VI Operating Performance Forecast for H1 2021


Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of H1 2021, as well as explanation of

why:


                                                                 22
TCL Technology Group Corporation                                                                          First Quarterly Report 2021


□ Applicable ■ Not applicable


VII Significant Contracts Arising from the Company’s Ordinary Course of Business

□ Applicable ■ Not applicable


VIII Cash Entrusted for Wealth Management

                                                                                                                       Unit: RMB’0,000

            Type                        Funding source                      Amount            Undue amount      Unrecovered overdue amount
        Bank’s wealth
                                         Self-funded                           200,033.30             33.30                    -
   management product
 Securities firm’s wealth
                                         Self-funded                            26,000.00         16,000.00                    -
   management product

          Trust plan                     Self-funded                            20,000.00         20,000.00                    -

            Other                        Self-funded                           185,557.43         52,552.23                    -

Total                                                                          431,590.73         88,585.53                    -

High-risk wealth management transactions with a significant single amount, low liquidity and no principal protection:
□ Applicable ■ Not applicable

Situation where the principal is expectedly irrecoverable or an impairment may be incurred:

□ Applicable ■ Not applicable


IX Irregularities in the Provision of Guarantees

□ Applicable ■ Not applicable


X Occupation of the Company’s Capital by the Controlling Shareholder or any of Its Related
Parties for Non-Operating Purposes

□ Applicable ■ Not applicable


XI Communications with the Investment Community such as Researches, Inquiries and
Interviews Received during the Reporting Period

                                                                                                   Main
                                                              Type of                                               Index to main
                                           Way of                            Communication discussions and
        Date             Place                           communication                                               information
                                       communication                              party           materials
                                                               party                                                communicated
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TCL Technology Group Corporation                                      First Quarterly Report 2021


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TCL Technology Group Corporation                                                   First Quarterly Report 2021




                                          Part V Financial Statements

I Financial Statements

1. Consolidated Balance Sheet

Prepared by TCL Technology Group Corporation
                                                                                                      Unit: RMB

                    Item                          31 March 2021                   31 December 2020

Current assets:

  Monetary assets                                          21,866,755,914.00                  21,708,904,743.00

  Settlement reserve

  Loans to other banks and financial
institutions

  Held-for-trading financial assets                           3,802,869,673.00                 5,300,045,879.00

  Derivative financial assets                                  219,179,859.00                    453,578,245.00

  Notes receivable                                            1,052,967,190.00                   595,685,338.00

  Accounts receivable                                      15,672,609,886.00                  12,557,614,486.00

  Receivables financing                                       1,608,178,118.00                 2,176,743,646.00

  Prepayments                                                 1,824,063,319.00                 1,355,653,454.00

  Premiums receivable

  Reinsurance receivables

  Receivable reinsurance contract
reserve

  Other receivables                                           8,465,195,129.00                 2,793,640,153.00

     Including: Interest receivable

                  Dividends receivable

  Financial assets purchased under
resale agreements

  Inventories                                                 8,882,549,680.00                 8,834,957,692.00

  Contract assets                                              199,410,288.00                    183,650,278.00

  Assets held for sale                                         256,938,591.00                    360,935,948.00

  Current portion of non-current assets                           63,050,115.00

  Other current assets                                        8,952,314,761.00                 9,367,055,433.00

Total current assets                                       72,866,082,523.00                  65,688,465,295.00


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Non-current assets:

  Loans and advances to customers                997,789,579.00                  981,876,228.00

  Debt investments                               119,904,974.00                  119,349,896.00

  Other debt investments                         154,543,851.00                  152,062,601.00

  Long-term receivables                          699,379,064.00                  778,889,309.00

  Long-term equity investments              24,340,787,935.00                 24,047,036,004.00

  Investments in other equity
                                                1,267,383,678.00               1,333,675,630.00
instruments

  Other non-current financial assets            3,014,285,378.00               3,055,595,097.00

  Investment property                           1,708,552,761.00               1,664,201,130.00

  Fixed assets                              94,224,678,564.00                 92,829,901,894.00

  Construction in progress                  36,900,616,376.00                 31,508,310,783.00

  Productive living assets

  Oil and gas assets

  Right-of-use assets                           1,836,520,444.00

  Intangible assets                         11,559,900,467.00                 10,054,045,032.00

  Development costs                             1,664,984,199.00               2,103,994,558.00

  Goodwill                                      6,943,264,794.00               6,943,264,794.00

  Long-term prepaid expense                     2,380,306,309.00               2,536,670,015.00

  Deferred income tax assets                    1,387,256,553.00               1,578,087,991.00

  Other non-current assets                  12,627,250,195.00                 12,532,852,630.00

Total non-current assets                   201,827,405,121.00               192,219,813,592.00

Total assets                               274,693,487,644.00               257,908,278,887.00

Current liabilities:

  Short-term borrowings                     13,915,672,147.00                 12,263,713,979.00

  Borrowings from the central bank               668,442,302.00                  469,834,291.00

  Loans from other banks and financial
institutions

  Held-for-trading financial liabilities        1,368,835,184.00                 527,901,041.00

  Derivative financial liabilities               174,841,937.00                  384,903,731.00

  Notes payable                                 6,053,247,077.00               4,725,611,752.00

  Accounts payable                          20,590,854,151.00                 16,468,931,544.00

