TCL科技：2020年第一季度報告全文（英文版）.PDF

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1、TCL Technology Group Corporation First Quarter Report 2020 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 QUARTER REPORT 2020 29 April 2020TCL Technology Group Corporation First Quarter Report 2020 2 Table of Contents Part I Important Notes.3 Part II Key Corporate Information.5 Pa

2、rt III Directors Report.11 Part IV Significant Events.17 Part V Financial Statements.25 TCL Technology Group Corporation First Quarter Report 2020 3 Part I Important Notes The Board of Directors(or the“Board”),the Supervisory Committee as well as the directors,supervisors and senior management of TC

3、L Technology Group Corporation(hereinafter referred to as the“Company”)hereby guarantee the factuality,accuracy and completeness of the contents of this Report and its summary,and shall be jointly and severally liable for any misrepresentations,misleading statements or material omissions therein.All

4、 the Companys directors have attended the Board meeting for the review of this Report and its summary.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 guaran

5、tee 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.TCL Technology Group Corporation Firs

6、t Quarter Report 2020 4 Definitions Term Definition The“Company”,the“Group”,“TCL”,“TCL Tech.”or“we”TCL Technology Group Corporation and its consolidated subsidiaries,except where the context otherwise requires The“Reporting Period”The period from 1 January 2020 to 31 March 2020 TCL CSOT TCL China St

7、ar Optoelectronics Technology Co.,Ltd.Wuhan CSOT Wuhan China Star Optoelectronics Technology Co.,Ltd.Highly Highly Information Industry Co.,Ltd.,a majority-owned subsidiary of the Company listed on the National Equities Exchange and Quotations(stock code:835281)CDOT China Display Optoelectronics Tec

8、hnology Holdings Limited,a majority-owned subsidiary of the Company listed on the Stock Exchange of Hong Kong(stock code:00334.HK)Bank of Shanghai Bank of Shanghai Co.,Ltd.(stock code:601229.SH),with the Company holding a 5.33%interest 712 Corp.Tianjin 712 Communication&Broadcasting Co.,Ltd.(stock c

9、ode:603712.SH),with the Company holding a 19.07%interest as its second largest shareholder Fantasia Fantasia Holdings Group Co.,Limited,a listed company on the Stock Exchange of Hong Kong(stock code:01777.HK),with the Company holding a 20.06%interest as its second largest shareholder Admiralty Harbo

10、ur Capital Admiralty Harbour Capital Limited China Innovative China Innovative Capital Management Limited t1 project The generation 8.5(or G8.5)TFT-LCD production line of TCL CSOT t2 project The generation 8.5(or G8.5)TFT-LCD(including oxide semiconductor)production line of TCL CSOT t3 project The g

11、eneration 6(or G6)LTPS-LCD panel production line of TCL CSOT t4 project The generation 6(or G6)flexible LTPS-AMOLED panel production line of TCL CSOT t6 project The generation 11(or G11)new TFT-LCD production line of TCL CSOT t7 project The generation 11(or G11)new ultra-high-definition(UHD)TFT-LCD

12、and AMOLED production line of TCL CSOT TCL Technology Group Corporation First Quarter Report 2020 5 Part II Key Corporate Information I Key Financial Information Indicate whether there is any retrospectively restated datum in the table below.Yes No Series No.Item Q1 2020 Q1 2019 Change(%)1 Revenue(R

13、MB)Note 13,742,129,162 29,600,956,875-53.58 Revenue on the same basis after the restructuring(RMB)Note 13,742,129,162 11,918,022,387 15.31 2 EBITDA(RMB)2,809,282,184 4,155,509,053-32.40 3 Net profit attributable to the listed companys shareholders(RMB)Note 408,125,802 779,088,389-47.61 Net profit at

14、tributable to the listed companys shareholders on the same basis after the restructuring(RMB)Note 408,125,802 769,299,155-46.94 Net profit attributable to the listed companys shareholders before non-recurring gains and losses(RMB)-109,881,642 560,950,806-119.59 4 Basic earnings per share(RMB/share)0

15、.0316 0.0578-45.33 Diluted earnings per share(RMB/share)0.0302 0.0576-47.57 5 Weighted average return on equity(%)1.35 2.54-1.19 6 Net cash generated from/used in operating activities(RMB)2,299,183,493 2,243,903,241 2.46 Net cash per share generated from/used in operating activities(RMB/share)0.1700

16、 0.1656 2.66 31 March 2020 31 December 2019 Change(%)7 Total assets(RMB)172,763,657,093 164,844,884,926 4.80 8 Total owners equity(RMB)65,853,394,662 63,883,145,340 3.08 Owners equity attributable to the listed companys shareholders(RMB)30,393,949,636 30,111,946,237 0.94 9 Share capital(share)13,528

17、,438,719 13,528,438,719 0.00 10 Equity per share attributable to the listed companys shareholders(RMB/share)2.2467 2.2258 0.94 Note:In April 2019,the Company completed the handover of major assets in a restructuring.Therefore,the revenue data of Q1 2020 and Q1 2019 are not comparable as the former d

18、oes not include the January-March 2020 revenue generated by the restructured assets,while the latter comprises the January-March 2019 such revenue.On the same basis after the restructuring,revenue would be up by TCL Technology Group Corporation First Quarter Report 2020 6 15.31%and net profit attrib

19、utable to the listed companys shareholders would be down by 46.94%in Q1 2020 compared to Q1 2019.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)1

20、3,528,438,719 Fully diluted earnings per share based on the latest total share capital above:Dividend paid to preference shareholders -Fully diluted earnings per share based on the latest total share capital above(RMB/share)0.0302 Non-recurring gains and losses:Unit:RMB Item Q1 2020 Note Gain or los

21、s on disposal of non-current assets(inclusive of impairment allowance write-offs)270,735,649 Not applicable 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 uni

22、form standards)200,818,821 Not applicable Gain equal to the amount by which investment costs for the Company to obtain subsidiaries,associates and joint ventures are lower than the Companys enjoyable fair value of identifiable net assets of investees when making investments -Restructuring costs in s

23、taff arrangement,integration,etc.-Gain or loss on fair-value changes in held-for-trading and derivative financial assets and liabilities&income from disposal of held-for-trading and derivative financial assets and liabilities and other investments in debt obligations(exclusive of the effective porti

24、on of hedges that arise in the Companys ordinary course of business)-35,311 Not applicable Non-operating income and expense other than the above 131,273,286 Not applicable Other gains and losses that meet the definition of non-recurring gain/loss -Less:Corporate income tax 63,414,374 Not applicable

25、Non-controlling interests(net of tax)21,370,627 Not applicable Total 518,007,444-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 Pub

26、licNon-Recurring Gain/Loss TCL Technology Group Corporation First Quarter Report 2020 7 Items:Applicable Not applicable II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 2020 1.Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as wel

27、l as Holdings of Top 10 Shareholders Unit:share Number of ordinary shareholders at the period-end 635,909 Number of preferred 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 Rest

28、ricted shares held Shares in pledge or frozen Status Shares Li Dongsheng and his acting-in-concert party Domestic natural person/general legal person 8.56 1,157,872,411 609,636,366 Put in pledge by Li Dongsheng 275,000,000 Put in pledge by Jiutian Liancheng 344,899,521 Huizhou Investment Holding Co.

