Third Quarter 2024 Report of TCL Technology Group Corporation
Stock Code: 000100 Stock Abbr.: TCL TECH. Announcement No.: 2024-080
TCL 科技集团股份有限公司
TCL Technology Group Corporation
Third Quarter 2024 Report
October 2024
1Third Quarter 2024 Report of TCL Technology Group Corporation
Content
Section I Important Notices and Definitions ......... 3
Section II Key Financial Information ................ 5
Section III Management Discussion and Analysis ...... 8
Section IV Shareholder Information ................. 12
Section V Other Significant Events ................. 15
Section VI Quarterly Financial Statements .......... 16
2Third Quarter 2024 Report of TCL Technology Group Corporation
Section I Important Notices 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 that
this quarterly report is factual accurate and complete and shall be jointly and
severally liable for any misrepresentations misleading statements or material
omissions therein.Mr. Li Dongsheng the person-in-charge of the Company Ms. Li Jian the
person-in-charge of financial affairs (Chief Financial Officer) and Ms. Jing
Chunmei the person-in-charge of the financial department hereby guarantee
that the financial statements in this Report are factual accurate and complete.All of the Company’s directors attended the Board meeting for the review of
this Third Quarter 2024 Report.The future plans development strategies or other forward-looking
statements mentioned in this Report shall NOT be considered as promises of the
Company to investors. Therefore investors are kindly reminded to pay attention
to possible investment risks.This Report has not been audited. This Report has been prepared in both
Chinese and English. Should there be any discrepancies or misunderstandings
between the two versions the Chinese version shall prevail.
3Third Quarter 2024 Report of TCL Technology Group Corporation
Definitions
Term Refers to Definition
The “Company” the “Group”
Refers to TCL Technology Group Corporation
“TCL” “TCL TECH.” or “we”
Reporting Period Refers to The period from January 1 2024 to September 30 2024.Q3 2024 Refers to The period from July 1 2024 to September 30 2024.TCL CSOT Refers to TCL China Star Optoelectronics Technology Co. Ltd.TCL Zhonghuan Renewable Energy Technology Co. Ltd. a majority-
TZE Refers to owned subsidiary of the Company listed on the Shenzhen Stock Exchange
(stock code: 002129.SZ)
GW Refers to Gigawatt power unit for solar cells 1GW = 1000 megawatts
RMB Refers to Renminbi
4Third Quarter 2024 Report of TCL Technology Group Corporation
Section II Key Financial Information
(I) Key accounting data and financial indicators
Indicate whether there is any retrospectively adjusted or restated datum in the table below
□ Yes No
From the beginning of
Q3 2024 Change the year to the end of Change
the Reporting Period
Operating revenue (RMB) 42804760985 -10.75% 123028497947 -7.57%
Net profits attributable to
the company’s 530108230 -58.29% 1525319763 -5.34%
shareholders (RMB)
Net profits attributable to
the company’s
shareholders after non- 169910967 -84.66% 728668028 43.58%
recurring gains and losses
(RMB)
Net cash generated from
operating activities — — 22000714536 36.28%
(RMB)
Basic earnings per share
0.0286-58.31%0.0821-5.63%
(RMB/share)
Diluted earnings per share
0.0282-58.35%0.0812-5.36%
(RMB/share)
Weighted average return Decrease by 1.46 Decrease by 0.25
1.00%2.87%
on equity (%) percentage points percentage points
September 30 2024 December 31 2023 Change
Total assets (RMB) 393795228854 382859086727 2.86%
Owner's equity
attributable to the
53014857861529218670860.18%
company's shareholders
(RMB)
(II) Non-recurring profit and loss items and amount
Applicable □ Not applicable
Unit: RMB
Amount from the beginning of the
Item Amount in the Reporting period
year to the end of the Reporting Period
Gains and losses on disposal of non-current assets
107746900156185954
(inclusive of impairment allowance write-offs)
Public grants charged to current profits and loss
(except for public grants which are closely related to
the Company's daily operations comply with
3841611621356764489
national policies are granted based on determined
standards and have a continuous impact on the
Company's profits or losses)
The profits or losses generated from changes in fair
value arising from financial assets and financial
68256073515257
liabilities held by non-financial enterprises and the
profits or losses from the disposal of such financial
5Third Quarter 2024 Report of TCL Technology Group Corporation
assets and financial liabilities except for the
effective hedging business related to the company’s
normal business operations
Reversal of provision for impairment of receivables
30500000
that have been individually tested for impairment
Non-operating income and expenses other than the
465516476724147192
above
Less: Amount affected by income tax 140851280 297070538
Amount affected by equity of minority
4632016021177390619
shareholders (net of tax)
Total 360197263 796651735
Note: According to the relevant provisions of the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering
Their Securities to the Public—Non-Recurring Gain/Loss (Revised in 2023) public grants closely related to the Company’s normal
business operations in compliance with national policies received according to determined criteria and with a continuous impact on
the Company’s profits and losses shall be presented as recurring profits and losses. Public grants presented as non-recurring profits or
losses in the third quarter of 2023 comprise the public grants related to assets amounting to RMB 287.77 million which should be
classified as recurring profits or losses in accordance with the relevant provisions of the 2023 Explanatory Announcement No. 1. The
change did not have any material impact on the Company's financial position and operation results.Details of other profit and loss items that meet the definition of non-recurring profits and losses:
□Applicable Not applicable
The Company has no other profit and loss items that meet the definition of non-recurring profits and losses.Notes on non-recurring profit and loss items that are listed in the Explanatory Announcement No. 1 on Information Disclosure for
Companies Offering Their Securities to the Public—Non-Recurring Gain/Loss shall be used to define Recurring Gain/Loss items
□Applicable Not applicable
The Company does not have any non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Their Securities to the Public—Non-Recurring Gain/Loss that are defined as recurring profit and
loss items.
6Third Quarter 2024 Report of TCL Technology Group Corporation
(III) Changes of key accounting data and financial indicators and reasons therefor
Applicable □ Not applicable
Unit: RMB
Increase / decrease ratio
Balance Sheet items Ending balance Beginning balance Reason for change
(%)
Primarily due to the increase in
Construction in progress 26689963785 17000052457 57.0 investment of the display
production line
Primarily due to the optimization
Short-term borrowings 11346551303 8473582304 33.9
of the debt and cost structure
Primarily due to the increase in
Notes payable 7920031353 5610802064 41.2
loans paid by notes
Increase / decrease ratio
Income Statement Item Current balance Prior balance Reason for change
(%)
Due to an increase in falling
Asset impairment losses
-3540212533 -2432074536 45.6 price of inventory accrual in line
(losses are indicated by "-")
with the market
Cash Flow Statement Increase / decrease ratio
Current balance Prior balance Reason for change
items (%)
Mainly due to an increase in cash
Net cash generated from
22000714536 16144013013 36.3 from sale of commodities and
operating activities
rendering of services
7Third Quarter 2024 Report of TCL Technology Group Corporation
Section III Management Discussion and Analysis
Since this year we witnessed increasing complexity and volatility in world politics with
escalating geopolitical tensions and continuously restructuring international trade relations while the
global economy exacerbated the uncertainty with repeat measures to counter inflation seen worldwide.In response to these challenges the Company focused on the development of displays and new energy
photovoltaics and enhanced the resilience of its business and optimized its competitive edge in
pursuit of high-quality sustainable development. In the first three quarters the Company reported an
operating revenue of RMB 123.028 billion and the net profit attributable to shareholders of the listed
company of RMB 1.525 billion.During the Reporting Period the display industry experienced a period of supply-end stability
characterized by growing demand for larger-sized products. This healthy supply-demand dynamic
contributed to improved year-on-year profitability particularly for mainstay products like television
panels. During the Reporting Period the Company's display business took a proactive stance in
optimizing both business strategies and structure with an operating revenue of RMB 76.956 billion
up by 25.74% year-on-year; a net profit of RMB 4.443 billion representing a year-on-year increase
of RBM6.067 billion. Despite the ongoing growth of global demand for photovoltaic installations
the overall industry faced operating challenges due to a concentrated release of capacity which has
resulted in a widening supply-demand gap and a significant decline in product prices compared to the
previous year. TZE maintained positive operating cash flow and a relentless focus on cost efficiency
while accelerating organizational changes to address industry challenges. TZE generated RMB
22.582 billion of operating revenue in the first three quarters and resulted in TCL Technology's net
profits attributable to the parent company decreased by RMB 1.813 billion.Display Business
Despite the global economic slowdown and subdued consumer demand which dampened
demand for large-sized panels in the first three quarters of 2024 the industry's competitive landscape
improved and the on-demand production trend laid a solid foundation for the healthy development
of the industry. Seasonal fluctuations in downstream inventory demand led to a moderate increase in
TV panel prices in the first half of the year followed by a dip in the third quarter and the price has
