TCL科技：2024年一季度报告（英文版）

First Quarter 2024 Report of TCLTechnology Group Corporation 1 Stock Code: 000100 Stock Abbr.: TCLTECH. Announcement No.: 2024-018 TCL科技集团股份有限公司TCLTechnology Group Corporation First Quarter 2024 Report April 28,2024 First Quarter 2024 Report of TCLTechnology Group Corporation 2 Content Section IImportant Notices and Definitions ...................................................................................3 Section IIKey Financial Information ..............................................................................................5 Section IIIManagement Discussion and Analysis ..........................................................................8 Section IVShareholder Information ..............................................................................................11 Section VOther Significant Events ................................................................................................13 Section VIQuarterly Financial Statements ...................................................................................14 First Quarter 2024 Report of TCLTechnology Group Corporation 3 Section IImportant Notices and Definitions The Board of Directors (or the "Board"), the Supervisory Committee, directors, supervisors and senior management of TCLTechnology Group Corporation (hereinafter referred to as the "Company") hereby guarantee that this quarterly report is factual, accurate and complete, and shall be jointly and severally liable for any misrepresentations, misleading statements, or material omissions therein. Mr. Li Dongsheng, the Chairman of the Board, Ms. Li Jian, the person-in-charge of financial affairs (Chief Financial Officer), and Ms. Jing Chunmei, the person-in-charge of the financial department, hereby guarantee that the financial statements carried in this Report are factual, accurate and complete. All the Company's directors attended the Board meeting for the review of this Report. The future plans, development strategies or other forward-looking statements mentioned in this Report shall NOT be considered as promises of the Company to investors. Therefore, investors are kindly reminded to pay attention to possible investment risks. This Report has not been audited. This Report has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail. First Quarter 2024 Report of TCLTechnology Group Corporation 4 Definitions Term Refers to Definition Company, the Company, the Group Refers to TCLTechnology Group Corporation The "Reporting Period", "current period" Refers to The period from January 1,2024 to March 31,2024. TCLCSOTRefers to TCLChina Star Optoelectronics Technology Co., Ltd. TZERefers toTCLZhonghuan Renewable Energy Technology Co., Ltd., a majority-owned subsidiary of the Company listed on the Shenzhen Stock Exchange (stock code: 002129.SZ) t9 Refers to The generation 8.6 (or G8.6) new oxide production line at Guangzhou CSOT G12 Refers to12-inch ultra-large DW-cut solar monocrystalline silicon square wafer, size: 44,096mm2, diagonal line: 295mm, side length: 210mm, with its size 80.5% larger than the conventional M2 RMBRefers to Renminbi First Quarter 2024 Report of TCLTechnology Group Corporation 5 Section IIKey Financial Information (I) Key accounting data and financial indicators Indicate whether there is any retrospectively adjusted or restated datum in the table below Yes □ No Reason for retrospective adjustment or restatement □Change of accounting policies □Correction of accounting errors □Business combination under common control Others Q12024 Q12023 Change (%) Before adjustment After adjustment After adjustment Revenue (RMB) 39,908,458,08339,443,242,43939,443,242,4391.18%Net profit attributable to the company's shareholders (RMB) 239,970,389 -548,999,154 -548,999,154143.71%Net profits attributable to the company's shareholders after non-recurring gains and losses (RMB) 70,716,493 -729,931,586 -729,931,586109.69%Net cash generated from operating activities (RMB) 6,596,505,9324,495,356,5384,495,356,53846.74%Basic earnings per share (RMB/share) 0.0129 -0.0326 -0.0297 143.43%Diluted earnings per share (RMB/share) 0.0128 -0.0322 -0.0292 143.84%Weighted average return on equity (%) 0.45% -1.09% -1.09%Increase by 1.54 percentage points YoYMarch 31,2024 December 31,2023 Change (%) Before adjustment After adjustment After adjustment Total assets (RMB) 391,746,725,368382,859,086,727382,859,086,7272.32%Owner's equity attributable to the company's shareholders (RMB) 53,682,079,21052,921,867,08652,921,867,0861.44%Note 1: The Company converted its capital reserve into share capital in May 2023, at a rate of 1 share for every 10 shares to all shareholders. The Company recalculated the basic earnings per share and diluted earnings per share for