29、,Ltd.State-owned legal person 6.49 878,419,747 Tibet Tianfeng Enterprise Management Co.,Ltd.Domestic general legal person 3.08 417,344,415 China Securities Finance Corporation Limited Domestic general legal person 2.76 373,231,553 Hong Kong Securities Clearing Company Ltd.Foreign legal person 2.19 2

30、96,517,411 Central Huijin Asset Management Co.,Ltd.State-owned legal person 1.53 206,456,500 TCL Technology Group Corporation First Quarter Report 2020 8 TCL CorporationThe First Employee Stock Ownership Plan Domestic general legal person 0.73 99,148,115 Star Century Enterprises Limited Foreign lega

31、l person 0.67 90,532,347 90,532,347 Huizhou Investment and Development Co.,Ltd.State-owned legal person 0.56 75,504,587 ICBC Credit Suisse Asset Management Co.,Ltd.Agricultural Bank of ChinaICBC Credit Suisse China Securities Financial Assets Management Plan Domestic general legal person 0.55 74,761

32、,500 Top 10 unrestricted shareholders Name of shareholder Unrestricted shares held Shares by type Type Shares Huizhou Investment Holding Co.,Ltd.878,419,747 RMB-denominated ordinary stock 878,419,747 Li Dongsheng and his acting-in-concert party 548,236,045 RMB-denominated ordinary stock 548,236,045

33、Tibet Tianfeng Enterprise Management Co.,Ltd.417,344,415 RMB-denominated ordinary stock 417,344,415 China Securities Finance Corporation Limited 373,231,553 RMB-denominated ordinary stock 373,231,553 Hong Kong Securities Clearing Company Ltd.296,517,411 RMB-denominated ordinary stock 296,517,411 Cen

34、tral Huijin Asset Management Co.,Ltd.206,456,500 RMB-denominated ordinary stock 206,456,500 TCL CorporationThe First Employee Stock Ownership Plan 99,148,115 RMB-denominated ordinary stock 99,148,115 TCL Technology Group Corporation First Quarter Report 2020 9 Huizhou Investment and Development Co.,

35、Ltd.75,504,587 RMB-denominated ordinary stock 75,504,587 ICBC Credit Suisse Asset Management Co.,Ltd.Agricultural Bank of ChinaICBC Credit Suisse China Securities Financial Assets Management Plan 74,761,500 RMB-denominated ordinary stock 74,761,500 China Southern Asset Management Co.,Ltd.Agricultura

36、l Bank of ChinaSouthern China Securities Financial Assets Management Plan 74,761,500 RMB-denominated ordinary stock 74,761,500 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

37、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 1,157,872,411 shares.As certain partners of Jiutian Liancheng have quit from the company and as requested by these pa

38、rtners,the meeting of partners of Jiutian Liancheng has resolved to reduce shareholdings in the Company corresponding to the shares of these partners in the partnership.And these partners would withdraw from the partnership.On 27 February 2020,Jiutian Liancheng reduced,through bulk trading,its share

39、holdings in the Company by 63,876,000 shares,or 0.5%of the Companys total share capital.This shareholding reduction is in compliance with the Several Provisions on the Reduction of Shares Held in a Listed Company by the Shareholders,Directors,Supervisors and Senior Management of the Listed Company.W

40、ith confidence in the future development of the Company,Mr.Li Dongsheng and the incumbent senior management of the Company do not reduce their direct or indirect shareholdings in the Company.Mr.Li has also undertaken on 28 April 2020 not to reduce his shareholdings in the Company during the period f

41、rom the date when the resolutions of the first Board meeting convened to review the plan to acquire the 39.95%interest held by Wuhan Optics Valley Industrial Investment Co.,Ltd.in Wuhan China Star Optoelectronics Technology Co.,Ltd.through share offering,convertible corporate bonds offering and cash

42、 payment and raise the matching funds(hereinafter referred to as the“Transaction”)were disclosed in an announcement to the date of the completion/termination of the Transaction.Top 10 shareholders involved in securities margin trading(if any)None Indicate whether any of the top 10 ordinary sharehold

43、ers or the top 10 unrestricted ordinary shareholders of the Company conducted any promissory repo during the Reporting Period.Yes No TCL Technology Group Corporation First Quarter Report 2020 10 2.Number of Preferred Shareholders and Shareholdings of Top 10 of Them Applicable Not applicable TCL Tech

44、nology Group Corporation First Quarter Report 2020 11 Part III Directors Report I Overview Q1 2020 saw improvement in both supply and demand of the semi-conductor display industry,with rising prices for large size panels.However,the outbreak of COVID-19 slowed down the commercial activities of most

45、of the major countries,the economy was hit severely,and the momentum of the recovery slowed down.Facing such a sudden challenge from the business and operation,the Company focused on its strategic target,strengthened its cost effectiveness advantage,and kept on its aim as a global leading intelligen

46、t technology group.Since the fight against COVID-19,the Company has established the epidemic emergency reaction center,and actively carried out the epidemic monitoring and prevention well.The Company took the life and health of the employees as the top priority,and strengthened disinfection and ster

47、ilization,disease prevention,health management,and other measures.Supported by the independent digital system of the Company,the Company arranged employees at various places for decentralized work according to the actual situation.The operation and management functioned well with remote communicatio

48、n and coordination.The Shenzhen and Huizhou plants help Wuhan CSOT also.Confronted with the severe situation,all the employees united together and overcame the difficulties together to guarantee the safe and efficiency of the Company.On the same basis after the spin-off,in Q1 2020,the Company record

49、ed revenue of RMB13.74 billion,up 15.3%year-on-year;and the net profit attributable to the listed companys shareholders was RMB0.41 billion,down by 46.9%year-on-year while up by RMB0.37 billion compared with Q4 2019.Revenue of TCL CSOT was RMB9.14 billion,up by 25.3%year-on-year,with a net profit of

50、 RMB-0.174 billion,up by RMB0.159 billion compared with Q4 2019.Prices of large size panels saw an increase in the Reporting Period,but were still at the bottom of the historical price.By the ultimate efficiency and profitability advantage of TCL CSOT,the large size panel BU returned to profit compa

51、ring with Q4 2019.t3 LTPS and t4 AMOLED plants of small and mid-size panels in Wuhan has normal production and operation;however,the additional cost,like epidemic prevention,employees welfare,as well as additional logistic cost boosted the operation cost of this quarter and affect the financial perf

52、ormance.During the Reporting Period,the industrial finance,investment TCL Technology Group Corporation First Quarter Report 2020 12 and venture capital and other business of the Company achieved a net profit of RMB0.44 billion and improved the profitability of the Company during the trough of the in

53、dustry.The epidemic further increased the short term uncertainty of economy.Consumption and demand were contained.And the environment of the Company deteriorated currently.The Company stuck to its strategy,reduced the cost and controlled the expenses ultimately,strictly controlled the operation risk

54、,guaranteed the sufficient liquidity,and comprehensively built up the competitiveness and risk-resistance ability of the Company.In February,TCL CSOT exerted the advantages of management system and supply chain system,guaranteed t1,t2,and t6 production lines to operate at full capacity,and was the m

55、onthly shipment champion of TV panels in the world.t3 in Wuhan is the largest LTPS single plant in the world,and t4 spent less than one year from lighting the panel of AMOLED to mass production and shipment to brand clients,making swift improvement in the high-end product technology capability in a

56、fast manner.Construction of t7 plant of the Company proceeded smoothly.Crisis and opportunity are always together.The COVID-19 epidemic also hints the opportunities for the semi-conductor display industry.On the demand,the life style mainly based on remote interaction promotes the fast development o

57、f multiple-application display terminals and contents.Video,game,education,life,office and other sub-ecologies are getting more and more mature,which foster the long term demand for household smart TV,gaming monitors,education whiteboards,conference whiteboards,and other contents carrier and main in

58、teractive interfaces.During the Reporting Period,the Company deepened cooperation with strategic clients,launched large size“smart screen”,“wisdom screen”and other interactive products,jointly promoted the IoT ecology construction of multiple scenarios with large size household screens as core appli

59、cation.The market share of 55-inch TV panel of the Company ranked the 1st in the world,while 65-inch and 75-inch panels ranked the 2nd in the world.Looking forward,we believe that the long term trend of economic globalization and basic logic of industrial development will not be changed by the natio

60、nalism.The relative competitiveness and international comparative advantage of Chinas manufacturing industry are the foundation and guarantee of global industry division and value distribution.The semi-conductor display industry is one of the two core basic industries of electronic worldwide as well

61、 as one of the most promising TCL Technology Group Corporation First Quarter Report 2020 13 industries in China to take a leading position in the world.Chinese enterprises have established efficiency and scale advantages.The epidemic has accelerated the exit of overseas companies and the trend for t

62、he eco-system to transfer to China.Leading enterprises with relative competitive advantages and resource accumulation will embrace the opportunity of M&A and restructuring in the industry.As industry concentration increases rapidly,the rate of return on investment in the industry is expected to ente

63、r an up cycle.The Company will seize opportunities arising from the development of the industry and concentrate resources to grow bigger and stronger in the semi-conductor display industry.In the meantime,the Company will properly take new tracks in strategic emerging industries which are of a long

64、cycle,high-tech and capital intensive,so as to become a globally leading technology group.The impact of the epidemic increased the uncertainty of global economic growth,and there will be continued pressure in Q2 this year.However,the outlook and market demand are improving.The Company will keep on i

