TCL科技：2021年第一季度報告全文（英文版).PDF

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1、1 TCL 科技集團股份有限公司科技集團股份有限公司 TCL Technology Group Corporation FIRST QUARTERLY REPORT 2021 27 April 2021TCL Technology Group Corporation First Quarterly Report 2021 2 Part I Important Notes,Table of Contents and Definitions The Board of Directors(or the“Board”),the Supervisory Committee as well as the

2、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

3、or material omissions therein.All the Companys directors have attended the Board meeting for the review of this Report,and all the Companys 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

4、-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

5、any discrepancies or misunderstandings between the two versions,the Chinese version shall prevail.TCL Technology Group Corporation First Quarterly Report 2021 3 Table of Contents Part I Important Notes,Table of Contents and Definitions.2 Part II Key Corporate Information.4 Part III Directors Report.

6、9 Part IV Significant Events.17 Part V Financial Statements.26 TCL Technology Group Corporation First Quarterly Report 2021 4 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(%)

7、Revenue(RMB)32,143,561,563 13,742,129,162 133.91%Net profit attributable to the companys shareholders(RMB)2,403,729,935 408,125,802 488.97%Net profit attributable to the companys shareholders before non-recurring gains and losses(RMB)2,123,056,041-109,881,642 2032.13%Net cash generated from/used in

8、operating activities(RMB)8,003,201,979 2,299,183,493 248.09%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)274,693,487,644 25

9、7,908,278,887 6.51%Owners equity attributable to the companys shareholders(RMB)35,224,374,002 34,107,795,454 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 th

10、is Report(share)14,030,788,362 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)-14,935,921 Not applica

11、ble Government subsidies charged to current profit or loss(exclusive of government subsidies given in the Companys ordinary course of business at fixed quotas or amounts as per the governments uniform standards)302,185,840 Not applicable TCL Technology Group Corporation First Quarterly Report 2021 5

12、 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 Companys o

13、rdinary course of business)25,600,678 Not applicable Non-operating income and expense other than the above 113,649,860 Not applicable Less:Corporate income tax 73,184,923 Not applicable Non-controlling interests(net of tax)72,641,640 Not applicable Total 280,673,894-Explanation of why the Company re

14、classifies 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 PublicNon-Recurring Gain/Loss Items:Applicable Not applicable II Total Number of Shareholders and Holdings of Top 10

15、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 570,474 Number of preference shareholders with resumed voti

16、ng 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%1

17、,158,599,393 610,181,602 Put in pledge by Li Dongsheng 144,000,000 Put in pledge by Jiutian Liancheng 344,899,521 Huizhou Investment Holding Co.,Ltd.State-owned legal person 5.30%743,139,840-Wuhan Optics Valley Industrial Investment Co.,Ltd.State-owned legal person 3.65%511,508,951 511,508,951-Hong

18、Kong Securities Foreign legal person 3.26%457,850,083-TCL Technology Group Corporation First Quarterly Report 2021 6 Clearing Company Ltd.China Securities Finance Corporation Limited Domestic general legal person 2.66%373,231,553-Tibet Tianfeng Enterprise Management Co.,Ltd.Domestic general legal pe

19、rson 1.76%247,284,337-Fang Deji Domestic natural person 1.47%206,130,576 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%145,169,128 National Social Secur

20、ity Fund-Portfolio 601 Fund,wealth management product,etc.0.93%129,785,014-CITIC SecuritiesCITIC BankCITIC Securities Dividend Value One-Year Mixed Collective Asset Management Plan Fund,wealth management product,etc.0.58%80,906,050-Top 10 unrestricted shareholders Name of shareholder Unrestricted sh

21、ares held at the period-end Shares by type Type Shares Huizhou Investment Holding Co.,Ltd.743,139,840 RMB-denominated ordinary stock 743,139,840 Li Dongsheng and his 548,417,791 RMB-denominate 548,417,791 TCL Technology Group Corporation First Quarterly Report 2021 7 acting-in-concert party d ordina

22、ry stock Hong Kong Securities Clearing Company Ltd.457,850,083 RMB-denominated ordinary stock 457,850,083 China Securities Finance Corporation Limited 373,231,553 RMB-denominated ordinary stock 373,231,553 Tibet Tianfeng Enterprise Management Co.,Ltd.247,284,337 RMB-denominated ordinary stock 247,28

23、4,337 Fang Deji 206,130,576 RMB-denominated ordinary stock 206,130,576 Zhejiang Yiwu Tanzhen Investment Management Partnership(Limited Partnership)Loyal Valley(Tanzhen)Value China Exclusive Private Securities Investment Fund 145,169,128 RMB-denominated ordinary stock 145,169,128 National Social Secu

24、rity Fund-Portfolio 601 129,785,014 RMB-denominated ordinary stock 129,785,014 CITIC SecuritiesCITIC BankCITIC Securities Dividend Value One-Year Mixed Collective Asset Management Plan 80,906,050 RMB-denominated ordinary stock 80,906,050 Bank of Communications Co.,Ltd.China Southern Growth Pioneer M

25、ixed Securities Investment Fund 77,368,741 RMB-denominated ordinary stock 77,368,741 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 Investme

26、nt Partnership(Limited Partnership)(hereinafter referred to as“Jiutian Liancheng”)are the biggest shareholder of the Company with a total of 1,158.5994 million shares.Top 10 shareholders involved in securities margin trading(if any)Shareholders Fang Deji and Zhejiang Yiwu Tanzhen Investment Manageme

27、nt 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 for Repurchases”.As

28、 of the end of the Reporting Period,there were 484,206,763 shares in the account.Indicate whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conducted any promissory repo during the Reporting Period.Yes No No such cases in the Reporting Pe

29、riod.2.Number of Preferred Shareholders and Shareholdings of Top 10 of Them Applicable Not applicable TCL Technology Group Corporation First Quarterly Report 2021 8 Part III Directors Report I.Overview In the Reporting Period,the rollout of the COVID-19 vaccine and the implementation of relaxed poli

30、cies 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 manufactu

31、ring,as a source of Chinas economic competitiveness and comparative competitive advantage,will usher in a new stage of development.In the face of the challenges and opportunities,the Company continued its efforts in line with the spirit of“Ramping up,Catching up and Going all out to be A Global Lead

32、er”,the requirements of the 9205 strategic development plan and the operating strategy of“improving operating quality and profitability,consolidating advantages and improving disadvantages,accelerating global layout,and driving development via innovation”to promote the two core businesses,namely the

33、 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 yea

34、r-on-year;a net profit attributable to the Companys 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 suppl

35、y 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

36、.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 competi

37、tion pattern tends to be more complex.TCL Technology Group Corporation First Quarterly Report 2021 9 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 materi

