TCL科技:2022年第一季度报告（英文版）

TCL Technology Group Corporation First Quarter 2022 Report
TCL科技集团股份有限公司
TCL Technology Group Corporation
First Quarter 2022 Report
April 27 2022
1TCL Technology Group Corporation First Quarter 2022 Report
Table of Contents
Section I Important Notice .......................... 3
Section II Key Financial Information................. 4
Section III Management Discussion and Analysis ...... 7
Section IV Shareholder Information ................. 10
Section V Other Important Matters .................. 12
Section VI Quarterly Financial Statements .......... 12
2TCL Technology Group Corporation First Quarter 2022 Report
Section I Important Notice
The Board of Directors (or the “Board”) the Supervisory Committee as well as the directors
supervisors and senior management of TCL Technology Group Corporation (hereinafter referred to
as the “Company”) hereby guarantee the factuality accuracy and completeness of the contents of
this First Quarter 2022 Report and shall be jointly and severally liable for any misrepresentations
misleading statements or material omissions therein.Mr. Li Dongsheng the Chairman of the Board Ms. Li Jian the person-in-charge of
financial affairs (Chief Financial Officer) and Mr. Xi Wenbo the person-in-charge of the
financial department hereby guarantee that the financial statements carried in this First Quarter
2022 Report are factual accurate and complete.
All the Company’s directors 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.
3TCL Technology Group Corporation First Quarter 2022 Report
Section II Key Financial Information
I. Key financial information and financial indicators
Indicate whether there is any retrospectively restated datum in the table below.√ Yes □ No
Reasons for retroactive adjustment or restatement
Change of accounting policy
Q1 2021 YoY change
Q1 2022
Before adjustment After adjustment After adjustment
Revenue (RMB) 40566851319 32143561563 32244933306 25.81%
Net profit attributable to the company’s
135253312524037299352410539527-43.89%
shareholders (RMB)
Net profits attributable to the company’s
shareholders before non-recurring gains 611554193 2123056041 2129865633 -71.29%
and losses (RMB)
Net cash generated from operating
386395388180032019798003201979-51.72%
activities (RMB)
Basic earnings per share (RMB/share) 0.1008 0.1781 0.1786 -43.56%
Diluted earnings per share (RMB/share) 0.0993 0.1713 0.1718 -42.20%
Weighted average return on equity (%) 3.16% 7.07% 7.09% -3.93%
December 31 2021 Change
March 31 2022
Before adjustment After adjustment After adjustment
Total assets (RMB) 316518995777 308733133305 308987970915 2.44%
Owner’s equity attributable to the
4350494330143034234611431035807990.93%
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 of this Report (share)
Fully diluted earnings per share based on the latest total share capital above:
Fully diluted earnings per share based on the latest
0.0964
total share capital above (RMB/share)
II. Non-recurring profit and loss items and amount
√ Applicable □ Not applicable
4TCL Technology Group Corporation First Quarter 2022 Report
Unit: RMB
Amount for the current
Item Note
reporting period
Gains and losses on disposal of non-current assets (inclusive of
-2868821 Not applicable
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 277162460 Not applicable
regulations and are enjoyed on an ongoing basis according to
certain standard quotas or quantities)
The profits and losses generated from changes in fair value
arising from holding marketable financial assets and marketable
financial liabilities as well as the investment-related income from
the disposal of marketable financial assets marketable financial -3059068 Not applicable
liabilities and available-for-sale financial assets except for the
effective hedging business related to the Company’s normal
business operation.Non-operating income and expenses other than the above 568266489 Not applicable
Less: Corporate income tax 29836572 Not applicable
Non-controlling interests (net of tax) 68685556 Not applicable
Total 740978932 --
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
Unit: RMB
Balance Sheet Ending balance Beginning Increase / Reason for change
5TCL Technology Group Corporation First Quarter 2022 Report
items balance decrease ratio
(%)
Prepayments Mainly due to an expansion of production scale
3481851278230632511651.0
and an increase in prepayments
Short-term Mainly due to an increase in financing scale
14457812778934142654354.8
borrowings
Borrowings from Mainly due to a decrease in borrowings from the
9312491781437062154-35.2
the Central Bank Central Bank by the Finance Company
Notes payable Mainly due to an increase in scale and an
5158493935327529591557.5
increase in operating notes payable
Contract liabilities 3878494022 2593882004 49.5 Mainly due to an increase in advance receipts
Increase /
Income January - January -
decrease ratio Reason for change
Statement items March 2022 March 2021
(%)
Cost of sales Mainly due to the expansion of operating
355947510402538335798940.2
revenue scale and the merger of Moka
R&D expenses 2042751101 1540240528 32.6 Mainly due to the increase of R&D investment
Financial expenses 991083508 740010321 33.9 Mainly due to an increase in exchange losses
Increase /
Cash Flow January - January -
decrease ratio Reason for change
Statement items March 2022 March 2021
(%)
Net cash generated
Mainly due to an increase in payments for
from operating 3863953881 8003201979 -51.7
commodities and services
activities
Net cash generated Mainly due to the absorbing of minority
from financing 4613471688 2657860614 73.6 shareholders' investments and the issuing of
activities bonds
