TCL科技:2021年第三季度报告（英文版）

Third Quarter 2021 Report of TCL Technology Group Corporation
Securities Code: 000100 Securities Abbreviation: TCL TECH. Announcement No.: 2021-115
TCL 科技集团股份有限公司
TCL Technology Group Corporation
Third Quarter 2021 Report
October 27 2021
1Third Quarter 2021 Report of TCL Technology Group Corporation
Content
Section I Important Notice .......................... 3
Section II Key Financial Information ................ 4
Section III Management Discussion and Analysis ...... 8
Section IV Shareholder Information ..................17
Section V Other Important Matters ...................19
Section VI Quarterly Financial Statements ...........20
2Third Quarter 2021 Report of TCL Technology Group Corporation
Section I Important Notice
The Board of Directors (or the “Board”) the Supervisory Committee directors supervisors and
senior management of TCL Technology Group Corporation (hereinafter referred to as the
“Company”) hereby guarantee that this quarterly report is true accurate and complete and shall be
jointly and severally liable for any misrepresentations misleading statements or material omissions
therein.The Company’s legal representative person in charge of accounting (Chief Financial Officer) and
head of the accounting department hereby certify that the financial information set out in the
quarterly report is true accurate and complete.All directors have attended the Board meeting for the review of this report.This report has not been audited. This report has been prepared in both Chinese and English. Should
there be any discrepancies or misunderstandings between the two versions the Chinese version
shall prevail.
3Third Quarter 2021 Report of TCL Technology Group Corporation
Section II Key Financial Information
I. Main accounting data and financial indicators
Does the Company need to retroactively adjust or restate the accounting data of previous years?
□ Yes √ No
January to
July to September 2021 Change (%) Change (%)
September 2021
Revenue (RMB) 46629888432 140.65% 120928535190 148.26%
Net profits attributable to the company’s
2318085363183.69%9101970170349.44%
shareholders (RMB)
Net profits attributable to the company’s
shareholders before non-recurring gains and 3060177204 351.23% 8557995151 895.06%
losses (RMB)
Net cash generated from operating activities
————23959709061101.83%
(RMB)
Basic earnings per share (RMB / share) 0.1730 173.73% 0.6756 332.25%
Diluted earnings per share (RMB / share) 0.1652 173.51% 0.6487 333.33%
An increase of 18.42
Weighted average return on equity (%) 6.20% 3.54% 25.16%
percentage points
30 September 2021 31 December 2020 Change (%)
Total assets (RMB) 305386375811 257908278887 18.41%
Owner’s equity attributable to the
394832494143410779545415.76%
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
14030642421
session before the disclosure date (share)
Fully diluted earnings per share based on the latest total share capital above:
Fully diluted earnings per share calculated based
on the latest total share capital above (RMB / 0.6487
share)
II. Non-recurring profit and loss items and amount
√ Applicable □ Not applicable
4Third Quarter 2021 Report of TCL Technology Group Corporation
Unit: RMB
Amount from the beginning of
Amount for the current
Item the year to the end of the
reporting period
reporting period
Gains and losses on disposal of non-current assets (inclusive of
-785538181.00-46198134.00
impairment allowance write-offs)
Government subsidies charged to current profits and loss (except for
government subsidies closely related to the Company’s normal
business which comply with national policies and regulations and are 250706085.00 609898567.00
enjoyed on an ongoing basis according to certain standard quotas or
quantities)
Gain equal to the amount by which investment costs for the Company
to obtain subsidiaries associates and joint ventures are lower than the
-40299579.00
Company’s enjoyable fair value of identifiable net assets of investees
when making investments
The profits and losses generated from changes in fair value arising
from holding marketable financial assets and marketable financial
liabilities as well as the investment-related income from the disposal
7578933.00217852030.00
of marketable financial assets marketable financial liabilities and
available-for-sale financial assets except for the effective hedging
business related to the Company’s normal business operation.Other gains and losses that meet the definition of non-recurring
20182634.00264752193.00
gain/loss
Less: Corporate income tax 52430322.00 135316019.00
Non-controlling interests (net of tax) 182590990.00 407313197.00
Total -742091841.00 543975019.00
Details of other profit and loss items that meet the definition of non-recurring profits and losses:
□ Applicable √ Not applicable
The Company has no other profit and loss items that meet the definition of non-recurring profits and losses.Note on non-recurring profit and loss items - that which is listed in the Explanatory Announcement No. 1 on Information 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 on Information
Disclosure of Companies Offering Securities to the Public No. 1 - Non-recurring Profits and Losses that are defined as recurring
profit and loss items.III. Changes of main accounting data and financial indicators and reasons therefor
√ Applicable □ Not applicable
5Third Quarter 2021 Report of TCL Technology Group Corporation
Unit: RMB
Increase /
Balance Sheet Beginning
Ending balance decrease Reason for change
items balance
ratio (%)
Mainly due to the expansion of operating revenue
Notes receivable 3379119189 595685338 467.3
scale
Prepayments 2951934848 1355653454 117.7 Mainly due to the increase of prepayment
Mainly due to the expansion of operating revenue
Accounts receivable 21099262446 12557614486 68.0
scale
Other receivables 3885453661 2793640153 39.1 Mainly due to the increase of equity transfer funds
Mainly due to the expansion of operating revenue
Inventories 14458361006 8834957692 63.6
scale
Investment property 701618665 1664201130 -57.8 Mainly due to the merger of Moka
Development costs 2909088335 2103994558 38.3 Mainly due to the increase of R&D investment
Goodwill 9125488681 6943264794 31.4 Mainly due to the merger of Moka and CSOT Suzhou
Long-term deferred
1627220359 2536670015 -35.9 Mainly due to the impact of the new Leasing Standards
expenses
Deferred income tax
2117664125 1578087991 34.2 Mainly due to the merger of CSOT Suzhou
assets
Other non-current Mainly due to the decrease of prepayments for
656615134612532852630-47.6
assets equipment
Short-term
7615688682 12263713979 -37.9 Mainly due to repayment for borrowings
borrowings
Borrowings from the Mainly due to the increase of borrowings from the
1289155102469834291174.4
Central Bank Central Bank by the Finance Company
Held-for-trading
1029572413 527901041 95.0 Mainly due to the increase of financial products
financial liabilities
Taxes and levies Mainly due to the increase of taxes and surcharges
1695966861670058792153.1
payable caused by the increase of performance
Long-term payables 497341480 1280299665 -61.2 Mainly due to the impact of the new Leasing Standards
