TCL科技: 2025年半年度报告（英文版）
来源：证券之星
2025-09-13 00:20:02
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
TCL 科技集团股份有限公司
TCL Technology Group Corporation
INTERIM REPORT 2025
August 2025
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as
well as the directors, supervisors and senior management of TCL Technology
Group Corporation (hereinafter referred to as the “Company”) hereby
guarantee the factuality, accuracy and completeness of the contents of this
Report and its summary, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions therein.
Mr. Li Dongsheng, the person-in-charge of the Company, 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 Interim Report are factual, accurate,
and complete.
All the Company’s directors attended the Board meeting for the review of
this Interim Report and its summary.
The future plans, development strategies or other forward-looking
statements mentioned in this Report and its summary shall NOT be considered
as promises of the Company to investors. Therefore, investors are kindly
reminded to pay attention to possible investment risks.
The Company has no interim dividend plan, either in the form of cash or
stock, nor for the conversion of capital reserve into share capital.
This Report and its summary have been prepared in both Chinese and
English. Should there be any discrepancies or misunderstandings between the
two versions, the Chinese version shall prevail.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Table of Contents
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Documents Available for Reference
(I) The financial statements signed and stamped by the person-in-charge of the
Company, the Chief Financial Officer and person-in-charge of the financial
department.
(II) The originals of all company documents and announcements that were
disclosed to the public during the Reporting Period.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Definitions
Term Refers to Definition
The “Company”, the “Group”, “TCL”,
Refers to TCL Technology Group Corporation
“TCL TECH.”, or “we”
The “Reporting Period”, “current
Refers to The period from January 1, 2025 to June 30, 2025.
period”
TCL CSOT Refers to TCL China Star Optoelectronics Technology Co., Ltd.
TCL Zhonghuan Renewable Energy Technology Co., Ltd., a majority-owned
TZE Refers to subsidiary of the Company listed on the Shenzhen Stock Exchange (stock
code: 002129.SZ)
Zhonghuan Advanced Refers to Zhonghuan Advanced Bandaoti Technology Co., Ltd.
Moka Technology Refers to Moka International Limited
Tianjin Printronics Circuit Corp., a majority-owned subsidiary of the
TPC Refers to
Company listed on the Shenzhen Stock Exchange (stock code: 002134.SZ)
Highly Information Industry Co., Ltd., a holding subsidiary of the Company
Highly Refers to
listed on the National Equities Exchange and Quotations
t1 Refers to The generation 8.5 (or G8.5) TFT-LCD production line at TCL CSOT
t2 Refers to The generation 8.5 (or G8.5) TFT-LCD (oxide) production line at TCL CSOT
t3 Refers to The generation 6 (or G6) LTPS-LCD panel production line at Wuhan CSOT
The generation 6 (or G6) flexible LTPS-AMOLED panel production line at
t4 Refers to
Wuhan CSOT
t5 Refers to The generation 6 (or G6) new display production line at Wuhan CSOT
The generation 11 (or G11) new TFT-LCD display production line at
t6 Refers to
Shenzhen CSOT
The generation 11 (or G11) new ultra high definition display production line at
t7 Refers to
Shenzhen CSOT
The generation 8.6 (or G8.6) new oxide display production line at Guangzhou
t9 Refers to
CSOT
t10 Refers to The generation 8.5 (or G8.5) TFT-LCD production line at Suzhou CSOT
t11 Refers to The generation 8.5 (or G8.5) TFT-LCD production line at Guangzhou CSOT
t12 Refers to The generation 5.5 (or G5.5) printed OLED production line at Wuhan CSOT
RMB Refers to Renminbi
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Part II Corporate Information and Key Financial Information
I. Corporate Information
Stock name TCL TECH. Stock code 000100
Place of listing Shenzhen Stock Exchange
Company name in Chinese TCL 科技集团股份有限公司
Abbr. (if any) TCL 科技
Company name in English (if any) TCL Technology Group Corporation
Abbr. in English (if any) TCL TECH.
Legal representative Li Dongsheng
II. Contact Information
Board Secretary
Name Liao Qian
Office address
Nanshan District, Shenzhen, Guangdong Province, China
Tel. 0755-33311666
Email address ir@tcl.com
III. Other Information
Whether the registered address, office address and their zip codes, website address and email address of the Company changed
during the Reporting Period
□Applicable Not applicable
No changes occurred to the registered address, office address and their zip codes, website address, email address and other contact
information of the Company during the Reporting Period. Please refer to the 2024 Annual Report for details.
Whether the media for information disclosure and place where this Report is lodged changed during the Reporting Period
□Applicable Not applicable
No changes occurred to the name and website of the stock exchange website and media on which the Company discloses its Interim
Report and the place for lodging such reports during the Reporting Period. Please refer to the 2024 Annual Report for details.
Whether other information changed during the Reporting Period
□Applicable Not applicable
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
IV. Key Accounting Data and Financial Indicators
Indicate whether there is any retrospectively adjusted or restated datum in the table below
□Yes No
H1 2025 H1 2024 Change
Operating revenue (RMB) 85,560,004,497 80,223,736,962 6.65%
Net profits attributable to the company’s shareholders
(RMB)
Net profits attributable to the company's shareholders
after non-recurring gains and losses (RMB)
Net cash generated from operating activities (RMB) 27,273,981,394 12,632,721,713 115.90%
Basic earnings per share (RMB/share) 0.1014 0.0535 89.53%
Diluted earnings per share (RMB/share) 0.1003 0.0530 89.25%
Increase by 1.67
Weighted average return on equity (%) 3.54 1.87
percentage points YoY
End of the Reporting December 31,
Change
Period 2024
Total assets (RMB) 400,469,462,636 378,251,915,923 5.87%
Net assets attributable to shareholders of the listed
company (RMB)
V. Accounting Data Differences under China Accounting Standards for Business Enterprises
(CAS) and International Financial Reporting Standards (IFRS) and Foreign Accounting
Standards
□Applicable Not applicable
There is no difference in net profits and net assets between the financial statements prepared in accordance with International
Accounting Standards (IAS) and Chinese Accounting Standards (CAS) for the Reporting Period of the Company.
□Applicable Not applicable
There is no difference in net profits and net assets between the financial statements prepared in accordance with foreign accounting
standards and Chinese Accounting Standards (CAS) for the Reporting Period of the Company.
□Applicable Not applicable
VI. Non-Recurring Gains and Losses
Applicable □Not applicable
Unit: RMB
Item Amount
Gains and losses on disposal of non-current assets (inclusive -20,061,225
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
of impairment allowance write-offs)
Public grants charged to current gains and losses (except for
public grants that are closely related to the Company's daily
operations, comply with national policies, are granted based 633,215,125
on determined standards, and have a continuous impact on the
Company's gains and losses)
The profits or losses generated from changes in fair value
arising from financial assets and financial liabilities held by
non-financial enterprises and the profits or losses from the
disposal of such financial assets and financial liabilities,
except for the effective hedging business related to the
company’s normal business operations
Reversal of provision for impairment of receivables that have
been individually tested for impairment
Non-operating income and expenses other than the above 126,890,210
Other gain and loss items that meet the definition of non-
recurring gains and losses
Less: Amount affected by income tax 84,753,814
Amount affected by equity of minority shareholders (net
of tax)
Total 324,764,004
Details of other profit and loss items that meet the definition of non-recurring profits and losses:
□Applicable Not applicable
The Company has no other profit and loss items that meet the definition of non-recurring profits and losses.
Notes on non-recurring profit and loss items that are 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.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Part III Management Discussion and Analysis
I. Overall Operating Performance of the Company During the Reporting Period
Since the start of the year, growing global economic uncertainties and a restructured
international trade landscape have accelerated the transformation of rules in economic globalization.
Rising U.S. tariffs are increasing worldwide trade costs, fueling trends toward deglobalization and
supply chain regionalization. These shifts are poised to significantly impact the development of
China's manufacturing sector. In the face of external challenges, the Company adheres to the
leading strategy, focusing on three key business pillars, including displays, new energy
photovoltaics, and other silicon materials, with a view to improving operational resilience and
promoting high-quality and sustainable growth.
During the Reporting Period, the Company realized RMB 85.6 billion in operating revenue,
representing a 6.7% year-over-year increase. Net profit attributable to shareholders reached RMB
As of the end of the Reporting Period, the Company’s debt-to-asset ratio stood at 67.7%, an
increase of 2.78 percentage points from the end of the previous reporting period; cash and cash
equivalents at the end of the Reporting Period were RMB 26.56 billion. Driven by significant new
investments this year and the availability of favorable lending rates, the debt-to-asset ratio has risen.
The Company remains committed to maintaining this ratio within a reasonable range.
II. Operating Performance of the Company’s Core Businesses During the Reporting Period
The Company focused on the development of the core business, including displays, new
energy photovoltaics and other silicon materials, and was committed to achieving the strategic goal
of global leadership.
(I) Display Business
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Global retail demand for LCD TVs remained stable in the first half of 2025. National subsidies
accelerated the shift toward larger screen sizes, sustaining the surge in the demand area for panels.
Increased supply-side production capacity concentration and an optimized industry landscape
balanced supply and demand, leading to narrow price fluctuations for major products aligned with
seasonal cycles.
During the Reporting Period, TCL CSOT achieved an operating revenue of RMB 50.43 billion,
an increase of 14.4% year-on-year; net profit was RMB 4.32 billion, up 74.0% year-on-year; and
net profit attributable to shareholders of TCL TECH. was RMB 2.63 billion, an increase of 51%
year-on-year. Leveraging its advantages in scale and efficiency, TCL CSOT continuously optimized
its business and product structure, thus significantly improving its operating performance, further
solidifying its competitive edge in the display industry.
The Company maintained its competitive edge in large-sized products like TVs and
commercial displays, growing its market share by 4 percentage points year-on-year to 24%. Its
comprehensive competitiveness and EBITDA continued to lead globally. Competitiveness in the
small and medium-sized LCD product segment increased rapidly: during the Reporting Period, the
monitor sales volume increased by 18% year-on-year; NB sales volume increased by 71% year-on-
year; vehicle-mounted display sales volume increased by 61% year-on-year; mobile phone sales
volume increased by 51% year-on-year; and sales in the specialized display market saw a
significant year-on-year growth.
During the Reporting Period, the Company completed the acquisition of 100% equity in LG
Display (China) Co., Ltd. and LG Display (Guangzhou) Co., Ltd., integrating and renaming them as
t11, with a production capacity of 180k pieces/month. Since the second quarter, this acquisition has
become an increasingly significant contributor to the Company's operating performance. During the
same period, the Company also completed the second-phase construction of the t9 project in
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Guangzhou. The strong industrial synergy between the t9 and t11 projects enhanced the Company's
scale and competitiveness in small and medium-sized displays. This synergy optimizes the
Company's product structure and laid a solid foundation for the sustainable development of its LCD
business.
The Company's OLED business (t4, G6 line), sustained its growth trajectory with an increase
in year-over-year sales volume of 8.7%, while operating revenue is up 9.2% YoY. The Company
secured the fourth position globally for flexible OLED smartphone shipments and remained a top-
three player in foldable products. This was complemented by the successful ramp-up to mass
production and shipment of its wearables line. Currently, the t4 factory leads the domestic industry
in key metrics, including capacity utilization rate, project input-output ratio, and EBITDA margin.
During the Reporting Period, the Company successfully completed the construction of the
G5.5 printed OLED production line (t12), with capacity increasing from 3k pieces/month to 9k
pieces/month. The t12 project continues to optimize its production processes, efficiency, and
product quality. The Company is also driving the industrialization of its high-generation printed
OLED projects, positioning it to achieve major breakthroughs in the next-generation OLED
industry.
The Company is actively expanding its presence in the Micro LED (hereinafter referred to as
“MLED”) industry. At the end of 2020, TCL CSOT and Sanan Optoelectronics jointly established a
laboratory, and during the Reporting Period, the first MLED production line was built in Suzhou.
The Company plans to capitalize on emerging opportunities in the MLED sector by expanding
investments in product technology, materials, and key segments of the industry chain, thereby
strengthening its competitive market position.
During the Reporting Period, the Company acquired a 21.53% equity stake in Shenzhen China
Star Optoelectronics Bandaoti Display Technology Co., Ltd.—operator of the G11 production lines
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
(t6, t7)—from the Shenzhen Major Industrial Development Phase I Fund. The asset transfer for this
transaction was finalized in early July 2025. This strategic acquisition is expected to boost net profit
attributable to the parent company and strengthen the contribution of the display business to the
listed company’s profitability.
The Company will further improve its global industrial layout to adapt to the challenges of the
restructured global economy and trade landscape. During the Reporting Period, the Company
invested in and built a module plant in Vietnam, and significantly improved the operational
efficiency of its existing module plant in India each year.
(II) Silicon Wafer Business
During the Reporting Period, Zhonghuan Advanced achieved an operating revenue of RMB 2.74
billion, growing 38.2% year-on-year and solidifying its leadership in both scale and competitiveness
within the domestic industry. The Company's products, technologies, processes, and quality have
been further enhanced, with products consistently supplied to major domestic integrated circuit
manufacturers and partial exports achieved. The Company is confident of sustaining business
growth and further strengthening its market competitiveness in the second half of the year.
(III) New Energy Photovoltaics Business
During the Reporting Period, TZE’s photovoltaics business achieved an operating revenue of
RMB 9.87 billion, registering a year-on-year decrease of 28.0%, of which crystal wafer operating
revenue was RMB 5.77 billion, down 7.1% quarter-on-quarter; and cell and module operating
revenue was RMB 3.85 billion, up 26.2% quarter-on-quarter.
Amid a severe industry downturn and intense competition within the photovoltaics sector, the
Company is implementing proactive and effective strategies to navigate the market’s challenges.
Guided by the principle of “turning crisis into opportunity through development and discovering
new paths by overcoming difficulties,” the Company is not only tackling current operational
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pressures but also strategically positioning itself for future growth. To this end, it is reinforcing its
leadership in wafer technology, strengthening its cell and module segments, aggressively expanding
its global footprint, and actively pursuing strategic mergers, acquisitions, and overseas investment
opportunities. The Company is confident in its ability to enhance the performance of TZE’s
photovoltaics business, reinforce its competitive position, and establish a strong foundation for
sustainable growth. These efforts will position the Company to successfully navigate the ongoing
industry downturn and unlock new pathways for future expansion.
(IV) Non-core business
The Company’s non-core businesses satisfied its operating budgets and maintained healthy
growth. As the world's largest TV ODM provider, MOKA reported operating revenue of RMB
shipment volume reached 7.49 million units, generating operating revenue of RMB 8.03 billion and
solidifying its position as a global leader. Meanwhile, MOKA's monitor ODM business also
experienced rapid expansion, with shipments rising 28% year-on-year to 4.62 million units.
Additionally, businesses such as Highly and TPC also achieved the goal set at the beginning of the
year and sustained healthy development.
Facing a severe and complex external environment, the Company will embrace the spirit of
“Embarking on the Voyage and Pressing Ahead Against All Odds.” By adhering to the operational
philosophy of “Strategic Leadership, Innovation-Driven, Advanced Manufacturing, and Global
Operations”, the Company will seize the historic opportunities presented by the upgrade of the
technology manufacturing industry and the transformation of the global energy structure to achieve
sustainable high-quality development and advance toward global leadership.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
III. Analysis of Core Competitiveness
Since its establishment in 1981, TCL has consistently demonstrated resilience and adaptability,
successfully navigating through various market cycles. Through sustained exploration, reform, and
transformation, the Company has always stood firm at the forefront, demonstrating the audacity to
pioneer, and emerged as a globally leading high-tech industry group.
In 2018, TCL underwent its most significant corporate transformation, shifting from a
diversified conglomerate to a specialized business model focused on developing high-tech and
capital-intensive industries with long investment cycles. Following its rebranding to “TCL TECH.”
in 2020, the Company delisted Zhonghuan Electronic in July, paving the way for its expansion into
new energy photovoltaics and silicon materials. The Company acquired Suzhou Samsung in August
acquisition and integration of LG’s Guangzhou LCD and module facility in 2025, reinforcing its
position as a key player in the display sector.
At present, TCL Tech has established a business structure centered on displays and new
energy photovoltaics. With a well-defined development roadmap, efficient operations, and
outstanding competitive advantages, the Company has been gradually improving its core
competitiveness and sustainable development capabilities.
Leading at scale: Optimizing business portfolios and building scale advantages
TCL CSOT, a preeminent global display company and a pioneer in domestic display
manufacturing, has cumulatively invested over RMB 280 billion. It currently operates 11 state-of-
the-art panel lines and 5 module factories, serving a diverse range of global clients. The Company
has established a leading position in large-sized panels globally through both self-built production
lines and the acquisition of Suzhou Samsung. In the first half of 2025, TCL CSOT ranked second
globally in TV panel shipments. The Company has built t9 production line targeting high-value-
added mid-size products such as IT and commercial displays, achieving a full-size strategic layout.
In the first half of 2025, The Company secured the world’s second-largest market share in MNT
panels and ranked first in key segments such as e-sports monitors and LTPS laptops. By actively
improving the layout of the value chain and expanding the production capacity of self-built modules,
TCL CSOT has further improved the Company's control and profitability in the value chain. TCL
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CSOT has passed through several industry cycles, evolving from a "follower" to a "peer", and now
a "leader". It has transformed from a large-size panel leader to an all-size display player, gradually
expanding from panel manufacturing to comprehensive display solutions, driving the Company's
high-quality development.
TZE will continue to leverage its advantages in production capacity, product offerings, and
cost structure, while gradually improving its relative competitiveness and establishing its leading
edge in the industry through technological innovations, manufacturing transformations, and
management reforms. The Company is driving ongoing improvements in its flexible photovoltaics
wafer manufacturing to strengthen its competitive edge. We are the global leader in terms of
monocrystalline silicon capacity and hold the largest worldwide market share for G12 wafers. The
international expansion continues to progress, marked by the on-schedule establishment of an
overseas wafer manufacturing facility in collaboration with Saudi Arabia’s Public Investment Fund
(PIF) and Vision Industries (VI). In terms of photovoltaics modules, the Company leveraged its
patented technological innovations to develop differentiated products. By actively investing in new
battery technologies, the Company progressively established manufacturing strengths to provide
customers with higher-quality products.
Leading in technology and ecology: Achieving leading edge technology by focusing on
core industries
The Company has established a strategic foothold in core technologies (i.e., displays and new
energy photovoltaics) by capitalizing on its subsidiaries TCL CSOT and TZE. Through strategic
partnerships with upstream and downstream industry players, the Company has built a robust global
ecosystem for technology and innovation, and is steadily advancing its technological leadership in
next-generation display technologies, as well as G12 and N-type photovoltaics materials. The
Company has applied for over 79,000 patents, and facilitated or participated in the establishment of
more than 300 industry standards, underscoring its status as a preeminent high-tech enterprise. The
Company has secured over 2900 patents in quantum dot display technology, ranking second
globally, which will ensure the independent and controllable development of key technologies for
next-generation displays. TCL Technology has established 29 R&D centers worldwide, and has
been certified with 9 national-level open innovation platforms and 33 provincial-level innovation
platform qualifications.
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Leading in efficiency and management: navigating cycles with industry-leading
efficiency and effectiveness
Based on its scale and technological prowess, TCL TECH. has achieved efficiency and
benefits which maintain its industry leadership through continuous management changes and
digitalization upgrades. TCL CSOT leverages the synergy of its twin factories to optimize
production line planning and maximize capacity expansion. By pursuing cost excellence, the
Company has established an end-to-end cost advantage. Through management reforms, it has
enhanced overall operational efficiency, resulting in continuous improvements in product quality
and performance, as well as a leading competitive position in the industry. At the same time, TCL
CSOT has established proven risk management capabilities that have been honed through multiple
industry cycle fluctuations. Looking forward, TCL CSOT will make use of this core competency,
and will be well-poised to navigate future uncertainties and achieve global leadership.
Amidst the cyclical downturn in the new energy photovoltaics industry, TZE has consistently
adhered to its core business philosophy of “digging in”, and comprehensively implemented Industry
frameworks. By continuously improving production automation, operational efficiency, and
management capabilities, TZE is committed to successfully navigate the industry cycle and emerge
as a leading global player in the new energy photovoltaics sector.
Cultural Leadership: Guided by our core values of "change, innovation, accountability,
and excellence", the Company is being driven to achieve industry leadership
In 2020, TCL inaugurated a new phase of corporate culture, as laid out in its strategic
document The Path to Global Leadership. The Company has adopted a core mission centered
around "leading technology, harmonious coexistence", underpinned by the core values of "change,
innovation, accountability, and excellence". This cultural transformation has empowered TCL
employees to embrace change, drive business optimizations and upgrades through active
exploration and innovation, and guided TCL in dedicating itself to delivering superior products and
services to its valued customers through accountability and the pursuit of excellence. In the face of
a complex and ever-changing external business environment, TCL employees will continue to
uphold the spirit and culture of “The Path to Global Leadership”. TCL will boldly lead the way,
fearlessly compete, and drive the Company to effectively respond to business changes, entering a
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new stage of development.
IV. Analysis of Core Businesses
Overview
See the relevant contents in “II. Main Businesses of the Company during the Reporting Period”.
Year-on-year changes in key financial information
Unit: RMB
H1 2025 H1 2024 Change (%) Reason for change
Operating revenue 85,560,004,497 80,223,736,962 6.65% No significant change
Operating cost 74,082,838,353 70,642,557,593 4.87% No significant change
Sales expenses 1,163,964,526 877,396,554 32.66% Mainly due to the increase in new subsidiaries
Administrative expenses 2,200,561,949 2,003,839,241 9.82% No significant change
Financial expenses 2,141,281,686 2,091,274,666 2.39% No significant change
Mainly due to the improvement in the display
Income tax expense 315,894,303 52,211,560 505.03% business
R&D investments 4,528,645,518 4,265,857,601 6.16% No significant change
Net cash generated from operating Mainly due to the improvement in the display
activities
Net cash used in investing Mainly due to the acquisition of LG’s Guangzhou
-22,308,345,614 -17,444,499,442 -27.88% LCD and module facility
activities
Net cash generated from financing Mainly due to the repayment of principal and
activities
Net increase in cash and cash Mainly due to the year-on-year increase in net cash
equivalents
Significant changes to the profit structure or sources of the Company during the Reporting Period
□Applicable Not applicable
No significant changes to the profit structure or sources of the Company during the Reporting Period.
Breakdown of operating revenue
Unit: RMB
H1 2025 H1 2024
As % of total As % of total Change (%)
Amount operating Amount operating revenue
revenue (%) (%)
Total operating revenue 85,560,004,497 100% 80,223,736,962 100% 6.65%
By operating division
Display business 57,550,502,531 67.26% 49,877,063,111 62.17% 15.38%
New energy photovoltaics and
other silicon materials business
Distribution business 14,674,516,380 17.15% 13,649,332,920 17.01% 7.51%
Other and offsets -63,137,490 -0.07% 483,847,913 0.61% -113.05%
By product category
Display devices 57,550,502,531 67.26% 49,877,063,111 62.17% 15.38%
New energy photovoltaics and
other silicon materials
Distribution of electronics 14,674,516,380 17.15% 13,649,332,920 17.01% 7.51%
Other and offsets -63,137,490 -0.07% 483,847,913 0.61% -113.05%
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By operating segment
Chinese Mainland 54,848,748,806 64.11% 53,896,026,672 67.18% 1.77%
Overseas Countries and Regions
(including Hong Kong)
Note: The display business revenue mentioned above includes the revenue from TCL CSOT and Moka Technology.
Operating division, product category, or region contributing over 10% of operating revenue or operating profit
Applicable □Not applicable
Unit: RMB
Change in Change in
Change in gross
Operating Gross profit operating operating cost
Operating cost profit margin year-
revenue margin revenue year- year-on-year
on-year (%)
on-year (%) (%)
By operating division
Display
business
New energy
photovoltaics
and other
silicon
materials
business
Distribution
business
By product category
Display devices 57,550,502,531 45,867,436,666 20.30% 15.38% 12.57% 1.99%
New energy
photovoltaics
and other 13,398,123,076 14,412,073,108 -7.57% -17.36% -13.57% -4.72%
silicon
materials
Distribution of
electronics
By operating segment
Chinese
Mainland
Overseas
Countries and
Regions 30,711,255,691 23,677,873,887 22.90% 16.65% 12.98% 2.51%
(including
Hong Kong)
Core business data in the recent term restated according to the changed methods of measurement that occurred in the Reporting
Period
□Applicable Not applicable
V. Analysis of Non-Core Businesses
Applicable □Not applicable
Unit: RMB
Amount As % of gross profit Source Sustainability
Mainly due to the
recognition of return
on investment from
Return on investment 831,296,321 239.17% Yes
joint ventures and
investment returns on
financial assets, etc
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Mainly due to the
movement in fair value
Gain/loss of fair-value
changes during the holding
period
Falling price of
Asset impairment -2,798,944,122 -805.28% inventory write-offs in No
line with the market
Non-operating income 29,824,684 8.58% - No
Non-operating
expenses
VI. Analysis of Assets and Liabilities
Unit: RMB
End of the Reporting Period December 31, 2024
Weight Main reason for
As % of total As % of total Change change
Amount Amount
assets assets
No significant
Monetary assets 28,544,342,940 7.13% 23,007,772,733 6.08% 1.05%
change
No significant
Accounts receivable 19,741,951,084 4.93% 22,242,152,687 5.88% -0.95%
change
No significant
Contract assets 397,673,182 0.10% 395,116,789 0.10% 0.00%
change
No significant
Inventories 20,535,401,675 5.13% 17,594,133,395 4.65% 0.48%
change
No significant
Investment property 602,893,409 0.15% 612,733,509 0.16% -0.01%
change
Long-term equity No significant
investments change
No significant
Fixed assets 172,569,694,580 43.09% 170,512,009,105 45.08% -1.99%
change
Construction in No significant
progress change
No significant
Right-of-use assets 6,593,796,271 1.65% 6,697,687,926 1.77% -0.12%
change
Short-term No significant
borrowings change
No significant
Contract liabilities 2,183,855,081 0.55% 1,969,271,038 0.52% 0.03%
change
Long-term No significant
borrowings change
No significant
Lease liabilities 6,300,595,064 1.57% 6,334,785,779 1.67% -0.10%
change
□Applicable Not applicable
Applicable □Not applicable
Unit: RMB
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Gain/loss of Impairment
Cumulative
fair-value allowances Amount
fair-value Amount sold in
Beginning changes in established purchased in
Item changes the Reporting Other changes Ending amount
amount the in the the Reporting
recorded in Period
Reporting Reporting Period
equity
Period Period
Financial
assets
trading
financial
assets
(excluding
derivative
financial
assets)
financial 172,488,618 195,979,459 - - 71,100,768 377,103,775 106,260,937 168,726,007
assets
Receivables 831,407,255 3,128,218,996 3,959,626,251
financing
Investments
in other 387,850,846 - -189,028,958 - 19,840,940 11,101,277 17,726,817 414,317,326
equity
instruments
non-current
financial
assets
Subtotal of
financial 20,177,917,655 481,081,042 -189,028,958 - 52,717,953,435 45,519,578,697 3,350,171,187 31,207,544,622
assets
Total of the
above
Financial
liabilities
Significant changes to the measurement attributes of the major assets in the Reporting Period
□Yes No
Carrying amount
Restricted assets Reason for restriction
(RMB’0,000)
Monetary assets 25,524 Deposited in the central bank as the required reserve
Monetary assets 173,244 Other monetary assets and restricted bank deposits
Fixed assets 9,259,083 As collateral for loan
Intangible assets 410,626 As collateral for loan
Held-for-trading financial assets 14,540 In pledge
Construction in progress 91,464 As collateral for loan
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Accounts receivable 94,542 In pledge
Contract assets 13,319 In pledge
Total 10,082,342
VII. Investments Made
Applicable □Not applicable
Total investment amount in the Total investment amount in the same
Change (%)
Reporting Period (RMB) period last year (RMB)
Applicable □Not applicable
Unit: RMB’000,000,000
Investment
Progress
gains and Index to
Shareholdin as of the Date of
Name of Principal Investment Investmen Funding Investmen Product Expected losses for Involvement disclosed
g Partner balance disclosure
investee activity method t amount source t period type returns the in litigation information
percentage sheet (if any)
Reporting (if any)
date
Period
Producing
large-sized
LG
LCD panels Not
Display Self- Not Not Transferr Not
for TV and 100% None applicabl No
(China) raised applicable applicable ed applicable
commercial e
Co., Ltd.
display Equity March 19, ( www.
products acquisition 2025 cn)
LG
Display Producing Not
Self- Not Not Transferr Not
(Guang LCD display 100% None applicabl No
raised applicable applicable ed applicable
zhou) Co., modules e
Ltd.
Total -- -- 137.03 -- -- -- -- -- -- -- -- -- -- --
Note: 1. LG Display (China) Co., Ltd. has been renamed Guangzhou China Star Optoelectronics Technology Co., Ltd.; LG Display
(Guangzhou) Co., Ltd. has been renamed Guangzhou China Star Optoelectronics Display Co., Ltd.
□Applicable Not applicable
(1) Securities Investments
Applicable □Not applicable
Unit: RMB'0,000
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Gain/loss
of fair- Cumulative Amount
Amount Gain/loss
Initial Accounting Beginning value fair-value purchased Ending
sold in the in the Accounting Funding
Security type Stock Code Stock Abbr. investment measurement carrying changes in changes in the carrying
Reporting Reporting title source
cost method amount the recorded in Reporting amount
Period Period
Reporting equity Period
Period
Other non-
current
Stocks 688469.SH UNT 26,745 Fair value 24,113 -1,692 - - - -1,692 22,421 Self-funded
financial
assets
Other non-
current
Stocks 300842.SZ DK Electronic Materials, Inc. 2,430 Fair value 24,306 1,423 - - 10,609 3,407 16,953 Self-funded
financial
assets
Measurement at Debt
Bonds XS2587421681 Nanyang Commercial Bank 7,083 7,359 - - - - 264 7,328 Self-funded
amortized cost investments
Held-for-
trading
Bonds USG98149AG59 WYNN MACAU LTD 623 Fair value 4,978 39 - - - 173 4,996 Self-funded
financial
assets
Held-for-
trading
Bonds USG9T27HAG93 VEDANTA RESOURCES 2,388 Fair value 6,158 -26 - 9,179 10,505 3 4,780 Self-funded
financial
assets
Held-for-
trading
Bonds XS2560662541 LINK CB LTD 4,455 Fair value 6,075 34 - - 1,832 157 4,252 Self-funded
financial
assets
Held-for-
trading
Bonds XS3038559129 MONGOLIAN MINING CORP 5,680 Fair value - -122 - 6,589 2,313 -130 4,155 Self-funded
financial
assets
Held-for-
trading
Bonds USF2941JAA81 ELECTRICITE DE FRANCE SA 2,919 Fair value 4,074 -1 - - - 163 4,056 Self-funded
financial
assets
Held-for-
trading
Bonds USG84228GE26 STANDARD CHARTERED PLC 4,300 Fair value 3,833 -2 - 1,501 1,501 145 3,815 Self-funded
financial
assets
Held-for-
trading
Bonds XS1729875598 ISLAMIC REP OF PAKISTAN 2,740 Fair value 2,611 133 - 1,010 - 232 3,743 Self-funded
financial
assets
Other securities investments held at the period-end 226,931 -- 140,278 1,473 -18,792 249,392 266,997 3,672 127,694 -- --
Total 286,295 -- 223,786 1,257 -18,792 267,671 293,757 6,393 204,193 -- --
Disclosure date of the board announcement approving securities
April 28, 2025
investments
Date for disclosure and announcement on approving securities
May 20, 2025
investment by the general meeting (if any)
(2) Investments in Derivative Financial Instruments
Applicable □Not applicable
Applicable □Not applicable
Unit: RMB'0,000
Closing contractual amount as
a percentage of the closing net
Beginning amount Ending amount Gain/loss
assets reported by the
in the
Type of contract Company (%)
Reporting
Period
Contractual Transaction Contractual Transaction Contractual Transaction
amount limit amount limit amount limit
Total 5,336,655 203,469 5,449,156 210,870 42,305 42.13 1.63
Accounting policies and
No significant change.
specific accounting principles
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
for hedging business during
the Reporting Period and a
description of whether there
have been significant changes
from those of the previous
reporting period
Description of actual profits During the Reporting Period, profit from changes in the fair value of hedged items amounted to RMB 120.41
and losses during the million; profit from the settlement of matured forward exchange contracts amounted to RMB 107.51 million, and
Reporting Period profit from the valuation of outstanding forward exchange contracts amounted to RMB 195.13 million.
During the Reporting Period, the Company's main foreign exchange risk exposures included exposures of assets and
Description of the hedging liabilities denominated in foreign currencies arising from business such as outbound sales, raw material
effect procurement, and financing. The uncertain risks arising from the exchange rate fluctuations were effectively hedged
by using derivative contracts with the same purchase amounts and maturities in opposite directions.
Funding source for derivative
Self-funded.
investment
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 trends and predicting operations (including orders and capital
plans), adopted forward foreign exchange contracts, options, and interest rate swaps to avoid future exchange rate
and interest rate risks. As its business scale changes, the Company will adjust its exchange rate risk management
strategy according to the actual market conditions and business plans.
Risk analysis:
associated with the main business operations. There is a market risk associated with potential losses due to
fluctuations in market prices, such as underlying interest rates and exchange rates, which affect the prices of
financial derivatives;
financial institution, and there is a risk of incurring losses due to paying fees to the bank for liquidating or selling
the derivatives below the buying prices;
there is a risk of performance failure due to deviation arising between the actual operating results and budgets;
approvals in accordance with established procedures or to accurately, promptly, and comprehensively record
Analysis of risks and control information related to financial derivative transactions may result in potential losses or missed trading opportunities
measures associated with in the derivative business. Moreover, if the trading operator fails to fully understand the terms of transaction
derivative investments held in contracts or product information, the Group may face legal risks and transaction losses.
the Reporting Period Risk control measures:
(including but not limited to 1. Basic management principles: the Group strictly follows the hedging principle mainly to fix costs and avoid risks.
market risk, liquidity risk, It is necessary for the financial derivatives business to align with the variety, size, direction, and duration of spot
credit risk, operational risk, goods, and this should not involve any speculative trading. When selecting hedging instruments, only simple
legal risk, etc.) financial derivatives that are closely related to the main business operations and comply with the requirements of
hedge accounting should be selected. Avoid engaging in complex business activities that go beyond the established
scope of operations and involve risks and pricing that are difficult to understand;
derivatives business, covering all key aspects such as preemptive prevention, in-process monitoring, and post-
processing. It reasonably allocates professionals for investment decision-making, business operations, and risk
control as required. Personnel involved in investment are required to fully understand the risks of financial
derivatives investment and strictly implement the business operations and risk management system of derivatives.
Before the holding company engages in derivative business activities, the holding company must submit detailed
business reports to the competent department of the Group, including information about its internal approval, main
product terms, operational necessity, preparations, risk analysis, risk management strategy, fair value analysis, and
accounting methods. Additionally, a special summary report of previously conducted operations should be
submitted. Only after obtaining the opinion of the relevant professional departments within the Group may the
holding company proceed with the operations.
promptly assess the risk exposure changes of invested financial derivatives, and compile reports to the Board of
Directors on business development;
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
value change of any hedging assets results in a total loss of either 10% of the Company's most recent audited net
assets, or more than RMB 10 million in absolute value.
Changes in market prices or
With the rapid expansion of overseas sales, the Company continued to follow the above rules in the operation of
fair value of derivative
forward foreign exchange contracts, interest rate swap contracts, and currency swap contracts to avoid and hedge
investments in the Reporting
against foreign exchange risks arising from operations and financing. During the Reporting Period, there were
Period (fair value analysis
profits and losses of RMB 120.41 million from changes in the fair value of hedged items and RMB 302.64 million
should include the
from derivatives. The fair value of derivatives is determined by the real-time quoted price of the foreign exchange
measurement method and
market, and is based on the difference between the contractual price and the forward exchange rate quoted
related assumptions and
immediately on the foreign exchange market on the balance sheet date.
parameters)
Legal matters involved (if
None
applicable)
Disclosure date of the board
announcement approving the
April 28, 2025
derivative investments (if
any)
Disclosure date of the general
meeting announcement
May 20, 2025
approving the derivative
investments (if any)
□Applicable Not applicable
There were no derivative investments for speculative purposes made by the Company during the Reporting Period.
□Applicable Not applicable
No raised capital is used during the Reporting Period.
VIII. Sale of Major Assets and Equity Investments
□Applicable Not applicable
The Company did not dispose of any major assets at the end of the Reporting Period.
□Applicable Not applicable
IX. Principal Subsidiaries and Joint Stock Companies
Applicable □Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the Company's net profits
Unit: RMB'0,000
Company Type of Principal Registered Operating Operating
Company name Total assets Net assets Net profits
change activity capital revenue profit
TCL China Star Subsidiary Display RMB 33.08 5,042,920 447,706 431,627
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Optoelectronics billion 21,364,771 7,808,211
Technology Co.,
Ltd.
New energy
TCL Zhonghuan
photovoltaics
Renewable
and other RMB 4.04
Energy Subsidiary 12,481,691 4,176,715 1,339,812 -471,875 -483,617
silicon billion
Technology Co.,
materials
Ltd.
business
Highly
Distribution RMB 412
Information Subsidiary 813,850 160,227 1,467,452 8,562 6,796
business million
Industry Co., Ltd.
Acquisition and disposal of subsidiaries in the Reporting Period
Applicable □Not applicable
How subsidiaries were
Effects on overall operations and
Company name obtained or disposed of
operating performance
in the Reporting Period
Zhengzhou Shangzhao Electronic Technology Co., Ltd. Newly established No significant effect
Chongqing Sunpiestore Technology Co., Ltd. Newly established No significant effect
Chongqing Shangpai Zhengcheng Technology Co., Ltd. Newly established No significant effect
Guizhou Shangpai Zhengcheng Technology Co., Ltd. Newly established No significant effect
Urumqi Shangpai Lingchuang Trading Development Co., Ltd. Newly established No significant effect
Anyang Shangyi Technology Co., Ltd. Newly established No significant effect
Chongqing Shangpai Zhengyan Technology Co., Ltd. Newly established No significant effect
Changji Shangpai Yifan Trading Co., Ltd. Newly established No significant effect
Urumqi Shangpai Zhuoyao Trading Development Co., Ltd. Newly established No significant effect
Shake Kawo (Xi'an) Technology Co., Ltd. Newly established No significant effect
Xi'an Shengkai Shangpai Technology Co., Ltd. Newly established No significant effect
Luoyang Shangyi Electronic Technology Co., Ltd. Newly established No significant effect
Zhengzhou Shangfeng Electronic Technology Co., Ltd. Newly established No significant effect
Xi'an Shake Jisu Technology Co., Ltd. Newly established No significant effect
Luoyang Shangxuan Electronic Technology Co., Ltd. Newly established No significant effect
Xi'an Shengfeng Shangpai Technology Co., Ltd. Newly established No significant effect
Chongqing Shangpai Zhengqi Technology Co., Ltd. Newly established No significant effect
Chongqing Shangpai Zhengfu Technology Co., Ltd. Newly established No significant effect
Chongqing Shangpai Zhengxin Technology Co., Ltd. Newly established No significant effect
Chongqing Shangpai Zhenghong Technology Co., Ltd. Newly established No significant effect
Chongqing Shangpai Zhengrong Technology Co., Ltd. Newly established No significant effect
Luoyang Shangwu Electronic Technology Co., Ltd. Newly established No significant effect
Zhengzhou Titi YunChuang Technology Co., Ltd. Newly established No significant effect
Guangzhou China Star Optoelectronics Technology Co., Ltd. Acquisition No significant effect
Guangzhou China Star Optoelectronics Display Co., Ltd. Acquisition No significant effect
Shenzhen Pulin Gaote Circuit Co., Ltd. Acquisition No significant effect
Capital increase for
Maoxing Holdings Limited No significant effect
controlling interest
TCL International Marketing Limited (BVI) De-registered No significant effect
Hohhot Shuguang New Energy Co., Ltd. Transferred No significant effect
Shanxi Province Loufan County Huanshuo New Energy Co.,
Transferred No significant effect
Ltd.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Xuzhou Huanneng New Energy Co., Ltd. Transferred No significant effect
Tianjin Binhai Huanxu New Energy Co., Ltd. Transferred No significant effect
Heilongjiang Huanju New Energy Co., Ltd. Transferred No significant effect
Explanation of Principal Subsidiaries and Joint Stock Companies: None
X. Structured Bodies Controlled by the Company
□Applicable Not applicable
XI. Risks and Responses
Global economic growth has underperformed, yet a definitive turnaround in major economies
has yet to emerge. Geopolitical conflicts and rising trade barriers are accelerating global economic
fragmentation, fueling a shift toward regionalization. Moreover, with persistent global inflation and
significant volatility in currency and financial markets, companies face considerable operational
risks. To address these challenges, the Company will continue to closely monitor macroeconomic
and geopolitical developments to identify emerging risks and develop contingency plans. Aligned
with the national strategy of “driving growth through new quality productive forces and promoting
innovation and technological breakthroughs,” the Company will strengthen its focus on core
businesses, uphold a technology and innovation-driven strategy to enhance competitive advantage,
increase shareholder value, and effectively navigate macroeconomic uncertainty.
The display panel industry has yet to see a significant recovery in demand for the first half of
consumption stimulus policies. Meanwhile, the photovoltaic industry is still grappling with a state
of oversupply, which is unlikely to improve in the near term. The Company will diligently monitor
shifts in industry supply and demand and optimize capacity allocation. At the same time, it will
enhance its investment in R&D to continuously enhance the technological content of products. This
strategic approach will allow the Company to expand its scale and efficiency advantages, thereby
building high competitive barriers and strengthening its market position.
Due to geopolitical friction and volatile raw material prices, global supply chain security and
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
costs are facing considerable uncertainty. To mitigate these risks, the Company remains committed
to its globalization strategy by deepening localized operations and optimizing its global supply
chain layout, aiming to build a more resilient risk-response capability. Furthermore, the Company
will establish long-term, stable strategic partnerships with its suppliers through collaboration and
other means, which will strengthen its ability to monitor, identify, and respond to upstream supply
risks.
Amid intensified competition in the display and new energy materials industries, the
expanding business and technology footprint of the Company has led to more frequent patent
disputes and higher IP risks. To address this, the Company will accelerate substantial R&D
investments, refining our core technologies and patent portfolio through a “self-development +
ecosystem collaboration” model. To further fortify our IP defense, the Company is forging strategic
partnerships with leading professional agencies. These collaborations will strengthen our
investigation of at-risk patents and enhance our patent risk early-warning systems, effectively
mitigating litigation threats and elevating our overall IP risk management.