6TCL Technology Group Corporation First Quarter 2022 Report
Section III Management Discussion and Analysis
This year the international situation has become increasingly complicated and increasingly
severe; geopolitical conflicts have triggered an increase in commodity prices and sparked the
expectation of inflation; the spread of the pandemic has weakened downstream production and
consumption links; and the global economy is facing great challenges. Faced with business pressurethe Company adheres to the strategic policy of “Striving to Ramp Up Catching Up and SurpassingPressing on Toward Global Leadership” to promote the high-quality development of the enterprise.The Company focuses on the development of core high-tech industries of semi-conductor
displays and new energy photovoltaic and semi-conductor materials implements the businessstrategy of “Improving Business Quality and Efficiency Strengthening Advantages and Making upfor Disadvantages Innovation-driven Development and Accelerating Global Layout” sticks to the
business bottom line of extreme cost efficiency and strengthens risk control capabilities and
adaptability. In the first quarter the Company achieved an operating revenue of RMB40.57
billion a year-on-year increase of 25.8%; it achieved a net profit of RMB2.35 billion a
year-on-year decrease of 27.5% but a month-on-month increase of 29.5%; its net profit
attributable to shareholders of the listed company was RMB1.35 billion a year-on-year
decrease of 43.9% but a month-on-month increase of 41%; its R&D investment was RMB2.25
billion a year-on-year increase of 10.1%.Impacted by factors such as the weakening of downstream demand and short-term stagnation of
the supply chain the prosperity of the semi-conductor display industry fell to the bottom of its field
the prices of large-scale products decreased significantly compared with the same period last year
and industry profitability came under pressure. TCL CSOT continued to expand its economy of
scale improve the business structure and optimize the composition of products and customers
meeting business challenges with extreme management efficiency. In the first quarter of 2022 the
sales area of TCL CSOT products increased by 34.7% year-on-year to 11.241 million square
meters; it achieved an operating revenue of RMB20.04 billion from the semi-conductor
display business a year-on-year increase of 15.3% and earned a net profit of RMB340 million
a year-on-year decrease of 85.8%.
7TCL Technology Group Corporation First Quarter 2022 Report
In the field of large-scale products business Factory t7 ramped up as scheduled and the market
share of the Company in the field of large-scale products further improved: it ranked second in the
world in terms of market share for TV panels and the first in the world in terms of market share for
8K and 120Hz high-end TV panels; it ranked first in the world in terms of market share for
interactive whiteboards and maintained rapid growth in field of commercial displays such as digital
signs and splicing screens; it maintained its ranking as first in the world in terms of e-sports
displays and the revenue share from non-TV business increased to 24%. In the field of small and
medium-sized products business Factory t3 the factory with the largest single production capacity
of LTPSs in the world is actively transforming its products such as notebook computers tablets and
onboard products to optimize the product portfolio; LTPS tablets ranked first in the world notebook
computers ranked second in the world and revenue from LTPS business other than mobile phone
business reached 54%; the Factory t3 expansion project is progressing in an accelerated manner
and the overall capacity of LTPSs will achieve a scale and comprehensive competitiveness that
ranks first overall; the production capacity for Phase II and Phase III of the Factory t4 production
line are under construction as scheduled and are still facing business pressure during the ramp-up
period but the development of new technologies and products such as flexible OLED folding
under-screen cameras and LTPO is progressing smoothly and the customer structure is gradually
being optimized laying the foundation for subsequent business improvement; Factory t9
positioned for the layout of new businesses such as medium-sized IT and onboard products is
accelerating in its construction and is expected to achieve mass production in 2023.The business of new energy photovoltaic and semi-conductor materials continued to grow
rapidly with the proportion of its performance contribution increasing significantly. During
the reporting period TCL Zhonghuan achieved an operating revenue of RMB13.37 billion a
year-on-year increase of 79.1% and earned a net profit of RMB1.46 billion a year-on-year increase
of 96.2%.Benefiting from the growth of domestic distributed installed capacity and the demand for
accelerated transformation of overseas energy there was continued demand in the new energy
photovoltaic industry; however uncertainties such as industrial chain coordination and logistics
exacerbated business challenges due to the impact of the epidemic. The Company gives full play to
8TCL Technology Group Corporation First Quarter 2022 Report
the comprehensive advantages of G12 advanced production capacity laminated tile patent barrier
and Industry 4.0 flexible manufacturing to maintain industry leadership in advanced production
capacity scale technology and production efficiency as well as continue improving market share.As of the end of the first quarter of 2022 the production capacity of single crystals had increased to
95GW of which G12 production capacity accounted for 72% ranking first in the global market.