  Advances from customers                         62,773,331.00                   78,597,459.00

  Contract liabilities                          2,113,158,334.00               2,004,004,181.00

  Financial assets sold under                     50,080,208.00                   50,080,208.00


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repurchase agreements

  Customer deposits and deposits from
                                              3,583,649,744.00               2,850,138,744.00
other banks and financial institutions

  Payables for acting trading of
securities

  Payables for underwriting of
securities

  Employee benefits payable                   1,769,080,325.00               1,856,664,146.00

  Taxes and levies payable                     979,478,482.00                  670,058,792.00

  Other payables                          17,390,694,070.00                 14,869,433,359.00

     Including: Interest payable

                    Dividends payable            1,293,099.00                    1,293,097.00

  Fees and commissions payable

  Reinsurance payables

  Liabilities directly associated with
assets held for sale

  Current portion of non-current
                                          12,468,897,969.00                 13,429,669,611.00
liabilities

  Other current liabilities                    336,370,951.00                  366,970,706.00

Total current liabilities                 81,526,076,212.00                 71,016,513,544.00

Non-current liabilities:

  Insurance contract reserve

  Long-term borrowings                    78,353,685,147.00                 73,589,403,308.00

  Bonds payable                           18,094,160,624.00                 18,040,772,610.00

     Including: Preference shares

                    Perpetual bonds

  Lease liabilities                            903,293,868.00

  Long-term payables                           565,351,943.00                1,280,299,665.00

  Long-term employee benefits
                                                27,669,191.00                   27,857,583.00
payable

  Provisions

  Deferred income                             1,208,873,737.00               1,509,867,357.00

  Deferred income tax liabilities             2,364,772,001.00               2,386,496,733.00

  Other non-current liabilities

Total non-current liabilities            101,517,806,511.00                 96,834,697,256.00

Total liabilities                        183,043,882,723.00               167,851,210,800.00


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Owners’ equity:

  Share capital                                                   14,030,788,362.00                               14,030,788,362.00

  Other equity instruments                                            230,240,606.00                                 230,240,606.00

     Including: Preference shares

                   Perpetual bonds

  Capital reserves                                                   4,201,713,830.00                               5,442,384,608.00

  Less: Treasury stock                                               1,799,696,760.00                               1,913,028,859.00

  Other comprehensive income                                         -297,310,404.00                                 -145,573,093.00

  Specific reserve                                                        309,346.00                                      211,932.00

  Surplus reserves                                                   2,452,892,102.00                               2,452,892,102.00

  General reserve                                                         360,767.00                                      385,534.00

  Retained earnings                                               16,405,076,153.00                               14,009,494,262.00

Total equity attributable to owners of
                                                                  35,224,374,002.00                               34,107,795,454.00
the Company as the parent

Non-controlling interests                                         56,425,230,919.00                               55,949,272,633.00

Total owners’ equity                                             91,649,604,921.00                               90,057,068,087.00

Total liabilities and owners’ equity                            274,693,487,644.00                              257,908,278,887.00

Legal representative: Li Dongsheng                                                      Person-in-charge of financial affairs: Du Juan

Person-in-charge of the financial department: Xi Wenbo

2. Balance Sheet of the Company as the Parent

                                                                                                                           Unit: RMB

                    Item                                 31 March 2021                               31 December 2020

Current assets:

  Monetary assets                                                    4,673,557,233.00                               2,208,790,335.00

  Held-for-trading financial assets                                   494,026,692.00                                1,221,656,698.00

  Derivative financial assets                                            2,850,000.00

  Notes receivable                                                       6,000,000.00                                   6,000,000.00

  Accounts receivable                                                 242,732,754.00                                 175,787,300.00

  Receivables financing

  Prepayments                                                            6,814,091.00                                  97,962,630.00

  Other receivables                                               25,785,861,592.00                               25,555,923,615.00

     Including: Interest receivable

                   Dividends receivable

  Inventories                                                             889,550.00                                    5,997,388.00


                                                                28
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  Contract assets

  Assets held for sale

  Current portion of non-current assets

  Other current assets                             2,332,646.00                    2,332,646.00

Total current assets                        31,215,064,558.00                 29,274,450,612.00

Non-current assets:

  Debt investments

  Other debt investments

  Long-term receivables

  Long-term equity investments              65,369,362,149.00                 65,094,459,376.00

  Investments in other equity
                                                  15,000,000.00                   15,000,000.00
instruments

  Other non-current financial assets            1,275,592,020.00               1,145,021,734.00

  Investment property                             87,699,827.00                   88,686,986.00

  Fixed assets                                    46,296,612.00                   46,011,508.00

  Construction in progress                         5,957,827.00                   11,440,567.00

  Productive living assets

  Oil and gas assets

  Right-of-use assets                            469,533,606.00

  Intangible assets                               53,510,468.00                   42,310,680.00

  Development costs

  Goodwill

  Long-term prepaid expense                       32,119,285.00                  469,424,698.00

  Deferred income tax assets                           2,866.00                        6,709.00

  Other non-current assets

Total non-current assets                    67,355,074,660.00                 66,912,362,258.00

Total assets                                98,570,139,218.00                 96,186,812,870.00

Current liabilities:

  Short-term borrowings                         4,583,581,361.00               3,670,230,653.00

  Held-for-trading financial liabilities

  Derivative financial liabilities                                                16,513,000.00