Meanwhile, growing trade protectionism underscores the critical importance of robust
compliance management in overseas operations. The Company will strengthen its compliance
framework by implementing a system designed to meet the export control regulations of all key
global markets. These efforts include streamlining compliance procedures, implementing rigorous
employee training programs, fostering a culture of awareness, and collaborating closely with local
partners to proactively manage compliance risk.
XII. Formulation and Implementation of the Rules for Market Value Management and
Valuation Enhancement Plan
Whether the Company has formulated the Rules for Market Value Management
Yes □No
Whether the Company has disclosed the valuation enhancement plan
□Yes No
On December 27, 2024, the Proposal on Formulating the Rules for Market Value Management was deliberated on and adopted
at the 7th Meeting of the 8th-term Board of Directors. To strengthen the Company's market value management, further standardize its
market value management practices, effectively enhance the Company's investment value, increase investor returns, and protect the
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
legitimate rights and interests of the Company, the investors and other stakeholders, the Company has formulated the Rules for
Market Capitalization Management in accordance with the Company Law, the Securities Law, the Several Opinions of the State
Council on Strengthening Regulation to Prevent Risk and Promoting the High-quality Development of the Capital Market, the
Administrative Measures for the Information Disclosure by Listed Companies, the Guidelines for the Regulation of Listed Companies
No. 10 – Market Value Management, and other related provisions.
The Company firmly upholds the principle of shareholder returns, taking measures to protect investor interests, especially those
of minority shareholders. It upholds ethical operations, regulatory compliance, and a focused approach to core business, ensuring
prudent management. By developing advanced capabilities, the Company continuously enhances operational efficiency and quality
growth. Additionally, the Company prioritizes strong investor relations, enhancing transparency and communications to ensure
investment value reflects its core strengths, while proactively strengthening investor confidence.
XIII. Implementation of the "Joint Improvement of Quality and Investment Return" Action
Plan
Whether the Company has disclosed the "Joint Improvement of Quality and Investment Returns" Action Plan Announcement.
Yes □No
To better implement the guidance on enhancing the quality and investment value of listed companies, the Company has
developed the "Joint Improvement of Quality and Investment Returns" Action Plan, which is based on in-depth research on industry
trends and careful consideration of our future business trajectory. In addition, the Company has disclosed the progress report on the
"Joint Improvement of Quality and Investment Returns" Action Plan in combination with the implementation. For more details,
please see the Joint Improvement of Quality and Investment Returns Action Plan and the progress report on the Joint Improvement of
Quality and Investment Returns Action Plan disclosed on February 28, 2024, and May 8, 2024, respectively.
Anchored in its core display and new energy photovoltaic businesses, the Company leverages its operating principles—
"Strategic Leadership, Innovation-Driven, Advanced Manufacturing, and Global Operations"—to reinforce its industry leadership
and accelerate a future of sustainable, high-quality growth. Motivated by confidence in the Company’s future development and a
commitment to protecting the interests of all shareholders, the Proposal on Repurchase of a Portion of the Company’s Publicly
Traded Shares in 2025 was approved at the ninth meeting of the Eighth Board of Directors on April 15, 2025. The Company planned
to repurchase a portion of its publicly issued shares through centralized bidding on the Shenzhen Stock Exchange trading system. The
total amount of the repurchase was set at no less than RMB 700 million (inclusive) and no more than RMB 800 million (inclusive),
with a price cap of RMB 6.70 per share (inclusive). The repurchased shares will be used for the Company’s employee stock
ownership plan or equity incentive program. If the shares are not used within 36 months after the completion of the repurchase, the
unused portion will be canceled in accordance with relevant procedures. As of July 25, 2025, the 2025 share repurchase plan has
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
been fully implemented.
At the 2024 Annual General Meeting held on May 20, 2025, the Company approved the Proposal for the Company’s 2024
Profit Distribution Plan: Based on the total existing share capital of 18,779,080,767 shares, a cash dividend of RMB 0.5 (tax
inclusive) shall be distributed to all shareholders for every 10 shares, with a total distributed profit of RMB 938,954,038.35. The
remaining undistributed profit will be carried forward for future distribution. As of July 18, 2025, the aforementioned dividend
distribution plan has been fully implemented.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Part IV Corporate Governance, Environment and Social
Responsibility
I. Change of Directors, Supervisors and Senior Management
Applicable □Not applicable
Name Office title Type of change Date of change Reason for change
Yan Xiaolin Director Elected January 13, 2025 Elected
II. Interim Dividend Plan and Conversion from Capital Reserves into Share Capital
during the Reporting Period
□Applicable Not applicable
The Company has no interim dividend plan for profit distribution or conversion of capital reserve fund into share capital.
III. Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures
for Employees
Applicable □Not applicable
□Applicable Not applicable
Applicable □Not applicable
All the valid employee stock ownership plans during the Reporting Period
Proportion to
Total number of
Number of total share capital Funding source for
Name Scope of employees shares held Changes
employees of listed implementing the plan
(share)
companies
Employees' legitimate
income, performance-based
Employee Stock middle and senior Less than Not
Ownership Plan management and 3,600 applicable
permitted by laws and
(Phase III) outstanding key staff
regulations
Employees' legitimate
The Company's
middle and senior Less than Not
Stock Ownership 117,993,100 0.63% bonus or other distribution
management and 3,600 applicable
Plan permitted by laws and
outstanding key staff
regulations
Note: By the end of the reporting period, 2025 Employee Stock Ownership Plan (Draft) and other related matters have been deliberated and approved
by the Board of Directors. On July 17, 2025, the plan was deliberated and approved by the general meeting. The underlying shares have not been
transferred/purchased.
Shareholdings of Directors, Supervisors, and Senior Management under the Employee Stock Ownership Plan during the Reporting
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Period
Number of shares held at the Number of shares held at
Proportion to total share
Name Position beginning of the Reporting the end of the Reporting
capital of the Company
Period (share) Period (share)
Li
Chairman, CEO
Dongsheng
Zhao Jun Director, Senior Vice President
Director, Board Secretary and Senior
Liao Qian About 17.97 million shares About 8.94 million shares 0.05%
Vice President
Li Jian CFO
Yan Xiaolin Senior Vice President, CTO
Zhu Wei Employee Representative Supervisor
Changes of asset management institutions during the Reporting Period
□Applicable Not applicable
Changes of equity caused by the holder’s disposal of shares during the Reporting Period
□Applicable Not applicable
Exercise of shareholder rights during the Reporting Period
□Applicable Not applicable
During the reporting period, the Company’s Employee Stock Ownership Plans did not participate in voting at the general meeting or
exercise other shareholder rights.
Other relevant information and explanations of the Employee Stock Ownership Plan during the Reporting Period
□Applicable Not applicable
Changes in the members of the management committee for Employee Stock Ownership Plan
□Applicable Not applicable
Financial impact of the Employee Stock Ownership Plan on the Company during the Reporting Period and related accounting
treatment
Applicable □Not applicable
The financial, accounting treatment and taxation involved in the Company’s Employee Stock Ownership Plan (ESOP) shall be
implemented according to relevant laws, regulations and normative documents such as financial systems, accounting standards,
taxation systems, etc. The participants of the ESOP shall pay the personal income tax arising from their participation in accordance
with the law, and can choose to have the plan sell a corresponding amount of shares to offset the personal income tax, with the
remaining shares then allocated to them.
Termination of Employee Stock Ownership Plan during the Reporting Period
Applicable □Not applicable
Based on the relevant provisions of the 2021-2023 Employee Stock Ownership Plan (Phase I) (Revised Draft) and the 2021-2023
Employee Stock Ownership Plan (Phase II) (Draft), during the Reporting Period, all plan shares attributable to employees under the
aforementioned two plans have been fully vested, and the sales and transfer of such shares have been completed.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Other instructions: none
□Applicable Not applicable
IV. Environmental Information Disclosure
Whether the listed company and its major subsidiaries are included in the list of enterprises required to disclose environmental
information in accordance with laws
Yes □No
Number of enterprises included in the list of
enterprises that disclose environmental information 20
in accordance with the law
No. Name of enterprise Index for environmental information disclosure report
Enterprise Environmental Information Disclosure System (Hubei)
Wuhan China Star Optoelectronics http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/enterpriseInfo?
Technology Co., Ltd. XTXH=6a15f252-dd39-40a0-b08c-
ba0387086f16&XH=1677751270208009244672&year=2024
Enterprise Environmental Information Disclosure System (Hubei)
Wuhan China Star Optoelectronics http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/enterpriseInfo?
Bandaoti Display Technology Co., Ltd. XTXH=10470c7d-faf3-4981-8a87-
e813881ef749&XH=1677751269448009244672&year=2024
Department of Ecology and Environment of Guangdong Province -
Enterprise Environmental Information Disclosure System
Guangzhou China Star Optoelectronics
Bandaoti Display Technology Co., Ltd.
app.gdeei.cn/gdeepub/front/dal/report/list?entName=&reportType=temp&ar
eaCode=440100&entType=&reportDateStartStr=&reportDateEndStr=
Department of Ecology and Environment of Guangdong Province -
Enterprise Environmental Information Disclosure System
TCL China Star Optoelectronics
Technology Co., Ltd.
app.gdeei.cn/gdeepub/front/dal/report/list?entName=&reportType=temp&ar
eaCode=440100&entType=&reportDateStartStr=&reportDateEndStr=
Department of Ecology and Environment of Guangdong Province -
Enterprise Environmental Information Disclosure System
Shenzhen China Star Optoelectronics
Bandaoti Display Technology Co., Ltd.
app.gdeei.cn/gdeepub/front/dal/report/list?entName=&reportType=temp&ar
eaCode=440100&entType=&reportDateStartStr=&reportDateEndStr=
Enterprise Environmental Information Disclosure System (Jiangsu)
Suzhou China Star Optoelectronics http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
Technology Co., Ltd. webapp/web/viewRunner.html?viewId=http://ywxt.sthjt.jiangsu.gov.cn:1818
Enterprise Environmental Information Disclosure System (Jiangsu)
Suzhou China Star Optoelectronics http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
Display Co., Ltd. webapp/web/viewRunner.html?viewId=http://ywxt.sthjt.jiangsu.gov.cn:1818
Department of Ecology and Environment of Guangdong Province -
Enterprise Environmental Information Disclosure System
Guangzhou China Star Optoelectronics
Technology Co., Ltd.
app.gdeei.cn/gdeepub/front/dal/report/list?entName=&reportType=temp&ar
eaCode=440100&entType=&reportDateStartStr=&reportDateEndStr=
Inner Mongolia Zhonghuan Solar Enterprise Environmental Information Disclosure System (Inner Mongolia)
Material Co., Ltd. http://111.56.142.62:40010/support-yfpl-
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
web/web/viewRunner.html?viewId=http://111.56.142.62:40010/support-
yfpl-
web/web/sps/views/yfpl/views/yfplHomeNew/index.js&cantonCode=15000
Enterprise Environmental Information Disclosure System (Jiangsu)
Wuxi Zhonghuan Applied Materials http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
Co., Ltd. webapp/web/viewRunner.html?viewId=http://ywxt.sthjt.jiangsu.gov.cn:1818
Tianjin Zhonghuan Advanced Enterprise Environmental Information Disclosure System (Tianjin)
Material&Technology Co., Ltd. https://hjxxpl.sthj.tj.gov.cn:10800/#/gkwz/jcym
Tianjin Huanzhi New Energy Enterprise Environmental Information Disclosure System (Tianjin)
Technology Co., Ltd. https://hjxxpl.sthj.tj.gov.cn:10800/#/gkwz/jcym
Enterprise Environmental Information Disclosure System (Jiangsu)
Zhonghuan Advanced Bandaoti http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
Technology Co., Ltd. webapp/web/viewRunner.html?viewId=http://ywxt.sthjt.jiangsu.gov.cn:1818
Enterprise Environmental Information Disclosure System (Jiangsu)
http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
webapp/web/viewRunner.html?viewId=http://ywxt.sthjt.jiangsu.gov.cn:1818
Moka Technology (Guangdong) Co., Ecological Environment Statistics Business System
Ltd. https://hjtj.cnemc.cn/htqy/#/login
Central Pollution Control Board, India
https://eprplastic.cpcb.gov.in/
Industrial Park Management of the Department of Natural Resources and
CÔNG TY TNHH CÔNG NGHỆ Environment (Vietnam)
MOKA VIỆT NAM https://www.quangninh.gov.vn/So/sonongnghiepptnt/Trang/ChiTietTinTuc.a
spx?nid=8846
Ministry of Environment and Natural Resources
y Recursos Naturales | Gobierno | gob.mx
Enterprise Environmental Information Disclosure System (Tianjin)
http://111.33.173.33:10800/#/gkwz/jcym
Department of Ecology and Environment of Guangdong Province -
Techigh Circuit Technology (Huizhou)
Co., Ltd.
https://www-app.gdeei.cn/gdeepub/front/dal/report/list
The Company places a high priority on environmental protection by strictly adhering to national and local
environmental laws and regulations, conducting environmental management in full compliance with legal and
regulatory requirements, and disclosing relevant information in an orderly fashion to ensure its truthfulness,
accuracy, and completeness.
V. Social Responsibility
Consolidating and Expanding Poverty Alleviation Achievements, and Rural Revitalization
TCL TECH. is actively fulfilling its social responsibilities with a sustained commitment to public welfare.
Drawing on its industrial advantages, the TCL Public Welfare Foundation has donated photovoltaic power
generation systems to rural schools, forging a new green and sustainable model for educational support. It has also
advanced its smart education initiatives by expanding interconnected smart classroom networks between rural and
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
urban regions and extending cross-regional online teaching reach—efforts that foster equitable access to quality
educational resources. Simultaneously, the Foundation has fortified its university innovation support system. The
Foundation has deepened strategic collaborations with leading institutions, optimized mechanisms for nurturing
young scholars and technological innovation projects, and boosted the academic impact of its innovation and
entrepreneurship lectures. Additionally, the Foundation has comprehensively advanced its in-depth rural
revitalization initiative, prioritizing the implementation of localized projects in Huizhou—such as green energy
infrastructure development and rural education quality enhancement. This year, the “TCL Rose Action -
Employee Public Welfare Creativity Competition” will be upgraded to further promote sustainable public welfare
contributions.
Semi-Annual Summary of Work on Consolidating and Expanding Achievements in Poverty
Alleviation & Promoting Rural Revitalization
Rural education is a pivotal pillar of rural revitalization. To support this, the TCL Public Welfare Foundation,
in collaboration with TZE, donated rooftop photovoltaic (PV) power generation systems and their 25-year
electricity generation revenue to rural schools in need. The project not only utilizes green and clean energy,
aligning with national policies on energy conservation and environmental protection and the dual carbon goals,
but also generates income for the schools to improve their teaching environment and support students. To further
broaden the reach of this educational aid model and deepen the implementation of the “New Era Hope Project” in
support of rural education, the TCL Public Welfare Foundation collaborated with the China Youth Development
Foundation to donate rooftop photovoltaic systems to Hope Primary Schools nationwide. The project has already
reached rural areas, carrying out filed studies and visits in places like Shaanxi to understand the conditions and
needs of local schools and students.
To promote the balanced development of education between urban and rural areas and facilitate the
interconnection and sharing of educational resources, the TCL Public Welfare Foundation, in collaboration with
TCL Commercial Information Technology (Huizhou) Co., Ltd., TCL Communication Technology Holdings
Limited, and other partners, has established TCL Smart Classrooms in schools across urban and rural regions.
Leveraging next-generation technology, these classrooms form a “1+N” smart classroom network equipped with
TCL's advanced educational tools, including smart interactive blackboards, educational tablets, and eye-protection
lighting systems. This initiative enables the sharing of high-quality educational resources and promotes equity in
education. In the first half of the year, the program organized six interdisciplinary classes, enabling over 700
urban and rural students from diverse regions to learn and grow alongside one another through the smart
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
classroom network. To date, the project has benefited more than 7,700 students. The “TCL Smart Classroom”
initiative continued to empower balanced urban-rural education, making the “zero-distance” sharing of quality
educational resources a reality.
The TCL Public Welfare Foundation continued to advance its university donation series to advance
educational development, foster innovative talent, and promote breakthroughs in frontier technologies. In the first
half of 2025, the "TCL University Donation System" awarded RMB 6.5 million in funding to eight partner
universities, including South China University of Technology, Nankai University, Xidian University, and
Huazhong University of Science and Technology. The initiative also recognized five TCL Young Scholars and
selected five projects for the TCL Technology Innovation Fund. The selection process for these awards will
continue in the second half of the year. The “SUSTech-TCL Innovation and Entrepreneurship Lecture Series” also
continued, with a donation of RMB 1 million in the first half of 2025. The series featured nine themed lectures,
delivered by distinguished experts such as Tao Jingzhou, an independent arbitrator at the Paris Court and a
member of the Expert Committee of the China International Commercial Court of the Supreme People’s Court,
and Xie Kechang, former Vice President and Academician of the Chinese Academy of Engineering and a Foreign
Academician of the U.S. National Academy of Engineering.
In addition, the TCL Public Welfare Foundation continued to deepen its targeted assistance through measures
such as infrastructure construction, rural development support, and educational quality improvement, which helps
consolidate poverty alleviation achievements and promote urban-rural integration. In 2025, the Foundation
prioritized three local public welfare projects in Huizhou: donating RMB 1 million to construct a smart “PV-
Storage-Charging” integrated charging station in Xintang Village, to advance the development of green energy
infrastructure in rural areas; allocating RMB 1 million to support Huizhou’s rural revitalization project,
specifically for improving local educational and living conditions; and granting RMB 150,000 to fund an open
reading space at Huizhou Zhongkai High-Tech Zone No. 6 Middle School, enhancing the campus cultural
environment and improving youth literacy. Concurrently, the Foundation continued to organize the “TCL Rose
Action - Employee Public Welfare Creativity Competition”, encouraging employees to launch innovative projects
with social value and engage in community assistance at multiple levels.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Part V Significant Events
I. Commitments fulfilled during the reporting period and outstanding commitments as of the
end of the reporting period by the Company’s actual controller, shareholders, related parties,
acquirers, the Company itself, and other relevant commitment parties
□Applicable Not applicable
During the Reporting Period, there were no commitments that were made by the Company, its actual controller, shareholders, related
parties, acquirers, amd other relevant parties to be fulfilled within the reporting period or remained overdue and unfulfilled as at the
end of the reporting period.
II. Occupation of the Company’s funds by the Controlling Shareholder or any of Its Related
Parties for Non-Operational Purposes
□Applicable Not applicable
No such cases in the Reporting Period.
III. Irregularities in the Provision of Guarantees
□Applicable Not applicable
No such cases in the Reporting Period.
IV. Engagement and Disengagement of Independent Auditor
Whether the interim financial report has been audited
□Yes No
The Interim Report has not been audited.
V. Explanation of the Board of Directors and Supervisory Committee on the “Non-Standard
Auditor’s Report” for the Reporting Period
□Applicable Not applicable
VI. Explanation of the Board of Directors on the “Non-Standard Auditor’s Report” for the
Previous Year
□Applicable Not applicable
VII. Insolvency and Reorganization
□Applicable Not applicable
No such cases in the Reporting Period.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
VIII. Lawsuits
Significant lawsuits and arbitrations
□Applicable Not applicable
No such cases in the Reporting Period.
IX. Punishments and Rectifications
□Applicable Not applicable
No significant punishments or rectifications in the Reporting Period.
X. Credit Quality of the Company as well as its Controlling Shareholder and Actual
Controller
□Applicable Not applicable
XI. Major Related-Party Transactions
Applicable □Not applicable
For the Company's recurring related-party transactions during the Reporting Period, please refer to the related announcements
disclosed on www.cninfo.com.cn.
□Applicable Not applicable
During the Reporting Period, there were no major related-party transactions regarding purchase or disposal of assets or equity
interests.
□Applicable Not applicable
There were no related-party transactions regarding joint investments in third parties during the Reporting Period.
Applicable □Not applicable
Indicate whether there were any amounts due to and from related parties for non-operating purposes
□Yes No
During the Reporting Period, the Company had no amounts due to and from related parties for non-operating purposes.
□Applicable Not applicable
The Company had no deposits, loans, credit granting or other financial business with the related finance companies and related
parties.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Applicable □Not applicable
Deposits
Amount incurred in the
current period
Beginning Total
Relationship Daily deposit Total deposit
Related Range of balance withdrawal Ending balance
with the ceiling amount in
parties interest (RMB’0,00 amount in (RMB’0,000)
Company (RMB’0,000) current
period
period
(RMB’0,000)
(RMB’0,000)
Subsidiary of
TCL
Related
Industries 250,000.00 0.61%-1.04% 480.55 766,542.63 686,293.56 80,729.62
corporation
Holdings
Co., Ltd.
Loans
Amount incurred in the
current period
Relationship Beginning Total
Related Loan limit Range of Total loan Ending balance
with the balance repayment
parties (RMB'0,000) interest amount in (RMB’0,000)
Company (RMB’0,000) amount in
current
current
period
period
(RMB’0,000)
(RMB’0,000)
Subsidiary of
TCL
Related
Industries 250,000.00 - - - - -
corporation
Holdings
Co., Ltd.
Credit or other financial business
Relationship with the Total amount Ending balance
Related parties Business type
Company (RMB'0,000) (RMB’0,000)
Subsidiary of TCL The balance of
Credit granting (notes
Industries Holdings Related corporation comprehensive credit on 67,486.47
discount)
Co., Ltd. any day shall not exceed
Subsidiary of TCL RMB 2.5 billion
Industries Holdings Credit granting (notes (including loans, notes
Related corporation 56,279.19
Co., Ltd. acceptance) discounting, and notes
acceptance)
Applicable □Not applicable
Related inquiries on the website for temporary disclosure of major related-party transactions
Date of
Title of announcement announcement Website for disclosure
disclosure
Announcement on the Anticipated Recurring Related-Party Transactions
April 29, 2025 http://www.cninfo.com.cn
for 2025
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Announcement on the Related-Party Transactions with Shenzhen Jucai
Supply Chain Technology Co., Ltd. in 2025
Report on the Execution of Recurring Related-Party Transactions in
Special note on financial businesses, including deposits and loans,
relating to related-party transactions of finance companies
Announcement on Continuing to Provide Financial Services by TCL
Technology Group Finance Co., Ltd. to Related Parties and Renewing
the Financial Services Agreement for Related-Party Transactions
Announcement on the Launch of Accounts Receivable Factoring and the
Related-Party Transaction
XII. Major Contracts and Execution thereof
(1) Entrustment
□Applicable Not applicable
During the reporting period, the Company had no entrustment projects that brought profit or loss of more than 10% of the Company's
total profit in the reporting period.
(2) Contracting
□Applicable Not applicable
During the reporting period, the Company had no contracting projects that brought profit or loss of more than 10% of the Company's
total profit in the reporting period.
(3) Leases
□Applicable Not applicable
During the reporting period, the Company had no lease projects that brought profit or loss of more than 10% of the Company's total
profit in the reporting period.
Applicable □Not applicable
Unit: RMB'0,000
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Disclosure date
of Actual Counter- Guarantee for
Guarantee Actual occurrence Type of Collateral (if Term of Fulfilled or
Obligor announcement guarantee guarantee (if related parties
limit date guarantee any) guarantee not
on guarantee amount any) or not
limit
Shenzhen Qianhai
Joint
Sailing International With counter-
May 20, 2025 76,000 January 8, 2025 48,585 liability / 8-250 days No No
Supply Chain guarantee
guarantee
Management Co., Ltd.
Guangzhou Qihang Joint
With counter-
International Supply May 20, 2025 10,000 - 0 liability / - - No
guarantee
Chain Co., Ltd. guarantee
Aijiexu New Electronic Joint Guarantee in
Display Glass May 20, 2025 35,000 April 28, 2020 15,934 liability / proportion to 3.3-5 years No No
(Shenzhen) Co., Ltd. guarantee shareholding
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
percentage
Guarantee in
Inner Mongolia Xinhua Joint
proportion to
Bandaoti Technology May 20, 2025 58,000 May 22, 2023 38,000 liability / 4.9 years No No
shareholding
Co., Ltd. guarantee
percentage
Guarantee in
Inner Mongolia Joint
proportion to
Xinhuan Silicon Energy May 20, 2025 180,000 June 15, 2023 153,074 liability / 4 years No No
shareholding
Technology Co., Ltd. guarantee
percentage
Total actual amount of
Total approved limit for such guarantees
in Reporting Period (A1)
Reporting Period (A2)
Total actual balance of
Total approved limit for such guarantees
at the end of the Reporting Period (A3)
of Reporting Period (A4)
Guarantees provided by the Company as the parent for its subsidiaries
Disclosure date
of Actual Counter- Guarantee for
Guarantee Actual occurrence Type of Collateral (if Term of Fulfilled or
Obligor announcement guarantee guarantee (if related parties
limit date guarantee any) guarantee not
on guarantee amount any) or not
limit
TCL MOKA Joint
INTERNATIONAL May 20, 2025 100,000 May 31, 2023 10,016 liability / / 320-336 days No No
LIMITED guarantee
Joint
Guangzhou Zhihui
May 20, 2025 30,000 November 29, 2024 14,965 liability / / 6.4 years No No
Shengke Co., Ltd.
guarantee
TTE ELECTRONICS Joint
INDIA PRIVATE May 20, 2025 10,000 - 0 liability / / - - No
LIMITED guarantee
Huizhou Moka Joint
Technology May 20, 2025 20,000 - 0 liability / / - - No
Development Co., Ltd. guarantee
Joint
Moka Technology 22 days-3.7
May 20, 2025 400,000 November 24, 2023 127,211 liability / / No No
(Guangdong) Co., Ltd. years
guarantee
Shenzhen Zhixian Shijie Joint
Software Technology May 20, 2025 1,000 - 0 liability / / - - No
Co., Ltd. guarantee
Shenzhen Zhilian Joint
Shuchuang Technology May 20, 2025 1,000 - 0 liability / / - - No
Co., Ltd. guarantee
MOKA
Joint
TECHNOLOGY
May 20, 2025 20,000 - 0 liability / / - - No
VIETNAM
guarantee
COMPANY LIMITED
Joint
TCL Technology 14 days-340
May 20, 2025 500,000 July 14, 2020 357,930 liability / / No No
Investments Limited days
guarantee
TCL China Star Joint
Optoelectronics May 20, 2025 2,000,000 December 22, 2022 392,350 liability / / No No
years
Technology Co., Ltd. guarantee
Guangdong Juhua Joint
Printed Display May 20, 2025 5,000 - 0 liability / / - - No
Technology Co., Ltd. guarantee
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Guangzhou China Star
Joint
Optoelectronics 21 days-4.7
May 20, 2025 1,750,000 May 19, 2022 855,049 liability / / No No
Bandaoti Display years
guarantee
Technology Co., Ltd.
China Star
Joint
Optoelectronics
May 20, 2025 10,000 - 0 liability / / - - No
International (HK)
guarantee
Limited
Huizhou China Star Joint
Optoelectronics Display May 20, 2025 610,000 March 23, 2021 456,578 liability / / No No
years
Co., Ltd. guarantee
Shenzhen China Star
Joint
Optoelectronics 301 days-4
May 20, 2025 710,000 April 28, 2018 485,671 liability / / No No
Bandaoti Display years
guarantee
Technology Co., Ltd.
Suzhou China Star Joint
Optoelectronics May 20, 2025 20,000 - 0 liability / / - - No
Technology Co., Ltd. guarantee
Suzhou China Star Joint
Optoelectronics Display May 20, 2025 60,000 August 30, 2022 50,695 liability / / 6.9 days No No
Co., Ltd. guarantee
China Display
Joint
Optoelectronics 4 days-189
May 20, 2025 100,000 December 24, 2024 14,824 liability / / days No No
Technology (Huizhou)
guarantee
Co., Ltd.
Wuhan China Star
Joint
Optoelectronics 21 days-7.3
May 20, 2025 1,760,000 June 29, 2021 1,386,042 liability / / No No
Bandaoti Display years
guarantee
Technology Co., Ltd.
Wuhan China Star Joint
Optoelectronics May 20, 2025 1,300,000 August 25, 2022 940,488 liability / / No No
years
Technology Co., Ltd. guarantee
Joint
Highly (Tianjin) E-
May 20, 2025 10,000 May 23, 2025 5,331 liability / / 4-11 days No No
Commerce Co., Ltd.
guarantee
Joint
Highly (Tianjin)
May 20, 2025 61,000 March 27, 2025 37,176 liability / / 11-134 days No No
Technology Co., Ltd.
guarantee
Joint
Mingsi Technology Co.,
May 20, 2025 20,000 - 0 liability / / - - No
Ltd.
guarantee
Beijing Hecheng Joint
Nuoxin Technology May 20, 2025 12,000 February 27, 2025 12,000 liability / / 1.2 years No No
Co., Ltd. guarantee
Joint
Beijing Lingyun Data
May 20, 2025 71,000 July 19, 2024 19,592 liability / / 9-284 days No No
Technology Co., Ltd.
guarantee
Joint
Beijing Sunpiestore 66 days-1.2
May 20, 2025 136,000 September 10, 2023 108,000 liability / / No No
Technology Co., Ltd. years
guarantee
Joint
Highly Information
May 20, 2025 434,000 June 1, 2024 287,109 liability / / 1 day-2 years No No
Industry Co., Ltd.
guarantee
Joint
Qingdao Blue Business
May 20, 2025 1,000 - 0 liability / / - - No
Consulting Co., Ltd.
guarantee
Shaanxi TiTi Electronic May 20, 2025 1,000 - 0 Joint / / - - No
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Technology Co., Ltd. liability
guarantee
Joint
Tianjin TiTi Yunchuang
May 20, 2025 10,000 February 27, 2025 10,000 liability / / 1.2 years No No
Technology Co., Ltd.
guarantee
Tianjin Wanfang Joint
Nuoxin Technology May 20, 2025 10,000 February 27, 2025 10,000 liability / / 1.2 years No No
Co., Ltd. guarantee
Joint
Tianjin Xincheng Pilot
May 20, 2025 1,000 - 0 liability / / - - No
Technology Co., Ltd.
guarantee
Joint
Beijing Youyi Online
May 20, 2025 10,000 May 23, 2025 6,491 liability / / 1-25 days No No
Technology Co., Ltd.
guarantee
Joint
Tianjin Printronics
May 20, 2025 53,000 November 17, 2022 8,625 liability / / 5.2 years No No
Circuit Corporation
guarantee
Joint
TCL Technology Group
May 20, 2025 50,000 August 31, 2022 40,000 liability / / 2.2 years No No
(Tianjin) Co., Ltd.
guarantee
Joint
TCL Technology Group
May 20, 2025 150,000 - 0 liability / / - - No
Finance Co., Ltd.
guarantee
Joint
TCL Culture Media
May 20, 2025 2,000 - 0 liability / / - - No
(Shenzhen) Co., Ltd.
guarantee
Total actual amount of
Total guarantee limit for subsidiaries such guarantees for
approved in the Reporting Period (B1) subsidiaries in Reporting
Period (B2)
Total balance of actual
Total guarantees limit for subsidiaries
guarantees for
approved at the end of the Reporting 10,439,000 5,636,143
subsidiaries at the end of
Period (B3)
the Reporting Period (B4)
Guarantees provided between subsidiaries
Disclosure date
of Actual Counter- Guarantee for
Guarantee Actual occurrence Type of Collateral (if Term of Fulfilled or
Obligor announcement guarantee guarantee (if related parties
limit date guarantee any) guarantee not
on guarantee amount any) or not
limit
Techigh Circuit Joint
Technology (Huizhou) May 20, 2025 5,100 July 25, 2024 350 liability / / 24-56 days No No
Co., Ltd. guarantee
Techigh Circuit Joint
Technology (Zhuhai) May 20, 2025 50,000 April 23, 2024 19,769 liability / / 8.7 years No No
Co., Ltd. guarantee
Shenzhen China Star
Joint
Optoelectronics
May 20, 2025 1,310,000 April 28, 2018 1,214,179 liability / / 0.8-3 years No No
Bandaoti Display
guarantee
Technology Co., Ltd.
Huizhou China Star Joint
Optoelectronics Display May 20, 2025 460,000 January 16, 2025 82,500 liability / / 2.5-2.7 years No No
Co., Ltd. guarantee
Joint
TCL Moka International
May 20, 2025 80,000 January 23, 2025 1,133 liability / / 26-87 days No No
Limited
guarantee
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Zhonghuan Energy Joint
(Inner Mongolia) Co., June 24, 2017 8,440 July 21, 2017 8,440 liability / / 7.1 years No No
Ltd. guarantee
Inner Mongolia Joint
Zhonghuan Crystal March 22, 2021 279,977 April 30, 2021 279,977 liability / / 2.8 years No No
Materials Co., Ltd. guarantee
Joint
Ningxia Zhonghuan January 23,
Solar Material Co., Ltd. 2022
guarantee
Inner Mongolia Joint
Zhonghuan Crystal May 26, 2022 63,735 June 28, 2022 63,735 liability / / 4 years No No
Materials Co., Ltd. guarantee
Tianjin Huanou New Joint
Energy Technology Co., May 26, 2022 69,749 September 28, 2022 69,749 liability / / 4.2 years No No
Ltd guarantee
Wuxi Zhonghuan Joint
Applied Materials Co., May 26, 2022 85,129 June 30, 2022 85,129 liability / / 4 years No No
Ltd. guarantee
Joint
Huansheng New Energy
May 26, 2022 28,965 September 30, 2022 28,965 liability / / 2.2 years No No
(Jiangsu) Co., Ltd.
guarantee
Joint
Huansheng New Energy
May 26, 2022 56,575 March 29, 2023 56,575 liability / / 4.7 years No No
(Jiangsu) Co., Ltd.
guarantee
Joint
Huansheng New Energy
April 8, 2023 104,600 February 28, 2024 69,000 liability / / 5.7 years No No
(Tianjin) Co., Ltd.
guarantee
Huansheng New Energy Joint
(Inner Mongolia) Co., April 26, 2025 140,000 June 30, 2025 40,700 liability / / 8 years No No
Ltd. guarantee
Total actual amount of
Total guarantee limit for subsidiaries such guarantees for
approved in the Reporting Period (C1) subsidiaries in the
Reporting Period (C2)
Total balance of actual
Total guarantee limit for subsidiaries
guarantees for
approved at the end of the Reporting 5,708,900 2,546,700
subsidiaries at the end of
Period (C3)
the Reporting Period (C4)
Total guarantee amount (total of the three kinds of guarantees above)
Total actual guarantee
Total guarantee limit approved in the
Reporting Period (A1+B1+C1)
Period (A2+B2+C2)
Total actual guarantee
Total approved guarantee limit at the end balance at the end of the
of the Reporting Period (A3+B3+C3) Reporting Period
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets 157.45%
Of which:
Balance of guarantees provided for shareholders, the actual controller, and
their related parties (D)
Balance of debt guarantees provided directly or indirectly for obligors with an
over 70% debt/asset ratio (E)
Amount by which the total guarantee amount exceeds 50% of the Company’s 5,758,681
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
net assets (F)
Total of the three above amounts (D+E+F) 5,758,681
Joint liability already borne or possibly borne with evidence in the Reporting
Period for outstanding guarantees (if any)
Guarantees provided in breach of prescribed procedures (if any) -
Note: (1) The guarantee period in the above table is the remaining guarantee period of the principal debt. The actual guarantee is valid for two or three years
from the expiration date of the principal debt, which is subject to the single contract.
(2) In the table above, Shenzhen China Star Optoelectronics Bandaoti Display Technology Co., Ltd., a subsidiary controlled by the Company, was jointly
guaranteed by the Company and its subsidiary, TCL China Star Optoelectronics Technology Co., Ltd., in an external syndicated loan, in which the Company
provided a certain percentage of guarantee, while TCL China Star Optoelectronics Technology Co., Ltd. provided full guarantee. As at the end of the Reporting
Period, the debt portion under joint guarantee amounted to RMB 12,141.79 million. The joint guarantee has been filled in the "Company’s Guarantee for
Subsidiaries" and "Guarantee Among Subsidiaries", respectively.
Applicable □Not applicable
Unit: RMB'0,000
Impairment
allowance for
unrecovered
Unrecovered
Type Funding source Amount Undue amount overdue amount of
overdue amount
wealth
management
products
Bank’s wealth
management Self-funded 1,152,862.21 535,057.21 0 0
product
Securities firm's
wealth
Self-funded 526,354.14 526,354.14 0 0
management
product
Trust plan Self-funded 629,750.00 629,750.00 0 0
Other Self-funded 626,659.21 261,943.69 0 0
Total 2,935,625.56 1,953,105.04 0 0
The specific situation of high-risk entrusted wealth management with a large single amount or low security and poor liquidity
□Applicable Not applicable
Situation in which the Company fails to recover its principal for entrusted wealth management products, or other situations that may
result in impairment
□Applicable Not applicable
□Applicable Not applicable
The Company did not have any other major contracts that should be disclosed during the reporting period.
XIII. Other Significant Events
□Applicable Not applicable
There are no other significant events that need to be explained for the Reporting Period.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
XIV. Significant Events of the Company’s Subsidiaries
□Applicable Not applicable
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Part VI Changes in Shares and Information about Shareholders
I. Changes in Shares
Unit: share
Before change Increase/decrease in the Reporting Period (+/-) After change
Shares
converted
New Bonus
Shares Percentage from Others Subtotal Shares Percentage
issues shares
capital
reserve
I. Restricted
Shares
state-owned legal 0 0.00% 0 0 0 0 0 0 0.00%
entities
other domestic 679,459,071 3.62% 0 0 0 2,875,800 2,875,800 682,334,871 3.63%
investors
Among which:
shares held by
domestic legal
entities
Shares held by
domestic 679,459,071 3.62% 0 0 0 2,875,800 2,875,800 682,334,871 3.63%
individuals
foreign investors
Among which:
shares held by
foreign legal
entities
Shares held by
foreign 0 0.00% 0 0 0 0 0 0 0.00%
individuals
II. Non-restricted
shares
denominated 18,099,621,696 96.38% 0 0 0 -2,875,800 -2,875,800 18,096,745,896 96.37%
ordinary shares
III. Total shares 18,779,080,767 100.00% 0 0 0 0 0 18,779,080,767 100.00%
Reasons for changes in shares
Applicable □Not applicable
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Holders under the Employee Stock Ownership Plan. The Company has completed the second non-trading transfer under the 2021-
Plan (Phase III). Among them, 3,834,401 shares were transferred to the current directors, supervisors, and senior managers of the
Company through non-trading transfer.
decreased by the same amount.
Approval of changes in shares
□Applicable Not applicable
Transfer of share ownership
Applicable □Not applicable
under the Employee Stock Ownership Plan. The Company has completed the second non-trading transfer under the 2021-2023
Employee Stock Ownership Plan (Phase II) and the first non-trading transfer under the 2021-2023 Employee Stock Ownership Plan
(Phase III). Among them, 3,834,401 shares were transferred to the current directors, supervisors, and senior managers of the
Company through non-trading transfer, and 29,430,560 shares were transferred to other holders through non-trading transfer.
Progress on any share repurchase
Applicable □Not applicable
For more details, please refer to the relevant announcements released on May 7, 2025, and June 4, 2025, on designated information
disclosure media.
and the Results of the Repurchase (Announcement No.: 2025-069). From July 18, 2025, to July 25, 2025, the Company repurchased
a total of 174,747,985 shares of the Company through centralized bidding from the special securities account for repurchase,
accounting for 0.88% of the total share capital of the Company. The highest and lowest trading prices were RMB 4.67 per share and
RMB 4.49 per share, respectively, and the total payment approximated to RMB 800 million (excluding transaction fees).
Progress on reducing the repurchased shares by means of centralized bidding
□Applicable Not applicable
Effects of changes in shares on the basic earnings per share, diluted earnings per share, net asset per share attributable to the
Company's ordinary shareholders and other financial indicators of the prior year and the prior accounting period, respectively
Applicable □Not applicable
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Item January - December 2024 January - June 2025
Basic earnings per share (RMB/share) 0.0842 0.1014
Diluted earnings per share (RMB/share) 0.0833 0.1003
Item December 31, 2024 June 30, 2025
Net assets per share attributable to ordinary
shareholders of the Company (RMB)
Other information that the Company considers necessary or is required by the securities regulatory authorities to be disclosed
□Applicable Not applicable
Applicable □Not applicable
Unit: share
Number of Number of
Number of Number of Date of
Name of released increased Reason for
restricted shares restricted shares restriction
shareholder restricted shares restricted shares restriction
at period-begin at period-end release
of the period of the period
Part of the
shareholding of
Directors,
directors,
supervisors, and
supervisors, and
senior 679,459,071 - 2,875,800 682,334,871 Not applicable
senior
management of
management is
the Company
locked as
stipulated
Total 679,459,071 - 2,875,800 682,334,871 -- --
II. Issuance and Listing of Securities
□Applicable Not applicable
III. Total Number of Shareholders and Their Shareholdings
Unit: share
Total number of ordinary Total number of preferred shareholders with
shareholders by the end of the 686,366 resumed voting rights by the end of the reporting 0
Reporting Period period
Shareholdings of ordinary shareholders with more than 5% or the top 10 shareholders of ordinary shares (excluding the lending of shares under
refinancing)
Number of Shares in pledge, marked or
Number of Number of non-
shares held at Increase/decrease frozen
Name of Nature of Shareholding restricted restricted
the end of the during the
shareholder shareholder percentage ordinary ordinary shares
Reporting Reporting Period Status Number
shares held held
Period
Domestic Not
Li Dongsheng 0
individual/ applicable
Ningbo Jiutian Domestic 6.75% 1,266,680,807 1,333,002 674,839,554 591,841,253
Liancheng general legal In pledge 169,320,637
Equity entity
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Investment
Partnership
(Limited
Partnership)
Hong Kong
Securities Foreign legal Not
Clearing entity applicable
Company Ltd.
Huizhou
Investment Public legal Not
Holding Co., entity applicable
Ltd.
China Securities
Domestic
Finance Not
general legal 2.19% 410,554,710 0 0 410,554,710 0
Corporation applicable
entity
Limited
Industrial and
Commercial
Fund, wealth
Bank of China - Not
management 1.78% 334,564,770 10,370,400 0 334,564,770 0
Huatai- applicable
product, etc.
Pinebridge CSI
Wuhan Optics
Valley
Public legal
Industrial 1.33% 249,848,896 60 0 249,848,896 In pledge 124,000,000
entity
Investment Co.,
Ltd.
China
Construction Fund, wealth
Not
Bank - Efund - management 1.27% 238,502,265 14,868,000 0 238,502,265 0
applicable
CSI 300 ETF product, etc.
Initiated
Bank of China
Limited -
Fund, wealth
Huatai- Not
management 1.16% 218,720,170 43,122,200 0 218,720,170 0
Pinebridge CSI applicable
product, etc.