65、ts operation budget formulated at the beginning of this year.In the second half of this year,as the semi-conductor display industry is expected to enter a growing period of the cycle,we have confidence to overcome difficulties and challenges to further expand the market share and achieve a strong gr

66、owth this year.II Core Business Analysis The Company primarily consists of the following three business segments:the semi-conductor display and materials business,the industrial finance&investment business and the other businesses.TCL TECH.Semi-conductor display&materials TCL CSOT Juhua China Ray In

67、dustrial finance&investment TCL Financial TCL Capital Highly Wuhan CSOT TCL Technology Group Corporation First Quarter Report 2020 14(I)Semi-conductor Display and Material Business During the Reporting Period,TCL CSOT overcame difficulties and challenges,deployed the management advantages,and kept o

68、n expanding the market share.CSOT achieved sales area of 7.1 million square meters,up by 53%year-on-year,achieved revenue of RMB9.14 billion,up by 25.3%year-on-year,and EBITDA was RMB2.19 billion,up by 6.15%year-on-year.The prices of large size panel saw an increase but were still low in the cycle.C

69、ombined with impact of the COVID-19,TCL COST had a deficit of RMB0.174 billion during the Reporting Period.The large size panel production lines of TCL COST are all in Shenzhen,which are less affected by COVID-19.With the excellent management ability and the supply chain system,t1,t2 and t6 producti

70、on lines kept operating at full capacity,achieved sales area of 6.88 million square meters,up by 58%year-on-year,along with the sales volume as 11.912 million pieces,up by 27%year-on-year.The sales volume and area of LCD TV panels in February were the 1st in the world for the first time with a marke

71、t share of 18.8%and 19.6%respectively,of which the market shares of 32-inch and 55-inch products ranked 1st in the world while the market shares of 65-inch and 75-inch products ranked 2nd in the world.During the Reporting Period,the large size panel business recognized revenue of RMB6.19 billion,up

72、by 44.6%year-on-year.By the enlarging scale and improvement in operation and management efficiency,the large size panel business achieved profit in a single quarter and its performance was improved strikingly compared to the previous quarter.The small size panel production lines of TCL CSOT are all

73、in Wuhan.Because of its special production requirements,they need to be operated continuously.Confronted with the sudden outbreak of the epidemic,Wuhan CSOT took strict epidemic prevention and control measures,and guaranteed the safe production continuously.The major steps of the t3 LTPS production

74、line operated at full capacity.As the supply chain was affected by certain logistic constrains during the peak of the epidemic and the work resumption progress of employees,the production capacity of the module section lagged behind at the first but has gradually returned to normal.The ramp-up of fl

75、exible AMOLED of the t4 production line progressed as scheduled,but with an increase in one-off additional cost due to traffic control as well as stricter pandemic control and prevention measures during the epidemic.For the Reporting Period,the sales area of t3 and t4 plants of TCL CSOT was 0.22 mil

76、lion square meters,down by 25.4%year-on-year,with the sales volume as 16.58 million TCL Technology Group Corporation First Quarter Report 2020 15 pieces,down by 37.6%year-on-year.The small and mid-size panel business(including CDOT)recognized revenue of RMB2.95 billion.The sales volume of LTPS smart

77、 phone panels of the t3 production line ranked 3rd in the world.As for the t4 production line,after the foldable screen was shipped to international brand clients,the double-curved perforated screen was mass produced and shipped to the world famous phone makers for their flagship products.Looking fo

78、rward,the influence of the overseas epidemic situation is uncertain,which will cause some impact on the demand of the industry.However,the epidemic also accelerates the exit of inefficient production capacity of the industry,and generates new demands.In the long run,the restructuring and integration

79、 of the global industry will speed up,and industry concentration will further increase.With the resumption of the household large screen market and the fast growth of commercial display,the supply and demand of the industry will gradually resume its balance,with a good long term development prospect

80、.In 2020,the large size panel business of TCL CSOT will continue to improve product positioning and market share in addition to maintaining leadership in scale,technology and efficiency.In the small and mid-size panel business,LTPS will continue to grow by new customers and products to optimize the

81、business.The flexible AMOLED will be mass produced,and the breakthrough will be made in new business model and high-end products.TCL CSOT will keep on promoting ultimate cost reduction and profit increase,improve efficiency,further optimize product and customer structure,actively develop video inter

82、action and commercial product business,increase operating profit,and guarantee strong growth in sales area and revenue.(II)Industrial Finance and Investment Business TCL Financial mainly includes the Companys finance and the supply chain finance.As the operation of the business was affected by the C

83、OVID-19,the finance business focused on the liquidity,currency risk and active management of assets.The supply chain finance business took fully advantage of Internet platform,and continuously provided high quality and convenient receivables financing services with preferential prices for small and

84、medium enterprise partners affected by the epidemic.The industrial finance business will stick to the service concept of“partner finance”,focus on real industrial needs,and constantly enrich and deepen service.TCL Capital seeks investment opportunities in key fields of technological industries,inclu

85、ding new TCL Technology Group Corporation First Quarter Report 2020 16 display technology,semi-conductor and related businesses,as well as high-end materials and technological equipment,etc.,which promotes technology and synergy.At the same time,investment value is created.By the end of the Reportin

86、g Period,the scale of funds managed by TCL venture capital business reached RMB8.989 billion,and it has invested in 118 projects cumulatively.Currently,it owns stocks like,CATL,Dynanonic,Willsemi,and other listed companies,and the interest in Cambricon,Dkem,Transwarp,and other companies.Admiralty Ha

87、rbour Capital obtained No.6 license from HK SFC successfully during the Reporting Period and became an investment bank with full licenses.During the Reporting Period,it completed 5 bonds issuing and underwriting projects and 2 debt management projects.Its investment banking and asset management busi

88、ness developed healthily,with a superior performance.China Innovative Capital Management Limited has invested in more than 110 listed companies cumulatively with steady growth in performance.It invests mature companies related to the Companys businesses.At the end of the Reporting Period,the Company

89、 invests some listed companies directly,including a 19.07%interest in 712 Corp.(603712.SH),a 5.33%interest in Bank of Shanghai(601229.SH)and a 20.06%interest in Fantasia Holdings(01777.HK).TCL Technology Group Corporation First Quarter Report 2020 17 Part IV Significant Events I Major Changes of Mai

90、n Items in Financial Statements and Financial Indicators within the Reporting Period,as well as the Reasons for the Changes Item 31 March 2020/Q1 2020 31 December 2019/Q1 2019 Change(%)Reasons for the Changes Held-for-trading financial assets 9,343,312,655 6,074,750,918 53.8%Increase in investments

91、in wealth management products purchased Notes receivable 123,291,567 228,941,977-46.1%Collection of payments Prepayments 486,656,441 364,422,948 33.5%Increase in prepayments to suppliers R&D expense 971,078,841 1,548,470,972-37.3%Transfer-out due to reaching the intended use in the Current Period Ot

92、her non-current assets 5,619,189,251 4,250,658,887 32.2%Increase in prepayments for equipment Held-for-trading financial liabilities 731,256,011 188,220,097 288.5%Increase in liabilities associated with investments Customer deposits and interbank deposits 889,638,625 1,355,128,509-34.4%Decrease in d

93、eposits received by TCL Finance Co.,Ltd.Advances from customers 24,542,009 141,748,956-82.7%Adoption of the new accounting standard governing revenue Contractual liabilities 141,702,747 -100.0%Adoption of the new accounting standard governing revenue Payroll payable 733,687,839 1,094,216,685-32.9%Pa

94、yment of employee benefits Revenue 13,742,129,162 29,600,956,875-53.6%Asset restructuring Cost of sales 12,743,745,923 24,435,034,582-47.8%Asset restructuring Taxes and surcharges 38,902,775 194,829,143-80.0%Asset restructuring Selling expense 159,592,940 2,182,421,040-92.7%Asset restructuring Admin

95、istrative expense 321,790,541 900,923,674-64.3%Asset restructuring Credit impairment loss 7,478,551 23,000,942-67.5%Asset restructuring Other income 620,518,501 465,016,958 33.4%Increase in subsidies for R&D Gain on changes in fair value -205,634,246 -55,490,496 270.6%Changes in the fair value of fi

96、nancial instruments Net cash generated from/used in investing activities -9,123,262,761 -6,787,262,973 34.4%YoY decrease in investments withdrawn TCL Technology Group Corporation First Quarter Report 2020 18 Net cash generated from/used in financing activities 7,670,463,871 1,668,797,144 359.6%Incre

