TCL科技：2021年第一季度报告全文（英文版)

TCL 科技集团股份有限公司
TCL Technology Group Corporation
FIRST QUARTERLY REPORT 2021
27 April 2021
Part I Important Notes Table of Contents and Definitions
The Board of Directors (or the “Board”) the Supervisory Committee as well as the directors
supervisors and senior management of TCL Technology Group Corporation (hereinafter
referred to as the “Company”) hereby guarantee the factuality accuracy and completeness of
the contents of this Report and shall be jointly and severally liable for any misrepresentations
misleading statements or material omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report
and all the Company’s supervisors have attended the meeting of the Supervisory Committee
for the review of this Report
Mr. Li Dongsheng the Chairman of the Board Ms. Du Juan the person-in-charge of
financial affairs (Chief Financial Officer) and Mr. Xi Wenbo the person-in-charge of the
financial department hereby guarantee that the financial statements carried in this Report
are factual accurate and complete.This Report has been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions the Chinese version shall
prevail.
Table of Contents
Part I Important Notes Table of Contents and Definitions ......................................................... 2
Part II Key Corporate Information ............................................................................................. 4
Part III Directors’ Report ............................................................................................................. 9
Part IV Significant Events .......................................................................................................... 17
Part V Financial Statements ....................................................................................................... 26
Part II Key Corporate Information
I Key Financial Information
Indicate whether there is any retrospectively restated datum in the table below.□ Yes ■ No
Q1 2021 Q1 2020 Change (%)
Revenue (RMB) 32143561563 13742129162 133.91%
Net profit attributable to the company’s
shareholders (RMB)
2403729935 408125802 488.97%
Net profit attributable to the company’s
shareholders before non-recurring gains
and losses (RMB)
2123056041 -109881642 2032.13%
Net cash generated from/used in operating
activities (RMB)
8003201979 2299183493 248.09%
Basic earnings per share (RMB/share) 0.1781 0.0316 463.61%
Diluted earnings per share (RMB/share) 0.1713 0.0302 467.22%
Weighted average return on equity (%) 7.07% 1.35% 5.72%
31 March 2021 31 December 2020 Change (%)
Total assets (RMB) 274693487644 257908278887 6.51%
Owners’ equity attributable to the
company’s shareholders (RMB)
35224374002 34107795454 3.27%
The total share capital at the end of the last trading session before the disclosure of this Report:
Total share capital at the end of the last trading session before the
disclosure of this Report (share)
14030788362
Fully diluted earnings per share based on the latest total share
capital above (RMB/share)
0.1713
Non-recurring gains and losses:
Unit: RMB
Item Q1 2021 Note
Gain or loss on disposal of non-current assets (inclusive of
impairment allowance write-offs)
-14935921 Not applicable
Government subsidies charged to current profit or loss (exclusive
of government subsidies given in the Company’s ordinary course of
business at fixed quotas or amounts as per the government’s
uniform standards)
302185840 Not applicable
Gain or loss on fair-value changes in held-for-trading and
derivative financial assets and liabilities & investment income from
disposal of held-for-trading and derivative financial assets and
liabilities and other debt investments (exclusive of effective portion
of hedges that arise in the Company’s ordinary course of business)
25600678 Not applicable
Non-operating income and expense other than the above 113649860 Not applicable
Less: Corporate income tax 73184923 Not applicable
Non-controlling interests (net of tax) 72641640 Not applicable
Total 280673894 --
Explanation of why the Company reclassifies as recurrent a non-recurring gain/loss item defined or listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-Recurring Gain/Loss
Items:
□ Applicable ■ Not applicable
II Total Number of Shareholders and Holdings of Top 10 Shareholders at the End of the
Reporting Period
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of ordinary shareholders at
the period-end
570474
Number of preference shareholders
with resumed voting rights at the
period-end (if any)
-
Top 10 shareholders
Name of
shareholder
Nature of
shareholder
Shareholding
percentage
Total shares held
Restricted shares
held
Shares in pledge or frozen
Status Shares
Li Dongsheng
and his
acting-in-concert
party
Domestic natural
person/general
legal person
8.26% 1158599393 610181602
Put in pledge by
Li Dongsheng
144000000
Put in pledge by
Jiutian Liancheng
344899521
Huizhou
Investment
Holding Co. Ltd.State-owned legal
person
5.30% 743139840 - - -
Wuhan Optics
Valley Industrial
Investment Co.Ltd.State-owned legal
person
3.65% 511508951 511508951 - -
Hong Kong
Securities
Foreign legal
person
3.26% 457850083 - - -
Clearing
Company Ltd.
China Securities
Finance
Corporation
Limited
Domestic general
legal person
2.66% 373231553 - - -
Tibet Tianfeng
Enterprise
Management Co.Ltd.
Domestic general
legal person
1.76% 247284337 - - -
Fang Deji
Domestic natural
person
1.47% 206130576
Zhejiang Yiwu
Tanzhen
Investment
Management
Partnership
(Limited
Partnership)－
Loyal Valley
(Tanzhen) Value
China Exclusive
Private Securities
Investment Fund
Fund wealth
management
product etc.
1.03% 145169128
National Social
Security
Fund-Portfolio
601
Fund wealth
management
product etc.
0.93% 129785014 - - -
CITIC Securities
－CITIC Bank－
CITIC Securities
Dividend Value
One-Year Mixed
Collective Asset
Management Plan
Fund wealth
management
product etc.
0.58% 80906050 - - -
Top 10 unrestricted shareholders
Name of shareholder Unrestricted shares held at the period-end
Shares by type
Type Shares
Huizhou Investment Holding Co.Ltd.
743139840
RMB-denominate
d ordinary stock
743139840
Li Dongsheng and his 548417791 RMB-denominate 548417791
acting-in-concert party d ordinary stock
Hong Kong Securities Clearing
Company Ltd.
457850083
RMB-denominate
d ordinary stock
457850083
China Securities Finance
Corporation Limited
373231553
RMB-denominate
d ordinary stock
373231553
Tibet Tianfeng Enterprise
Management Co. Ltd.
247284337
RMB-denominate
d ordinary stock
247284337
Fang Deji 206130576
RMB-denominate
d ordinary stock
206130576
Zhejiang Yiwu Tanzhen Investment
Management Partnership (Limited
Partnership)－Loyal Valley
(Tanzhen) Value China Exclusive
Private Securities Investment Fund
145169128
RMB-denominate
d ordinary stock
145169128
National Social Security
Fund-Portfolio 601
129785014
RMB-denominate
d ordinary stock
129785014
CITIC Securities－CITIC Bank－
CITIC Securities Dividend Value
One-Year Mixed Collective Asset
Management Plan
80906050
RMB-denominate
d ordinary stock
80906050
Bank of Communications Co. Ltd.
－China Southern Growth Pioneer
Mixed Securities Investment Fund
77368741
RMB-denominate
d ordinary stock
77368741
Related or acting-in-concert parties
among the shareholders above
Being acting-in-concert parties upon the signing of the Agreement on Acting in Concert Mr.
Li Dongsheng and Xinjiang Jiutian Liancheng Equity Investment Partnership (Limited
Partnership) (hereinafter referred to as “Jiutian Liancheng”) are the biggest shareholder of the
Company with a total of 1158.5994 million shares.