Photovoltaic
Industry ETF
Perseverance
Asset
Management
Partnership Fund, wealth
Not
(Limited management 1.10% 206,800,000 7,000,020 0 206,800,000 0
applicable
Partnership) - product, etc.
Gaoyi Xiaofeng
No. 2 Zhixin
Fund
Strategic investor or general
legal entity becoming top-10
shareholders due to private Not applicable
placement of new shares (if
any) (see Note 3)
Among the top 10 shareholders, Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity Investment Partnership
Note on the above (Limited Partnership) became persons acting in concert by signing the Agreement on Concerted Action. Mr. Li
shareholders’ associations or Dongsheng holds 899,786,071 shares and Ningbo Jiutian Liancheng Equity Investment Partnership (Limited
concerted actions Partnership) holds 366,894,736 shares, representing 1,266,680,807 shares in total and becoming the largest
shareholder of the Company.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Explain if any of the
shareholders above was
involved in entrusting/being Not applicable
entrusted with voting rights or
waiving voting rights
Explanation of repurchase
accounts among the top 10
Not applicable
shareholders (if any) (see Note
Shareholdings of top 10 non-restricted ordinary shareholders (excluding the lending of shares under refinancing and restricted shares held by senior
management)
Type of shares
Name of shareholder Number of non-restricted shares held at the end of the reporting period
Type of shares Quantity
Hong Kong Securities Clearing RMB-denominated
Company Ltd. ordinary shares
Li Dongsheng
Ningbo Jiutian Liancheng RMB-denominated
Equity Investment Partnership ordinary shares
(Limited Partnership)
Huizhou Investment Holding RMB-denominated
Co., Ltd. ordinary shares
China Securities Finance RMB-denominated
Corporation Limited ordinary shares
Industrial and Commercial
RMB-denominated
Bank of China - Huatai- 334,564,770 334,564,770
ordinary shares
Pinebridge CSI 300 ETF
Wuhan Optics Valley RMB-denominated
Industrial Investment Co., Ltd. ordinary shares
China Construction Bank - RMB-denominated
Efund - CSI 300 ETF Initiated ordinary shares
Bank of China Limited -
RMB-denominated
Huatai-Pinebridge CSI 218,720,170 218,720,170
ordinary shares
Photovoltaic Industry ETF
Perseverance Asset
Management Partnership RMB-denominated
(Limited Partnership) - Gaoyi ordinary shares
Xiaofeng No. 2 Zhixin Fund
Related or acting-in-concert
Among the top 10 shareholders with non-restricted shares, Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity
parties among top 10 non-
Investment Partnership (Limited Partnership) became persons acting in concert by signing the Agreement on
restricted shareholders, as well
Concerted Action. Mr. Li Dongsheng holds 224,946,517 non-restricted shares and Ningbo Jiutian Liancheng Equity
as between top 10 non-
Investment Partnership (Limited Partnership) holds 366,894,736 non-restricted shares, representing 591,841,253 non-
restricted shareholders and top
restricted shares in total.
Explanation for the top 10
ordinary shareholders
At the end of the Reporting Period, Wuhan Optics Valley Industrial Investment Co., Ltd., among the shareholders
participating in securities
above, held certain shares of the Company through a credit security account.
margin trading (if any) (see
Note 4)
Participation of shareholders holding more than 5%, the top 10 shareholders, and the top 10 non-restricted shareholders in the lending
of shares under the refinancing business
□Applicable Not applicable
Change in the top 10 shareholders and the top 10 non-restricted shareholders due to securities lending/returning under refinancing as
compared to the previous period
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
□Applicable Not applicable
Indicate whether any of the top 10 ordinary shareholders or the top 10 non-restricted ordinary shareholders of the Company
conducted any promissory repurchase transactions during the Reporting Period
□Yes No
No such cases in the Reporting Period.
IV. Change in Shareholdings of Directors, Supervisors, and Senior Management
Applicable □Not applicable
Number of
Number of
restricted Number of
restricted
Number of Decrease shares restricted
Number of shares
shares held at Increase of of shares granted at shares
shares held at granted at
Position the beginning shares during during the the granted
Name Position the end of the the end of
Status of the the reporting reporting beginning during the
Reporting the
Reporting period (share) period of the reporting
Period (share) reporting
Period (share) (share) reporting period
period
period (share)
(share)
(share)
Li Chairman,
Incumbent 898,453,069 1,333,002 - 899,786,071 - - -
Dongsheng CEO
Zhang Vice Chairman
Incumbent - - - - - - -
Zuoteng of the Board
Director,
Board
Liao Qian Secretary and Incumbent 1,726,619 714,210 - 2,440,829 - - -
Senior Vice
President
Director,
Zhao Jun Senior Vice Incumbent 1,271,538 264,403 - 1,535,941 - - -
President
Director,
Yan Xiaolin Senior Vice Incumbent 2,810,558 409,482 - 3,220,040 - - -
President, CTO
Non-Executive
Lin Feng Incumbent - - - - - - -
Director
Independent
Jin Li Incumbent - - - - - - -
director
Wan Independent
Incumbent - - - - - - -
Liangyong director
Wang Independent
Incumbent - - - - - - -
Lixiang director
Chairman of
the
Supervisory
Wu Zhiming Committee, Incumbent - - - - - - -
Shareholder
Representative
Supervisor
Zhuang Shareholder
Incumbent - - - - - - -
Weidong Representative
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Supervisor
Employee
Zhu Wei Representative Incumbent 107,704 82,909 - 190,613 - - -
Supervisor
Li Jian CFO Incumbent 1,575,942 1,030,395 - 2,606,337 - - -
Wang Senior Vice
Incumbent - - - - - - -
Yanjun President
Total -- -- 905,945,430 3,834,401 - 909,779,831 - - -
Note: 1. The increase in the number of shares held by the Company's directors, supervisors, and senior management during the
Reporting Period was due to the non-trading transfer of shares corresponding to holders' shares under the 2021-2023 Employee
Stock Ownership Plan (Phase II) and the 2021-2023 Employee Stock Ownership Plan (Phase III) to employees’ securities accounts.
For details, please refer to the Voluntary Announcement on the Non-Trading Transfer of Certain Shares of the Holders under the
Employee Stock Ownership Plan published by the Company on the designated media on June 19, 2025.
Supervisory Committee. They reviewed and approved the Proposal on Canceling the Supervisory Committee and Amending the
Articles of Association and its Attachments, according to which the Company plans to cancel the Supervisory Committee and
supervisors and revise the Articles of Association and its attachments accordingly. The proposal is still subject to approval by the
Company’s general meeting.
V. Change of the Controlling Shareholder or the Actual Controller
Explanation on the absence of a controlling shareholder or actual controller:
Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity Investment Partnership (Limited Partnership) became persons acting
in concert by signing the Agreement on Concerted Action, holding 1,266,680,807 shares in total and becoming the largest
shareholder of the Company.
According to the Company Law, a controlling shareholder refers to a shareholder who owns over 50% of a limited liability
company’s total capital or over 50% of a joint stock company’s total share capital; or, despite the ownership of less than 50% of a
limited liability company’s total capital or less than 50% of a joint stock company’s total number of shares, who can still prevail in
the resolution of a meeting of shareholders according to the voting rights corresponding to their interest in the limited liability
company’s total capital or the joint stock company’s total number of shares. According to the definition above, the Company has no
controlling shareholder.
The "actual controller" refers to an entity that, while not a shareholder of a company, effectively controls its actions or
operations through investment relationships, contractual agreements, or other arrangements. According to the definition above, the
Company has no actual controller.
Change of the controlling shareholder in the Reporting Period
□Applicable Not applicable
Change of the actual controller in the Reporting Period
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
□Applicable Not applicable
VI Preferred Shares
□Applicable Not applicable
During the reporting period, the Company did not have preferred shares.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Part VII Bonds
Applicable □Not applicable
I. Enterprise Bonds
□Applicable Not applicable
No enterprise bonds in the Reporting Period.
II. Corporate Bonds
Applicable □Not applicable
Unit: RMB'0,000
Way of
principal
Date of Outstanding Coupon Place of
Bond name Abbr. Bond code Value date Maturity repayment
issuance balance rate trading
and interest
payment
Interest
Sci-Tech Innovation
payable
Corporate Bonds (Digital
annually
Economy) Publicly Offered Shenzhen
July 4, July 8, July 8, and
by TCL Technology Group 24TCLK4 148804.SZ 100,000.00 2.46% Stock
Corporation to Professional Exchange
repayable
Investors in 2024 (Phase 3)
in full upon
(Type 2)
maturity
Interest
Sci-Tech Innovation
payable
Corporate Bonds (Digital
annually
Economy) Publicly Offered July 8, Shenzhen
July 4, July 8, and
by TCL Technology Group 24TCLK3 148803.SZ 2029 (Note 100,000.00 2.29% Stock
Corporation to Professional 1) Exchange
repayable
Investors in 2024 (Phase 3)
in full upon
(Type 1)
maturity
Interest
Sci-Tech Innovation payable
Corporate Bonds (Digital annually
April 11, Shenzhen
Economy) Publicly Offered April 9, April 11, and
by TCL Technology Group 2024 2024 principal
Corporation to Professional repayable
Investors in 2024 (Phase 2) in full upon
maturity
Sci-Tech Innovation February 1, Interest Shenzhen
January 30, February 1,
Corporate Bonds (Digital 24TCLK1 148600.SZ 2026 (Note 150,000.00 2.10% payable Stock
Economy) Publicly Offered 3) annually Exchange
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
by TCL Technology Group and
Corporation to Professional principal
Investors in 2024 (Phase 1) repayable
in full upon
maturity
Investor eligibility (if any) For qualified investors / for professional investors; not applicable for foreign bonds
Match to trade, click to trade, inquire to trade, bid to trade, negotiate to trade; not applicable
Applicable trading mechanism
for foreign bonds
Risk of termination of listing and trading (if any) and
No
countermeasures
Note 1: The Sci-Tech Innovation Corporate Bonds (Digital Economy) Publicly Offered by TCL Technology Group Corporation to
Professional Investors in 2024 (Phase 3) (Type 1) have a term of 5 years and will expire on July 8, 2029. The bonds include the
issuer's redemption option, the option to adjust the coupon rate, and the investor's put option at the end of the third year. If the issuer's
call option or investors' put option is exercised, the maturity date of the exercised bonds will be July 8, 2027.
Note 2: The Sci-Tech Innovation Corporate Bonds (Digital Economy) Publicly Offered by TCL Technology Group Corporation to
Professional Investors in 2024 (Phase 2) have a term of 5 years and will expire on April 11, 2029. The bonds include the issuer's
redemption option, the option to adjust the coupon rate, and the investor's put option at the end of the third year. If the issuer's call
option or investors' put option is exercised, the maturity date of the exercised bonds will be April 11, 2027.
Note 3: The Sci-Tech Innovation Corporate Bonds (Digital Economy) Publicly Offered by TCL Technology Group Corporation to
Professional Investors in 2024 (Phase 1) disbursed the repurchase funds on February 5, 2025 based on the exercise results of
investors' put options, and resold the repurchased bonds from February 6, 2025 to March 5, 2025. After the resale has been
completed, the outstanding balance is RMB 1.5 billion, and the maturity date will be February 1, 2026.
Overdue bonds
□Applicable Not applicable
Applicable □Not applicable
During the Reporting Period, 24TCLK1 triggered its coupon rate adjustment option and its put option.
According to the Prospectus for the Sci-Tech Innovation Corporate Bonds (Digital Economy) Publicly Offered by TCL Technology
Group Corporation to Professional Investors in 2024 (Phase 1), the bondholders of 24TCLK1 were entitled to exercise a put option
during the redemption window (December 19-23, 2024), allowing them to sell all or a portion of their bonds back to the issuer at
RMB 100 per note (excluding accrued interest). Concurrently, the coupon rate was reset downward from 2.64% to 2.10% for the
subsequent one-year period, with settlement of the repurchased bonds scheduled for February 5, 2025. According to data from the
Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, 2,400,000 units of the 24TCLK1 bonds were
repurchased during the redemption window, totaling RMB 240,000,000.00 in principal amount (exclusive of accrued interest).
According to the Announcement on the Resale Results of Bonds for 24TCLK1 Bonds issued by TCL Technology Group Corporation,
the Company conducted the resale of the repurchased bonds from February 6 to March 5, 2025, with the number of resold bonds not
exceeding 2,400,000 units. A total of 2,400,000 units of the bonds were successfully resold in this round. Upon completion of the
resale process, no residual bonds remain pending resale, and the remaining custody volume of 24TCLK1 is 15,000,000 units.
□Applicable Not applicable
regarding debt repayment during the Reporting Period, and their impact on the equity of bond investors
□Applicable Not applicable
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
III. Debt Financing Instruments of Non-Financial Enterprises
Applicable □Not applicable
Unit: RMB'0,000
Way of
principal
Date of Value Outstanding Coupon Place of
Bond name Abbr. Bond code Maturity repayment
issuance date balance rate trading
and interest
payment
Interest
Bonds of TCL Technology MTN002 May 12, May 14, May 14, and Inter-bank
Group Corporation (Phase (Sci-Tech 2025 2025 2030 principal market
Bonds) in full upon
maturity
Interest
payable
annually
TCL Technology Group MTN001B
January 8, January January and Inter-bank
Corporation (Phase 1) (Sci- (Sci- 102580146.IB 100,000.00 2.60%
Tech Innovation Notes) Tech Innov
repayable
(Type 2) ation Notes
in full upon
)
maturity
Interest
payable
annually
TCL Technology Group MTN001A
January 8, January January and Inter-bank
Corporation (Phase 1) (Sci- (Sci- 102580145.IB 100,000.00 2.00%
Tech Innovation Notes) Tech Innov
repayable
(Type 1) ation Notes
in full upon
)
maturity
Interest
payable
Group
MTN001
TCL Technology Group February February February and Inter-bank
(Sci- 102380151.IB 150,000.00 4.10%
Corporation (Phase 1) (Sci- 3, 2023 7, 2023 7, 2026 principal market
Tech Innov
Tech Innovation Notes) repayable
ation Notes
in full upon
)
maturity
Group payable
MTN003 annually
TCL Technology Group July 4, July 6, July 6, Inter-bank
(Sci- 102281474.IB 200,000.00 3.45% and
Corporation (Phase 3) (Sci- 2022 2022 2025 market
Tech Innov principal
Tech Innovation Notes)
ation Notes repayable
) in full upon
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
maturity
Mid-term notes are issued to institutional investors in the national interbank bond market
Investor eligibility (if any)
(excluding those prohibited from purchasing by national laws and regulations)
Applicable trading mechanism Transaction inquiry, request for quotation, and click to trade
Risk of termination of listing and trading (if any) and
No
countermeasures
Overdue bonds
□Applicable Not applicable
□Applicable Not applicable
□Applicable Not applicable
regarding debt repayment during the Reporting Period, and their impact on the equity of bond investors
□Applicable Not applicable
IV. Convertible Corporate Bonds
□Applicable Not applicable
During the reporting period, the Company did not have convertible corporate bonds.
V. Consolidated loss of the Reporting Period Exceeding 10% of Net Assets of the last year-end
□Applicable Not applicable
VI. Key Accounting Data and Financial Indicators of the Company for the Past Two Years as
at the End of the Reporting Period
Item End of the Reporting Period December 31, 2024 Change
Current ratio 0.93 0.86 8.14%
Debt/asset ratio 67.70% 64.92% 2.78%
Quick ratio 0.66 0.61 8.20%
H1 2025 H1 2024 Change
Net profits attributable to the
company's shareholders after
non-recurring gains and
losses (RMB'0,000)
Debt-to-EBITDA ratio 7.04% 6.97% 0.07%
Interest coverage ratio 1.14 0.73 56.16%
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Cash coverage ratio 11.48 5.79 98.27%
EBITDA coverage ratio 7.25 6.43 12.75%
Debt repayment ratio 100% 100% 0.00
Interest payment ratio 100% 100% 0.00
Note: The significant YoY increase in the net profits attributable to the Company’s shareholders after non-recurring gains and losses,
interest coverage ratio and cash coverage ratio was primarily attributable to the improved operational performance of the display
business compared to the prior-year period.
Part VIII Unaudited Financial Report
(For the period from January 1, 2025 to June 30, 2025)
I. Auditor’s Report
Whether the 2025 interim report has been audited or not?
□ Yes √ No
The Company’s 2025 interim financial report has not yet been audited.
II. Financial Statements
The unit of the notes to the financial report is: RMB’000
No. Table of Contents Page
Consolidated Statement of Changes in
Shareholders’ Equity
Statement of Changes in Shareholder Equity
of the Parent Company
TCL Technology Group Corporation
Consolidated Balance Sheet
___________(RMB’000)_____________
Note V June 30, 2025 December 31, 2024
Current assets
Monetary assets 1 28,544,343 23,007,773
Held-for-trading financial assets 2 24,090,904 16,560,971
Derivative financial assets 3 168,726 172,489
Notes receivable 4 174,115 189,853
Accounts receivable 5 19,741,951 22,242,153
Receivables financing 6 3,959,626 831,407
Prepayments 7 2,024,654 2,090,492
Other receivables 8 3,926,955 4,723,140
Inventories 9 20,535,402 17,594,133
Contract assets 10 397,673 395,117
Non-current assets due within one
year
Other current assets 12 8,768,522 6,716,209
Total current assets 114,098,805 95,373,443
Non-current assets
Debt investments 13 176,057 147,272
Long-term receivables 14 416,754 443,741
Long-term equity investments 15 24,120,705 24,595,634
Investments in other equity
instruments
Other non-current financial assets 17 2,573,971 2,225,200
Investment property 18 602,893 612,734
Fixed assets 19 172,569,695 170,512,009
Construction in progress 20 17,808,444 23,580,503
Right-of-use assets 21 6,593,796 6,697,688
Intangible assets 22 18,963,082 18,117,467
Development expenditures 23 1,769,474 1,831,444
Goodwill 24 11,973,732 11,159,705
Long-term deferred expenses 25 2,515,800 2,163,457
Deferred income tax assets 26 2,787,120 2,486,427
Other non-current assets 27 23,084,818 17,917,341
Total non-current assets 286,370,658 282,878,473
Total assets 400,469,463 378,251,916
Person-in-charge
Legal Person-in-charge of the financial Jing
representative: Li Dongsheng of financial affairs: Li Jian department: Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Consolidated Balance Sheet (Continued)
___________(RMB’000)_____________
Liabilities and shareholders' equity Note V June 30, 2025 December 31, 2024
Current liabilities
Short-term borrowings 28 9,228,272 8,193,283
Borrowings from the Central Bank 29 1,002,386 600,926
Customer deposits and deposits from
other banks and financial institutions
Held-for-trading financial liabilities 31 242,097 232,406
Derivative financial liabilities 32 85,376 248,845
Notes payable 33 6,735,401 7,107,842
Accounts payable 34 34,590,168 29,347,615
Advances from customers 35 737 2,689
Contract liabilities 36 2,183,855 1,969,271
Employee compensation payable 37 3,773,305 4,188,237
Taxes and levies payable 38 1,433,018 1,206,098
Other payables 39 19,249,289 20,072,069
Non-current liabilities due within
one year
Other current liabilities 41 1,517,077 1,484,915
Total current liabilities 122,803,983 111,056,333
Non-current liabilities
Long-term borrowings 42 128,471,716 116,815,131
Bonds payable 43 6,482,694 6,488,620
Lease liabilities 44 6,300,595 6,334,786
Long-term payables 45 1,636,141 1,994,812
Long-term employee compensation
payable 37
Deferred income 46 3,067,628 1,014,891
Deferred income tax liabilities 26 2,096,870 1,544,449
Estimated liabilities 47 213,233 249,218
Other non-current liabilities 48 32,333 27,508
Total non-current liabilities 148,323,323 134,491,839
Total liabilities 271,127,306 245,548,172
Share capital 49 18,779,081 18,779,081
Capital reserves 50 9,905,741 10,553,081
Less: Treasury share 51 703,652 919,322
Other comprehensive income 52 (823,811) (740,459)
Surplus reserves 53 3,974,386 3,974,386
Specific reserves 54 5,120 7,189
General risk reserve 55 8,934 8,934
Retained earnings 56 22,449,307 21,504,719
Total equity attributable to shareholders
of the parent company
Non-controlling interests 75,747,051 79,536,135
Total shareholders’ equity 129,342,157 132,703,744
Total liabilities and shareholders' equity 400,469,463 378,251,916
Person-in-charge
Legal Person-in-charge of the financial
representative: Li Dongsheng of financial affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Consolidated Income Statement
___________(RMB’000)_____________
Note V January - June 2025 January - June 2024
I. Total revenue 85,661,626 80,303,409
Including: Operating revenue 57 85,560,004 80,223,737
Interest income 58 101,622 79,672
Less: Operating cost 57 74,082,838 70,642,558
Interest expenditures 58 7,789 14,885
Taxes and levies 59 598,144 500,128
Sales expenses 60 1,163,965 877,397
Administrative expenses 61 2,200,559 2,003,836
R&D expenses 62 4,741,879 4,401,567
Financial expenses 63 2,141,282 2,091,275
Including: Interest expenses 2,555,367 2,472,976
Interest income 353,536 381,577
Add: Other income 64 1,238,502 1,135,393
Return on investment 65 831,296 421,758
Including: Return on investment in
joint ventures and associates
Exchange gain 58 207 (116)
Gain on changes in fair value 66 469,888 132,946
Credit impairment loss 67 (25,391) (7,269)
Asset impairment loss 68 (2,798,944) (2,059,648)
Asset disposal income 69 (3,019) 39,940
II. Operating profit 437,709 (565,233)
Add: Non-operating income 70 29,825 227,436
Less: Non-operating expenses 71 119,957 78,140
III. Gross profit 347,577 (415,937)
Less: Income tax expense 72 315,894 52,212
IV. Net profits 31,683 (468,149)
(I) Classification by business continuity
(II) Classification by ownership
the Company
interests
(1,851,817) (1,463,362)
V. Other comprehensive income, net of tax 52 (133,902) 174,996
(I) Other comprehensive income that cannot
be subsequently reclassified into profit or loss
(3,342) 122,012
(II) Other comprehensive income that may
subsequently be reclassified into profit or loss (130,560) 52,984
upon satisfaction of prescribed conditions
VI. Total comprehensive income (102,219) (293,153)
Total comprehensive income attributable to
the shareholders of the parent company
Total comprehensive income attributable to
non-controlling interests
(1,902,367) (1,466,563)
VII. Earnings per share: 73
(I) Basic earnings per share (RMB yuan) 0.1014 0.0535
(II) Diluted earnings per share (RMB yuan) 0.1003 0.0530
Person-in-charge
Legal Person-in-charge of of the accounting
representative: Li Dongsheng financial affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Consolidated Cash Flow Statement
___________(RMB’000)_____________
Note V January - June 2025 January - June 2024
I. Net cash generated from operating activities:
Proceeds from the sale of commodities and rendering of
services
Net increase/(decrease) in deposits from customers,
banks, and other financial institutions
Net increase/(decrease) in borrowings from the Central
Bank
Cash received from interest, handling charge and
commission
Tax and levy rebates 2,647,636 2,678,607
Cash generated from other operating activities 74 8,523,407 3,396,202
Sub-total of cash generated from operating activities 111,436,991 85,276,369
Payments for commodities and services (64,763,780) (58,121,474)
Net (increase)/decrease in loans and advances to
(273,794) 143,975
customers
Net (increase)/decrease in deposits in the central bank
and in interbank loans granted
Cash paid to and for employees (7,713,812) (6,676,204)
Taxes and levies paid (2,607,678) (2,603,937)
Cash used in other operating activities 75 (8,827,613) (5,334,029)
Sub-total of cash used in operating activities (84,163,008) (72,643,647)
Net cash generated from operating activities 80 27,273,983 12,632,722
II. Cash flow generated from investing activities:
Proceeds from disinvestments 47,498,688 35,100,021
Proceeds from return on investments 1,282,593 1,844,013
Net proceeds from disposal of fixed assets, intangible
assets, and other long-term assets
Cash generated from other investing activities 76 182,916 352,014
Sub-total of cash generated from investment activities 48,969,478 37,612,554
Payments for the acquisition and construction of fixed
(8,313,973) (12,401,270)
assets, intangible assets and other long-term assets
Payments for investments (56,395,015) (42,087,664)
Net payments for acquiring subsidiaries and other
business units
Cash used in other investing activities 77 (464,253) (563,835)
Subtotal of cash used in investing activities (71,277,824) (55,057,053)
Net cash used in investing activities (22,308,346) (17,444,499)
Person-in-charge
Legal Person-in-charge of the accounting
representative: Li Dongsheng of financial affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Consolidated Cash Flow Statement (Continued)
___________(RMB’000)_____________
Note V January - June 2025 January - June 2024
III. Cash flow generated from financing activities:
Capital contributions received 71,254 2,000
Including: Capital contributions by non-controlling
interests to subsidiaries
Borrowings raised 48,905,168 38,491,832
Cash received from bond issue 3,240,000 3,000,000
Cash generated from other financing activities 78 544,843 422,120
Sub-total of cash generated from financing activities 52,761,265 41,915,952
Cash paid for debt repayment (40,458,985) (32,904,575)
Cash paid for distribution of dividends and profits or
(2,718,734) (4,383,419)
the repayment of interests
Including: Dividend and Profit paid by subsidiaries
(11,617) (71,763)
to minority shareholders
Cash used in other financing activities 79 (9,101,549) (1,930,490)
Subtotal of cash used in financing activities (52,279,268) (39,218,484)
Net cash generated from financing activities 481,997 2,697,468
IV. Effect of exchange rate changes on cash and cash
equivalents
V. Net increase in cash and cash equivalents 5,695,406 (2,073,267)
Add: Beginning balance of cash and cash equivalents 20,861,255 19,996,815
VI. Ending balance of cash and cash equivalents 80 26,556,661 17,923,548
Person-in-charge
Legal Person-in-charge of the financial
representative: Li Dongsheng of financial affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Consolidated Statement of Changes in Shareholders’ Equity
___________(RMB’000)_____________
January - June 2025
Equity attributable to shareholders of the parent company
Other General Non- Total
Other equity Treasury Specific Surplus Retained
Share capital Capital reserves comprehensive risk controlling shareholders’
instruments share reserves reserves earnings
income reserve interests equity
I. Balance at the end of the prior year 18,779,081 - 10,553,081 (919,322) 7,189 (740,459) 3,974,386 8,934 21,504,719 79,536,135 132,703,744
Add: Change in accounting policies - - - - - - - - - - -
II. Balance at the beginning of the current
period
III. Movement of the current period - - (647,340) 215,670 (2,069) (83,352) - - 944,588 (3,789,084) (3,361,587)
(I) Total comprehensive income - - - - - (83,310) - - 1,883,500 (1,902,367) (102,177)
(II) Capital contributed and reduced by - - - - -
- - (628,811) 215,670 (1,871,965) (2,285,106)
shareholders
Capital contributed by shareholders - - (621,898) - - - - - - 71,254 (550,644)
Share-based payments included in - - - - - 50,426
- - (6,913) 215,670 259,183
owners' equity
Others - - - - - - - - - (1,993,645) (1,993,645)
(III) Profit distribution - - - - - - - - (938,954) (14,752) (953,706)
Appropriation to shareholders - - - - - - - - (938,954) (14,752) (953,706)
(IV) Internal transfer of owner's equity - - - - - (42) - - 42 - -
Other comprehensive income transferred - - - - - - -
- - (42) 42
to retained earnings
(V) Specific reserves - - - - (2,069) - - - - - (2,069)
Accrued in the period - - - - 3,892 - - - - - 3,892
Specific reserves used in the current - - - - - - -
- - (5,961) (5,961)
period
(VI) Others - - (18,529) - - - - - - - (18,529)
IV. Balance as at the end of the current
period
Legal Person-in-charge of Person-in-charge of the
representative: Li Dongsheng financial affairs: Li Jian financial department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Consolidated Statement of Changes in Shareholders’ Equity (Continued)
___________(RMB’000)_____________
January - June 2024
Equity attributable to shareholders of the parent company
Other General Non- Total
Share Other equity Capital Treasury Specific Surplus Retained
comprehensive risk controlling shareholders’
capital instruments reserves share reserves reserves earnings
income reserve interests equity
I. Balance at the end of the prior year 18,779,081 - 10,752,055 (1,094,943) 11,343 (945,798) 3,874,006 8,934 21,537,188 92,344,107 145,265,973
Add: Change in accounting policies - - - - - - - - - - -
II. Balance at the beginning of the current
period
III. Movement of the current period - - (402,691) 175,621 3,660 178,197 - - (507,113) (6,477,457) (7,029,783)
(I) Total comprehensive income - - - - - 178,197 - - 995,213 (1,466,563) (293,153)
(II) Capital contributed and reduced by
- - (392,181) 175,621 - - - - - (4,208,043) (4,424,603)
shareholders
Capital contributed by shareholders - - - - - - - - - (3,878,546) (3,878,546)
Share-based payments included in
- - 96,276 696,104 - - - - - 109,652 902,032
owners' equity
Others - - (488,457) (520,483) - - - - (439,149) (1,448,089)
(III) Profit distribution - - - - - - - - (1,502,326) (802,851) (2,305,177)
Appropriation to shareholders - - - - - - - - (1,502,326) (802,851) (2,305,177)
(IV) Internal transfer of owner's equity - - - - - - - - - - -
(V) Specific reserves - - - - 3,660 - - - - - 3,660
Accrued in the period - - - - 17,674 - - - - - 17,674
Specific reserves used in the current
- - - - (14,014) - - - - - (14,014)
period
(VI) Others - - (10,510) - - - - - - - (10,510)
IV. Balance as at the end of the current
period
Legal Person-in-charge of Person-in-charge of the
representative: Li Dongsheng financial affairs: Li Jian financial department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Balance Sheet of the Company
___________(RMB’000)_____________
Assets Note XVII June 30, 2025 December 31, 2024
Current assets
Monetary assets 4,104,523 1,551,692
Held-for-trading financial
assets
Accounts receivable 1 48,746 185,239
Prepayments 12,216 17,740
Other receivables 2 10,492,989 9,910,856
Other current assets 22,440 22,518
Total current assets 31,771,374 23,391,745
Non-current assets
Long-term equity investments 3 83,606,889 81,062,401
Other non-current financial
assets
Investment property 71,840 73,683
Fixed assets 35,171 35,361
Construction in progress 38,584 23,410
Right-of-use assets 416,866 423,543
Intangible assets 78,332 84,043
Long-term deferred expenses 22,804 26,603
Deferred income tax assets 7 7
Other non-current assets 8,764,309 2,600,666
Total non-current assets 93,621,626 85,053,260
Total assets 125,393,000 108,445,005
Person-in-
Person-in-charge charge of the
Legal of financial financial
representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Balance Sheet of the Company (Continued)
___________(RMB’000)_____________
Liabilities and shareholders' equity Note XVII June 30, 2025 December 31, 2024
Current liabilities
Short-term borrowings 300,000 780,798
Derivative financial liabilities - 1,764
Accounts payable 15,954 24,762
Contract liabilities 4,284 -
Employee compensation payable 197,083 178,592
Taxes and levies payable 13,610 10,056
Other payables 35,042,259 19,252,413
Non-current liabilities due within one 11,237,050 10,912,982
year
Other current liabilities 1,872 9,071
Total current liabilities 46,812,112 31,170,438
Non-current liabilities
Long-term borrowings 16,689,499 15,289,799
Bonds payable 6,482,694 6,488,620
Lease liabilities 14,506 16,485
Long-term payables 5,268 -
Long-term employee compensation 18,880 19,191
payable income
Deferred 58,942 55,985
Total non-current liabilities 23,269,789 21,870,080
Total liabilities 70,081,901 53,040,518
Share capital 18,779,081 18,779,081
Capital reserves 16,293,574 16,332,255
Less: Treasury share 703,652 919,322
Other comprehensive income 119,555 167,402
Surplus reserves 3,772,322 3,772,322
Retained earnings 17,050,219 17,272,749
Total shareholders’ equity 55,311,099 55,404,487
Total liabilities and shareholders' equity 125,393,000 108,445,005
Person-in-
Person-in-charge charge of the
Legal of financial financial
representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Income Statement of the Company
___________(RMB’000)_____________
Note XVII January - June 2025 January - June 2024
I. Operating revenue 5 186,466 699,303
Less: Operating cost 5 92,112 449,606
Taxes and levies 8,101 4,191
Sales expenses 13,786 18,060
Administrative expenses 188,505 164,415
R&D expenses 47,687 51,723
Financial expenses 576,905 500,159
Including: Interest expenses 768,238 777,950
Interest income 171,300 194,975
Add: Other income 1,070 1,179
Return on investment 6 1,274,402 895,659
Including: Return on investment in joint
ventures and associates
Gain on changes in fair value 195,528 211,802
Credit impairment loss (5,378) (3,811)
Asset disposal income 22 11
II. Operating profit 725,014 615,989
Add: Non-operating income 21 18
Less: Non-operating expenses 8,611 9
III. Gross profit 716,424 615,998
IV. Net profits 716,424 615,998
V. Other comprehensive income (47,847) 143,295
VI. Total comprehensive income 668,577 759,293
Person-in-
Person-in-charge charge of
Legal of financial the financial
representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Cash Flow Statement of the Company
___________(RMB’000)_____________
Note XVII January - June 2025 January - June 2024
I. Net cash generated from operating activities:
Proceeds from the sale of commodities and
rendering of services
Tax and levy rebates - 1,427
Cash generated from other operating activities 13,748,998 5,677,470
Sub-total of cash generated from operating
activities
Payments for commodities and services (32,950) (505,721)
Cash paid to and for employees (89,531) (84,865)
Taxes and levies paid (17,353) (61,246)
Cash used in other operating activities (1,287,859) (322,436)
Sub-total of cash used in operating activities (1,427,693) (974,268)
Net cash generated from operating activities 12,631,427 5,509,763
II. Cash flow generated from investing activities:
Proceeds from disinvestments 24,786,151 17,413,365
Proceeds from return on investments 875,376 1,327,458
Net proceeds from disposal of fixed assets,
- -
intangible assets, and other long-term assets
Cash generated from other investing activities 2,894,923 -
Sub-total of cash generated from investment
activities
Payments for the acquisition and construction of
fixed assets, intangible assets and other long-term (21,658) (1,146)
assets
Payments for investments (38,103,002) (22,881,623)
Cash used in other investing activities (103,085) -
Subtotal of cash used in investing activities (38,227,745) (22,882,769)
Net cash used in investing activities (9,671,295) (4,141,946)
Person-in-charge Person-in-charge
Legal of financial of the financial
representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Cash Flow Statement of the Company (Continued)
___________(RMB’000)_____________
Note XVII January - June 2025 January - June 2024
III. Cash flow generated from financing
activities:
Borrowings raised 10,806,010 8,630,000
Cash received from bond issue 3,240,000 3,000,000
Cash generated from other financing
activities
Sub-total of cash generated from
financing activities
Cash paid for debt repayment (12,707,110) (10,397,600)
Cash paid for distribution of dividends
(589,567) (2,178,628)
and profits or repayment of interests
Cash used in other financing activities (1,252,578) (812,165)
Subtotal of cash used in financing
(14,549,255) (13,388,393)
activities
Net cash generated from financing
(416,132) (1,332,768)
activities
IV. Effect of exchange rate changes on cash
(582) 293
and cash equivalents
V. Net increase in cash and cash equivalents 2,543,418 35,342
Add: Beginning balance of cash and cash
equivalents
VI. Ending balance of cash and cash
equivalents
Person-in-
Person-in-charge charge of the
Legal of financial financial
representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Statement of Changes in Shareholder Equity of the Company
___________(RMB’000)_____________
January - June 2025
Other Total
Other equity Capital Treasury comprehensive Surplus Retained shareholders’
Share capital instruments reserves share income reserves earnings equity
I. Balance at the end of the prior year 18,779,081 - 16,332,255 (919,322) 167,402 3,772,322 17,272,749 55,404,487
Add: Change in accounting policies - - - - - - - -
II. Balance at the beginning of the current
period
III. Movement of the current
- - (38,681) 215,670 (47,847) - (222,530) (93,388)
period
(I) Total comprehensive income - - - - (47,847) - 716,424 668,577
(II) Capital contributed and reduced by
- - (40,024) 215,670 - - - 175,646
shareholders
Share-based payments included in
- - (40,024) 215,670 - - - 175,646
owners' equity
(III) Profit distribution - - - - - - (938,954) (938,954)
Appropriation to shareholders - - - - - - (938,954) (938,954)
(IV) Internal transfer of owner's equity - - - - - - - -
(V) Others - - 1,343 - - - - 1,343
IV. Balance as at the end of the current
period
Person-in-charge of
Person-in-charge of the financial
Legal representative: Li Dongsheng financial affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Statement of Changes in Shareholder Equity of the Company (Continued)
___________(RMB’000)_____________
January - June 2024
Other Total
Other equity Capital Treasury comprehensive Surplus Retained shareholders’
Share capital instruments reserves share income reserves earnings equity
I. Balance at the end of the prior year 18,779,081 - 16,127,030 (1,094,943) (142,055) 3,671,942 17,871,649 55,212,704
Add: Change in accounting policies - - - - - - - -
II. Balance at the beginning of the current
period
III. Movement of the current
- - 63,386 175,621 143,294 - (886,328) (504,027)
period
(I) Total comprehensive income - - - - 143,294 - 615,998 759,292
(II) Capital contributed and reduced by
- - 63,406 175,621 - - - 239,027
shareholders
Share-based payments included in
- - 63,406 696,104 - - - 759,510
owners' equity
Others - - - (520,483) - - - (520,483)
(III) Profit distribution - - - - - - (1,502,326) (1,502,326)
Appropriation to shareholders - - - - - - (1,502,326) (1,502,326)
(IV) Internal transfer of owner's equity - - - - - - - -
(V) Others - - (20) - - - - (20)
IV. Balance as at the end of the current
period
Person-in-charge of
Person-in-charge of the financial
Legal representative: Li Dongsheng financial affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
I Corporate Information
TCL Technology Group Corporation (hereinafter referred to as "the Company") is a limited
liability company established in Huizhou on July 17, 1997. It was changed to a limited liability
company as a whole in 2002 and was listed on the Shenzhen Stock Exchange in January 2004.
Through years of new share placements, private placements, capital conversion, share option
exercises, and share repurchases and cancellations, the registered capital and share capital of the
Company were RMB 18,779,080,767 as of June 30, 2025.
The main business structure of the Company and its subsidiaries consists of display, new
energy photovoltaic and other silicon materials, industrial finance, and other businesses. The
relevant information of the Company's subsidiaries is detailed in Note VIII.
The registered address of the Company is: TCL TECH. Building, 17 Huifeng Third Road,
Zhongkai Hi-Tech Development District, Huizhou City, Guangdong Province.
Approval and issue: These financial statements were authorized for issue by the Company’s
Board of Directors on August 28, 2025.
II Basis for the Preparation of Financial Statements
The preparation of financial statements of the Company is based on the actual transactions and
events in accordance with the Accounting Standards for Business Enterprises - Basic Standards
published by the Ministry of Finance and specific Accounting Standards for Business
Enterprises, application guidelines for Accounting Standards for Business Enterprises,
Accounting Standards for Business Enterprises interpretations and other relevant regulations
(hereinafter collectively referred to as "Accounting Standards for Business Enterprises") for
confirmation and measurement, combining the provisions of Regulations on Information
Disclosure and Compilation of Companies Offering Securities to the Public No. 15 - General
Provisions on Financial Reports (revised in 2023) published by CSRC.
The Company has evaluated the ability to continue as a going concern for 12 months from the
end of the Reporting Period and has not identified any issues or circumstances that result in
significant doubts about its ability to continue as a going concern. Therefore, the financial
statements have been prepared on a going concern basis.
III Significant accounting policies and accounting estimates
The following significant accounting policies and accounting estimates of the Company are
formulated in accordance with the Accounting Standards for Business Enterprises. The business
not mentioned shall be implemented in accordance with the relevant accounting policies in the
Accounting Standards for Business Enterprises.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
The financial statements are in compliance with the requirements of the Accounting Standards
for Business Enterprises, and truly and completely reflect the financial position, operating
results, cash flow, and other relevant information of the Company during the Reporting Period.
The Company adopts the calendar year as an accounting period, and its fiscal year is from January
An operations cycle refers to a period from the purchase of assets by an enterprise for processing
to the realization of cash or cash equivalents. The Company takes a 12-months’ period as an
operations cycle and takes the operating cycle as the criteria for liquidity classification of assets
and liabilities.
The Company uses RMB as its functional currency. Its overseas subsidiaries use the currencies
of the main economic environment in which they operate as their respective functional
currencies, and their financial statements are converted into RMB and presented in RMB
thousands unless otherwise specified.
Item Importance criteria
The recovery, reversal, and actual write-off The amount of an individual item is greater than
of bad debt provisions for important RMB 50 million.
receivables with bad debt provisions
accrued on an individual basis
Important construction in progress The ending carrying amount of an individual item
exceeds RMB 10 billion.
Important non-wholly-owned subsidiaries The total assets of non-wholly-owned subsidiaries
exceeds 10% of that of the Group, or the total
revenue of non-wholly-owned subsidiaries
exceeds 10% of that of the Group.
Important joint ventures or associates The carrying amount of long-term equity
investments in a single investee exceeds 5% of the
total assets of the Group.
Important prepayments, contract liabilities, The amount of an individual item exceeds 0.5% of
accounts payable, and other payables are the total assets of the Group.
aged for more than 1 year
Important capitalized research and The cumulative expenditure of an individual item
development items exceeds 0.5% of the total assets of the Group.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
common control
(1) Multiple transactions that are part of a business combination achieved in stages are accounted for as a
package transaction, if the terms, conditions, and economic effects of these individual transactions
meet one or more of the following criteria:
(a) These transactions are made simultaneously or with consideration of influence on each other;
These transactions can only achieve a complete business outcome when they are accounted for
(b)
collectively;
(c) The occurrence of a transaction depends on the occurrence of at least one of the other transactions;
A transaction is uneconomical individually, but is economical when considered collectively with
(d)
other transactions.
(2) Business combinations involving enterprises under common control
A combination of enterprises that are ultimately controlled by the same party or parties before and
after the combination on a non-temporary basis constitutes a business combination under common
control.