the first quarter of 2023 in accordance with accounting standards and other regulations. Note 2: According to the relevant provisions of the Explanatory Announcement on Information Disclosure by Companies Offering Securities to the Public No.1 - Non-Recurring Profits and Losses (2023 Revision), any public subsidies that are closely related to the Company's daily operations, comply with national policies, are granted based on determined standards, and have a continuous impact on the Company's profits or losses, should be included into recurring profits or losses. Public grants presented as non-recurring profits or losses in the first quarter of 2023 comprise of the public grants related to assets amounting to RMB75.12 million, which should be classified as recurring profits or losses in accordance with the relevant provisions of the 2023 Explanatory Announcement No.1. The change did not have any material impact on the Company's financial position and operation results. First Quarter 2024 Report of TCLTechnology Group Corporation 6 (II) Non-recurring profit and loss items and amounts Applicable □ Not applicable Unit: RMB Item Amount in the reporting period Gains and losses on disposal of non-current assets (inclusive of impairment allowance write-offs) 64,227,059Public subsidies charged to current profits and loss (except for public subsidies which are closely related to the Company's daily operations, comply with national policies, are granted based on determined standards, and have a continuous impact on the Company's profits or losses) 249,918,328Gains and losses on change in fair value of financial assets and financial liabilities held by the non-financial companies, other than those valid hedging activities related to the normal operating business, as well as gains and losses from the disposal of financial assets and financial liabilities -1,977,888Reversal of provision for impairment of receivables that have been individually tested for impairment 26,500,000Non-operating income and expenses other than the above 61,038,599Less: Corporate income tax 49,297,817Non-controlling interests (net of tax) 181,154,385Total 169,253,896Details of other profit and loss items that meet the definition of non-recurring profits and losses □ Applicable Not Applicable The Company has no other profit and loss items that meet the definition of non-recurring profits and losses. Notes on non-recurring profit and loss items that which is listed in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-Recurring Gain/Loss shall be used to define Recurring Gain/Loss items □ Applicable Not Applicable The Company does not have any non-recurring profit and loss items listed in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-Recurring Gain/Loss that are defined as recurring profit and loss items. (III) Changes of key accounting data and financial indicators and reasons therefor Applicable □ Not applicable Unit: RMB Balance Sheet items Ending balance Beginning balance Increase / decrease ratio (%) Reason for change Receivables financing 1,943,020,838954,409,558 103.6 Mainly due to an increase of bank acceptance notesIncome Statement Item Current balance Prior balance Increase / decrease ratio (%) Reason for change Asset impairment losses (losses are indicated by "-") -702,391,301 -338,223,994 107.7 Due to an increase in falling price of inventory accrual in line with the market Cash Flow Statement items Current balance Prior balance Increase / decrease ratio (%) Reason for change First Quarter 2024 Report of TCLTechnology Group Corporation 7 Net cash generated from operating activities 6,596,505,9324,495,356,53846.7 Mainly due to an increase in cash from sale of commodities and rendering of services First Quarter 2024 Report of TCLTechnology Group Corporation 8 Section IIIManagement Discussion and Analysis Beginning this year, global geopolitical risks have increased, leading to an intensive restructuring of industrial and supply chains. Developed economies worldwide have maintained tight monetary policy, and the global economy faces increasing uncertainties. In response to these challenges, the Company has focused on the development of displays and new energy photovoltaics, and enhanced the resilience of its business and optimized its competitive edge in pursuit of high-quality sustainable development. During the Reporting Period, TCLTECH. achieved a revenue of RMB39.908 billion, which is a year-on-year increase of 1.18%; a net profit of RMB240 million attributable to the shareholders of listed companies, which is an increase of RMB789 million year-on-year; and a net operating cash flow of RMB6.597 billion. Driven by supply-side optimization, the display industry has returned to an orderly development stage with