97、ase in financings 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 Share Repurchase&Changes in Shares 13 January 2020 http:/ Announcement on Change of the Company

98、 Name with the Industrial and Commercial Administration and Change of the Stock Name 7 February 2020 Announcement on Progress on the Capital Contribution to Equity Investment Fund&Related-Party Transaction 8 February 2020 Announcement on Intended Capital Increase to TCL CSOT 31 March 2020 Progress o

99、f any share repurchase:It is the key operational philosophy and mission of the Company to create value for and grow with the shareholders.In order to effectively protect shareholders interests and enhance shareholder value,the Company convened the 14th Meeting of the 6th Board of Directors on 10 Jan

100、uary 2019,at which the Proposal on the Repurchase of Certain Public Shares was approved.The Report on the Repurchase of Certain Public Shares was disclosed on 14 February 2019.In view of the trends on the secondary market of stocks,the Company convened the 15th Meeting of the 6th Board of Directors

101、on 19 March 2019,at which the Proposal on the Adjustment to the Upper Limit of the Share Repurchase Price.As such,the upper limit of the share repurchase price was adjusted from RMB3.80/share to RMB5.00/share.The Company implemented the share repurchase from 14 February 2019.Up to 10 January 2020,th

102、e Company has cumulatively repurchased 565,333,922 shares(or 4.18%of the Companys total share capital)in its special securities account for repurchases by way of centralized bidding,with the highest trading price being RMB4.17/share,the lowest trading price being RMB3.13/share,and the average tradin

103、g price being RMB3.42/share.The total transaction amount was RMB1,933.5965 million(exclusive of trading fees).The share repurchase has been implemented in a process in compliance with the applicable regulations including the Specific Rules of the Shenzhen Stock Exchange for Share Repurchase by Liste

104、d Companies.The actual number of shares repurchased,repurchase price and amount used were in compliance with the repurchase plan approved at the 14th Meeting of the 6th Board of Directors,with no difference compare to the disclosed Report on Share Repurchase.As such,the Company has completed the sha

105、re repurchase as per the repurchase plan that it disclosed.TCL Technology Group Corporation First Quarter Report 2020 19 Progress of any reduction of the repurchased shares through centralized bidding:Applicable Not applicable III Commitments that the Companys Actual Controller,Shareholders,Related

106、Parties,Acquirers,the Company Itself or Other Parties,Failed to Fulfill on Time during the Reporting Period Applicable Not applicable IV Operating Performance Forecast for H1 2020 Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of H1 2020,as well as expl

107、anation of why:Applicable Not applicable V Securities Investments Unit:RMB0,000 Security type Security code Security name Initial investment cost Measurement method Beginning carrying amount Purchased in Reporting Period Sold in Reporting Period Gain/loss in Reporting Period Ending carrying amount A

108、ccounting title Funding source Banks wealth management product N/A Agricultural Bank of China-“Huilifeng”Customized CNY Structured Deposit Product for Corporate Clients 145,000 At fair value through profit or loss -145,000-108 145,108 Held-for-trading financial assets Self-funded Banks wealth manage

109、ment product N/A Agricultural Bank of China-“Huilifeng”Customized CNY Structured Deposit Product for Corporate Clients 120,000 At fair value through profit or loss -120,000-170 120,170 Held-for-trading financial assets Self-funded TCL Technology Group Corporation First Quarter Report 2020 20 Banks w

110、ealth management product N/A Bank of China Principal-Guaranteed Wealth Management-CNYAQKF 100,000 At fair value through profit or loss -100,000-175 100,175 Held-for-trading financial assets Self-funded Banks wealth management product N/A Agricultural Bank of China-“Huilifeng”Customized CNY Structure

111、d Deposit Product for Corporate Clients 80,000 At fair value through profit or loss -80,000-60 80,060 Held-for-trading financial assets Self-funded Banks wealth management product N/A China Development Bank Win-Win CNY Wealth Management Product Tranche 2017666 50,000 At fair value through profit or

112、loss 50,753 -511 51,264 Held-for-trading financial assets Self-funded Banks wealth management product N/A 2020 Structured Deposit for Corporate Clients Pegged Exchange Rate Customized Product Tranche 1,286 34,950 At fair value through profit or loss -34,950-149 35,099 Held-for-trading financial asse

113、ts Self-funded Banks wealth management product N/A ICBC Wealth Management Corporate CNY Wealth Management 30,000 At fair value through profit or loss 30,487 -322 30,809 Held-for-trading financial assets Self-funded Banks wealth management product N/A Agricultural Bank of China“Anxin Deli”Directional

114、 RMB Wealth Management Product 30,000 At fair value through profit or loss 30,475 -307 30,782 Held-for-trading financial assets Self-funded TCL Technology Group Corporation First Quarter Report 2020 21 Trust plan N/A China Fortune International Trust CICC Xintou Collective Capital Trust Plan No.2 30

115、,000 At fair value through profit or loss -30,000 91 30,091 Held-for-trading financial assets Self-funded Banks wealth management product N/A Agricultural Bank of China“Anxin Deli”Directional RMB Wealth Management Product 20,000 At fair value through profit or loss 20,321 -207 20,528 Held-for-tradin

116、g financial assets Self-funded Other securities investments held at period-end 409,119-484,057 558,606 675,056-10,017 335,325-Total 1,049,069-616,093 1,068,556 675,056-7,917 979,412-Disclosure date of board announcement approving securities investment(if any)20 March 2019 Disclosure date of general

117、meeting announcement approving securities investment(if any)10 April 2019 VI Cash Entrusted for Wealth Management Unit:RMB0,000 Type Funding source Amount Undue amount Unrecovered overdue amount Banks wealth management product Self-funded 648,948 625,921 0 Securities firms wealth management product

118、Self-funded 115,000 45,000 0 Trust plan Self-funded 80,000 70,000 0 TCL Technology Group Corporation First Quarter Report 2020 22 Other Self-funded 26,944 26,944 0 Total 870,892 767,865 0 High-risk wealth management transactions with a significant single amount,low liquidity and no principal protect

119、ion:Applicable Not applicable Situation where the principal is expectedly irrecoverable or an impairment may be incurred:Applicable Not applicable VII Investments in Derivative Financial Instruments Funding source Mostly foreign-currency revenue Legal matters involved(if applicable)Not applicable Di

120、sclosure date of board announcement approving derivative investment(if any)28 April 2018 Disclosure date of general meeting announcement approving derivative investment(if any)Not applicable Analysis of risks and control measures associated with derivative investments held in Reporting Period(includ

121、ing 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(inc

122、luding 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 marke

123、t 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,whic

124、h 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 sellin

125、g 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 busi

126、ness 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 TCL Technology Group Corporation First Quarter Report 202

127、0 23 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 follow

128、s 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 instrument

129、s,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

130、 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-m

131、aking,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 mus

132、t 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.Operat

133、ions 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

134、 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 Compa

135、ny,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

136、 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 loss of RMB1.48 million for the Reporting Peri

137、od.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

138、 and specific accounting principles adopted for derivative investments in Reporting Period compared to last reporting period No major changes Opinion of independent directors on derivative investments and In view of the fact that certain raw materials of the core business of the Company are purchase

139、d overseas,a wide range of settlement currencies is involved.The Company reduces exchange TCL Technology Group Corporation First Quarter Report 2020 24 risk control losses and locks transaction costs by reasonable financial derivatives,which helps to reduce risk control costs and improve company com

140、petitiveness.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 ac

141、counting 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

142、 Q1 2020 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.Unit:RMB0,000 Type of contract Beginning amount Ending amount Gain/loss in Reporti

143、ng Period Ending contractual amount as%of the Companys ending net asset value Contractual amount Actual amount Contractual amount Actual amount Contractual amount Actual amount 1.Forward forex contracts 1,279,232 36,087 1,546,090 48,394-148 23.48 0.73 2.Interest rate swaps 528,098 15,843 581,687 17,

144、451 8.83 0.26 3.Currency swaps 215,565 14,399 357,018 21,972 5.42 0.33 Total 2,022,895 66,329 2,484,795 87,817-148 37.73 1.32 VIII Communications with the Investment Community such as Researches,Inquiries and Interviews during the Reporting Period Date Way of communication Type of communication part