38、al 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 c

39、ontinued 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 n

40、et 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%share

41、s 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 dri

42、ving 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 patt

43、ern 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

44、 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 Chinas manufacturing development

45、,and march forward to be a global industry leader with a stronger driving force for development!TCL Technology Group Corporation First Quarterly Report 2021 10 II.Core Business Analysis The business structure of the Company primarily consists of the semi-conductor display business,the semi-conductor

46、 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

47、 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 acceler

48、ated,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

49、 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

50、 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 sal

51、es.The t7 plant raised production as scheduled.The shipment of large-size products reached 7.9453 million square meters,up by 15.5%TCL Technology Group Corporation First Quarterly Report 2021 11 year-on-year.12.8133 million pieces were shipped with a year-on-year increase of 7.57%.Sales revenue was

52、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

53、 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 L

54、TPS 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 r

55、obust 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 mo

56、ved 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 prod

57、uct structure optimization and maximizing cost reduction.In the Reporting Period,the shipment of t3 and t4 reached 398,700 square meters,up by 81.2%year-on-year;25.8972 million pieces were shipped with a year-on-year increase of 55.1%.The revenue from the small-size panel business amounted to RMB5.3

58、0 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 enh

59、ance TCL CSOTs 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 notebo

60、oks,tablets and vehicle displays.Based on the existing products,R&D TCL Technology Group Corporation First Quarterly Report 2021 12 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 p

61、roduct 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 adv

62、antages 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 LC

63、D industry is improved and leading enterprises have developed a significant industry barrier.TCL CSOTs 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

64、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 qu

65、ality 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 ca

66、tching 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 Semiconducto

67、r 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 r

68、ecorded a revenue of RMB7.46 billion,up by 65.23%year-on-year;a net profit of RMB743 TCL Technology Group Corporation First Quarterly Report 2021 13 million,up by 100.0%year-on-year.In terms of semi-conductor photovoltaic,Zhonghuan Semiconductor grasped the golden opportunity of industry development

69、 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

70、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 companys G12 monocrystalline silicon and silicon wafers in the Reporting Period gradually highlighted its techn

71、ical advantages,product sales and earnings grew month by month,and the companys advanced production capacity entered a period of rapid growth.Phase V crystal production capacity in Inner Mongolias is climbing as scheduled;following the start of operation of the DW-cut ultra-thin silicon wafer projec

72、t 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 yea

73、r;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 capa

74、city 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 companys advanced capacity.Moreover,the technical reform and manufacturing methods

75、 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 i

76、mpact 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 companys operation scenarios and business processes will bring sustained contributions to the production and sales scale and op

77、erating TCL Technology Group Corporation First Quarterly Report 2021 14 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 c

78、ell 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

79、 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 s

80、tations 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 need

81、s 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 silic

82、on 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 domin

83、ant 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,l

84、aying 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 st

85、rengthening global system service capabilities,Zhonghuan Semiconductor achieved 30%overseas sales of materials business in the first quarter of 2021.TCL Technology Group Corporation First Quarterly Report 2021 15 Looking into the rest of 2021,Zhonghuan Semiconductor will increase investment and asse

86、t restructuring of Inner Mongolia base,Tianjin base and Jiangsu base of Zhonghuan Advanced,orderly promote the coverage of the companys products for power semiconductors chips and integrated circuit chips of all kind;As the company maintains the domestic and global leadership of Zhonghuan Advanced i

87、n 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-

88、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

89、,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

90、 and underwritten 9 bonds and 2 debt management projects.China Innovative focused on industrial chain investment opportunities related to the Companys two core businesses,and has invested in more than 110 listed companies cumulatively with a steady growth in performance.In the Reporting Period,the f

91、inance team focused on the funding needs of the Companys 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.TCL Technology Group Co

92、rporation First Quarterly Report 2021 16 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 C

93、hanges Derivative financial assets 219,179,859 453,578,245-51.7 Decrease in derivatives investments Notes receivable 1,052,967,190 595,685,338 76.8 Increase in revenue Prepayments 1,824,063,319 1,355,653,454 34.6 Increase in prepayments to suppliers Other receivables 8,465,195,129 2,793,640,153 203.

94、0 Increase in receivables in relation to investments Borrowings from central bank 668,442,302 469,834,291 42.3 Increase in borrowings received by TCL Tech Finance Co.,Ltd.from the central bank Held-for-trading financial liabilities 1,368,835,184 527,901,041 159.3 Increase in financial products Deriv

95、ative financial liabilities 174,841,937 384,903,731-54.6 Decrease in derivatives investments Taxes and levies payable 979,478,482 670,058,792 46.2 Increase in earnings Long-term payables 565,351,943 1,280,299,665 -55.8 Effect of the new accounting standard governing leases Other comprehensive income

96、 -297,310,404 -145,573,093 -104.2 Foreign currency translation differences Income statement items Q1 2021 Q1 2020 Change(%)Reasons for the Changes Revenue 32,143,561,563 13,742,129,162 133.9 Increase in revenue and consolidation of Zhonghuan Electronics Cost of sales 25,383,357,989 12,743,745,923 99

97、.2 Increase in revenue and consolidation of Zhonghuan Electronics Taxes and levies 106,853,638 38,902,775 174.7 Increase in earnings and consolidation of Zhonghuan Electronics Selling expense 330,230,062 159,592,940 106.9 Increase in revenue and consolidation of Zhonghuan Electronics TCL Technology

98、Group Corporation First Quarterly Report 2021 17 Administrative expense 763,004,335 321,790,541 137.1 Increase in business and consolidation of Zhonghuan Electronics R&D expense 1,540,240,528 837,453,524 83.9 Increase in R&D investments and consolidation of Zhonghuan Electronics Finance costs 740,01

99、0,321 384,913,273 92.3 Increase in financings and consolidation of Zhonghuan Electronics Other income 343,452,869 620,518,501 -44.7 Decrease in government subsidies Gain on changes in fair value -292,943,771 -205,634,246 -42.5 Changes in the fair value of derivatives Credit impairment loss(“-”for lo

100、ss)-31,736,912 -7,478,551 324.4 Increase in impairment loss on loans and advances to customers Income tax expense 487,257,128 25,846,940 1,785.2 Increase in operating profit and consolidation of Zhonghuan Electronics Net profit attributable to non-controlling interests 831,927,064 -137,547,929 704.8

101、 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 8,003,201,979 2,299,183,493 248.1 Increase in revenue and consolidation of Zhonghuan Electronics Net cash

102、 generated from/used in financing activities 2,657,860,614 7,670,463,871-65.3 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

103、 the related announcement Announcement on the Completion of the Non-Deal Transfer under the Third Global Partner Plan 22 January 2021 http:/ Voluntary Announcement on the Increase in the Interest in Tianjin Printronics Circuit 4 February 2021 TCL Technology Group Corporation First Quarterly Report 2