Benefiting from the rapid growth of 5G and automotive electronics the speed of expansion of
wafer factories has driven the strong demand for semiconductor materials. Through the dual-path
development of 'characteristic process + advanced manufacturing process' during the reporting
period the production capacity of 8-12 inch polished wafers and epitaxial wafers increased rapidly
the product and customer structure was upgraded rapidly the product sales scale increased by 54%
year-on-year and the production capacity of 8-inch products reached 800000 pieces per month
having formed a comprehensive product capacity and market competitiveness comparable with
international first-line manufacturers and realized the full coverage of domestic customers; the
production capacity of 12-inch products reached 170000 pieces per month and accelerated
catching up in terms of advanced process products. At present 28nm and above series products
have entered the stage of mass production having signed into long-term strategic cooperation
agreements with a number of front-line customers at home and abroad.Looking ahead to the whole year the world development pattern is complex and cha ngeable
and global economic development faces great challenges. In response to the changing situation the
Company will adhere to the spirit of “Striving to Ramp Up Catching Up and Surpassing” respond
to the uncertainty from the surrounding environment with business certainty and give full play to
the advantages of efficiency and technological innovation; the Company will accelerate the
upgrade from being a leader in large-scale displays to being a leader in full-scale products in
terms of the field of semi-conductor displays achieve global leadership in comprehensive
competitiveness in the field of new energy photovoltaic materials give play to industrial
synergy in the field of semiconductor materials and build a leading global technology
industry group.
9TCL Technology Group Corporation First Quarter 2022 Report
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: share
Total number of preference
Total number of ordinary shareholders with resumed
7730770
shareholdersat the period-end voting rights at the period-end
(if any)
Shareholding of the top 10 shareholders
Name of Nature of Shareholding Number of shares Restricted shares Shares in pledge marked or frozen
Shareholder shareholder ratio (%) held held Share Status Shares
Li Dongsheng Domestic natural Pledge 164338800
and his person / Domestic
8.261158599393610181602
acting-in-concert non-state-owned Pledge 215000000
party legal person
Huizhou
State-owned legal
Investment 5.30 743139840 0
person
Holding Co. Ltd.Wuhan Optics
Valley Industrial State-owned legal
3.98 558552396 0 Pledge 255754475
Investment Co. person
Ltd.Hong Kong
Securities Foreign legal
2.713803851710
Clearing person
Company Ltd.China Securities
Domestic
Finance
non-state-owned 2.66 373231553 0
Corporation
legal person
Limited
Tibet Tianfeng
Domestic
Enterprise
non-state-owned 1.54 215582406 0
Management Co.legal person
Ltd.TCL Technology Fund wealth
Group management 0.81 113143154 0
Corporation - product etc.