145、y Index to main information communicated 15 January 2020 By visit Institution 16 January 2020 By visit Institution 31 March 2020 By visit and by phone Institution IX Irregularities in the Provision of Guarantees Applicable Not applicable X Occupation of the Companys Capital by the Controlling Shareh

146、older or Its Related Parties for Non-Operating Purposes Applicable Not applicable TCL Technology Group Corporation First Quarter Report 2020 25 Part V Financial Statements I Financial Statements 1.Consolidated Balance Sheet Prepared by TCL Technology Group Corporation Unit:RMB Item 31 March 2020 31

147、December 2019 Current assets:Monetary assets 19,770,216,093.00 18,648,184,663.00 Settlement reserve Interbank loans granted Held-for-trading financial assets 9,343,312,655.00 6,074,750,918.00 Derivative financial assets 221,068,889.00 159,035,592.00 Notes receivable 123,291,567.00 228,941,977.00 Acc

148、ounts receivable 8,550,847,668.00 8,340,353,992.00 Accounts receivable financing Prepayments 486,656,441.00 364,422,948.00 Premiums receivable Reinsurance receivables Receivable reinsurance contract reserve Other receivables 3,568,442,598.00 2,750,041,514.00 Including:Interest receivable Dividends r

149、eceivable 5,771,104.00 Financial assets purchased under resale agreements Inventories 5,059,806,606.00 5,677,963,123.00 Contractual assets Assets classified as held for sale Current portion of non-current assets Other current assets 7,109,383,796.00 5,911,827,639.00 Total current assets 54,233,026,3

150、13.00 48,155,522,366.00 Non-current assets:TCL Technology Group Corporation First Quarter Report 2020 26 Loans and advances to customers 2,082,761,822.00 3,637,768,065.00 Investments in debt obligations 19,973,914.00 20,373,264.00 Investments in other debt obligations Long-term receivables Long-term

151、 equity investments 17,883,198,011.00 17,194,284,162.00 Investments in other equity instruments 254,138,926.00 279,883,515.00 Other non-current financial assets 2,622,182,615.00 2,542,689,268.00 Investment property 84,107,837.00 82,272,964.00 Fixed assets 44,171,551,061.00 45,459,070,330.00 Construc

152、tion in progress 35,968,034,536.00 33,578,289,802.00 Productive living assets Oil and gas assets Use rights assets Intangible assets 5,987,233,025.00 5,684,584,119.00 R&D expense 971,078,841.00 1,548,470,972.00 Goodwill 2,452,186.00 2,452,186.00 Long-term prepaid expense 1,965,190,848.00 1,567,690,9

153、92.00 Deferred income tax assets 899,537,907.00 840,874,034.00 Other non-current assets 5,619,189,251.00 4,250,658,887.00 Total non-current assets 118,530,630,780.00 116,689,362,560.00 Total assets 172,763,657,093.00 164,844,884,926.00 Current liabilities:Short-term borrowings 11,187,904,691.00 12,0

154、69,657,099.00 Borrowings from the central bank 741,908,082.00 573,222,113.00 Interbank loans obtained Held-for-trading financial liabilities 731,256,011.00 188,220,097.00 Derivative financial liabilities 164,796,874.00 84,704,591.00 Notes payable 1,802,949,640.00 1,720,401,552.00 Accounts payable 11

155、,321,827,555.00 11,549,133,141.00 Advances from customers 24,542,009.00 141,748,956.00 Contractual liabilities 141,702,747.00 Financial assets sold under repurchase agreements TCL Technology Group Corporation First Quarter Report 2020 27 Customer deposits and interbank deposits 889,638,625.00 1,355,

156、128,509.00 Payables for acting trading of securities Payables for underwriting of securities Payroll payable 733,687,839.00 1,094,216,685.00 Taxes payable 299,992,111.00 226,806,037.00 Other payables 11,816,266,457.00 12,293,565,901.00 Including:Interest payable Dividends payable 11,058,239.00 11,05

157、8,225.00 Handling charges and commissions payable Reinsurance payables Liabilities directly associated with assets classified as held for sale Current portion of non-current liabilities 1,391,848,421.00 1,691,963,496.00 Other current liabilities 38,708,414.00 69,021,962.00 Total current liabilities

158、41,287,029,476.00 43,057,790,139.00 Non-current liabilities:Insurance contract reserve Long-term borrowings 43,569,455,600.00 38,512,059,200.00 Bonds payable 19,475,871,500.00 16,479,085,461.00 Including:Preferred shares Perpetual bonds Lease liabilities Long-term payables 24,210,128.00 24,206,057.0

159、0 Long-term payroll payable 22,816,497.00 23,017,619.00 Provisions Deferred income 1,578,324,797.00 1,912,421,056.00 Deferred income tax liabilities 952,554,433.00 952,677,822.00 Other non-current liabilities 482,232.00 Total non-current liabilities 65,623,232,955.00 57,903,949,447.00 Total liabilit

160、ies 106,910,262,431.00 100,961,739,586.00 Owners equity:Share capital 13,528,438,719.00 13,528,438,719.00 TCL Technology Group Corporation First Quarter Report 2020 28 Other equity instruments Including:Preferred shares Perpetual bonds Capital reserves 5,726,522,215.00 5,716,667,384.00 Less:Treasury

161、 stock 1,952,956,751.00 1,952,956,751.00 Other comprehensive income -670,059,091.00-534,081,855.00 Specific reserve Surplus reserves 2,238,368,089.00 2,238,368,089.00 General reserve 360,766.00 360,766.00 Retained earnings 11,523,275,689.00 11,115,149,885.00 Total equity attributable to owners of th

162、e Company as the parent 30,393,949,636.00 30,111,946,237.00 Non-controlling interests 35,459,445,026.00 33,771,199,103.00 Total owners equity 65,853,394,662.00 63,883,145,340.00 Total liabilities and owners equity 172,763,657,093.00 164,844,884,926.00 Legal representative:Li Dongsheng Person-in-char

163、ge 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 2020 31 December 2019 Current assets:Monetary assets 15,532,031,977.00 3,966,899,016.00 Held-for-trading financial assets 3,254,410,434.00 2,969,1

164、05,570.00 Derivative financial assets 34,182,661.00 Notes receivable 19,539,531.00 22,514,486.00 Accounts receivable 510,818,457.00 445,089,599.00 Accounts receivable financing Prepayments 95,802,083.00 97,127,177.00 Other receivables 17,874,324,003.00 17,129,473,443.00 Including:Interest receivable

165、 Dividends receivable 4,833,542,415.00 4,211,824,115.00 Inventories 37,016,902.00 14,868,714.00 Contractual assets TCL Technology Group Corporation First Quarter Report 2020 29 Assets classified as held for sale Current portion of non-current assets Other current assets 19,493,926.00 6,471,074.00 To

166、tal current assets 37,377,619,974.00 24,651,549,079.00 Non-current assets:Investments in debt obligations Investments in other debt obligations Long-term receivables Long-term equity investments 39,929,455,258.00 39,297,272,437.00 Investments in other equity instruments 15,000,000.00 15,000,000.00 O

167、ther non-current financial assets 1,561,751,746.00 1,540,912,643.00 Investment property 91,637,927.00 92,622,685.00 Fixed assets 52,301,387.00 54,238,373.00 Construction in progress 12,965,861.00 1,241,308.00 Productive living assets Oil and gas assets Use rights assets Intangible assets 18,336,269.