reasonable commercial returns, and the supply-demand relationship remains stable and healthy. Despite the seasonal off-season in Q12024, the price of mainstream products grew steadily. The Company actively optimized its business strategies and improved its operation structure, which resulted in a remarkable improvement in year-on-year performance. With the acceleration of the energy transition, latent capacity was unleashed centrally from the investment peak period, leading to a phased imbalance between supply and demand in the industry and a decline in industry chain profitability. The Company's new energy photovoltaic business strengthened its operational resilience to cope with challenges, but its performance declined year-on-year due to product price reduction. Display business During Q12024, the end-user demand for displays was still that of a traditional "off-season". However, driven by favorable supply-side fundamentals and an on-demand production strategy, the industry's supply-demand dynamics and inventory levels remained healthy. Restocking demand after the Chinese New Year pushed up the prices of large-sized panels, while the prices of small- and medium-sized panels remained relatively stable, with some products experiencing structured price hikes. By virtue of the gradual recovery of profitability in key products and the Company's edge in First Quarter 2024 Report of TCLTechnology Group Corporation 9 operational excellence, the display business surged in profitability year-on-year. During the Reporting Period, the display business achieved an operating revenue of RMB23.376 billion, with a year-on-year increase of 54.58%, and a net profit of RMB539 million, with a year-on-year increase of RMB3.337 billion. In the large-sized products segment, TCLCSOT, on the basis of on-demand production, was well-poised to lead the upgrade of large-sized TV panels, impelling the healthy and sound development of the industry. During the Reporting Period, the Company's overall utilization rate remained relatively low. However, in March, restocking demand drove a significant rebound in utilization rates. The Company maintained its leadership position in the large-sized panels segment and ranked within the top two globally in terms of its TV panel market share. In the medium-sized products segment, the T9 production line ramped up as scheduled and continuously bolstered the Company's market share in IT products. The Company remained No.3 in the display market, among which, e-sports displays ranked No.1 in terms of market share globally. In the small-sized display segment, the Company's flexible OLED products maintained a high demand. During the Reporting Period, the Company ascended to No.3 globally in terms of shipments of flexible OLED mobile phone panels, while also further optimizing its product and customer structure, which resulted in continuous improvements in operating performance. Looking forward to the remainder of the year, global display terminal sales are expected to remain stable. The size growth trend of large-sized products will drive the robust growth of display areas. At the same time, catalyzed by innovation in AI hardware and other factors, the display industry is expecting structural growth. The improving supply-side structure will push the industry to pivot back on reasonable commercial returns, and the display industry's cyclical fluctuation will gradually weaken. As the global leader in large-sized display panels, TCLCSOT will continuously drive the healthy and stable development of the industry, while enhancing both corporate profitability and value. New energy photovoltaics and other silicon materials business In Q12024, global demand for new PV installed capacity continued to grow rapidly, but the trend of localized PV manufacturing and anti-globalization trade remains unchanged as countries First Quarter 2024 Report of TCLTechnology Group Corporation 10 seek energy self-sufficiency and control. As domestic photovoltaic capacity is released across all segments of industry chain, intensified competition further impacts product price reductions, putting pressure on industry profitability. However, rapid iteration of new technologies, such as N-type, is further restructuring the industry's capacity, and laggard capacity will be ruled out in a faster sense. During the Reporting Period, TZE achieved a revenue of RMB9.933 billion, a year-on-year decrease of 43.62%, and a net profit of negative RMB951 million, due to falling prices for major products across the industry chain. In response to external environmental challenges, TZE has further improved its quality and efficiency through technological innovation, process improvement and management enhancement. It has promoted the optimization