remained stable since then. The structural price hike and subsequent fluctuations in a narrow range
8Third Quarter 2024 Report of TCL Technology Group Corporation
in small and medium-sized panel products were driven by innovations in hardware products and the
need for replacements.By leveraging its strengths in terms of scale and efficiency TCL CSOT consistently optimized
its business and product mix with favorable price increases for key products compared to the same
period from last year and significantly boosted operating performance year on year. During the
Reporting Period the display business achieved an operating revenue of RMB 76.956 billion with a
year-on-year increase of 25.74% and a net profit of RMB 4.443 billion with a year-on-year
increase of RMB 6.067 billion; and net cash flows from operating activities of RMB 19.838
billion.In the large-sized products segment TCL CSOT on the basis of on-demand production was
well-poised to lead the upgraded and high-end large-sized TV panels impelling the healthy and sound
development of the industry. During the Reporting Period the Company solidified its position as the
world's second-largest TV panel supplier leading the global market in both 65-inch and 75-inch
segments. The share of 65-inch and larger products in total TV panel shipment area reached 55%
while the Company vigorously develop large commercial displays such as interactive whiteboards
and splicing screens. In the mid-size segment the Company significantly increased its market shares
in IT and vehicle-mounted products with the product development of t9 production line as scheduled
and customer acquisition efforts. At present the Company is the world's second largest monitor
supplier and holds the top spot in the global gaming monitor market. Furthermore the Company has
successfully secured partnerships with several leading international laptop manufacturers and
achieved SoP. In the small-size segment the Company is focused on capturing an incremental share
of the mid-to-high-end consumer electronics market. During the Reporting Period the Company
cemented its position as the world's second largest supplier of LTPS smartphone panels to brand
customers. Meanwhile shipments of flexible OLED mobile phone panels experienced steady growth
with an increased proportion of high-end products.During the Reporting Period the Company's Board of Directors approved the strategic
acquisition of an 80% stake in LG Display (China) Co. Ltd. and a 100% stake in LG Display
(Guangzhou) Co. Ltd. by TCL CSOT. This move is expected to enhance the Company's technology
portfolio in display production lines strengthen partnerships with global customers and drive
profitability.
9Third Quarter 2024 Report of TCL Technology Group Corporation
Looking at the longer term global display terminal sales are expected to remain stable. The size
growth trend of large-sized products will drive the robust growth of display areas. The improving
supply-side structure will push the industry to pivot back on reasonable commercial returns and the
display industry's cyclical fluctuation will gradually weaken. TCL CSOT will continue to develop
healthily and stably while enhancing both corporate profitability and value.New energy photovoltaics and other silicon materials business
Since 2024 the installed capacity of global PV at the user end has been on an upward trajectory.However the supply-demand imbalance and intensified competition in the photovoltaic industry have
led to a sustained decline in product prices eroding profitability and pushing industry players into
negative cash margins. At the end of August a trend had been shown featuring a stable price
throughout the supply chain and the industry is poised to bottom out with continued consolidation
and elimination of outdated capacity. During the Reporting Period TZE achieved an operating
revenue of RMB 22.582 billion a year-on-year decrease of 53.6% net profits negative RMB 6.478
million and net cash flows from operating activities of RMB 2.562 billion due to falling prices for
major products across the industry chain as well as substantial setbacks in both financial performance
and stock prices of Maxeon with its controlling interests held by TZE.To navigate the tough industry environment the Company focused on extreme cost efficiency
built a robust Industry 4.0 foundation and executed a global strategy with the aim to promote a
sustainable industry ecosystem characterized by healthy competition. By leveraging technological
innovation and lean manufacturing the Company established a competitive edge with ongoing efforts
to optimize silicon material utilization reduce furnace costs increase wafer output per kilogram and
proactively address cyclical swings in the market during the Reporting Period which drove the
industry’s transition to N-type and larger-sized products. At the end of the Reporting Period the
company’s N-type products monthly output per unit was approximately 505kg higher than the
industry runner-up. Additionally the company’s wafer yield per kilogram surpassed that of the
second best in the industry by approximately 1 piece. During the Reporting Period the Company’s