168、00 19,144,884.00 R&D expense Goodwill Long-term prepaid expense 452,021,127.00 454,968,882.00 Deferred income tax assets Other non-current assets Total non-current assets 42,133,469,575.00 41,475,401,212.00 Total assets 79,511,089,549.00 66,126,950,291.00 Current liabilities:Short-term borrowings 5,

169、736,238,571.00 6,484,481,271.00 Held-for-trading financial liabilities Derivative financial liabilities 5,980,760.00 Notes payable 36,068,297.00 30,282,528.00 Accounts payable 441,590,603.00 424,224,599.00 Advances from customers 80,718.00 17,470,841.00 Contractual liabilities 15,676,793.00 TCL Tech

170、nology Group Corporation First Quarter Report 2020 30 Payroll payable 71,036,306.00 125,095,153.00 Taxes payable 9,821,553.00 10,354,865.00 Other payables 16,329,492,284.00 9,347,609,813.00 Including:Interest payable Dividends payable 11,057,515.00 11,057,515.00 Liabilities directly associated with

171、assets classified as held for sale Current portion of non-current liabilities 963,448,166.00 847,326,922.00 Other current liabilities Total current liabilities 23,603,453,291.00 17,292,826,752.00 Non-current liabilities:Long-term borrowings 5,320,000,000.00 2,110,000,000.00 Bonds payable 19,475,871,

172、500.00 16,479,085,461.00 Including:Preferred shares Perpetual bonds Lease liabilities Long-term payables Long-term payroll payable 22,816,497.00 23,017,619.00 Provisions Deferred income 44,414,600.00 51,561,600.00 Deferred income tax liabilities Other non-current liabilities Total non-current liabil

173、ities 24,863,102,597.00 18,663,664,680.00 Total liabilities 48,466,555,888.00 35,956,491,432.00 Owners equity:Share capital 13,528,438,719.00 13,528,438,719.00 Other equity instruments Including:Preferred shares Perpetual bonds Capital reserves 8,382,956,975.00 8,382,776,032.00 Less:Treasury stock 1

174、,952,956,751.00 1,952,956,751.00 Other comprehensive income 56,064,337.00 56,064,337.00 Specific reserve Surplus reserves 2,036,303,650.00 2,036,303,650.00 TCL Technology Group Corporation First Quarter Report 2020 31 Retained earnings 8,993,726,731.00 8,119,832,872.00 Total owners equity 31,044,533

175、,661.00 30,170,458,859.00 Total liabilities and owners equity 79,511,089,549.00 66,126,950,291.00 3.Consolidated Income Statement Unit:RMB Item Q1 2020 Q1 2019 1.Revenue 13,789,536,228.00 29,650,896,518.00 Including:Operating revenue 13,742,129,162.00 29,600,956,875.00 Interest income 47,407,066.00

176、49,939,643.00 Premium income Handling charge and commission income 2.Costs and expenses 14,493,594,692.00 29,202,984,510.00 Including:Cost of sales 12,743,745,923.00 24,435,034,582.00 Interest expense 7,195,716.00 18,216,588.00 Handling charge and commission expense Surrenders Net claims paid Net am

177、ount provided as insurance contract reserve Expenditure on policy dividends Reinsurance premium expense Taxes and surcharges 38,902,775.00 194,829,143.00 Selling expense 159,592,940.00 2,182,421,040.00 Administrative expense 321,790,541.00 900,923,674.00 R&D expense 837,453,524.00 1,162,045,199.00 F

178、inance costs 384,913,273.00 309,514,284.00 Including:Interest expense 553,121,614.00 659,007,115.00 Interest income 162,367,782.00 199,963,103.00 Add:Other income 620,518,501.00 465,016,958.00 Return on investment(“-”for loss)694,268,712.00 536,480,452.00 TCL Technology Group Corporation First Quart

179、er Report 2020 32 Including:Share of profit or loss of joint ventures and associates 300,625,432.00 233,511,429.00 Income from the derecognition of financial assets at amortized cost(“-”for loss)Foreign exchange gain(“-”for loss)182,919.00-2,170,320.00 Net gain on exposure hedges(“-”for loss)Gain on

180、 changes in fair value(“-”for loss)-205,634,246.00-55,490,496.00 Credit impairment loss(“-”for loss)-7,478,551.00-23,000,942.00 Asset impairment loss(“-”for loss)-232,590,984.00-171,248,740.00 Asset disposal income(“-”for loss)6,658.00-410,714.00 3.Operating profit(“-”for loss)165,214,545.00 1,197,0

181、88,206.00 Add:Non-operating income 141,925,394.00 30,958,150.00 Less:Non-operating expense 10,715,126.00 8,628,523.00 4.Profit before tax(“-”for loss)296,424,813.00 1,219,417,833.00 Less:Income tax expense 25,846,940.00 213,340,303.00 5.Net profit(“-”for net loss)270,577,873.00 1,006,077,530.00 5.1

182、By operating continuity 5.1.1 Net profit from continuing operations(“-”for net loss)270,577,873.00 1,006,077,530.00 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 408,125,802.00 779,088,389.00 5.2.1

183、Net profit attributable to non-controlling interests -137,547,929.00 226,989,141.00 6.Other comprehensive income,net of tax -201,191,608.00 360,421,531.00 Attributable to owners of the Company as the parent -135,977,236.00 182,670,669.00 6.1 Items that will not be reclassified to profit or loss -24,

184、540,407.00 TCL Technology Group Corporation First Quarter Report 2020 33 6.1.1 Changes caused by remeasurements on defined benefit pension 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 i

185、n other equity instruments -24,540,407.00 6.1.4 Changes in the fair value of the companys credit risks 6.1.5 Other 6.2 Items that will be reclassified to profit or loss -111,436,829.00 182,670,669.00 6.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method

186、 8,800,657.00-219,502,741.00 6.2.2 Changes in the fair value of investments in other debt obligations 6.2.3 Other comprehensive income arising from the reclassification of financial assets 6.2.4 Allowance for credit impairments in investments in other debt obligations 6.2.5 Reserve for cash flow hed

187、ges -31,380,198.00-1,824,916.00 6.2.6 Differences arising from the translation of foreign currency-denominated financial statements-88,857,288.00 373,035,904.00 6.2.7 Other 30,962,422.00 Attributable to non-controlling interests -65,214,372.00 177,750,862.00 7.Total comprehensive income 69,386,265.0

188、0 1,366,499,061.00 Attributable to owners of the Company as the parent 272,148,566.00 961,759,058.00 Attributable to non-controlling interests -202,762,301.00 404,740,003.00 8.Earnings per share 8.1 Basic earnings per share 0.0316 0.0578 8.2 Diluted earnings per share 0.0302 0.0576 TCL Technology Gr

189、oup Corporation First Quarter Report 2020 34 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 2020 Q1 2019 1.Operating revenue 277,992,615.00 391,405,

190、520.00 Less:Cost of sales 186,288,369.00 336,142,776.00 Taxes and surcharges 884,082.00 5,415,554.00 Selling expense 5,539,685.00 7,861,046.00 Administrative expense 44,402,485.00 59,858,577.00 R&D expense 22,086,746.00 13,988,515.00 Finance costs 269,483,384.00 174,605,997.00 Including:Interest exp

191、ense 403,477,889.00 343,515,714.00 Interest income 134,103,744.00 202,474,056.00 Add:Other income 4,807,000.00 3,481,500.00 Return on investment(“-”for loss)899,034,332.00 351,140,692.00 Including:Share of profit or loss of joint ventures and associates 265,646,202.00 225,928,594.00 Income from the

192、derecognition of financial assets at amortized cost(“-”for loss)Net gain on exposure hedges(“-”for loss)Gain on changes in fair value(“-”for loss)81,456,431.00-75,625,521.00 Credit impairment loss(“-”for loss)995.00 Asset impairment loss(“-”for loss)Asset disposal income(“-”for loss)12,900.00 2.Oper

193、ating profit(“-”for loss)734,606,622.00 72,542,626.00 Add:Non-operating income 139,294,872.00 8,843,380.00 Less:Non-operating expense 7,636.00 3.Profit before tax(“-”for loss)873,893,858.00 81,386,006.00 Less:Income tax expense TCL Technology Group Corporation First Quarter Report 2020 35 4.Net prof

194、it(“-”for net loss)873,893,858.00 81,386,006.00 4.1 Net profit from continuing operations(“-”for net loss)873,893,858.00 81,386,006.00 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 C

195、hanges caused by remeasurements on defined benefit pension 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 of the companys credi

196、t risks 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 investments in other debt obligations 5.2.3 Other comprehensive income arising from the re

197、classification of financial assets 5.2.4 Allowance for credit impairments in investments in other debt obligations 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 873,893,8

198、58.00 81,386,006.00 7.Earnings per share TCL Technology Group Corporation First Quarter Report 2020 36 7.1 Basic earnings per share 0.0676 0.0060 7.2 Diluted earnings per share 0.0646 0.0060 5.Consolidated Cash Flow Statement Unit:RMB Item Q1 2020 Q1 2019 1.Cash flows from operating activities:Proce

199、eds from sale of commodities and rendering of services 14,850,100,323.00 29,948,578,250.00 Net increase in customer deposits and interbank deposits -465,489,884.00-260,489,195.00 Net increase in borrowings from the central bank 168,685,969.00-102,574,602.00 Net increase in loans from other financial