of operating indicators, e.g., utilization of silicon materials, furnace costs and number of output wafers per kilogram, and cemented the Company's competitive advantage. The Company further consolidated its technological and market leadership in G12 large silicon wafers and N-type products. The proportion of shipments of N-type and large-sized (210 series) products accounted for 88%, among which the external sales market share of N-type 210 exceeded 90%, maintaining its leading position. The Company is continuously promoting the transformation to Industry 4.0, enabling factories for silicon wafers, batteries and components to achieve international leading quality in terms of digitization and intelligentization. Looking to the future, with the continuous optimization of supply-side structure and the stable growth of demand area, the display industry is expected to improve its prosperity, and the operating return of the Company's display business will further improve. The photovoltaic industry is currently at the bottom of the cycle, and downstream demand continues its rapid growth. The long-term positive outlook for the industry remains unchanged. The Company's new energy photovoltaic business will strengthen its operational resilience, allowing it to smoothly navigate industry cycles with a competitive edge. By upholding the spirit of "Venturing Midstream and Striving to Win", the Company will firmly grasp the opportunities brought by transformations in the technology manufacturing industry and global energy structure, and continue to implement the business strategies of "improving operational quality and efficiency, enhancing strengths to shore up weaknesses, innovation-driven development as well as accelerating global expansion" in order to achieve sustainable, high-quality development and take on a leading role in the global market. First Quarter 2024 Report of TCLTechnology Group Corporation 11 Section IVShareholder Information (I) Table of the total number of ordinary shareholders and the number of preferred shareholders with resumed voting rights as well as the shareholdings of the top 10 shareholders Unit: Share Total number of ordinary shareholders by the end of the reporting period 578,652Total number of preferred shareholders with resumed voting rights by the end of the reporting period 0Shareholdings of top 10 shareholders of ordinary shares (excluding the lending of shares under refinancing) Name of shareholder Nature of shareholder Shareholding percentage (%)Number of shares held Number of restricted shares held Shares in pledge, marked or frozenStatus Number Li Dongsheng Domestic individual/Domestic general legal entity 6.731,264,053,189672,868,840Ningbo Jiutian Liancheng Equity Investment Partnership (Limited Partnership) Pledge 293,668,015Huizhou Investment Holding Co., Ltd. Public legal entity 4.35817,453,824 Hong Kong Securities Clearing Company Ltd. Foreign legal entity 4.05761,222,897 Wuhan Optics Valley Industrial Investment Co., Ltd. Public legal entity 2.64495,390,330 Pledge 246,780,000China Securities Finance Corporation Limited Domestic general legal entity 2.19410,554,710 Perseverance Asset Management Partnership (Limited Partnership) - Gaoyi Xiaofeng No.2 Zhixin Fund Fund, wealth management product, etc. 1.19223,736,600 Industrial and Commercial Bank of China - Huatai-Pinebridge CSI 300 ETF Fund, wealth management product, etc. 1.08202,917,730 Bank of China Limited - Huatai-Pinebridge CSI Photovoltaic Industry ETF Fund, wealth management product, etc. 1.03192,656,860 CITICSecurities Co., Ltd. Financial Institution 0.98184,127,136 Shareholdings of top 10 non-restricted ordinary shareholders Name of shareholder Number of non-restricted ordinary shares held at the end of reporting period Share type and quantity Type Quanity Huizhou Investment Holding Co., Ltd.817,453,824RMB-denominated ordinary shares 817,453,824Hong Kong Securities Clearing Company Ltd.761,222,897RMB-denominated ordinary shares 761,222,897Li Dongsheng 591,184,349RMB-denominated ordinary shares 591,184,349Ningbo Jiutian Liancheng Equity Investment Partnership (Limited Partnership) Wuhan Optics Valley Industrial Investment Co., Ltd.495,390,330RMB-denominated ordinary shares 495,390,330China Securities Finance Corporation Limited 410,554,710RMB-denominated ordinary shares 410,554,710Perseverance Asset Management Partnership (Limited Partnership) - Gaoyi Xiaofeng No.2 Zhixin Fund 223,736,600RMB-denominated ordinary shares 223,736,600Industrial and Commercial Bank of China - Huatai-Pinebridge CSI 300 ETF 202,917,730RMB-denominated ordinary shares 202,917,730Bank of China Limited - Huatai-Pinebridge CSI Photovoltaic Industry ETF 192,656,860RMB-denominated ordinary shares 192,656,860First Quarter 2024 