104、021 18 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 Volu

105、ntary 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 Compan

106、ys 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:RMB0,000 Security type Security code Security name Initial investment

107、 cost Measurement method Beginning carrying amount Gain/loss on fair-value changes in the Reporting Period Cumulative fair-value changes recorded in equity Purchased in the Reporting Period Sold in the Reporting Period Gain/loss in the Reporting Period Ending carrying amount Accounting title Funding

108、 source Banks wealth management product Not applicable Sea Gull Collective Capital Trust Plan No.2 20,000 Fair value -260-20,000-260 20,260 Held-for-trading financial assets Self-funded Convertible Not appliConvertible bonds of 115,077 Fair value -115,077 103,005 1,046 12,072 Held-for-trading Self-f

109、unded TCL Technology Group Corporation First Quarterly Report 2021 19 bonds cable Bank of Shanghai financial assets Stock 0860.HK Apollo 24,336 Fair value 17,847-12,801-11,637 Investments in other equity instruments Self-funded Tier 2 capital debt Not applicable 20 China CITIC Bank Tier 2 10,000 Amo

110、rtized cost 10,148-95 10,244 Debt investments Self-funded Asset management plan Not applicable Yuanheng FOF Single Asset Management Plan No.1 10,000 Fair value 10,040 89-89 10,129 Held-for-trading financial assets Self-funded Bonds USG9T27HAD62 Vedanta Resources 8,337 Fair value -213 -8,337 -213 8,2

111、51 Held-for-trading financial assets Self-funded Bonds XS2293918285 Easy Tactic Ltd 7,890 Fair value -272 -7,890 -272 8,221 Held-for-trading financial assets Self-funded Bonds USG9328DAM23 Vedanta Resources Ltd 7,541 Fair value -45 -7,541 -302 7,641 Held-for-trading financial assets Self-funded Bond

112、s US71654QCG55 Petroleos Mexicanos 6,677 Fair value 7,019 -165 -46 6,902 Held-for-trading financial assets Self-funded Bonds XS1642686676 Softbank Group Corp 6,969 Fair value 6,704 41 -265 6,793 Held-for-trading financial assets Self-funded Other securities investments held at the period-end 585,818

113、 -499,197 -19,391 6,841 112,409 333,493 1,321 305,524 -Total 802,646-550,954 -19,060 -549 271,254 436,498 3,484 407,673 -Disclosure date of the board announcement approving the securities 12 December 2020 TCL Technology Group Corporation First Quarterly Report 2021 20 investments Disclosure date of

114、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 d

115、erivative 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 inter

116、est 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 interes

117、t 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 tradi

118、ng 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-count

119、er 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

120、,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 busines

121、s 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 therefr

122、om.Measures taken for risk control:TCL Technology Group Corporation First Quarterly Report 2021 21 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 carr

123、ied 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 treatmen

124、t 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

125、 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

126、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 necess

127、ity,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

128、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

129、 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 derivativ

130、e 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 an

131、d 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 c

132、ontractual 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 c

133、hange 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 cost

134、s by reasonable financial derivatives,which helps to reduce risk TCL Technology Group Corporation First Quarterly Report 2021 22 control costs and improve company competitiveness.Risks are effectively controlled as the Company has taken series of measures such as conducting a rigorous internal evalu

135、ation 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 f

136、inancial 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 inte

137、rests of minority shareholders of the company and the relevant laws and regulations.Positions of derivative investments at the period-end:Unit:RMB0,000 Type of contract Beginning amount Ending amount Gain/loss in Reporting Period Ending contractual amount as%of the Companys ending net assets Contrac

138、tual amount Actual amount Contractual amount Actual amount Contractual amount Actual amount 1.Forward forex contracts 1,931,617 59,359 1,627,130 54,962 9,102 17.75 0.60 2.Interest rate swaps 758,846 22,765 764,242 22,927 8.34 0.25 3.Currency swaps 310,520 15,526 98,570 4,928 1.08 0.05 Total 3,000,98

139、3 97,650 2,489,942 82,818 9,102 27.17 0.90 V Progress of Projects Financed with Raised Funds In 2020,the Company carried out a program of asset purchase via share and convertible corporate bonds offering and cash payment and matching funds raising,with the total raised funds amounting to RMB2.6 bill

140、ion.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 A

141、nnouncement 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

142、a forecast significant year-on-year change in the net profit of H1 2021,as well as explanation of why:TCL Technology Group Corporation First Quarterly Report 2021 23 Applicable Not applicable VII Significant Contracts Arising from the Companys Ordinary Course of Business Applicable Not applicable VI

143、II Cash Entrusted for Wealth Management Unit:RMB0,000 Type Funding source Amount Undue amount Unrecovered overdue amount Banks wealth management product Self-funded 200,033.30 33.30-Securities firms wealth management product Self-funded 26,000.00 16,000.00-Trust plan Self-funded 20,000.00 20,000.00-

144、Other Self-funded 185,557.43 52,552.23-Total 431,590.73 88,585.53-High-risk wealth management transactions with a significant single amount,low liquidity and no principal protection:Applicable Not applicable Situation where the principal is expectedly irrecoverable or an impairment may be incurred:A

145、pplicable Not applicable IX Irregularities in the Provision of Guarantees Applicable Not applicable X Occupation of the Companys Capital by the Controlling Shareholder or any of Its Related Parties for Non-Operating Purposes Applicable Not applicable XI Communications with the Investment Community s

146、uch 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 vi

147、sit 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 TCL Technology Group Corporation First Quarterly Report 2021 24 Company,TruValue Asset Management,Ch

148、ina Life Pension Company Limited,Tianhong Asset Management,Dajia Asset Management,Taikang Asset Management,TianAn Life,etc.planning of TCL Tech.Company on http:/ dated 15 March 2021 TCL Technology Group Corporation First Quarterly Report 2021 25 Part V Financial Statements I Financial Statements 1.C

149、onsolidated Balance Sheet Prepared by TCL Technology Group Corporation Unit:RMB Item 31 March 2021 31 December 2020 Current assets:Monetary assets 21,866,755,914.00 21,708,904,743.00 Settlement reserve Loans to other banks and financial institutions Held-for-trading financial assets 3,802,869,673.00

150、 5,300,045,879.00 Derivative financial assets 219,179,859.00 453,578,245.00 Notes receivable 1,052,967,190.00 595,685,338.00 Accounts receivable 15,672,609,886.00 12,557,614,486.00 Receivables financing 1,608,178,118.00 2,176,743,646.00 Prepayments 1,824,063,319.00 1,355,653,454.00 Premiums receivab