Top 10 shareholders involved in
securities margin trading (if any)
Shareholders Fang Deji and Zhejiang Yiwu Tanzhen Investment Management Partnership
(Limited Partnership)－Loyal Valley (Tanzhen) Value China Exclusive Private Securities
Investment Fund held shares in the Company in margin accounts.Note: The top 10 shareholders in the table above do not include “The Securities Account of TCL Technology Group Corporation forRepurchases”. As of the end of the Reporting Period there were 484206763 shares in the account.Indicate whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conducted
any promissory repo during the Reporting Period.□ Yes ■ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable ■ Not applicable
Part III Directors’ Report
I. Overview
In the Reporting Period the rollout of the COVID-19 vaccine and the implementation of
relaxed policies contributed to the recovery of the global economy. However the adjustment of
relations among major countries continued to disturb the trade order increasing the instability of the
industrial chain and accelerating the differentiation and restructuring of the global economic
pattern. The manufacturing as a source of China's economic competitiveness and comparative
competitive advantage will usher in a new stage of development. In the face of the challenges andopportunities the Company continued its efforts in line with the spirit of “Ramping up Catching upand Going all out to be A Global Leader” the requirements of the "9205" strategic developmentplan and the operating strategy of “improving operating quality and profitability consolidatingadvantages and improving disadvantages accelerating global layout and driving development viainnovation” to promote the two core businesses namely the semi-conductor display business and
the semi-conductor photovoltaic and semi-conductor materials business to be global leading
industries.In the first quarter of 2021 the Company recorded a revenue of RMB32.144 billion up by
133.91% year-on-year; a net profit of RMB3.236 billion up by 10.96 times year-on-year; a net
profit attributable to the Company’s shareholders of RMB2.404 billion up by 488.97%
year-on-year. TCL CSOT and Zhonghuan Semiconductor had great performance in these two core
industries. The semi-conductor display industry had constant improvement in the competition
pattern and the supply and demand relationship resulting in the price rise; the new production line
is raising its mass production and the scale effect and market position are increasing product
portfolio in high-end market and medium-size products is expanded. TCL CSOT recorded a net
profit of RMB2.396 billion up by RMB2.57 billion year-on-year and by 29.12% quarter-on-quarter
including a quarter-on-quarter net profit increase of 52.96% from large-size products achieving
continuously leading efficiency and profitability. The main raw materials in the photovoltaic
industry continued to increase in price and the competition pattern tends to be more complex.
Zhonghuan Semiconductor redefined its corporate development strategy and reduced the costs
increased the capacity of existing equipment improved product quality and consistency and
reduced raw material consumption per unit of product through technological innovation and
improved manufacturing process. The total capacity of photovoltaic monocrystalline silicon product
reached 60GW two months ahead of schedule the market competitiveness market share and
profitability improved month by month. With continued global semiconductor shortage Zhonghuan
Semiconductor had accelerated growth in the business of raw materials used for power
semiconductor products. The 8-12-inch large silicon wafers project ramped up smoothly with a
revenue increase of c. 80% year-on-year. Zhonghuan Semiconductor achieved a net profit of
RMB743 million up by 100.0% year-over-year.
Looking into the rest of 2021 TCL CSOT and Zhonghuan Semiconductor will continue to
grow robustly. Phase I of the t7 production line in Shenzhen will reach design capacity this year. 60%
shares of Suzhou China Star Optoelectronics (t10) and 100% shares of Suzhou China Star Display
(M10) were acquired which will contribute to revenue of the Company from the second quarter of
2021; Moka International Limited will be included in the consolidated statements of the Company
from the second quarter of 2021; t9 production line in Guangzhou will be a new driving force in
medium-size field as the Board of Directors has approved it. Zhonghuan Semiconductor accelerated
construction of phase V monocrystalline silicon project in Inner Mongolia and Zhonghuan Phase
VI 50GW(G12) project in Yinchuan Ningxia Province was commenced as planned. In a new round
of pattern reshaping driven by technological innovation industrial ecosystem and ultimate
efficiency in the PV industry Zhonghuan Semiconductor stands out thanks to its accumulated
technological advantages. Through the G12 platform and overlapped-cell products’ technological
strength the ecological resources of the fast-growing industrial alliance and the first layout of
advantageous production capacity Zhonghuan Semiconductor is confident to complete the Double
Operating Profit Plan in 2021.
TCL Tech. will seize the golden period of global economic pattern adjustment and China's
manufacturing development and march forward to be a global industry leader with a stronger
driving force for development!
II. Core Business Analysis
The business structure of the Company primarily consists of the semi-conductor display
business the semi-conductor photovoltaic and semi-conductor materials business the industrial
finance and investment business as well as the other businesses. The Company will continue to
optimize its business structure and further focus its resources on the development of the two core
businesses and achieve the strategic goal of global leadership in the two core businesses namely
the semi-conductor display and the semi-conductor photovoltaic and semi-conductor materials.(I) Semi-conductor display business
The supply-demand relationship in the semi-conductor display industry was improved
industry consolidation was accelerated product prices continued to rise and the overall profitability
of the industry was enhanced. TCL CSOT continued to adhere to established strategies and
operating strategy held the business bottom line of maximizing cost efficiency continuously
improved management capabilities and control systems to consolidate the global industry
leadership in terms of efficiency and profitability. In the Reporting Period TCL CSOT recorded
a product sales area of 8.344 million square meters up by 17.5% year-on-year; a revenue of
RMB17.373 billion up by 90.0% year-on-year; and a net profit of RMB2.396 billion up by
RMB2.57 billion year-on-year or by 29.12% compared with Q4 2020.
The large-size panel business expanded its scale advantage further promoted its market
position and maintained leading efficiency and profitability in the world. t1 t2 and t6 plants
continued to operate at full capacity for strong sales. The t7 plant raised production as scheduled.The shipment of large-size products reached 7.9453 million square meters up by 15.5%
year-on-year. 12.8133 million pieces were shipped with a year-on-year increase of 7.57%. Sales
revenue was RMB12.072 billion rising by 94.9% year-on-year. Globally the Company rose to
second place in the ranking of market share in TV panels. Besides it was ranked first regarding the
market share in 55-inch products second in 32-inch 65-inch and 75-inch products. The shipment of
interactive whiteboards jumped to the top across the world. Market shares in commercial displays
such as rail transit products and splicing screen climbed swiftly.
For the small-size panel business close attention was paid to enhancement of technical
capacity and optimization of product and customer structures. In terms of the t3 LTPS
production line technical capacity was continuously enhanced product structure was diversified
and cooperation with strategic customers was deepened; the shipment of LTPS mobile panels took
fourth place globally the shipment of LTPS notebook panels was ranked second in the world with
continuous robust growth. The t4 production line of flexible AMOLED displays produced at full
capacity in Phase I. The flexible foldable screens grew due to the volume spike of new types
launched by brand customers. Breakthroughs in new customers will be made further as equipment
for Phases II and III are being moved in. In the Reporting Period due to the significant increase in
fixed costs driven by the expansion of new production lines and seasonal factors the performance
of small-size panel business slightly declined quarter on quarter and the Company actively
improved its operational benefits through product structure optimization and maximizing cost
reduction. In the Reporting Period the shipment of t3 and t4 reached 398700 square meters up by
81.2% year-on-year; 25.8972 million pieces were shipped with a year-on-year increase of 55.1%.
The revenue from the small-size panel business amounted to RMB5.30 billion increasing by 79.8%
year-on-year.The medium-sized panel business had fast improved comprehensive competitiveness and
became a new driving force for the growth of TCL CSOT. To grasp the market opportunities
brought by emerging application scenarios and demand of performance upgrade and to enhance
TCL CSOT's market share and competitive advantage in medium-sized displays the Company
rapidly implemented its medium-sized panel business strategy and completed its reserve in
technology product and customer and as a result successfully introduced multiple world famous
brands of high-end notebooks tablets and vehicle displays. Based on the existing products R&D
and customer base the 8.6 generation oxide semiconductor new display device production line (t9
plant) project was quickly built to expand capacity for the medium-sized product market and
customers further diversified the e-sports displays high-end notebooks tablets and vehicle
displays and commercial displays. The Company accelerated the upgrade from a global leader in
large-size display industry to a global leader in full-size display industry by leveraging its
advantages in low-power consumption high refresh rate wide color gamut and other technological
areas.Looking into the future the long-term prospects of the semi-conductor display industry
are promising TCL CSOT continued growth in scale and strengthened its efficiency
advantages. The concentration of LCD industry is improved and leading enterprises have
developed a significant industry barrier. TCL CSOT’s market share and competitive advantage will
continue to improve significantly over the next 12 quarters as the takeover of t10 plant is completed
the t7 plant continues its capacity ramp-up phases II and III of the t4 plant are accelerated and
construction of t9 plant starts. The Company will continuously optimize product and revenue
structures implement strategic layout of high-end products and enhance the scale and overall
competitiveness of full-size products to drive its sustainable and quality progress.(II) Semi-conductor photovoltaic and semi-conductor materials
The year 2021 marks the start of ownership reform of Zhonghuan Semiconductor. The
company updated the "9205" development strategic plan which clarifies the overall goal of
"global leading strategy for new energy materials and catching up strategy for semiconductor
materials" and accelerated the renewal of opeartions and improved organizational vitality
optimized industrial layout consolidated advantages and improved disadvantages and improved
operating quality and profitability. In the Reporting Period Zhonghuan Semiconductor accelerated
the
enhancement of G12 product technology and overlapped-cell modules technology barriers
and industrialization process expand the leading edge of silicon wafer for power semiconductor
products and accelerate the increase of the production capacity of silicon wafer for IC products. It
recorded a revenue of RMB7.46 billion up by 65.23% year-on-year; a net profit of RMB743
million up by 100.0% year-on-year.In terms of semi-conductor photovoltaic Zhonghuan Semiconductor grasped the golden
opportunity of industry development and accelerated the expansion from technology
leadership to advanced capacity scale leadership and industrial chain ecology leadership.