monocrystalline silicon production capacity for photovoltaic segment rose to 190GW. Shipments of
photovoltaic materials amounted to approximately 94.86GW reflecting an 11.4% year-on-year
increase. The Company ranked first in the industry with a 19.2% market share for silicon wafers. By
10Third Quarter 2024 Report of TCL Technology Group Corporation
upgrading Industry 4.0 manufacturing processes the Company established flexible and synergistic
partnerships with its supply chain. The high traceability of our products enhanced customer loyalty
and global competitiveness. In collaboration with RELC fully owned by Saudi Arabia’s Public
Investment Fund (PIF) and Vision Industries the Company built the world’s largest overseas crystal
wafer plant to bolster its global competitiveness.Amid cyclical bottom in the industry the Company actively pushed ahead with its organizational
restructuring business changes and management optimization to bolster its competitive position.Looking ahead the supply-side adjustments have positioned the industry for high-quality growth but
the global photovoltaic industry is expected to keep intense competition in the near term. In response
to operational challenges TZE took rational measures by adjusting its production and sales structure
ensured positive cash flow and strove for the highest level of cost efficiency so as to strengthen its
competitiveness. The global renewable energy market presents ample growth opportunities yet the
distribution of production capacity worldwide remains uneven. The Company’s management teambelieves that the principle of "survival of the fittest” within the photovoltaic industry would contribute
to a more optimized long-term industry landscape enhance profitability and has confidence that it
can leverage the industry bottom so as to build a lasting competitive advantage.Looking at the future the display industry is expected to experience further consolidation under
the Matthew effect as large-scale manufacturers continue to cement their dominant positions. In the
meanwhile the emerging trends such as. the growing demand for larger displays and AI applications
will drive new growth opportunities ultimately enhancing industry profitability. The photovoltaic
industry is still poised for significant growth globally. The Company's new energy photovoltaic
business will strengthen its operational resilience and competitive edge to navigate through industry
cycles. By upholding the spirit of "Venturing Midstream and Striving to Win" the Company will
firmly grasp the opportunities brought by transformations in the technology manufacturing industry
and the global energy structure and continue to implement the business strategies of "improving
operational quality and efficiency enhancing strengths to shore up weaknesses innovation-driven
development as well as accelerating global expansion" in order to achieve sustainable high-quality
development and take on a leading role in the global market.
11Third Quarter 2024 Report of TCL Technology Group Corporation
Section IV Shareholder Information
(I) Table of the total number of ordinary shareholders and the number of preferred shareholders with
resumed voting rights as well as the shareholdings of the top 10 shareholders
Unit: Share
Total number of ordinary Total number of preferred shareholders with resumed
shareholders by the end of 596865 voting rights by the end of the Reporting Period (if 0
the Reporting Period any)
Shareholdings of top 10 shareholders of ordinary shares (excluding the lending of shares under refinancing)
Shareholding Number of Shares in pledge marked
Nature of Number of
Name of shareholder percentage restricted or frozen
shareholder shares held
(%) shares held Status Number
Li Dongsheng
Ningbo Jiutian Liancheng Domestic
Pledge by
Equity Investment individual/Domestic 6.74% 1265347805 673839802
Jiutian 293668015
Partnership (Limited general legal entity
Liancheng
Partnership)
Hong Kong Securities
Foreign legal entity 3.81% 715658083
Clearing Company Ltd.Huizhou Investment
Public legal entity 2.85% 535767694
Holding Co. Ltd.Wuhan Optics Valley
Industrial Investment Co. Public legal entity 2.41% 452866342 In pledge 226430000
Ltd.China Securities Finance Domestic general
2.19%410554710
Corporation Limited legal entity
Industrial and Commercial Fund wealth
Bank of China - Huatai- management 1.92% 359767630
Pinebridge CSI 300 ETF product etc.China Construction Bank - Fund wealth
Efund - CSI 300 Initiated management 1.27% 238696515
ETF product etc.Perseverance Asset
Management Partnership Fund wealth
(Limited Partnership) - management 1.18% 222000000
Gaoyi Xiaofeng No. 2 product etc.Zhixin Fund
Bank of China Limited - Fund wealth
Huatai-Pinebridge CSI management 0.94% 176087160
Photovoltaic Industry ETF product etc.Shareholdings of top 10 non-restricted shareholders
(excluding the lending of shares under refinancing and locked-up shares held by senior management)
Number of non-restricted ordinary shares held at Share type and quantity
Name of shareholder
the end of Reporting Period Type Quantity
RMB-
Hong Kong Securities
715658083 denominated 715658083
Clearing Company Ltd.ordinary shares