Assets and liabilities acquired by the Company in a business combination are measured at their
carrying amounts in the consolidated financial statements of the ultimate controlling party on the
combination date. (including the goodwill resulting from the ultimate controlling party's acquisition
of the acquiree). The difference between the carrying amount of net assets acquired in the
combination and that of the consideration paid for the combination (or the total par value of shares
issued) is used to adjust the share capital premium in the capital reserve, and when the share capital
premium in the capital reserve is insufficient for offset, it is used to adjust the retained earnings. If
there is a contingent consideration and it is necessary to confirm estimated liabilities or assets, the
difference between the amounts of the estimated liabilities or assets and the settlement amount of
subsequent contingent consideration is used to adjust the capital reserve (capital premium or share
capital premium), and when the capital reserve is insufficient, it is used to adjust the retained
earnings.
For a business combination that is ultimately realized through multiple transactions, if it is a package
transaction, each transaction is treated as a transaction that acquires control; if it is not a package
transaction, on the date of acquisition of control, the difference between the initial cost of long-term
equity investments and the carrying amount of long-term equity investments before the combination
plus the carrying amount of the newly paid considerations on the date of combination is used to
adjust the capital reserve; and when the capital reserve is insufficient for offset, it is used to adjust the
retained earnings. For equity investments held prior to the date of combination, no accounting
treatment is carried out for other comprehensive gains recognized by equity accounting or financial
instrument confirmation and measurement standards, and up to the disposal of the investment, the
accounting treatment shall be based on the same basis as the direct disposal of the assets or liabilities
of the invested entity; other changes in the owner’s equity other than net profits or loss, other
comprehensive income, or profit distribution of net assets of the invested company recognized as
equity are not subject to accounting, and will be transferred to the current profit and loss until
disposal of the investment.
(3) Business combination not under common control
A combination of enterprises that are not ultimately controlled by the same party or parties before and
after the combination constitutes a business combination not under common control.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
Accounting treatments for business combinations involving enterprises under and not under
common control (continued)
(3) Business combination not under common control (continued)
Assets transferred and liabilities incurred or assumed by the Company as consideration for the
business combination are measured at fair value on the date of purchase, and the difference
between the fair value and their carrying amount is recognized in current profits and losses.
The excess of the cost of the business combination over the Company's share of the fair value of
the acquiree's identifiable net assets is recognized as goodwill. If the cost of the business
combination is less than the Company's share of the fair value of the acquiree's identifiable net
assets, the Company first reassesses the measurement of the fair values of the acquiree's
identifiable assets, liabilities and contingent liabilities, as well as the measurement of the cost of
the combination. If after this reassessment, the cost of the combination is still less than the
Company's share of the fair value of the acquiree's identifiable net assets, the difference is
recognized in the current period's profit or loss.
In the case where a business combination not under common control is realized through multiple
exchanges and transactions, if it is a package transaction, each transaction will be accounted for
as a transaction for acquiring control; in the case it is not a package transaction, if the equity
investment held before the date of combination is accounted for using equity method, the sum of
the carrying amount of equity investments of the acquired party held before the date of
acquisition, plus the new investment cost on the date of acquisition will be recognized as the
initial cost of the investment; the remaining comprehensive income recognized in equity
investments using equity method before the date of acquisition will be recorded, when the
investment is disposed of on the same basis as those the investee adopted directly to dispose of
the relevant assets or liabilities. If the equity investment held before the date of combination is
accounted for by financial instrument recognition and measurement criteria, the sum of the fair
value of the equity investment on the date of combination plus the new investment cost is taken
as the initial investment cost on the date of combination. The difference between the fair value
and the carrying amount of the original equity, and the accumulated fair value changes originally
included in other comprehensive income should be transferred to return on investment in the
current period which matches the combination date.
(4) Expenses incurred from combination
The intermediary fees paid for audits, legal services, assessments, and consultations and other
directly related expenses incurred in the business combination are recognized in profit or loss
during the period in which they are incurred. Transaction costs for the issuance of equity
securities for the business combination that may be directly attributed to equity transactions can
be deducted from equity.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(1) Criteria for judging control
Control means having the power of control over the investee, enjoying variable returns by
participating in the relevant activities of the investee, and having the ability to use the power
over the investee to influence the amount of returns.
The Company judges whether it controls the investee based on comprehensive consideration of
all relevant facts and circumstances. Once any change in relevant facts and circumstances causes
the relevant elements involved in the definition of control to be changed, the Company will
conduct a reassessment. The relevant facts and circumstances mainly include:
① The purpose for which the investee is established;
② The relevant activities of the investee and how to make decisions on such activities;
③ Whether the rights of the investor give it the current ability to direct the relevant activities of
the investee;
④ Whether the investor is exposed to, or has rights to, variable returns from its involvement
with the investee;
⑤ Whether the investor has the ability to exercise its power over the investee to affect the
amount of return;
⑥ The relationship between the investor and other parties.
(2) Consolidation scope
The scope of consolidation of the Company’s consolidated financial statements is determined on
the basis of control, and all subsidiaries (including separate entities controlled by the Company)
are included into the consolidated financial statements.
(3) Consolidation procedure
The Company prepares the consolidated financial statements based on the financial statements of
itself and its subsidiaries and other relevant information. In preparing the consolidated financial
statements, the Company treats the whole group as a single accounting entity to reflect the
financial position, operating results, and cash flow of the group as a whole under unified
accounting policies, in accordance with the recognition, measurement, and presentation
requirements of relevant accounting standards for business enterprises.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
The accounting policies and accounting periods adopted by all subsidiaries included in the
consolidated financial statements are consistent with those of the Company. If the accounting
policies or accounting periods adopted by the subsidiaries are inconsistent with those of the
Company, necessary adjustments will be made in accordance with the Company's accounting
policies and accounting periods when preparing consolidated financial statements.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(3) Consolidation procedure (continued)
In preparing the consolidated financial statements, the effects of intracompany transactions between the
Company and its subsidiaries, and among subsidiaries, are eliminated from the consolidated balance sheet,
consolidated income statement, consolidated cash flow statement, and consolidated statement of changes
in shareholders' equity. Where a transaction is recognized by the Company or its subsidiaries as the
transaction subject, which is different from that under the consolidated financial statement of the group,
the transaction should be adjusted at the group level.
If the current losses shared by the minority shareholders of a subsidiary exceed the share enjoyed by the
minority shareholder in the initial owners' equity of the subsidiary, the balance will still be used to offset
the equity of minority interests.
During the Reporting Period, if a subsidiary or business is added due to the business combination
involving enterprises under common control, the beginning balances of the consolidated balance sheet are
adjusted; the income, expenses and profits of the subsidiary or business as from the beginning of the
period of combination to the end of the Reporting Period are included in the consolidated income
statement; the cash flows of the subsidiary or business as from the beginning of the period of combination
to the end of the Reporting Period are included in the consolidated cash flow statement, and the relevant
items of the comparative statements are adjusted as if the reporting entity after the combination had
existed since the time point when the ultimate controller began to control.
If the Company is able to exercise control over the investee under common control due to additional
investment or for other reasons, it shall be deemed that the parties participating in the combination had
made adjustments based on their current state when the ultimate controller began to control. For an equity
investment in the acquiree held prior to the business combination, any related profit or loss, other
comprehensive income, and other changes in net assets that were recognized during the period from the
later of i) the date the original equity interest was acquired, and ii) the date the combining parties came
under common control, up to the date of the business combination, are reversed against the opening
balance of retained earnings in the comparative financial statements or against the current period's profit or
loss, respectively.
During the Reporting Period, if a subsidiary or business is added due to a business combination involving
enterprises under non-common control, the beginning balance of the consolidated balance sheet is not
adjusted; the income, expenses, and profits of the subsidiary or business from the date of acquisition to the
end of the Reporting Period are included in the consolidated income statement; the cash flow of the
subsidiary or business from the date of acquisition to the end of the Reporting Period is included in the
consolidated cash flow statement.
If the Company is able to exercise control over the investee not under common control due to additional
investment or for other reasons, the Company shall remeasure the equity of the purchased party held
before the purchase date at its fair value as at the purchase date, and the difference between the fair value
and its carrying amount shall be recognized in the return on investment of the current period. If the equity
of the purchased party held before the purchase date involves other comprehensive income accounted for
under the equity method and other changes in owner’s equity other than net profits and loss, other
comprehensive income, and profit distribution, the relevant other comprehensive income and other
changes in owner’s equity shall be converted into the return on investment of the current period which
matches the purchase date, except for other comprehensive income arising from the investee’s
remeasurement of the changes in net liabilities or net assets of defined benefit plans.
During the Reporting Period, if the Company disposes of a subsidiary or business, the income, expenses,
and profits of the subsidiary or business for the period from the beginning of the period to the disposal date
are included in the consolidated income statement; and the cash flow of the subsidiary or business for the
period from the beginning of the reporting period to the disposal date is included in the consolidated cash
flow statement.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(3) Consolidation procedure (continued)
When the Company loses control over the invested party due to disposal of part of the equity investment
or other reasons, the remaining equity investment after disposal will be re-measured based on its fair value
by the Company on the date of loss of control. The difference of the sum of the consideration obtained
from the disposal of the equity and the fair value of the remaining equity, less the sum of the share of net
assets and goodwill of the original subsidiary that should be enjoyed in accordance with the original share-
holding ratio since the date of acquisition or combination, is accounted for the return on investment in the
current period of loss of control. Other comprehensive income or net profits and losses related to the
original subsidiary's equity investment, other comprehensive income, and other changes in owners' equity
other than profit distribution, will be converted into current return on investment when control is lost,
except for other comprehensive gains arising from the re-measurement of net liabilities of the Benefit Plan
made by the invested party or changes in net assets.
When the equity investment in a subsidiary is disposed of step by step through multiple transactions until
the loss of control, when the terms, conditions, and economic influence of the transactions of the equity
investment in the subsidiary conform to one or more of the following, it usually indicates that the multiple
transaction items shall be accounted for as a transaction package:
① These transactions are made simultaneously or with consideration of influence on each other;
② These transactions can only achieve a complete business outcome when they are accounted for
collectively;
③ The occurrence of a transaction depends on the occurrence of at least one of the other transactions;
④ A transaction is uneconomical individually, but is economical when considered collectively with other
transactions.
If transactions through which the equity investment in a subsidiary is disposed of until the loss of control
constitute a transaction package, the Company will account for such transactions as one transaction
through which the subsidiary is disposed of with the loss of control over it; provided that the difference
between the price for each disposal and the share in the net asset of the subsidiary corresponding to the
investment disposed of, before the loss of control, is recognized as other comprehensive income in the
consolidated financial statements and is transferred to the profits and losses of the current period in which
the loss of control occurs.
When transactions through which the equity investment in a subsidiary is disposed of until the loss of
control do not constitute a transaction package, such transactions shall be accounted for i) before the loss
of control, in accordance with the relevant policies for partial disposal of an equity investment in a
subsidiary without losing control; and ii) upon the loss of control, in accordance with the general
accounting method for disposing of a subsidiary.
The difference, between the long-term equity investment obtained by the Company through the purchase
of minority interests and the share in the net asset of the subsidiary calculated continuously from the
purchase date (or combination date) based on the new shareholding percentage shall be used to adjust i)
the share capital premium under the capital reserve in the consolidated balance sheet or ii) the retained
earnings, if the share capital premium under the capital reserve is insufficient to offset.
The difference between the disposal price obtained from the partial disposal of a long-term equity
investment in a subsidiary without losing control and the share, corresponding to the long-term equity
investment disposed of, in the net asset of the subsidiary calculated continuously from the purchase date or
combination date shall be used to adjust i) the share capital premium under the capital reserve in the
consolidated balance sheet or ii), the retained earnings, if the share capital premium under the capital
reserve is insufficient to offset.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(1) Classification of joint arrangements
The Company classifies a joint arrangement as a joint operation or a joint venture according to factors
such as the structure and legal form of the joint arrangement, the terms agreed in the joint
arrangement, other relevant facts and circumstances.
Joint arrangements not reached through independent entities are classified as joint operations; joint
arrangements reached through independent entities are usually classified as joint ventures; however, a
joint arrangement that is indicated by conclusive evidence of meeting any of the following conditions
and meeting the provisions of relevant laws and regulations is classified as a joint operation:
① The legal form of the joint arrangement shows that the parties have rights to the assets, and
obligations for the liabilities, relating to the arrangement.
② The contractual terms of the joint arrangement stipulates that the parties have rights to the assets,
and obligations for the liabilities, relating to the arrangement.
③ Other relevant facts and circumstances show that the parties have rights to the assets, and
obligations for the liabilities, relating to the arrangement. For example, the parties enjoy all the output
substantially related to the joint arrangement, and the repayment of the liabilities relating to the
arrangement continues relying on the support of the parties.
(2) Accounting treatment for joint operation
The Company shall recognize the following items in relation to interest in the joint operation, and
carry out accounting treatment in accordance with the provisions of relevant accounting standards for
business enterprises:
① its assets, including its share of any assets held jointly;
② its liabilities, including its share of any liabilities incurred jointly;
③ its revenue from the sale of its share of the output arising from the joint operations;
④ its share of the revenue from the sale of the output by the joint operations; and
⑤ its expenses, including its share of any expenses incurred jointly.
If investing or selling assets (except those that constitute a business), etc., into or to the joint
operation, the Company shall only recognize the part of the profit and loss arising from the
transaction attributable to other participants in the joint operation, before the assets, etc., are sold to a
third party by the joint operation. The Company will recognize in full the asset impairment loss
arising if the assets invested or sold are impaired in compliance with the Accounting Standards for
Business Enterprises No. 8 - Asset Impairment, etc.
If purchasing assets (except those that constitute a business), etc., from the joint operation, the
Company shall only recognize the part of the profit and loss arising from the transaction attributable
to other participants in the joint operation, before the assets, etc., are sold to a third party by the
Company. The Company will recognize its share of the asset impairment loss arising if the assets
purchased are impaired in compliance with the Accounting Standards for Business Enterprises No. 8
- Asset Impairment, etc.
The Company does not enjoy joint control over the joint operations. If the Company has rights to the
assets, and obligations for the liabilities, relating to the joint operation, it shall still be accounted for
by the above principles; otherwise, it shall be accounted for by the relevant accounting standards for
business enterprises.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
In the preparation of the cash flow statement, the Company recognizes cash holdings and
deposits that can be used for payment at any time as cash.
The Company recognizes cash that is easily converted into a known amount with a short holding
period (generally due within three months from the date of purchase) and strong liquidity, and
investments with a low risk of changes in value (including investments in bonds which due
within three months, while excluding equity investments), as cash equivalents.
(1) Foreign currency transactions
Foreign currency transactions between the Company and its subsidiaries are translated into base
currency at the spot exchange rate on the transaction date.
Foreign currency monetary items are translated at the spot exchange rate on the balance sheet
date, and the exchange differences resulted therefrom, except that the exchange differences
arising from special foreign currency loans related to the acquisition and construction of assets
eligible for capitalization should be treated in accordance with the principle of capitalization of
borrowing costs, are all included in the current profit and loss. Foreign currency non-monetary
items measured at historical cost are still translated at the spot exchange rate on the transaction
date, and the amount of base currency for bookkeeping is not changed.
Foreign currency non-monetary items measured at fair value are translated at the spot exchange
rates on the date when the fair value is determined, and the exchange differences resulted
therefrom are included in current profits and losses as a change in fair value. In the case of
foreign currency non-monetary items that are at fair value through other comprehensive income,
the exchange differences incurred are included in other comprehensive income.
(2) Translation of foreign currency financial statement
When the Company translates the financial statements of overseas operations, the assets and
liabilities in the balance sheet are translated at the spot exchange rate on the balance sheet date.
The owner’s equity items, except for the "Retained earnings" item, are translated at the spot
exchange rate at the time of occurrence of the items. All the incurred items in the income
statement are translated at the current average exchange rate of the period in which transactions
occur. The translation differences of foreign currency financial statements arising from the above
translation are included in other comprehensive income.
When disposing of an overseas operation, the translation differences in the foreign currency
financial statements related to the overseas operation listed in other comprehensive income in the
balance sheet are transferred from the other comprehensive income to the profit and loss. When
the disposal of a portion of the equity investment or otherwise causes a decrease in the
proportion of equity held in the overseas operation without losing control over the overseas
operation, the translation differences in the foreign currency statements related to the part of the
overseas operation disposed of will be attributed to minority interests, rather than to the current
profits and losses. When the overseas operation disposes of a portion of the equity of an
associate or joint venture, the translation difference of the foreign statements related to the
overseas operation should be transferred to the profit or loss for the period in proportion to the
disposal of the overseas operation.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
When the Company becomes a party to a financial instrument, it recognizes a financial asset or
liability.
The effective interest method refers to the method of calculating the amortized cost of financial
assets or liabilities and allocating interest income or interest expenses into each accounting
period.
The effective interest rate refers to the interest rate used to discount the estimated future cash
flow of a gross amount or financial liability during its expected duration to the book balance of
the gross amount or the amortized cost of the financial liability. When determining the effective
interest rate, the expected cash flow is estimated on the basis of considering all contract terms of
financial assets or liabilities (such as prepayment, extension, call options, or other similar
options), but the expected credit loss is not considered.
The amortized cost of a financial asset or financial liability is the accumulated amortization
amount formed by deducting the repaid principal from the initial recognition amount of the
financial asset or financial liability, adding or subtracting the difference between the initial
recognition amount and the maturity amount by using the effective interest method, and then
deducting the accumulated accrued loss reserve (only applicable to financial assets).
(1) Classification and measurement of financial assets
According to the business model of the financial assets under management and the contractual
cash flow characteristics of the financial assets, the Company divides the financial assets into the
following three categories:
(a) Financial assets are measured at amortized cost.
(b) Financial assets are measured at fair value through other comprehensive income.
(c) Financial assets are measured at fair value through profit or loss.
Financial assets are measured at fair value when initially recognized, but if the accounts or notes
receivable arising from the sale of goods or the provision of services do not contain significant
financing components or do not consider financing components for no more than one year, the
initial measurement shall be made at the transaction price.
For financial assets measured at fair value through profit or loss, transaction expenses are
directly recognized in the current profit and loss. For other financial assets, transaction expenses
are included in the initial recognition amount.
Subsequent measurement of financial assets depends on their classification. All related financial
assets affected will be reclassified when and only when the Company changes its business model
of managing financial assets.
(a) Financial assets are classified as those measured at amortized cost
The contract terms of a financial asset stipulate that the cash flow generated on a specific date is
only the payment of the principal and the interest on the amount of outstanding principal, and the
business model for managing the financial asset is to collect the contractual cash flow, then the
Company classifies the financial asset as measured at amortized cost. Financial assets of the
Company that are classified as those measured at amortized cost include monetary assets, notes
receivable, accounts receivable, other receivables, long-term receivables, debt investments, etc.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(1) Classification and measurement of financial assets (continued)
(a) Financial assets classified as those measured at amortized cost (continued)
The Company recognizes interest income from such financial assets with the effective interest
method, and carries out subsequent measurement at amortized cost. Gains or losses arising from
impairment or derecognition or modification are included in current profits and losses. The
Company calculates and determines the interest income based on the book balance of financial
assets multiplied by the effective interest rate, except for the following circumstances:
① For purchased or originated credit-impaired financial assets, the Company calculates and
determines their interest income at the amortized cost of the financial assets and the credit-
adjusted effective interest rate since the initial recognition.
② For financial assets not credit-impaired at the time of being purchased or originated but in the
subsequent period, the Company calculates and determines their interest income at the amortized
cost and the effective interest rate of the financial assets in the subsequent period. If the financial
instrument is no longer credit-impaired due to the improvement of its credit risk in the
subsequent period, the Company calculates and determines the interest income by multiplying
the effective interest rate by the book balance of the gross amount.
Financial assets are classified as those measured at fair value through other comprehensive
(b)
income
The contract terms of a financial asset stipulate that the cash flow generated on a specific date is
only the payment of the principal and the interest on the amount of outstanding principal, and the
business model for managing the financial assets is both to collect contractual cash flow and for
its sale, then the Company classifies the financial assets as measured at fair value through other
comprehensive income.
The Company recognizes interest income from such financial assets with the effective interest
method. Except that the interest income, impairment loss, and exchange difference are
recognized as the current profit and loss, other changes in fair value are included in other
comprehensive income. When the financial asset is derecognized, the accumulated gains or
losses previously included in other comprehensive income are transferred out and included in
current profits and losses.
Notes and accounts receivable measured at fair value through other comprehensive income are
reported as receivables financing, and such other financial assets are reported as other debt
investments. Among them, other debt investments maturing within one year from the balance
sheet date are reported as the current portion of non-current assets, and other debt investments
maturing within one year are reported as other current assets.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(1) Classification and measurement of financial assets (continued)
(c) Financial assets designated as measured at fair value through other comprehensive income
At the time of initial recognition, the Company may irrevocably designate non-trading equity
instrument investments as financial assets measured at fair value through other comprehensive
income on the basis of individual financial assets.
Changes in the fair value of such financial assets are included in other comprehensive income
without allowance for impairment. When the financial asset is derecognized, the accumulated
gains or losses previously included in other comprehensive income are transferred out and
included in the retained earnings. During the investment period when the Company holds the
equity instrument, the dividend income is recognized and included in the current profit and loss.
When the Company's right to receive dividends has been established, the economic benefits
related to dividends are likely to flow into the Company, and the amount of dividends can be
measured reliably. The Company reports such financial assets under the item of investments in
other equity instruments.
An investment in equity instruments is a financial asset measured at fair value through current
profits and losses when it is obtained mainly for recent sale, or is part of the identifiable portfolio
of financial assets centrally managed when initially recognized and objective evidence exists for
a short-term profit model in the near future, or is a derivative (except for derivatives defined as
financial guarantee contracts and designated as effective hedging instruments).
(d) Financial assets classified as those measured at fair value through profit or loss
If failing to be classified as those measured at amortized cost or at fair value through other
comprehensive income, or not designated as measured at fair value through other comprehensive
income, financial assets are all classified as those measured at fair value through profit or loss.
The Company carries out subsequent measurement of such financial assets at fair value, and
includes gains or losses arising from changes in fair value as well as dividends and interest
income associated with such financial assets into current profits and losses.
The Company reports such financial assets as held-for-trading financial assets and other non-
current financial assets according to their liquidity.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(1) Classification and measurement of financial assets (continued)
(e) Financial assets designated as measured at fair value through current profits and losses
At the time of initial recognition, the Company may irrevocably designate financial assets as
measured at fair value through current profits and losses on the basis of individual financial
assets in order to eliminate or significantly reduce accounting mismatches.
If the mixed contract contains one or more embedded derivative instruments and its main
contract is not any financial asset as above, the Company may designate the whole of the mixed
contract as a financial instrument measured at fair value through current profits and losses.
Except under the following circumstances:
① Embedded derivatives do not significantly change the cash flow of mixed contracts.
② When determining initially whether similar mixed contracts need to be split, it is substantially
clear that embedded derivatives contained in them should not be split without analysis. If the
prepayment right embedded in a loan allows the holder to prepay the loan at an amount close to
the amortized cost, the prepayment right does not need to be split.
The Company carries out subsequent measurement of such financial assets at fair value, and
includes gains or losses arising from changes in fair value as well as dividends and interest
income associated with such financial assets into current profits and losses.
The Company reports such financial assets as held-for-trading financial assets and other non-
current financial assets according to their liquidity.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(2) Classification and measurement of financial liabilities
The Company classifies a financial instrument or its components into financial liabilities or
equity instruments upon initial recognition according to the contract terms and the economic
substance reflected by the financial instrument issued, rather than only in legal form, in
combination with the definitions of financial liabilities and equity instruments. Financial
liabilities are classified at initial recognition as measured at fair value through profit or loss, or
other financial liabilities, or derivatives designated as effective hedging instruments.
Financial liabilities are measured at fair value upon initial recognition. For financial liabilities
measured at fair value through current profits and losses, relevant transaction expenses are
directly included in current profits and losses; for other categories of financial liabilities, relevant
transaction expenses are included in the initial recognition amount.
Subsequent measurement of financial liabilities depends on their classification:
(a) Financial liabilities measured at fair value through current profits and losses
Such financial liabilities include held-for-trading financial liabilities (including derivatives
falling under financial liabilities) and financial liabilities designated as measured at fair value
upon initial recognition and through current profits and losses.
A financial liability is a held-for-trading financial liability if it is mainly undertaken for recent
sale or repurchase, or is part of the identifiable portfolio of financial instruments centrally
managed, and there is objective evidence that the enterprise has recently employed a short-term
profit model, or is a derivative instrument, except for derivatives designated as effective hedging
instruments and derivatives conforming to financial guarantee contracts. Held-for-trading
financial liabilities (including derivatives falling under financial liabilities) are subsequently
measured at fair value. All changes in fair values except for hedging accounting are included in
current profits and losses.
The Company irrevocably designates financial liabilities as measured at fair value through
current profits and losses at the time of initial recognition in order to provide more relevant
accounting information, provided:
① Such financial liabilities can eliminate or significantly reduce accounting mismatches.
② The financial liability portfolio, or the portfolio of financial assets and liabilities is managed
and evaluated for performance on the basis of fair value according to the enterprise risk
management or investment strategy stated in the official written documents, and is reported to
key management personnel within the enterprise on this basis.
The Company subsequently measures such financial liabilities at fair value. Apart from changes
in fair value that are brought about by changes in the Company’s own credit risk and included in
other comprehensive income, other changes in fair value are included in current profits and
losses. Unless including such changes in other comprehensive income will cause or expand
accounting mismatch in profit or loss, the Company will include all changes in fair value
(including the amount affected by changes in its own credit risk) in current profits and losses.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(2) Classification and measurement of financial liabilities (continued)
(b) Other financial liabilities
The Company classifies financial liabilities, except for the following items as measured at
amortized cost. Such financial liabilities are recognized by the effective interest method and
subsequently measured at amortized cost. Gains or losses arising from derecognition or amortization
are included in current profits and losses:
① Financial liabilities measured at fair value through current profits and losses.
② Financial liabilities resulting from the transfer of financial assets that do not meet the conditions
for derecognition or continue to be involved in the transferred financial assets.
③ Financial guarantee contracts that do not fall under the first two categories hereof, and loan
commitments that do not fall under category (1) hereof and lend at a below-market interest rate.
Financial guarantee contracts refer to contracts that require the issuer to pay a specific amount to the
contract holder who has suffered losses when a specific debtor fails to pay the debt in accordance
with the original or modified terms of the debt instrument. Financial guarantee contracts that are not
financial liabilities designated as measured at fair value through profit or loss are measured after
initial recognition according to the loss reserve amount and the initial recognition amount, less the
accumulated amortization amount during the guarantee period, whichever is higher.
(3) Derecognition of financial assets and liabilities
Financial assets are derecognized, i.e. written off from their account and balance sheet if any of the
(a)
following conditions is met:
① The contractual right to receive cash flow from the financial asset is terminated; or
② The financial asset has been transferred, which meets the requirements for derecognition of
financial assets.
(b) Conditions for derecognition of financial liabilities
If the current obligation of a financial liability (or part thereof) has been discharged, such financial
liability (or part thereof) is derecognized.
The existing financial liability is derecognized with a new one recognized, and the difference
between the carrying amount and the consideration paid (including transferred non-cash assets or
assumed liabilities) is included in current profits and losses, if an agreement is signed between the
Company and the lender to replace the existing financial liability by assuming a new one, and the
contract terms of these two financial liabilities are substantially different, or the contract terms of
the existing financial liability (or part thereof) are substantially modified.
If the Company repurchases part of a financial liability, the carrying amount of the financial liability
shall be distributed according to the proportion of the fair value of the continuing recognition
portion and the derecognition portion to the overall fair value on the repurchase date. The difference
between the carrying amount allocated to the derecognized portion and the consideration paid
(including transferred non-cash assets or liabilities assumed) shall be included in current profits and
losses.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(4) Recognition basis and measurement method of financial asset transfer
When a financial asset is transferred, the Company evaluates the risks and rewards retained of the
financial asset ownership:
(a) If almost all the risks and rewards of the financial asset ownership are transferred, such financial
asset shall be derecognized, and the rights and obligations generated or retained in the transfer shall
be separately recognized as assets or liabilities.
If risks and rewards of the financial asset ownership are substantially retained, such financial asset
(b)
shall continue to be recognized.
(c) In circumstances where the Company neither transfers nor retains risks and rewards of the financial
asset ownership substantially (i.e. circumstances other than ① and ② of this article), based on
whether it retains control over such financial asset:
① The financial asset shall be derecognized, and the rights and obligations generated or retained in
the transfer shall be separately recognized as assets or liabilities if such control is not retained; or
② The relevant financial asset shall continue to be recognized to the extent that it continues to be
involved in the transferred financial asset, and the relevant liabilities shall be recognized
accordingly if such control is retained. The extent that it continues to be involved in the transferred
financial asset refers to the extent the Company bears the risks or rewards of changes in the value of
the transferred financial asset.
When judging whether the transfer of financial assets meets the above conditions for derecognition
of financial assets, the principle of substance over form shall be adopted. The Company divides the
transfer of financial assets into overall transfer and partial transfer.
If the overall transfer of financial assets meets the conditions for derecognition, the difference
(a)
between the following two amounts shall be included in the current profits and losses:
① The carrying amount of the transferred gross amount on the date of derecognition.
② The sum of the consideration received for the transfer of financial assets and the amount of the
respective derecognized portion of the accumulated changes in fair value originally included in
other comprehensive income directly (the financial assets involved in the transfer are financial
assets at fair value through other comprehensive income).
(b) If the financial asset is partially transferred and the transferred part meets the conditions for
derecognition, the carrying amount of the gross amount before transfer shall be allocated between
the derecognition portion and the continuing recognition portion (in this case, the retained service
asset shall be regarded as the continuing recognition part of the financial asset) according to the
respective relative fair values on the transfer date, and the difference between the following two
amounts shall be included in the current profits and losses:
① The carrying amount of the derecognized portion on the derecognition date.
② The sum of the consideration received for the derecognized portion and the amount of the
corresponding derecognized portion of the accumulated changes in fair value originally included in
other comprehensive income (the financial assets involved in the transfer are financial assets at fair
value through other comprehensive income).
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(4) Recognition basis and measurement method of financial asset transfer (continued)
If the transfer of a financial asset does not meet the conditions for derecognition, the financial
asset shall continue to be recognized, and the consideration received shall be recognized as a
financial liability.
(5) Determination of fair value of financial assets and liabilities
The fair value of a financial asset or liability with an active market shall be determined by the
quoted price in the active market, unless the financial asset has a sell-off period for the asset itself.
For the financial assets restricted for the assets themselves, the compensation amount demanded
by market participants due to the risk of not being able to sell the financial assets on the open
market within the specified period shall be deducted from the quoted price in the active market.
Quoted prices in the active market include those for related assets or liabilities that can be easily
and regularly obtained from exchanges, dealers, brokers, industry groups, pricing or regulatory
agencies, and can represent actual and recurring market transactions on the basis of fair trade.
Financial assets initially acquired or derived or financial liabilities assumed shall be determined on
the basis of market transaction price.
The fair value of financial assets or liabilities without an active market shall be determined by
valuation techniques. At the time of valuation, the Company adopts valuation techniques that are
applicable under the current circumstances and are supported by sufficient available data and other
information, selects input values consistent with the characteristics of relevant assets or liabilities
considered by market participants in the transactions thereof, and gives priority to the use of
relevant observable input values whenever possible. If the relevant observable input value cannot
be obtained or be feasibly obtained, the unobservable input value shall be used.
Based on the expected credit loss, the Company conducts impairment accounting of financial
assets classified as those measured at amortized cost, financial assets classified as those measured
at fair value through other comprehensive income, and financial guarantee contracts and
recognizes loss reserves.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(6) Impairment of financial instruments
Expected credit loss refers to the weighted average of the credit losses of financial instruments
weighted by the risk of default. Credit loss refers to the difference between all contractual cash
flows discounted at the original effective interest rate and receivable according to the contract and
all cash flows expected to be collected by the Company, i.e. the present value of all cash shortfalls.
Among them, credit-impaired purchased or originated financial assets of the Company shall be
discounted at the credit-adjusted effective interest rate of such financial assets.
For receivables arising from transactions regulated by the income criteria, the Company uses the
simplified measurement method to measure the loss reserve according to the amount equivalent to
the expected credit loss during the entire duration.
For credit-impaired purchased or originated financial assets, only the accumulated changes in the
expected credit losses during the entire duration since the initial recognition are recognized as loss
reserves on the balance sheet date. On each balance sheet date, the amount of change in the
expected credit loss during the entire duration is included in the current gains and losses as
impairment loss or gains. Even if the expected credit loss during the entire duration on the balance
sheet date is less than that reflected in the estimated cash flow upon initial recognition, the
favorable change in the expected credit loss is recognized as impairment gains.
In addition to other financial assets adopting the above simplified measurement method and other
than the credit-impaired purchased or originated ones, the Company evaluates whether the credit
risk of relevant financial instruments has increased significantly since the initial recognition,
measures its loss reserves, and recognizes the expected credit loss and its changes respectively
according to the following circumstances on each balance sheet date:
(a) If the credit risk of the financial instrument has not increased significantly since its initial
recognition, it is in the first stage, and its loss reserve shall be measured according to an amount
equivalent to its expected credit loss over the next 12 months, and the interest income shall be
calculated according to the book balance and the effective interest rate.
(b) If the credit risk of the financial instrument has increased significantly since initial recognition but
no credit impairment has occurred, it is in the second stage, and its loss reserve shall be measured
according to an amount equivalent to its expected credit loss throughout its life, and the interest
income shall be calculated according to the book balance and the effective interest rate.
(c) If the financial instrument is credit-impaired since its initial recognition, it is in the third stage, and
the Company shall measure its loss reserve according to an amount equivalent to its expected
credit loss throughout its life, and calculate the interest income at the amortized cost and the
effective interest rate.
The increase or reversed amount of the credit loss reserve for financial instruments shall be
included in the current profits and losses as impairment loss or gains. Except for financial assets
classified as those measured at fair value through other comprehensive income, the credit loss
reserve will offset the carrying amount of the financial assets. For financial assets classified as
those measured at fair value through other comprehensive income, the Company recognizes its
credit loss reserve in other comprehensive income without reducing its carrying amount presented
in the balance sheet.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(6) Impairment of financial instruments (continued)
In the previous accounting period, the Company measured the loss reserve, the amount equivalent
to the expected credit loss of the financial instruments throughout their life. However, on the
balance sheet date of the current period, the financial instrument no longer conforms to the
situation of significant increase in credit risk since initial confirmation; on the balance sheet date
of the current period, the Company has measured the loss reserve of the financial instruments, the
amount equivalent to the expected credit loss in the next 12 months, and the reversed amount of
the loss reserve thus formed is included in current profits and losses as impairment profit.
(a) Significant increase in credit risk
In order to determine whether the credit risk of financial instruments has increased significantly
since the initial recognition, the Company uses the available reasonable and based forward-
looking information and compares the risk of default of financial instruments on the balance sheet
date with the risk of default on the initial confirmation date. When the Company applies
provisions on depreciation of financial instruments to financial guarantee contracts, the initial
recognition date shall be regarded as the date when the Company becomes a party to make
irrevocable commitments.
For the assessment of whether the credit risk has increased significantly, the Company will
consider the following factors:
① According to whether the actual or expected debtor's operations results have changed
significantly;
② Whether the regulatory, economic, or technological environment of the debtor has undergone
significant adverse changes;
③ Whether the following items have changed significantly: the value of collateral as debt
mortgage, or the guarantee provided by a third party, or the quality of credit enhancement; these
changes will reduce the debtor’s economic motivation to repay the loan within the time limit
stipulated in the contract and could impact the probability of default;
④ Whether the debtor's expected performance and repayment behavior have changed
significantly;
⑤ Whether the Company's credit management methods for financial instruments have changed,
etc.
If, on the balance sheet date, the credit risk of the financial instrument is judged to be low by the
Company, the Company assumes that the credit risk of the financial instrument has not increased
significantly since the initial recognition. The financial instrument will be deemed to have lower
credit risk under the following circumstances: the default risk of the financial instrument is lower;
the borrower has a strong capacity to fulfill its contractual cash flow obligations in a short time;
furthermore, even if there are adverse changes in the economic situation and operating
environment for a long period of time, it may not necessarily reduce the borrower’s ability to
fulfill its contractual cash flow obligations.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(6) Impairment of financial instruments (continued)
(b) Financial assets with depreciation of credit
If one or more events have adverse effects on the expected future cash flow of a financial asset, the
financial asset will become a financial asset that has suffered credit impairment. The following
observable information can be regarded as evidence of credit impairment of financial assets:
① The issuer or debtor is in serious financial difficulty;
② The debtor breaches the contract, such as default or overdue payment of interest or principal, etc.;
③ The creditor gives concessions to the debtor due to economic or contractual considerations related to
the debtor's financial difficulties; the concessions will not be made under any other circumstances;
④ There is a great possibility of bankruptcy or other financial restructuring of the debtor;
⑤ The issuer or debtor has financial difficulties, resulting in the disappearance of the active market for
the financial assets;
⑥ Purchasing or generating a financial asset with a large discount, which reflects the fact of credit loss.
Credit impairment of financial assets may not be caused by separately identifiable events but may be
caused by the combined effect of multiple events.
(c) Determination of expected credit loss
The expected credit losses of financial instruments are assessed individually and collectively. During the
assessment of the expected credit losses, the Company will take into account reasonable and reliable
information about past events, the current situation, and the future economic situation forecast.
The Company divides financial instruments into different combinations on the basis of common credit
risk characteristics. Common credit risk characteristics adopted by the Company include: financial
instrument type, credit risk rating, aging combination, overdue aging combination, contract settlement
cycle, debtor's industry, etc. To understand the individual evaluation criteria and combined credit risk
characteristics of relevant financial instruments, please refer to the accounting policies of relevant
financial instruments for details.
The Company adopts the following methods to determine the expected credit losses of relevant financial
instruments:
① In terms of financial assets, credit loss is equivalent to the present value of the difference between the
contract cash flow that the Company shall receive and the expected cash flow.
② In terms of the financial guarantee contract, credit loss is equal to the expected amount of payment
made by the Company to the holder of the contract for credit loss incurred, less the present value of the
difference between the amount expected to be collected from the holder of the contract, the debtor, or
any other party.
③ If, on the balance sheet date, a financial asset has suffered credit impairment, but one does not
purchase or generate a financial asset that has suffered credit impairment, the credit loss is equivalent to
the difference between the book balance of the gross amount and the present value of the estimated
future cash flow discounted at the original actual interest rate.
Factors reflected in the Company's method of predicting credit losses by quantitative finance tools
include: unbiased probability weighted average amount determined by evaluating a series of possible
results; time value of money; reasonable and reliable information about past events, current situation and
future economic situation forecast that can be obtained on the balance sheet date without unnecessary
extra costs or efforts.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(6) Impairment of financial instruments (continued)
(d) Write-off of financial assets
If the Company cannot reasonably expect the contract cash flow of the financial asset to be fully or
partially recovered, the book balance of the gross amount will be written off directly. This write-off
constitutes the derecognition of relevant financial assets.
(7) Offset of financial assets and financial liabilities
In the balance sheet, financial assets and financial liabilities are shown separately without offsetting
each other. However, if the following conditions are met at the same time, the net amount after
offset will be listed in the balance sheet:
(a) The Company has the legal right, which is currently enforceable, to offset the confirmed amount;
The Company plans to settle on a net basis or realize the financial assets and settle the financial
(b)
liabilities at the same time.
For the determination method and accounting treatment method of the Company's expected credit
loss on notes receivable, please refer to 11(6) of Note III Impairment of financial instruments.
If sufficient evidence of expected credit loss cannot be evaluated at a reasonable cost at the level of
a single instrument, the Company will refer to the experience of historical credit loss, combine the
current situation and judgment on the future economic situation, divide notes receivable into several
combinations according to the characteristics of credit risk, and calculate expected credit loss on the
basis of combinations.
For the determination method and accounting treatment method of the Company's expected credit
loss on accounts receivable, please refer to 11(6) of Note III Impairment of financial instruments.
As for the accounts receivable, if there is objective evidence that the Company will not be able to
recover the money according to the original terms of the accounts receivable, the Company will
separately determine its credit loss.
If sufficient evidence of expected credit loss cannot be assessed at a reasonable cost at the level of
single instrument, the Company will divide the accounts receivable into several combinations
according to the credit risk characteristics and calculate the expected credit loss on the basis of the
combinations (with reference to the experience of historical credit loss and in combination with the
current situation with the judgment of the future economic situation)
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
Accounts receivable classified as those measured at fair value through other comprehensive
income, with a maturity of i) less than one year (including one year) from the initial recognition
date, are listed as receivables financing; or ii) more than one year from the initial recognition date,
are listed as other debt investments. For the relevant accounting policies, please refer to 11(6) of
Note III Impairment of financial instruments.
For the determination method and accounting treatment method of the Company's expected credit
loss of other receivables, please refer to 11(6) of Note III Impairment of financial instruments.
For other receivables for which there is objective evidence that the Company will not be able to
recover the amount according to the original terms of the receivables, the Company will separately
determine its credit loss.
If sufficient evidence of expected credit loss cannot be evaluated at a reasonable cost at the level
of a single instrument, the Company will refer to the experience of historical credit loss, combine
the current situation and judgment on the future economic situation, divide other receivables into
several combinations according to the characteristics of credit risk, and calculate expected credit
loss on the basis of combinations.
(1) Classification of inventories
Inventories refer to, among other things, finished products or goods held by the Company for sale
in its daily activities, work in progress in production, materials, and supplies consumed in the
production or provision of labor services. Inventories mainly include but are not limited to raw
materials, work in progress, finished goods, and turnover materials.
(2) Valuation method for inventories shipped in transit
When acquired, inventory is initially measured at cost, including purchase costs, processing costs,
and other costs. Inventories are shipped in transit by the weighted average method.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
Basis for determining the net realizable value of inventories and accrual method for inventory
(3)
valuation allowance
After conducting a comprehensive counting at the end of the period, inventory valuation
allowance shall be accrued or adjusted based on whichever is lower of the cost and net realizable
value of the inventories. For inventories of goods directly used for sale, such as finished goods,
merchandise inventories and materials for sale, in the normal production and operations process,
the net realizable value is determined by the amount of the estimated Sales expenses of the
inventory less the estimated sales cost and relevant taxes and fees; for material inventories that
need to be processed, in the normal production and operations process, the net realizable value is
determined by the amount of the estimated selling expenses of finished products produced less the
estimated cost occurred at the time of completion, the estimated selling expenses and related taxes;
for inventories held for the execution of sales contracts or labor contracts, the net realizable value
is calculated on the basis of the contract price, and if the quantity of inventories held is more than
the quantity specified in sales contracts, the net realizable value of excess inventories is calculated
based on the general sales price.
At the end of the period, inventory valuation allowance is accrued according to individual
inventory items; but for a large number of inventories with lower unit prices, inventory valuation
allowance is accrued according to inventory category; for inventories related to the product series
produced and sold in the same region with the same or similar end use or purpose, which is
difficult to measure separately from other items, thus inventory valuation allowance is accrued and
combined with other items.