151、le Reinsurance receivables Receivable reinsurance contract reserve Other receivables 8,465,195,129.00 2,793,640,153.00 Including:Interest receivable Dividends receivable Financial assets purchased under resale agreements Inventories 8,882,549,680.00 8,834,957,692.00 Contract assets 199,410,288.00 18

152、3,650,278.00 Assets held for sale 256,938,591.00 360,935,948.00 Current portion of non-current assets 63,050,115.00 Other current assets 8,952,314,761.00 9,367,055,433.00 Total current assets 72,866,082,523.00 65,688,465,295.00 TCL Technology Group Corporation First Quarterly Report 2021 26 Non-curr

153、ent assets:Loans and advances to customers 997,789,579.00 981,876,228.00 Debt investments 119,904,974.00 119,349,896.00 Other debt investments 154,543,851.00 152,062,601.00 Long-term receivables 699,379,064.00 778,889,309.00 Long-term equity investments 24,340,787,935.00 24,047,036,004.00 Investment

154、s in other equity instruments 1,267,383,678.00 1,333,675,630.00 Other non-current financial assets 3,014,285,378.00 3,055,595,097.00 Investment property 1,708,552,761.00 1,664,201,130.00 Fixed assets 94,224,678,564.00 92,829,901,894.00 Construction in progress 36,900,616,376.00 31,508,310,783.00 Pro

155、ductive living assets Oil and gas assets Right-of-use assets 1,836,520,444.00 Intangible assets 11,559,900,467.00 10,054,045,032.00 Development costs 1,664,984,199.00 2,103,994,558.00 Goodwill 6,943,264,794.00 6,943,264,794.00 Long-term prepaid expense 2,380,306,309.00 2,536,670,015.00 Deferred inco

156、me tax assets 1,387,256,553.00 1,578,087,991.00 Other non-current assets 12,627,250,195.00 12,532,852,630.00 Total non-current assets 201,827,405,121.00 192,219,813,592.00 Total assets 274,693,487,644.00 257,908,278,887.00 Current liabilities:Short-term borrowings 13,915,672,147.00 12,263,713,979.00

157、 Borrowings from the central bank 668,442,302.00 469,834,291.00 Loans from other banks and financial institutions Held-for-trading financial liabilities 1,368,835,184.00 527,901,041.00 Derivative financial liabilities 174,841,937.00 384,903,731.00 Notes payable 6,053,247,077.00 4,725,611,752.00 Acco

158、unts payable 20,590,854,151.00 16,468,931,544.00 Advances from customers 62,773,331.00 78,597,459.00 Contract liabilities 2,113,158,334.00 2,004,004,181.00 Financial assets sold under 50,080,208.00 50,080,208.00 TCL Technology Group Corporation First Quarterly Report 2021 27 repurchase agreements Cu

159、stomer deposits and deposits from other banks and financial institutions 3,583,649,744.00 2,850,138,744.00 Payables for acting trading of securities Payables for underwriting of securities Employee benefits payable 1,769,080,325.00 1,856,664,146.00 Taxes and levies payable 979,478,482.00 670,058,792

160、.00 Other payables 17,390,694,070.00 14,869,433,359.00 Including:Interest payable Dividends payable 1,293,099.00 1,293,097.00 Fees and commissions payable Reinsurance payables Liabilities directly associated with assets held for sale Current portion of non-current liabilities 12,468,897,969.00 13,42

161、9,669,611.00 Other current liabilities 336,370,951.00 366,970,706.00 Total current liabilities 81,526,076,212.00 71,016,513,544.00 Non-current liabilities:Insurance contract reserve Long-term borrowings 78,353,685,147.00 73,589,403,308.00 Bonds payable 18,094,160,624.00 18,040,772,610.00 Including:P

162、reference shares Perpetual bonds Lease liabilities 903,293,868.00 Long-term payables 565,351,943.00 1,280,299,665.00 Long-term employee benefits payable 27,669,191.00 27,857,583.00 Provisions Deferred income 1,208,873,737.00 1,509,867,357.00 Deferred income tax liabilities 2,364,772,001.00 2,386,496

163、,733.00 Other non-current liabilities Total non-current liabilities 101,517,806,511.00 96,834,697,256.00 Total liabilities 183,043,882,723.00 167,851,210,800.00 TCL Technology Group Corporation First Quarterly Report 2021 28 Owners equity:Share capital 14,030,788,362.00 14,030,788,362.00 Other equit

164、y instruments 230,240,606.00 230,240,606.00 Including:Preference shares Perpetual bonds Capital reserves 4,201,713,830.00 5,442,384,608.00 Less:Treasury stock 1,799,696,760.00 1,913,028,859.00 Other comprehensive income -297,310,404.00-145,573,093.00 Specific reserve 309,346.00 211,932.00 Surplus re

165、serves 2,452,892,102.00 2,452,892,102.00 General reserve 360,767.00 385,534.00 Retained earnings 16,405,076,153.00 14,009,494,262.00 Total equity attributable to owners of the Company as the parent 35,224,374,002.00 34,107,795,454.00 Non-controlling interests 56,425,230,919.00 55,949,272,633.00 Tota

166、l owners equity 91,649,604,921.00 90,057,068,087.00 Total liabilities and owners equity 274,693,487,644.00 257,908,278,887.00 Legal representative:Li Dongsheng Person-in-charge of financial affairs:Du Juan Person-in-charge of the financial department:Xi Wenbo 2.Balance Sheet of the Company as the Pa

167、rent Unit:RMB Item 31 March 2021 31 December 2020 Current assets:Monetary assets 4,673,557,233.00 2,208,790,335.00 Held-for-trading financial assets 494,026,692.00 1,221,656,698.00 Derivative financial assets 2,850,000.00 Notes receivable 6,000,000.00 6,000,000.00 Accounts receivable 242,732,754.00

168、175,787,300.00 Receivables financing Prepayments 6,814,091.00 97,962,630.00 Other receivables 25,785,861,592.00 25,555,923,615.00 Including:Interest receivable Dividends receivable Inventories 889,550.00 5,997,388.00 TCL Technology Group Corporation First Quarterly Report 2021 29 Contract assets Ass

169、ets held for sale Current portion of non-current assets Other current assets 2,332,646.00 2,332,646.00 Total current assets 31,215,064,558.00 29,274,450,612.00 Non-current assets:Debt investments Other debt investments Long-term receivables Long-term equity investments 65,369,362,149.00 65,094,459,3

170、76.00 Investments in other equity instruments 15,000,000.00 15,000,000.00 Other non-current financial assets 1,275,592,020.00 1,145,021,734.00 Investment property 87,699,827.00 88,686,986.00 Fixed assets 46,296,612.00 46,011,508.00 Construction in progress 5,957,827.00 11,440,567.00 Productive livin