  Notes payable

  Accounts payable                               242,589,681.00                  129,703,459.00

  Advances from customers                            626,347.00




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  Contract liabilities                                                           1,871,994.00

  Employee benefits payable                    204,396,873.00                  220,510,234.00

  Taxes and levies payable                       7,914,959.00                   26,070,786.00

  Other payables                          27,194,760,921.00                 26,377,023,713.00

     Including: Interest payable

                    Dividends payable            1,292,429.00                    1,292,429.00

  Liabilities directly associated with
assets held for sale

  Current portion of non-current
                                              5,216,364,309.00               6,141,029,463.00
liabilities

  Other current liabilities                      1,323,541.00                      315,970.00

Total current liabilities                 37,451,557,992.00                 36,583,269,272.00

Non-current liabilities:

  Long-term borrowings                    13,353,000,000.00                 12,087,500,000.00

  Bonds payable                           14,130,272,528.00                 14,092,345,084.00

     Including: Preference shares

                    Perpetual bonds

  Lease liabilities                             22,890,284.00

  Long-term payables

  Long-term employee benefits
                                                21,801,770.00                   21,991,372.00
payable

  Provisions

  Deferred income                               41,864,052.00                   42,651,822.00

  Deferred income tax liabilities

  Other non-current liabilities

Total non-current liabilities             27,569,828,634.00                 26,244,488,278.00

Total liabilities                         65,021,386,626.00                 62,827,757,550.00

Owners’ equity:

  Share capital                           14,030,788,362.00                 14,030,788,362.00

  Other equity instruments                     230,240,606.00                  230,240,606.00

     Including: Preference shares

                    Perpetual bonds

  Capital reserves                            9,847,091,192.00               9,846,835,060.00

  Less: Treasury stock                        1,799,696,760.00               1,913,028,859.00

  Other comprehensive income                   141,998,219.00                  141,998,219.00


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  Specific reserve

  Surplus reserves                                2,250,827,663.00                  2,250,827,663.00

  Retained earnings                               8,847,503,310.00                  8,771,394,269.00

Total owners’ equity                          33,548,752,592.00                  33,359,055,320.00

Total liabilities and owners’ equity          98,570,139,218.00                  96,186,812,870.00


3. Consolidated Income Statement

                                                                                          Unit: RMB

                     Item                 Q1 2021                         Q1 2020

1. Total revenues                                 32,173,945,858.00               13,789,536,228.00

  Including: Revenue                              32,143,561,563.00               13,742,129,162.00

              Interest income                         30,384,295.00                   47,407,066.00

              Insurance premium income
              Fee and commission
income

2. Costs and expenses                             28,868,451,833.00               14,493,594,692.00

  Including: Cost of sales                        25,383,357,989.00               12,743,745,923.00

              Interest expense                         4,754,960.00                    7,195,716.00
              Fee and commission
expense
              Surrenders

              Net insurance claims paid
              Net amount provided as
insurance contract reserve
              Expenditure on policy
dividends
              Reinsurance premium
expense

              Taxes and levies                       106,853,638.00                   38,902,775.00

              Selling expense                        330,230,062.00                  159,592,940.00

              Administrative expense                 763,004,335.00                  321,790,541.00

              R&D expense                           1,540,240,528.00                 837,453,524.00

              Finance costs                          740,010,321.00                  384,913,273.00
                 Including: Interest
                                                     966,852,847.00                  553,121,614.00
expense

                              Interest
                                                     103,593,808.00                  162,367,782.00
income


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Add: Other income                                       343,452,869.00                  620,518,501.00

         Return on investment (“-” for loss)          493,372,758.00                  694,268,712.00
            Including: Share of profit or loss
                                                        149,003,152.00                  300,625,432.00
of joint ventures and associates
              Income from the
derecognition of financial assets at
amortized cost
         Exchange gain (“-” for loss)                      -14,384.00                     182,919.00
         Net gain on exposure hedges (“-”
for loss)

         Gain on changes in fair value (“-”
                                                       -292,943,771.00                 -205,634,246.00
for loss)
         Credit impairment loss (“-” for
                                                         -31,736,912.00                  -7,478,551.00
loss)

         Asset impairment loss (“-” for loss)         -301,118,508.00                -232,590,984.00
         Asset disposal income (“-” for
                                                            159,503.00                        6,658.00
loss)

3. Operating profit (“-” for loss)                   3,516,665,580.00                 165,214,545.00

Add: Non-operating income                               210,942,953.00                  141,925,394.00

Less: Non-operating expense                               4,694,406.00                   10,715,126.00

4. Gross profit (“-” for loss)                       3,722,914,127.00                 296,424,813.00

Less: Income tax expense                                487,257,128.00                   25,846,940.00

5. Net profit (“-” for net loss)                     3,235,656,999.00                 270,577,873.00

  5.1 By operating continuity

        5.1.1 Net profit from continuing
                                                       3,235,656,999.00                 270,577,873.00
operations (“-” for net loss)

        5.1.2 Net profit from discontinued
operations (“-” for net loss)

  5.2 By ownership
        5.2.1 Net profit attributable to
                                                       2,403,729,935.00                 408,125,802.00
owners of the Company as the parent
        5.2.1 Net profit attributable to
                                                        831,927,064.00                 -137,547,929.00
non-controlling interests
6. Other comprehensive income, net of
                                                       -180,087,886.00                 -201,191,608.00
tax
  Attributable to owners of the Company
                                                        -151,737,311.00                -135,977,236.00
as the parent
        6.1 Items that will not be
                                                         -65,621,285.00                 -24,540,407.00
reclassified to profit or loss