Focusing on the development and integration of two platform-level technologies namely G12
large-size silicon wafers and high-efficiency overlapped-cell modules and leveraging Industry
4.0 and lean intelligent manufacturing the company took advantage of product and
technology to enhance industrial competitiveness.In terms of photovoltaic materials the company's G12 monocrystalline silicon and silicon
wafers in the Reporting Period gradually highlighted its technical advantages product sales and
earnings grew month by month and the company's advanced production capacity entered a period
of rapid growth. Phase V crystal production capacity in Inner Mongolia's is climbing as scheduled;
following the start of operation of the DW-cut ultra-thin silicon wafer project in Tianjin for the
Inner Mongolia Zhonghuan Solar Phase II 25GW(G12) wafer project the first batch of process
equipment arrived at the plant and commissioning was completed at the end of February and this
project is expected to start production in April 2021 and reach design capacity within the year; the
construction of the 50GW(G12) intelligent factory project launched in Yinchuan started. In addition
through a new round of technical reform and manufacturing methods improvement Zhonghuan
Semiconductor economically increased the theoretical unit capacity of existing equipment and the
actual capacity during the Reporting Period which jointly facilitated the total monocrystalline PV
silicon capacity to be more than 60GW 2 months ahead of the original plan and effectively reduced
the unit investment cost of the company's advanced capacity.Moreover the technical reform and manufacturing methods improvement have effectively
improved product quality and consistency reduced raw material consumption per unit of product
and continuously reduced operating costs. As a result profits on the manufacturing side increased
by more than RMB155 million in the first quarter absorbing to some extent the impact of the price
increase of raw and auxiliary material during the Reporting Period. Relevant technological
innovation and the continued application of Industry 4.0 in the company's operation scenarios and
business processes will bring sustained contributions to the production and sales scale and operating
results in the PV materials segment throughout the year.In terms of photovoltaic cells and modules Zhonghuan Semiconductor continuously
performed R&D of module technology for the overlapped-cell 3.0 production line and PERC3.0
cell technology collaborated with domestically leading G12 PERC cell manufacturers in investing
resources for new technology R&D to improve the cost performance of overlapped-cell module
products and achieve the differentiating competitiveness of the final products. The capacity turned
5GW/year at the end of the Reporting Period. In the Reporting Period based on the intellectual
property rights and R&D capacities of MAXEON in IBC cells and components and overlapped-cell
modules the company further built up its manufacturing system of cells and components as well as
surface and distributed power stations worldwide and improved overseas industrial layout and
global supply chain system.In terms of semi-conductor materials business Zhonghuan Semi-conductor strengthened
product technology development and industrial capacity building and improved product
structure to meet the differentiating needs of strategic customers.In the Reporting Period benefiting from the inadequate supply in global and Chinese
semiconductor markets and the improvement of its competitiveness Zhonghuan Semiconductor
increased revenue from silicon wafers by c. 80% year-on-year. Dominated by 5-inch 6-inch and
8-inch silicon wafers for power semiconductor products the segment growth accelerated it was at a
leading position and had brand recognition in the domestic market in terms of production and sales
scale product diversity product quality and product certification speed; the production and sales
scale of the dominant 8-inch and 12-inch silicon wafers for IC products grew fast and verification
of strategic customers at home and abroad accelerated. The 8-12-inch large silicon wafer project for
integrated circuits in Yixing Jiangsu Province is raising capacity smoothly and a short supply
situation has occurred laying the market foundation for continued capacity release in 2021. By
actively expanding global marketing and service capabilities actively building market channel
networks in Europe Japan Taiwan and other regions where the semiconductor businesses cluster
creating technical support platforms and strengthening global system service capabilities
Zhonghuan Semiconductor achieved 30% overseas sales of materials business in the first quarter of
2021.
Looking into the rest of 2021 Zhonghuan Semiconductor will increase investment and asset
restructuring of Inner Mongolia base Tianjin base and Jiangsu base of Zhonghuan Advanced
orderly promote the coverage of the company’s products for power semiconductors chips and
integrated circuit chips of all kind; As the company maintains the domestic and global leadership of
Zhonghuan Advanced in power semi-conductor chips of all kinds it will further improve service
capability for customers with the advanced production process and to raise further the market share
in this area.(III) Industrial Finance and Investment Business
TCL Capital seeks investment opportunities in key fields of high-tech industries including
new display semi-conductor industry chain as well as key materials and process equipment. These
investments took a balanced approach to promote technology development and derive economic
benefits. By the end of the Reporting Period the AUM of TCL Capital exceeded RMB9 billion and
114 projects were invested cumulatively. Currently it holds the stake of CATL DKEM Cambricon
Newtouch Software Petro-king Oilfield ZJBC HyUnion Holding and other listed companies; as
for Admiralty Harbour Capital the investment banking and asset management business grew
steadily and it has issued and underwritten 9 bonds and 2 debt management projects. China
Innovative focused on industrial chain investment opportunities related to the Company’s two core
businesses and has invested in more than 110 listed companies cumulatively with a steady growth
in performance.In the Reporting Period the finance team focused on the funding needs of the Company’s key
projects strengthened the active management of liquidity and currency risk and gradually satisfied
financial needs of business globalization to support the core businesses of the Company to achieve
global leadership.
Part IV Significant Events
I Major Changes of Main Items in Financial Statements and Financial Indicators within the
Reporting Period as well as the Reasons for the Changes
Unit: RMB
Balance sheet items 31 March 2021 31 December 2020 Change (%) Reasons for the Changes
Derivative financial assets 219179859 453578245 -51.7
Decrease in derivatives
investments
Notes receivable 1052967190 595685338 76.8 Increase in revenue
Prepayments 1824063319 1355653454 34.6
Increase in prepayments to
suppliers
Other receivables 8465195129 2793640153 203.0
Increase in receivables in
relation to investments
Borrowings from central
bank
668442302 469834291 42.3
Increase in borrowings
received by TCL Tech
Finance Co. Ltd. from the
central bank
Held-for-trading financial
liabilities
1368835184 527901041 159.3
Increase in financial
products
Derivative financial
liabilities
174841937 384903731 -54.6
Decrease in derivatives
investments
Taxes and levies payable 979478482 670058792 46.2 Increase in earnings
Long-term payables 565351943 1280299665 -55.8
Effect of the new accounting
standard governing leases
Other comprehensive
income
-297310404 -145573093 -104.2
Foreign currency translation
differences
Income statement items Q1 2021 Q1 2020 Change (%) Reasons for the Changes
Revenue 32143561563 13742129162 133.9
Increase in revenue and
consolidation of Zhonghuan
Electronics
Cost of sales 25383357989 12743745923 99.2
Increase in revenue and
consolidation of Zhonghuan
Electronics
Taxes and levies 106853638 38902775 174.7
Increase in earnings and
consolidation of Zhonghuan
Electronics
Selling expense 330230062 159592940 106.9
Increase in revenue and
consolidation of Zhonghuan
Electronics
Administrative expense 763004335 321790541 137.1
Increase in business and
consolidation of Zhonghuan
Electronics
R&D expense 1540240528 837453524 83.9
Increase in R&D
investments and
consolidation of Zhonghuan
Electronics
Finance costs 740010321 384913273 92.3
Increase in financings and
consolidation of Zhonghuan
Electronics
Other income 343452869 620518501 -44.7
Decrease in government
subsidies
Gain on changes in fair
value
-292943771 -205634246 -42.5
Changes in the fair value of
derivatives
Credit impairment loss
( “-” for loss)
-31736912 -7478551 324.4
Increase in impairment loss
on loans and advances to
customers
Income tax expense 487257128 25846940 1785.2
Increase in operating profit
and consolidation of
Zhonghuan Electronics
Net profit attributable to
non-controlling interests
831927064 -137547929 704.8
Increase in net profit and
consolidation of Zhonghuan
Electronics
Cash flow statement items Q1 2021 Q1 2020 Change (%) Reasons for the Changes
Net cash generated
from/used in operating
activities
8003201979 2299183493 248.1
Increase in revenue and
consolidation of Zhonghuan
Electronics
Net cash generated
from/used in financing
activities
2657860614 7670463871 -65.3
Loan repayment and
increase in the interest in
Zhonghuan Semiconductor
in the Reporting Period
II Progress Influence and Solutions with regard to Significant Events
Summary of the significant event Disclosure date Index to the related announcement
Announcement on the Completion of the
Non-Deal Transfer under the Third Global
Partner Plan
22 January 2021
http://www.cninfo.com
Voluntary Announcement on the Increase
in the Interest in Tianjin Printronics Circuit
4 February 2021
Corporation
Announcement on the Progress on the
Acquisition of a 60% Interest in Samsung
Suzhou LCD Co. Ltd. and the 100%
Interest in Samsung Display Suzhou Co.Ltd.