171、g assets Oil and gas assets Right-of-use assets 469,533,606.00 Intangible assets 53,510,468.00 42,310,680.00 Development costs Goodwill Long-term prepaid expense 32,119,285.00 469,424,698.00 Deferred income tax assets 2,866.00 6,709.00 Other non-current assets Total non-current assets 67,355,074,660

172、.00 66,912,362,258.00 Total assets 98,570,139,218.00 96,186,812,870.00 Current liabilities:Short-term borrowings 4,583,581,361.00 3,670,230,653.00 Held-for-trading financial liabilities Derivative financial liabilities 16,513,000.00 Notes payable Accounts payable 242,589,681.00 129,703,459.00 Advanc

173、es from customers 626,347.00 TCL Technology Group Corporation First Quarterly Report 2021 30 Contract liabilities 1,871,994.00 Employee benefits payable 204,396,873.00 220,510,234.00 Taxes and levies payable 7,914,959.00 26,070,786.00 Other payables 27,194,760,921.00 26,377,023,713.00 Including:Inte

174、rest payable Dividends payable 1,292,429.00 1,292,429.00 Liabilities directly associated with assets held for sale Current portion of non-current liabilities 5,216,364,309.00 6,141,029,463.00 Other current liabilities 1,323,541.00 315,970.00 Total current liabilities 37,451,557,992.00 36,583,269,272

175、.00 Non-current liabilities:Long-term borrowings 13,353,000,000.00 12,087,500,000.00 Bonds payable 14,130,272,528.00 14,092,345,084.00 Including:Preference shares Perpetual bonds Lease liabilities 22,890,284.00 Long-term payables Long-term employee benefits payable 21,801,770.00 21,991,372.00 Provis

176、ions Deferred income 41,864,052.00 42,651,822.00 Deferred income tax liabilities Other non-current liabilities Total non-current liabilities 27,569,828,634.00 26,244,488,278.00 Total liabilities 65,021,386,626.00 62,827,757,550.00 Owners equity:Share capital 14,030,788,362.00 14,030,788,362.00 Other

177、 equity instruments 230,240,606.00 230,240,606.00 Including:Preference shares Perpetual bonds Capital reserves 9,847,091,192.00 9,846,835,060.00 Less:Treasury stock 1,799,696,760.00 1,913,028,859.00 Other comprehensive income 141,998,219.00 141,998,219.00 TCL Technology Group Corporation First Quart

178、erly Report 2021 31 Specific reserve Surplus reserves 2,250,827,663.00 2,250,827,663.00 Retained earnings 8,847,503,310.00 8,771,394,269.00 Total owners equity 33,548,752,592.00 33,359,055,320.00 Total liabilities and owners equity 98,570,139,218.00 96,186,812,870.00 3.Consolidated Income Statement

179、Unit:RMB Item Q1 2021 Q1 2020 1.Total revenues 32,173,945,858.00 13,789,536,228.00 Including:Revenue 32,143,561,563.00 13,742,129,162.00 Interest income 30,384,295.00 47,407,066.00 Insurance premium income Fee and commission income 2.Costs and expenses 28,868,451,833.00 14,493,594,692.00 Including:C

180、ost of sales 25,383,357,989.00 12,743,745,923.00 Interest expense 4,754,960.00 7,195,716.00 Fee and commission expense Surrenders Net insurance claims paid Net amount provided as insurance contract reserve Expenditure on policy dividends Reinsurance premium expense Taxes and levies 106,853,638.00 38

181、,902,775.00 Selling expense 330,230,062.00 159,592,940.00 Administrative expense 763,004,335.00 321,790,541.00 R&D expense 1,540,240,528.00 837,453,524.00 Finance costs 740,010,321.00 384,913,273.00 Including:Interest expense 966,852,847.00 553,121,614.00 Interest income 103,593,808.00 162,367,782.0

182、0 TCL Technology Group Corporation First Quarterly Report 2021 32 Add:Other income 343,452,869.00 620,518,501.00 Return on investment(“-”for loss)493,372,758.00 694,268,712.00 Including:Share of profit or loss of joint ventures and associates 149,003,152.00 300,625,432.00 Income from the derecogniti

183、on of financial assets at amortized cost Exchange gain(“-”for loss)-14,384.00 182,919.00 Net gain on exposure hedges(“-”for loss)Gain on changes in fair value(“-”for loss)-292,943,771.00-205,634,246.00 Credit impairment loss(“-”for loss)-31,736,912.00-7,478,551.00 Asset impairment loss(“-”for loss)-

184、301,118,508.00-232,590,984.00 Asset disposal income(“-”for loss)159,503.00 6,658.00 3.Operating profit(“-”for loss)3,516,665,580.00 165,214,545.00 Add:Non-operating income 210,942,953.00 141,925,394.00 Less:Non-operating expense 4,694,406.00 10,715,126.00 4.Gross profit(“-”for loss)3,722,914,127.00

185、296,424,813.00 Less:Income tax expense 487,257,128.00 25,846,940.00 5.Net profit(“-”for net loss)3,235,656,999.00 270,577,873.00 5.1 By operating continuity 5.1.1 Net profit from continuing operations(“-”for net loss)3,235,656,999.00 270,577,873.00 5.1.2 Net profit from discontinued operations(“-”fo

186、r net loss)5.2 By ownership 5.2.1 Net profit attributable to owners of the Company as the parent 2,403,729,935.00 408,125,802.00 5.2.1 Net profit attributable to non-controlling interests 831,927,064.00-137,547,929.00 6.Other comprehensive income,net of tax -180,087,886.00-201,191,608.00 Attributabl

187、e to owners of the Company as the parent -151,737,311.00-135,977,236.00 6.1 Items that will not be reclassified to profit or loss -65,621,285.00-24,540,407.00 TCL Technology Group Corporation First Quarterly Report 2021 33 6.1.1 Changes caused by remeasurements on defined benefit schemes 6.1.2 Other

188、 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 -65,621,285.00-24,540,407.00 6.1.4 Changes in the fair value arising from changes in own credit risk 6.1.5 Other 6.2 Items that wil

189、l be reclassified to profit or loss -86,116,026.00-111,436,829.00 6.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method 11,868.00 8,800,657.00 6.2.2 Changes in the fair value of other debt investments 6.2.3 Other comprehensive income arising from the re

190、classification of financial assets 6.2.4 Credit impairment allowance for other debt investments 6.2.5 Reserve for cash flow hedges -75,069,636.00-31,380,198.00 6.2.6 Differences arising from the translation of foreign currency-denominated financial statements-11,058,258.00-88,857,288.00 6.2.7 Other

191、Attributable to non-controlling interests -28,350,575.00-65,214,372.00 7.Total comprehensive income 3,055,569,113.00 69,386,265.00 Attributable to owners of the Company as the parent 2,251,992,624.00 272,148,566.00 Attributable to non-controlling interests 803,576,489.00-202,762,301.00 8.Earnings pe