Income Statement January to January to Increase / Reason for change
6Third Quarter 2021 Report of TCL Technology Group Corporation
items September 2021 September 2020 decrease
ratio (%)
Mainly due to the expansion of sales scale and the
Revenue 120928535190 48709987251 148.3
merger of Zhonghuan Electronic and Moka
Mainly due to the expansion of operating revenue
Cost of sales 95426765891 43507752953 119.3 scale and the merger of Zhonghuan Electronic and
Moka
Mainly due to the expansion of operating revenue
Sales expense 1552806398 548204916 183.3
scale and the merger of Zhonghuan Electronic
Administrative Mainly due to the expansion of operating revenue
30087387781215567756147.5
expense scale and the merger of Zhonghuan Electronic
Mainly due to the increase of R&D investment and the
R&D expense 5274324791 2800775204 88.3
merger of Zhonghuan Electronic
Mainly due to the increase of financing scale and the
Finance expenses 2827514469 1453054866 94.6
merger of Zhonghuan Electronic
Return on
2884044180 1951687393 47.8 Mainly due to the merger of Zhonghuan Electronic
investment
Mainly due to the increase of operating profits and the
Income tax expense 2102388345 338749095 520.6
merger of Zhonghuan Electronic
Net profit
attributable to Mainly due to the increase of net profits and the
40613075283652916411018.0
non-controlling merger of Zhonghuan Electronic
interests
Increase /
Cash Flow January to January to
decrease Reason for change
Statement items September 2021 September 2020
ratio (%)
Net cash generated Mainly due to the expansion of operating revenue
from in operating 23959709061 11871070129 101.8 scale the improvement of operating profits and the
activities merger of Zhonghuan Electronic
Net cash generated
Mainly due to the increase of repayment for
from financing 8683436043 23485740179 -63.0
borrowings during the current reporting period
activities
7Third Quarter 2021 Report of TCL Technology Group Corporation
Section III Management Discussion and Analysis
I. Overview
The COVID-19 epidemic and reverse globalization is reshaping the global political and economic
landscape and global industrial chains are becoming increasingly unstable posing severe
challenges for China's manufacturing enterprises. China has proposed the building of a new
development pattern centered around domestic circulation while also encouraging the mutual
promotion of dual domestic-international circulation which with the strategic support from
scientific and technological self-reliance and self-improvement will promote China's science and
technology industries to break through the development bottleneck and establish a commanding
height of scientific and technological innovation. Facing the challenges and opportunities head on
the Company has focused on the development of two major core technology industries i.e.semiconductor displays and semiconductor photovoltaics and semiconductor materials adhering tothe business strategy of “Improving Business Quality and Efficiency Strengthening Advantages andMaking up for Disadvantages Accelerating Global Layout and Innovation-driven Development”
establishing a relative corporate competitive advantage and continuing to press on towards global
leadership.In the first three quarters the Company achieved operating revenue of RMB 120.93 billion a
year-on-year increase of 148.3%; achieved net profit of RMB 13.16 billion a year-on-year increase
of 538.5%; achieved net profit attributable to the shareholders of listed companies of RMB 9.1
billion a year-on-year increase of 349.4%; exceeded the budget in an overall manner with respect to
semiconductor displays business and semiconductor photovoltaics and semiconductor materials
business achieving a record-high in performance. The prosperity of the semiconductor display
industry was higher than that of the same period in the previous year. The Company's main
production lines maintained full sales and produced at full production capacity factory t7 ramped
up as scheduled factory t10 was integrated smoothly after consolidation in Q2 and the Company
continued to promote the strategy of business diversification and high-end product structure and led
the industry in efficiency and benefits. The semiconductor display industry achieved operating
revenue of RMB 66.56 billion a year-on-year increase of 106% and net profit of RMB 9.74 billion
a year-on-year increase of 1620%. The Company's advantageous production capacity of
8Third Quarter 2021 Report of TCL Technology Group Corporation
semiconductor photovoltaics’ 210 mm silicon wafers has accelerated and a quality supply chain
system has ensured the substantial growth of production and sales scale and profit; the
semiconductor materials business's 8-12 inch large silicon wafer project is progressing smoothly
and the product and customer structures are constantly improving; the Industry 4.0 production mode
has further improved per-capita labor productivity product quality and consistency and has reduced
material consumption and operating costs and significantly enhanced industry competitiveness.Zhonghuan Semiconductor achieved operating revenue of RMB 29.09 billion a year-on-year
increase of 117% and net profit of RMB 3.28 billion a year-on-year increase of 190%. Due to the
one-time financial impact from the disposal of Fantasia Properties equity the performance of the
Company's investment business segment in Q3 decreased significantly year-on-year while other
businesses in the industrial finance and investment business segment operated well.The Company has adopted scientific and technological innovation as the core driving force for
corporate development. In the first three quarters the Company invested RMB 6.5 billion in
research and development a year-on-year increase of 51.1% accounting for 5.4% of the operating
revenue whereby the Company focused on the development of new display technologies such as
Mini LED Micro LED printed OLED and QLED the improvement of the leading photovoltaics
technology platform combining G12 large silicon wafers and shingled PV 3.0 the process
improvement of 8-inch and 12-inch semiconductor materials as well the advanced research and
collaboration of the upstream core nodes in industrial chains and the establishment of an industrial
ecological alliance. As of the end of September 2021 the number of Company’s PCT patent
applications reached 13517 and the number of patent applications in the field of quantum dot
electroluminescence technology and materials has reached 1778 ranking #2 globally.The global economy is complex and ever-changing under the normalization of the COVID-19
epidemic and international economic and trade frictions. We believe that accelerating the
development of the high-end manufacturing industry is the only way for China to sustain economic
development and overcome the middle-income trap; actively participating in global competition is
also an inevitable option for Chinese manufacturing enterprises to become bigger and stronger.Rooted in the science and technology industries the Company has a global layout and is moving