Report of TCLTechnology Group Corporation 12 CITICSecurities Co., Ltd.184,127,136RMB-denominated ordinary shares 184,127,136Note on the above shareholders' associations or concerted actions Among the top 10 shareholders, Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity Investment Partnership (Limited Partnership) became persons acting in concert by signing the Agreement on Concerted Action. Mr. Li Dongsheng holds 897,158,453 shares and Ningbo Jiutian Liancheng Equity Investment Partnership (Limited Partnership) holds 366,894,736 shares, representing 1,264,053,189 shares in total and becoming the largest shareholder of the Company. Explanation on the top 10 ordinary shareholders participating in securities margin trading At the end of the Reporting Period, Wuhan Optics Valley Industrial Investment Co., Ltd., among the shareholders above, held certain shares in the Company through a credit security account. 5% or greater shareholders, top 10 shareholders and top 10 unrestricted shareholders participating in the lending of shares under the refinancing business Applicable □ Not applicable Unit: Share 5% or greater shareholders, top 10 shareholders and top 10 unrestricted shareholders participating in the lending of shares under the refinancing business Name of shareholder (full name) Shares in the ordinary account and credit account at the beginning of the period Shares lent under refinancing at the beginning of the period that have not been returned Shares in the ordinary account and credit account at the end of the period Shares lent under refinancing at the end of the period that have not been returned Total number Proportion to total share capital Total number Proportion to total share capital Total number Proportion to total share capital Total number Proportion to total share capital Industrial and Commercial Bank of China - Huatai-Pinebridge CSI 300 ETF 140,037,7300.75% 136,9000.001% 202,917,7301.08% 00%Bank of China Limited - Huatai-Pinebridge CSI Photovoltaic Industry ETF 204,079,7601.09% 1,602,8000.01% 192,656,8601.03% 418,8000.002%Change in the top 10 shareholders and top 10 unrestricted shareholders due to the lending of shares under the refinancing business compared with the previous period □ Applicable Not Applicable (II) Total number of preferred shareholders and shareholdings of the top 10 preferred shareholders □ Applicable Not Applicab First Quarter 2024 Report of TCLTechnology Group Corporation 13 Section VOther Significant Events Applicable □ Not applicable 1. Derivative investment for hedging purposes during the reporting period Unit: RMB'0,000 Type of contract Beginning amount Ending amount Gain/loss status in the Reporting PeriodEnding contractual amount as % of the Company's ending net asset Contractual amount Transaction limit Contractual amount Transaction limit Contractual amount Transaction limit 1. Forward forex contracts 3,039,040114,0953,440,748131,0039,26923.67% 0.90%2. Interest rate swaps 40,68612,231340,10010,2032.34% 0.07%Total 3,446,726126,3263,780,848141,2069,26926.01% 0.97%Accounting policies and specific accounting principles for hedging business during the Reporting Period and a description of whether there have been significant changes from those of the previous reporting period No significant change. Description of actual profits and losses during the Reporting Period During the Reporting Period, profit from changes in the fair value of hedged items amounted to RMB55.19 million; losses from the delivery of due forward exchange contracts amounted to negative RMB7.31 million; and profit from the valuation of outstanding forward exchange contracts amounted to RMB44.81 million. Description of the hedging effect During the Reporting Period, the Company's main foreign exchange risk exposures included foreign currency asset and liability exposures arising from business activities such as outbound sales, raw materials procurement, and financing. The uncertain risks arising from the exchange rate fluctuations were effectively hedged by derivative contracts with the same purchase amounts and terms in the opposite direction. Approval date of the Board of Directors and the General Meeting for Derivative investment for hedging purposes during the Reporting Period The proposal was approved by the 29th meeting of the 7th Session of the Board of Directors held on March 30,2023, and the 2022 Annual General Meeting held on April 21,2023. 