Li Dongsheng
Ningbo Jiutian Liancheng RMB-
Equity Investment 591508003 denominated 591508003
Partnership (Limited ordinary shares
Partnership)
Huizhou Investment RMB-
535767694535767694
Holding Co. Ltd. denominated
12Third Quarter 2024 Report of TCL Technology Group Corporation
ordinary shares
Wuhan Optics Valley RMB-
Industrial Investment Co. 452866342 denominated 452866342
Ltd. ordinary shares
RMB-
China Securities Finance
410554710 denominated 410554710
Corporation Limited
ordinary shares
Industrial and Commercial RMB-
Bank of China - Huatai- 359767630 denominated 359767630
Pinebridge CSI 300 ETF ordinary shares
China Construction Bank - RMB-
Efund - CSI 300 ETF 238696515 denominated 238696515
Initiated ordinary shares
Perseverance Asset
Management Partnership RMB-
(Limited Partnership) - 222000000 denominated 222000000
Gaoyi Xiaofeng No. 2 ordinary shares
Zhixin Fund
Bank of China Limited - RMB-
Huatai-Pinebridge CSI 176087160 denominated 176087160
Photovoltaic Industry ETF ordinary shares
Among the top 10 shareholders Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity
Note on the above Investment Partnership (Limited Partnership) became persons acting in concert by signing the
shareholders’ associations or Agreement on Concerted Action. Mr. Li Dongsheng holds 898453069 shares and Ningbo Jiutian
concerted actions Liancheng Equity Investment Partnership (Limited Partnership) holds 366894736 shares
representing 1265347805 shares in total and becoming the largest shareholder of the Company.Explanation on the top 10
ordinary shareholders At the end of the Reporting Period Wuhan Optics Valley Industrial Investment Co. Ltd. among
participating in securities the shareholders above held certain shares of the Company through a credit security account.margin trading (if any)
Participation of shareholders holding more than 5% top 10 shareholders and top 10 non-restricted shareholders in the lending of shares
under the refinancing business
Applicable □ Not applicable
Unit: share
Participation of shareholders holding more than 5% top 10 shareholders and top 10 non-restricted shareholders in the lending of
shares under the refinancing business
Shares lent under
Shares in the ordinary Shares in the ordinary Shares lent under
refinancing at the
account and credit account account and credit refinancing at the end
beginning of the period
at the beginning of the account at the end of the of the period that have
that have not been
Name of period period not been returned returned
shareholder (full
name) ProportiProportion Proportion Proportion
on to
Total to total Total to total Total Total to total
total
number share number share number number share
share
capital capital capital
capital
Industrial and
Commercial Bank
of China - Huatai- 140037730 0.75% 136900 0.001% 359767630 1.92% 0 0%
Pinebridge CSI
300 ETF
China
Construction Bank
526022150.28%1259000.0007%2386965151.27%00%
- Efund - CSI 300
Initiated ETF
13Third Quarter 2024 Report of TCL Technology Group Corporation
Bank of China
Limited - Huatai-
Pinebridge CSI 204079760 1.09% 1602800 0.01% 176087160 0.94% 0 0%
Photovoltaic
Industry ETF
Change in top 10 shareholders and top 10 non-restricted shareholders due to securities lending/returning under refinancing as compared
to the previous period
□Applicable Not applicable
(II) Total number of preferred shareholders and shareholdings of the top 10 preferred shareholders
□Applicable Not applicable
14Third Quarter 2024 Report of TCL Technology Group Corporation
Section V Other Significant Events
1. Derivative investments for hedging purposes made during the Reporting Period
Unit: RMB'0000
Ending contractual amount
Beginning amount Ending amount Gain/loss as % of the Company's
in the
Type of contract ending net assets
Reporting
Contractual Transaction Contractual Transaction Period Contractual Transaction
amount limit amount limit amount limit
1. Forward forex contracts 3039040 114095 5512867 213987 40.35% 1.57%
33832
2. Interest rate swaps 407686 12231 308838 9265 2.26% 0.07%
Total 3446726 126326 5821705 223252 33832 42.61% 1.63%
Accounting policies and specific accounting principles for
hedging business during the Reporting Period and a
No significant change.description of whether there have been significant
changes from those of the previous Reporting Period
During the Reporting Period loss from changes in the fair value of hedged
items amounted to RMB 60.7 million; profit from the delivery of due
Description of actual profits and losses during the
forward exchange contracts amounted to RMB 246.06 million and profit
Reporting Period
from the valuation of outstanding forward exchange contracts amounted
to RMB 152.96 million.During the Reporting Period the Company’s main foreign exchange risk
exposures included exposures of assets and liabilities denominated in
foreign currencies arising from business such as outbound sales raw
Description of the hedging effect material procurement and financing. The uncertain risks arising from the
exchange rate fluctuations were effectively hedged by using derivative
contracts with the same purchase amounts and maturities in opposite
directions.