towards leadership relying on lean management technological innovation and industrial ecology as
the foundation for competitiveness. In the field of semiconductor displays the Company has
9Third Quarter 2021 Report of TCL Technology Group Corporation
established comprehensive competitive advantages with respect to scale efficiency and technology
and will further expand its layout in the global display industry and strengthen the overseas
localized supply chain system in the future; In the semiconductor photovoltaics field Zhonghuan
Semiconductor relying on the application of the Industry 4.0 production mode in various operation
processes and scenarios as well as the improvement of overseas industrial layout and supply chain
systems has gradually completed the transformation from product output to industrial competence
output; With regard to the semiconductor materials business the Company will firmly adhere to the
established strategies actively enhance its core competitiveness build a great brand reputation and
undertake the mission and responsibility for localized independent research and development of the
semiconductor industry.As a pioneer in the globalization of China's manufacturing industry TCL has been moving forward
for the last 40 years actively facing the challenges insisting on originality making unremitting
efforts and catching up and surpassing time and time again. Looking forward to the future TCL
Technology will seize the golden period of global economic restructuring and the development of
China's manufacturing industry change from being a follower to a leader and become a global
leader with stronger development momentum.II. Main business conditions
The Company's main business structure consists of semiconductor displays semiconductor
photovoltaics and semiconductor materials industrial finance and investment platforms and other
businesses. The Company will continue to optimize its business structure and further focus on its
main businesses to achieve the strategic goal of global leadership in its two core industries.TCL Tech
Semi-conductor Semi-conductor photovoltaic & Industrial finance & Other
display Semi-conductor materials investment
Zhonghuan Zhonghuan TCL TCL Capital TCL CSOT China Ray Highly TPC
Photovoltaic Advanced Financial
Moka TCL
Juhua
Technology Microchip
(I)Semico
nductor display business
In the first three quarters the prosperity of the semiconductor display industry was higher compared
10Third Quarter 2021 Report of TCL Technology Group Corporation
to the same period in the last year; in the first half of the year the supply-demand relationship and
the shortage of upstream materials drove a continual increase in the prices of main products; in Q3
the price of the panel fell due to the impact of maritime logistics and the weakening of demand in
some regions. TCL CSOT's production capacity continued to grow which accelerated the
optimization of product structures and improved its profitability; it achieved a sales area of 28.477
million square meters in the first three quarters a year-on-year increase of 31.3%; with regard to the
semiconductor display business it achieved an operating revenue of RMB 66.56 billion a
year-on-year increase of 106% and achieved a net profit of RMB 9.74 billion a year-on-year
increase of 1620% including net profit of RMB 3.13 billion achieved in Q3 a year-on-year
increase of 347%.Operating composition of the semiconductor display business in the first three quarters:
Shipment area Shipment volume Revenue Net profit
10000
10000 pieces RMB RMB
Item
square Year-on-year % / Year-on-year % 100 Year-on-year % 100 Year-on-year %
meters 10000 million million
sets
Large-sized Increased by Increased by
2721.831.4%4436.028.6%441.4109.7
products 117% 810%
Medium-to-small Decreased by
Increased by
sized products 125.8 29.2% 7370.1 5.8% 169.7 -7.8 RMB 520
41%
million
Moka
Technology - - 520.1 N/A 85.5 N/A 2.4 N/A
(note)
Other and offsets - - - - -31.1 N/A -6.8 N/A
Total Increased by Increased by
----665.697.4
106%1619%
Note: Moka Technology has been consolidated since Q2 2021 and the year-on-year data does not include Moka Technology
operational data for the first three quarters of 2020.In the large-sized product field TCL CSOT continued to expand its scale advantage promote
high-end strategy and continuously optimize production lines and product structure
11Third Quarter 2021 Report of TCL Technology Group Corporation
maintaining industry-leading efficiency and benefits advantages.Factories t1 t2 and t6 maintained full sales and produced at full capacity factory t7 ramped up as
scheduled; t10 (formerly Samsung Suzhou LCD factory) has been consolidated since the Q2 and the
acquisition of the remaining 30% minority equity was completed at the end of September thus
becoming a wholly-owned subsidiary of TCL CSOT. The Company's leading position in large-size
panels has been further reinforced ranking #2 globally in terms of market share of TV panels
ranking #1 globally in terms of market shares of 55-inch products and #2 globally in terms of
market shares of 65-inch and 75-inch products; the high-end strategy has achieved remarkable
results with the shipment area of products of 65 inches and above accounting for nearly 50% of the
total shipment area and the Company ranks #1 globally in terms of market shares of 8K and 120
HZ high-end TV panels; the Company has accelerated the adjustment of its product structure and
become the core supplier for the leading customers in the industry in terms of commercial display
markets such as interactive whiteboards digital signage and splicing screens among which the
market share of interactive whiteboards has increased to #1 globally.Affected by the weakening global economy and market demand the prices of large-sized products
showed an inflection point in August the prices of TV display screens declined rapidly and the
prices of other products also showed a declining trend; the Company will hedge such risks by
improving its product quality and operating efficiency.In the field of small-sized product businesses TCL CSOT has accelerated the release of
production capacity and the increase of yield rate so as to leverage continuous technological
innovation to improve the product experience and optimize its customer portfolio.The shipment volume of LTPS mobile phone panels of the t3 production line remained fourth place
in the world the proportion of non-mobile phone products has increased to 30% the product and
customer structures continue to be optimized and the profitability has been improved. The t4
flexible OLED production line which has completed the construction of Phase II and Phase III is
committed to forming differentiated competitiveness such as flexible folding and under-screen
camera placement; however due to the impact of preliminary R&D investment and fixed costs
incurred during the ramp-up of the production line t4's losses have increased month-on-month. The
Company will focus on improving its technical capacity meeting the needs of strategic customers
and gradually improving its operating efficiency.