10TCL Technology Group Corporation First Quarter 2022 Report
2021 to 2023
Employee Stock
Ownership Plan
(Phase I)
Sinatay Life
Insurance Co. Fund wealth
Ltd. - management 0.74 104190172 0
Conventional product etc.Product
ICBC Credit
Suisse Fund -
Agricultural Bank
Fund wealth
of China - ICBC
management 0.53 74761500 0
Credit Suisse
product etc.China Securities
Financial Asset
Management P lan
Southern Asset
Management -
Agricultural Bank
Fund wealth
of China -
management 0.53 74761500 0
Southern China
product etc.Securities
Financial Asset
Management P lan
Top 10 unrestricted ordinary shareholders
Shares by class
Name of Shareholder Number of unrestricted ordinary shares held
Shares by class Shares
Huizhou Investment Holding Co. RMB-denominate
743139840743139840
Ltd. d ordinary stock
Wuhan Optics Valley Industrial RMB-denominate
558552396558552396
Investment Co. Ltd. d ordinary stock
Li Dongsheng and his RMB-denominate
548417791548417791
acting-in-concert party d ordinary stock
Hong Kong Securities Clearing RMB-denominate
380385171380385171
Company Ltd. d ordinary stock
China Securities Finance RMB-denominate
373231553373231553
Corporation Limited d ordinary stock
Tibet Tianfeng Enterprise RMB-denominate
215582406215582406
Management Co. Ltd. d ordinary stock
11TCL Technology Group Corporation First Quarter 2022 Report
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
104190172104190172
Conventional Product d ordinary stock
ICBC Credit Suisse Fund -
Agricultural Bank of China - ICBC RMB-denominate
7476150074761500
Credit Suisse China Securities d ordinary 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
Mr. Li Dongsheng and Ningbo 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 1158599393 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 123187314 shares through the general securities account and holds 92395092 shares
trading (if any) through the credit securities account with a total of 215582406 shares actually held.Special account for share The top ten shareholders of the Company include the "The Securities Account of TCL
repurchases (if any) among the top Technology Group Corporation for Repurchases". As of the end of the reporting period there
10 shareholders were 327728516 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
Section VI Quarterly Financial Statements
I. Financial statements
1. Consolidated Balance Sheet
Prepared by: TCL Technology Group Corporation
Unit: RMB
12TCL Technology Group Corporation First Quarter 2022 Report
Item March 31 2022 December 31 2021
Current assets:
Monetary assets 28552470300 31393692485
Settlement reserves
Funds on loan
Held-for-trading financial assets 8069926732 7601255964
Derivative financial assets 322678427 70928566
Notes receivable 727550494 776201686
Accounts receivable 18500042137 18238782247
Receivables financing 2490926634 2217638736
Prepayments 3481851278 2306325116
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract provisions
receivable
Other receivables 5061976198 4458621235
Of which: Interests receivable - -
Dividends receivable - -
Financial assets purchased under
--
sale-back agreement
Inventories 15655222396 14083356918
Contract assets 251695386 233528786
Held-for-sale assets - -
Non-current assets maturing within
--
one year
Other current assets 6067310872 5802960362
Total current assets 89181650854 87183292101
Non-current assets:
Loans and advances to customers - -
Debt investments 20005392 -
Other debt investments - -
Long-term receivables 636980360 651117971
Long-term equity investments 26312482901 25640578245
Investments in other equity
907425159927319447
instruments
13TCL Technology Group Corporation First Quarter 2022 Report
Other non-current financial assets 2544518385 2704037825
Investment property 887658397 761902236
Fixed assets 113933544407 113579297130
Construction in progress 38973986371 36965885393
Productive biological assets
Oil and gas assets
Right-of-use assets 2279108039 2426911208
Intangible assets 15053564730 13982647108
Development costs 2531852461 2508418669
Goodwill 9158841295 9158841295
Long-term deferred expenses 2639976273 2640530156
Deferred income tax assets 2186797451 2153345865
Other non-current assets 9270603302 7449008656
Total non-current assets 227337344923 221549841204
Total assets 316518995777 308733133305
Current liabilities:
Short-term borrowings 14457812778 9341426543
Borrowings from the Central Bank 931249178 1437062154
Borrowed funds 490296314 -
Held-for-trading financial
1107531562925035483
liabilities
Derivative financial liabilities 150126418 22204824
Notes payable 5158493935 3275295915
Accounts payable 22333315646 24297859803
Advances from customers 4720742 5794242
Contract liabilities 3878494022 2593882004
Financial assets sold under
--
repurchase agreements
Customer deposits and deposits
from other banks and financial 1245502887 666056133
institutions
Funds for brokering securities
transaction
Funds for brokering securities
underwriting
Employee compensation payable 2694460641 3311933217
14TCL Technology Group Corporation First Quarter 2022 Report
Taxes and levies payable 1074816975 1238849334
Other payables 19002048259 19386888623
Of which: Interests payable - -
Dividends payable 1258937007 34607012
Service charges and commissions