200、 institutions 100,000,000.00 Premiums received on original insurance contracts Net proceeds from reinsurance Net increase in deposits and investments of policy holders Interest,handling charges and commissions received 47,407,066.00 50,234,049.00 Net increase in interbank loans obtained Net increase

201、 in proceeds from repurchase transactions Net proceeds from acting trading of securities Tax rebates 608,001,845.00 1,527,267,914.00 Cash generated from other operating activities 467,981,716.00 611,209,398.00 Subtotal of cash generated from operating activities 15,676,687,035.00 31,874,225,814.00 P

202、ayments for commodities and services 11,369,283,220.00 22,624,066,728.00 Net increase in loans and advances to customers -1,555,006,243.00 101,081,629.00 Net increase in deposits in the central bank and in interbank loans granted -202,132,448.00-73,444,006.00 TCL Technology Group Corporation First Q

203、uarter Report 2020 37 Payments for claims on original insurance contracts Net increase in interbank loans granted Interest,handling charges and commissions paid Policy dividends paid Cash paid to and for employees 1,589,132,206.00 2,262,538,883.00 Taxes paid 844,676,500.00 1,528,965,251.00 Cash used

204、 in other operating activities 1,331,550,307.00 3,187,114,088.00 Subtotal of cash used in operating activities 13,377,503,542.00 29,630,322,573.00 Net cash generated from/used in operating activities 2,299,183,493.00 2,243,903,241.00 2.Cash flows from investing activities:Proceeds from disinvestment

205、 4,618,844,632.00 6,994,293,557.00 Return on investment 76,434,103.00 107,806,341.00 Net proceeds from the disposal of fixed assets,intangible assets and other long-lived assets 23,052.00 12,094,929.00 Net proceeds from the disposal of subsidiaries and other business units 197,487,161.00 857,657,948

206、.00 Cash generated from other investing activities Subtotal of cash generated from investing activities 4,892,788,948.00 7,971,852,775.00 Payments for the acquisition of fixed assets,intangible assets and other long-lived assets 4,982,864,051.00 6,728,764,686.00 Payments for investments 9,033,187,65

207、8.00 7,860,153,161.00 Net increase in pledged loans granted Net payments for the acquisition of subsidiaries and other business units 170,197,901.00 Cash used in other investing activities Subtotal of cash used in investing activities 14,016,051,709.00 14,759,115,748.00 Net cash generated from/used

208、in investing activities -9,123,262,761.00-6,787,262,973.00 3.Cash flows from financing activities:TCL Technology Group Corporation First Quarter Report 2020 38 Capital contributions received 2,260,200,000.00 1,717,989,160.00 Including:Capital contributions by non-controlling interests to subsidiarie

209、s 2,260,200,000.00 1,717,989,160.00 Borrowings obtained 13,646,741,209.00 11,450,834,740.00 Cash generated from other financing activities Subtotal of cash generated from financing activities 15,906,941,209.00 13,168,823,900.00 Repayments of borrowings 7,266,785,974.00 10,215,385,719.00 Payments for

210、 interest and dividends 640,411,211.00 633,721,052.00 Including:Dividends paid by subsidiaries to non-controlling interests 26,392,667.00 29,586,633.00 Cash used in other financing activities 329,280,153.00 650,919,985.00 Subtotal of cash used in financing activities 8,236,477,338.00 11,500,026,756.

211、00 Net cash generated from/used in financing activities 7,670,463,871.00 1,668,797,144.00 4.Effect of foreign exchange rate changes on cash and cash equivalents-26,758,509.00 141,176,713.00 5.Net increase in cash and cash equivalents 819,626,094.00-2,733,385,875.00 Add:Cash and cash equivalents,begi

212、nning of the period 17,637,742,929.00 25,702,383,482.00 6.Cash and cash equivalents,end of the period 18,457,369,023.00 22,968,997,607.00 6.Cash Flow Statement of the Company as the Parent Unit:RMB Item Q1 2020 Q1 2019 1.Cash flows from operating activities:Proceeds from sale of commodities and rend

213、ering of services 189,757,308.00 323,551,914.00 Tax rebates 332,021.00 Cash generated from other operating activities 8,341,488,901.00 6,660,157,054.00 Subtotal of cash generated from operating activities 8,531,246,209.00 6,984,040,989.00 Payments for commodities and services 185,587,256.00 362,320,

214、629.00 TCL Technology Group Corporation First Quarter Report 2020 39 Cash paid to and for employees 56,588,057.00 44,495,298.00 Taxes paid 8,220,063.00 18,593,335.00 Cash used in other operating activities 316,261,198.00 2,809,080,047.00 Subtotal of cash used in operating activities 566,656,574.00 3

215、,234,489,309.00 Net cash generated from/used in operating activities 7,964,589,635.00 3,749,551,680.00 2.Cash flows from investing activities:Proceeds from disinvestment 1,365,307,500.00 5,542,600,000.00 Return on investment 11,669,831.00 54,718,062.00 Net proceeds from the disposal of fixed assets,

216、intangible assets and other long-lived assets 88,286.00 Net proceeds from the disposal of subsidiaries and other business units Cash generated from other investing activities Subtotal of cash generated from investing activities 1,376,977,331.00 5,597,406,348.00 Payments for the acquisition of fixed

217、assets,intangible assets and other long-lived assets 5,391,188.00 4,812,806.00 Payments for investments 1,969,900,000.00 1,992,870,615.00 Net payments for the acquisition of subsidiaries and other business units Cash used in other investing activities Subtotal of cash used in investing activities 1,

218、975,291,188.00 1,997,683,421.00 Net cash generated from/used in investing activities -598,313,857.00 3,599,722,927.00 3.Cash flows from financing activities:Capital contributions received Borrowings obtained 8,612,000,000.00 3,810,956,000.00 Cash generated from other financing activities Subtotal of

219、 cash generated from financing activities 8,612,000,000.00 3,810,956,000.00 Repayments of borrowings 4,272,903,033.00 7,080,956,000.00 Payments for interest and dividends 168,428,437.00 323,287,951.00 TCL Technology Group Corporation First Quarter Report 2020 40 Cash used in other financing activiti

220、es 1,332,082.00 650,919,985.00 Subtotal of cash used in financing activities 4,442,663,552.00 8,055,163,936.00 Net cash generated from/used in financing activities 4,169,336,448.00-4,244,207,936.00 4.Effect of foreign exchange rate changes on cash and cash equivalents-3,131,768.00-30,210,032.00 5.Ne

221、t increase in cash and cash equivalents 11,532,480,458.00 3,074,856,639.00 Add:Cash and cash equivalents,beginning of the period 3,941,090,221.00 1,328,680,629.00 6.Cash and cash equivalents,end of the period 15,473,570,679.00 4,403,537,268.00 II Adjustments to the Financial Statements 1.Adjustments

222、 to the Financial Statements at the Beginning of the First Execution Year of any New Standards Governing Revenue or Leases in 2020 The consolidated balance sheet:Unit:RMB Item 31 December 2019 1 January 2020 Adjustment Current assets:Monetary assets 18,648,184,663.00 18,648,184,663.00 Settlement res

223、erve Interbank loans granted Held-for-trading financial assets 6,074,750,918.00 6,074,750,918.00 Derivative financial assets 159,035,592.00 159,035,592.00 Notes receivable 228,941,977.00 228,941,977.00 Accounts receivable 8,340,353,992.00 8,340,353,992.00 Accounts receivable financing Prepayments 36

224、4,422,948.00 364,422,948.00 Premiums receivable Reinsurance receivables Receivable reinsurance contract reserve Other receivables 2,750,041,514.00 2,750,041,514.00 TCL Technology Group Corporation First Quarter Report 2020 41 Including:Interest receivable Dividends receivable 5,771,104.00 5,771,104.