2. Other Significant Events During the Reporting Period of announcement Date of disclosure Website for disclosure Announcement on the Certain Quota Allocation Adjustment among Expected Continuing Related-Party Transactions for 2023 January 27,2024 http:/ Announcement on Public Offering of Sci-Tech Innovation Corporate Bonds (Digital Economy) (Phase 1) for Professional Investors in 2024 January 29,2024 First Quarter 2024 Report of TCLTechnology Group Corporation 14 Section VIQuarterly Financial Statements (I) Financial statements 1. Consolidated Balance Sheet Prepared by: TCLTechnology Group Corporation Unit: RMB Item Ending balance Balance at the beginning of the period Current assets: Monetary assets 24,944,029,733 21,924,270,872 Settlement reserves Funds on loan Held-for-trading financial assets 24,227,149,499 23,184,116,975 Derivative financial assets 110,218,202 108,007,603 Notes receivable 369,068,163 615,391,820 Accounts receivable 23,886,721,056 22,003,651,259 Receivables financing 1,943,020,838 954,409,558 Prepayments 3,376,980,570 2,946,288,443 Premiums receivable Reinsurance accounts receivable Reinsurance contract provisions receivable Other receivables 4,704,724,701 5,706,855,391 Of which: Interests receivable - - Dividends receivable 1,381,297,611 1,381,489,936 Financial assets purchased under sale-back agreement - - Inventories 19,304,750,766 18,481,754,865 Including: Data resources Contract assets 350,323,417 343,907,118 Held-for-sale assets - 162,415,745 Non-current assets due within one year 593,040,352 580,694,984 Other current assets 7,330,962,553 5,286,533,753 Total current assets 111,140,989,850 102,298,298,386 Non-current assets: Loans and advances to customers - - Debt investments 113,675,101 122,348,768 Other debt investments - - Long-term receivables 713,436,215 720,281,051 Long-term equity investments 25,385,336,134 25,431,271,193 Investments in other equity instruments 383,375,780 386,648,418 Other non-current financial assets 3,465,290,957 2,971,566,228 Investment property 893,614,356 911,679,154 Fixed assets 172,335,934,669 176,422,620,794 Construction in progress 19,433,344,116 17,000,052,457 Productive biological assets Oil and gas assets Right-of-use assets 6,264,937,218 6,386,446,373 Intangible assets 18,387,779,542 18,419,544,291 Including: Data resources First Quarter 2024 Report of TCLTechnology Group Corporation 15 Development costs 2,506,826,415 2,541,492,504 Including: Data resources Goodwill 10,527,004,047 10,516,741,724 Long-term deferred expenses 3,294,567,956 3,402,689,489 Deferred income tax assets 2,636,794,377 2,246,221,719 Other non-current assets 14,263,818,635 13,081,184,178 Total non-current assets 280,605,735,518 280,560,788,341 Total assets 391,746,725,368 382,859,086,727 Current liabilities: Short-term borrowings 10,685,553,579 8,473,582,304 Borrowings from the Central Bank 1,193,509,342 995,009,514 Borrowed funds - - Held-for-trading financial liabilities 328,127,731 251,451,420 Derivative financial liabilities 43,275,218 58,590,840 Notes payable 6,755,509,159 5,610,802,064 Accounts payable 29,328,388,152 29,402,493,015 Advances from customers 677,665 677,665 Contract liabilities 1,882,128,359 1,899,468,140 Financial assets sold under repurchase agreements - - Customer deposits and deposits from other banks and financial institutions 475,445,310 270,928,810 Funds for brokering securities transaction Funds for brokering securities underwriting Employee salaries payable 2,988,086,266 3,034,496,680 Taxes and levies payable 1,041,097,792 861,342,467 Other payables 21,983,250,582 22,171,403,238 Of which: Interests payable - - Dividends payable 54,250,777 54,250,777 Service charges and commissions payable Reinsurance accounts payable Held-for-sale liabilities - - Non-current liabilities due within one year 25,789,723,337 24,631,658,876 Other current liabilities 1,596,875,014 1,563,244,949 Total current liabilities 104,091,647,506 99,225,149,982 Non-current liabilities: Insurance contract provisions Long-term borrowings 121,600,706,725 117,662,208,623 Bonds payable 8,618,969,988 9,113,847,771 Of which: Preferred shares Perpetual bonds Lease liabilities 5,734,875,694 5,737,287,693 Long-term payables 2,640,183,515 2,739,444,094 Long-term employee compensation payable 29,570,539 29,645,007 Estimated liabilities 121,583,401 117,394,992 Deferred income 2,117,319,016 1,540,647,642 Deferred income tax liabilities 1,446,582,227 1,427,487,042 Other non-current liabilities Total non-current liabilities 142,309,791,105 138,367,962,864 Total liabilities 246,401,438,611 237,593,112,846 Owner's equity (or shareholders' equity) Share capital 18,779,080,767 18,779,080,767 First Quarter 2024 Report of TCLTechnology Group Corporation 16 Other equity instruments - - Of which: Preferred shares Perpetual bonds Capital reserves 10,835,973,616 10,752,055,217 Less: Treasury share 718,236,786 1,094,943,423 Other comprehensive income -888,982,900 -945,797,878 Specific reserves 14,144,671 11,342,949 Surplus reserves 3,874,005,579 3,874,005,579 General risk reserve 8,933,515 8,933,515 Retained earnings 