payable
Reinsurance accounts payable
Held-for-sale liabilities - -
Current portion of non-current
1496566082413006764842
liabilities due within a one-year period
Other current liabilities 1335041800 1269886904
Total current liabilities 88829571981 80778940021
Non-current liabilities:
Insurance contract provisions
Long-term borrowings 86196079447 87279081955
Bonds payable 12057598825 13066281402
Of which: Preferred stocks
Perpetual bonds
Lease liabilities 1084941574 1102071813
Long-term payables 649802775 671344466
Long-term employee
686643663669931395
compensation payable
Estimated liabilities
Deferred income 2397904434 2361205043
Deferred income tax liabilities 3097626266 3158985929
Other non-current liabilities - -
Total non-current liabilities 106170596984 108308902003
Total liabilities 195000168965 189087842024
Owner's equity:
Share capital 14030642421 14030642421
Other equity instruments 200334057 200334057
Of which: Preferred stocks
Perpetual bonds
Capital reserves 5238082152 6079267240
Less: Treasury stock 2054946580 1885556526
15TCL Technology Group Corporation First Quarter 2022 Report
Other comprehensive income -351078842 -409447681
Specific reserves 2584804 1549125
Surplus reserves 2550172644 2550172644
General risk reserve 8933515 8933515
Retained earnings 23880219130 22458339816
Total equity attributable to the owners
4350494330143034234611
of the parent company
Non-controlling interests 78013883511 76611056670
Total owner's equity 121518826812 119645291281
Total liabilities and owner's equity 316518995777 308733133305
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Li Jian
Person-in-charge of the financial department: Xi Wenbo
2. Consolidated Income Statement
Unit: RMB
Amount incurred in the current Amount incurred in the previous
Item
period period
1. Total revenue 40597535003 32173945858
Of which: Revenue 40566851319 32143561563
Interest income 30683684 30384295
Earned premiums
Service charge and commission income -
II. Total costs 40004606380 28868451833
Of which: Cost of sales 35594751040 25383357989
Interest expenditures 9336013 4754960
Service charge and commission
-
expenditures
Surrender value
Net claims payment
Net insurance liability provisions accrued
Policy dividend expenditures
Reinsurance expenses
Taxes and levies 137883718 106853638
Selling expenses 471927285 330230062
16TCL Technology Group Corporation First Quarter 2022 Report
Administrative expense 756873715 763004335
R&D expenses 2042751101 1540240528
Financial expenses 991083508 740010321
Including: Interest expenses 999858819 966852847
Interest income 176470746 103593808
Plus: Other income 976625863 343452869
Return on investment (losses are indicated by
661221895493372758
"-")
Including: Share of profit or loss of joint
804480527149003152
ventures and associates
Income from derecognition of financial
assets measured at amortised costs
Exchange gains (losses are indicated by "-") 14068652 -14384
Gain on net exposure hedging (losses are
--
indicated by "-")
Gain on changes in fair value (losses are
-136683550-292943771
indicated by "-")
Credit impairment losses (losses are indicated
5829571-31736912
by "-")
Asset impairment losses (losses are indicated
-246385486-301118508
by "-")
Income from asset disposal (losses are
-4567331159503
indicated by "-")
III. Operating profit (losses are indicated by "-") 1863038237 3516665580
Plus: Non-operating income 581485774 210942953
Less: Non-operating expenses 8873689 4694406
IV. Gross profits (total losses are indicated by "-") 2435650322 3722914127
Less: Income tax expenses 89681571 487257128
V. Net profits (net losses are indicated by "-") 2345968751 3235656999
(1) Classification by business continuity
1. Net profits from continuing operations (net
23459687513235656999
losses are indicated by "-")
2. Net profits from discontinued operations (net
--
losses are indicated by "-")
(2) Classification by ownership
1. Net profits attributable to the owners of the
13525331252403729935
parent company
17TCL Technology Group Corporation First Quarter 2022 Report
2. Net profit attributable to non-controlling
993435626831927064
interests
VI. Other comprehensive income net of tax 107592545 -180087886
Other comprehensive income attributable to the
58368839-151737311
owners of the parent company net of tax
(1) Other comprehensive income that will not be
-18244588-65621285
reclassified to profit or loss
1. Changes arising from remeasurement of
defined benefit plans
2. Other comprehensive income that cannot
be subsequently reclassified into profits and losses - -
under the equity method
3. Changes in fair value of other equity
-18244588-65621285
instrument investments
4. Changes in fair value of the enterprise's
own credit risks
5. Others
(2) Other comprehensive income that may
76613427-86116026
subsequently reclassified into profit and loss
1. Other comprehensive income that can be
transferred to profits and losses under the equity 129581 11868
method
2. Changes in fair value of other debt
-
investments
3. Amount of financial assets reclassified
into other comprehensive income
4. Provisions for credit impairment of other
debt investments
5. Reserves for cash flow hedging 27994488 -75069636
6. Conversion differences in foreign