If the influencing factors of the write-down of inventory value have disappeared, the amount
written-down is recovered and reversed to the amount of inventory valuation allowance already
accrued, and the amount reversed is included in current profits and losses.
(4) Inventory system
The Company adopts a perpetual inventory system for inventory management.
(5) Amortization method of turnover materials
The Company's turnover materials are amortized by the one-time amortization method.
A contract asset shall be recognized if the Company has transferred the goods to the customer and
has the right to receive a consideration depending on other factors than the passage of time. The
right of the Company to unconditionally receive the considerations from customers (i.e., only
depending on the passage of time) is listed independently as receivables.
For the determination method and accounting treatment method of the Company’s expected credit
loss on contract assets, please refer to 11(6) of Note III Impairment of financial instruments.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(1) Criteria for classification as being held for sale
The Company recognizes non-current assets or disposal groups that meet both of the following
conditions as components held for sale:
① They can be sold immediately under the current status according to the practice of selling such
assets or disposal groups in similar transactions;
② The sale is likely to occur, that is, the Company has made a resolution on the sale plan, obtained
the approval from the regulatory authorities (if applicable), and obtained a confirmed purchase
commitment that the sale is expected to be completed in one year.
The confirmed purchase commitment refers to a legally binding purchase agreement concluded by
and between the Company and another party, which contains important terms such as transaction
price, time and sufficiently severe penalty for breach of contract, so that there will be little possibility
of major adjustments to or cancellation of the agreement.
(2) Accounting treatment for held-for-sale assets
The Company shall not depreciate or amortize non-current assets or disposal groups held for sale. If
the carrying amount is higher than the amount of fair value net of selling expenses, the former shall
be written down to the latter. The amount written down shall be recognized as asset impairment loss
and included in the current profit and loss, and the impairment allowance for assets held for sale shall
be accrued at the same time.
The non-current asset or disposal group classified as being held for sale on the date of acquisition
shall be initially measured at whichever initially measured amount is lower under the assumption that
it is not classified as being held for sale and the amount of fair value net of selling expenses.
The above principles are applicable to all non-current assets, except Investment property
subsequently measured by the fair value model, biological assets measured by the amount of fair
value net of selling expenses, assets formed by employee compensation, deferred income tax assets,
financial assets regulated by the relevant accounting standards of financial instruments, and rights
arising from insurance contracts regulated by the relevant accounting standards of insurance
contracts.
For the determination method and accounting treatment methods of the Company’s expected
credit loss of debt investments, please refer to 11(6) "Impairment of financial instruments" under
Note III.
For the determination method and accounting treatment method of the Company's expected credit
loss on long-term receivables, please refer to 11(6) of Note III Impairment of financial instruments.
If sufficient evidence of expected credit loss cannot be evaluated at a reasonable cost at the level of a
single instrument, the Company will refer to the experience of historical credit loss, combine the
current situation and judgment on future economic situations, divide long receivables into several
combinations according to the characteristics of credit risk, and calculate expected credit loss on the
basis of combinations.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(1) Recognition of initial investment cost
(a) Long-term equity investment formed by business combination
For details on accounting policies, please refer to "6 accounting treatments for business
combinations involving enterprises under and not under common control" under Note III.
(b) Long-term equity investment acquired by other means
For long-term equity investment acquired by cash payment, the actual acquisition price is
recognized as initial investment cost. The initial investment cost includes expenses, taxes, and
other necessary expenses directly related to the acquisition of the long-term equity investment.
For long-term equity investment acquired by issuing equity securities, the fair value of equity
securities issued is recognized as the initial investment cost; the transaction costs arising from
issuing or acquiring the own equity instruments of the acquirer will be offset from the equity in
directly attributable transactions.
Provided that the non-monetary asset exchange contains commercial substance and the fair value
of the assets received or assets surrendered can be reliably measured, the initial investment cost
of the long-term equity investment received with non-monetary assets is determined based on the
fair value of the assets surrendered, except that there is conclusive evidence that indicates that
the fair value of assets received is more reliable. For non-monetary assets that do not satisfy the
above condition, the carrying amount of assets surrendered and related taxes and fees payable are
recognized as the initial investment cost of the long-term equity investment.
The initial investment cost of a long-term equity investment acquired by debt restructuring is
determined on the basis of fair value.
For methods of impairment test and accrual of provision for impairment for long-term equity
investments, please refer to "28 Impairment on long-term assets" under Note III.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(2) Subsequent measurement and recognition of profit and loss
(a) Cost method
The long-term equity investment by which the Company exercises control over the investee is
accounted for by the cost method and measured at the initial investment cost. When the long-term
equity investment is added or recovered, its cost should be adjusted thereby.
In addition to the actual payment or the cash dividends or profits included in the consideration that
have been declared but not yet paid when acquiring the investment, the Company recognizes the
investment income for the period the investee's cash dividends or profits attributable to the Company
will be recorded in gains from investment for the period.
(b) Equity method
The long-term equity investments made by the Company in affiliates and joint ventures are accounted
for using the equity method. Among them, the portion of equity investments in affiliates, held
indirectly through venture capital, mutual funds, trusts, or similar entities, including investment-
linked insurance funds, are measured at fair value through profit or loss.
The difference between the higher initial cost of the long-term equity investment and the fair value
share of identifiable net assets of the investee enjoyed in the investment is not used to adjust the
initial investment cost of the long-term investment; the difference between the lower initial
investment cost and the higher fair value share of identifiable net assets of the investee enjoyed at the
time of conducting the investment is included in current profits and losses.
After the Company acquires a long-term equity investment, the investment income and other
comprehensive income should be recognized respectively based on the Company's share in the net
profits and loss and other comprehensive income realized by the investee, and the carrying amount of
the long-term equity investment should be adjusted accordingly; the Company's share in the profits or
cash dividends declared by the investee should be calculated, and the carrying amount of the long-
term equity investment should be reduced accordingly; the carrying amount of the long-term equity
investment should be adjusted based on changes in owners' equity of the investee other than net
profits and loss, other comprehensive income, and profit distribution, and included in owners' equity.
Before the Company recognizes its share in the net profits and loss of the investee, the net profits of
the investee are adjusted based on the fair value of the identifiable assets of the investee as at the
acquisition of the investment. Any unrealized profit and loss from internal transactions between the
Company and its affiliates or joint ventures attributed to the Company based on the Company's, will
be offset, and the investment profit and loss is recognized thereon.
When the Company recognizes its share in the losses incurred by the investee, the Company should,
firstly, offset the carrying amount of the long-term equity investment. Then, if the carrying amount of
the long-term equity investment is insufficient for the offset, the investment loss continues to be
recognized, and the carrying amount of long-term receivable items is offset, subject to other carrying
amounts of the long-term equity constituting the net investment in the investee. Finally, after the
above-mentioned treatment, if the Company still bears additional obligations in accordance with the
investment contract or agreement, the provisions are recognized according to the estimated liabilities
and included in the current investment losses.
If the investee realizes profit in the future period, the Company shall, after deducting the unconfirmed
loss share, conduct the process in the reverse order of the above to write down the book balance of
the recognized estimated liabilities and recover other long-term equity that substantially constitutes
net investment of the investee and the carrying amount of the long-term equity, and then recover the
recognition of the profit as return on investment.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(3) Conversion accounting treatment of long-term the equity investments
(a) Accounting treatment for the transfer from fair value measurement to equity method
For an equity investment, originally held by the Company without control, joint control or significant impact
on the investee that is accounted for based on the financial instrument recognition and measurement standards,
if as a result of additional investment or otherwise, the equity investment enables the Company to exercise
significant impact on or joint control (rather than control) over the investee, the sum of the fair value of the
originally held equity investment determined under the Accounting Standards for Business Enterprises No. 22
- Recognition and Measurement of Financial Instruments and the new investment cost should be deemed as
the initial cost of the investment accounted for using equity method.
The difference between the lower initial investment cost accounted for using the equity method and the higher
share of the fair value of the identifiable net assets of the investee as at the date of the additional investment
calculated based on the new shareholding percentage (%) after the additional investment is made, shall be
used to adjust the carrying amount of the long-term equity investment and included in the non-operating
income for the period.
(b) Transfer from fair value measurement or equity method to cost method
For an equity investment, originally held by the Company without control, joint control or significant impact
on the investee that is accounted for based on the financial instrument recognition and measurement standards,
or a long-term equity investment originally held by the Company in an affiliate or joint venture, if as a result
additional investment or for other reasons, the investment enables the Company to exercise control over an
investee that is not under the common control with Company, the sum of the carrying amount of the originally
held equity investment and the new investment cost should be should be the initial cost of the investment
accounted for using cost method in preparation of the individual financial statements of the Company.
The other comprehensive income recognized in equity investments using the equity method before the date of
acquisition is accounted for, when the investment is disposed of, on the same basis as those the investee
adopted directly to dispose of the underlying assets or liabilities.
If the equity investment held before the acquisition date is subject to the accounting treatment under the
relevant provisions of the Accounting Standards for Business Enterprises No. 22 - Recognition and
Measurement of Financial Instruments, the cumulative changes in fair value originally included in other
comprehensive income should be transferred to the profit or loss for the period when the investment is
accounted for using the cost method.
(c) Transfer from equity method to fair value measurement
If the Company loses joint control or significant impact on the investee due to the disposal of part of the
equity investment or otherwise, the equity remaining after the disposal should be accounted for under the
Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial
Instruments, and the difference between the fair value and carrying amount as at the date of losing the joint
control or significant impact should be included in current profits and losses.
Other comprehensive income recognized for the original equity investment accounted for using equity method
should be accounted for on the same basis as the direct disposal of the underlying assets or liabilities by the
investee when the equity method is terminated.
(d) Transfer from cost method to equity method
Where the Company loses control over the investee due to the disposal of part of the equity investment or
otherwise, if the equity remaining after the disposal by which the Company can exercise joint control or
significant impact on the investee in preparation of the individual financial statements of the Company, the
investment will be accounted for using the equity method, and such remaining equity will be adjusted as if it
were accounted for using the equity method from the time when it is acquired.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(3) Conversion accounting treatment of long-term equity investments (continued)
(e) Transfer from cost method to fair value measurement
If the Company loses control over the investee due to the disposal of part of the equity investment
or otherwise, the equity remaining after the disposal by which the Company cannot exercise joint
control or significant impact on the investee should be accounted for based on the Accounting
Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial
Instruments, in preparation of the individual financial statements of the Company, and the
difference between the fair value and carrying amount as at the date of losing the control should be
included in current profits and losses.
(4) Disposal of long-term equity investments
When a long-term equity investment is disposed of, the difference between the carrying amount of
the long-term equity investment and the actual acquisition price shall be included in current profits
and losses. For a long-term equity investment accounted for using the equity method, when the
investment is disposed of, the part originally included in other comprehensive income should be
accounted for in the corresponding proportion and on the same basis as the direct disposal of the
underlying assets or liabilities by the investee.
When the terms, conditions, and economic influence of transactions of the equity investment of the
subsidiary conform to one or more of the following, accounting for multiple transactions is treated
as a package transaction:
(a) These transactions are made simultaneously or with consideration of influence on each other;
(b) These transactions can only achieve a complete business outcome when they are accounted for
collectively;
(c) The occurrence of a transaction depends on the occurrence of at least one of the other transactions;
(d) A transaction is uneconomical individually, but is economical when considered collectively with
other transactions.
When an enterprise loses control over the original subsidiary due to disposal of part of the equity
investment or other reasons, if the transactions do not belong to a package transaction, the
accounting treatment of individual financial statements and consolidated financial statements should
be distinguished as follows:
(a) In the individual financial statements, the disposed equity should be accounted for in accordance
with the Accounting Standards for Business Enterprises No. 2 - Long-Term Equity Investment;
meanwhile, the remaining equity should be recognized as long-term equity or other related financial
assets based on its carrying amount. If the remaining equity after disposal can be used to exercise
common control or significant influence on the original subsidiary, it shall be accounted for in
accordance with the relevant provisions on the conversion of the cost method into the equity
method.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(4) Disposal of long-term equity investments (continued)
(b) In the consolidated financial statements, the remaining equity should be remeasured in accordance with
its fair value on the date of loss of control. The difference between the sum of the consideration acquired
from the disposal of the equity and the fair value of the remaining equity, less the share of net assets of
the original subsidiary that should be enjoyed in accordance with the original shareholding ratio from the
date of acquisition, is included in the current profit and loss of the period in which loss of control
occurred. Other comprehensive income related to the original subsidiary's equity investment should be
converted into current return on investment when control is lost. The Company shall disclose in the notes
the fair value of the remaining equity after disposal on the date of loss of control and the amount of
relevant gains or losses arising from the disposal remeasured based on the fair value.
If the transactions of disposal of equity investment in a subsidiary until the loss of control are a package
transaction, the accounting treatment of individual financial statements and consolidated financial
statements should be distinguished as follows:
(a) In the individual financial statements, the difference between each disposal price and the carrying
amount of the long-term equity investment corresponding to the disposed equity before the loss of
control is recognized as other comprehensive income, and transferred to the current profit and loss of the
period in which the loss of control occurred;
(b) In the consolidated financial statements, the difference between each disposal price and the disposal of
investment corresponding to the share of the net assets of the subsidiary before the loss of control is
recognized as other comprehensive income, and transferred to the current profit and loss of the period in
which the loss of control occurred.
(5) Criteria for judgment of joint control and significant impact
If the Company exerts joint control over an arrangement with other participants in accordance with the
relevant agreement, and decision on activities that has a significant impact on the return of the
arrangement requires the unanimous consent of the participants sharing the control, the Company and
other participants will be deemed to have joint control over the arrangement - a joint venture
arrangement.
If a joint venture arrangement is entered into through an independent entity, and the Company has rights
over the net assets of the independent entity based on the relevant agreements, the independent entity
shall be deemed as a joint venture and accounted for using the equity method. If based on the relevant
agreement, the Company does not have rights to the net assets of the individual entity, the individual
entity shall be deemed as a joint operation, and the items related to the share of interests in the joint
operation should be recognized and accounted for in accordance with the provisions of relevant
Accounting Standards for Business Enterprises.
Significant impact means the investor’s power to participate in the decision-making of the financial and
operating policies of the investee, but by which the investor cannot control or commonly control together
with other parties the formulation of the policies. Significant impact on the investee will be determined
based on one or more of the cases with reference to all facts and conditions:
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
The Company's investment property means the property held for the purpose of earning rent or
capital appreciation, or both, including the land use rights that have been leased, the land use
rights that are held for transfer upon appreciation, and the leased buildings. In addition, for the
vacant buildings held by the Company for the purpose of leases, if the Board of Directors makes a
written resolution that expressly indicates that the buildings will be used for leases and the
intention of holding will not change in a short-term, the building will also be reported as
investment property.
An investment property of the Company will be recorded at its cost that comprises i) in case of a
purchased investment property, the purchase price, relevant taxes, and other expenses directly
attributable to the asset; or ii) in case of a self-constructed investment property, the necessary
expenses incurred before the asset is constructed to reach its intended serviceable state.
The Company adopts the cost model for subsequent measurement of investment property. For the
purpose of depreciation or amortization method, the same amortization policy adopted for
buildings as fixed assets and land use rights as intangible assets is used.
When the purpose of an investment property is changed to self-use, the Company shall convert the
investment property into a fixed asset or intangible asset from the date of change. When the
purpose of a self-used property is changed to earning rent or capital appreciation, the Company
will convert the fixed asset or intangible asset into an investment property from the date of change.
When such a conversion occurs, the carrying amount before the conversion shall be used as the
recorded value after the conversion.
When an investment property is disposed of, or when it permanently withdraws from use and no
economic benefit is expected to be obtained from the disposal of it, the investment property shall
be derecognized. The disposal income from the sale, transfer, scrapping, or damage of an
investment property, net of its carrying amount and related taxes and fees, is recognized in current
profits and losses.
For methods of impairment test and accrual of provision for impairment of investment property,
please refer to "28 Impairment on long-term assets" under Note III.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(1) Recognition criteria for fixed assets
Fixed assets mean tangible assets held for the purpose of producing goods, rendering services, leases or
operation management, whose service life is more than one fiscal year. Fixed assets satisfying the
following conditions are recognized:
(a) The economic benefits associated with the fixed assets are likely to flow into the enterprise;
(b) The cost of the fixed asset can be measured in a reliable way.
The Company's fixed assets are classified into buildings, machinery and equipment, office and
electronic equipment, transportation vehicles, and fixed assets renovation in line with capitalization
conditions. Where each component of a fixed asset with a different service life provides economic
benefits to the Company in different ways and applies different depreciation rates, it is recognized as a
single fixed asset.
Fixed assets are initially measured at cost. The cost of purchasing fixed assets includes the purchase
price, related taxes, and other expenses attributable to the fixed asset before it is ready for the intended
use, such as the expenses on transportation, handling, installation and professional services, etc. When
determining the cost of fixed assets, discard expenses should be considered. Subsequent expenditures
related to fixed assets that satisfy the recognition criteria of fixed assets are included in the cost of fixed
assets; otherwise, they are recognized in profit and loss in the period in which they arise.
Fixed assets are depreciated by the straight-line method. The depreciation rate of various fixed assets is
determined according to the estimated service life and estimated residual value (the estimated residual
value is 0-10% of the gross amount). The depreciation rate of classified fixed assets is as follows:
Estimated Service Annual
Asset Category
Life Depreciation Rate
Houses and buildings 20-50 years 1.8%-5%
Machinery equipment 5-15 years 6%-20%
Office and electronic equipment 2-5 years 18%-50%
Transportation equipment 3-5 years 18%-33.33%
Power stations 20-25 years 3.8%-4.75%
Others 4-5 years 18%-25%
Fixed assets renovation is amortized evenly over the benefit period.
All fixed assets are subject to depreciation, except for fixed assets that have been fully depreciated and
continue to be used, and the land that is priced and recorded separately. Fixed assets are depreciated on
a monthly basis. Fixed assets added are not depreciated in the current month when being added but
from the following month; fixed assets reduced are still depreciated in the current month when being
reduced, and no depreciation is made from the following month. Fixed assets that are not profitable for
the Company or not used temporarily (other than seasonally deactivated) are recognized as idle fixed
assets. The estimated life expectancy and depreciation rate of idle fixed assets should be reestimated,
and depreciation is directly included in the current profit and loss.
The methods for impairment testing and accrual of impairment provisions of fixed assets are detailed in
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
Construction in progress refers to the necessary expenses incurred by the Company for the purchase and
construction of fixed assets or investment property before being ready for the expected usable status,
including engineering materials costs, labor costs, related taxes and fees, borrowing costs that should be
capitalized and indirect costs that should be apportioned. Construction in progress is accounted for
separately according to individual projects.
After the construction in progress is ready for its intended use, it must be transferred to fixed assets or
investment property, whether the final accounting procedures are completed or not.
The methods for impairment testing and accrual of impairment provisions of construction in progress are
detailed in 28 "Long-term Asset Impairment" under Note III.
Borrowing costs refer to interest and other related costs incurred by the Company as a result of borrowings,
including interest on borrowings, amortization of discounts or premiums, ancillary expenses, and exchange
differences arising from foreign currency borrowings.
Borrowing costs that can be directly attributable to the acquisition, construction, or production of assets
eligible for capitalization are capitalized and included in the relevant asset cost. Other borrowing costs are
recognized as expenses in the period in which they are incurred, and are included in the current profit and
loss. Assets eligible for capitalization refer to fixed assets, investment property, inventories, and other assets
that require a substantial period of acquisition, construction or production activities to get ready for the
intended use or sale status.
Borrowing costs become capitalized when:
The asset expenditure has occurred, including expenditure incurred in the form of cash payments, transfer of
(1) non-cash assets, or assuming interest-bearing debts for the purpose of acquisition, construction, or
production of assets that are eligible for capitalization;
(2) Borrowing costs have occurred;
The acquisition, construction, or production activities necessary to enable the assets to be ready for the
(3)
intended usable or saleable state have commenced.
When an asset that satisfied the capitalization conditions is abnormally interrupted during the process of
acquisition, construction or production and the interruption period lasts for more than three months, the
capitalization of the borrowing costs is suspended and recognized as the current expenses until the
acquisition, construction or production of the assets starts again. When an asset that satisfied the
capitalization conditions is ready for its intended use or sale, the capitalization is stopped and the borrowing
costs incurred in the future are included in the current profit and loss.
The period of capitalization refers to the period from the time when the borrowing costs start to be
capitalized to the point when the capitalization is stopped, and the period in which the borrowing costs are
suspended for capitalization is not included. During the period of capitalization, if special borrowings are
made for the acquisition, construction, or production of assets eligible for capitalization, the amount of the
interest expenses actually incurred during the current period of the special borrowings, less the amount of
interest income earned by depositing unused borrowing funds in a bank or investment income earned by
temporary investment, is recognized as the amount of capitalization. When a general loan is occupied for the
purpose of purchasing, constructing or producing assets that satisfied the capitalization conditions, the
amount of capitalization is determined according to the weighted average of the accumulated asset
expenditure exceeding the special loan portion multiplied by the capitalization rate of the general loan
occupied; the capitalization rate is determined based on the weighted average interest rate of general
borrowings.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
The Company initially measures right-of-use assets at cost. Such costs include:
(1) The initial measurement amount of lease liabilities;
(2) Lease payments made on or before the commencement date of the lease term (if a lease incentive
exists, net of the amount related to the lease incentive already taken);
(3) Initial direct costs incurred by the Company;
(4) Costs expected to be incurred by the Company to disassemble and remove the leased asset(s),
restore the premises where the leased asset(s) is/are located, or restore the leased asset(s) to the
condition agreed upon under the terms of the lease (excluding costs incurred to produce
inventory).
After the commencement date of the lease term, the Company uses the cost model for subsequent
measurement of right-of-use assets.
If it is reasonably certain that ownership of the leased asset(s) will be obtained at the end of the
lease term, the Company depreciates the leased asset(s) over its/their remaining service life. If it is
not reasonably certain that ownership of the leased asset(s) will be obtained at the end of the lease
term, the Company depreciates the leased asset(s) over the lease term or the remaining service life
of the leased asset(s), whichever is shorter. Right-of-use assets for which impairment reserves
have been accrued are depreciated in future periods at their carrying amount net of impairment
reserves, with reference to the above principles.
In accordance with the provisions of Accounting Standards for Business Enterprises No. 8 - Asset
Impairment, the Company determines whether right-of-use assets have been impaired and
accounts for the recognized impairment loss, as detailed in 28 "Long-term Asset Impairment"
under Note III.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
Intangible assets refer to the identifiable non-monetary assets, owned or controlled by the Company,
without physical form, including land use rights, intellectual property rights, and non-patented
technologies, etc.
Intangible assets are recorded at the actual cost at the time of acquisition. The service life of intangible
assets is analyzed and judged at the time of acquisition. Intangible assets with a finite service life are
amortized on the shortest of the estimated service lives, the beneficial period of the contract, and the
effective period specified by law from the time when the intangible assets are available for use. The
amortization period is as follows:
Category Amortization years
The shorter of the years of the land use rights and the operating
Land use rights
years of the Company
Patents and non-patent 10 years or the shorter of service life, beneficiary years and
technologies legally valid years
Others Beneficiary period
The Company reviews the service life and amortization method of intangible assets with limited
service life at least at the end of each year, and makes adjustments if necessary.
The methods for impairment testing and accrual of impairment provisions of intangible assets are
detailed in 28 "Long-term Asset Impairment" under Note III.
If an intangible asset is foreseen as unable to bring economic benefits to the Company, it is regarded as
an intangible asset with an indefinite service life, which will be reviewed in each accounting period. If
evidence indicates that the service life of the intangible asset is limited, then it is converted to an
intangible asset with a limited service life. Intangible assets with indefinite service lives are not
amortized.
The expenditures of the Company's internal research and development items are classified into
expenditures in the research phase and expenditures in the development phase. Research means an
original, planned survey of acquiring and understanding new scientific or technical knowledge.
Development means the application of research results or other knowledge to a plan or design to
produce new or substantially improved materials, devices, products, etc. prior to commercial
production or use.
The expenditures in the research phase of the Company's internal research and development items are
included in the current profit and loss when incurred; expenditures in the development phase are
recognized as intangible assets only when the following conditions are all satisfied:
(1) It is technically feasible to complete the intangible asset to enable it to be used or sold;
(2) There is intent to complete the intangible asset and use or sell it;
(3) The intangible assets can bring economic benefits;
(4) There are sufficient technical, financial, and other resources to support the development of the
intangible assets as well as the ability to use or sell the intangible assets;
Expenditures attributable to the development stage of the intangible asset can be measured in a reliable
(5)
way.
If the above conditions cannot all be satisfied, the expenditures are included in the current profit and
loss when incurred.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
The Company determines whether there is any sign of possible impairment of the long-term assets on
the balance sheet date. If there is any sign of impairment in a long-term asset, the Company estimates
the recoverable amount thereof based on the individual asset. If it is difficult to estimate the
recoverable amount of the individual asset, the recoverable amount of the asset is determined based on
the asset group to which the asset belongs.
The recoverable amount of an asset is determined based on the net amount of the fair value of the asset
less the disposal expenses, or the present value of estimated future cash flows of the asset, whichever is
higher.
If the measurement results of the recoverable amount indicate that the recoverable amount of the long-
term investment is lower than its carrying amount, the carrying amount of the long-term investment is
written off to the recoverable amount, and the amount written by is recognized as asset impairment
loss, which is included in current profits and losses, while provision for asset impairment is made.
Once the asset impairment loss is confirmed, it cannot be reversed in the future accounting period.
After the asset impairment loss is recognized, the depreciation or amortization expense of the impaired
assets will be adjusted accordingly in the future periods so that the adjusted carrying amount of the
asset (deducting the expected net residual value) will be systematically amortized over the remaining
service life of the asset.
For the goodwill formed by business combination and the intangible assets with indefinite service life,
an impairment test is carried out every year regardless of whether there is any indication of
impairment.
In the impairment test of goodwill, the carrying amount of goodwill is apportioned to the asset group or
asset group portfolio expected to benefit from the synergy of the business combination. When
impairment tests are conducted on underlying asset groups or asset group portfolios that contain
goodwill, impairment tests will be first conducted on the asset groups or asset group portfolios that do
not contain goodwill, provided there is any sign of impairment in the asset groups or asset group
portfolios related to the goodwill and the recoverable amount will be calculated and compared with the
relevant carrying amount to recognize the corresponding impairment loss. Further impairment tests will
be conducted on asset groups or asset group portfolios that contain goodwill, by comparing the
carrying amount of such underlying asset groups or asset group portfolios (including the part of the
carrying amount of the allocated goodwill) with their recoverable amount. If the recoverable amount of
the underlying asset group or asset group portfolio is lower than its carrying amount, the impairment
loss shall be recognized for goodwill.
Long-term deferred expenses refer to various expenses that the Company has paid, should be amortized
over the current and future periods, and whose period of amortization is more than one year, such as
the improvement expenses incurred in renting fixed assets by operating leases. Long-term deferred
expenses are amortized on a straight-line basis within the beneficial period of the expense items.
The Company recognizes as contract liabilities the part of the obligation to transfer the goods to the
customer due to received or receivable consideration from the customer.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
Employee benefits include short-term employee benefits, post-employment benefits, termination
benefits, and other long-term employee benefits provided in various forms of consideration in
exchange for service rendered by employees or compensation for the termination of employment
relationships.
(a) Short-term employee benefits
Short-term employee benefits include employee wages or salaries, bonuses, allowances and
subsidies, staff welfare, premiums or contributions on medical insurance, work injury insurance and
maternity insurance, housing funds, union running costs and employee education costs, and short-
term paid absences. During the accounting period when employees provide services, the Company
recognizes the actual short-term remuneration as liabilities, and includes it in current profits and
losses or related asset costs according to the beneficiaries of the services provided by employees.
Non-monetary benefits are measured at their fair value.
(b) Post-employment benefits
The Company classifies post-employment benefit plans as either defined contribution plans or
defined benefit plans. Defined contribution plans are post-employment benefit plans under which
the Company pays fixed contributions into a separate fund and will have no obligation to pay further
contributions; and defined benefit plans are post-employment benefit plans other than defined
contribution plans. During the Reporting Period, the Company’s defined contribution plans mainly
include basic pensions and unemployment insurance.
(c) Termination benefits
If the Company terminates the labor relationship with an employee before the labor contract expires
or offers compensation for encouraging the employee to accept the redundancies voluntarily, the
liabilities arising from compensation for the termination of labor relations with the employee are
determined, and also included in current profits and losses at the time when the Company cannot
unilaterally withdraw the termination of the labor relationship plan or redundancies proposal or the
time when the cost associated with reorganization involving payment of termination benefits is
confirmed, whichever is earlier.
(d) Other long-term employee benefits
Other long-term employee benefits refer to all employee benefits except short-term employment
benefits, post-employment benefits, and termination benefits.
For other long-term employee benefits that meet the conditions of a defined contribution plan, the
amount to be contributed shall be recognized as a liability during the accounting period when the
employee provides services to the Company, and shall be included in profit or loss for the period or
the underlying asset costs. For long-term employee benefits other than those mentioned above, on
the balance sheet date, the benefit obligations arising from the defined benefit plan shall be
attributed to the periods during which the employee provides services, and shall be included in profit
or loss for the period or the underlying asset costs.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(1) Recognition standards for estimated liabilities
An obligation related to product quality assurance, loss contracts, restructuring, and other
contingencies shall be recognized as a provision, if i) it is a current obligation of the Company, ii)
the fulfillment of this obligation is likely to result in an outflow of economic benefits, and iii) the
amount of this obligation can be reliably measured.
(2) Measurement methods for estimated liabilities
The estimated liabilities of the Company are initially measured on the basis of the best estimate of
the expenditure required to perform the relevant current obligations.
When determining the best estimate, the Company considers factors such as risks, uncertainties,
and time value of money related to contingent events. Where the time value of money has a
significant impact, the best estimate is determined by discounting the relevant future cash
outflows.
The best estimates are handled as follows:
In case there is a continuous range (or interval) of required expenditures, within which the
possibility of occurrence of various results is the same, the best estimate is determined by the
average of the middle value of the range, that is, the average of the upper and lower limits.
In case there is no continuous range (or interval) of required expenditures, or there is a continuous
range but the possibility of various results in the range is different, if the contingency involves a
single item, the best estimate is determined based on the most probable amount; if a contingency
involves multiple items, the best estimate is determined based on various possible outcomes and
associated probabilities.
If all or part of the expenses required by the Company to settle the estimated liabilities are
expected to be compensated by a third party, the compensation amount is separately recognized as
an asset when it is basically confirmed to be received, and the recognized compensation amount
should not exceed the carrying amount of the estimated liabilities.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
The Company initially measures lease liabilities at the present value of the lease payments
outstanding on the commencement date of the lease term. When calculating the present value of
lease payments, the Company uses the interest rate implicit in the lease as the rate of discount. If
the implicit interest rate of the lease cannot be determined, the incremental loan interest rate of the
Company shall be used as the discount rate. Lease payments include:
The amount of fixed payments, net of amounts related to lease incentives, and the amount of
(a)
substantive fixed payments;
(b) Variable lease payments that depend on indexation or ratio;
The exercise price of the purchase option, when applicable, if the Company is reasonably certain
(c)
that the option will be exercised;
(d) The amount required to be paid to exercise the option to terminate the lease if the lease term
reflects that the Company will exercise the option to terminate the lease;
(e) The estimated amount payable is based on the secured residual value provided by the Company.
The Company calculates the interest expenses of lease liabilities for each period within the lease
term at a fixed rate of discount and includes them in profit or loss for the current period or cost of
the related assets.
Variable lease payments that are not included in the measurement of lease liabilities should be
included in profit or loss for the current period or cost of the related assets when they are actually
incurred.
The share-based payments of the Company are mainly equity-settled share-based payments and
are only allow to be exercised by employees after the completion of their services in the waiting
period. On each balance sheet date in the waiting period, based on the best estimate of the number
of vesting equity instruments, the services obtained in the current period are included in the
relevant costs or expenses and capital reserve based on the fair value at the grant date of the equity
instruments.
The fair value of equity instruments is determined by the external appraiser or management based
on the binomial distribution method. The best estimate of the vesting equity instrument is
determined by the management based on historical statistics on the vesting weights and turnover
rates on the balance sheet date.
Equity-settled share-based payments are measured based on the fair value of the equity
instruments granted to employees. In case the vesting right is available immediately after the
grant, it is included in the relevant cost or expense based on the fair value of the equity instrument
on the grant date, and the capital reserve is increased accordingly. In case the vesting right is
available after the completion of services in the waiting period or satisfaction of stipulated
performance conditions, on each balance sheet day during the waiting period, the services
acquired in the current period are included into the relevant costs or expenses and capital reserve
on the basis of the best estimate of the number of feasible equity instruments and at the fair value
of the date on which the equity instruments are granted. No adjustments are made to the identified
related costs or expenses or total owners' equity after the vesting date.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(1) General principles applied to revenue recognition
The Company shall recognize the revenue according to the transaction price assigned to the
performance obligation when any due performance obligation is fulfilled (namely when the client
obtains control over relevant commodities or services). Performance Obligation means that, under
the contract, the Company promises to transfer commodities or services that can be clearly
distinguished to the client. "Obtain the control over relevant commodities or services" refers to the
ability to completely dominate the use of commodities and obtain almost all economic benefits.
From the contract’s effectiveness date, the Company shall evaluate the contract, recognize each
single performance obligation included, and determine whether each performance obligation is
fulfilled within a certain period or at a time point.
When any of the following conditions is met for a performance obligation to be fulfilled within a
certain period, the Company shall recognize corresponding revenue within the period according to
the performance schedule:
While fulfilling the due obligation in the Company, the client obtains and consumes the resulting
(a)
economic benefit;
(b) The client is able to control the commodities under construction during the Company’s fulfillment;
(c) Commodities generated from the Company’s fulfillment possess irreplaceable purpose, and the
Company has the right to charge all fulfilled performance obligations within the whole contract
period; otherwise, the Company shall recognize corresponding revenue when the client obtains
control over relevant commodities or services.
For any performance obligation with a certain period, the Company shall apply the output
method/input method to determine the appropriate fulfillment schedule based on the specific nature
of commodities and services. The output method is to determine the fulfillment schedule according
to the value of commodities transferred to the client (while the input method is to determine the
fulfillment schedule according to the Company’s input to fulfill the performance obligation). If the
fulfillment schedule cannot be reasonably determined and the Company’s costs are predicted to be
compensated, corresponding revenue shall be recognized based on the specific cost amount until the
fulfillment schedule can be reasonably determined.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(2) Specific revenue recognition method
(a) Product sales contract
According to the contract terms, for the selling of products subject to performance obligation fulfillment
conditions at a time point and other products, the Company shall recognize the realization of sales revenues
when the client obtains control over relevant commodities or services according to the delivery condition
agreed in the sales contract upon signing by the client after commodities are received.
(b) Technical service contract
If revenues are recognized within a certain period based on the technical service contract, corresponding
revenues shall be recognized according to the performance schedule.
(c) Royalty income
Accounted for according to the time and method of charging as stipulated in the relevant contract or
agreement.
(d) Revenue from photovoltaic power stations
a. Centralized power stations: Power stations are connected to the grid. The revenue is recognized based on
the documents on power supply provided by the business departments of the Company, after the duration of
continuous and trouble-free operation specified by the electric power company is met. b. Distributed power
stations: Power stations are connected to the grid. The revenue is recognized based on the documents on
settlement provided by the business departments of the Company.
(3) Principles of handling revenues from specific transactions
(a) When the client obtains the control over relevant commodities, corresponding revenue shall be recognized
according to the consideration amount (excluding the amount predicted to be returned due to sales return)
predicted to be duly charged from transferring commodities to the client, and corresponding liabilities shall be
recognized based on the amount predicted to be returned due to sales return. Meanwhile, when commodities
are sold, the balance through deducting the predicted cost for taking back commodities from the carrying
amount of commodities predicted to be returned (including the impairment of value of returned commodities)
shall be accounted for under "Returned Commodities Cost Receivable".
(b) For the contract containing the quality assurance article: it’s required to evaluate whether the quality assurance
involves any separable service except for the promise (to the client) that commodities conform to established
standards. If the Company provides additional service, it shall be deemed as a single performance obligation
and subject to the accounting treatment according to relevant revenue criteria provisions; otherwise, the
quality assurance liability shall be subject to the accounting treatment according to the accounting criteria
provisions on Contingency.
(c) For the sales contract containing the client’s additional purchase option: the Company shall evaluate whether
the option provides the client with any significant right. If any, it shall be deemed as a single performance
obligation, and the transaction price shall be apportioned to the performance obligation, and corresponding
revenues shall be recognized when the client executes the purchase option right and obtains the control over
relevant commodities in the future or when the option becomes invalid. If the separable selling price applied to
the client’s additional purchase option right cannot be directly observed, it’s required to comprehensively
consider the difference in discounts between the client’s execution of option right and the client’s non-
execution of option right and analyze the possibility for the client to execute the option right and other relevant
information. Then, a corresponding reasonable estimate shall be made.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(3) Principles of handling revenues from specific transactions (continued)
(d) The contract licenses the IP right to the client: It’s required to evaluate whether the IP right license
constitutes any single performance obligation; if any, it is necessary to determine whether the
performance obligation fulfillment is fulfilled within a certain period or at a time point. If any IP
right license is granted to the client and royalties are charged based on the client’s actual sales or
usage, corresponding revenues shall be recognized at a later time between the following dates: the
day when the client’s subsequent selling or usage occurs; the day when the Company fulfills
relevant performance obligations.
(e) Major responsible person and agent: Based on whether the Company has control over the goods or
service before transferring it to the customer, it is determined whether the Company is the major
responsible person or an agent in the transactions. If the Company is able to control the goods or
service before transferring it to the customer, the Company shall be deemed as major responsible
person and the revenue shall be recognized at the total amount of the consideration received or
receivable; otherwise, the Company shall be deemed as an agent, and the revenue shall be
recognized at the amount of the commission or handling fee to which it expects to be entitled. The
amount of the commission or handling fee is determined by deducting the amount payable to other
relevant parties from the total amount of consideration received or receivable.
(1) Contract performance cost
For the cost resulting from performing the contract which is not included in other ASBE except
the revenue standards and meets the following conditions, the Company shall recognize it as an
asset:
(a) The cost is directly related to a current or predicted contract, including the direct labor, direct
material. and manufacturing expenses (or similar expenses), the cost borne by the client, and other
costs resulting from the contract;
The cost adds various resources that can be applied by the Company to fulfill due performance
(b)
obligations; and
(c) The cost is predicted to be recovered.
The asset shall be presented and reported in inventory or other non-current assets, which depends
on whether the amortization period exceeds a normal operating cycle during the initial recognition.
(2) Contract acquisition cost
If the incremental cost resulting from the Company’s acquisition of the contract is predicted to be
recovered, it shall be recognized as an asset as the contract acquisition cost. Increment Cost refers
to the cost that only results from the contract acquisition, like the sales commission. If the
amortization period is less than one year, it shall be included in current profit and loss.
(3) Contract cost amortization
The asset related to the contract cost shall, by adopting the same basis for the recognition of
commodities or services revenues related to the asset, be amortized during the period of fulfilling
the performance obligation or according to the fulfillment schedule and be included into current
profit and loss.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(4) Impairment of contract costs
For the asset related to the contract cost as mentioned above, if the carrying amount is higher than
the difference between the residual consideration predicted to be obtained from the Company’s
transfer of commodities related to the asset and the cost to be incurred due to such transfer,
depreciation reserves shall be calculated and withdrawn for the surplus which shall also be
recognized as the asset impairment loss.
After the provision for impairment is made, if changes in depreciation factors during previous
periods have made the above difference higher than the asset’s carrying amount, it shall be
restituted to previously established asset impairment allowances and included in current profit and
loss. However, the carrying amount of restituted assets shall not exceed the carrying amount of the
asset on the date of restitution without establishing impairment allowances.
(1) Type of change
Public grants are transfers of monetary or non-monetary assets from the public to the Group at nil
consideration. According to the grant targets stipulated in the relevant public documents, public
grants are classified into public grants related to assets and public grants related to income.
(2) Recognition of public grants
If a public grant is a monetary asset, it is measured at the amount received or receivable. If a
public grant is a non-monetary asset, it is measured at fair value. If the fair value cannot be
obtained in a reliable way, there are measured at the nominal amount (RMB 1). Public grants
measured at nominal amounts are recognized directly in the current profits and losses.
(3) Accounting treatment
Public grants related to assets offset the carrying amount of the underlying assets.
If the public grants related to income are used to compensate related costs or losses in the
subsequent period, it is recognized as deferred income and included in the current profit and loss
or offset costs in the period in which the related costs or losses are recognized; public grants used
to compensate costs or losses incurred by the enterprise shall be directly included in current profits
and losses or offset related costs. For public grants related to the day-to-day activities of the
enterprise, the R&D and VAT-related subsidies and the taxation, or operation-based incentive
public subsidies are included in other income; other public grants are written off against related
costs based on the substance of economic activities. Public grants not related to daily activities of
the Company are included in the non-operating income and expenditure. For preferential loans for
policy discounts, if the public finance department appropriates the discounted funds to the lending
bank, the borrowing cost is accounted for according to the principal of the loan and the policy
preferential interest rate, with the amount actually received as the entry value of the loan. If the
public finance department directly appropriates the interest grant funds to the Company, the grants
shall offset the related borrowing costs.
In case a recognized public grant is required to be returned, the carrying amount of the asset is
adjusted if the carrying amount of relevant assets is offset at the initial recognition; if there is
related deferred income, the book balance of deferred income is offset, and the excess is included
in the current profit and loss; and in case of other circumstances, it is directly included in current
profits and losses.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
Deferred income tax assets and deferred income tax liabilities shall be recognized based on the
difference (temporary difference) between the tax basis and carrying amount of the underlying
assets or liabilities. On the balance sheet date, the deferred income tax assets and deferred
income tax liabilities are measured based on the tax rate applicable during the period when it is
expected to recover the assets or pay off the liabilities.
(1) Basis for recognition of deferred income tax assets
The Company recognizes deferred income tax assets arising from deductible temporary
differences to the extent that it is likely to acquire taxable income that can be used to offset the
deductible temporary differences, deductible losses that can be carried forward to future years
and tax credits. However, deferred income tax assets arising from the initial recognition of assets
or liabilities in a transaction with all the following characteristics shall not be recognized: (1) the
transaction is not a business combination; and (2) the occurrence of the transaction does not
affect accounting profits or taxable income or deductible losses.