21,777,160,748 21,537,190,360 Total equity attributable to the owners of the parent company 53,682,079,210 52,921,867,086 Non-controlling interests 91,663,207,547 92,344,106,795 Total owner's equity 145,345,286,757 145,265,973,881 Total liabilities and owner's equity 391,746,725,368 382,859,086,727 Legal representative: Li Dongsheng Person-in-charge of Financial affairs: Li Jian Person-in-charge of the Financial Department: Jing Chunmei 2. Consolidated Income Statement Unit: RMB Item Current balance Prior balance I. Total revenue 39,946,382,780 39,465,731,391 Including: Operating revenue 39,908,458,083 39,443,242,439 Interest income 37,924,697 22,488,952 Earned premiums Service charge and commission income - II. Total costs 40,367,085,554 40,491,139,667 Of which: Operating cost 35,307,482,997 35,357,669,407 Interest expenditures 5,895,581 5,205,619 Service charge and commission expenditures - Surrender value Net claims payment Net insurance contract provisions accrued Policy dividend expenditures Reinsurance expenses Taxes and levies 198,854,235 171,412,685 Sales expenses 562,546,199 520,726,236 Administrative expenses 984,278,694 937,229,625 R&D expenses 2,207,454,463 2,593,998,005 Financial expenses 1,100,573,385 904,898,090 Including: Interest expenses 1,336,824,794 1,145,570,837 Interest income 208,100,403 213,027,337 Plus: Other income 332,434,076 531,668,577 Return on investment (losses are indicated by "-") 111,069,433 765,964,042 Including: Share of profit or loss of joint ventures and associates -20,350,516 633,769,440 Income from derecognition of financial assets measured at amortised costs Exchange gains (losses are indicated by "-") 7,789 -2,828,841 Gain on net exposure hedging (losses are indicated by "-") - - Gain on changes in fair value (losses are indicated by "-") 173,603,977 151,543,005 Credit impairment losses (losses are indicated by "-") -35,961,488 -23,968,551 First Quarter 2024 Report of TCLTechnology Group Corporation 17 Asset impairment losses (losses are indicated by "-") -702,391,301 -338,223,994 Income from asset disposal (losses are indicated by "-") 76,453,230 -15,124,996 III. Operating profit (losses are indicated by "-") -465,487,058 43,620,966 Add: Non-operating income 23,528,519 10,152,922 Less: Non-operating expenses 24,312,896 3,266,785 IV. Gross profit (gross loss is indicated by "-") -466,271,435 50,507,103 Less: Income tax expenses -132,665,572 -60,849,759 V. Net profits (net losses are indicated by "-") -333,605,863 111,356,862 (I) Classification by business continuity 1. Net profits from continuing operations (net losses are indicated by "-") -333,605,863 111,356,862 2. Net profits from discontinued operations (net losses are indicated by "-") - - (II) Classification by ownership 1. Net profits attributable to the shareholders of the parent company 239,970,389 -548,999,154 2. Net profit attributable to non-controlling interests -573,576,252 660,356,016 VI. Other comprehensive income, net of tax 60,681,004 25,847,967 Other comprehensive income attributable to the owners of the parent company, net of tax 50,576,585 48,006,773 (I) Other comprehensive income that will not be reclassified to profit or loss -3,386,503 -19,294,731 1. Changes arising from remeasurement of defined benefit plans 2. Other comprehensive income that cannot be subsequently reclassified into profits and losses under the equity method - 682,618 3. Changes in fair value of investments in other equity instruments -3,386,503 -19,977,349 4. Changes in fair value of the enterprise's own credit risks - 5. Others - (II) Other comprehensive income that may subsequently reclassified into profit and losses 53,963,088 67,301,504 1. Other comprehensive income that can be transferred to profits and losses under the equity method 14,828 -670,638 2. Changes in fair value of other debt investments - - 3. Amount of financial assets reclassified into other comprehensive income - 4. Provisions for credit impairment of other debt investments - 5. Reserves for cash flow hedging 7,722,180 32,625,420 6. Conversion differences in foreign currency financial statements 46,226,080 35,346,722 7. Others - Other net comprehensive income attributable to minority interests, net of tax 10,104,419 -22,158,806 VII. Total comprehensive income -272,924,859 137,204,829 Total comprehensive income attributable to the shareholders of the parent company 290,546,973 -500,992,380 Total comprehensive income attributable to non-controlling interests -563,471,832 638,197,209 VIII. Earnings per share: (I) Basic earnings per share 0.0129 -0.0297 (II) Diluted earnings per share 0.0128 -0.0292 Legal representative: Li Dongsheng Person-in-charge of Financial affairs: Li Jian Person-in-charge of the Financial Department: Jing Chunmei 