48489358-11058258
currency financial statements
7. Others -
Other net comprehensive income attributable to
49223706-28350575
minority interests net of tax
VII. Total comprehensive income 2453561296 3055569113
Total comprehensive income attributable to the
14109019642251992624
owners of the parent company
Total comprehensive income attributable to 1042659332 803576489
18TCL Technology Group Corporation First Quarter 2022 Report
non-controlling interests
VIII. Earnings per share:
(1) Basic earnings per share 0.1008 0.1781
(2) Diluted earnings per share 0.0993 0.1713
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Li Jian
Person-in-charge of the financial department: Xi Wenbo
3. Consolidated Cash Flow Statement
Unit: RMB
Amount incurred in the current Amount incurred in the previous
Item
period period
I. Cash flow generated from operating activities:
Proceeds from sale of commodities and rendering
3247989208727034723608
of services
Net increase of deposits from customers and
579446754733511000
banks and other financial institutions
Net increase of borrowings from the Central Bank -505812976 198608011
Net increase in loans from other financial
490296314
institutions
Cash received from collecting premiums for
original insurance contracts
Net cash received for reinsurance business
Net increase of deposits and investments of
policyholders
Interest fees and commissions received 30683684 30384295
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 1801281700 1394337857
Cash generated from other operating activities 1752565605 1171334830
Sub-total of cash generated from operating activities 36628353168 30562899601
Payments for commodities and services 25746314393 17145704624
Net increase of loans and advances to customers -291363670 1013946603
Net increase of deposits with the Central Bank 202991230 68720062
19TCL Technology Group Corporation First Quarter 2022 Report
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 3158375360 2018238456
Taxes and levies paid 806447479 582590307
Cash used in other operating activities 3141634495 1730497570
Sub-total of cash used in operating activities 32764399287 22559697622
Net cash generated from operating activities 3863953881 8003201979
II. Cash flow generated from investing activities:
Proceeds from disinvestments 9653344653 6373430027
Proceeds from return on investments 239383580 125899457
Net proceeds from disposal of fixed assets
342258318531879
intangible assets and other long-term assets
Net proceeds from disposal of subsidiaries and
other business units
Cash generated from other investing activities 50123919 6368912
Sub-total of cash generated from investment activities 9946274735 6524230275
Payments for the acquisition and construction of
fixed assets intangible assets and other long-term 10941138741 7543249643
assets
Payments for investments 11495911476 9287433997
Net increase of pledged loans
Net payments for acquiring subsidiaries and other
business units
Cash used in other investing activities 100914607 50133413
Subtotal of cash used in investing activities 22537964824 16880817053
Net cash used in investing activities -12591690089 -10356586778
III. Cash flow generated from financing activities:
Capital contributions received 2571180000 94900000
Including: Capital contributions by
257118000094900000
non-controlling interests to subsidiaries
Borrowings raised 18821994041 16219912408
20TCL Technology Group Corporation First Quarter 2022 Report
Cash generated from other financing activities 151949228
Sub-total of cash generated from financing activities 21393174041 16466761636
Cash paid for debt repayment 13689241447 10706121604
Cash paid for distribution of dividends and profits
11113306241209556374
or payment of interests
Including: Dividends paid by subsidiaries to
1979002723055560
non-controlling interests
Cash used in other financing activities 1979130282 1893223044
Subtotal of cash used in financing activities 16779702353 13808901022
Net cash generated from financing activities 4613471688 2657860614
IV. Effect of exchange rate changes on cash and cash
-2732677657381895
equivalents
V. Net increase of cash and cash equivalents -4141591296 361857710
Plus: Beginning balance of cash and cash
3008170486418208416780
equivalents
VI. Closing balance of cash and cash equivalents 25940113568 18570274490
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Li Jian
Person-in-charge of the financial department: Xi Wenbo
II. Notes on adjustments in the financial statements
On December 31 2021 the Ministry of Finance issued the Notice on the Issuance of ‘Interpretation of Accounting Standards
for Business Enterprises No. 15’ (CK [2021] No. 35) (hereinafter referred to as “Interpretation No. 15”) which defines the
accounting handling of the external sales of products or by-products produced before the fixed assets reach the expected serviceable
state or during the R&D process. In accordance with the requirements of Interpretation No. 15 the company has adopted new
accounting standards as of January 1 2022 and retroactively adjusted the profit and loss realized from the external sales of trial
products produced in previous periods. The impact of the adoption of the new standards on relevant items is as follows.