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         6.1.1 Changes caused by
remeasurements on defined benefit
schemes
         6.1.2 Other comprehensive
income that will not be reclassified to
profit or loss under the equity method
         6.1.3 Changes in the fair value of
                                                     -65,621,285.00                                 -24,540,407.00
investments in other equity instruments
         6.1.4 Changes in the fair value
arising from changes in own credit risk

         6.1.5 Other
     6.2 Items that will be reclassified to
                                                     -86,116,026.00                                -111,436,829.00
profit or loss
         6.2.1 Other comprehensive
income that will be reclassified to profit               11,868.00                                    8,800,657.00
or loss under the equity method
         6.2.2 Changes in the fair value of
other debt investments
         6.2.3 Other comprehensive
income arising from the reclassification
of financial assets
         6.2.4 Credit impairment
allowance for other debt investments
         6.2.5 Reserve for cash flow
                                                     -75,069,636.00                                 -31,380,198.00
hedges
         6.2.6 Differences arising from the
translation of foreign
                                                     -11,058,258.00                                 -88,857,288.00
currency-denominated financial
statements
         6.2.7 Other
  Attributable to non-controlling
                                                     -28,350,575.00                                 -65,214,372.00
interests
7. Total comprehensive income                      3,055,569,113.00                                  69,386,265.00
  Attributable to owners of the Company
                                                   2,251,992,624.00                                272,148,566.00
as the parent
  Attributable to non-controlling
                                                    803,576,489.00                                 -202,762,301.00
interests
8. Earnings per share

  8.1 Basic earnings per share                              0.1781                                          0.0316

  8.2 Diluted earnings per share                            0.1713                                          0.0302

Legal representative: Li Dongsheng                                    Person-in-charge of financial affairs: Du Juan



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Person-in-charge of the financial department: Xi Wenbo


4. Income Statement of the Company as the Parent

                                                                                                        Unit: RMB

                     Item                                Q1 2021                        Q1 2020

1. Revenue                                                         307,619,705.00                  277,992,615.00

Less: Cost of sales                                                229,164,379.00                  186,288,369.00

        Taxes and levies                                              3,547,225.00                     884,082.00

        Selling expense                                               4,863,172.00                   5,539,685.00

        Administrative expense                                      71,791,383.00                   44,402,485.00

        R&D expense                                                 32,899,759.00                   22,086,746.00

        Finance costs                                              401,851,331.00                  269,483,384.00

          Including: Interest expense                              583,166,671.00                  403,477,889.00

                        Interest income                            205,588,588.00                  134,103,744.00

Add: Other income                                                     1,756,844.00                   4,807,000.00

         Return on investment (“-” for
                                                                   294,992,985.00                  899,034,332.00
loss)
            Including: Share of profit or
                                                                   270,571,871.00                  265,646,202.00
loss of joint ventures and associates
              Income from the
derecognition of financial assets at
amortized cost (“-” for loss)

         Net gain on exposure hedges (“-”
for loss)

         Gain on changes in fair value (“-”
                                                                      9,486,419.00                  81,456,431.00
for loss)
         Credit impairment loss (“-” for
                                                                        15,695.00                          995.00
loss)
         Asset impairment loss (“-” for
loss)
         Asset disposal income (“-” for
loss)
2. Operating profit (“-” for loss)                               -130,245,601.00                 734,606,622.00

Add: Non-operating income                                          206,621,894.00                  139,294,872.00

Less: Non-operating expense                                            251,617.00                        7,636.00

3. Gross profit (“-” for loss)                                    76,124,676.00                  873,893,858.00

Less: Income tax expense                                                  3,843.00


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4. Net profit (“-” for net loss)                 76,120,833.00                 873,893,858.00

  4.1 Net profit from continuing
                                                   76,120,833.00                 873,893,858.00
operations (“-” for net loss)

  4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income, net of
tax
  5.1 Items that will not be reclassified
to profit or loss
       5.1.1 Changes caused by
remeasurements on defined benefit
schemes
       5.1.2 Other comprehensive income
that will not be reclassified to profit or
loss under the equity method
       5.1.3 Changes in the fair value of
investments in other equity instruments
       5.1.4 Changes in the fair value
arising from changes in own credit risk
       5.1.5 Other
  5.2 Items that will be reclassified to
profit or loss
       5.2.1 Other comprehensive income
that will be reclassified to profit or loss
under the equity method
       5.2.2 Changes in the fair value of
other debt investments
       5.2.3 Other comprehensive income
arising from the reclassification of
financial assets
       5.2.4 Credit impairment allowance
for other debt investments
       5.2.5 Reserve for cash flow hedges

       5.2.6 Differences arising from the
translation of foreign
currency-denominated financial
statements
       5.2.7 Other

6. Total comprehensive income                      76,120,833.00                 873,893,858.00

7. Earnings per share

      7.1 Basic earnings per share



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    7.2 Diluted earnings per share