For a deductible temporary difference related to investments in affiliates, the corresponding
deferred income tax asset will be recognized if the following criteria are met simultaneously: the
temporary difference is likely to be reversed in the foreseeable future and it is likely to obtain
taxable income that can be used to offset the deductible temporary difference in the future.
(2) Basis for recognition of deferred income tax liabilities
The Company recognizes the taxable temporary differences that should be paid but are not paid
for the current and previous periods as deferred income tax liabilities. But deferred tax liabilities
do not include:
(a) Temporary differences arising from the initial recognition of goodwill;
Temporary differences arising from transactions or events that are not formed by a business
(b) combination and do not affect accounting profits or taxable income (or deductible losses) upon
their occurrence;
For taxable temporary differences related to investments in subsidiaries and associates, the
(c) timing of the reversal of the temporary differences can be controlled and the temporary
differences are unlikely to be reversed in the foreseeable future.
Deferred income tax assets and liabilities are presented on a net basis after the following
(3)
conditions are met:
(a) An enterprise has the legal right to settle current income tax assets and liabilities on a net basis;
Deferred income tax assets and liabilities relate to income taxes levied by the same taxing
authority on either the same taxable entity or different taxable entities that intend to either settle
(b) current tax assets and liabilities on a net basis, or to realize the assets and settle the liabilities
simultaneously, in each future period in which significant amounts of deferred tax assets or
liabilities are reversed.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
From the effective date of a contract, the Company assesses whether the contract is a lease or includes
any lease. If a party to the contract transfers the right allowing the control over the use of one or more
assets that have been identified within a certain period, in exchange for a consideration, such a
contract is a lease or includes a lease.
(1) Lease contract split
If a contract contains multiple single leases at the same time, the Company will split the contract, and
conduct accounting treatment of each single lease respectively.
If a contract contains both lease and non-lease parts at the same time, the Company will split the lease
and non-lease parts, conduct accounting treatment of the lease part in accordance with the accounting
standards governing leases, and conduct accounting treatment of the non-lease part in accordance with
other applicable Accounting Standards for Business Enterprises.
(2) Lease contract combination
With regard to two or multiple contracts containing leases concluded by the Company with the same
counterparty or its related parties at the same or a similar time, when any of the following conditions
is met, the contracts are combined into one contract for accounting treatment:
Two or multiple contracts are concluded based on an overall business purpose and constitute a
(a) package deal, and if they are not considered as a whole, the overall business purpose cannot be
understood.
The consideration amount of one contract among the two or multiple contracts depends on the pricing
(b)
or performance of other contracts.
(c) The rights to use assets transferred by the two or multiple contracts constitute one single lease.
(3) Accounting treatment with the Company as lessee
On the commencement date of the lease term, the Company recognises the right-of-use assets and
lease liabilities for the lease, unless it is a simplified short-term lease or low-value asset lease.
(a) Short-term leases and low-value asset leases
A short-term lease refers to a lease that does not include a purchase option and whose lease term does
not exceed 12 months. A low-value asset lease refers to a lease where the value will be low when a
single leased asset is a new asset.
The Company does not recognize the right-of-use assets or lease liabilities for the following short-
term leases and low-value asset leases. In each period within the lease term, the relevant lease
payments are included in the cost of the related assets or profit or loss for the current period on a
straight line basis or according to other systemic and reasonable methods.
Item Simplified leased asset type
Short-term lease A lease whose lease term does not exceed 12 months from the commencement
date of the lease term
Low-value asset An asset lease with a value of less than RMB 40,000 or its foreign currency
lease equivalents
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(3) Accounting treatment with the Company as lessee (continued)
The Company recognizes the right-of-use assets and lease liabilities for short-term leases and low-value
asset leases other than those mentioned above.
The accounting policies for right-of-use assets and lease liabilities are detailed in Note III. 26 and Note III.
(b)
(4) Accounting treatment with the Company as lessor
(a) Lease classification:
The Company classifies leases into finance leases and operating leases at the inception of leases. A finance
lease refers to a lease where almost all the risks and rewards related to the ownership of the leased asset(s),
are substantially transferred, regardless of whether the ownership is transferred eventually. An operating
lease refers to all leases other than finance leases.
Usually, the Company classifies a lease that meets any one or more of the following conditions as a finance
lease:
compared with the fair value of the leased asset(s) at the time the option is expected to be exercised, it can
be reasonably determined at the inception of the lease that the lessee will exercise the option.
service life of the leased asset(s).
value of the leased asset(s).
alteration.
The Company may also classify a lease that falls under any one or more of the following circumstances as a
finance lease:
borne by the lessee.
(b) Accounting treatment of finance leases
On the commencement date of the lease term, the Company recognizes the finance lease receivables for the
finance lease and derecognizes the leased asset(s) of the finance lease.
In the initial measurement of finance lease receivables, the sum of the unsecured residual value and the
present value of the lease payments receivable not yet received on the commencement date of the lease term
discounted at the interest rate implicit in the lease is the entry value of the finance lease receivables. Lease
payments receivable include:
fixed payments;
exercise the purchase option;
reflects that the lessee will exercise the option to terminate the lease;
third party that has the financial ability to perform the security provision obligation.
The received variable lease payments that are not included in the measurement of the net investment in the
lease are included in profits and losses for the current period when they are actually incurred.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(4) Accounting treatment with the Company as lessor (continued)
(c) Accounting treatment of operating leases
For each period of the lease term, the Company adopts the straight-line method or other systematic
and reasonable methods to recognize the lease receipts of the operating lease as rental income; the
Company capitalizes the initial direct expenses incurred in connection with the operating lease,
amortizes them over the lease term on the same basis as that for the recognition of the rental
income, and includes them in the current profit and loss by stage; the Company includes the
variable lease payments, obtained in connection with the operating lease that are not included in
the lease receipts, in current profits and losses when they are actually incurred.
(5) Sale and leaseback
(a) The Company as seller and lessee
If the asset transfer in a sale and leaseback transaction is a sale, the Company will measure the
right-of-use assets formed by the sale and leaseback based on the portion of the original asset’s
carrying amount that is related to the use right acquired by the leaseback, and recognize related
gains or losses only for the right transferred to the lessor. If the fair value of the sales
consideration is different from the fair value of the asset, or if the lessor does not charge the rent at
the market price, the Company will conduct accounting treatment with the sales consideration
amount below the market price as the prepaid rent, or the amount above the market price as the
additional financing provided by the lessor to the lessee; at the same time, the relevant sales gains
or losses will be adjusted based on the fair value.
If the asset transfer in a sale and leaseback transaction is not a sale, the Company will continue to
recognize the transferred asset and at the same time recognize a financial liability equivalent to the
transfer income.
(b) The Company as buyer and lessor
If the asset transfer in a sale and leaseback transaction is a sale, the Company will conduct
corresponding accounting treatment for asset purchase and apply the accounting standards
governing leases to the accounting treatment of the asset lease. If the fair value of the sales
consideration is different from the fair value of the asset, or if the Company does not charge the
rent at the market price, the Company will conduct accounting treatment with the sales
consideration amount below the market price as the pre-collected rent, or the amount above the
market price as the additional financing provided by the Company to the lessee; at the same time,
the rental receipt will be adjusted based on the market price.
If the asset transfer in a sale and leaseback transaction is not a sale, the Company will recognize a
financial asset equivalent to the transfer income.
If one party controls, commonly controls or exerts a significant influence on the other party, and
two or more parties are under the control, common control or significant influence of the other
party, they constitute related parties. Enterprises that are solely controlled by the state and do not
have any other related party relationship shall not be deemed as related parties.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
The Company will recognize a component that meets one of the following conditions, has been
disposed of or classified as being held for sale, and can be separately identified, as a component of
discontinued operation:
(1) This component represents an independent main business or a separate main operation region.
(2) This component is part of a related plan to dispose of an independent main business or a separate
main operation region.
(3) This component is a subsidiary acquired for the sole purpose of resale.
Operating profit and loss, such as impairment loss for discontinued operations and the amount
reversed, and disposal profit and loss are presented in the income statement as profit and loss of
discontinued operations.
In the balance sheet, the Company presents, independently from other assets, the held-for-sale non-
current assets or assets in held-for-sale disposal groups, and presents, independently from other
liabilities, the liabilities in held-for-sale disposal groups. The held-for-sale non-current assets or
assets in held-for-sale disposal groups and the liabilities in held-for-sale disposal groups shall not
offset each other, but shall be presented as current assets and current liabilities, respectively. In the
income statement, the Company presents the profits and losses from going concern and the profits
and losses from discontinued operations. For the discontinued operations reported in the current
period, the Company represents in the financial statements for the current period, the information
previously presented as the profits and losses from going concern as the profits and losses from
discontinued operations for the comparable accounting period. If the discontinued operations are
no longer eligible for being classified as held-for-sale categories, the Company will represent in the
financial statements for the current period, the information previously presented as the profits and
losses from discontinued operations as the profits and losses from going concern for the
comparable accounting period.
Hedge is classified as a fair value hedge, cash flow hedge or net foreign investment hedge based
on the hedging relationship.
(1) A hedging relationship qualifies for hedge accounting only if all of the following criteria are met
(a) The hedging relationship consists only of eligible hedging instruments and eligible hedged items.
(b) At the inception of the hedging relationship, there is formal designation of hedging instruments
and hedged items, and documentation of the hedging relationship and the Company’s risk
management strategies and objectives for undertaking the hedge have been prepared.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(1) A hedging relationship qualifies for hedge accounting only if all of the following criteria are met
(Continued)
(c) The hedging relationship meets the hedge effectiveness requirements.
The hedging relationship meets the hedge effectiveness requirements only if all of the following
criteria are met:
economic relationship causes opposite changes in the value of the hedging instrument and the hedged
item in the face of the identical hedged risk.
relationship.
hedged item that the Company actually hedges and the quantity of the hedging instrument that the
Company actually uses to hedge that quantity of hedged item. However, that designation shall not
reflect an imbalance between the weightings of the hedged item and the hedging instrument that would
create hedge ineffectiveness that could result in an accounting outcome that would be inconsistent with
the purpose of hedge accounting.
(2) Fair value hedge accounting
(a) Gain or loss on the hedging instrument shall be recognized in profit or loss. If the hedging instrument
hedges a non-trading equity instrument (or a component thereof) that the Company has elected to be
measured at fair value through other comprehensive income, the hedging gain or loss generated by the
hedging instrument shall be recognized in other comprehensive income.
(b) Gain or loss generated by the hedged item due to the hedged risk exposure shall be recognized in profit
or loss and shall adjust the carrying amount of the recognized hedged item that is not measured at fair
value. If the hedged item is a financial asset (or a component thereof) measured at fair value through
other comprehensive income, the hedging gain or loss on the hedged item shall be recognized in profit
or loss, and will not be required for adjustment since the carrying amount has been measured at fair
value. However, if the hedged item is a non-trading equity instrument (or a component thereof) that the
Company has elected to be measured at fair value through other comprehensive income, the hedging
gain or loss on the hedged item shall be recognized in other comprehensive income and will not be
required for adjustment, since the carrying amount has been measured at fair value.
When a hedged item represents a defined commitment that has not been unrecognized (or a component
thereof), the cumulative change in the fair value of the hedged item subsequent to its designation
caused by the hedge relationship is recognized as an asset or a liability with a corresponding gain or
loss recognized in profit or loss. When a defined commitment is made to acquire an asset or assume a
liability, the initial carrying amount of the asset or the liability is adjusted to include the cumulative
change in the fair value of the hedged item that has been recognized.
(c) If the hedged item is a financial instrument (or a component thereof) measured at amortized cost, the
adjustment made to the carrying amount of the hedged item shall be amortized based on the effective
interest rate recalculated on the amortization commencement date and recognized in current profits and
losses. This amortization can commence from the adjustment date, but not later than the time when the
hedging gain or loss adjustment is made for the termination of the hedged item. If the hedged item is a
financial asset (or a component thereof) measured at fair value through other comprehensive income,
the cumulative recognized hedging gain or loss shall be amortized in the same manner and recognized
in the profit or loss, but the carrying amount of the financial asset (or a component thereof) shall not be
adjusted.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(3) Accounting treatment of cash flow hedges
(a) The portion of the gain or loss on the hedging instrument that is determined to be an effective
hedge (i.e., the portion that is offset by the change in the cash flow hedge reserve) shall be
recognized in other comprehensive income. The amount of cash flow hedging reserves shall be
determined based on the lower of the absolute amount of the following two items:
since the commencement of the hedge. The amount of cash flow hedging reserves recognized in
other comprehensive income for each period is the change in cash flow hedging reserves for the
period.
(b) The portion of the gain or loss on the hedging instrument that is determined to be an ineffective
hedge (i.e., other gain or loss after deducting that recognized in other comprehensive income) shall
be recognized in current profits and losses.
(c) The amount that has been accumulated in the cash flow hedge reserve shall be accounted for as
follows:
in the recognition of a non-financial asset or non-financial liability, or a hedged forecast
transaction for a non-financial asset or a non-financial liability becomes a defined commitment for
which fair value hedge accounting treatment is applied, the Company shall remove that amount
from the cash flow hedge reserve previously recognized in other comprehensive income and
include it in the initial cost of the asset or the liability.
reserve previously recognized in other comprehensive income shall be reclassified from the cash
flow hedge reserve to current profits and losses in the same period or the period during which the
hedged expected future cash flows affect profit or loss.
comprehensive income is a loss and the Company expects that all or a portion of that loss will not
be recovered in one or more future periods, it shall immediately reclassify the amount that is not
expected to be recovered from other comprehensive income to current profits and losses.
(4) Hedges of a net investment in a foreign operation
Hedges of a net investment in a foreign operation, including a hedge of a monetary item that is
accounted for as part of the net investment shall be accounted for similarly to cash flow hedges:
(a) The portion of the gain or loss on the hedging instrument that is determined to be an effective
hedge shall be recognized in other comprehensive income.
When disposing of all or part of the foreign operation, the gain or loss on the hedging instrument
recognized in other comprehensive income shall be correspondingly transferred out and
recognized in current profits and losses.
(b) The portion of the gain or loss on the hedging instrument that is determined to be an ineffective
hedge shall be recognized in current profits and losses.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(5) Termination of hedge accounting
Hedge accounting will be terminated if one of the following situations occurs:
(a) The hedging relationship no longer meets the risk management objectives due to changes in risk
management objectives.
(b) The hedging instrument has expired or been sold, or the contract has been terminated or has been
exercised.
(c) The economic relationship no longer exists between the hedged item and the hedging instrument,
or the effect of credit risk starts to dominate the value changes that result from that economic
relationship.
(d) The hedging relationship no longer meets other conditions for applying hedging accounting
stipulated in this standard. In case the rebalancing of the hedging relationship is applied, the
Company shall first consider the rebalancing of the hedging relationship and then evaluate
whether the hedging relationship meets the conditions for applying hedging accounting stipulated
in this standard.
Termination of hedge accounting may affect the whole or a portion of the hedging relationship,
and when only a portion thereof is affected, hedge accounting remains applicable to the remaining
unaffected portion.
(6) Fair value selection of credit risk exposure
When credit derivative instruments measured at fair value through current profits and losses are
used to manage the credit risk exposure of a financial instrument (or a component thereof), the
financial instrument (or a component thereof) can be designated as a financial instrument
measured at fair value through current profits and losses during its initial recognition, subsequent
measurement, or when not yet recognized, with written records made simultaneously, provided
that the following criteria are met:
(a) The subject (such as the borrower or the loan commitment holder) of the credit risk exposure of
the financial instrument is consistent with the subject involved in the credit derivative;
(b) The reimbursement level of the financial instrument is consistent with that of the instrument
required to be delivered under the terms of the credit derivative.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(1) Change of accounting policies
(a) Reclassification of guarantee-based warranty expenses
Based on the Interpretation of Accounting Standards for Business Enterprises No. 18 promulgated
on December 6, 2024 by the Ministry of Finance, the guarantee-based warranty expenses shall be
included in operating cost. From January 2024, the Company started implementing such
provision, and included the guarantee-based warranty expenses in operating cost. The
implementation of such an accounting treatment provision had no impact on the retained earnings
of the earliest financial statements at the beginning of the prior reporting period. The adjustments
to relevant items in the January-June 2024 (consolidated) comparative financial statements are as
follows:
January - June 2024
Item of the income
statement Cumulative
Before change After change
impacted amount
Operating cost 70,384,382 258,176 70,642,558
Sales expenses 1,135,573 (258,176) 877,397
(2) Changes to accounting estimates
No significant change occurred to the major accounting estimates in the Reporting Period.
No previous accounting errors were identified and corrected in the Reporting Period.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
IV Taxes
In the Reporting Period, output tax was calculated at 3%, 5%, 6%, 9%, or 13% of the taxable
income of general taxpayers, and the value-added-tax was paid based on the difference after
deducting the allowance deduction of input tax in the current period. The value added-tax
payment for the Company’s directly exported goods is executed in accordance with the
regulations of "Exemption, Offset and Refund". The tax refund rate is 0%-13% during the
reporting period.
Subject to the relevant tax laws and regulations of the state and local regulations, urban
maintenance and construction tax is paid based on the proportion stipulated by the state
according to the individual circumstances of each member of the Company.
Education surcharges are paid according to the individual circumstances of each member of the
Company based on the proportion stipulated by the state in accordance with the relevant national
tax regulations and local regulations.
Property tax is paid on the houses with property rights according to the proportion stipulated by
the state in accordance with the relevant national tax regulations and local regulations.
According to Article 28 of the Enterprise Income Tax Law of the People's Republic of China, a
reduced corporate income tax rate of 15% is applied to important high-tech enterprises that the
public supports.
According to the relevant provisions of the Announcement on the Preferential Income Tax
Policies for Small and Micro Enterprises and Self-employed Businesses (Announcement No. 6
[2023] of the Ministry of Finance and the State Taxation Administration) and the Announcement
of the Ministry of Finance and the State Taxation Administration on Tax Policies for Further
Supporting the Development of Small and Micro Enterprises and Self-employed Businesses
(Announcement No. 12 [2023] of the Ministry of Finance and the State Taxation
Administration), issued by the Ministry of Finance and the State Taxation Administration in
profit enterprises not exceeding RMB 1 million will be included in the taxable income at a
reduced rate of 25%, and the enterprise income tax will be paid at the rate of 20%.
Except for the following subsidiaries entitling to preferential tax treatment and the overseas
subsidies that adopt local applicable tax rate, other entities under the Company are subject to the
applicable tax rate of 25%, or the preferential tax rate for small and micro enterprises.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
IV Taxes (continued)
Subsidiaries entitled to tax preferences:
Company name Preferential tax rate Reason
TCL Financial Technology (Shenzhen) Co., Ltd. 15.00% High-tech enterprise
Shenzhen TCL High-Tech Development Co., Ltd. 15.00% High-tech enterprise
China Display Optoelectronics Technology
(Huizhou) Co., Ltd.
TCL China Star Optoelectronics Technology Co.,
Ltd.
Wuhan China Star Optoelectronics Technology
Co., Ltd.
Shenzhen China Star Optoelectronics Bandaoti
Display Technology Co., Ltd.
Wuhan China Star Optoelectronics Bandaoti
Display Technology Co., Ltd.
Guangzhou China Star Optoelectronics Bandaoti
Display Technology Co., Ltd.
Suzhou China Star Optoelectronics Technology
Co., Ltd.
Huizhou Kedate Smart Display Technology Co.,
Ltd.
Shenzhen Qianhai Maojia Software Technology
Co., Ltd.
Tianjin Huanbo Science and Technology Co., Ltd. 15.00% High-tech enterprise
Tianjin Printronics Circuit Corporation 15.00% High-tech enterprise
Techigh Circuit Technology (Huizhou) Co., Ltd. 15.00% High-tech enterprise
Tianjin Huanzhi New Energy Technology Co.,
Ltd.
Inner Mongolia Zhonghuan Solar Material Co.,
Ltd.
Tianjin Zhonghuan Advanced
Material&Technology Co., Ltd.
Huansheng New Energy (Jiangsu) Co., Ltd. 15.00% High-tech enterprise
Zhonghuan Advanced Bandaoti Technology Co.,
Ltd.
Wuxi Zhonghuan Applied Materials Co., Ltd. 15.00% High-tech enterprise
Huansheng New Energy (Tianjin) Co., Ltd. 15.00% High-tech enterprise
Tianjin Huanou New Energy Technology Co., Ltd 15.00% High-tech enterprise
Shaanxi Huanshuo Green New Energy Co., Ltd. 15.00% Encouraged business in West China
Suzhou China Star Environmental Protection Eligible third-party enterprises engaged in
Technology Co., Ltd. pollution prevention and control
Inner Mongolia Zhonghuan Advanced Bandaoti High-tech enterprise and encouraged
Material Co., Ltd. business in West China
Inner Mongolia Zhonghuan Crystal Materials Co., High-tech enterprise and encouraged
Ltd. business in West China
High-tech enterprise and encouraged
Ningxia Zhonghuan Solar Material Co., Ltd. 9.00%
business in West China
Ningxia Huanou New Energy Technology Co.,
Ltd.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
IV Taxes (continued)
Company name Preferential tax rate Reason
Dangxiong Youhao New Energy Development State-supported public infrastructure item
Co., Ltd. and encouraged business in West China
State-supported public infrastructure item
Hohhot Shuguang New Energy Co., Ltd. 12.50%
and encouraged business in West China
State-supported public infrastructure item
Shaanxi Runhuan Tianyu Technology Co., Ltd. 7.50%
and encouraged business in West China
Xuzhou Huanneng New Energy Co., Ltd. Tax-exempt State-supported public infrastructure item
Tianjin Binhai Huanxu New Energy Co., Ltd. Tax-exempt State-supported public infrastructure item
A 50% reduction in
the first phase, and
Tianjin Zhonghuan New Energy Co., Ltd. State-supported public infrastructure item
full exemption in the
second phase
Hohhot Dishengsheng New Energy Co., Ltd. Tax-exempt State-supported public infrastructure item
Shaanxi Huanbo New Energy Power Engineering State-supported public infrastructure item
Tax-exempt
Construction Co., Ltd.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements
June 30, 2025 December 31, 2024
Cash on hand 497 482
Bank deposits 26,336,769 20,526,899
Deposits with the central bank 261,628 285,264
Other monetary assets 1,945,449 2,195,128
Note Monetary assets with restricted use rights
June 30, 2025 December 31, 2024
TCL Tech Finance's statutory reserve deposits with
the central bank
Other restricted monetary assets 1,732,441 1,867,608
As of June 30, 2025, the Company’s bank deposits of RMB 255,241,000 (December 31, 2024: RMB
Group Finance Co., Ltd., a subsidiary of the Company.
As of June 30, 2025, the Company’s monetary assets offshore amounted to RMB 6,847,602,000
(December 31, 2024: RMB 3,151,386,000), all of which were owned by the overseas subsidiaries of
the Company.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
June 30, 2025 December 31, 2024
Financial assets classified as those measured at fair value
through profit or loss
Including: Debt instrument investments 24,086,112 16,525,080
Equity instrument investments 4,792 35,891
June 30, 2025 December 31, 2024
Foreign exchange forwards and foreign exchange swaps 168,726 172,489
(1) Notes receivable by category
June 30, 2025 December 31, 2024
Bank acceptance notes 172,633 188,776
Trade acceptance notes 1,482 1,077
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(2) Presentation of provision for bad debts on notes receivable by category
June 30, 2025 December 31, 2024
Gross amount Bad-debt Allowance Gross amount Bad-debt Allowance
Accrual Carrying Accrual Carrying
Amount Ratio Amount Amount Ratio Amount
Ratio amount Ratio amount
Notes receivable for
which the allowance for
doubtful accounts were 174,115 100% - - 174,115 189,853 100% - - 189,853
established on the
grouping basis
Including: low-risk
portfolio
(3) As at June 30, 2025, the Company had no notes receivable in pledge.
(4) As at June 30, 2025, endorsed or discounted notes receivable that were outstanding and derecognized amounted
to RMB 2,787,000 and endorsed or discounted notes receivable that were outstanding and not derecognized
were RMB 51,162.
June 30, 2025 December 31, 2024
Accounts receivable 20,113,028 22,589,419
Less: allowance for doubtful accounts 371,077 347,266
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Accounts receivable as at June 30, 2025 are classified as follows by how the doubtful debts were
(1)
provisioned:
June 30, 2025 December 31, 2024
Gross amount Bad-debt Allowance Gross amount Bad-debt Allowance
Category Accrual Carrying Accrual Carrying
Amount Ratio Amount Amount Ratio) Amount
Ratio amount Ratio amount
Allowances
for bad debts
accrued on an 247,803 1.23% 189,668 76.54% 58,135 261,025 1.16% 188,520 72.22% 72,505
individual
basis
Provision for
impairment
based on
portfolio of 19,865,225 98.77% 181,409 0.91% 19,683,816 22,328,394 98.84% 158,746 0.71% 22,169,648
credit risk
characteristic
s
(2) The aging of accounts receivable is analyzed as follows:
June 30, 2025 December 31, 2024
Amount Ratio Amount Ratio
Within 1 year 18,136,412 90.17% 20,652,345 91.43%
Over 3 years 766,037 3.81% 697,779 3.09%
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(3) Allowances for doubtful accounts receivable are analyzed as follows:
June 30, 2025
Beginning amount 347,266
Accrued in the period 51,648
Reversal of current period (45,286)
Write-off of current period (200)
Others 17,649
Ending amount 371,077
(4) As at June 30, 2025, the accounts receivable and contract assets of the top five balances are as
follows:
June 30, 2025
Total amount of the accounts receivable and contract assets of the
top five balances
As a percentage of the total amount of accounts receivable and
contract assets
(5) Accounts receivable derecognized due to transfer of financial assets
Methods of transfer of Amount derecognized Gain or loss
Item
financial assets for the period on derecognition
Accounts Factoring without
receivable recourse
June 30, 2025 December 31, 2024
Notes receivable financing 852,499 584,362
Receivable financing 3,107,127 247,045
As at June 30, 2025, the financing for endorsed or discounted receivables that were outstanding and
derecognized amounted to RMB 17,832,121,000.
As of June 30, 2025, the Company believes that receivables financing it held did not have significant credit
risks and will not cause significant losses due to default.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(1) Prepayments are analyzed as follows:
June 30, 2025 December 31, 2024
Within 1 year 1,356,151 1,807,562
Over 3 years 37,727 5,671
(2) As of June 30, 2025, the prepayments of the top five balances are as follows:
June 30, 2025
Total amount owed by the top five 1,112,296
As % of total prepayments 54.94%
June 30, 2025 December 31, 2024
Dividends receivable 680,027 675,119
Other receivables 3,246,928 4,048,021
(1) Dividends receivable
June 30, 2025 December 31, 2024
Xinjiang Goens Energy Technology
Co., Ltd.
Others 4,908 -
Less: allowance for doubtful
accounts
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(1) Dividends receivable (continued)
(a) Presentation of provision for bad debts on dividends receivable by category
June 30, 2025 December 31, 2024
Bad-debt Bad-debt
Gross amount Allowance Gross amount Allowance
Accrual Carrying Accrual Carrying
Category Amount Ratio Amount Amount Ratio Amount
Ratio amount Ratio amount
Allowances for
bad debts
accrued on an
individual basis
(2) Other receivables
June 30, 2025 December 31, 2024
Other receivables 3,679,801 4,478,337
Less: allowance for
doubtful accounts 432,873 430,316
(a) Nature of other receivables is analyzed as follows:
June 30, 2025 December 31, 2024
Subsidy receivables 1,012,909 1,849,469
Equity transfer receivables 505,369 561,969
Security and deposits 495,753 490,401
Others 1,232,897 1,146,182
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(2) Other receivables (continued)
(b) Presentation of provision for bad debts on other receivables by category
June 30, 2025 December 31, 2024
Bad-debt Bad-debt
Gross amount Allowance Gross amount Allowance
Category Carrying Carrying
Accrual Accrual
Amount Ratio Amount amount Amount Ratio Amount amount
Ratio Ratio
Allowances
for bad debts
accrued on an 509,007 13.83% 349,181 68.60% 159,826 684,637 15.29% 351,362 51.32% 333,275
individual
basis
Provisions for
bad debts
accrued on a
portfolio 3,170,794 86.17% 83,692 2.64% 3,087,102 3,793,700 84.71% 78,954 2.08% 3,714,746
basis
(c) Allowance for doubtful other receivables is analyzed as follows:
Lifetime ECL
(credit not Total
ECL (credit impaired)
impaired)
December 31, 2024 28,902 - 401,414 430,316
Current accrual 2,422 - 6,980 9,402
Reversal of current
(1,837) - (308) (2,145)
period
Write-off of current
(41) - - (41)
period
Others 72 - (4,731) (4,659)
June 30, 2025 29,518 - 403,355 432,873
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(d) The aging of other receivables is analyzed as follows:
June 30, 2025 December 31, 2024
Carrying amount Ratio Carrying amount Ratio
Within 1 year 1,785,264 48.51% 2,406,461 53.74%
Over 3 years 623,741 16.95% 631,175 14.09%
(e) As of June 30, 2025, the other receivables of the top five balances are as follows:
June 30, 2025
Total amount owed by the top five 1,626,628
As % of total other receivables 44.20%
(f) On June 30, 2025, there was no transfer of other receivables that did not conform to the conditions for
derecognition in the balance of this account; no transaction arrangement for asset securitization with other
receivables as the subject asset; and no financial instrument that was the subject of securitization and did not
conform to the conditions for derecognition.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(1) Inventories are classified as follows:
June 30, 2025 December 31, 2024
Provision for Provision for
depreciation depreciation
of inventories of inventories
Gross / provision for Carrying Gross / provision for Carrying
amount impairment of amount amount impairment of amount
contract contract
performance performance
costs costs
Raw
materials
Work in
progress
Finished
Goods
Turnover
materials 211,337 13,478 197,859 157,865 1,447 156,418
As of June 30, 2025, the Company had no inventory for liabilities guarantee.
(2) Provision for depreciation of inventories/provision for impairment of contract performance costs:
Accrued in Reversal and write- Other
December 31, 2024 June 30, 2025
the period off in the period changes
Raw
materials
Work in
progress
Inventory
of goods
Turnover
materials
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(1) Contract assets are classified as follows:
June 30, 2025 December 31, 2024
Gross Impairment Carrying Gross Impairment Carrying
amount allowance amount amount allowance amount
Contract
assets 429,810 32,137 397,673 422,207 27,090 395,117
(2) Valuation allowances for contract assets are analyzed as follows:
Reversal or
Accrued in Other increases
December 31, 2024 write-off in June 30, 2025
the period and decreases
the period
Contract
assets
June 30, 2025 December 31, 2024
Other non-current assets due within one year 1,765,934 842,072
Debt investments due within one year - 7,634
June 30, 2025 December 31, 2024
VAT to be deducted, to be certified, etc. 7,006,759 6,201,277
Loans and advances to customers 851,126 390,720
Others 910,637 124,212
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
June 30, 2025 December 31, 2024
Treasury bonds and corporate bonds 176,057 147,272
June 30, 2025 December 31, 2024
Gross Bad-debt Carrying Gross Bad-debt Carrying
amount Allowance amount amount Allowance amount
Finance lease 300,891 - 300,891 306,397 - 306,397
Including:
Unrealized (207,690) - (207,690) (220,030) - (220,030)
financing income
Others 143,664 27,801 115,863 165,145 27,801 137,344
June 30, 2025 December 31, 2024
Gross Impairment Carrying Gross Impairment Carrying
amount allowance amount amount allowance amount
Associate 23,683,207 1,422 23,681,785 24,140,271 1,444 24,138,827
Joint venture 488,423 49,503 438,920 506,310 49,503 456,807
As of June 30, 2025, the Company made impairment allowances for long-term equity investments in
investees with poor management and insolvent assets. In addition, there was no significant restriction on the
realization of investment and the remittance of return on long-term equity investment.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(1) Changes in long-term equity investments for the year
Increase or decrease in current period
Additional Reductions in Net profits or losses Cash dividends
Other Other
December 31, investments investments adjusted or profit
Investees 2024 or or under the equity
comprehensive equity
distribution
Others June 30, 2025
income changes
transfers-in transfers-out method declared
Joint venture 456,807 27,833 - (46,873) - 1,153 - - 438,920
Associate
Bank of Shanghai Co., Ltd. 14,740,146 - - 738,558 (47,923) 17 (179,937) - 15,250,861
Hubei Changjiang Hezhi Equity Investment
Fund Partnership (Limited Partnership)
Inner Mongolia Xinhuan Silicon Energy
Technology Co., Ltd.
Others 6,947,630 60,000 (171,868) 6,337 31 1,326 (45,683) (5,508) 6,792,265
Total of associates 24,138,827 60,000 (225,253) 629,394 (47,892) 1,343 (869,126) (5,508) 23,681,785
Total 24,595,634 87,833 (225,253) 582,521 (47,892) 2,496 (869,126) (5,508) 24,120,705
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(2) Impairment allowances for long-term equity investments
Increase in Decrease in Other
December 31, 2024 June 30, 2025 Note
current period current period changes
Pride Telecom Limited 1,444 - - (22) 1,422 Note 1
Huaxia CPV (Inner
Mongolia) Power Co., Ltd.
Note 1 Provisions for impairment were accrued for the long-term equity investments in these investees at
recoverable amounts because continuous operations losses occurred to these investees with poor management.
June 30, 2025 December 31, 2024
Stocks 20,326 13,371
Equity of unlisted companies 393,991 374,480
Reasons designated as
Amount of other
Recognized measured at fair value and
Cumulative Cumulative comprehensive
Item name dividend whose changes are
gains losses income transferred
revenue included in other
to retained earnings
comprehensive income
Being held long-term for
- 6,005 (193,923) -
Stocks strategic purposes
Equity of unlisted Being held long-term for
- 11,196 (12,307) -
companies strategic purposes
Total - 17,201 (206,230) -
June 30, 2025 December 31, 2024
Equity investments 2,357,816 1,924,717
Debt investments 216,155 300,483
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Houses and buildings Land use rights Total
Gross amount:
December 31, 2024 830,496 219,676 1,050,172
Increase 5,863 3,150 9,013
Reclassified from fixed assets and
intangible assets
Other increases 179 3,150 3,329
Decreases (1,433) (3,924) (5,357)
Other decreases (1,433) (3,924) (5,357)
June 30, 2025 834,926 218,902 1,053,828
Accumulated depreciation and
amortization:
December 31, 2024 320,055 49,475 369,530
Increase 13,272 2,451 15,723
Accrued in the period 9,863 2,451 12,314
Reclassified from fixed assets and
intangible assets
Decreases (2,167) (59) (2,226)
Other decreases (2,167) (59) (2,226)
June 30, 2025 331,160 51,867 383,027
Investment property, net:
June 30, 2025 503,766 167,035 670,801
December 31, 2024 510,441 170,201 680,642
Impairment allowance:
December 31, 2024 67,908 - 67,908
June 30, 2025 67,908 - 67,908
Investment property, net:
June 30, 2025 435,858 167,035 602,893
December 31, 2024 442,533 170,201 612,734
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Office and
Houses and Machinery Transportation Power
electronic Others Total
buildings equipment equipment stations
equipment
Gross amount:
December 31, 2024 61,136,545 241,758,804 3,800,411 318,237 2,224,955 1,426,517 310,665,469
Increase 7,278,351 35,972,244 632,363 38,517 - 8,135 43,929,610
New subsidiary 6,685,127 24,955,842 543,758 1,561 - - 32,186,288
Acquisition and other 44,890 597,541 56,850 8,338 - 2,713 710,332
Reclassified from
construction in 548,334 10,418,861 31,755 28,618 - 5,422 11,032,990
progress
Decreases (644,438) (1,235,281) (140,162) (8,528) - - (2,028,409)
Written down with
- (22,246) - - - - (22,246)
public grants
Reclassified to
(5,684) - - - - - (5,684)
investment property
Decrease due to
disposal of (38,751) (95,183) (64,585) - - - (198,519)
subsidiaries
Other decreases (600,003) (1,117,852) (75,577) (8,528) - - (1,801,960)
Exchange adjustment (1,810) (3,006) 465 39 - 501 (3,811)
June 30, 2025 67,768,648 276,492,761 4,293,077 348,265 2,224,955 1,435,153 352,562,859
Accumulated
depreciation:
December 31, 2024 12,442,980 121,364,569 2,452,682 242,880 659,147 334,859 137,497,117
Increase 3,989,923 35,764,568 666,688 21,587 41,520 42,473 40,526,759
New subsidiary 2,801,716 23,629,474 480,115 1,378 - - 26,912,683
Accrual 1,184,764 11,888,563 185,433 20,209 41,520 42,473 13,362,962
Other increases 3,443 246,531 1,140 - - - 251,114
Decreases (82,643) (517,135) (95,768) (7,248) - - (702,794)
Reclassified to
(3,409) - - - - - (3,409)
investment property
Decrease due to
disposal of (32,901) (13,104) (26,440) - - - (72,445)
subsidiaries
Other decreases (46,333) (504,031) (69,328) (7,248) - - (626,940)
Exchange adjustment 762 (613) 706 74 - 344 1,273
June 30, 2025 16,351,022 156,611,389 3,024,308 257,293 700,667 377,676 177,322,355
Fixed assets, net:
June 30, 2025 51,417,626 119,881,372 1,268,769 90,972 1,524,288 1,057,477 175,240,504
December 31, 2024 48,693,565 120,394,235 1,347,729 75,357 1,565,808 1,091,658 173,168,352
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Office and
Houses and Machinery Transportation Power
electronic Others Total
buildings equipment equipment stations
equipment
Impairment allowance:
December 31, 2024 919,519 1,601,398 73,101 266 62,059 - 2,656,343
Accrued in the period - - 87 - - - 87
Write-off of current period (705) (6,549) (372) (100) - - (7,726)
Other changes 2,297 19,635 173 - - - 22,105
June 30, 2025 921,111 1,614,484 72,989 166 62,059 - 2,670,809
Fixed assets, carrying
amount:
June 30, 2025 50,496,515 118,266,888 1,195,780 90,806 1,462,229 1,057,477 172,569,695
December 31, 2024 47,774,046 118,792,837 1,274,628 75,091 1,503,749 1,091,658 170,512,009
Please refer to Item 82 of Note V for information on fixed assets pledge.
Fixed assets with pending ownership certificates at the end of the current period:
Reasons for pending ownership
Carrying amount
certificates
Houses and buildings
(Note)
Note As of June 30, 2025, the fixed assets for which the certificates of title have not been completed are mainly the houses
and buildings of Huaxing Production Bases t3, t5 and t9, as well as the houses and buildings of Inner Mongolia
Zhonghuan Crystal Materials Co., Ltd. and Ningxia Huan'ou New Energy Technology Co., Ltd..
(1) Schedule of construction in progress
June 30, 2025 December 31, 2024
Construction in progress 18,074,486 23,872,805
Less: Impairment allowance 266,042 292,302
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(2) Changes to construction in progress
Accumulated
Construction in investment in Including: Interest
Increase in Cumulative
progress Other the project Project capitalized capitalization
Project name Budget December 31, 2024 current June 30, 2025 capitalized Funding source
transferred to movements progress interest in rate for current
period as % of interest
fixed assets current period period
budget
t9 production line of Under Self-funded and
LCD panel construction financed funds
Solar power station Under Self-funded and
projects construction financed funds
Large-diameter silicon
Under Self-funded and
wafers for integrated 11,210,780 3,241,139 287,338 (832,314) (342) 2,695,821 49% 48,264 8,216 2.95%
construction financed funds
circuits
Silicon wafers for Under Self-funded and
integrated circuits construction financed funds
Highly-efficient
Under Self-funded and
imbricate module G12 2,886,269 911,184 350,578 (22,247) (183) 1,239,332 7% 8,932 2,354 0.13%
construction financed funds
project
Production line of 8-
Under Self-funded and
construction financed funds
for integrated circuits
Not Not Not Not
Others 10,047,288 2,732,662 (5,794,374) (474,610) 6,510,966 Not applicable Not applicable Not applicable
applicable applicable applicable applicable
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Houses and Transportation Machinery Land use
Total
buildings equipment equipment rights
Gross amount:
December 31, 2024 6,523,967 755 906,409 472,917 7,904,048
Increase 128,972 13,370 - 87,845 230,187
New subsidiary 73,183 12,960 - - 86,143
Leased in 54,414 162 - 73,214 127,790
Other increases 1,375 248 - 14,631 16,254
Decreases (107,377) (253) (4,864) (1,172) (113,666)
Reduction due to
(17,653) - - - (17,653)
contract revision
Other decreases (89,724) (253) (4,864) (1,172) (96,013)
Exchange adjustment 14,430 52 - - 14,482
June 30, 2025 6,559,992 13,924 901,545 559,590 8,035,051
Accumulated
depreciation:
December 31, 2024 802,000 398 294,298 47,409 1,144,105
Increase 251,982 11,586 50,634 14,181 328,383
New subsidiary 55,949 10,610 - - 66,559
Accrual 189,998 484 50,634 14,181 255,297
Other increases 6,035 492 - - 6,527
Decreases (68,883) (42) (2,822) - (71,747)
Other decreases (68,883) (42) (2,822) - (71,747)
Exchange adjustment 4,148 29 - - 4,177
June 30, 2025 989,247 11,971 342,110 61,590 1,404,918
Right-of-use assets,
carrying amount:
June 30, 2025 5,570,745 1,953 559,435 498,000 6,630,133
December 31, 2024 5,721,967 357 612,111 425,508 6,759,943
Impairment allowance:
December 31, 2024 62,255 - - - 62,255
Decreases (25,918) - - - (25,918)
Write-off of current year (25,918) - - - (25,918)
June 30, 2025 36,337 - - - 36,337
Right-of-use assets,
carrying amount:
June 30, 2025 5,534,408 1,953 559,435 498,000 6,593,796
December 31, 2024 5,659,712 357 612,111 425,508 6,697,688
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Non-patent
Land use
technology/ Others Total
rights
patent right
Gross amount:
December 31, 2024 9,509,193 15,399,137 3,304,269 28,212,599
Increase 1,141,344 1,145,022 366,974 2,653,340
New subsidiary 822,003 5,972 271,302 1,099,277
Purchase 7,828 996,386 95,672 1,099,886
Reclassified from development
- 142,664 - 142,664
expenditures
Others 311,513 - - 311,513
Decreases (185) (10,495) (30,885) (41,565)
Disposal and others (185) (10,495) (30,885) (41,565)
Exchange adjustment (441) 967 755 1,281
June 30, 2025 10,649,911 16,534,631 3,641,113 30,825,655
Accumulated amortization:
December 31, 2024 1,519,969 6,851,302 1,564,658 9,935,929
Increase 260,040 1,105,474 410,718 1,776,232
Accrual 136,759 1,099,502 160,964 1,397,225
New subsidiary 123,222 5,972 249,754 378,948
Others 59 - - 59
Decreases (31) (4,326) (4,084) (8,441)
Disposal and others (31) (4,326) (4,084) (8,441)
Exchange adjustment (6) (459) 264 (201)
June 30, 2025 1,779,972 7,951,991 1,971,556 11,703,519
Intangible assets, net:
June 30, 2025 8,869,939 8,582,640 1,669,557 19,122,136
December 31, 2024 7,989,224 8,547,835 1,739,611 18,276,670
Impairment allowance:
December 31, 2024 23,562 114,526 21,115 159,203
Exchange adjustment - (149) - (149)
June 30, 2025 23,562 114,377 21,115 159,054
Intangible assets, carrying amount:
June 30, 2025 8,846,377 8,468,263 1,648,442 18,963,082
December 31, 2024 7,965,662 8,433,309 1,718,496 18,117,467
Please refer to Item 82 of Note V for information on collateralized intangible assets.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Development expenditures are presented as follows:
June 30, 2025 December 31, 2024
Display 1,142,061 1,165,388
New energy photovoltaics and other silicon
materials
(1) Gross amount of goodwill
Increase in Decrease
Name of investee or matter forming
December 31, 2024 current in current June 30, 2025
goodwill
period period
TCL Technology Group (Tianjin) Co.,
Ltd.