1. Adjustments to the beginning balances of the relevant items of the financial statements due to the adoption of the new
Accounting Standards initially implemented beginning in 2022
Consolidated Balance Sheet
Unit: RMB
Item December 31 2021 January 1 2022 Amount of adjustment
Current assets:
Monetary assets 31393692485 31393692485
Settlement reserves
21TCL Technology Group Corporation First Quarter 2022 Report
Funds on loan
Held-for-trading financial assets 7601255964 7601255964
Derivative financial assets 70928566 70928566
Notes receivable 776201686 776201686
Accounts receivable 18238782247 18238782247
Receivables financing 2217638736 2217638736
Prepayments 2306325116 2306325116
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract provisions
receivable
Other receivables 4458621235 4458621235
Of which: Interests receivable
Dividends receivable
Financial assets purchased under
sale-back agreement
Inventories 14083356918 14083356918
Contract assets 233528786 233528786
Held-for-sale assets
Non-current assets maturing
within one year
Other current assets 5802960362 5802960362
Total current assets 87183292101 87183292101 -
Non-current assets:
Loans and advances to
customers
Debt investments
Other debt investments
Long-term receivables 651117971 651117971
Long-term equity investments 25640578245 25640578245
Investments in other equity
927319447927319447
instruments
Other non-current financial
27040378252704037825
assets
Investment property 761902236 761902236
22TCL Technology Group Corporation First Quarter 2022 Report
Fixed assets 113579297130 113723758876 144461746
Construction in progress 36965885393 37029504222 63618829
Productive biological assets
Oil and gas assets
Right-of-use assets 2426911208 2426911208
Intangible assets 13982647108 14000546363 17899255
Development costs 2508418669 2540199289 31780620
Goodwill 9158841295 9158841295
Long-term deferred expenses 2640530156 2640530156
Deferred income tax assets 2153345865 2150423025 -2922840
Other non-current assets 7449008656 7449008656
Total non-current assets 221549841204 221804678814 254837610
Total assets 308733133305 308987970915 254837610
Current liabilities:
Short-term borrowings 9341426543 9341426543
Borrowings from the Central
14370621541437062154
Bank
Borrowed funds
Held-for-trading financial
925035483925035483
liabilities
Derivative financial liabilities 22204824 22204824
Notes payable 3275295915 3275295915
Accounts payable 24297859803 24297859803
Advances from customers 5794242 5794242
Contract liabilities 2593882004 2593882004
Financial assets sold under
repurchase agreements
Customer deposits and deposits
from other banks and financial 666056133 666056133
institutions
Funds for brokering securities
transaction
Funds for brokering securities
underwriting
Employee compensation payable 3311933217 3311933217
Taxes and levies payable 1238849334 1238849334
23TCL Technology Group Corporation First Quarter 2022 Report
Other payables 19386888623 19386888623
Of which: Interests payable
Dividends payable 34607012 34607012
Service charges and
commissions payable
Reinsurance accounts payable
Held-for-sale liabilities
Current portion of non-current
liabilities due within a one-year 13006764842 13006764842
period
Other current liabilities 1269886904 1269886904
Total current liabilities 80778940021 80778940021 -
Non-current liabilities:
Insurance contract provisions -
Long-term borrowings 87279081955 87279081955
Bonds payable 13066281402 13066281402
Of which: Preferred stocks
Perpetual bonds
Lease liabilities 1102071813 1102071813
Long-term payables 671344466 671344466
Long-term employee
669931395669931395
compensation payable
Estimated liabilities
Deferred income 2361205043 2361205043
Deferred income tax liabilities 3158985929 3158985929
Other non-current liabilities
Total non-current liabilities 108308902003 108308902003 -
Total liabilities 189087842024 189087842024 -
Owner's equity:
Share capital 14030642421 14030642421
Other equity instruments 200334057 200334057
Of which: Preferred stocks
Perpetual bonds
Capital reserves 6079267240 6079267240
Less: Treasury stock 1885556526 1885556526
24TCL Technology Group Corporation First Quarter 2022 Report
Other comprehensive income -409447681 -409447681
Specific reserves 1549125 1549125
Surplus reserves 2550172644 2550172644
General risk reserve 8933515 8933515
Retained earnings 22458339816 22527686004 69346188
Total equity attributable to the owners
430342346114310358079969346188
of the parent company
Non-controlling interests 76611056670 76796548092 185491422
Total owner's equity 119645291281 119900128891 254837610
Total liabilities and owner's equity 308733133305 308987970915 254837610