2. Other significant events during the Reporting Period
□Applicable Not applicable
15Third Quarter 2024 Report of TCL Technology Group Corporation
Section VI Quarterly Financial Statements
(I) Financial statements
1. Consolidated Balance Sheet
Prepared by: TCL Technology Group Corporation
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Monetary assets 24816231022 21924270872
Settlement reserves
Funds on loan 7007400
Held-for-trading financial assets 30071225566 23184116975
Derivative financial assets 147012726 108007603
Notes receivable 199819395 615391820
Accounts receivable 23482521853 22003651259
Receivables financing 1174912739 954409558
Prepayments 2686308360 2946288443
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract provisions receivable
Other receivables 4661994764 5706855391
Of which: Interests receivable
Dividends receivable 681036032 1381489936
Financial assets purchased under sale-back
agreement
Inventories 21356758945 18481754865
Including: Data resources
Contract assets 384804675 343907118
Held-for-sale assets 162415745
Non-current assets due within one year 103308277 580694984
Other current assets 6745841332 5286533753
Total current assets 115837747054 102298298386
Non-current assets:
Loans and advances to customers
Debt investments 141110158 122348768
Other debt investments
Long-term receivables 693836138 720281051
Long-term equity investments 24500474910 25431271193
Investments in other equity instruments 384264002 386648418
Other non-current financial assets 2499076821 2971566228
Investment property 831742422 911679154
Fixed assets 164949332826 176422620794
Construction in progress 26689963785 17000052457
Productive biological assets
Oil and gas assets
Right-of-use assets 6137866912 6386446373
Intangible assets 18223415580 18419544291
Including: Data resources
Development costs 2246733656 2541492504
Including: Data resources
Goodwill 12139929725 10516741724
16Third Quarter 2024 Report of TCL Technology Group Corporation
Long-term deferred expenses 2352710334 3402689489
Deferred income tax assets 2677836891 2246221719
Other non-current assets 13489187640 13081184178
Total non-current assets 277957481800 280560788341
Total assets 393795228854 382859086727
Current liabilities:
Short-term borrowings 11346551303 8473582304
Borrowings from the Central Bank 707127866 995009514
Borrowed funds
Held-for-trading financial liabilities 230652182 251451420
Derivative financial liabilities 88414713 58590840
Notes payable 7920031353 5610802064
Accounts payable 29432486756 29402493015
Advances from customers 5245666 677665
Contract liabilities 2346445608 1899468140
Financial assets sold under repurchase
agreements
Customer deposits and deposits from other
846202751270928810
banks and financial institutions
Funds for brokering securities transaction
Funds for brokering securities
underwriting
Employee salaries payable 3506429229 3034496680
Taxes and levies payable 1322279166 861342467
Other payables 21820572980 22171403238
Of which: Interests payable
Dividends payable 13131347 54250777
Service charges and commissions payable
Reinsurance accounts payable
Held-for-sale liabilities
Non-current liabilities due within one year 33145072450 24631658876
Other current liabilities 1524549544 1563244949
Total current liabilities 114242061567 99225149982
Non-current liabilities:
Insurance contract provisions
Long-term borrowings 124141297002 117662208623
Bonds payable 6487354763 9113847771
Of which: Preferred shares
Perpetual bonds
Lease liabilities 5783414140 5737287693
Long-term payables 2187797655 2739444094
Long-term employee compensation
2336951029645007
payable
Estimated liabilities 384235897 117394992
Deferred income 2263408073 1540647642
Deferred income tax liabilities 1652554875 1427487042
Other non-current liabilities 16775944
Total non-current liabilities 142940207859 138367962864
Total liabilities 257182269426 237593112846
Owner's equity:
Share capital 18779080767 18779080767
Other equity instruments
Of which: Preferred shares
Perpetual bonds
Capital reserves 10469171863 10752055217
Less: Treasury share 919321508 1094943423
Other comprehensive income -779275992 -945797878
17Third Quarter 2024 Report of TCL Technology Group Corporation
Specific reserves 15953615 11342949
Surplus reserves 3874005579 3874005579
General risk reserve 8933515 8933515
Retained earnings 21566310022 21537190360
Total equity attributable to the owners of the
5301485786152921867086
parent company
Non-controlling interests 83598101567 92344106795
Total owner's equity 136612959428 145265973881
Total liabilities and owner's equity 393795228854 382859086727