5. Consolidated Cash Flow Statement

                                                                                            Unit: RMB

                   Item                     Q1 2021                         Q1 2020

1. Cash flows from operating activities:
  Proceeds from sale of commodities
                                                  27,034,723,608.00                 14,850,100,323.00
and rendering of services
  Net increase in customer deposits and
deposits from other banks and financial                733,511,000.00                 -465,489,884.00
institutions
  Net increase in borrowings from the
                                                       198,608,011.00                  168,685,969.00
central bank
  Net increase in loans from other
financial institutions
  Premiums received on original
insurance contracts

  Net proceeds from reinsurance
  Net increase in deposits and
investments of policy holders
  Interest, fees and commissions
                                                        30,384,295.00                   47,407,066.00
received
  Net increase in loans from other
banks and financial institutions
  Net increase in proceeds from
repurchase transactions
  Net proceeds from acting trading of
securities
  Tax and levy rebates                                1,394,337,857.00                 608,001,845.00
  Cash generated from other operating
                                                      1,171,334,830.00                 467,981,716.00
activities
Subtotal of cash generated from
                                                  30,562,899,601.00                 15,676,687,035.00
operating activities
  Payments for commodities and
                                                  17,145,704,624.00                 11,369,283,220.00
services
  Net increase in loans and advances to
                                                      1,013,946,603.00              -1,555,006,243.00
customers
  Net increase in deposits in the central
bank and other banks and financial                      68,720,062.00                 -202,132,448.00
institutions
  Payments for claims on original


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insurance contracts

  Net increase in loans to other banks
and financial institutions

  Interest, fees and commissions paid

  Policy dividends paid

  Cash paid to and for employees                 2,018,238,456.00               1,589,132,206.00

  Taxes and levies paid                           582,590,307.00                  844,676,500.00
  Cash used in other operating
                                                 1,730,497,570.00               1,331,550,307.00
activities
Subtotal of cash used in operating
                                             22,559,697,622.00                 13,377,503,542.00
activities
Net cash generated from/used in
                                                 8,003,201,979.00               2,299,183,493.00
operating activities
2. Cash flows from investing activities:

  Proceeds from disinvestment                    6,373,430,027.00               4,618,844,632.00

  Return on investment                            125,899,457.00                   76,434,103.00
  Net proceeds from the disposal of
fixed assets, intangible assets and other          18,531,879.00                       23,052.00
long-lived assets
  Net proceeds from the disposal of
                                                                                  197,487,161.00
subsidiaries and other business units
  Cash generated from other investing
                                                    6,368,912.00
activities
Subtotal of cash generated from
                                                 6,524,230,275.00               4,892,788,948.00
investing activities
  Payments for the acquisition of fixed
assets, intangible assets and other              7,543,249,643.00               4,982,864,051.00
long-lived assets
  Payments for investments                       9,287,433,997.00               9,033,187,658.00

  Net increase in pledged loans granted
  Net payments for the acquisition of
subsidiaries and other business units
  Cash used in other investing
                                                   50,133,413.00
activities
Subtotal of cash used in investing
                                             16,880,817,053.00                 14,016,051,709.00
activities
Net cash generated from/used in
                                             -10,356,586,778.00                -9,123,262,761.00
investing activities
3. Cash flows from financing activities:

  Capital contributions received                   94,900,000.00                2,260,200,000.00



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     Including: Capital contributions by
                                                         94,900,000.00                 2,260,200,000.00
non-controlling interests to subsidiaries
  Borrowings received                                 16,219,912,408.00              13,646,741,209.00
  Cash generated from other financing
                                                        151,949,228.00
activities
Subtotal of cash generated from
                                                      16,466,761,636.00              15,906,941,209.00
financing activities
  Repayment of borrowings                             10,706,121,604.00                7,266,785,974.00

  Interest and dividends paid                          1,209,556,374.00                 640,411,211.00
     Including: Dividends paid by
                                                         23,055,560.00                   26,392,667.00
subsidiaries to non-controlling interests
  Cash used in other financing
                                                       1,893,223,044.00                 329,280,153.00
activities
Subtotal of cash used in financing
                                                      13,808,901,022.00                8,236,477,338.00
activities
Net cash generated from/used in
                                                       2,657,860,614.00                7,670,463,871.00
financing activities
4. Effect of foreign exchange rates
                                                         57,381,895.00                   -26,758,509.00
changes on cash and cash equivalents
5. Net increase in cash and cash
                                                        361,857,710.00                  819,626,094.00
equivalents
Add: Cash and cash equivalents,
                                                      18,208,416,780.00              17,637,742,929.00
beginning of the period
6. Cash and cash equivalents, end of the
                                                      18,570,274,490.00              18,457,369,023.00
period


6. Cash Flow Statement of the Company as the Parent

                                                                                             Unit: RMB

                  Item                       Q1 2021                         Q1 2020

1. Cash flows from operating activities:
  Proceeds from sale of commodities
                                                        332,453,923.00                  189,757,308.00
and rendering of services

  Tax and levy rebates
  Cash generated from other operating
                                                       1,412,864,320.00                8,341,488,901.00
activities
Subtotal of cash generated from
                                                       1,745,318,243.00                8,531,246,209.00
operating activities
  Payments for commodities and
                                                        229,201,172.00                  185,587,256.00
services
  Cash paid to and for employees                         52,067,664.00                   56,588,057.00