2. Notes on retrospective adjustments to the previous comparative data due to adoption of the new Accounting Standards
initially implemented beginning in 2022
Consolidated Income Statement
Unit: RMB
Amount incurred in the Amount incurred in the Amount of
Item previous period before previous period after adjustment
adjustment adjustment
1. Total revenue 32173945858 32275317601 101371743
Of which: Revenue 32143561563 32244933306 101371743
Interest income 30384295 30384295
Earned premiums
Service charge and commission income
II. Total costs 28868451833 28950337978 81886145
Of which: Cost of sales 25383357989 25462422453 79064464
Interest expenditures 4754960 4754960
Service charge and commission
expenditures
Surrender value
Net claims payment
Net insurance liability provisions accrued
Policy dividend expenditures
Reinsurance expenses
Taxes and levies 106853638 106853638
Selling expenses 330230062 330230062
Administrative expense 763004335 763004335
25TCL Technology Group Corporation First Quarter 2022 Report
R&D expenses 1540240528 1543062209 2821681
Financial expenses 740010321 740010321
Including: Interest expenses 966852847 966852847
Interest income 103593808 103593808
Plus: Other income 343452869 343452869
Return on investment (losses are indicated
493372758493372758
by "-")
Including: Share of profit or loss of joint
149003152149003152
ventures and associates
Income from derecognition of
financial assets measured at amortised costs
Exchange gains (losses are indicated by "-") -14384 -14384
Gain on net exposure hedging (losses are
-
indicated by "-")
Gain on changes in fair value (losses are
-292943771-292943771
indicated by "-")
Credit impairment losses (losses are
-31736912-31736912
indicated by "-")
Asset impairment losses (losses are
-301118508-301118508
indicated by "-")
Income from asset disposal (losses are
159503159503
indicated by "-")
III. Operating profit (losses are indicated by "-") 3516665580 3536151178 19485598
Plus: Non-operating income 210942953 210942953
Less: Non-operating expenses 4694406 4694406
IV. Gross profits (total losses are indicated by "-") 3722914127 3742399725 19485598
Less: Income tax expenses 487257128 490179967 2922839
V. Net profits (net losses are indicated by "-") 3235656999 3252219758 16562759
(1) Classification by business continuity
1. Net profits from continuing operations (net
3235656999325221975816562759
losses are indicated by "-")
2. Net profits from discontinued operations (net
--
losses are indicated by "-")
(2) Classification by ownership
1. Net profits attributable to the owners of the
240372993524105395276809592
parent company
2. Net profit attributable to non-controlling 831927064 841680231 9753167
26TCL Technology Group Corporation First Quarter 2022 Report
interests
VI. Other comprehensive income net of tax -180087886 -180087886 -
Other comprehensive income attributable to the
-151737311-151737311
owners of the parent company net of tax
(1) Other comprehensive income that will not be
-65621285-65621285-
reclassified to profit or loss
1. Changes arising from remeasurement
of defined benefit plans
2. Other comprehensive income that
cannot be subsequently reclassified into profits and -
losses under the equity method
3. Changes in fair value of other equity
-65621285-65621285
instrument investments
4. Changes in fair value of the
enterprise's own credit risks
5. Others
(2) Other comprehensive income that may
-86116026-86116026-
subsequently reclassified into profit and loss
1. Other comprehensive income that can
be transferred to profits and losses under the equity 11868 11868
method
2. Changes in fair value of other debt
investments
3. Amount of financial assets reclassified
into other comprehensive income
4. Provisions for credit impairment of
other debt investments
5. Reserves for cash flow hedging -75069636 -75069636
6. Conversion differences in foreign
-11058258-11058258
currency financial statements
7. Others -
Other net comprehensive income attributable to
-28350575-28350575
minority interests net of tax
VII. Total comprehensive income 3055569113 3072131872 16562759
Total comprehensive income attributable to the
225199262422588022166809592
owners of the parent company
Total comprehensive income attributable to
8035764898133296569753167
non-controlling interests
27TCL Technology Group Corporation First Quarter 2022 Report
VIII. Earnings per share:
(1) Basic earnings per share 0.1781 0.1786
(2) Diluted earnings per share 0.1713 0.1718
III. Auditor’s report
Whether the First Quarter 2022 Report has been audited or not?
□ Yes √ No
The Company’s First Quarter 2022 Report has not yet been audited.TCL Technology Group Corporation
Board of Directors
April 27 2022
28