12Third Quarter 2021 Report of TCL Technology Group Corporation
TCL CSOT has accelerated the promotion of its medium-sized product business strategy
focusing on the fast-growing high-end market actively introducing leading customers of the
industry and establishing a new driving force for businesses growth.The Company has seized the opportunities for rapid growth in the high-end market of medium-sized
products and given full play to its technical and customer advantages through the capacity
adjustment of existing production lines leading to a rapidly increasing market share. The Company
ranks the #2 globally in terms of market shares of e-sports displays #2 globally in terms of
shipment volume of LTPS notebook panels and #1 globally in terms of shipment volume of LTPS
tablet PC panels; the shipment volume of vehicle-mounted LTPS panels has increased rapidly by
introducing a number of Chinese and foreign leading customers; the Company has achieved
cooperation with brand customers with respect to display and laptop products equipped with Mini
LED backlighting and expanded VR / AR new display products. The Company has accelerated the
investment and construction of the G8.6 oxide semiconductor-based t9 project which is expected to
be put into operation in 2023.We believe that the total demand area of all regions in the world will maintain steady annualized
growth the pattern of industrial competition will be optimized and the weakening trend of the
industrial cycle volatility will remain unchanged. The Company will maintain industry-leading
efficiency and profitability advantages and accelerate its upgrade from being a global leader
of the large-sized display industry to being a global leader of the full-sized display field
centered on "optimizing production line structure and product structure improving customer
portfolio and perfecting industrial ecology".(II) Semiconductor photovoltaics and semiconductor materials business
In the first three quarters although the pressure on the production costs of multiple semiconductor
photovoltaics manufacturing links increased due to the dual impact of rising raw materials costs and
energy consumption global energy consumption increased rapidly thus energy structure
transformation will surely become a general trend and the photovoltaics industry will enter a
long-term high-speed development stage. In the field of semiconductor materials the global chip
shortage continues the shortage of semiconductor materials supply has yet to ease and the
prosperity of the industry is rising. In the first three quarters both the photovoltaics and
semiconductor materials businesses of Zhonghuan Semiconductor achieved rapid development
13Third Quarter 2021 Report of TCL Technology Group Corporation
with operating revenue of RMB 29.09 billion a year-on-year increase of 117% and net profit of
RMB 3.28 billion a year-on-year increase of 190%.
1. Semiconductor photovoltaics field
In the first three quarters there was a shortage in the supply of upstream materials coupled with
rising prices which accelerated the trend of silicon wafer products becoming larger and thinner.Zhonghuan Semiconductor's G12 products effectively match the benefit needs of industrial chains.The Company sped up its planned capacity construction. The diamond wire cutting ultra-thin silicon
wafer smart factory project implemented in Tianjin and Inner Mongolia was put into operation
smoothly and there has been substantial improvement in labor productivity and throughput for the
G12 production line. The Ningxia Zhonghuan Phase VI project is expected to be put into operation
by the end of the year. At the end of the reporting period the Company's total production capacity
of single crystal silicon increased to 73.5 GW of which G12 production capacity accounted for
about 59% and the Company's G12 silicon wafer market penetration increased from 6% at the
beginning of the year to 20% at the end of the reporting period. With the accumulation of advanced
processes and technologies the monthly production of single crystal furnaces and the A-class rating
of silicon wafers continued to increase the silicon consumption per unit product decreased
significantly and profitability improved against the quarterly trend.At the photovoltaic cell and module end the market share of products has increased steadily based
on the deep integration of dual "G12 + Shingled PV" technology platforms with Industry 4.0 (smart
manufacturing). The production capacity of the G12 high-efficiency shingled PV module project in
Jiangsu Province has reached 6 GW; the G12 high-efficiency shingled PV modules project in
Tianjin has officially entered the production stage adding momentum to the rapid growth of the
business.
2. Semiconductor materials field
In the first three quarters the domestic substitution process of semiconductor materials accelerated
the demand for semiconductor terminals increased significantly; Zhonghuan Semiconductor
accelerated the release of production capacity and the optimization of product structure; the
shipment volume of 8-12 inch polished wafers and epitaxial wafers increased with the production
and sales scale increasing by more than 90% year-on-year. By cooperating with downstream
customers to establish a flexible cooperation mode Zhonghuan Semiconductor continues to develop
14Third Quarter 2021 Report of TCL Technology Group Corporation
and introduce customers at home and abroad build competitive barriers based on the characteristic
process and develop advanced process products. At the end of the reporting period a monthly
production capacity of 650000 pieces for 8-inch products and 100000 pieces for 12-inch products
has been formed with a new small-diameter layout for production expansion and new 8-inch
product projects. It is expected that by the end of 2021 the Company may achieve the established
goal of a monthly production capacity of 750000 pieces for 8-inch products and 170000 pieces for
12-inch products so as to accelerate the development of the semiconductor business.
(III) Industrial finance business
In the first three quarters the Company's financial and treasury businesses focused on ensuring the
Company's demand for project funds improved its active management capacity with regard to
industrial funds and risks reduced costs and increased efficiency to the greatest extent possible
controlled corporate receivables and foreign exchange risks and supported the Company's core
main businesses move towards global leadership. The Company's financial and treasury businesses
will continue to adopt a strategy of steady development focusing on the Company's long-term
strategic objectives solidly establishing long-term capacity that empowers industrial development
and supporting the Company's business operations and territory expansion.TCL Capital explored investment and deployment opportunities in key areas that drive the
development of the science and technology industry such as new display types semiconductors and
core materials and process equipment related to the industrial chain and promoted
technology-business synergy concurrently creating investment income. At the end of the reporting
period the funds managed by TCL Capital reached a scale of about CNY 9.2 billion with a total
investment of 118 projects. At present TCL Capital holds shares of listed companies such as CATL
DKEM Cambricon Newtouch Software ZJBC Information and HyUnion Holding; Admiralty
Harbour Capital Limited achieved steady growth in its investment banking and asset management
business completing 14 capital market and financial advisory projects in the first three quarters and
Admiralty Harbour Capital Limited was approved to become a member of the Euroclear Bank
further diversifying its business scope; China Innovative Capital continued to focus on the industrial
chain layout opportunities of the two core main businesses of the Company invested in more than
137 listed companies with steadily growing performance.
Over the past 40 years TCL has loyally dedicated itself to the manufacturing industry constantly
15Third Quarter 2021 Report of TCL Technology Group Corporation
changing and innovating traveling upstream along the electronics industrial chain all the way. The
Company will continue to focus on resources to develop core technology industries build strategic
control points in the fields of semiconductor displays semiconductor photovoltaics and
semiconductor materials adhere to the core requirements of "Improving Business Quality and
Efficiency Strengthening Advantages and Making up for Disadvantages Accelerating Global
Layout and Innovation-driven Development" and enter a new development stage with stronger
development momentum so as to become a global leader among industry competitors!