3. Consolidated Cash Flow Statement Unit: RMB First Quarter 2024 Report of TCLTechnology Group Corporation 18 Item Current balance Prior balance I. Net cash generated from operating activities: Proceeds from sale of commodities and rendering of services 34,317,092,852 28,874,162,646 Net increase of deposits from customers, banks and other financial institutions 204,352,893 -414,994,865 Net increase of borrowings from the Central Bank 197,084,045 134,144,024 Net increase of borrowings from other financial institutions - 500,112,500 Cash received from collecting premiums for original insurance contracts Net cash received for reinsurance business Net increase of deposits and investments of policyholders Cash received from interest, service charges and commissions 32,922,547 22,488,952 Net increase of borrowed funds from banks and other financial institutions - - Net increase of repurchase business funds Net cash received from brokering securities transaction Tax and levy rebates 1,232,745,372 1,661,519,549 Cash generated from other operating activities 2,995,096,129 3,130,400,647 Sub-total of cash generated from operating activities 38,979,293,838 33,907,833,453 Payments for commodities and services 25,276,065,192 23,587,210,982 Net increase of loans and advances to customers 95,339,843 -558,602,998 Net increase of deposits with the Central Bank, banks and other financial institutions -102,445,135 105,682,459 Cash paid for claims for original insurance contracts Net increase of funds on loan Cash paid for interest, service charges and commissions - - Cash paid for policy dividends Cash paid to and for employees 3,385,466,209 2,733,093,133 Taxes and levies paid 1,142,639,741 915,275,257 Cash used in other operating activities 2,585,722,056 2,629,818,082 Sub-total of cash used in operating activities 32,382,787,906 29,412,476,915 Net cash generated from operating activities 6,596,505,932 4,495,356,538 II. Cash flow generated from investing activities: Proceeds from disinvestments 16,290,600,367 15,215,716,206 Proceeds from return on investments 575,956,542 380,580,542 Net proceeds from disposal of fixed assets, intangible assets and other long-term assets 253,835,051 38,716,274 Net proceeds from disposal of subsidiaries and other business units - - Cash generated from other investing activities 23,533,065 1,451,281,370 Sub-total of cash generated from investment activities 17,143,925,025 17,086,294,392 Payments for the acquisition and construction of fixed assets, intangible assets and other long-term assets 6,604,971,676 8,748,893,383 Payments for investments 19,201,612,912 13,350,111,306 Net increase of pledged loans - - Net payments for acquiring subsidiaries and other business units 15,805,873 - Cash used in other investing activities 286,841,021 187,762,364 Subtotal of cash used in investing activities 26,109,231,482 22,286,767,053 Net cash used in investing activities -8,965,306,457 -5,200,472,661 III. Net cash generated from financing activities: Capital contributions received 2,000,000 46,449,000 Including: Capital contributions by non-controlling interests to subsidiaries 2,000,000 46,449,000 Borrowings raised 19,205,366,600 27,287,574,742 First Quarter 2024 Report of TCLTechnology Group Corporation 19 Cash generated from other financing activities 994,839,843 36,193,437 Sub-total of cash generated from financing activities 20,202,206,443 27,370,217,179 Cash paid for debt repayment 12,362,132,985 18,392,118,214 Cash paid for distribution of dividends and profits or the repayment of interest 1,462,312,501 1,429,360,583 Of which: Dividends and profits distributed by subsidiaries to minority shareholders 13,294,747 16,524,493 Cash used in other financing activities 652,112,281 4,287,733,637 Subtotal of cash used in financing activities 14,476,557,767 24,109,212,434 Net cash generated from financing activities 5,725,648,676 3,261,004,745 IV. Effect of exchange rate changes on cash and cash equivalents 52,422,141 -124,222,607 V. Net increase in cash and cash equivalents 3,409,270,292 2,431,666,015 Plus: Beginning balance of cash and cash equivalents 19,996,815,160 33,675,624,291 VI. Ending balance of cash and cash equivalents 23,406,085,452 36,107,290,306 Legal representative: Li Dongsheng Person-in-charge of Financial affairs: Li Jian Person-in-charge of the Financial Department: Jing Chunmei (II) Adjustments to financial statement items at the beginning of the year of the first implementation of the new accounting standards which have been implemented since 2024 □ Applicable Not Applicable (III) Auditor's Report Whether the First Quarter Report has been audited or not □Yes No The Company's First Quarter Report has not yet been audited. TCLTechnology Group Corporation Board of Directors April 28,2024