Moka International Limited 1,733,665 - - 1,733,665
Xinxin Bandaoti Technology Co., Ltd. 1,180,005 - - 1,180,005
Maxeon Solar Technologies, Ltd. 1,556,676 - (77,299) 1,479,377
Guangzhou China Star Optoelectronics
- 827,544 - 827,544
Technology Co., Ltd.
Guangzhou China Star Optoelectronics
- 63,782 - 63,782
Display Co., Ltd.
Others 910,601 - - 910,601
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(2) Goodwill impairment allowance
Increase in Decrease
current in current
Name of investee December 31, 2024 period period June 30, 2025
Maxeon Solar Technologies, Ltd. 915,394 - - 915,394
Others 31,978 - - 31,978
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Increase in
Amortization
December 31, 2024 current Others June 30, 2025
in the period
period
Improvement expense on
leased fixed assets
Others 1,595,929 1,426,192 (1,018,993) (27,237) 1,975,891
(1) Un-offset deferred income tax assets
June 30, 2025 December 31, 2024
Deductible Deductible
Deferred tax Deferred tax
temporary temporary
assets assets
difference difference
Deductible losses 25,423,751 3,915,482 27,723,181 4,209,631
Asset impairment
allowances
Provisions 3,903,713 609,360 1,618,959 254,359
Changes in fair value 60,338 14,604 56,219 14,055
Lease liabilities 6,665,956 673,426 6,683,424 858,412
Others 7,709,143 1,253,567 5,817,857 945,951
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(2) Un-offset deferred income tax liabilities
June 30, 2025 December 31, 2024
Taxable Taxable Deferred
Deferred tax
temporary temporary income tax
liabilities
differences differences liabilities
Depreciation of fixed assets 25,405,441 4,016,701 25,279,356 3,855,131
Increase in value of assets
as assessed in business
combination not involving 5,100,360 1,109,985 3,145,703 607,855
entities under common
control
Changes in fair value 803,082 191,199 345,981 70,110
Right-of-use assets 6,593,796 732,760 6,697,688 923,022
Others 1,961,318 152,343 2,654,782 318,508
(3) Deferred income tax assets or liabilities presented on a net basis after offsetting
Amount subject to mutual offset of Closing balance of deferred
Item deferred income tax assets against income tax assets or liabilities
liabilities at the end of the period after offset
Deferred income tax assets (4,106,118) 2,787,120
Deferred income tax liabilities (4,106,118) 2,096,870
Amount subject to mutual offset of Beginning balance of deferred
Item deferred income tax assets against income tax assets or liabilities
liabilities at the beginning of the period after offset
Deferred income tax assets (4,230,177) 2,486,427
Deferred income tax liabilities (4,230,177) 1,544,449
(4) Unrecognized deferred income tax assets
June 30, 2025 December 31, 2024
Deductible temporary difference 5,510,842 5,638,299
Deductible losses 24,822,728 26,169,314
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Deductible losses in respect of unrecognized deferred income tax assets will expire in the
(5)
following years
June 30, 2025 December 31, 2024
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
June 30, 2025 December 31, 2024
Impairment Carrying Gross Impairment Carrying
Gross amount allowance amount amount allowance amount
Other non-current - -
assets 23,084,818 23,084,818 17,917,341 17,917,341
Note Other non-current assets mainly include the prepayments for engineering equipment, large-amount fixed-income
certificates of deposit and fixed-term deposits, etc., which are subsequently measured at amortized cost.
June 30, 2025 December 31, 2024
Unsecured borrowings 9,116,706 8,123,337
Borrowings secured by pledge 111,326 54,888
Interests payable 240 15,058
As at June 30, 2025, the Company’s short-term pledged loans were equivalent to RMB 111,326,000, pledged
with held-for-trading financial assets equivalent to RMB 145,404,000.
As of June 30, 2025, the Company does not have any short-term borrowings that have expired and have not
been repaid.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
As of June 30, 2025, the balance of the borrowings of TCL Technology Group Finance Co., Ltd. (a subsidiary
of the Company) from the Central Bank was RMB 1,002,386,000 (December 31, 2024: RMB 600,926,000).
June 30, 2025 December 31, 2024
Customer deposits and deposits from other
banks and financial institutions
Customer deposits and deposits from banks and other financial institutions are the deposits of related and non-
related enterprises absorbed by TCL Technology Group Finance Co., Ltd., a subsidiary of the Company,
within the business scope approved by the regulatory authority.
June 30, 2025 December 31, 2024
Financial liabilities measured at fair value
through current profits and losses
June 30, 2025 December 31, 2024
Derivative financial liabilities 85,376 248,845
June 30, 2025 December 31, 2024
Bank acceptance notes 6,273,165 6,796,785
Trade acceptance notes 462,236 311,057
As of June 30, 2025, the Company had no notes payable that were due but not paid.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
June 30, 2025 December 31, 2024
Amounts due to suppliers 34,590,168 29,347,615
As of June 30, 2025, there were no significant accounts payable aged over one year.
June 30, 2025 December 31, 2024
Advances from customers 737 2,689
As of June 30, 2025, the Company had no significant accounts receivable aged over one year.
June 30, 2025 December 31, 2024
Advances from customers 2,183,855 1,969,271
As at June 30, 2025, the Company had no significant contract liability aged over one year.
(1) Employee compensation payable
June 30, 2025 December 31, 2024
Short-term employee benefits payable 3,761,339 4,131,966
Defined contribution plans payable 10,024 29,005
Dismissal benefits payable 1,942 27,266
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(1) Employee benefits payable (continued)
(a) Short-term employee benefits presented
Increase in Decrease in
December 31, 2024 current period current period June 30, 2025
Wages, bonuses,
allowances, and subsidies
Employee services and
- 252,904 (252,904) -
benefits
Social insurance benefits 28,808 182,598 (183,523) 27,883
Including: medical insurance
premium
Employment
injury insurance 424 11,212 (11,564) 72
premiums
Maternity
insurance
Housing fund 17,824 190,010 (187,459) 20,375
Trade union funds and staff
education funds
Other employee salaries 1,966 25,386 (7,343) 20,009
(b) Defined contribution plans
Increase in Decrease in
December 31, 2024 current period current period June 30, 2025
Basic pension insurance 28,856 405,069 (424,046) 9,879
Unemployment insurance 149 14,889 (14,893) 145
(2) Long-term employee compensation payable
June 30, 2025 December 31, 2024
Supplementary pension insurance 22,113 22,424
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
June 30, 2025 December 31, 2024
Corporate income tax 459,522 468,325
Value-added tax 75,317 160,729
Individual income tax 128,203 35,147
Urban maintenance and construction tax 237,110 203,667
Education surcharges 169,305 145,475
Others 363,561 192,755
June 30, 2025 December 31, 2024
Dividends payable 946,382 13,131
Other payables 18,302,907 20,058,938
(1) Dividends payable
June 30, 2025 December 31, 2024
Other non-controlling interests 946,382 13,131
(2) Other payables
June 30, 2025 December 31, 2024
Payables for engineering equipment 11,755,366 14,150,023
Unpaid expenses 3,052,429 2,796,611
Security and deposits 507,831 581,027
Others 2,987,281 2,531,277
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
June 30, 2025 December 31, 2024
Long-term borrowings due within one year
(Note 1)
Bonds payable due within one year (Note 2) 43 7,347,758 7,868,074
Long-term payables due within one year 2,336,103 1,187,771
Interest payable due within one year 273,358 374,059
Lease liabilities due within one year 44 365,361 348,638
Long-term employee compensation payable due
within one year
Note 1 The interest rates of the Company’s long-term borrowing due within one year ranged from 2.1% to 4.3% in
the current period (2024: from 2.1% to 4.3%).
Note 2 The Company's bonds payable due within one year are mainly as follows:
term of 3 years, the closing balance as at June 30, 2025 was RMB 1,999,974,000.
a term of 3 years, the closing balance as at June 30, 2025 was RMB 1,499,271,000.
June 30, 2025 was RMB 1,499,648,000.
June 30, 2025 December 31, 2024
After-sales service expense (note) 1,272,278 1,255,175
Output tax to be transferred 141,901 120,002
Others 102,898 109,738
Note After-sales service expense expected to occur within 1 year is presented in other current liabilities.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
June 30, 2025 December 31, 2024
Borrowings secured by collateral 29,416,490 41,035,441
Borrowings secured by pledge 3,847,043 3,239,538
Unsecured borrowings 126,503,698 98,975,145
Including: long-term loans due within one year (31,295,515) (26,434,993)
As at June 30, 2025, the long-term borrowings secured by collateral were equivalent to RMB 29,416,490,000
(December 31, 2024: RMB 41,035,441,000), which were secured by the collateral of the land use rights,
houses and buildings, machinery and equipment of about RMB 73,315,173,000 (December 31, 2024: RMB
RMB 381,900,000 (December 31, 2024: RMB 403,810,000).
The interest rates of the Company’s long-term borrowing ranged from 2.1% to 5.7% in the current period
(2024: from 2.1% to 5.7%).
June 30, 2025 December 31, 2024
Corporate bonds 3,492,235 4,989,943
MTN 2,990,459 1,498,677
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(1) Movements in bonds payable
Accrued
Issued in Amortization Repaid
Issued interest Others
Bond name Par value Issue date Maturity December 31,2024 current of premium or in current June 30,2025
amount as per par (note)
period discount period
value
Tech Innovation Notes)
ZQYWKJ2402010102-24TCLK1 1,500,000 January 30, 2024 2 1,500,000 1,499,269 - 14,281 - - (1,499,269) -
ZQYWKJ2404120002-24TCLK2 1,500,000 April 9, 2024 5 1,500,000 1,496,967 - 20,009 669 - 1,497,636
ZQYWKJ2407090002-24TCLK3 1,000,000 July 4, 2024 5 1,000,000 997,754 - 11,356 446 - 998,200
ZQYWKJ2407090003-24TCLK4 1,000,000 July 4, 2024 5 1,000,000 995,953 - 12,199 446 - 996,399
Tech Innovation Notes)
Tech Innovation Notes)
Innovation Bonds)
Total 9,500,000 9,500,000 6,488,620 3,000,000 113,149 (7,980) - (2,997,946) 6,482,694
Note Others are bonds payable within one year which are reclassified to non-current liabilities due within one year and exchange adjustment.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
June 30, 2025 December 31, 2024
Total lease liabilities 6,665,956 6,683,424
Less: Current portion of lease liabilities 365,361 348,638
June 30, 2025 December 31, 2024
Finance lease 1,636,141 1,994,812
Increase in Decrease in
December 31, 2024 June 30, 2025
current period current period
Public grants 1,014,891 4,039,760 (1,987,023) 3,067,628
Items involving public grants
Written off
Recognized
against the Other
December 31,2024 Increase in other June 30,2025
cost of the changes
income
asset/expenses
Public grants
related to 276,006 809,488 (1,650) (236,553) (13,441) 833,850
assets
Public grants
related to 738,885 3,230,272 (924,921) (793,064) (17,394) 2,233,778
income
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
June 30, 2025 December 31, 2024
After-sales service fee of products 164,389 206,991
Pending litigation 48,844 42,227
June 30, 2025 December 31, 2024
Other non-current liabilities 32,333 27,508
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
December 31, 2024 Increase or decrease in current period June 30, 2025
Shares
converted from
Amount Ratio New issues capital reserve Others Subtotal Amount Ratio
I. Restricted shares 679,458 3.62% - - 2,876 2,876 682,334 3.63%
II. Non-restricted
shares
III. Total shares 18,779,081 100% - - - - 18,779,081 100.00%
Except for Chairman of the Board Mr. Li Dongsheng who holds restricted shares subscribed for in a private placement, none of the other incumbent directors,
supervisors, or senior management hold any restricted shares from a split-share structure reform or a private placement. The shares held by these personnel will stay
partially frozen as per the Rules on the Management of Shares Held by the Directors, Supervisors, and Senior Management Officers of the Company and the Changes
thereof. The trading and information disclosure in relation to these shares shall be in strict compliance with the applicable laws, regulations, and rules.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Increase in Decrease in
December 31, 2024 current period current period June 30, 2025
Share capital premium 10,105,906 - (623,557) 9,482,349
Other capital reserves 447,175 168,996 (192,779) 423,392
Increase in Decrease in
December 31, 2024 June 30, 2025
current period current period
Treasury share 919,322 - (215,670) 703,652
The decrease in the year is mainly caused by the non-trading transfer and sale of the employee portion of
the employee stock ownership plan.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(1) Other comprehensive income items, income tax effects and reclassifications to profit or loss
January - June 2025 January - June 2024
I. Items that cannot be reclassified to profit or loss
subsequently
(10,208) 122,166
be reclassified to profit or loss under the equity method
Share of the period (10,166) 122,166
Previous other comprehensive income reclassified to
(42) -
retained earnings for the current period
Current gain/(loss) 7,619 119
Income tax effects recorded in other comprehensive income (753) (273)
II. Items that will be reclassified to profit or loss subsequently
(37,685) 21,228
be reclassified to profit or loss under the equity method
Share of the period (37,685) 21,228
Current gain/(loss) - (13,059)
Previous other comprehensive income reclassified to profit
- 16,073
for current period
Income tax effects recorded in other comprehensive income - (1,137)
(92,875) 29,879
financial statements of overseas operations
- -
through profit or loss
(133,902) 174,996
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(2) Changes in other comprehensive income items
Equity attributable to shareholders of the parent company
Differences Changes
Share of other
arising from caused by re- Other
comprehensive Financial Fair value
Gain/(Loss) translation of measurement comprehensive
Change of income of investees assets changes Non- Total other
on changes in foreign of net income
accounting that will be Gain or loss of other Subtotal controlling comprehensive
cash flow currency- liabilities or transferred to
policies reclassified to profit on fair-value equity interests income
hedges denominated net assets of retained
or loss under the changes instruments
financial defined earnings
equity method
statements benefit plans
December 31, 2023 334,950 24,965 (350,569) 28,743 (660,890) (216,409) - (106,588) (945,798) 20,996 (924,802)
Movement of 2024 - 300,954 - (14,569) (80,651) 5,931 (200) (6,126) 205,339 (22,646) 182,693
December 31, 2024 334,950 325,919 (350,569) 14,174 (741,541) (210,478) (200) (112,714) (740,459) (1,650) (742,109)
Movement from January to
- (47,852) - - (42,324) 6,866 - (42) (83,352) (50,550) (133,902)
June 2025
June 30, 2025 334,950 278,067 (350,569) 14,174 (783,865) (203,612) (200) (112,756) (823,811) (52,200) (876,011)
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Increase in Decrease in
December 31, 2024 current period current period June 30, 2025
Statutory surplus reserves 3,791,516 - - 3,791,516
Discretionary surplus
reserves
Appropriation in Decrease in
December 31, 2024 June 30, 2025
current period current period
Production safety
reserve
Appropriation in Decrease in
December 31, 2024 current period current period June 30, 2025
General risk reserve 8,934 - - 8,934
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
January - June 2025 January - June 2024
Retained earnings at the beginning of the year 21,504,719 21,537,188
Change of accounting policies - -
Net profits for current period 1,883,500 995,213
Decrease in current period (938,912) (1,502,326)
Including: Appropriation of surplus reserves - -
Distributed to ordinary shareholders as dividends (938,954) (1,502,326)
Others 42 -
Retained earnings at the end of the period 22,449,307 21,030,075
January - June 2025 January - June 2024
Operating Operating Operating
Operating cost
revenue cost revenue
Core business 82,687,265 71,815,128 77,594,877 68,551,088
Non-core business 2,872,739 2,267,710 2,628,860 2,091,470
(1) Business by operating segment
Operating revenue Operating cost Gross profit
January - June January - June January - June January - June January - June January - June
Domestic
sales
Foreign
sales
(2) The total revenue from the sales to the top five customers was RMB 28,582,114,000 and RMB
and 33.7% of the revenue.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(3) Revenue and costs generated from the Company's trial sales are as follows:
January - June 2025 January - June 2024
Operating revenue 1,705,918 255,217
Operating cost 1,422,185 225,302
January - June 2025 January - June 2024
Interest income 101,622 79,672
Interest expenditures 7,789 14,885
Exchange gain/(loss) 207 (116)
The interest income, interest expense and exchange gain/(loss) above occurred with the Company's
subsidiary TCL Technology Group Finance Co., Ltd., which are presented separately herein as
required for a financial enterprise.
January - June 2025 January - June 2024
Property tax 263,577 190,296
Stamp tax 96,737 94,293
Urban maintenance and construction tax 108,427 110,639
Education surcharges 79,276 68,213
Land use tax 36,926 15,703
Others 13,201 20,984
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
January - June 2025 January - June 2024
Employee salaries and benefits 639,773 415,185
Promotional and marketing expenses 156,472 109,593
Others 367,720 352,619
January - June 2025 January - June 2024
Employee salaries and benefits 1,184,868 945,366
Depreciation and amortization expenses 468,934 389,201
Expenses for hiring intermediaries 150,691 260,367
Others 396,066 408,902
January - June 2025 January - June 2024
Depreciation and amortization expenses 2,185,468 2,359,818
Material expenses 626,942 555,016
Employee salaries and benefits 1,423,147 1,140,394
Others 506,322 346,339
January - June 2025 January - June 2024
Interest expenditures 2,555,367 2,472,976
Interest income (353,536) (381,577)
Exchange loss/(gain) (120,413) (127,718)
Others 59,864 127,594
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
January - June 2025 January - June 2024
R&D subsidies 743,047 217,272
VAT rebates on software 17,519 17,952
Over-deduction in taxable amount for VAT 259,376 586,905
Others 218,560 313,264
January - June 2025 January - June 2024
Revenue from long-term equity investment
accounted for using the equity method
Net income from disposal of long-term equity
(50,647) 36,917
investments
Return on holding of held-for-trading financial
assets
Return on disposal of held-for-trading financial
assets
Others 138,701 73,022
January - June 2025 January - June 2024
Held-for-trading financial assets 285,102 47,309
Held-for-trading financial liabilities (5,138) (5,672)
Derivative financial instruments 189,924 91,309
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
January - June 2025 January - June 2024
Loss on uncollectible accounts receivable (6,362) (8,589)
Loss on uncollectible other receivables (7,257) (2,279)
Other financial assets (11,772) 3,599
(25,391) (7,269)
January - June 2025 January - June 2024
Inventory valuation loss (2,793,810) (1,998,171)
Loss on impairment of fixed assets (87) (56,770)
Others (5,047) (4,707)
(2,798,944) (2,059,648)
January - June 2025 January - June 2024
Income/(loss) from disposal of fixed assets (763) 17,926
Income/(loss) from disposal of intangible assets (3,321) 21,683
Others 1,065 331
(3,019) 39,940
Amount through current
January - June 2025 January - June 2024 non-recurring gains and
losses
Gains on retired or damaged
non-current assets
Revenue from liquidated
damages and others
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Amount through current
non-recurring gains and
January - June 2025 January - June 2024 losses
Losses on retired or
damaged non-current assets
Donation 17,415 23,741 17,415
Others 99,133 25,196 99,133
(1) Table of income tax expenses
January - June 2025 January - June 2024
Current income tax expense 665,481 350,489
Deferred income tax expense (349,587) (298,277)
(2) Accounting profit and income tax adjustment process
January - June 2025 January - June 2024
Gross profit 347,577 (415,937)
Income tax expense calculated at
statutory/applicable tax rate
Impact of different tax rates applied to subsidiaries 500,690 437,578
Impact of adjusting income tax in previous periods (66,236) 77,334
Impact of non-taxable income (1,036,609) (751,090)
Impact of non-deductible costs, expenses, and
losses
Impact of the use of deductible losses carried
forward without recognizing deferred income tax 116,387 29,348
assets in the previous periods
Impact of unrecognized deferred income tax assets
of deductible temporary differences or deductible 752,156 368,522
losses in the current period
Others (39,024) (106,051)
Income tax expense 315,894 52,212
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(1) Basic earnings per share
January - June 2025 January - June 2024
Net profits attributable to shareholders of the parent company 1,883,500 995,213
Weighted average outstanding ordinary shares (in thousand shares) 18,573,423 18,588,572
Basic earnings per share (RMB yuan) 0.1014 0.0535
(2) Diluted earnings per share
January - June 2025 January - June 2024
Net profits attributable to shareholders of the parent company 1,883,500 995,213
Diluted weighted average outstanding ordinary shares (in
thousand shares)
Diluted earnings per share (RMB yuan) 0.1003 0.0530
Other cash received from operating activities in the consolidated cash flow statement was RMB 8,523,407,000
(year-on-year: RMB 3,396,202,000), which primarily consisted of current payments received, public grants, etc.
Other cash paid for other operating activities in the consolidated cash flow statement was RMB 8,827,613,000
(year-on-year: RMB 5,334,029,000), which primarily consisted of various expenses and current payments, etc.
Other cash received from investing activities in the consolidated cash flow statement was RMB 182,916,000
(year-on-year: RMB 352,014,000), which primarily consisted of receipts from current accounts and proceeds
from the maturity of time deposits.
Other cash paid for investing activities in the consolidated cash flow statement was RMB 464,253,000 (year-on-
year: RMB 563,835,000), which primarily consisted of the payments for foreign exchange forward delivery, time
deposits, etc.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Other cash received from financing activities in the consolidated cash flow statement was RMB 544,843,000
(year-on-year: RMB 422,120,000), which primarily consisted of the payment for sales of treasury shares,
receipt of finance leasing payments, etc.
Other cash paid for financing activities in the consolidated cash flow statement was RMB 9,101,549,000
(year-on-year: RMB 1,930,490,000), primarily consisting of the payments for the repurchase of minority
interests, financial lease payments, etc.
(1) Reconciliation of net profits to net cash generated from/used in operating activities
January - June 2025 January - June 2024
Net profits 31,683 (468,149)
Add: Asset impairment allowance 2,824,335 2,066,917
Depreciation of fixed assets 13,375,276 12,514,781
Depreciation of right-of-use assets 255,297 238,081
Amortization of intangible assets 1,397,225 1,041,749
Amortization of long-term deferred expenses 1,054,605 1,303,364
Loss/(Gain) on disposal of fixed assets, intangible assets, and
other long-term assets
Loss/(Gain) on retired or damaged fixed assets 3,235 29,197
Loss/(Gain) on changes in fair value (469,888) (132,946)
Financial expenses 2,442,536 2,360,259
Return on investment (831,296) (421,758)
Decrease/(Increase) in deferred income tax assets (271,016) (126,228)
Increase/(Decrease) in deferred income tax liabilities 465,418 (170,047)
Decrease/(Increase) in inventory (5,379,161) (3,698,344)
Decrease/(Increase) in operating receivables 8,496,334 477,841
Increase/(Decrease) in operating payables 3,717,544 (2,605,556)
Others 158,837 263,501
Net cash generated from operating activities 27,273,983 12,632,722
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(2) Net cash payments for acquisition of subsidiaries in the current period
January - June 2025 January - June 2024
Payments of cash and cash equivalents made in current period due
to business combinations incurred in current period
Less: cash and cash equivalents held by subsidiary on acquisition
date
Add: Payments of cash and cash equivalents made in the current
- -
period due to business combinations incurred in previous periods
Net cash payments for acquisition of subsidiaries 6,104,583 4,284
(3) Breakdown of cash and cash equivalents
June 30, 2025 December 31, 2024
I. Cash 26,556,661 20,861,255
Including: Cash on hand 497 482
Bank deposits available for payment on demand 26,267,546 20,524,146
Other monetary assets are available for payment on
demand
Deposits with the central bank available for payment 6,387 6,354
II. Cash equivalents - -
III. Ending balance of cash and cash equivalents 26,556,661 20,861,255
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(4) Description of other major activities
Major operation or investment activities in no connection with cash receipts and payments:
January - June 2025 January - June 2024
Payment for procurement of inventory by bank acceptance
bills
Payment for procurement of long-term assets by bank
acceptance bills 1,154,167 2,538,897
January - June 2025 January - June 2024
Ending balance of cash and cash equivalents 26,556,661 17,923,548
Less: Cash at the beginning of the year 20,861,255 19,996,815
Net increase in cash and cash equivalents 5,695,406 (2,073,267)
Analysis of ending balance and cash equivalents:
Monetary assets at the end of the period 28,544,343 19,587,500
Less: Non-cash equivalents at the end of the period (note) 1,987,682 1,663,952
Ending balance of cash and cash equivalents 26,556,661 17,923,548
Note: The ending non-cash equivalents primarily included interest receivable on bank deposits, the statutory
reserve deposits placed by TCL Technology Group Finance Co., Ltd. in the central bank, and other monetary
assets, detailed in Note V. 1.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
June 30, 2025 Reason for restriction
Gross carrying Carrying
amount amount
Deposited in the central
Monetary assets 255,241 255,241 bank as the required
reserve
Other monetary assets
Monetary assets 1,732,441 1,732,441 and restricted bank
deposits
Fixed assets 143,644,455 92,590,825 As collateral for loan
Intangible assets 4,972,674 4,106,262 As collateral for loan
Held-for-trading financial assets 145,404 145,404 In pledge
Construction in progress 914,637 914,637 As collateral for loan
Accounts receivable 956,989 945,420 In pledge
Contract assets 143,762 133,185 In pledge
Note: In the current period, the subsidiary Wuhan China Star Optoelectronics Bandaoti Display Technology
Co., Ltd. prepaid bank loans amounting to RMB 2,438,000,000. The pledged fixed assets of RMB
June 30, 2025
Foreign currency
Conversion rate RMB balance
balance
Monetary assets
Including: USD 1,149,873 7.1586 8,231,481
HKD 66,848 0.9119 60,959
INR 1,737,284 0.0837 145,411
EUR 14,351 8.3899 120,403
PLN 47 1.9786 93
JPY 879,022 0.0496 43,599
KRW 950,394 0.0053 5,016
SGD 966 5.6159 5,425
MXN 33,896 0.3803 12,891
VND 18,270,172 0.0003 5,015
CAD 2 5.2272 10
PHP 89,034 0.1269 11,298
THB 19 0.2200 4
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
June 30, 2025
Foreign currency
Conversion rate RMB balance
balance
Accounts receivable
Including: USD 1,453,550 7.1586 10,405,383
HKD 2,971 0.9119 2,709
INR 12,497,711 0.0837 1,046,058
EUR 34,263 8.3899 287,463
JPY 40,360 0.0496 2,002
VND 11,496,309 0.0003 3,156
Accounts payable
Including: USD 668,955 7.1586 4,788,781
HKD 267,897 0.9119 244,295
INR 2,782,322 0.0837 232,880
EUR 3,012 8.3899 25,270
PLN 10 1.9786 20
JPY 17,092,217 0.0496 847,774
AUD 17 4.6767 80
VND 116,561,779 0.0003 31,996
Other receivables
Including: USD 75,244 7.1586 538,642
HKD 9,667 0.9119 8,815
INR 92,197 0.0837 7,717
EUR 2,332 8.3899 19,565
PLN 950 1.9786 1,880
JPY 27,697 0.0496 1,374
KRW 99,165 0.0053 523
SGD 98 5.6159 550
MXN 20,859 0.3803 7,933
VND 7,706,360 0.0003 2,115
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
June 30, 2025
Foreign currency
Conversion rate RMB balance
balance
Other payables
Including: USD 503,988 7.1586 3,607,848
HKD 69,525 0.9119 63,400
INR 1,300,398 0.0837 108,843
EUR 281 8.3899 2,358
PLN 464 1.9786 918
JPY 14,367,167 0.0496 712,611
KRW 692,706 0.0053 3,656
SGD 152 5.6159 854
MXN 26,326 0.3803 10,012
TWD 17 0.2461 4
AUD 11 4.6767 51
VND 92,431,003 0.0003 25,372
Short-term borrowings
Including: USD 215,552 7.1586 1,543,051
PHP 97,500 0.1269 12,373
(1) The Company acting as a lessee
From January to June 2025, short-term lease rents, low-value asset rents and income obtained from
subleasing right-of-use assets, for which the Group, acting as a lessee, chose simplified accounting,
were not significant.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(2) The Company acting as a lessor
① Operating leases where the Company acts as a lessor
Including: Income related to
Item Rental income variable lease payments not
included in lease receipts
Houses and buildings 121,230 -
Machinery equipment 3,646 -
Others 354 -
Total 125,230 -
② Finance leases where the Company acts as a lessor
Income related to variable
Financing
Item Sales gains and losses lease payments not included
income
in net lease investment
Finance lease - 12,767 -
Total - 12,767 -
Annual undiscounted lease receipts for the next five years
Annual undiscounted lease receipts
Item June 30, 2025 December 31, 2024
Year 1 210,491 209,266
Year 2 182,892 182,692
Year 3 165,097 167,400
Year 4 157,732 154,531
Year 5 156,389 155,548
Total undiscounted lease receipts
after five years
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
VI R&D expenses
Item January - June 2025 January - June 2024
Material costs 1,260,357 1,120,205
Labor costs 1,611,007 1,356,702
Depreciations and amortizations 1,045,187 1,229,349
Others 612,095 559,602
Total 4,528,646 4,265,858
Including: Expensed R&D expenses 3,339,314 2,868,939
Capitalized R&D expenses 1,189,332 1,396,919
Increase in current
Decrease in current period
Beginning period Ending
Item
balance Internal development Recognized as Included in profits balance
Others Others
expenditures intangible assets and losses
Display 1,165,388 1,085,311 - - (112,228) (996,410) 1,142,061
New
energy
photovolt
aics and 666,056 104,021 - (142,664) - - 627,413
other
silicon
materials
Total 1,831,444 1,189,332 - (142,664) (112,228) (996,410) 1,769,474
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
VII Changes to the Consolidation Scope
(1) Acquisition of equity of Guangzhou China Star Optoelectronics Display Co., Ltd.
As at April 1, 2025 (the "Acquisition Date"), the Group acquired 100% equity of Guangzhou
China Star Optoelectronics Display Co., Ltd. at a cash consideration of RMB 698,900,000, and
included such company into the scope of consolidation.
Cash consideration 698,900
Less: Share of fair value of identifiable net assets acquired 635,118
Goodwill amount 63,782
Fair value as at the Carrying amount as
acquisition date at the acquisition date
Total assets 7,584,667 7,233,438
Total liabilities 6,949,549 6,949,549
Net assets 635,118 283,889
Less: non-controlling interests - -
Net assets acquired 635,118 283,889
(2) Acquisition of equity of Guangzhou China Star Optoelectronics Technology Co., Ltd.
As at April 1, 2025 (the "Acquisition Date"), the Group acquired 100% equity of Guangzhou
China Star Optoelectronics Technology Co., Ltd. at a cash consideration of RMB 13,003,810,000,
and included such company into the scope of consolidation.
Cash consideration 13,003,808
Less: Share of fair value of identifiable net assets acquired 12,176,264
Goodwill amount 827,544
Fair value as at Carrying amount as
the acquisition at the acquisition
date date
Total assets 13,780,610 11,368,495
Total liabilities 1,604,346 1,604,346
Net assets 12,176,264 9,764,149
Less: non-controlling interests - -
Net assets acquired 12,176,264 9,764,149
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
VII Changes to Consolidation Scope (continued)
Hohhot Shuguang New Energy Shanxi Province Loufan County
Name of subsidiary
Co., Ltd. Huanshuo New Energy Co., Ltd.
Price for equity interest disposal - -
% equity interest disposed 100% 100%
Way of equity disposal Sale Sale
Time of loss of control June 30, 2025 June 30, 2025
Determination basis for time of loss The operating risk has been
The operating risk has been transferred
of control transferred
Difference between the disposal price
and the Company’s share of the
subsidiary’s net assets in the
(12,000) 25
consolidated financial statements
relevant to the disposed equity
interest
Xuzhou Huanneng New Energy Tianjin Binhai Huanxu New Energy
Name of subsidiary
Co., Ltd. Co., Ltd.
Price for equity interest disposal - -
% equity interest disposed 100% 100%
Way of equity disposal Sale Sale
Time of loss of control June 30, 2025 June 30, 2025
Determination basis for time of loss The operating risk has been
The operating risk has been transferred
of control transferred
Difference between the disposal price
and the Company’s share of the
subsidiary’s net assets in the
(2,077) (1,774)
consolidated financial statements
relevant to the disposed equity
interest
Heilongjiang Huanju New Energy Co.,
Name of subsidiary
Ltd.
Price for equity interest disposal -
% equity interest disposed 100%
Way of equity disposal Sale
Time of loss of control June 30, 2025
Determination basis for time of loss of control The operating risk has been transferred
Difference between the disposal price and the Company’s share of the
subsidiary’s net assets in the consolidated financial statements relevant to the (661)
disposed equity interest
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
VII Changes to Consolidation Scope (continued)
Name of investee Reason for change
Zhengzhou Shangzhao Electronic Technology Co., Ltd. Newly established
Chongqing Sunpiestore Technology Co., Ltd. Newly established
Chongqing Shangpai Zhengcheng Technology Co., Ltd. Newly established
Guizhou Shangpai Zhengcheng Technology Co., Ltd. Newly established
Urumqi Shangpai Lingchuang Trading Development Co., Ltd. Newly established
Anyang Shangyi Technology Co., Ltd. Newly established
Chongqing Shangpai Zhengyan Technology Co., Ltd. Newly established
Changji Shangpai Yifan Trading Co., Ltd. Newly established
Urumqi Shangpai Zhuoyao Trading Development Co., Ltd. Newly established
Shake Kawo (Xi'an) Technology Co., Ltd. Newly established
Xi'an Shengkai Shangpai Technology Co., Ltd. Newly established
Luoyang Shangyi Electronic Technology Co., Ltd. Newly established
Zhengzhou Shangfeng Electronic Technology Co., Ltd. Newly established
Xi'an Shake Jisu Technology Co., Ltd. Newly established
Luoyang Shangxuan Electronic Technology Co., Ltd. Newly established
Xi'an Shengfeng Shangpai Technology Co., Ltd. Newly established
Chongqing Shangpai Zhengqi Technology Co., Ltd. Newly established
Chongqing Shangpai Zhengfu Technology Co., Ltd. Newly established
Chongqing Shangpai Zhengxin Technology Co., Ltd. Newly established
Chongqing Shangpai Zhenghong Technology Co., Ltd. Newly established
Chongqing Shangpai Zhengrong Technology Co., Ltd. Newly established
Luoyang Shangwu Electronic Technology Co., Ltd. Newly established
Zhengzhou TiTi Yunchuang Technology Co., Ltd. Newly established
Shenzhen Pulin Gaote Circuit Co., Ltd. Acquisition
Maoxing Holdings Limited Capital increase for controlling interest
TCL International Marketing Limited (BVI) De-registered
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
VIII Interests in Other Entities
(1) Principal subsidiaries
Shareholding How
Place of Nature of Principal place
Name of investee percentage subsidiary was
registration business of business
Direct Indirect obtained
TCL China Star Optoelectronics Technology Manufacturing
Shenzhen Shenzhen 82.21% - Incorporated
Co., Ltd. and sales
Shenzhen China Star Optoelectronics Bandaoti Manufacturing
Shenzhen Shenzhen - 62.68% Incorporated
Display Technology Co., Ltd. and sales
Guangzhou China Ray Optoelectronic Materials Research and
Guangzhou Guangzhou - 100.00% Incorporated
Co., Ltd. development
Wuhan China Star Optoelectronics Technology Manufacturing
Wuhan Wuhan - 98.22% Incorporated
Co., Ltd. and sales
Wuhan China Star Optoelectronics Bandaoti Manufacturing
Wuhan Wuhan - 62.38% Incorporated
Display Technology Co., Ltd. and sales
China Star Optoelectronics International (HK)
Hong Kong Sales Hong Kong - 100.00% Incorporated
Limited
Business
China Display Optoelectronics Technology Investment combination not
Bermuda Bermuda - 64.20%
Holdings Limited holding under common
control
China Display Optoelectronics Technology Manufacturing
Huizhou Huizhou - 100.00% Incorporated
(Huizhou) Co., Ltd. and sales
Wuhan China Display Optoelectronics Manufacturing
Wuhan Wuhan - 100.00% Incorporated
Technology Co., Ltd. and sales
Business
Suzhou China Star Optoelectronics Technology Manufacturing combination not
Suzhou Suzhou - 100.00%
Co., Ltd. and sales under common
control
Business
Suzhou China Star Optoelectronics Display Co., Manufacturing combination not
Suzhou Suzhou - 100.00%
Ltd. and sales under common
control
Guangzhou China Star Optoelectronics Manufacturing
Guangzhou Guangzhou - 55.00% Incorporated
Bandaoti Display Technology Co., Ltd. and sales
Business
Guangzhou China Star Optoelectronics Display Manufacturing combination not
Guangzhou Guangzhou 100.00%
Co., Ltd. and sales under common
control
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
VIII Interests in Other Entities (Continued)
(1) Composition of key subsidiaries (Continued)
Principal Shareholding How
Place of Nature of
Name of investee place of percentage subsidiary was
registration business
business Direct Indirect obtained
Business
Guangzhou China Star Optoelectronics Manufacturing combination not
Guangzhou Guangzhou 100.00%
Technology Co., Ltd. and sales under common
control
Highly Information Industry Co., Ltd. Product - Incorporated
Beijing Beijing 66.46%
distribution
Beijing Sunpiestore Technology Co., Ltd. Beijing Sales Beijing - 53.45% Incorporated
Beijing Lingyun Data Technology Co., Ltd. Beijing Sales Beijing - 60.00% Incorporated
TCL Technology Group Finance Co., Ltd. Huizhou Financial Huizhou 82.00% 18.00% Incorporated
Shenzhen Dongxi Jiashang Investment Incorporated
Shenzhen Shenzhen 100.00% -
Entrepreneurship Investment Co., Ltd. business
Ningbo TCL Equity Investment Ltd. Investment Incorporated
Ningbo Shenzhen 100.00% -
business
TCL Technology Park (Huizhou) Co., Ltd. Property Incorporated
Huizhou Huizhou - 100.00%
management
TCL Technology Investments Limited Investment Incorporated
Hong Kong Hong Kong 100.00% -
business
Business
TCL Zhonghuan Renewable Energy Manufacturing combination not
Tianjin Tianjin 2.55% 27.36%
Technology Co., Ltd. and sales under common
control
Business
Tianjin Printronics Circuit Corporation Manufacturing combination not
Tianjin Tianjin - 29.50%
and sales under common
control
Business
Inner Mongolia Zhonghuan Crystal Inner Manufacturing combination not
Inner Mongolia - 83.96%
Materials Co., Ltd. Mongolia and sales under common
control
Business
Ningxia Zhonghuan Solar Material Co., Ningxia Hui Ningxia Hui
Manufacturing combination not
Autonomous Autonomous - 100.00%
Ltd. and sales under common
Region Region
control
Business
Tianjin Huan'ou Bandaoti Manufacturing combination not
Tianjin Tianjin - 100.00%
Material&Technology Co., Ltd. and sales under common
control
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
VIII Interests in Other Entities (Continued)
(1) Composition of key subsidiaries (Continued)
Principal Shareholding
Place of How subsidiary was
Name of investee Nature of business place of percentage
registration obtained
business Direct Indirect
Wuxi Zhonghuan Applied Business combination
Manufacturing and
Jiangsu Jiangsu - 98.08% not under common
Materials Co., Ltd. sales
control
Inner Mongolia Zhonghuan Solar Business combination
Inner Manufacturing and Inner
- 100.00% not under common
Material Co., Ltd. Mongolia sales Mongolia
control
Business combination
Tianjin Huanou International
Tianjin Sales Tianjin - 100.00% not under common
Silicon Material Co., Ltd.
control
Business combination
Zhonghuan Hong Kong Holding
Hong Kong Import and export Hong Kong - 100.00% not under common
Limited
control
Business combination
Zhonghuan Advanced Bandaoti Manufacturing and
Jiangsu Jiangsu 7.35% 35.30% not under common
Technology Co., Ltd. sales
control
Business combination
Huansheng Solar (Jiangsu) Co., Manufacturing and
Jiangsu Jiangsu - 100.00% not under common
Ltd. sales
control
Business combination
Huansheng New Energy (Jiangsu) Manufacturing and
Jiangsu Jiangsu - 95.74% not under common
Co., Ltd. sales
control
Business combination
Huansheng New Energy (Tianjin) Manufacturing and
Tianjin Tianjin - 87.33% not under common
Co., Ltd. sales
control
Power generation, Business combination
Tianjin Zhonghuan New Energy power transmission,
Tianjin Tianjin - 100.00% not under common
Co., Ltd. power supply
control
(distribution)
Business combination
Tianjin Huanrui Electronic
Tianjin Purchase Tianjin - 100.00% not under common
Technology Co., Ltd.
control
Business combination
Moka International Limited BVI Investment holding BVI - 100.00% not under common
control
Business combination
Moka Technology (Guangdong) Manufacturing and
Huizhou Huizhou - 100.00% not under common
Co., Ltd. sales
control
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
VIII Interests in Other Entities (Continued)
(2) Subsidiaries with substantial non-controlling interests
Profit or loss
Dividends distributed Balance of
Shareholding ratio attributable to
to minority minority interests
Name of subsidiary of minority minority
shareholders in current at the end of the
shareholders shareholders in
period period
current period
TCL China Star
Optoelectronics Technology 17.79% 1,684,010 - 41,348,425
Co., Ltd.
TCL Zhonghuan Renewable
Energy Technology Co., Ltd.