                                                 38
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  Taxes and levies paid                            30,416,907.00                    8,220,063.00
  Cash used in other operating
                                                  458,037,058.00                  316,261,198.00
activities
Subtotal of cash used in operating
                                                  769,722,801.00                  566,656,574.00
activities
Net cash generated from/used in
                                                  975,595,442.00                7,964,589,635.00
operating activities
2. Cash flows from investing activities:

  Proceeds from disinvestment                    1,937,957,138.00               1,365,307,500.00

  Return on investment                             45,986,638.00                   11,669,831.00
  Net proceeds from the disposal of
fixed assets, intangible assets and other
long-lived assets
  Net proceeds from the disposal of
subsidiaries and other business units
  Cash generated from other investing
activities
Subtotal of cash generated from
                                                 1,983,943,776.00               1,376,977,331.00
investing activities
  Payments for the acquisition of fixed
assets, intangible assets and other                12,604,273.00                    5,391,188.00
long-lived assets
  Payments for investments                       1,376,585,400.00               1,969,900,000.00
  Net payments for the acquisition of
subsidiaries and other business units
  Cash used in other investing
activities
Subtotal of cash used in investing
                                                 1,389,189,673.00               1,975,291,188.00
activities
Net cash generated from/used in
                                                  594,754,103.00                 -598,313,857.00
investing activities
3. Cash flows from financing activities:

  Capital contributions received

  Borrowings received                            6,549,800,000.00               8,612,000,000.00
  Cash generated from other financing
activities
Subtotal of cash generated from
                                                 6,549,800,000.00               8,612,000,000.00
financing activities

  Repayment of borrowings                        5,326,842,000.00               4,272,903,033.00

  Interest and dividends paid                     317,432,328.00                  168,428,437.00

  Cash used in other financing                     13,813,143.00                    1,332,082.00


                                            39
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activities
Subtotal of cash used in financing
                                                                         5,658,087,471.00                          4,442,663,552.00
activities
Net cash generated from/used in
                                                                          891,712,529.00                           4,169,336,448.00
financing activities
4. Effect of foreign exchange rates
                                                                           -18,184,949.00                             -3,131,768.00
changes on cash and cash equivalents
5. Net increase in cash and cash
                                                                         2,443,877,125.00                         11,532,480,458.00
equivalents
Add: Cash and cash equivalents,
                                                                         2,196,283,414.00                          3,941,090,221.00
beginning of the period
6. Cash and cash equivalents, end of the
                                                                         4,640,160,539.00                         15,473,570,679.00
period


II Adjustments to the Financial Statements

1. Adjustments to the Financial Statements at the Beginning of the First Execution Year (2021) of the New
Accounting Standard Governing Leases

The Company is required to fill the table below if it first adopted the new accounting standard governing leases in 2021, unless there
is no need to adjust the financial statements at the beginning of the year.
√ Applicable □ Not applicable
Indicate whether the financial statements at the beginning of the year were adjusted.
√ Yes □ No


Consolidated balance sheet:
                                                                                                                           Unit: RMB

               Item                    31 December 2020                       1 January 2021                  Adjustment

Current assets:

   Monetary assets                             21,708,904,743.00                   21,708,904,743.00

   Settlement reserve

   Loans to other banks and
financial institutions

   Held-for-trading financial
                                                5,300,045,879.00                    5,300,045,879.00
assets

   Derivative financial assets                    453,578,245.00                     453,578,245.00

   Notes receivable                               595,685,338.00                     595,685,338.00

   Accounts receivable                         12,557,614,486.00                   12,557,614,486.00

   Receivables financing                        2,176,743,646.00                    2,176,743,646.00

   Prepayments                                  1,355,653,454.00                    1,355,653,454.00


                                                                    40
TCL Technology Group Corporation                                                First Quarterly Report 2021


  Premiums receivable

  Reinsurance receivables

  Receivable reinsurance
contract reserve

  Other receivables                 2,793,640,153.00         2,793,640,153.00

     Including: Interest
receivable

                   Dividends
receivable

  Financial assets purchased
under resale agreements

  Inventories                       8,834,957,692.00         8,834,957,692.00

  Contract assets                    183,650,278.00           183,650,278.00

  Assets held for sale               360,935,948.00           360,935,948.00

  Current portion of
non-current assets

  Other current assets              9,367,055,433.00         9,367,055,433.00

Total current assets               65,688,465,295.00        65,688,465,295.00

Non-current assets:

  Loans and advances to
                                     981,876,228.00           981,876,228.00
customers

  Debt investments                   119,349,896.00           119,349,896.00

  Other debt investments             152,062,601.00           152,062,601.00

  Long-term receivables              778,889,309.00           778,889,309.00

  Long-term equity
                                   24,047,036,004.00        24,047,036,004.00
investments

  Investments in other equity
                                    1,333,675,630.00         1,333,675,630.00
instruments

  Other non-current financial
                                    3,055,595,097.00         3,055,595,097.00
assets

  Investment property               1,664,201,130.00         1,664,201,130.00

  Fixed assets                     92,829,901,894.00        91,515,595,994.00              -1,314,305,900.00

  Construction in progress         31,508,310,783.00        31,508,310,783.00

  Productive living assets

  Oil and gas assets

  Right-of-use assets                                        1,856,862,180.00               1,856,862,180.00