16Third Quarter 2021 Report of TCL Technology Group Corporation
Section IV Shareholder Information
I. Table of the total number of shareholders holding common stocks number of shareholders holding
preferred stocks with resumed voting rights and shareholding of the top ten shareholders
Unit: Shares
Total number of preference
Total number of ordinary
shareholders with resumed
shareholders at the period-end 820878 0
voting rights at the period-end
(if any)
Shareholding of the top 10 shareholders
Shares in pledge marked
Name of Nature of Shareholding Number of shares Restricted shares
or frozen
shareholder shareholder ratio (%) held (shares) held (shares)
Share status Quantity (shares)
Pledge by Li
Li Dongsheng 138178800
Dongsheng
and his Domestic natural
8.26 1158599393 610181602 Pledge by the
acting-in-concert person
persons acting in 344899521
party
concert
Huizhou
State-owned legal
Investment 5.30 743139840
person
Holding Co. Ltd.Wuhan Optics
Valley Industrial State-owned legal
3.65 511508951 511508951 Pledge 255754475
Investment Co. person
Ltd.Hong Kong
Securities Overseas legal
2.82395663351
Clearing person
Company Ltd.China Securities
Finance Domestic general
2.66373231553
Corporation legal person
Limited.Tibet Tianfeng
Enterprise Domestic general
1.76246568838
Management Co. legal person
Ltd.TCL Technology Funds wealth
0.81113143154
Group management
17Third Quarter 2021 Report of TCL Technology Group Corporation
Corporation - products etc.
2021 to 2023
Employee Stock
Ownership Plan
(Phase I)
Sinatay Life
Insurance Co. Funds wealth
Ltd. - management 0.77 107528172
Conventional products etc.Product
ICBC Credit
Suisse Asset
Management
－Agricultural
Funds wealth
Bank of
management 0.53 74761500
China-ICBC
products etc.Credit Suisse
China Securities
Financial Asset
Management Plan
Southern Asset
Management -
Agricultural Bank
Funds wealth
of China -
management 0.53 74761500
Southern China
products etc.Securities
Financial Asset
Management Plan
Top 10 unrestricted ordinary shareholders
Type of share
Name of shareholder Unrestricted ordinary shares held at the period-end
Type of share Quantity (shares)
Huizhou Investment Holding Co. RMB-denominate
743139840743139840
Ltd. d ordinary stock
Li Dongsheng and his RMB-denominate
548417791548417791
acting-in-concert party d ordinary stock
18Third Quarter 2021 Report of TCL Technology Group Corporation
Hong Kong Securities Clearing RMB-denominate
395663351395663351
Company Ltd. d ordinary stock
China Securities Finance RMB-denominate
373231553373231553
Corporation Limited. d ordinary stock
Tibet Tianfeng Enterprise RMB-denominate
246568838246568838
Management Co. Ltd. d ordinary stock
TCL Technology Group Corporation
RMB-denominate
- 2021 to 2023 Employee Stock 113143154 113143154
d ordinary stock
Ownership Plan (Phase I)
Sinatay Life Insurance Co. Ltd. - RMB-denominate
107528172107528172
Conventional Product d ordinary stock
ICBC Credit Suisse Fund -
RMB-denominat
Agricultural Bank of China - ICBC
74761500 ed ordinary 74761500
Credit Suisse China Securities
stock
Financial Asset Management Plan
Southern Asset Management -
Agricultural Bank of China - RMB-denominate
7476150074761500
Southern China Securities Financial d ordinary stock
Asset Management Plan
Zhong Ou Asset Management-
RMB-denominat
Agricultural Bank of China- Zhong
74761500 ed ordinary 74761500
Ou China Securities Financial Asset
stock
Management Plan
Mr. Li Dongsheng and Xinjiang Jiutian Liancheng Equity Investment Partnership (Limited
Note on the above shareholders’ Partnership) became persons acting in concert by signing the Agreement on Concerted
associations or concerted actions Action holding 1158599400 shares in total and becoming the largest shareholder of the
Company.Note on the top 10 shareholders' Tibet Tianfeng Enterprise Management Co. Ltd. a shareholder of the Company holds
participation in securities margin 154173746 shares through the general securities account and holds 92395092 shares
trading (if any) through the credit securities account with a total of 246568838 shares actually held.Note: The top ten shareholders of the Company do not include the "The Securities Account of TCL Technology Group Corporation
for Repurchases". As of the end of the reporting period there were 451727197 shares held in the repurchase account.II. Total number of shareholders holding preferred stocks and shareholding of the top 10 thereof
□ Applicable √ Not applicable
Section V Other Important Matters
□ Applicable √ Not applicable
19Third Quarter 2021 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 September 30 2021 December 31 2020
Current assets:
Monetary assets 23184408917.00 21708904743.00
Settlement reserves
Funds on loan
Held-for-trading financial assets 11831331630.00 5300045879.00
Derivative financial assets 179909523.00 453578245.00
Notes receivable 3379119189.00 595685338.00
Accounts receivable 21099262446.00 12557614486.00
Receivables financing 1921109524.00 2176743646.00
Prepayments 2951934848.00 1355653454.00
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract provisions receivable
Other receivables 3885453661.00 2793640153.00
Of which: Interests receivable
Dividends receivable 4930128.00
Financial assets purchased under sale-back agreement
Inventories 14458361006.00 8834957692.00
Contract assets 217788723.00 183650278.00
Held-for-sale assets 360935948.00
Non-current assets maturing within one year
Other current assets 9771156475.00 9367055433.00
Total current assets 92879835942.00 65688465295.00
Non-current assets:
Loans and advances to customers 981876228.00
Debt investments 119349896.00
20Third Quarter 2021 Report of TCL Technology Group Corporation
Other debt investments 91975931.00 152062601.00
Long-term receivables 655239169.00 778889309.00
Long-term equity investments 24635045163.00 24047036004.00
Investments in other equity instruments 1030905223.00 1333675630.00
Other non-current financial assets 2813697571.00 3055595097.00
Investment property 701618665.00 1664201130.00
Fixed assets 110704663779.00 92829901894.00
Construction-in-progress 34942314395.00 31508310783.00
Productive biological assets
Oil and gas assets
Right-of-use assets 1980527730.00
Intangible assets 12604939397.00 10054045032.00