225、00 Financial assets purchased under resale agreements Inventories 5,677,963,123.00 5,677,963,123.00 Contractual assets Assets classified as held for sale Current portion of non-current assets Other current assets 5,911,827,639.00 5,911,827,639.00 Total current assets 48,155,522,366.00 48,155,522,366

226、.00 Non-current assets:Loans and advances to customers 3,637,768,065.00 3,637,768,065.00 Investments in debt obligations 20,373,264.00 20,373,264.00 Investments in other debt obligations Long-term receivables Long-term equity investments 17,194,284,162.00 17,194,284,162.00 Investments in other equit

227、y instruments 279,883,515.00 279,883,515.00 Other non-current financial assets 2,542,689,268.00 2,542,689,268.00 Investment property 82,272,964.00 82,272,964.00 Fixed assets 45,459,070,330.00 45,459,070,330.00 Construction in progress 33,578,289,802.00 33,578,289,802.00 Productive living assets Oil

228、and gas assets Use rights assets Intangible assets 5,684,584,119.00 5,684,584,119.00 R&D expense 1,548,470,972.00 1,548,470,972.00 Goodwill 2,452,186.00 2,452,186.00 TCL Technology Group Corporation First Quarter Report 2020 42 Long-term prepaid expense 1,567,690,992.00 1,567,690,992.00 Deferred inc

229、ome tax assets 840,874,034.00 840,874,034.00 Other non-current assets 4,250,658,887.00 4,250,658,887.00 Total non-current assets 116,689,362,560.00 116,689,362,560.00 Total assets 164,844,884,926.00 164,844,884,926.00 Current liabilities:Short-term borrowings 12,069,657,099.00 12,069,657,099.00 Borr

230、owings from the central bank 573,222,113.00 573,222,113.00 Interbank loans obtained Held-for-trading financial liabilities 188,220,097.00 188,220,097.00 Derivative financial liabilities 84,704,591.00 84,704,591.00 Notes payable 1,720,401,552.00 1,720,401,552.00 Accounts payable 11,549,133,141.00 11,

231、549,133,141.00 Advances from customers 141,748,956.00 5,499,574.00-136,249,382.00 Contractual liabilities 133,818,206.00 133,818,206.00 Financial assets sold under repurchase agreements Customer deposits and interbank deposits 1,355,128,509.00 1,355,128,509.00 Payables for acting trading of securiti

232、es Payables for underwriting of securities Payroll payable 1,094,216,685.00 1,094,216,685.00 Taxes payable 226,806,037.00 229,237,213.00 2,431,176.00 Other payables 12,293,565,901.00 12,293,565,901.00 Including:Interest payable Dividends payable 11,058,225.00 11,058,225.00 Handling charges and commi

233、ssions payable Reinsurance payables TCL Technology Group Corporation First Quarter Report 2020 43 Liabilities directly associated with assets classified as held for sale Current portion of non-current liabilities 1,691,963,496.00 1,691,963,496.00 Other current liabilities 69,021,962.00 69,021,962.00

234、 Total current liabilities 43,057,790,139.00 43,057,790,139.00 Non-current liabilities:Insurance contract reserve Long-term borrowings 38,512,059,200.00 38,512,059,200.00 Bonds payable 16,479,085,461.00 16,479,085,461.00 Including:Preferred shares Perpetual bonds Lease liabilities Long-term payables

235、 24,206,057.00 24,206,057.00 Long-term payroll payable 23,017,619.00 23,017,619.00 Provisions Deferred income 1,912,421,056.00 1,912,421,056.00 Deferred income tax liabilities 952,677,822.00 952,677,822.00 Other non-current liabilities 482,232.00 482,232.00 Total non-current liabilities 57,903,949,4

236、47.00 57,903,949,447.00 Total liabilities 100,961,739,586.00 100,961,739,586.00 Owners equity:Share capital 13,528,438,719.00 13,528,438,719.00 Other equity instruments Including:Preferred shares Perpetual bonds Capital reserves 5,716,667,384.00 5,716,667,384.00 Less:Treasury stock 1,952,956,751.00

237、1,952,956,751.00 Other comprehensive income -534,081,855.00-534,081,855.00 Specific reserve TCL Technology Group Corporation First Quarter Report 2020 44 Surplus reserves 2,238,368,089.00 2,238,368,089.00 General reserve 360,766.00 360,766.00 Retained earnings 11,115,149,885.00 11,115,149,885.00 Tot

238、al equity attributable to owners of the Company as the parent 30,111,946,237.00 30,111,946,237.00 Non-controlling interests 33,771,199,103.00 33,771,199,103.00 Total owners equity 63,883,145,340.00 63,883,145,340.00 Total liabilities and owners equity 164,844,884,926.00 164,844,884,926.00 The balanc

239、e sheet of the Company as the parent:Unit:RMB Item 31 December 2019 1 January 2020 Adjustment Current assets:Monetary assets 3,966,899,016.00 3,966,899,016.00 Held-for-trading financial assets 2,969,105,570.00 2,969,105,570.00 Derivative financial assets Notes receivable 22,514,486.00 22,514,486.00

240、Accounts receivable 445,089,599.00 445,089,599.00 Accounts receivable financing Prepayments 97,127,177.00 97,127,177.00 Other receivables 17,129,473,443.00 17,129,473,443.00 Including:Interest receivable Dividends receivable 4,211,824,115.00 4,211,824,115.00 Inventories 14,868,714.00 14,868,714.00 C

241、ontractual assets Assets classified as held for sale Current portion of non-current assets Other current assets 6,471,074.00 6,471,074.00 Total current assets 24,651,549,079.00 24,651,549,079.00 Non-current assets:TCL Technology Group Corporation First Quarter Report 2020 45 Investments in debt obli

242、gations Investments in other debt obligations Long-term receivables Long-term equity investments 39,297,272,437.00 39,297,272,437.00 Investments in other equity instruments 15,000,000.00 15,000,000.00 Other non-current financial assets 1,540,912,643.00 1,540,912,643.00 Investment property 92,622,685

243、.00 92,622,685.00 Fixed assets 54,238,373.00 54,238,373.00 Construction in progress 1,241,308.00 1,241,308.00 Productive living assets Oil and gas assets Use rights assets Intangible assets 19,144,884.00 19,144,884.00 R&D expense Goodwill Long-term prepaid expense 454,968,882.00 454,968,882.00 Defer

244、red income tax assets Other non-current assets Total non-current assets 41,475,401,212.00 41,475,401,212.00 Total assets 66,126,950,291.00 66,126,950,291.00 Current liabilities:Short-term borrowings 6,484,481,271.00 6,484,481,271.00 Held-for-trading financial liabilities Derivative financial liabili

245、ties 5,980,760.00 5,980,760.00 Notes payable 30,282,528.00 30,282,528.00 Accounts payable 424,224,599.00 424,224,599.00 Advances from customers 17,470,841.00 80,718.00-17,390,123.00 Contractual liabilities 17,390,123.00 17,390,123.00 Payroll payable 125,095,153.00 125,095,153.00 TCL Technology Group

246、 Corporation First Quarter Report 2020 46 Taxes payable 10,354,865.00 10,354,865.00 Other payables 9,347,609,813.00 9,347,609,813.00 Including:Interest payable Dividends payable 11,057,515.00 11,057,515.00 Liabilities directly associated with assets classified as held for sale Current portion of non

247、-current liabilities 847,326,922.00 847,326,922.00 Other current liabilities Total current liabilities 17,292,826,752.00 17,292,826,752.00 Non-current liabilities:Long-term borrowings 2,110,000,000.00 2,110,000,000.00 Bonds payable 16,479,085,461.00 16,479,085,461.00 Including:Preferred shares Perpe

248、tual bonds Lease liabilities Long-term payables Long-term payroll payable 23,017,619.00 23,017,619.00 Provisions Deferred income 51,561,600.00 51,561,600.00 Deferred income tax liabilities Other non-current liabilities Total non-current liabilities 18,663,664,680.00 18,663,664,680.00 Total liabiliti

249、es 35,956,491,432.00 35,956,491,432.00 Owners equity:Share capital 13,528,438,719.00 13,528,438,719.00 Other equity instruments Including:Preferred shares Perpetual bonds TCL Technology Group Corporation First Quarter Report 2020 47 Capital reserves 8,382,776,032.00 8,382,776,032.00 Less:Treasury st

250、ock 1,952,956,751.00 1,952,956,751.00 Other comprehensive income 56,064,337.00 56,064,337.00 Specific reserve Surplus reserves 2,036,303,650.00 2,036,303,650.00 Retained earnings 8,119,832,872.00 8,119,832,872.00 Total owners equity 30,170,458,859.00 30,170,458,859.00 Total liabilities and owners eq

251、uity 66,126,950,291.00 66,126,950,291.00 2.Retrospective Restatement of Comparative Data due to the First Execution of the New Accounting Standards Governing Revenue and Leases in 2020 Applicable Not applicable III Independent Auditors Report Indicate whether the financial statements above have been audited by an independent auditor.Yes No