Legal representative: Person in charge of financial affairs: Person-in-charge of the financial department:
Li Dongsheng Li Jian Jing Chunmei
2. Consolidated Income Statement for the period from the beginning of the year to the end of the Reporting
Period
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
I. Total revenue 123131768609 133165997183
Including: Operating revenue 123028497947 133109034685
Interest income 103270662 56962498
Earned premiums
Service charge and commission
income
II. Total costs 124050215990 129007796700
Of which: Operating cost 108286768520 113643241301
Interest expenditures 16004207 14379206
Service charge and commission
expenditures
Surrender value
Net claims payment
Appropriation of net insurance
liability reserve
Policy dividend expenditures
Reinsurance expenses
Taxes and levies 888627867 603630830
Sales expenses 1749388377 1831309694
Administrative expenses 3121692041 3044021757
R&D expenses 6576221492 7201406325
Financial expenses 3411513486 2669807587
Including: Interest expenses 3734284335 3731262986
Interest income 501033624 857965962
Plus: Other income 1334221454 1762418772
Return on investment (losses are
8786546642442260295
indicated by "-")
Including: Return on investment in
-1196508221205559646
joint ventures and associates
Income from derecognition of
financial assets measured at amortized costs
Exchange gains (losses are indicated 421473 -57583
18Third Quarter 2024 Report of TCL Technology Group Corporation
by "-")
Gain on net exposure hedging (losses
are indicated by "-")
Gain on changes in fair value (losses
479574279372289148
are indicated by "-")
Credit impairment losses (losses are
-15204947-106792302
indicated by "-")
Asset impairment losses (losses are
-3540212533-2432074536
indicated by "-")
Asset disposal income (losses are
40910222-23258312
indicated by "-")
III. Operating profit (losses are indicated by
-17400827696172985965
"-")
Plus: Non-operating income 238237895 61847094
Less: Non-operating expenses 102597065 158935459
IV. Gross profit (gross loss is indicated by "-
-16044419396075897600
")
Less: Income tax expenses 224564284 507453577
V. Net profits (net losses are indicated by "-") -1829006223 5568444023
(I) Classification by business continuity
1. Net profits from continuing
-18290062235568444023
operations (net losses are indicated by "-")
2. Net profits from discontinued
operations (net losses are indicated by "-")
(II) Classification by ownership
1. Net profits attributable to
shareholders of the parent company (net 1525319763 1611411994
losses are indicated by "-")
2. Net profit attributable to non-
controlling interests (net losses are indicated -3354325986 3957032029
by "-")
VI. Other comprehensive income net of tax 148408442 -350450809
Other comprehensive income attributable
to the owners of the parent company net of 166521886 -283099420
tax
(I) Other comprehensive income that
128945901-42627164
will not be reclassified to profit or loss
1. Changes arising from
remeasurement of defined benefit plans
2. Other comprehensive income that
cannot be subsequently reclassified into 131124694 5512131
profits and losses under the equity method
3. Changes in fair value of investments
-2178793-48139295
in other equity instruments
4. Changes in fair value of the
enterprise's own credit risks
5. Others
(II) Other comprehensive income that
may subsequently reclassified into profit and 37575985 -240472256
losses
1. Other comprehensive income that
can be transferred to profits and losses under 26476380 29601657
the equity method
2. Changes in fair value of other debt
investments
3. Amount of financial assets
19Third Quarter 2024 Report of TCL Technology Group Corporation
reclassified into other comprehensive income
4. Provisions for credit impairment of
other debt investments
5. Reserves for cash flow hedging 28637483 -202298071
6. Conversion differences in foreign
-17537878-67775842
currency financial statements
7. Others
Other net comprehensive income
-18113444-67351389
attributable to minority interests net of tax
VII. Total comprehensive income -1680597781 5217993214
(I) Total comprehensive income
attributable to the shareholders of the parent 1691841649 1328312574
company
(II) Total comprehensive income
-33724394303889680640
attributable to non-controlling interests
VIII. Earnings per share:
(I) Basic earnings per share 0.0821 0.0870
(II) Diluted earnings per share 0.0812 0.0858
Legal representative: Person in charge of financial affairs: Person-in-charge of the financial department:
Li Dongsheng Li Jian Jing Chunmei
3. Consolidated Statement of Cash Flows for the period from the beginning of the year to the end of the