Development expenditures 2909088335.00 2103994558.00
Goodwill 9125488681.00 6943264794.00
Long-term deferred expenses 1627220359.00 2536670015.00
Deferred tax assets 2117664125.00 1578087991.00
Other non-current assets 6566151346.00 12532852630.00
Total non-current assets 212506539869.00 192219813592.00
Total assets 305386375811.00 257908278887.00
Current liabilities:
Short-term borrowings 7615688682.00 12263713979.00
Borrowings from the Central Bank 1289155102.00 469834291.00
Borrowed funds 500100000.00
Held-for-trading financial liabilities 1029572413.00 527901041.00
Derivative financial liabilities 131544781.00 384903731.00
Notes payable 5936898099.00 4725611752.00
Accounts payable 28111529829.00 16468931544.00
Advances from customers 10271352.00 78597459.00
Contract liabilities 3133347724.00 2004004181.00
Financial assets sold under repurchase agreements 50080208.00
Deposits from customers and banks and other financial
1767151542.002850138744.00
institutions
Funds for brokering securities transaction
Funds for brokering securities underwriting
21Third Quarter 2021 Report of TCL Technology Group Corporation
Remunerations payable 3067368090.00 1856664146.00
Taxes and levies payable 1695966861.00 670058792.00
Other payables 18156812794.00 14869433359.00
Of which: Interests payable
Dividends payable 34607024.00 1293097.00
Service charges and commissions payable
Reinsurance accounts payable
Held-for-sale liabilities
Non-current liabilities maturing within one year 11044514342.00 13429669611.00
Other current liabilities 879169322.00 366970706.00
Total current liabilities 84369090933.00 71016513544.00
Non-current liabilities:
Insurance contract provisions
Long-term borrowings 90381279079.00 73589403308.00
Bonds payable 16959991644.00 18040772610.00
Of which: Preferred stocks
Perpetual bonds
Lease liabilities 940140289.00
Long-term payables 497341480.00 1280299665.00
Long-term remunerations payable 86649243.00 27857583.00
Estimated liabilities
Deferred income 1311591825.00 1509867357.00
Deferred tax liabilities 2964549710.00 2386496733.00
Other non-current liabilities
Total non-current liabilities 113141543270.00 96834697256.00
Total liabilities 197510634203.00 167851210800.00
Owner's equity:
Capital stock 14030642421.00 14030788362.00
Other equity instruments 230240606.00 230240606.00
Of which: Preferred stocks
Perpetual bonds
Capital reserves 3909667193.00 5442384608.00
Less: Treasury stocks 2423528242.00 1913028859.00
Other comprehensive income -319841847.00 -145573093.00
22Third Quarter 2021 Report of TCL Technology Group Corporation
Specific reserves 1003264.00 211932.00
Surplus reserves 2452892102.00 2452892102.00
General risk provisions 360767.00 385534.00
Retained earnings 21601813150.00 14009494262.00
Total equity attributable to the owners of the parent company 39483249414.00 34107795454.00
Minority interests 68392492194.00 55949272633.00
Total owner's equity 107875741608.00 90057068087.00
Total liabilities and owner's equity 305386375811.00 257908278887.00
Legal representative: Li Dongsheng Person in charge of accounting: Li Jian
Head of accounting department: Xi Wenbo
2. Consolidated Income Statement from the beginning of the year to the end of the reporting period
Unit: RMB
Amount incurred in the current Amount incurred in the
Item
period previous period
I. Total revenue 121041930585.00 48833159938.00
Of which: Revenue 120928535190.00 48709987251.00
Interest income 113395395.00 123172687.00
Earned premiums
Service charge and commission income
II. Total costs 108632792060.00 49698704134.00
Of which: Costs of sales 95426765891.00 43507752953.00
Interest expenditures 24985728.00 25967987.00
Service charge and commission expenditures
Surrender value
Net claims payment
Net insurance liability provisions accrued
Policy dividend expenditures
Reinsurance expenses
Taxes and levies 517656005.00 147380452.00
Selling expenses 1552806398.00 548204916.00
Administrative expenses 3008738778.00 1215567756.00
R&D expenses 5274324791.00 2800775204.00
Financial expenses 2827514469.00 1453054866.00
Of which: Interest expenses 3143032709.00 1663333175.00
23Third Quarter 2021 Report of TCL Technology Group Corporation
Interest income 304396859.00 297750444.00
Plus: Other income 1236157521.00 1254526018.00
Return on investment (losses are indicated by "-") 2884044180.00 1951687393.00
Of which: Share of profit or loss of joint ventures and
2115987323.001293666489.00
associates
Income from derecognition of financial assets
measured at amortised costs
Exchange gains (losses are indicated by "-") 1496097.00 321274.00
Gain on net exposure hedging (losses are indicated by
"-")
Gain on changes in fair value (losses are indicated by
38035283.00294474510.00
"-")
Credit impairment losses (losses are indicated by "-") -14189833.00 7074256.00
Asset impairment losses (losses are indicated by "-") -1556201649.00 -708096422.00
Income from asset disposal (losses are indicated by "-") 24654877.00 931334.00
III. Operating profit (losses are indicated by "-") 15023135001.00 1935374167.00
Plus: Non-operating income 284672695.00 496388240.00
Less: Non-operating expenditures 42141653.00 31308402.00
IV. Gross profits (total losses are indicated by "-") 15265666043.00 2400454005.00
Less: Income tax expenses 2102388345.00 338749095.00
V. Net profits (net losses are indicated by "-") 13163277698.00 2061704910.00
(1) Classification by business continuity
1. Net profits from continuing operations (net losses are
13104980954.002061704910.00
indicated by "-")
2. Net profits from discontinued operations (net losses are
58296744.00
indicated by "-")
(2) Classification by ownership
1. Net profits attributable to the owners of the parent company 9101970170.00 2025175746.00
2. Net profits attributable to minority interests 4061307528.00 36529164.00
VI. Other comprehensive income net of tax -160804149.00 184621267.00
Other comprehensive income attributable to the owners of the
-174268754.00220697688.00
parent company net of tax
(1) Other comprehensive income that will not be reclassified
-214495965.00-26301283.00
to profit or loss
1. Changes arising from remeasurement of defined
benefit plans
24Third Quarter 2021 Report of TCL Technology Group Corporation
2. Other comprehensive income that cannot be