8 February 2021
Voluntary Announcement on the Increase
in the Interest in Tianjin Printronics Circuit
Corporation
17 March 2021
Voluntary Announcement on the Increase
in the Interest in Tianjin Zhonghuan
Semiconductor Co. Ltd.
18 March 2021
Progress of any share repurchase:
□ Applicable ■ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable ■ Not applicable
III Commitments that the Company’s Actual Controller Shareholders Related Parties
Acquirers the Company Itself or Other Parties Failed to Fulfill on Time during the
Reporting Period
□ Applicable ■ Not applicable
IV Financial Investments
1. Securities Investments
Unit: RMB’0000
Securit
y type
Secu
rity
code
Security
name
Initial
investment
cost
Measu
remen
t
metho
d
Beginning
carrying
amount
Gain/loss
on
fair-value
changes in
the
Reporting
Period
Cumulati
ve
fair-valu
e
changes
recorded
in equity
Purchased
in the
Reporting
Period
Sold in the
Reporting
Period
Gain/los
s in the
Reportin
g Period
Ending
carrying
amount
Account
ing title
Fundin
g
source
Bank’s
wealth
manage
ment
product
Not
appli
cable
Sea Gull
Collective
Capital
Trust Plan
No. 2
20000
Fair
value
- 260 - 20000 - 260 20260
Held-for
-trading
financia
l assets
Self-fu
nded
Convert
ible
Not
appli
Convertible
bonds of
115077
Fair
value
- - - 115077 103005 1046 12072
Held-for
-trading
Self-fu
nded
bonds cable Bank of
Shanghai
financia
l assets
Stock
0860.HK
Apollo 24336
Fair
value
17847 - -12801 - - - 11637
Investm
ents in
other
equity
instrum
ents
Self-fu
nded
Tier 2
capital
debt
Not
appli
cable
20 China
CITIC
Bank Tier 2
10000
Amort
ized
cost
10148 - - - - 95 10244
Debt
investm
ents
Self-fu
nded
Asset
manage
ment
plan
Not
appli
cable
Yuanheng
FOF Single
Asset
Manageme
nt Plan No.
1
10000
Fair
value
10040 89 - - - 89 10129
Held-for
-trading
financia
l assets
Self-fu
nded
Bonds
USG
9T27
HA
D62
Vedanta
Resources
8337
Fair
value
- -213 - 8337 - -213 8251
Held-for
-trading
financia
l assets
Self-fu
nded
Bonds
XS2
2939
1828
5
Easy Tactic
Ltd
7890
Fair
value
- 272 - 7890 - 272 8221
Held-for
-trading
financia
l assets
Self-fu
nded
Bonds
USG
9328
DA
M23
Vedanta
Resources
Ltd
7541
Fair
value
- 45 - 7541 - 302 7641
Held-for
-trading
financia
l assets
Self-fu
nded
Bonds
US7
1654
QCG
55
Petroleos
Mexicanos
6677
Fair
value
7019 -165 - - - 46 6902
Held-for
-trading
financia
l assets
Self-fu
nded
Bonds
XS1
6426
8667
6
Softbank
Group Corp
6969
Fair
value
6704 41 - - - 265 6793
Held-for
-trading
financia
l assets
Self-fu
nded
Other securities
investments held at the
period-end
585818 -- 499197 -19391 6841 112409 333493 1321 305524 - --
Total 802646 -- 550954 -19060 -549 271254 436498 3484 407673 -- --
Disclosure date of the
board announcement
approving the securities
12 December 2020
investments
Disclosure date of the
general meeting
announcement
approving the securities
investments (if any)
29 December 2020
2. Investments in Derivative Financial Instruments
Funding source Mostly foreign-currency revenue
Legal matters involved (if
applicable)
Not applicable
Disclosure date of the board
announcement approving the
derivative investments (if any)
28 April 2018
Analysis of risks and control
measures associated with
derivative investments held in
Reporting Period (including but
not limited to market risk
liquidity risk credit risk
operational risk legal risk etc.)
In order to effectively manage the exchange and interest rate risks of foreign currency assets
liabilities and cash flows the Company after fully analyzing the market trend and predicting the
operation (including orders and capital plans) adopts forward foreign exchange contracts options
and interest rate swaps to avoid future exchange rate and interest rate risks. As its business scale
changes subsequently the Company will adjust the exchange rate risk management strategy
according to the actual market conditions and business plans.Risk analysis:
1. Market risk: the financial derivatives business carried out by the Group belongs to hedging and
trading business related to main business operations and there is a market risk of loss due to the
fluctuation of underlying interest and exchange rates which lead to the fluctuation of prices of
financial derivatives;
2. Liquidity risk: the derivatives business carried out by the Group is an over-the-counter
transaction operated by a financial institution and there is a risk of loss due to paying fees to the
bank for the operations of evening up or selling the derivatives below the buying prices;
3. Performance risk: the Group conducts the derivative business based on rolling budgets for risk
management and there is a risk of performance failure due to deviation between the actual
operating results and budgets;
4. Other risks: in the case of specific business operations if the operator fails to finish the
prescribed procedures for report or approval or fails to record the financial derivative business
information accurately timely and completely it may result in loss of derivative business or
trading opportunities. Moreover if the trading operator fails to fully understand the terms of
transaction contracts or product information the Group will face the legal risks and transaction
losses therefrom.Measures taken for risk control:
1. Basic management principles: the Group strictly follows the hedging principle and the main
purpose of locking costs and avoiding risks. It is required that the financial derivatives business to
be carried out matches the variety size direction and duration of spot goods and no speculative
trading should be involved. In the selection of hedging instruments only simple financial
derivatives that are closely related to the main business operation and meet the requirements of
hedge accounting treatment should be selected and avoid complex business that exceeds the
prescribed business scope or is difficult to recognize in terms of risk and pricing;
2. The Group has formulated a special risk management system tailored to the risk characteristics
of the financial derivatives business covering all key aspects such as pre-emptive prevention
in-process monitoring and post-processing. Professional personnel are rationally arranged for
investment decision-making business operations and risk control. Investment participants are
required to fully understand the risks of financial derivatives investment and strictly implement
the business operations and risk management systems of derivatives. Before starting the
derivatives business the holding company must submit to the management department of the
Group detailed business reports including its internal approval main product terms operational
necessity preparations risk analysis risk management strategy fair value analysis and accounting
methods and special summary reports on business operated. Operations can be implemented only
after getting opinions from the professional department of the Group;
3. Relevant departments should track the changes in the open market price or fair value of
financial derivatives timely assess the risk exposure changes of invested financial derivatives and
make reports to the board of directors on business development;
4. When the combined impairment of the fair value of derivatives and changes in the value of the
assets (if any) used for risk hedging by the Group results in a total loss or floating loss amounting
to 10% of the recently audited net assets of the Company and the absolute amount exceeds
RMB10 million the Group will disclose it in a timely manner.