192、r 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 TCL Technology Group Corporation First Quarterly Report 2021 34 Person-in-charge of the financial department:Xi Wenbo 4.Inco

193、me Statement of the Company as the Parent Unit:RMB Item Q1 2021 Q1 2020 1.Revenue 307,619,705.00 277,992,615.00 Less:Cost of sales 229,164,379.00 186,288,369.00 Taxes and levies 3,547,225.00 884,082.00 Selling expense 4,863,172.00 5,539,685.00 Administrative expense 71,791,383.00 44,402,485.00 R&D e

194、xpense 32,899,759.00 22,086,746.00 Finance costs 401,851,331.00 269,483,384.00 Including:Interest expense 583,166,671.00 403,477,889.00 Interest income 205,588,588.00 134,103,744.00 Add:Other income 1,756,844.00 4,807,000.00 Return on investment(“-”for loss)294,992,985.00 899,034,332.00 Including:Sh

195、are of profit or loss of joint ventures and associates 270,571,871.00 265,646,202.00 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)9,486,419.00 81,456,431.00 Credit impairment loss(“-”

196、for loss)15,695.00 995.00 Asset impairment loss(“-”for loss)Asset disposal income(“-”for loss)2.Operating profit(“-”for loss)-130,245,601.00 734,606,622.00 Add:Non-operating income 206,621,894.00 139,294,872.00 Less:Non-operating expense 251,617.00 7,636.00 3.Gross profit(“-”for loss)76,124,676.00 8

197、73,893,858.00 Less:Income tax expense 3,843.00 TCL Technology Group Corporation First Quarterly Report 2021 35 4.Net profit(“-”for net loss)76,120,833.00 873,893,858.00 4.1 Net profit from continuing operations(“-”for net loss)76,120,833.00 873,893,858.00 4.2 Net profit from discontinued operations(

198、“-”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 i

199、n 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

200、.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 cu

201、rrency-denominated financial statements 5.2.7 Other 6.Total comprehensive income 76,120,833.00 873,893,858.00 7.Earnings per share 7.1 Basic earnings per share TCL Technology Group Corporation First Quarterly Report 2021 36 7.2 Diluted earnings per share 5.Consolidated Cash Flow Statement Unit:RMB I

202、tem Q1 2021 Q1 2020 1.Cash flows from operating activities:Proceeds from sale of commodities and rendering of services 27,034,723,608.00 14,850,100,323.00 Net increase in customer deposits and deposits from other banks and financial institutions 733,511,000.00-465,489,884.00 Net increase in borrowin

203、gs from the central bank 198,608,011.00 168,685,969.00 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 30,384,295.

204、00 47,407,066.00 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 1,394,337,857.00 608,001,845.00 Cash generated from other operating activities 1,171,334,830.00

205、 467,981,716.00 Subtotal of cash generated from operating activities 30,562,899,601.00 15,676,687,035.00 Payments for commodities and services 17,145,704,624.00 11,369,283,220.00 Net increase in loans and advances to customers 1,013,946,603.00-1,555,006,243.00 Net increase in deposits in the central

206、 bank and other banks and financial institutions 68,720,062.00-202,132,448.00 Payments for claims on original TCL Technology Group Corporation First Quarterly Report 2021 37 insurance contracts Net increase in loans to other banks and financial institutions Interest,fees and commissions paid Policy

207、dividends paid Cash paid to and for employees 2,018,238,456.00 1,589,132,206.00 Taxes and levies paid 582,590,307.00 844,676,500.00 Cash used in other operating activities 1,730,497,570.00 1,331,550,307.00 Subtotal of cash used in operating activities 22,559,697,622.00 13,377,503,542.00 Net cash gen

208、erated from/used in operating activities 8,003,201,979.00 2,299,183,493.00 2.Cash flows from investing activities:Proceeds from disinvestment 6,373,430,027.00 4,618,844,632.00 Return on investment 125,899,457.00 76,434,103.00 Net proceeds from the disposal of fixed assets,intangible assets and other

209、 long-lived assets 18,531,879.00 23,052.00 Net proceeds from the disposal of subsidiaries and other business units 197,487,161.00 Cash generated from other investing activities 6,368,912.00 Subtotal of cash generated from investing activities 6,524,230,275.00 4,892,788,948.00 Payments for the acquis

210、ition of fixed assets,intangible assets and other long-lived assets 7,543,249,643.00 4,982,864,051.00 Payments for investments 9,287,433,997.00 9,033,187,658.00 Net increase in pledged loans granted Net payments for the acquisition of subsidiaries and other business units Cash used in other investin

211、g activities 50,133,413.00 Subtotal of cash used in investing activities 16,880,817,053.00 14,016,051,709.00 Net cash generated from/used in investing activities -10,356,586,778.00-9,123,262,761.00 3.Cash flows from financing activities:Capital contributions received 94,900,000.00 2,260,200,000.00 T

212、CL Technology Group Corporation First Quarterly Report 2021 38 Including:Capital contributions by non-controlling interests to subsidiaries 94,900,000.00 2,260,200,000.00 Borrowings received 16,219,912,408.00 13,646,741,209.00 Cash generated from other financing activities 151,949,228.00 Subtotal of

213、 cash generated from financing activities 16,466,761,636.00 15,906,941,209.00 Repayment of borrowings 10,706,121,604.00 7,266,785,974.00 Interest and dividends paid 1,209,556,374.00 640,411,211.00 Including:Dividends paid by subsidiaries to non-controlling interests 23,055,560.00 26,392,667.00 Cash

214、used in other financing activities 1,893,223,044.00 329,280,153.00 Subtotal of cash used in financing activities 13,808,901,022.00 8,236,477,338.00 Net cash generated from/used in financing activities 2,657,860,614.00 7,670,463,871.00 4.Effect of foreign exchange rates changes on cash and cash equiv

215、alents 57,381,895.00-26,758,509.00 5.Net increase in cash and cash equivalents 361,857,710.00 819,626,094.00 Add:Cash and cash equivalents,beginning of the period 18,208,416,780.00 17,637,742,929.00 6.Cash and cash equivalents,end of the period 18,570,274,490.00 18,457,369,023.00 6.Cash Flow Stateme

216、nt 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 332,453,923.00 189,757,308.00 Tax and levy rebates Cash generated from other operating activities 1,412,864,320.00 8,341,488,901.00 Subtota

217、l of cash generated from operating activities 1,745,318,243.00 8,531,246,209.00 Payments for commodities and services 229,201,172.00 185,587,256.00 Cash paid to and for employees 52,067,664.00 56,588,057.00 TCL Technology Group Corporation First Quarterly Report 2021 39 Taxes and levies paid 30,416,