                                                       41
TCL Technology Group Corporation                                                  First Quarterly Report 2021


  Intangible assets                 10,054,045,032.00         10,054,045,032.00

  Development costs                  2,103,994,558.00          2,103,994,558.00

  Goodwill                           6,943,264,794.00          6,943,264,794.00

  Long-term prepaid
                                     2,536,670,015.00          2,099,368,428.00                -437,301,587.00
expense

  Deferred income tax assets         1,578,087,991.00          1,578,087,991.00

  Other non-current assets          12,532,852,630.00         12,532,852,630.00

Total non-current assets           192,219,813,592.00        192,325,068,285.00                 105,254,693.00

Total assets                       257,908,278,887.00        258,013,533,580.00                 105,254,693.00

Current liabilities:

  Short-term borrowings             12,263,713,979.00         12,263,713,979.00

  Borrowings from the
                                      469,834,291.00            469,834,291.00
central bank

  Loans from other banks
and financial institutions

  Held-for-trading financial
                                      527,901,041.00            527,901,041.00
liabilities

  Derivative financial
                                      384,903,731.00            384,903,731.00
liabilities

  Notes payable                      4,725,611,752.00          4,725,611,752.00

  Accounts payable                  16,468,931,544.00         16,468,931,544.00

  Advances from customers               78,597,459.00             78,597,459.00

  Contract liabilities               2,004,004,181.00          2,004,004,181.00

  Financial assets sold under
                                        50,080,208.00             50,080,208.00
repurchase agreements

  Customer deposits and
deposits from other banks            2,850,138,744.00          2,850,138,744.00
and financial institutions

  Payables for acting trading
of securities

  Payables for underwriting
of securities

  Employee benefits payable          1,856,664,146.00          1,856,664,146.00

  Taxes and levies payable            670,058,792.00            670,058,792.00

  Other payables                    14,869,433,359.00         14,869,433,359.00

     Including: Interest
payable


                                                        42
TCL Technology Group Corporation                                                  First Quarterly Report 2021


                    Dividends
                                         1,293,097.00              1,293,097.00
payable

  Fees and commissions
payable

  Reinsurance payables

  Liabilities directly
associated with assets held
for sale

  Current portion of
                                    13,429,669,611.00         13,449,071,421.00                  19,401,810.00
non-current liabilities

  Other current liabilities           366,970,706.00            366,970,706.00

Total current liabilities           71,016,513,544.00         71,035,915,354.00                  19,401,810.00

Non-current liabilities:

  Insurance contract reserve

  Long-term borrowings              73,589,403,308.00         73,589,403,308.00

  Bonds payable                     18,040,772,610.00         18,040,772,610.00

     Including: Preference
shares

                    Perpetual
bonds

  Lease liabilities                                             912,550,980.00                  912,550,980.00

  Long-term payables                 1,280,299,665.00           453,601,568.00                 -826,698,097.00

  Long-term employee
                                        27,857,583.00             27,857,583.00
benefits payable

  Provisions

  Deferred income                    1,509,867,357.00          1,509,867,357.00

  Deferred income tax
                                     2,386,496,733.00          2,386,496,733.00
liabilities

  Other non-current
liabilities

Total non-current liabilities       96,834,697,256.00         96,920,550,139.00                  85,852,883.00

Total liabilities                  167,851,210,800.00        167,956,465,493.00                 105,254,693.00

Owners’ equity:

  Share capital                     14,030,788,362.00         14,030,788,362.00

  Other equity instruments            230,240,606.00            230,240,606.00

     Including: Preference
shares


                                                        43
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                  Perpetual
bonds

  Capital reserves                             5,442,384,608.00              5,442,384,608.00

  Less: Treasury stock                         1,913,028,859.00              1,913,028,859.00

  Other comprehensive
                                                -145,573,093.00               -145,573,093.00
income

  Specific reserve                                  211,932.00                     211,932.00

  Surplus reserves                             2,452,892,102.00              2,452,892,102.00

  General reserve                                   385,534.00                    385,534.00

  Retained earnings                           14,009,494,262.00             14,009,494,262.00

Total equity attributable to
owners of the Company as                      34,107,795,454.00             34,107,795,454.00
the parent

Non-controlling interests                     55,949,272,633.00             55,949,272,633.00

Total owners’ equity                         90,057,068,087.00             90,057,068,087.00

Total liabilities and owners’
                                          257,908,278,887.00              258,013,533,580.00                  105,254,693.00
equity



Balance sheet of the Company as the parent:
                                                                                                                    Unit: RMB

             Item                   31 December 2020                   1 January 2021                  Adjustment

Current assets:

  Monetary assets                              2,208,790,335.00              2,208,790,335.00

  Held-for-trading financial
                                               1,221,656,698.00              1,221,656,698.00
assets

  Derivative financial assets

  Notes receivable                                 6,000,000.00                  6,000,000.00

  Accounts receivable                           175,787,300.00                175,787,300.00

  Receivables financing

  Prepayments                                    97,962,630.00                  97,962,630.00

  Other receivables                           25,555,923,615.00             25,555,923,615.00

     Including: Interest
receivable

                   Dividends
receivable

  Inventories                                      5,997,388.00                  5,997,388.00



                                                                  44
TCL Technology Group Corporation                                                First Quarterly Report 2021


  Contract assets

  Assets held for sale

  Current portion of
non-current assets

  Other current assets                  2,332,646.00             2,332,646.00

Total current assets               29,274,450,612.00        29,274,450,612.00

Non-current assets:

  Debt investments

  Other debt investments

  Long-term receivables

  Long-term equity
                                   65,094,459,376.00        65,094,459,376.00
investments

  Investments in other equity
                                      15,000,000.00            15,000,000.00
instruments

  Other non-current financial
                                    1,145,021,734.00         1,145,021,734.00
assets

  Investment property                 88,686,986.00            88,686,986.00

  Fixed assets                         46,011,508.00            46,011,508.00

  Construction in progress             11,440,567.00            11,440,567.00

  Productive living assets

  Oil and gas assets

  Right-of-use assets                                         467,914,882.00                  467,914,882.00

  Intangible assets                   42,310,680.00            42,310,680.00

  Development costs

  Goodwill

  Long-term prepaid
                                     469,424,698.00             32,123,111.00                -437,301,587.00
expense

  Deferred income tax assets                6,709.00                 6,709.00

  Other non-current assets

Total non-current assets           66,912,362,258.00        66,942,975,553.00                  30,613,295.00

Total assets                       96,186,812,870.00        96,217,426,165.00                  30,613,295.00

Current liabilities:

  Short-term borrowings             3,670,230,653.00         3,670,230,653.00

  Held-for-trading financial
liabilities

  Derivative financial                16,513,000.00            16,513,000.00


                                                       45
TCL Technology Group Corporation                                                First Quarterly Report 2021


liabilities

  Notes payable

  Accounts payable                   129,703,459.00           129,703,459.00

  Advances from customers

  Contract liabilities                  1,871,994.00             1,871,994.00

  Employee benefits payable          220,510,234.00           220,510,234.00

  Taxes and levies payable            26,070,786.00            26,070,786.00

  Other payables                   26,377,023,713.00        26,377,023,713.00

     Including: Interest
payable

                   Dividends
                                        1,292,429.00             1,292,429.00
payable

  Liabilities directly
associated with assets held
for sale

  Current portion of
                                    6,141,029,463.00         6,150,305,562.00                   9,276,099.00
non-current liabilities

  Other current liabilities              315,970.00               315,970.00

Total current liabilities          36,583,269,272.00        36,592,545,371.00                   9,276,099.00

Non-current liabilities:

  Long-term borrowings             12,087,500,000.00        12,087,500,000.00

  Bonds payable                    14,092,345,084.00        14,092,345,084.00

     Including: Preference
shares

                 Perpetual
bonds

  Lease liabilities                                            21,337,196.00                   21,337,196.00

  Long-term payables

  Long-term employee
                                      21,991,372.00            21,991,372.00
benefits payable

  Provisions

  Deferred income                     42,651,822.00            42,651,822.00

  Deferred income tax
liabilities

  Other non-current
liabilities

Total non-current liabilities      26,244,488,278.00        26,265,825,474.00                  21,337,196.00


                                                       46
TCL Technology Group Corporation                                                                       First Quarterly Report 2021


Total liabilities                             62,827,757,550.00                 62,858,370,845.00                      30,613,295.00

Owners’ equity:

   Share capital                              14,030,788,362.00                 14,030,788,362.00

   Other equity instruments                      230,240,606.00                    230,240,606.00

      Including: Preference
shares

                    Perpetual
bonds

   Capital reserves                            9,846,835,060.00                  9,846,835,060.00

   Less: Treasury stock                        1,913,028,859.00                  1,913,028,859.00

   Other comprehensive
                                                 141,998,219.00                    141,998,219.00
income

   Specific reserve

   Surplus reserves                            2,250,827,663.00                  2,250,827,663.00

   Retained earnings                           8,771,394,269.00                  8,771,394,269.00

Total owners’ equity                         33,359,055,320.00                 33,359,055,320.00

Total liabilities and owners’
                                              96,186,812,870.00                 96,217,426,165.00                      30,613,295.00
equity



Notes to the adjustments:
The Company has adopted since 1 January 2021 the Accounting Standard No. 21 for Business Enterprises-Leases revised by the
Ministry of Finance in 2018.
The Company adopted a simplified method of retrospective restatement. As required by the new lease standard, relevant financial
statement items at the beginning of the period when the new lease standard was first adopted (1 January 2021) were adjusted
according to the cumulative effects arising from the first adoption of the new lease standard, and data of the comparable periods were
not adjusted.
The effects of the adoption of the new lease standard on the presentation of the balance sheet items as at the beginning of the current
period are as follows:

                Item                     31 December 2020                      Adjustment                     1 January 2021

Fixed assets                                        92,829,901,894                    -1,314,305,900                   91,515,595,994

Right-of-use assets                                                                    1,856,862,180                    1,856,862,180

Long-term prepaid expense                            2,536,670,015                      -437,301,587                    2,099,368,428
Current portion of non-current
                                                    13,429,669,611                        19,401,810                   13,449,071,421
liabilities

Lease liabilities                                                                       912,550,980                       912,550,980

Long-term payables                                   1,280,299,665                      -826,698,097                      453,601,568



                                                                  47
TCL Technology Group Corporation                                                               First Quarterly Report 2021


2. Retrospective Adjustments to the Comparative Data of Prior Periods due to the First Execution in 2021
of the New Accounting Standard Governing Leases

□ Applicable √ Not applicable


III Independent Auditor’s Report

Indicate whether the financial statements above have been audited by an independent auditor.

□Yes √ No

These financial statements have not been audited by such an auditor.




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