Changes in market prices or fair
value of derivative investments in
Reporting Period (fair value
analysis should include
measurement method and related
assumptions and parameters)
With the rapid expansion of overseas sales the Company keeps following the above rules in the
operation of forward foreign exchange contracts interest rate swap contracts and futures contracts
to avoid and hedge foreign exchange risks arising from operation and financing. It saw a net gain
of RMB91.02 million for the Reporting Period. The fair value of derivatives is determined by
real-time quoted price of the foreign exchange market based on the difference between the
contractual price and the forward exchange rate quoted immediately in the foreign exchange
market on the balance sheet date.Major changes in accounting
policies and specific accounting
principles adopted for derivative
investments in Reporting Period
compared to last reporting period
No significant change
Opinion of independent directors
on derivative investments and
risk control
In view of the fact that certain raw materials of the core business of the Company are purchased
overseas a wide range of settlement currencies is involved. The Company reduces exchange
losses and locks transaction costs by reasonable financial derivatives which helps to reduce risk
control costs and improve company competitiveness. Risks are effectively controlled as the
Company has taken series of measures such as conducting a rigorous internal evaluation for the
operation of financial derivatives business establishing a corresponding regulatory mechanism
formulating reasonable accounting policies and specific accounting principles setting limits for
risk exposure management and operating simple financial derivatives. The contracting agent for
financial derivatives business of the Company is a sound financial agent with good credit
standing. The financial derivatives transactions carried out by the Company in Q1 2021 are
closely related to the daily operation needs of the Company with controllable risks. The business
is in line with the interests of minority shareholders of the company and the relevant laws and
regulations.Positions of derivative investments at the period-end:
Unit: RMB’0000
Type of contract
Beginning amount Ending amount
Gain/loss
in
Reporting
Period
Ending contractual amount
as % of the Company’s ending
net assets
Contractual
amount
Actual
amount
Contractual
amount
Actual
amount
Contractual
amount
Actual
amount
1. Forward forex contracts 1931617 59359 1627130 54962
9102
17.75 0.60
2. Interest rate swaps 758846 22765 764242 22927 8.34 0.25
3. Currency swaps 310520 15526 98570 4928 1.08 0.05
Total 3000983 97650 2489942 82818 9102 27.17 0.90
V Progress of Projects Financed with Raised Funds
In 2020 the Company carried out a program of asset purchase via share and convertible corporate
bonds offering and cash payment and matching funds raising with the total raised funds amounting
to RMB2.6 billion. The raised funds would be used to pay the cash consideration for the acquisition
of a 39.95% interest held by Wuhan Industrial Investment in Wuhan CSOT repay debt and
supplement the working capital. As of 10 March 2021 the raised funds had been used up. For
further information please refer to the Announcement on Using up of the Funds Raised via Share
and Convertible Corporate Bonds Offering for Asset Purchase and Raising the Matching Funds
disclosed by the Company on the media designated for information disclosure.VI Operating Performance Forecast for H1 2021
Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of H1 2021 as well as explanation of
why:
□ Applicable ■ Not applicable
VII Significant Contracts Arising from the Company’s Ordinary Course of Business
□ Applicable ■ Not applicable
VIII Cash Entrusted for Wealth Management
Unit: RMB’0000
Type Funding source Amount Undue amount Unrecovered overdue amount
Bank’s wealth
management product
Self-funded 200033.30 33.30 -
Securities firm’s wealth
management product
Self-funded 26000.00 16000.00 -
Trust plan Self-funded 20000.00 20000.00 -
Other Self-funded 185557.43 52552.23 -
Total 431590.73 88585.53 -
High-risk wealth management transactions with a significant single amount low liquidity and no principal protection:
□ Applicable ■ Not applicable
Situation where the principal is expectedly irrecoverable or an impairment may be incurred:
□ Applicable ■ Not applicable
IX Irregularities in the Provision of Guarantees
□ Applicable ■ Not applicable
X Occupation of the Company’s Capital by the Controlling Shareholder or any of Its Related
Parties for Non-Operating Purposes
□ Applicable ■ Not applicable
XI Communications with the Investment Community such as Researches Inquiries and
Interviews Received during the Reporting Period
Date Place
Way of
communication
Type of
communication
party
Communication
party
Main
discussions and
materials
provided
Index to main
information
communicated
11 March 2021
The Ritz-Carlton
Beijing
Financial Street
By visit and
phone
Institution
JPMorgan
Morgan Stanley
Foresight Fund
Management
Inquired about
the 2020
performance and
development
Log Sheet No.
2021-001 on Investor
Relations Activities
disclosed by the
Company
TruValue Asset
Management
China Life
Pension
Company
Limited
Tianhong Asset
Management
Dajia Asset
Management
Taikang Asset
Management
TianAn Life etc.planning of TCL
Tech.
Company on
http://www.cninfo.com.cn dated 15 March
2021
Part V Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by TCL Technology Group Corporation
Unit: RMB
Item 31 March 2021 31 December 2020
Current assets:
Monetary assets 21866755914.00 21708904743.00
Settlement reserve
Loans to other banks and financial
institutions
Held-for-trading financial assets 3802869673.00 5300045879.00
Derivative financial assets 219179859.00 453578245.00
Notes receivable 1052967190.00 595685338.00
Accounts receivable 15672609886.00 12557614486.00
Receivables financing 1608178118.00 2176743646.00
Prepayments 1824063319.00 1355653454.00
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 8465195129.00 2793640153.00
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 8882549680.00 8834957692.00
Contract assets 199410288.00 183650278.00
Assets held for sale 256938591.00 360935948.00
Current portion of non-current assets 63050115.00
Other current assets 8952314761.00 9367055433.00
Total current assets 72866082523.00 65688465295.00
Non-current assets:
Loans and advances to customers 997789579.00 981876228.00
Debt investments 119904974.00 119349896.00
Other debt investments 154543851.00 152062601.00
Long-term receivables 699379064.00 778889309.00
Long-term equity investments 24340787935.00 24047036004.00
Investments in other equity
instruments
1267383678.00 1333675630.00
Other non-current financial assets 3014285378.00 3055595097.00
Investment property 1708552761.00 1664201130.00
Fixed assets 94224678564.00 92829901894.00
Construction in progress 36900616376.00 31508310783.00
Productive living assets
Oil and gas assets
Right-of-use assets 1836520444.00
Intangible assets 11559900467.00 10054045032.00
Development costs 1664984199.00 2103994558.00
Goodwill 6943264794.00 6943264794.00
Long-term prepaid expense 2380306309.00 2536670015.00
Deferred income tax assets 1387256553.00 1578087991.00
Other non-current assets 12627250195.00 12532852630.00
Total non-current assets 201827405121.00 192219813592.00
Total assets 274693487644.00 257908278887.00
Current liabilities:
Short-term borrowings 13915672147.00 12263713979.00
Borrowings from the central bank 668442302.00 469834291.00
Loans from other banks and financial
institutions
Held-for-trading financial liabilities 1368835184.00 527901041.00
Derivative financial liabilities 174841937.00 384903731.00
Notes payable 6053247077.00 4725611752.00
Accounts payable 20590854151.00 16468931544.00
Advances from customers 62773331.00 78597459.00
Contract liabilities 2113158334.00 2004004181.00
Financial assets sold under 50080208.00 50080208.00
repurchase agreements
Customer deposits and deposits from
other banks and financial institutions
3583649744.00 2850138744.00
Payables for acting trading of
securities
Payables for underwriting of
securities
Employee benefits payable 1769080325.00 1856664146.00
Taxes and levies payable 979478482.00 670058792.00
Other payables 17390694070.00 14869433359.00
Including: Interest payable
Dividends payable 1293099.00 1293097.00
Fees and commissions payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities
12468897969.00 13429669611.00
Other current liabilities 336370951.00 366970706.00