subsequently reclassified into profits and losses under the equity 14869672.00 -5592197.00
method
3. Changes in fair value of other equity instrument
-229365637.00-20709086.00
investments
4. Changes in fair value of the enterprise's own credit
risks
5. Others
(2) Other comprehensive income that may subsequently
40227211.00246998971.00
reclassified into profit and loss
1. Other comprehensive income that can be transferred
-141659959.0078939921.00
to profits and losses under the equity method
2. Changes in fair value of other debt investments 118211.00
3. Amount of financial assets reclassified into other
comprehensive income
4. Provisions for credit impairment of other debt
investments
5. Reserves for cash flow hedging -10473743.00 48139564.00
6. Conversion differences in foreign currency financial
192242702.00119919486.00
statements
7. Others
Other net comprehensive income attributable to minority
13464605.00-36076421.00
interests net of tax
VII. Total comprehensive income 13002473549.00 2246326177.00
Total comprehensive income attributable to the owners of the
8927701416.002245873434.00
parent company
Total comprehensive income attributable to minority interests 4074772133.00 452743.00
VIII. Earnings per share:
(1) Basic earnings per share 0.6756 0.1563
(2) Diluted earnings per share 0.6487 0.1497
Legal representative: Li Dongsheng Person in charge of accounting: Li
Jian
Head of accounting department: Xi Wenbo
3. Consolidated Cash Flow Statement from the beginning of the year to the end of the reporting period
25Third Quarter 2021 Report of TCL Technology Group Corporation
Unit: RMB
Amount incurred in the current Amount incurred in the
Item
period previous period
I. Cash flow generated from operating activities:
Proceeds from sale of commodities and rendering of services 102830329814.00 50348052437.00
Net increase of deposits from customers and banks and other
-1082987202.001984254690.00
financial institutions
Net increase of borrowings from the Central Bank 819320811.00 661882266.00
Net increase of borrowings from other financial institutions 500100000.00
Cash received from collecting premiums for original
insurance contracts
Net cash received for reinsurance business
Net increase of deposits and investments of policyholders
Cash received from interest service charges and commissions 113395395.00 123172687.00
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 3993901692.00 2691374733.00
Cash generated from other operating activities 5956428024.00 1704768084.00
Sub-total of cash generated from operating activities 113130488534.00 57513504897.00
Payments for commodities and services 73019566104.00 36638895339.00
Net increase of loans and advances to customers 324408575.00 -991814418.00
Net increase of deposits with the Central Bank banks and
299437969.00-284795549.00
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 5891150448.00 2985796906.00
Taxes and levies paid 3198245274.00 3682068200.00
Cash used in other operating activities 6437971103.00 3612284290.00
Sub-total of cash used in operating activities 89170779473.00 45642434768.00
Net cash generated from operating activities 23959709061.00 11871070129.00
II. Cash flow generated from investment activities:
26Third Quarter 2021 Report of TCL Technology Group Corporation
Proceeds from disinvestments 18761531372.00 17115227387.00
Proceeds from return on investments 1486814462.00 783085375.00
Net proceeds from disposal of fixed assets intangible assets
170993357.00148840.00
and other long-term assets
Net proceeds from disposal of subsidiaries and other business
1167218777.00303139290.00
units
Cash generated from other investing activities 5589112.00
Sub-total of cash generated from investment activities 21592147080.00 18201600892.00
Payments for the acquisition and construction of fixed assets
20703364427.0023959069555.00
intangible assets and other long-term assets
Payments for investments 26563389197.00 34796469202.00
Net increase of pledged loans
Net payments for acquiring subsidiaries and other business
4139504958.00
units
Cash used in other investing activities 104678378.00 23279913.00
Subtotal of cash used in investing activities 51510936960.00 58778818670.00
Net cash used in investing activities -29918789880.00 -40577217778.00
III. Cash flow generated from financing activities:
Capital contributions received 10064658519.00 3262240000.00
Of which: Capital contributions by non-controlling interests to
10064658519.003262240000.00
subsidiaries
Borrowings raised 48844261186.00 53060270869.00
Cash generated from other financing activities 858099886.00 473470318.00
Sub-total of cash generated from financing activities 59767019591.00 56795981187.00
Cash paid for debt repayment 39176083445.00 28146415143.00
Cash paid for distribution of dividends and profits or payment
5851178360.004080360106.00
of interests
Of which: Dividends and profits paid by subsidiaries to
412425974.00279523652.00
minority shareholders
Other cash paid in relation to financing activities 6056321743.00 1083465759.00
Subtotal of cash used in financing activities 51083583548.00 33310241008.00
Net cash generated from financing activities 8683436043.00 23485740179.00
IV. Effect of exchange rate changes on cash and cash equivalents 3648815.00 -46170424.00
V. Net increase of cash and cash equivalents 2728004039.00 -5266577894.00
Plus: Beginning balance of cash and cash equivalents 18208416780.00 17637742929.00
VI. Closing balance of cash and cash equivalents 20936420819.00 12371165035.00
27Third Quarter 2021 Report of TCL Technology Group Corporation
Legal representative: Li Dongsheng Person in charge of accounting: Li
Jian
Head of accounting department: Xi Wenbo
II. Notes on adjustments in the financial statements
1. Adjustments to the beginning balances of the relevant items of the financial statements due to the
adoption of the new Leasing Standards initially implemented beginning in 2021
√ Applicable □ Not applicable
Whether there is need to adjust the beginning balances of the balance sheet items
√ Yes □ No
Consolidated Balance Sheet
Unit: RMB
Item December 31 2020 January 1 2021 Amount of adjustment
Current assets:
Monetary assets 21708904743.00 21708904743.00
Settlement reserves
Funds on loan
Held-for trading financial assets 5300045879.00 5300045879.00