218、907.00 8,220,063.00 Cash used in other operating activities 458,037,058.00 316,261,198.00 Subtotal of cash used in operating activities 769,722,801.00 566,656,574.00 Net cash generated from/used in operating activities 975,595,442.00 7,964,589,635.00 2.Cash flows from investing activities:Proceeds f

219、rom disinvestment 1,937,957,138.00 1,365,307,500.00 Return on investment 45,986,638.00 11,669,831.00 Net proceeds from the disposal of fixed assets,intangible assets and other long-lived assets Net proceeds from the disposal of subsidiaries and other business units Cash generated from other investin

220、g activities Subtotal of cash generated from investing activities 1,983,943,776.00 1,376,977,331.00 Payments for the acquisition of fixed assets,intangible assets and other long-lived assets 12,604,273.00 5,391,188.00 Payments for investments 1,376,585,400.00 1,969,900,000.00 Net payments for the ac

221、quisition of subsidiaries and other business units Cash used in other investing activities Subtotal of cash used in investing activities 1,389,189,673.00 1,975,291,188.00 Net cash generated from/used in investing activities 594,754,103.00-598,313,857.00 3.Cash flows from financing activities:Capital

222、 contributions received Borrowings received 6,549,800,000.00 8,612,000,000.00 Cash generated from other financing activities Subtotal of cash generated from financing activities 6,549,800,000.00 8,612,000,000.00 Repayment of borrowings 5,326,842,000.00 4,272,903,033.00 Interest and dividends paid 31

223、7,432,328.00 168,428,437.00 Cash used in other financing 13,813,143.00 1,332,082.00 TCL Technology Group Corporation First Quarterly Report 2021 40 activities Subtotal of cash used in financing activities 5,658,087,471.00 4,442,663,552.00 Net cash generated from/used in financing activities 891,712,

224、529.00 4,169,336,448.00 4.Effect of foreign exchange rates changes on cash and cash equivalents-18,184,949.00-3,131,768.00 5.Net increase in cash and cash equivalents 2,443,877,125.00 11,532,480,458.00 Add:Cash and cash equivalents,beginning of the period 2,196,283,414.00 3,941,090,221.00 6.Cash and

225、 cash equivalents,end of the period 4,640,160,539.00 15,473,570,679.00 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 belo

226、w 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 balanc

227、e sheet:Unit:RMB Item 31 December 2020 1 January 2021 Adjustment Current assets:Monetary assets 21,708,904,743.00 21,708,904,743.00 Settlement reserve Loans to other banks and financial institutions Held-for-trading financial assets 5,300,045,879.00 5,300,045,879.00 Derivative financial assets 453,5

228、78,245.00 453,578,245.00 Notes receivable 595,685,338.00 595,685,338.00 Accounts receivable 12,557,614,486.00 12,557,614,486.00 Receivables financing 2,176,743,646.00 2,176,743,646.00 Prepayments 1,355,653,454.00 1,355,653,454.00 TCL Technology Group Corporation First Quarterly Report 2021 41 Premiu

229、ms receivable Reinsurance receivables Receivable reinsurance contract reserve Other receivables 2,793,640,153.00 2,793,640,153.00 Including:Interest receivable Dividends receivable Financial assets purchased under resale agreements Inventories 8,834,957,692.00 8,834,957,692.00 Contract assets 183,65

230、0,278.00 183,650,278.00 Assets held for sale 360,935,948.00 360,935,948.00 Current portion of non-current assets Other current assets 9,367,055,433.00 9,367,055,433.00 Total current assets 65,688,465,295.00 65,688,465,295.00 Non-current assets:Loans and advances to customers 981,876,228.00 981,876,2

231、28.00 Debt investments 119,349,896.00 119,349,896.00 Other debt investments 152,062,601.00 152,062,601.00 Long-term receivables 778,889,309.00 778,889,309.00 Long-term equity investments 24,047,036,004.00 24,047,036,004.00 Investments in other equity instruments 1,333,675,630.00 1,333,675,630.00 Oth

232、er non-current financial assets 3,055,595,097.00 3,055,595,097.00 Investment property 1,664,201,130.00 1,664,201,130.00 Fixed assets 92,829,901,894.00 91,515,595,994.00-1,314,305,900.00 Construction in progress 31,508,310,783.00 31,508,310,783.00 Productive living assets Oil and gas assets Right-of-

233、use assets 1,856,862,180.00 1,856,862,180.00 TCL Technology Group Corporation First Quarterly Report 2021 42 Intangible assets 10,054,045,032.00 10,054,045,032.00 Development costs 2,103,994,558.00 2,103,994,558.00 Goodwill 6,943,264,794.00 6,943,264,794.00 Long-term prepaid expense 2,536,670,015.00

234、 2,099,368,428.00-437,301,587.00 Deferred income tax assets 1,578,087,991.00 1,578,087,991.00 Other non-current assets 12,532,852,630.00 12,532,852,630.00 Total non-current assets 192,219,813,592.00 192,325,068,285.00 105,254,693.00 Total assets 257,908,278,887.00 258,013,533,580.00 105,254,693.00 C

235、urrent liabilities:Short-term borrowings 12,263,713,979.00 12,263,713,979.00 Borrowings from the central bank 469,834,291.00 469,834,291.00 Loans from other banks and financial institutions Held-for-trading financial liabilities 527,901,041.00 527,901,041.00 Derivative financial liabilities 384,903,

236、731.00 384,903,731.00 Notes payable 4,725,611,752.00 4,725,611,752.00 Accounts payable 16,468,931,544.00 16,468,931,544.00 Advances from customers 78,597,459.00 78,597,459.00 Contract liabilities 2,004,004,181.00 2,004,004,181.00 Financial assets sold under repurchase agreements 50,080,208.00 50,080

237、,208.00 Customer deposits and deposits from other banks and financial institutions 2,850,138,744.00 2,850,138,744.00 Payables for acting trading of securities Payables for underwriting of securities Employee benefits payable 1,856,664,146.00 1,856,664,146.00 Taxes and levies payable 670,058,792.00 6

238、70,058,792.00 Other payables 14,869,433,359.00 14,869,433,359.00 Including:Interest payable TCL Technology Group Corporation First Quarterly Report 2021 43 Dividends payable 1,293,097.00 1,293,097.00 Fees and commissions payable Reinsurance payables Liabilities directly associated with assets held f

239、or sale Current portion of non-current liabilities 13,429,669,611.00 13,449,071,421.00 19,401,810.00 Other current liabilities 366,970,706.00 366,970,706.00 Total current liabilities 71,016,513,544.00 71,035,915,354.00 19,401,810.00 Non-current liabilities:Insurance contract reserve Long-term borrow