Total current liabilities 81526076212.00 71016513544.00
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 78353685147.00 73589403308.00
Bonds payable 18094160624.00 18040772610.00
Including: Preference shares
Perpetual bonds
Lease liabilities 903293868.00
Long-term payables 565351943.00 1280299665.00
Long-term employee benefits
payable
27669191.00 27857583.00
Provisions
Deferred income 1208873737.00 1509867357.00
Deferred income tax liabilities 2364772001.00 2386496733.00
Other non-current liabilities
Total non-current liabilities 101517806511.00 96834697256.00
Total liabilities 183043882723.00 167851210800.00
Owners’ equity:
Share capital 14030788362.00 14030788362.00
Other equity instruments 230240606.00 230240606.00
Including: Preference shares
Perpetual bonds
Capital reserves 4201713830.00 5442384608.00
Less: Treasury stock 1799696760.00 1913028859.00
Other comprehensive income -297310404.00 -145573093.00
Specific reserve 309346.00 211932.00
Surplus reserves 2452892102.00 2452892102.00
General reserve 360767.00 385534.00
Retained earnings 16405076153.00 14009494262.00
Total equity attributable to owners of
the Company as the parent
35224374002.00 34107795454.00
Non-controlling interests 56425230919.00 55949272633.00
Total owners’ equity 91649604921.00 90057068087.00
Total liabilities and owners’ equity 274693487644.00 257908278887.00
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Du Juan
Person-in-charge of the financial department: Xi Wenbo
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 March 2021 31 December 2020
Current assets:
Monetary assets 4673557233.00 2208790335.00
Held-for-trading financial assets 494026692.00 1221656698.00
Derivative financial assets 2850000.00
Notes receivable 6000000.00 6000000.00
Accounts receivable 242732754.00 175787300.00
Receivables financing
Prepayments 6814091.00 97962630.00
Other receivables 25785861592.00 25555923615.00
Including: Interest receivable
Dividends receivable
Inventories 889550.00 5997388.00
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 2332646.00 2332646.00
Total current assets 31215064558.00 29274450612.00
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 65369362149.00 65094459376.00
Investments in other equity
instruments
15000000.00 15000000.00
Other non-current financial assets 1275592020.00 1145021734.00
Investment property 87699827.00 88686986.00
Fixed assets 46296612.00 46011508.00
Construction in progress 5957827.00 11440567.00
Productive living assets
Oil and gas assets
Right-of-use assets 469533606.00
Intangible assets 53510468.00 42310680.00
Development costs
Goodwill
Long-term prepaid expense 32119285.00 469424698.00
Deferred income tax assets 2866.00 6709.00
Other non-current assets
Total non-current assets 67355074660.00 66912362258.00
Total assets 98570139218.00 96186812870.00
Current liabilities:
Short-term borrowings 4583581361.00 3670230653.00
Held-for-trading financial liabilities
Derivative financial liabilities 16513000.00
Notes payable
Accounts payable 242589681.00 129703459.00
Advances from customers 626347.00
Contract liabilities 1871994.00
Employee benefits payable 204396873.00 220510234.00
Taxes and levies payable 7914959.00 26070786.00
Other payables 27194760921.00 26377023713.00
Including: Interest payable
Dividends payable 1292429.00 1292429.00
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities
5216364309.00 6141029463.00
Other current liabilities 1323541.00 315970.00
Total current liabilities 37451557992.00 36583269272.00
Non-current liabilities:
Long-term borrowings 13353000000.00 12087500000.00
Bonds payable 14130272528.00 14092345084.00
Including: Preference shares
Perpetual bonds
Lease liabilities 22890284.00
Long-term payables
Long-term employee benefits
payable
21801770.00 21991372.00
Provisions
Deferred income 41864052.00 42651822.00
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 27569828634.00 26244488278.00
Total liabilities 65021386626.00 62827757550.00
Owners’ equity:
Share capital 14030788362.00 14030788362.00
Other equity instruments 230240606.00 230240606.00
Including: Preference shares
Perpetual bonds
Capital reserves 9847091192.00 9846835060.00
Less: Treasury stock 1799696760.00 1913028859.00
Other comprehensive income 141998219.00 141998219.00
Specific reserve
Surplus reserves 2250827663.00 2250827663.00
Retained earnings 8847503310.00 8771394269.00
Total owners’ equity 33548752592.00 33359055320.00
Total liabilities and owners’ equity 98570139218.00 96186812870.00
3. Consolidated Income Statement
Unit: RMB
Item Q1 2021 Q1 2020
1. Total revenues 32173945858.00 13789536228.00
Including: Revenue 32143561563.00 13742129162.00
Interest income 30384295.00 47407066.00
Insurance premium income
Fee and commission
income
2. Costs and expenses 28868451833.00 14493594692.00
Including: Cost of sales 25383357989.00 12743745923.00
Interest expense 4754960.00 7195716.00
Fee and commission
expense
Surrenders
Net insurance claims paid
Net amount provided as
insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
expense
Taxes and levies 106853638.00 38902775.00
Selling expense 330230062.00 159592940.00
Administrative expense 763004335.00 321790541.00
R&D expense 1540240528.00 837453524.00
Finance costs 740010321.00 384913273.00
Including: Interest
expense
966852847.00 553121614.00
Interest
income
103593808.00 162367782.00
Add: Other income 343452869.00 620518501.00
Return on investment (“-” for loss) 493372758.00 694268712.00
Including: Share of profit or loss
of joint ventures and associates
149003152.00 300625432.00
Income from the
derecognition of financial assets at
amortized cost
Exchange gain (“-” for loss) -14384.00 182919.00
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
for loss)
-292943771.00 -205634246.00
Credit impairment loss (“-” for
loss)
-31736912.00 -7478551.00
Asset impairment loss (“-” for loss) -301118508.00 -232590984.00
Asset disposal income (“-” for
loss)
159503.00 6658.00
3. Operating profit (“-” for loss) 3516665580.00 165214545.00
Add: Non-operating income 210942953.00 141925394.00
Less: Non-operating expense 4694406.00 10715126.00
4. Gross profit (“-” for loss) 3722914127.00 296424813.00
Less: Income tax expense 487257128.00 25846940.00
5. Net profit (“-” for net loss) 3235656999.00 270577873.00
5.1 By operating continuity
5.1.1 Net profit from continuing
operations (“-” for net loss)
3235656999.00 270577873.00
5.1.2 Net profit from discontinued
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
owners of the Company as the parent
2403729935.00 408125802.00
5.2.1 Net profit attributable to
non-controlling interests
831927064.00 -137547929.00
6. Other comprehensive income net of
tax
-180087886.00 -201191608.00
Attributable to owners of the Company
as the parent
-151737311.00 -135977236.00
6.1 Items that will not be
reclassified to profit or loss
-65621285.00 -24540407.00
6.1.1 Changes caused by
remeasurements on defined benefit
schemes
6.1.2 Other comprehensive
income that will not be reclassified to
profit or loss under the equity method
6.1.3 Changes in the fair value of
investments in other equity instruments
-65621285.00 -24540407.00
6.1.4 Changes in the fair value
arising from changes in own credit risk
6.1.5 Other
6.2 Items that will be reclassified to
profit or loss
-86116026.00 -111436829.00
6.2.1 Other comprehensive
income that will be reclassified to profit
or loss under the equity method
11868.00 8800657.00
6.2.2 Changes in the fair value of
other debt investments
6.2.3 Other comprehensive
income arising from the reclassification
of financial assets
6.2.4 Credit impairment
allowance for other debt investments
6.2.5 Reserve for cash flow
hedges
-75069636.00 -31380198.00
6.2.6 Differences arising from the
translation of foreign
currency-denominated financial
statements
-11058258.00 -88857288.00
6.2.7 Other
Attributable to non-controlling
interests
-28350575.00 -65214372.00
7. Total comprehensive income 3055569113.00 69386265.00
Attributable to owners of the Company
as the parent
2251992624.00 272148566.00
Attributable to non-controlling
interests
803576489.00 -202762301.00
8. Earnings per share
8.1 Basic earnings per share 0.1781 0.0316
8.2 Diluted earnings per share 0.1713 0.0302
Legal representative: Li Dongsheng Person-in-charge of financial affairs: Du Juan
Person-in-charge of the financial department: Xi Wenbo
4. Income Statement of the Company as the Parent
Unit: RMB
Item Q1 2021 Q1 2020
1. Revenue 307619705.00 277992615.00
Less: Cost of sales 229164379.00 186288369.00
Taxes and levies 3547225.00 884082.00
Selling expense 4863172.00 5539685.00