Derivative financial assets 453578245.00 453578245.00
Notes receivable 595685338.00 595685338.00
Accounts receivable 12557614486.00 12557614486.00
Receivables financing 2176743646.00 2176743646.00
Prepayments 1355653454.00 1355653454.00
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract provisions
receivable
Other receivables 2793640153.00 2793640153.00
Of which: Interests receivable
Dividends receivable
Financial assets purchased under
sale-back agreement
Inventories 8834957692.00 8834957692.00
Contract assets 183650278.00 183650278.00
28Third Quarter 2021 Report of TCL Technology Group Corporation
Held-for-sale assets 360935948.00 360935948.00
Non-current assets maturing within
one year
Other current assets 9367055433.00 9367055433.00
Total current assets 65688465295.00 65688465295.00
Non-current assets:
Loans and advances to customers 981876228.00 981876228.00
Debt investments 119349896.00 119349896.00
Other debt investments 152062601.00 152062601.00
Long-term receivables 778889309.00 778889309.00
Long-term equity investments 24047036004.00 24047036004.00
Investments in other equity
1333675630.001333675630.00
instruments
Other non-current financial assets 3055595097.00 3055595097.00
Investment property 1664201130.00 1664201130.00
Fixed assets 92829901894.00 91515595994.00 -1314305900.00
Construction-in-progress 31508310783.00 31508310783.00
Productive biological assets
Oil and gas assets
Right-of-use assets 1856862180.00 1856862180.00
Intangible assets 10054045032.00 10054045032.00
Development expenditures 2103994558.00 2103994558.00
Goodwill 6943264794.00 6943264794.00
Long-term deferred expenses 2536670015.00 2099368428.00 -437301587.00
Deferred tax assets 1578087991.00 1578087991.00
Other non-current assets 12532852630.00 12532852630.00
Total non-current assets 192219813592.00 192325068285.00 105254693.00
Total assets 257908278887.00 258013533580.00 105254693.00
Current liabilities:
Short-term borrowings 12263713979.00 12263713979.00
Borrowings from the Central Bank 469834291.00 469834291.00
Borrowed funds
Held-for-trading financial liabilities 527901041.00 527901041.00
Derivative financial liabilities 384903731.00 384903731.00
Notes payable 4725611752.00 4725611752.00
29Third Quarter 2021 Report of TCL Technology Group Corporation
Accounts payable 16468931544.00 16468931544.00
Advances received 78597459.00 78597459.00
Contract liabilities 2004004181.00 2004004181.00
Financial assets sold under repurchase
50080208.0050080208.00
agreement
Deposits from customers and banks
2850138744.002850138744.00
and other financial institutions
Funds for brokering securities
transaction
Funds for brokering securities
underwriting
Remunerations payable 1856664146.00 1856664146.00
Taxes and levies payable 670058792.00 670058792.00
Other payables 14869433359.00 14869433359.00
Of which: Interests payable
Dividends payable 1293097.00 1293097.00
Service charges and commissions
payable
Reinsurance accounts payable
Held-for-sale liabilities
Non-current liabilities maturing within
13429669611.0013449071421.0019401810.00
one year
Other current liabilities 366970706.00 366970706.00
Total current liabilities 71016513544.00 71035915354.00 19401810.00
Non-current liabilities:
Insurance contract provisions
Long-term borrowings 73589403308.00 73589403308.00
Bonds payable 18040772610.00 18040772610.00
Of which: Preferred stocks
Perpetual bonds
Lease liabilities 912550980.00 912550980.00
Long-term payables 1280299665.00 453601568.00 -826698097.00
Long-term remunerations payable 27857583.00 27857583.00
Estimated liabilities
Deferred income 1509867357.00 1509867357.00
Deferred tax liabilities 2386496733.00 2386496733.00
30Third Quarter 2021 Report of TCL Technology Group Corporation
Other non-current liabilities
Total non-current liabilities 96834697256.00 96920550139.00 85852883.00
Total liabilities 167851210800.00 167956465493.00 105254693.00
Owner's equity:
Capital stock 14030788362.00 14030788362.00
Other equity instruments 230240606.00 230240606.00
Of which: Preferred stocks
Perpetual bonds
Capital reserves 5442384608.00 5442384608.00
Less: Treasury stocks 1913028859.00 1913028859.00
Other comprehensive income -145573093.00 -145573093.00
Specific reserves 211932.00 211932.00
Surplus reserves 2452892102.00 2452892102.00
General risk provisions 385534.00 385534.00
Retained earnings 14009494262.00 14009494262.00
Total equity attributable to the owners of
34107795454.0034107795454.00
the parent company
Minority interests 55949272633.00 55949272633.00
Total owner's equity 90057068087.00 90057068087.00
Total liabilities and owner's equity 257908278887.00 258013533580.00 105254693.00
Note on the adjustments
As of January 1 2021 the Company has adopted the Accounting Standards for Business Enterprises No. 21 - Leasing revised by the
Ministry of Finance in 2018.The Company has adopted the simplified retroactive adjustment method to adjust the beginning balances of relevant items of the
financial statements for the year of the initial implementation (January 1 2021) according to the cumulative impact of the initial
implementation of the Standards based on the requirements of the new Leasing Standards and has not adjusted the information for
comparable periods.The impact of the implementation of the new Lease Standards on the beginning balances of the relevant items of the Balance Sheet
are shown as follows:
Unit: RMB
Item December 31 2020 Amount of adjustment January 1 2021
Fixed assets 92829901894 -1314305900 91515595994
Right-of-use assets 1 8 5 6 8 6 2 1 8 0 1856862180
Long-term prepaid expenses 2536670015 -437301587 2099368428
Non-current liabilities maturing
134296696111940181013449071421
within one year
Lease liabilities 9 1 2 5 5 0 9 8 0 912550980
31Third Quarter 2021 Report of TCL Technology Group Corporation
Long-term payables 1280299665 -826698097 453601568
2. Notes on retrospective adjustments to the previous comparative data due to adoption of the new Leasing
Standards initially implemented beginning in 2021
□ Applicable √ Not applicable
III. Auditor’s report
Whether the Third Quarter 2021 Report has been audited or not?
□ Yes √ No
The Company's Third Quarter 2021 Report has not yet been audited.TCL Technology Group Corporation
Board of Directors
October 27 2021
32