Reporting Period
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
I. Net cash generated from operating
activities:
Proceeds from sale of commodities and
123374242201101241792349
rendering of services
Net increase of deposits from customers
574758778-400281369
banks and other financial institutions
Net increase of borrowings from the
-287595760-62069836
Central Bank
Net increase of borrowings from other
financial institutions
Cash received from collecting premiums
for original insurance contracts
Net cash received for reinsurance business
Net increase of deposits and investments of
policyholders
Cash received from interest service
10403582956962498
charges and commissions
Net increase of borrowed funds from banks
and other financial institutions
Net increase of repurchase business funds
Net cash received from brokering securities
transaction
Tax and levy rebates 4189699038 6897140163
Cash generated from other operating
35053700606549758540
activities
Sub-total of cash generated from operating
131460510146114283302345
activities
Cash paid for commodities and services 88059421971 77969681520
20Third Quarter 2024 Report of TCL Technology Group Corporation
Net increase of loans and advances to
-282990363-20126492
customers
Net increase of deposits with the Central
-89725774-94966195
Bank banks and other financial institutions
Cash paid for claims for original insurance
contracts
Net increase of funds on loan
Cash paid for interest service charges and
commissions
Cash paid for policy dividends
Cash paid to and for employees 9177134623 8675722473
Taxes and levies paid 3746232645 3042877731
Cash used in other operating activities 8849722508 8566100295
Sub-total of cash used in operating activities 109459795610 98139289332
Net cash generated from operating activities 22000714536 16144013013
II. Cash flow generated from investing
activities:
Proceeds from disinvestments 52857913578 36407981056
Proceeds from return on investments 2162788974 1443449707
Net proceeds from disposal of fixed assets
317694322157900475
intangible assets and other long-term assets
Net proceeds from disposal of subsidiaries
35197323
and other business units
Cash generated from other investing
4803516461675476985
activities
Sub-total of cash generated from investment
5585394584339684808223
activities
Cash paid for the acquisition and
construction of fixed assets intangible 18673744678 22058677309
assets and other long-term assets
Payments for investments 62378097855 46043068029
Net increase of pledged loans
Net payments for acquiring subsidiaries
395597639342527176
and other business units
Cash used in other investing activities 959825953 679513856
Subtotal of cash used in investing activities 82407266125 69123786370
Net cash used in investing activities -26553320282 -29438978147
III. Net cash generated from financing
activities:
Capital contributions received 96135256 3227627076
Including: Capital contributions by non-
961352563227627076
controlling interests to subsidiaries
Cash received from raising borrowings 61968446494 59814243560
Cash generated from other financing
4349719523288722855
activities
Sub-total of cash generated from financing
6249955370266330593491
activities
Cash paid for debt repayment 46959964907 46877621540
Cash paid for distribution of dividends and
65312123765260345180
profits or the repayment of interest
Of which: Dividends and profits
distributed by subsidiaries to minority 1003910923 334580641
shareholders
Cash used in other financing activities 2162527863 6534891746
Subtotal of cash used in financing activities 55653705146 58672858466
21Third Quarter 2024 Report of TCL Technology Group Corporation
Net cash generated from financing activities 6845848556 7657735025
IV. Effect of exchange rate changes on cash
-2638474472098972
and cash equivalents
V. Net increase in cash and cash equivalents 2266858066 -5565131137
Plus: Beginning balance of cash and cash
1999681516033675624291
equivalents
VI. Ending balance of cash and cash
2226367322628110493154
equivalents
Legal representative: Person in charge of financial affairs: Person-in-charge of the financial department:
Li Dongsheng Li Jian Jing Chunmei
(II) Adjustments to financial statement items at the beginning of the year of the first
implementation of the new accounting standards which have been implemented since 2024
□Applicable □ Not applicable
(III) Auditor's Report
Whether the Third Quarter Report has been audited or not
□ Yes □No
The Company's Third Quarter Report has not yet been audited.TCL Technology Group Corporation
October 29 2024
22