Administrative expense 71791383.00 44402485.00
R&D expense 32899759.00 22086746.00
Finance costs 401851331.00 269483384.00
Including: Interest expense 583166671.00 403477889.00
Interest income 205588588.00 134103744.00
Add: Other income 1756844.00 4807000.00
Return on investment (“-” for
loss)
294992985.00 899034332.00
Including: Share of profit or
loss of joint ventures and associates
270571871.00 265646202.00
Income from the
derecognition of financial assets at
amortized cost (“-” for loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
for loss)
9486419.00 81456431.00
Credit impairment loss (“-” for
loss)
15695.00 995.00
Asset impairment loss (“-” for
loss)
Asset disposal income (“-” for
loss)
2. Operating profit (“-” for loss) -130245601.00 734606622.00
Add: Non-operating income 206621894.00 139294872.00
Less: Non-operating expense 251617.00 7636.00
3. Gross profit (“-” for loss) 76124676.00 873893858.00
Less: Income tax expense 3843.00
4. Net profit (“-” for net loss) 76120833.00 873893858.00
4.1 Net profit from continuing
operations (“-” for net loss)
76120833.00 873893858.00
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income net of
tax
5.1 Items that will not be reclassified
to profit or loss
5.1.1 Changes caused by
remeasurements on defined benefit
schemes
5.1.2 Other comprehensive income
that will not be reclassified to profit or
loss under the equity method
5.1.3 Changes in the fair value of
investments in other equity instruments
5.1.4 Changes in the fair value
arising from changes in own credit risk
5.1.5 Other
5.2 Items that will be reclassified to
profit or loss
5.2.1 Other comprehensive income
that will be reclassified to profit or loss
under the equity method
5.2.2 Changes in the fair value of
other debt investments
5.2.3 Other comprehensive income
arising from the reclassification of
financial assets
5.2.4 Credit impairment allowance
for other debt investments
5.2.5 Reserve for cash flow hedges
5.2.6 Differences arising from the
translation of foreign
currency-denominated financial
statements
5.2.7 Other
6. Total comprehensive income 76120833.00 873893858.00
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item Q1 2021 Q1 2020
1. Cash flows from operating activities:
Proceeds from sale of commodities
and rendering of services
27034723608.00 14850100323.00
Net increase in customer deposits and
deposits from other banks and financial
institutions
733511000.00 -465489884.00
Net increase in borrowings from the
central bank
198608011.00 168685969.00
Net increase in loans from other
financial institutions
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Interest fees and commissions
received
30384295.00 47407066.00
Net increase in loans from other
banks and financial institutions
Net increase in proceeds from
repurchase transactions
Net proceeds from acting trading of
securities
Tax and levy rebates 1394337857.00 608001845.00
Cash generated from other operating
activities
1171334830.00 467981716.00
Subtotal of cash generated from
operating activities
30562899601.00 15676687035.00
Payments for commodities and
services
17145704624.00 11369283220.00
Net increase in loans and advances to
customers
1013946603.00 -1555006243.00
Net increase in deposits in the central
bank and other banks and financial
institutions
68720062.00 -202132448.00
Payments for claims on original
insurance contracts
Net increase in loans to other banks
and financial institutions
Interest fees and commissions paid
Policy dividends paid
Cash paid to and for employees 2018238456.00 1589132206.00
Taxes and levies paid 582590307.00 844676500.00
Cash used in other operating
activities
1730497570.00 1331550307.00
Subtotal of cash used in operating
activities
22559697622.00 13377503542.00
Net cash generated from/used in
operating activities
8003201979.00 2299183493.00
2. Cash flows from investing activities:
Proceeds from disinvestment 6373430027.00 4618844632.00
Return on investment 125899457.00 76434103.00
Net proceeds from the disposal of
fixed assets intangible assets and other
long-lived assets
18531879.00 23052.00
Net proceeds from the disposal of
subsidiaries and other business units
197487161.00
Cash generated from other investing
activities
6368912.00
Subtotal of cash generated from
investing activities
6524230275.00 4892788948.00
Payments for the acquisition of fixed
assets intangible assets and other
long-lived assets
7543249643.00 4982864051.00
Payments for investments 9287433997.00 9033187658.00
Net increase in pledged loans granted
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing
activities
50133413.00
Subtotal of cash used in investing
activities
16880817053.00 14016051709.00
Net cash generated from/used in
investing activities
-10356586778.00 -9123262761.00
3. Cash flows from financing activities:
Capital contributions received 94900000.00 2260200000.00
Including: Capital contributions by
non-controlling interests to subsidiaries
94900000.00 2260200000.00
Borrowings received 16219912408.00 13646741209.00
Cash generated from other financing
activities
151949228.00
Subtotal of cash generated from
financing activities
16466761636.00 15906941209.00
Repayment of borrowings 10706121604.00 7266785974.00
Interest and dividends paid 1209556374.00 640411211.00
Including: Dividends paid by
subsidiaries to non-controlling interests
23055560.00 26392667.00
Cash used in other financing
activities
1893223044.00 329280153.00
Subtotal of cash used in financing
activities
13808901022.00 8236477338.00
Net cash generated from/used in
financing activities
2657860614.00 7670463871.00
4. Effect of foreign exchange rates
changes on cash and cash equivalents
57381895.00 -26758509.00
5. Net increase in cash and cash
equivalents
361857710.00 819626094.00
Add: Cash and cash equivalents
beginning of the period
18208416780.00 17637742929.00
6. Cash and cash equivalents end of the
period
18570274490.00 18457369023.00
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item Q1 2021 Q1 2020
1. Cash flows from operating activities:
Proceeds from sale of commodities
and rendering of services
332453923.00 189757308.00
Tax and levy rebates
Cash generated from other operating
activities
1412864320.00 8341488901.00
Subtotal of cash generated from
operating activities
1745318243.00 8531246209.00
Payments for commodities and
services
229201172.00 185587256.00
Cash paid to and for employees 52067664.00 56588057.00
Taxes and levies paid 30416907.00 8220063.00
Cash used in other operating
activities
458037058.00 316261198.00
Subtotal of cash used in operating
activities
769722801.00 566656574.00
Net cash generated from/used in
operating activities
975595442.00 7964589635.00
2. Cash flows from investing activities:
Proceeds from disinvestment 1937957138.00 1365307500.00
Return on investment 45986638.00 11669831.00
Net proceeds from the disposal of
fixed assets intangible assets and other
long-lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
investing activities
1983943776.00 1376977331.00
Payments for the acquisition of fixed
assets intangible assets and other
long-lived assets
12604273.00 5391188.00
Payments for investments 1376585400.00 1969900000.00
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
activities
1389189673.00 1975291188.00
Net cash generated from/used in
investing activities
594754103.00 -598313857.00
3. Cash flows from financing activities:
Capital contributions received
Borrowings received 6549800000.00 8612000000.00
Cash generated from other financing
activities
Subtotal of cash generated from
financing activities
6549800000.00 8612000000.00
Repayment of borrowings 5326842000.00 4272903033.00
Interest and dividends paid 317432328.00 168428437.00
Cash used in other financing 13813143.00 1332082.00
activities
Subtotal of cash used in financing
activities
5658087471.00 4442663552.00
Net cash generated from/used in
financing activities
891712529.00 4169336448.00
4. Effect of foreign exchange rates
changes on cash and cash equivalents
-18184949.00 -3131768.00
5. Net increase in cash and cash
equivalents
2443877125.00 11532480458.00
Add: Cash and cash equivalents
beginning of the period
2196283414.00 3941090221.00
6. Cash and cash equivalents end of the
period
4640160539.00 15473570679.00
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year (2021) of the New
Accounting Standard Governing Leases
The Company is required to fill the table below if it first adopted the new accounting standard governing leases in 2021 unless there
is no need to adjust the financial statements at the beginning of the year.