240、ings 73,589,403,308.00 73,589,403,308.00 Bonds payable 18,040,772,610.00 18,040,772,610.00 Including:Preference shares Perpetual bonds Lease liabilities 912,550,980.00 912,550,980.00 Long-term payables 1,280,299,665.00 453,601,568.00-826,698,097.00 Long-term employee benefits payable 27,857,583.00 2

241、7,857,583.00 Provisions Deferred income 1,509,867,357.00 1,509,867,357.00 Deferred income tax liabilities 2,386,496,733.00 2,386,496,733.00 Other non-current liabilities Total non-current liabilities 96,834,697,256.00 96,920,550,139.00 85,852,883.00 Total liabilities 167,851,210,800.00 167,956,465,4

242、93.00 105,254,693.00 Owners equity:Share capital 14,030,788,362.00 14,030,788,362.00 Other equity instruments 230,240,606.00 230,240,606.00 Including:Preference shares TCL Technology Group Corporation First Quarterly Report 2021 44 Perpetual bonds Capital reserves 5,442,384,608.00 5,442,384,608.00 L

243、ess:Treasury stock 1,913,028,859.00 1,913,028,859.00 Other comprehensive income -145,573,093.00-145,573,093.00 Specific reserve 211,932.00 211,932.00 Surplus reserves 2,452,892,102.00 2,452,892,102.00 General reserve 385,534.00 385,534.00 Retained earnings 14,009,494,262.00 14,009,494,262.00 Total e

244、quity attributable to owners of the Company as the parent 34,107,795,454.00 34,107,795,454.00 Non-controlling interests 55,949,272,633.00 55,949,272,633.00 Total owners equity 90,057,068,087.00 90,057,068,087.00 Total liabilities and owners equity 257,908,278,887.00 258,013,533,580.00 105,254,693.00

245、 Balance sheet of the Company as the parent:Unit:RMB Item 31 December 2020 1 January 2021 Adjustment Current assets:Monetary assets 2,208,790,335.00 2,208,790,335.00 Held-for-trading financial assets 1,221,656,698.00 1,221,656,698.00 Derivative financial assets Notes receivable 6,000,000.00 6,000,00

246、0.00 Accounts receivable 175,787,300.00 175,787,300.00 Receivables financing Prepayments 97,962,630.00 97,962,630.00 Other receivables 25,555,923,615.00 25,555,923,615.00 Including:Interest receivable Dividends receivable Inventories 5,997,388.00 5,997,388.00 TCL Technology Group Corporation First Q

247、uarterly Report 2021 45 Contract assets Assets held for sale Current portion of non-current assets Other current assets 2,332,646.00 2,332,646.00 Total current assets 29,274,450,612.00 29,274,450,612.00 Non-current assets:Debt investments Other debt investments Long-term receivables Long-term equity

248、 investments 65,094,459,376.00 65,094,459,376.00 Investments in other equity instruments 15,000,000.00 15,000,000.00 Other non-current financial assets 1,145,021,734.00 1,145,021,734.00 Investment property 88,686,986.00 88,686,986.00 Fixed assets 46,011,508.00 46,011,508.00 Construction in progress

249、11,440,567.00 11,440,567.00 Productive living assets Oil and gas assets Right-of-use assets 467,914,882.00 467,914,882.00 Intangible assets 42,310,680.00 42,310,680.00 Development costs Goodwill Long-term prepaid expense 469,424,698.00 32,123,111.00-437,301,587.00 Deferred income tax assets 6,709.00

250、 6,709.00 Other non-current assets Total non-current assets 66,912,362,258.00 66,942,975,553.00 30,613,295.00 Total assets 96,186,812,870.00 96,217,426,165.00 30,613,295.00 Current liabilities:Short-term borrowings 3,670,230,653.00 3,670,230,653.00 Held-for-trading financial liabilities Derivative f

251、inancial 16,513,000.00 16,513,000.00 TCL Technology Group Corporation First Quarterly Report 2021 46 liabilities Notes payable Accounts payable 129,703,459.00 129,703,459.00 Advances from customers Contract liabilities 1,871,994.00 1,871,994.00 Employee benefits payable 220,510,234.00 220,510,234.00

252、 Taxes and levies payable 26,070,786.00 26,070,786.00 Other payables 26,377,023,713.00 26,377,023,713.00 Including:Interest payable Dividends payable 1,292,429.00 1,292,429.00 Liabilities directly associated with assets held for sale Current portion of non-current liabilities 6,141,029,463.00 6,150,

253、305,562.00 9,276,099.00 Other current liabilities 315,970.00 315,970.00 Total current liabilities 36,583,269,272.00 36,592,545,371.00 9,276,099.00 Non-current liabilities:Long-term borrowings 12,087,500,000.00 12,087,500,000.00 Bonds payable 14,092,345,084.00 14,092,345,084.00 Including:Preference s

254、hares Perpetual bonds Lease liabilities 21,337,196.00 21,337,196.00 Long-term payables Long-term employee benefits payable 21,991,372.00 21,991,372.00 Provisions Deferred income 42,651,822.00 42,651,822.00 Deferred income tax liabilities Other non-current liabilities Total non-current liabilities 26

255、,244,488,278.00 26,265,825,474.00 21,337,196.00 TCL Technology Group Corporation First Quarterly Report 2021 47 Total liabilities 62,827,757,550.00 62,858,370,845.00 30,613,295.00 Owners equity:Share capital 14,030,788,362.00 14,030,788,362.00 Other equity instruments 230,240,606.00 230,240,606.00 I

256、ncluding:Preference shares Perpetual bonds Capital reserves 9,846,835,060.00 9,846,835,060.00 Less:Treasury stock 1,913,028,859.00 1,913,028,859.00 Other comprehensive income 141,998,219.00 141,998,219.00 Specific reserve Surplus reserves 2,250,827,663.00 2,250,827,663.00 Retained earnings 8,771,394

257、,269.00 8,771,394,269.00 Total owners equity 33,359,055,320.00 33,359,055,320.00 Total liabilities and owners equity 96,186,812,870.00 96,217,426,165.00 30,613,295.00 Notes to the adjustments:The Company has adopted since 1 January 2021 the Accounting Standard No.21 for Business Enterprises-Leases r

258、evised 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

259、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

260、31 December 2020 Adjustment 1 January 2021 Fixed assets 92,829,901,894 -1,314,305,900 91,515,595,994 Right-of-use assets 1,856,862,180 1,856,862,180 Long-term prepaid expense 2,536,670,015 -437,301,587 2,099,368,428 Current portion of non-current liabilities 13,429,669,611 19,401,810 13,449,071,421

261、Lease liabilities 912,550,980 912,550,980 Long-term payables 1,280,299,665 -826,698,097 453,601,568 TCL Technology Group Corporation First Quarterly Report 2021 48 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 Auditors 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.