√ Applicable □ Not applicable
Indicate whether the financial statements at the beginning of the year were adjusted.√ Yes □ No
Consolidated balance sheet:
Unit: RMB
Item 31 December 2020 1 January 2021 Adjustment
Current assets:
Monetary assets 21708904743.00 21708904743.00
Settlement reserve
Loans to other banks and
financial institutions
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 receivables
Receivable reinsurance
contract reserve
Other receivables 2793640153.00 2793640153.00
Including: Interest
receivable
Dividends
receivable
Financial assets purchased
under resale agreements
Inventories 8834957692.00 8834957692.00
Contract assets 183650278.00 183650278.00
Assets held for sale 360935948.00 360935948.00
Current portion of
non-current assets
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
instruments
1333675630.00 1333675630.00
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 living assets
Oil and gas assets
Right-of-use assets 1856862180.00 1856862180.00
Intangible assets 10054045032.00 10054045032.00
Development costs 2103994558.00 2103994558.00
Goodwill 6943264794.00 6943264794.00
Long-term prepaid
expense
2536670015.00 2099368428.00 -437301587.00
Deferred income 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
Loans from other banks
and financial institutions
Held-for-trading financial
liabilities
527901041.00 527901041.00
Derivative financial
liabilities
384903731.00 384903731.00
Notes payable 4725611752.00 4725611752.00
Accounts payable 16468931544.00 16468931544.00
Advances from customers 78597459.00 78597459.00
Contract liabilities 2004004181.00 2004004181.00
Financial assets sold under
repurchase agreements
50080208.00 50080208.00
Customer deposits and
deposits from other banks
and financial institutions
2850138744.00 2850138744.00
Payables for acting trading
of securities
Payables for underwriting
of securities
Employee benefits payable 1856664146.00 1856664146.00
Taxes and levies payable 670058792.00 670058792.00
Other payables 14869433359.00 14869433359.00
Including: Interest
payable
Dividends
payable
1293097.00 1293097.00
Fees and commissions
payable
Reinsurance payables
Liabilities directly
associated with assets held
for sale
Current portion of
non-current liabilities
13429669611.00 13449071421.00 19401810.00
Other current liabilities 366970706.00 366970706.00
Total current liabilities 71016513544.00 71035915354.00 19401810.00
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 73589403308.00 73589403308.00
Bonds payable 18040772610.00 18040772610.00
Including: Preference
shares
Perpetual
bonds
Lease liabilities 912550980.00 912550980.00
Long-term payables 1280299665.00 453601568.00 -826698097.00
Long-term employee
benefits payable
27857583.00 27857583.00
Provisions
Deferred income 1509867357.00 1509867357.00
Deferred income tax
liabilities
2386496733.00 2386496733.00
Other non-current
liabilities
Total non-current liabilities 96834697256.00 96920550139.00 85852883.00
Total liabilities 167851210800.00 167956465493.00 105254693.00
Owners’ equity:
Share capital 14030788362.00 14030788362.00
Other equity instruments 230240606.00 230240606.00
Including: Preference
shares
Perpetual
bonds
Capital reserves 5442384608.00 5442384608.00
Less: Treasury stock 1913028859.00 1913028859.00
Other comprehensive
income
-145573093.00 -145573093.00
Specific reserve 211932.00 211932.00
Surplus reserves 2452892102.00 2452892102.00
General reserve 385534.00 385534.00
Retained earnings 14009494262.00 14009494262.00
Total equity attributable to
owners of the Company as
the parent
34107795454.00 34107795454.00
Non-controlling interests 55949272633.00 55949272633.00
Total owners’ equity 90057068087.00 90057068087.00
Total liabilities and owners’
equity
257908278887.00 258013533580.00 105254693.00
Balance sheet of the Company as the parent:
Unit: RMB
Item 31 December 2020 1 January 2021 Adjustment
Current assets:
Monetary assets 2208790335.00 2208790335.00
Held-for-trading financial
assets
1221656698.00 1221656698.00
Derivative financial assets
Notes receivable 6000000.00 6000000.00
Accounts receivable 175787300.00 175787300.00
Receivables financing
Prepayments 97962630.00 97962630.00
Other receivables 25555923615.00 25555923615.00
Including: Interest
receivable
Dividends
receivable
Inventories 5997388.00 5997388.00
Contract assets
Assets held for sale
Current portion of
non-current assets
Other current assets 2332646.00 2332646.00
Total current assets 29274450612.00 29274450612.00
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity
investments
65094459376.00 65094459376.00
Investments in other equity
instruments
15000000.00 15000000.00
Other non-current financial
assets
1145021734.00 1145021734.00
Investment property 88686986.00 88686986.00
Fixed assets 46011508.00 46011508.00
Construction in progress 11440567.00 11440567.00
Productive living assets
Oil and gas assets
Right-of-use assets 467914882.00 467914882.00
Intangible assets 42310680.00 42310680.00
Development costs
Goodwill
Long-term prepaid
expense
469424698.00 32123111.00 -437301587.00
Deferred income tax assets 6709.00 6709.00
Other non-current assets
Total non-current assets 66912362258.00 66942975553.00 30613295.00
Total assets 96186812870.00 96217426165.00 30613295.00
Current liabilities:
Short-term borrowings 3670230653.00 3670230653.00
Held-for-trading financial
liabilities
Derivative financial 16513000.00 16513000.00
liabilities
Notes payable
Accounts payable 129703459.00 129703459.00
Advances from customers
Contract liabilities 1871994.00 1871994.00
Employee benefits payable 220510234.00 220510234.00
Taxes and levies payable 26070786.00 26070786.00
Other payables 26377023713.00 26377023713.00
Including: Interest
payable
Dividends
payable
1292429.00 1292429.00
Liabilities directly
associated with assets held
for sale
Current portion of
non-current liabilities
6141029463.00 6150305562.00 9276099.00
Other current liabilities 315970.00 315970.00
Total current liabilities 36583269272.00 36592545371.00 9276099.00
Non-current liabilities:
Long-term borrowings 12087500000.00 12087500000.00
Bonds payable 14092345084.00 14092345084.00
Including: Preference
shares
Perpetual
bonds
Lease liabilities 21337196.00 21337196.00
Long-term payables
Long-term employee
benefits payable
21991372.00 21991372.00
Provisions
Deferred income 42651822.00 42651822.00
Deferred income tax
liabilities
Other non-current
liabilities
Total non-current liabilities 26244488278.00 26265825474.00 21337196.00
Total liabilities 62827757550.00 62858370845.00 30613295.00
Owners’ equity:
Share capital 14030788362.00 14030788362.00
Other equity instruments 230240606.00 230240606.00
Including: Preference
shares
Perpetual
bonds
Capital reserves 9846835060.00 9846835060.00
Less: Treasury stock 1913028859.00 1913028859.00
Other comprehensive
income
141998219.00 141998219.00
Specific reserve
Surplus reserves 2250827663.00 2250827663.00
Retained earnings 8771394269.00 8771394269.00
Total owners’ equity 33359055320.00 33359055320.00
Total liabilities and owners’
equity
96186812870.00 96217426165.00 30613295.00
Notes to the adjustments:
The Company has adopted since 1 January 2021 the Accounting Standard No. 21 for Business Enterprises-Leases revised by the
Ministry of Finance in 2018.The Company adopted a simplified method of retrospective restatement. As required by the new lease standard relevant financial
statement items at the beginning of the period when the new lease standard was first adopted (1 January 2021) were adjusted
according to the cumulative effects arising from the first adoption of the new lease standard and data of the comparable periods were
not adjusted.The effects of the adoption of the new lease standard on the presentation of the balance sheet items as at the beginning of the current
period are as follows:
Item 31 December 2020 Adjustment 1 January 2021
Fixed assets 92829901894 -1314305900 91515595994
Right-of-use assets 1856862180 1856862180
Long-term prepaid expense 2536670015 -437301587 2099368428
Current portion of non-current
liabilities
13429669611 19401810 13449071421
Lease liabilities 912550980 912550980
Long-term payables 1280299665 -826698097 453601568
2. Retrospective Adjustments to the Comparative Data of Prior Periods due to the First Execution in 2021
of the New Accounting Standard Governing Leases
□ Applicable √ Not applicable
III Independent Auditor’s Report
Indicate whether the financial statements above have been audited by an independent auditor.□Yes √ No
These financial statements have not been audited by such an auditor.