Highly Information Industry
Co., Ltd.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
VIIIInterests in Other Entities (Continued)
(2) Subsidiaries with substantial non-controlling interests (continued)
The key financial information of the above subsidiaries is as follows:
June 30, 2025 December 31, 2024
Current Non-current Current Non-current Total Current Non-current Total Current Non-current Total
Total assets
assets assets liabilities liabilities liabilities assets assets assets liabilities liabilities liabilities
TCL China
Star
Optoelectron
ics
Technology
Co., Ltd.
TCL
Zhonghuan
Renewable
Energy
Technology
Co., Ltd.
Highly
Information
Industry Co.,
Ltd.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
VIIIInterests in Other Entities (Continued)
(2) Subsidiaries with substantial non-controlling interests (continued)
The key financial information of the above subsidiaries is as follows:
January - June 2025 January - June 2024
Total Net cash generate Total Net cash generate
Operating Operating
Net profits comprehensive from/used in Net profits comprehensive from/used in
revenue revenue
income operating activities income operating activities
TCL China Star
Optoelectronics
Technology Co.,
Ltd.
TCL Zhonghuan
Renewable Energy 13,398,123 (4,836,171) (4,890,135) 523,174 16,213,493 (3,175,764) (3,175,713) 128,102
Technology Co., Ltd.
Highly Information
Industry Co., Ltd.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
VII Interests in Other Entities (Continued)
I
(1) Basic information about principal joint ventures and associates
Shareholding
Principal place percentage
Strategic to the
of
Name of investee Nature of business Group’s activities or
business/place
not Direct Indirect
of registration
Associate
Bank of Shanghai Co.,
Shanghai Financial Yes 5.76% -
Ltd.
Note: As of the date of issuance of this Report, Bank of Shanghai Co., Ltd. has not announced
information on its H1 2025 report.
(2) The Company had no significant joint ventures in the Reporting Period.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
IX Risks Related to Financial Instruments
The purpose of the Company’s risk management is to achieve a right balance between the risk and the
benefit and maximally reduce the adverse impact of financial risks on the Company’s financial
performance. Based on such purpose, the Company has established various risk management policies to
recognize and analyze possible risks to be encountered by the Company, set an appropriate risk acceptable
level and design corresponding internal control procedures so as to control the Company’s risk level. In
addition, the Company will regularly review these risk management policies and relevant internal control
systems in order to adapt to the market or handle various changes in the Company’s operating activities.
Meanwhile, the Company’s internal audit department will also regularly or randomly check whether the
implementation of internal control system conforms to relevant risk management policies. In fact, the
Company has applied proper diversified investment and business portfolio to disperse various financial
instrument risks and worked out corresponding risk management policies to reduce the risk of concentrating
on one single industry, specific region or specific counterpart.
The main risks arising from the Company's financial instruments are credit risk, liquidity risk, and market
risk (mainly foreign exchange risk and interest rate risk).
(1) Credit risk
Credit risk refers to the risk of financial loss caused by any party of financial instruments to another party
due to the failure in fulfilling performance obligations. The Group controls the credit risk based on the
specific group classification, and credit risk mainly results from bank deposits, due from the central bank,
notes receivable, accounts receivable, loans and advances to customers and other receivables.
The Group’s bank deposits and due from the central bank are mainly deposited in stated-owned banks and
other large and medium-sized listed banks. The Group considers no significant credit risk to exist, and no
significant loss to be caused by the counterpart’s breach of contract.
For notes receivable, accounts receivable, loans and advances to customers, and other receivables, the
Group has established relevant policies to control the credit risk exposure, and will evaluate the client’s
credit qualification and determine the corresponding credit period based on the client’s financial status, the
possibility of obtaining guarantees from the third party, relevant credit records and other factors (like the
current market situation). In the meantime, the Group will regularly monitor the client's credit records. For
any client with unfavorable credit records, the Group will issue written reminders, shorten the credit period
or cancel the credit period so as to keep the Group's overall credit risk controllable.
As of June 30, 2025, no significant guarantee or other credit enhancements held due to the debtor mortgage
was found in the Group.
(2) Liquidity risk
Liquidity risk refers to the risk of capital shortage the Company encounters when the Company is fulfilling
the obligation of settlement in the form of cash or other financial assets. Various subsidiaries under the
Group shall be responsible for predicting their own cash flow. The financial department of the headquarters
shall firstly summarize predictions on the cash flow of various subsidiaries and then continuously monitor
the short-term and long-term fund demand at the Group's level so as to maintain sufficient cash reserves and
negotiable securities that can be realized at any time; meanwhile, special efforts shall also be made to
continuously monitor whether provisions stated in the loan agreement are observed and to make major
financial institutions promise to provide sufficient reserve funds so as to satisfy short-term and long-term
capital demand.
As of June 30, 2025, the Group had no liquidity risk events.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
IX Risks Related to Financial Instruments (Continued)
(3) Market risk
(a) Foreign exchange risk
The Group has carried out various economic activities around the world, including manufacturing, selling,
investment, financing etc., and corresponding interest rate fluctuation risks exist in the Group’s foreign
currency assets and liabilities and future foreign currency transactions.
The Group always regards "Locking the Cost and Avoiding Possible Risks" as the foreign currency risk
management goal. Through the natural hedging of settlement currency, matching with the foreign currency
liabilities, signing simple derivative products closely related to the owner's operation and meeting
corresponding hedge accounting treatment requirements and applying other management methods, the
foreign currency risk exposure can be controlled within a reasonable scope and the impact of interest rate
fluctuations on the Group's overall profit and loss will be reduced.
(a) As at June 30, 2025, foreign-currency asset and liability items with significant exposure to exchange risk
were mainly denominated in US dollars. After management, the total risk exposure of the US dollar-
denominated items had a net asset exposure of USD 712,668,000, equivalent to RMB 5,101,706,000 based
on the spot exchange rate on the balance sheet date. The differences arising from the translation of foreign
currency financial statements were not included.
The Group applies the following exchange rate of USD against RMB:
Average exchange Exchange rate at
rate period-end
January - June 2025 June 30, 2025
USD/RMB 7.1778 7.1586
Provided that other risk variables remained unchanged except for the exchange rate, a 5%
depreciation/appreciation in RMB as a result of the changes in the exchange rate of RMB against USD
would cause an increase/decrease of RMB 255,085,000 in shareholders' equity and net profit, respectively
of the Group on June 30, 2025.
The above-mentioned sensitivity analysis is made based on the assumption that the exchange rate changes
on the balance sheet date, and the financial instruments held by the Group on the balance sheet date
exposed to the exchange risk are recalculated based on the changed exchange rate. The above analysis does
not include differences arising from the translation of foreign currency financial statements.
(b) Interest risk
The Group's interest rate risk mainly results from interest-bearing bank borrowings adopting floating
interest rates, and the Group determined the proportion of fixed interest rates and floating interest rates
based on the market environment and its risk tolerance. By June 30, 2025, the Group's liabilities with
floating interest rates accounted for 78.89% of its total interest-bearing liabilities. And the Group will
continuously monitor the interest rates and make corresponding adjustments according to the specific
market changes so as to avoid interest rate risk.
(4) Offset of financial assets and financial liabilities
As at the end of the reporting period, the amount offset between the financial assets and financial liabilities
recognized under executable master netting arrangements or similar agreements was RMB 4,283,269,000.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
X Classification of Financial Instruments and Fair Value
Fair value of financial instruments and levels
Level 1 refers to the (unadjusted) quotation of the same type of assets or liabilities on the active
market; and the Company mainly adopts the closing price as the value of a financial asset. Financial
instruments of level 1 mainly include exchange-listed stocks and bonds.
Level 2 refers to the directly or indirectly observable input of a financial asset or liability that does
not belong to level 1.
Level 3 refers to the input of a financial asset or liability determined based on variables other than
the observable market data (non-observable input).
The Company adopts the active market quotation as the fair value of a level 1 financial asset.
Items measured at continuous level 2 fair value adopt the following valuation techniques and
parameters:
Derivative financial assets and liabilities are multiple IRS and CCS signed between the Group and
financial institutions. The Company adopts the quotations provided by the financial institution in
valuation.
Items measured at continuous level 3 fair value adopt the following valuation techniques and
parameters (nature and quantity)
Other non-current financial assets measured at continuous level 3 fair value are mainly unlisted
equity investments held by the Company. In measuring the fair value, the Company mainly adopts
the valuation technique of comparison with listed companies, taking into account the price of
similar securities and liquidity discount.
Held-for-trading financial assets measured at continuous level 3 fair value are mainly wealth
management products held by the Company. In the valuation of the fair value, the Company adopts
the method of discounting future cash flows based on the agreed expected yield rate.
The Company’s receivables financing was bank acceptance notes and trade acceptance notes, of
which the market prices were determined based on the transfer or discounted amounts.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
X Classification of Financial Instruments and Fair Value (Continued)
Financial assets
Item Level 1 Level 2 Level 3 Total
Held-for-trading financial assets (see Note
V. 2)
Derivative financial assets (see Note V. 3) - 168,726 - 168,726
Receivables financing (see Note V. 6) - - 3,959,626 3,959,626
Investments in other equity instruments
(see Note V. 16) 20,326 - 393,991 414,317
Other non-current financial assets (see
Note V. 17) 399,029 187,520 1,987,422 2,573,971
Total assets continuously measured at fair
value
Financial liabilities
Item Level 1 Level 2 Level 3 Total
Held-for-trading financial liabilities
(see Note V. 31) - 7,497 234,600 242,097
Derivative financial liabilities (see
Note V. 32) - 85,376 - 85,376
Others - - 201,469 201,469
Total liabilities continuously measured
at fair value - 92,873 436,069 528,942
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions
Explanation of The Company’s Absence of Controlling 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, holding 1,266,680,807 shares in total and becoming the largest
shareholder of the Company.
As per Article 216 of the Company Law, a controlling shareholder refers to a shareholder who owns over 50% of a limited
liability company’s total capital or over 50% of a joint stock company’s total share capital; or, despite the ownership of less
than 50% of a limited liability company’s total capital or less than 50% of a joint stock company’s total number of shares,
who can still prevail in the resolution of a meeting of shareholders or a general meeting of shareholders according to the
voting rights corresponding to their interest in the limited liability company’s total capital or the joint stock company’s total
number of shares. According to the definition above, the Company has no controlling shareholder.
Information about such related parties:
Company name Relationship with the Company
Zhonghuan Feilang (Tianjin) Technology Co., Ltd. Joint venture
Huaxia CPV (Inner Mongolia) Power Co., Ltd. Joint venture
Tianjin Huanyan Technology Co., Ltd. Joint venture
TCL Microchip Technology (Guangdong) Co., Ltd. and its subsidiaries Joint venture and its subsidiary
Huizhou TCL Human Resources Service Co., Ltd. and its subsidiaries Joint venture and its subsidiary
Tianjin Zhonghuan Haihe Intelligent Manufacturing Fund Partnership
Associate
(Limited Partnership)
Inner Mongolia Xinhuan Silicon Energy Technology Co., Ltd. Associate
LG Electronics (Huizhou) Co., Ltd. Associate
Aijiexu New Electronic Display Glass (Shenzhen) Co., Ltd. Associate
Shanghai Feilihua Shichuang Technology Co., Ltd. Associate
Zhonghuan Aineng (Beijing) Technology Co., Ltd. Associate
Inner Mongolia Xinhua Bandaoti Technology Co., Ltd. Associate
Hubei Changjiang Hezhi Equity Investment Fund Partnership (Limited
Associate
Partnership)
Wuhan Guochuangke Optoelectronic Equipment Co., Ltd. Associate
Ningbo Dongpeng Heli Equity Investment Partnership (Limited Partnership) Associate
China Innovative Capital Management Limited Associate
Shenzhen Qianhai Sailing International Supply Chain Management Co., Ltd.
Associate and its subsidiaries
and its subsidiaries
Inner Mongolia Huanye Material Co., Ltd. and its subsidiaries Associate and its subsidiaries
Inner Mongolia Zhongjing Science and Technology Research Institute Co.,
Associate and its subsidiaries
Ltd. and its subsidiaries
Shenzhen Jucai Supply Chain Technology Co., Ltd. and its subsidiaries Associate and its subsidiaries
Jiangsu Jixin Bandaoti Silicon Material Research Institute Co., Ltd. and its
Associate and its subsidiaries
subsidiaries
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XIX Related Parties and Related-Party Transactions (Continued)
Company name Relationship with the Company
Wuxi TCL Venture Capital Partnership (Limited Partnership) and its subsidiaries Associate and its subsidiaries
Ningbo Dongpeng Weichuang Equity Investment Partnership (Limited Partnership)
Associate and its subsidiaries
and its subsidiaries
Yixing Jiangnan Tianyuan Venture Capital Company (Limited Partnership) and its
Associate and its subsidiaries
subsidiaries
Nanjing Zijin A Dynamic Investment Partnership (Limited Partnership) and its
Associate and its subsidiaries
subsidiaries
Purplevine Holdings Limited and its subsidiaries Associate and its subsidiaries
Shenzhen Tixiang Business Management Technology Co., Ltd. and its subsidiaries Associate and its subsidiaries
Shanghai Gen Auspicious Venture Capital Partnership (Limited Partnership) and its
Associate and its subsidiaries
subsidiaries
TCL Industries Holdings Co., Ltd. and its subsidiaries Other relationships
Thunderbird Innovation Technology (Shenzhen) Co., Ltd. and its subsidiaries Other relationships
Joint ventures and subsidiaries of TCL Industries Holdings Co., Ltd. Other relationships
(1) Selling raw materials and finished goods (Note 1)
January - June 2025 January - June 2024
TCL Industries Holdings Co., Ltd. and its subsidiaries 9,933,434 10,125,470
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Shenzhen Jucai Supply Chain Technology Co., Ltd. and its
subsidiaries
Zhonghuan Feilang (Tianjin) Technology Co., Ltd. 6,130 4,674
TCL Microchip Technology (Guangdong) Co., Ltd. and its
subsidiaries
Inner Mongolia Xinhuan Silicon Energy Technology Co., Ltd. 203 -
Inner Mongolia Huanye Material Co., Ltd. and its subsidiaries 2 -
Maxeon Solar Technologies, Ltd. and its subsidiaries - 726,047
LG Electronics (Huizhou) Co., Ltd. - 589
Purplevine Holdings Limited and its subsidiaries - 71
Tianjin Qiyier Communication & Broadcasting Co., Ltd. and its
- 10
subsidiaries
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
(2) Purchasing raw materials and finished products (Note 2)
January - June 2025 January - June 2024
Aijiexu New Electronic Display Glass (Shenzhen) Co., Ltd. 1,816,831 2,320,232
TCL Industries Holdings Co., Ltd. and its subsidiaries 1,200,340 918,178
Inner Mongolia Xinhuan Silicon Energy Technology Co., Ltd. 1,054,199 572,585
Shenzhen Jucai Supply Chain Technology Co., Ltd. and its
subsidiaries
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
TCL Microchip Technology (Guangdong) Co., Ltd. and its
subsidiaries
Inner Mongolia Xinhua Bandaoti Technology Co., Ltd. 8,879 -
Inner Mongolia Zhongjing Science and Technology Research
Institute Co., Ltd. and its subsidiaries
Inner Mongolia Sheng’ou Electromechanical Engineering Co.,
- 152,875
Ltd.
Inner Mongolia Huanye Material Co., Ltd. and its subsidiaries - 111,848
Purplevine Holdings Limited and its subsidiaries - 11,615
Zhonghuan Feilang (Tianjin) Technology Co., Ltd. - 779
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
(3) Receiving funding (Note 3)
January - June 2025 January - June 2024
TCL Industries Holdings Co., Ltd. and its subsidiaries 807,296 79,134
Shenzhen Jucai Supply Chain Technology Co., Ltd. and its
subsidiaries
Huizhou TCL Human Resources Service Co., Ltd. and its
subsidiaries
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Wuxi TCL Venture Capital Partnership (Limited Partnership)
and its subsidiaries
Ningbo Dongpeng Weichuang Equity Investment Partnership
(Limited Partnership) and its subsidiaries
Yixing Jiangnan Tianyuan Venture Capital Company (Limited
Partnership) and its subsidiaries
Nanjing Zijin A Dynamic Investment Partnership (Limited
Partnership) and its subsidiaries
TCL Microchip Technology (Guangdong) Co., Ltd. and its
subsidiaries
Ningbo Dongpeng Heli Equity Investment Partnership (Limited
- 34
Partnership)
Shanghai Gen Auspicious Venture Capital Partnership (Limited
- 11
Partnership) and its subsidiaries
(4) Rendering of funds (Note 3)
January - June 2025 January - June 2024
TCL Industries Holdings Co., Ltd. and its subsidiaries 194,623 226
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
(5) Leases
January - June 2025 January - June 2024
Rental income
TCL Industries Holdings Co., Ltd. and its subsidiaries 32,037 31,185
Aijiexu New Electronic Display Glass (Shenzhen) Co., Ltd. 12,767 22,810
TCL Microchip Technology (Guangdong) Co., Ltd. and its
subsidiaries
Shenzhen Jucai Supply Chain Technology Co., Ltd. and its
subsidiaries
Jiangsu Jixin Bandaoti Silicon Material Research Institute
Co., Ltd. and its subsidiaries
Shenzhen Tixiang Business Management Technology Co.,
Ltd. and its subsidiaries
Huizhou TCL Human Resources Service Co., Ltd. and its
subsidiaries
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Inner Mongolia Huanye Material Co., Ltd. and its
- 11,519
subsidiaries
Zhonghuan Feilang (Tianjin) Technology Co., Ltd. - 517
January - June 2025 January - June 2024
Rental expense
TCL Industries Holdings Co., Ltd. and its subsidiaries 23,549 27,110
Tianjin Huanyan Technology Co., Ltd. 1,134 2,214
TCL Microchip Technology (Guangdong) Co., Ltd. and its
subsidiaries
Huaxia CPV (Inner Mongolia) Power Co., Ltd. - 4,732
Inner Mongolia Zhongjing Science and Technology
- 1,673
Research Institute Co., Ltd. and its subsidiaries
Shenzhen Jucai Supply Chain Technology Co., Ltd. and its
- 123
subsidiaries
(6) Rendering or receipt of services
January - June 2025 January - June 2024
Rendering of services 165,446 163,883
Receipt of services 963,539 946,617
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
(7) Collection/Payment of interest (Note 3)
January - June 2025 January - June 2024
Interest received 2,818 7,806
Interest paid 11,033 10,358
(8) Remuneration of key management personnel (Note 4)
January - June 2025 January - June 2024
Remuneration of key management personnel 6,250 6,146
Note 1 Selling raw materials and finished goods to related parties
The Company sells raw materials, spare parts, auxiliary materials, and finished goods to its joint ventures
and associates at market prices, which are settled in the same way as non-related-party transactions. These
related-party transactions have no material impact on the Company’s net profits but play an important role
as to the Company’s continued operations.
Note 2 Purchasing raw materials and finished goods from related parties
The Company purchases raw materials and finished goods from its joint ventures and associates at prices
similar to those paid to third-party suppliers, which are settled in the same way as non-related-party
transactions. These related-party transactions have no material impact on the Company’s net profits but play
an important role as to the Company’s continued operations.
Note 3 Providing funding for or receiving funding from related parties and corresponding interest received or paid
The Company set up a settlement center in 1997 and TCL Technology Group Finance Co., Ltd. in 2006
(together, the "Financial Settlement Center"). The Financial Settlement Center is responsible for the
financial affairs of the Company, including capital operation and allocation. The Center settles accounts
with the Company’s subsidiaries, joint ventures, and associates and pays the interest. It also allocates the
money deposited by the subsidiaries, joint ventures and associates in it to these enterprises and charges
interest. The interest income and expense between the Company and the Center are calculated according to
the interest rates declared by the People’s Bank of China. The funding amount provided refers to the
outstanding borrowings due from the Center to related parties, while the funding amount received means the
balances of related parties’ deposits in the Center.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
Note 4 The remunerations of key management personnel include fixed salaries, allowances, and performance
bonuses received from the Company by the directors, supervisors, and senior executives of the Company
during their terms of office, but do not include share-based payments.
Note 5 Maxeon Solar Technologies, Ltd. was transformed from an associate to a subsidiary in August 2024, and
the transactions between Maxeon Solar Technologies, Ltd. and its subsidiaries and the Group before such
transaction date are related party transactions.
Note 6 The company disposed of its equity in Tianjin Qiyier Communication & Broadcasting Co., Ltd. in July
subsidiaries and the Group before such transaction date are related party transactions.
Note 7 The company disposed of its equity in Inner Mongolia Sheng’ou Electromechanical Engineering Co., Ltd.
in December 2024, and the transactions between Inner Mongolia Sheng’ou Electromechanical Engineering
Co., Ltd. and the Group before such transaction date are related-party transactions.
(1) Accounts receivable
June 30, 2025 December 31, 2024
TCL Industries Holdings Co., Ltd. and its subsidiaries 4,402,213 5,317,484
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Shenzhen Jucai Supply Chain Technology Co., Ltd. and
its subsidiaries
Tianjin Zhonghuan Haihe Intelligent Manufacturing
Fund Partnership (Limited Partnership)
Zhonghuan Feilang (Tianjin) Technology Co., Ltd. 3,460 2,448
TCL Microchip Technology (Guangdong) Co., Ltd. and
its subsidiaries
Inner Mongolia Huanye Material Co., Ltd. and its
subsidiaries
Inner Mongolia Xinhuan Silicon Energy Technology
Co., Ltd.
Inner Mongolia Zhongjing Science and Technology
Research Institute Co., Ltd. and its subsidiaries
Jiangsu Jixin Bandaoti Silicon Material Research
- 20
Institute Co., Ltd. and its subsidiaries
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
(2) Receivables financing
June 30, 2025 December 31, 2024
TCL Microchip Technology (Guangdong) Co., Ltd. and
- 151
its subsidiaries
- 151
(3) Accounts payable
June 30, 2025 December 31, 2024
TCL Industries Holdings Co., Ltd. and its subsidiaries 1,954,552 1,708,430
Aijiexu New Electronic Display Glass (Shenzhen) Co.,
Ltd.
Shenzhen Jucai Supply Chain Technology Co., Ltd. and
its subsidiaries
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Inner Mongolia Zhongjing Science and Technology
Research Institute Co., Ltd. and its subsidiaries
TCL Microchip Technology (Guangdong) Co., Ltd. and
its subsidiaries
Inner Mongolia Huanye Material Co., Ltd. and its
subsidiaries
Joint ventures and subsidiaries of TCL Industries
Holdings Co., Ltd.
Huizhou TCL Human Resources Service Co., Ltd. and
its subsidiaries
Purplevine Holdings Limited and its subsidiaries 420 -
Inner Mongolia Xinhua Bandaoti Technology Co., Ltd. 280 -
Zhonghuan Feilang (Tianjin) Technology Co., Ltd. 101 87
Shanghai Feilihua Shichuang Technology Co., Ltd. 9 9
Inner Mongolia Sheng’ou Electromechanical
- 11,265
Engineering Co., Ltd.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
Related Parties and Related-Party Transactions (Continued)
(4) Other receivables
June 30, 2025 December 31, 2024
TCL Industries Holdings Co., Ltd. and its subsidiaries 157,834 143,339
TCL Microchip Technology (Guangdong) Co., Ltd. and its
subsidiaries
Inner Mongolia Zhongjing Science and Technology
Research Institute Co., Ltd. and its subsidiaries
Inner Mongolia Xinhuan Silicon Energy Technology Co.,
Ltd.
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Shenzhen Jucai Supply Chain Technology Co., Ltd. and its
subsidiaries
Aijiexu New Electronic Display Glass (Shenzhen) Co., 3,242 3,382
Ltd.
Zhonghuan Aineng (Beijing) Technology Co., Ltd. 3,103 3,053
Inner Mongolia Huanye Material Co., Ltd. and its
subsidiaries
Purplevine Holdings Limited and its subsidiaries 500 -
Jiangsu Jixin Bandaoti Silicon Material Research Institute
Co., Ltd. and its subsidiaries
Huizhou TCL Human Resources Service Co., Ltd. and its
subsidiaries
Joint ventures and subsidiaries of TCL Industries Holdings
Co., Ltd.
Thunderbird Innovation Technology (Shenzhen) Co., Ltd.
- 900
and its subsidiaries
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
X
(5) Other payables
June 30, 2025 December 31, 2024
Tianjin Zhonghuan Haihe Intelligent Manufacturing Fund
Partnership (Limited Partnership)
TCL Industries Holdings Co., Ltd. and its subsidiaries 272,718 249,033
Huizhou TCL Human Resources Service Co., Ltd. and its
subsidiaries
Shenzhen Jucai Supply Chain Technology Co., Ltd. and its
subsidiaries
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Aijiexu New Electronic Display Glass (Shenzhen) Co.,
Ltd.
Wuxi TCL Venture Capital Partnership (Limited
Partnership) and its subsidiaries
Wuhan Guochuangke Optoelectronic Equipment Co., Ltd. 2,025 1,714
Tianjin Huanyan Technology Co., Ltd. 1,134 1,785
TCL Microchip Technology (Guangdong) Co., Ltd. and its
subsidiaries
Ningbo Dongpeng Weichuang Equity Investment
Partnership (Limited Partnership) and its subsidiaries
Yixing Jiangnan Tianyuan Venture Capital Company
(Limited Partnership) and its subsidiaries
Joint ventures and subsidiaries of TCL Industries Holdings
Co., Ltd.
Thunderbird Innovation Technology (Shenzhen) Co., Ltd.
and its subsidiaries
Nanjing Zijin A Dynamic Investment Partnership (Limited
Partnership) and its subsidiaries
China Innovative Capital Management Limited 57 57
Inner Mongolia Zhongjing Science and Technology
Research Institute Co., Ltd. and its subsidiaries
Ningbo Dongpeng Heli Equity Investment Partnership
(Limited Partnership)
Shenzhen Tixiang Business Management Technology Co.,
Ltd. and its subsidiaries
Jiangsu Jixin Bandaoti Silicon Material Research Institute
Co., Ltd. and its subsidiaries
Hubei Changjiang Hezhi Equity Investment Fund
- 345,430
Partnership (Limited Partnership)
Purplevine Holdings Limited and its subsidiaries - 100
Inner Mongolia Huanye Material Co., Ltd. and its
- 60
subsidiaries
Inner Mongolia Sheng’ou Electromechanical Engineering
- 12
Co., Ltd.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
(6) Non-current liabilities due within one year
June 30, 2025 December 31, 2024
TCL Industries Holdings Co., Ltd. and its subsidiaries 21,611 21,695
(7) Prepayments
June 30, 2025 December 31, 2024
TCL Industries Holdings Co., Ltd. and its subsidiaries 16,099 23,535
Tianjin Huanyan Technology Co., Ltd. 4,857 4,857
Shenzhen Jucai Supply Chain Technology Co., Ltd. and
its subsidiaries
Inner Mongolia Huanye Material Co., Ltd. and its
subsidiaries
Inner Mongolia Xinhuan Silicon Energy Technology Co.,
Ltd.
Huizhou TCL Human Resources Service Co., Ltd. and its
subsidiaries
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
(8) Advances from customers
June 30, 2025 December 31, 2024
TCL Industries Holdings Co., Ltd. and its subsidiaries 202 312
Shenzhen Jucai Supply Chain Technology Co., Ltd. and its
subsidiaries
(9) Contract liabilities
June 30, 2025 December 31, 2024
TCL Industries Holdings Co., Ltd. and its subsidiaries 227,156 28,727
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
(10) Lease liabilities
June 30, 2025 December 31, 2024
TCL Industries Holdings Co., Ltd. and its subsidiaries 25,928 33,441
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
(11) Deposits from related parties (note)
June 30, 2025 December 31, 2024
TCL Industries Holdings Co., Ltd. and its subsidiaries 807,357 4,808
Shenzhen Jucai Supply Chain Technology Co., Ltd. and
its subsidiaries
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Huizhou TCL Human Resources Service Co., Ltd. and its
subsidiaries
TCL Microchip Technology (Guangdong) Co., Ltd. and
its subsidiaries
Note: These deposits are made by related parties in the Company’s subsidiary TCL Technology Group Finance
Co., Ltd.
(12) Other non-current assets
June 30, 2025 December 31, 2024
Purplevine Holdings Limited and its subsidiaries 49,573 71,711
TCL Industries Holdings Co., Ltd. and its subsidiaries 20,460 21,823
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XII Share-based Payments
Total amount of each equity instrument granted by the Company in the current
period
Total amount of each equity instrument exercised by the Company in the current
period
Total amount of the Company’s equity instruments that expired in the current period 10,492,000 shares
Range of exercise prices of the Company’s stock options outstanding and remaining
contract term at the end of the period
Range of exercise prices of the Company’s other equity instruments outstanding and
remaining contract term at the end of the period
(1) Employee Stock Ownership Plan (Phase II) 2021-2023
According to the Proposal on the Management Measures of the Company’s Employee Stock Ownership Plan (Phase II)
Employee Stock Purchase Plan (Phase II) 2021--2023 (Draft) adopted by the resolution of the 19th Meeting of the Seventh-
term Board of Directors and the 14th Meeting of the Seventh-term Board of Supervisors, 32.6211 million shares were
granted to no more than 3,600 awardees at the price of RMB 4.35 on July 22, 2022.
On May 31, 2023, the Management Committee of the Phase II Shareholding Plan approved the vesting of a total of
approximately 30,650,000 shares to the holders of the current phase shareholding plan, based on the company's performance,
the performance of its subordinate operating units, and the achievement of individual performance targets. Of these shares,
June 2025.
(2) Employee Stock Ownership Plan (Phase III) 2021-2023
According to the Proposal on the Management Measures of the Company’s Employee Stock Ownership Plan (Phase III)
Company’s Employee Stock Purchase Plan (Phase III) 2021-2023 (Draft) adopted by the resolution of the 32nd Meeting of
the Seventh-term Board of Directors and the 21st Meeting of the Seventh-term Board of Supervisors, 64.99 million shares
were granted to no more than 3,600 awardees at the price of RMB 3.94 on June 16, 2023.
On May 30, 2024, the Management Committee of the Phase III Shareholding Plan approved the vesting of a total of
performance of its subordinate operating units, and the achievement of individual performance targets. Of these shares,
(3) Employee Stock Ownership Plan 2024
According to the Second Meeting of the Eighth-term Board of Directors, the Second Meeting of the Eighth-term Board of
Supervisors, and the First Extraordinary General Meeting 2024, the Proposal on the Employee Stock Ownership Plan 2024
of TCL Technology Group Corporation (Draft) was deliberated on, and 117.99 million shares were granted to no more than
On May 30, 2025, the Management Committee of the 2024 Shareholding Plan approved the vesting of a total of 117.99
million shares to the holders of the current phase shareholding plan, based on the company's performance, the performance
of its subordinate operating units, and the achievement of individual performance targets.
The vesting arrangement of the restricted stock granted under the above incentive plan is shown in the following table:
Number of Vesting period and ratio
times
After 12 months from the date of vesting of the holder's respective quota of the underlying shares,
the Shareholding Plan may decide whether to sell 50% of the shares or to transfer 50% of the
First non-trade
holder's respective shares to the account of the holder of the Shareholding Plan, provided that such
transfer or sale
transfer and sales are then supported by the systems of SZSE and the Registration and Settlement
Corporation;
After 24 months from the date of vesting of the holder’s respective quota of the underlying shares,
Second non- the Shareholding Plan may decide whether to sell 50% of the shares or to transfer 50% of the
trade transfer or holder’s respective shares to the account of the holder of the Shareholding Plan provided that such
sale transfer and sales are then supported by the systems of SZSE and the Registration and Settlement
Corporation.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XII Share-based Payments (Continued)
The Group determined the fair value of equity instruments
Method of determining the fair value of
on the grant date based on the fair value of the shares.
equity instruments on the date of grant
On each balance sheet date within the vesting period, the
Group determines the best estimate based on the latest
Basis for determining the number of
number of employees eligible to exercise their options, and
exercisable equity instruments
revise the estimated number of exercisable equity
instruments.
Reasons for significant differences
None
between current and previous estimates
Accumulated amount of equity-settled
share-based payment included in capital RMB 277,293,000
reserve
Total expense recognized for equity-settled
RMB 155,980,000
share-based payments in the current period
（1）Stock option
No stock option matters occurred during H1 2025.
（2）Employee stock ownership plan
On August 30, 2022, TZE held its second extraordinary general meeting of 2022 where the Proposal on the
Employee Stock Ownership Plan (Draft) and Its Summary for 2022 (hereinafter referred to as the "2022
Employee Stock Ownership Plan") were deliberated and adopted. TZE held the 22nd Meeting of the 6th-term
Board of Directors on January 11, 2022, where it deliberated on and adopted the Proposal on Repurchasing the
Company's Shares. The Company repurchased a total of 9,515,263 shares through the special securities account
for repurchasing shares by means of centralized bidding, with an average transaction price of RMB 41.09.
Proposal on the Plan for Repurchasing the Company's Shares. The remaining unused 161,615 repurchased
shares in 2021 were also used for the 2022 Employee Stock Ownership Plan. In summary, a total of 9,654,412
shares were used for the Employee Stock Ownership Plan. On June 30, 2023, the 2022 Employee Stock
Ownership Plan Management Committee, based on the achievement of the Company's performance assessments
indicators and the results of individual performance assessment, determined that the stock quota would be
granted on July 1, 2023, and calculated the corresponding target stock quota of the holders to grant them to the
relevant holders by means of internal registration and confirmation. The lock-up period of the 2022 Employee
Stock Ownership Plan expired on September 7, 2023.
The lock-up period of TZE’s 2023 Employee Stock Ownership Plan expired on June 8, 2024. Due to the failure
of key performance indicators, according to the provisions of the 2023 Employee Stock Ownership Plan, the
shares of 14,391,980 shares of the target stock corresponding to the 2023 Employee Stock Ownership Plan (the
total number of shares after the implementation of the capital increase in 2022 was 17,989,975 shares) and all
the corresponding dividends and other rights and interests were owned by TZE, no longer by the holders. The
current Employee Stock Ownership Plan Management Committee chose an opportunity to sell before the
expiration of the 2023 Employee Stock Ownership Plan, and the sold equity was attributable to TZE.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XII Share-based payments (continued)
（2）Employee stock ownership plan (continued)
TZE held the 43rd Meeting of the 6th-term Board of Directors on October 25, 2023, where it deliberated on and
adopted the Proposal on Repurchasing the Company's Shares. The Company repurchased a cumulative number
of 4,999,968 shares by means of centralized bidding through the special securities account for repurchasing
shares, using them to implement the employee stock ownership plan or equity incentive.
（3）Equity-settled share-based payments
Key parameters of the fair value of equity instruments
Stock Price
on the grant date
On each balance sheet date during the waiting
period, the best estimates were made according
to the latest subsequent information such as
Basis for determining the number of exercisable equity changes in the number of employees with
instruments exercisable stock options and the completion of
performance indicators, and the estimated
number of equity instruments with exercisable
stock options was revised.
Reasons for significant differences between current and
None
previous estimates
Accumulated amount of equity-settled share-based
RMB 753,594,000
payment included in capital reserve
Total expense recognized for equity-settled share-based
RMB 56,955,000
payments in the current period
（4）TZE has no cash-settled share-based payments.
（5）Payment of TZE for shares in current period
In 2023, the key performance indicators of the employee stock ownership plan were not achieved, and
the shares were not granted, for which costs and expenses were not recognized; in January-June 2025,
the costs and expenses recognized for the employee stock ownership plan in 2022 amounted to RMB
（6）Payment of Tianjin Printronics for shares in current period
On June 12, 2025, Tianjin Printronics received the Securities Transfer Registration Confirmation
Notice issued by the Shenzhen Branch of China Securities Depository and Clearing Corporation
Limited, confirming the completion of the first non-trading transfer of certain shares of holders under
the 2023 Employee Stock Ownership Plan. A total of 757,141 shares were transferred, representing
the company's directors, supervisors, and senior management, and 563,791 shares to other holders.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XIII Commitments
June 30, 2025
Contracted but not provisioned Note 1 18,268,566
Approved by the Board but not contracted Note 2 480,745
Note The capital commitments under contractual obligations but not provided for in the current period primarily
Note The capital commitments approved by the Board of Directors but not under contractual obligations in the
As of June 30, 2025, apart from the disclosures above, there were no other major commitments that are
required to be disclosed.
XIV Contingencies
Guarantees Provided for External Parties
As of June 30, 2025, the guarantee provided by the Company for the related party’s bank loans, commercial
drafts, letters of credit, etc., was RMB 2,555,934,000, which is listed in details as below:
Remaining
Actual guarantee Type of Actual occurrence Fulfilled
Obligor term of
amount guarantee date or not
guarantee
Aijiexu New Electronic Joint
Display Glass (Shenzhen) 159,344 liability April 28, 2020 3.3-5 years No
Co., Ltd. guarantee
Shenzhen Qianhai Sailing Joint
International Supply Chain 485,850 liability January 8, 2025 8-250 days No
Management Co., Ltd. guarantee
Inner Mongolia Xinhua Joint
Bandaoti Technology Co., 380,000 liability May 22, 2023 4.9 years No
Ltd. guarantee
Inner Mongolia Xinhuan Joint
Silicon Energy Technology 1,530,740 liability June 15, 2023 4 years No
Co., Ltd. guarantee
As of June 30, 2025, the amount of credit granted by the Group for the note discounting, note acceptance, and non-
financing guarantees of related parties was RMB 1,237,657,000.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XV Events after the Balance Sheet Date
Assets and Raise Supporting Funds (CSRC Permit [2025] No. 1326) issued and approved by the China
Securities Regulatory Commission (CSRC), the CSRC has permitted the company's application to issue
to as the "Major Industry Fund") for the purchase of related assets and to raise supporting funds of up to
RMB 4,359,411,108.52 through the share issuance.
As of August 22, 2025, the company completed the issuance of 986,292,106 shares to the Major Industry
Fund to acquire its 21.5311% equity interest in Shenzhen China Star Optoelectronics Bandaoti Display
Technology Co., Ltd., and raised supporting funds of up to RMB 4,359,411,106.54 through the issuance of
with an issue size of RMB 2 billion, a term of 181 days, and an issue interest rate of 1.7% per annum, with
interest accruing from 2 July, 2025.
XVI Other Important Matters
(I) Segment reporting
According to the Company’s internal organizational structure, management requirements, and internal reporting
system, the Company’s business is divided into four reporting segments: the display business, the new energy
photovoltaic and other silicon materials business, the distribution business and the other businesses. The
Company's management regularly evaluates the operating results of these reporting segments to determine the
allocation of resources and evaluate their performance. The Company’s four reporting segments are:
Display business mainly includes the research and development, manufacturing, and sales of display panels and
(1)
display modules, as well as complete display processing.
New energy photovoltaic and other silicon materials business: mainly includes the R&D, production and sales
(2) of monocrystalline silicon ingots and silicon wafers, cells and modules, and other silicon materials and devices;
the development and operation of photovoltaic power stations.
(3) Distribution business: mainly includes the sales of computers, software, tablet computers, mobile phones, and
other electronic products.
(4) Other businesses: other businesses besides the above, including industrial finance and investment business,
technology development services, and patent maintenance services provided by the company, etc.
Segment assets include all current assets such as tangible assets, intangible assets, other long-term assets, and
receivables attributable to each segment. Segment liabilities include payables, bank loans, and other long-term
liabilities attributable to each segment.
Segment operating results refer to the income generated by each segment (including external transactions
income and inter-segment transaction income), net of expenses incurred by each segment, depreciation,
amortization and impairment loss of assets attributable to each segment, gains or losses from changes in fair
value, return on investment, non-operating income and income tax expenses. Transfer pricing of inter-segment
income is calculated on terms similar to other foreign transactions.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XVI Other Important Matters (Continued)
(I) Segment reporting (continued)
For the six-month period ending June 30, 2025
New energy Other
Display photovoltaics and Distribution businesses and
Total
business other silicon business internally offset
materials business accounts
Operating revenue 57,550,503 13,398,123 14,674,516 (63,138) 85,560,004
Net profits 4,613,425 (4,836,171) 67,956 186,473 31,683
Total assets 220,928,986 124,816,914 8,138,505 46,585,058 400,469,463
Total liabilities 140,268,533 83,049,766 6,512,614 41,296,393 271,127,306
Depreciation and
amortization 11,641,845 4,407,930 23,168 9,460 16,082,403
expenses
Capital expenditure 4,764,762 3,295,997 1,606 251,608 8,313,973
For the six-month period ending June 30, 2024
New energy Other
Display photovoltaics and Distribution businesses and
Total
business other silicon business internally offset
materials business accounts
Operating revenue 49,877,063 16,213,493 13,649,333 483,848 80,223,737
Net profits 2,696,011 (3,175,764) 62,945 (51,341) (468,149)
Total assets 221,429,601 125,196,373 7,801,619 27,905,947 382,333,540
Total liabilities 146,688,074 69,260,983 6,310,452 21,837,841 244,097,350
Depreciation and
amortization 11,058,768 3,973,499 33,097 32,611 15,097,975
expenses
Capital expenditure 8,363,469 3,450,381 4,473 582,947 12,401,270
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XVII Notes to the key items presented in the financial statements of the Company
June 30, 2025 December 31, 2024
Bad-debt Accrual Bad-debt Accrual
Amount Ratio Amount Ratio
Allowance Ratio Allowance Ratio
Within 1
year
June 30, 2025 December 31, 2024
Other receivables 10,492,989 9,910,856
(a) Nature of other receivables is analyzed as follows:
June 30, 2025 December 31, 2024
Equity transfer receivables 610 610
Security and deposits 2,820 3,110
Others 10,489,559 9,907,136
(b) Allowance for doubtful other receivables is analyzed as follows:
Total
ECL not impaired) impaired)
December 31, 2024 1,503 - 32,767 34,270
Accrued in the
- - 5,396 5,396
period
Reversal of current
(18) - - (18)
period
Write-off of current
(10) - - (10)
period
June 30, 2025 1,475 - 38,163 39,638
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XVII Notes to Financial Statements of the Parent Company (Continued)
(c) The aging of other receivables is analyzed as follows:
June 30, 2025 December 31, 2024
Amount Ratio Amount Ratio
Within 1 year 9,089,515 86.30% 8,311,481 83.57%
Over 3 years 143,942 1.37% 347,951 3.50%
The outstanding other receivables were mostly current accounts with related parties.
The top five other receivables of the Company amounted to approximately RMB 9,403,152,000 (December
(December 31, 2024: 98.34%).
June 30, 2025 December 31, 2024
Gross Impairment Carrying Gross Impairment Carrying
amount allowance amount amount allowance amount
Associates and joint
ventures (1)
Subsidiaries (2) 65,764,044
As of June 30, 2025, there are no major restrictions on the realization of investment and the remittance of
return on long-term equity investments.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XVII Notes to Financial Statements of the Parent Company (Continued)
(1) Associates and joint ventures
Increase or decrease in current period
Increase/ Investment gains Other Other
Other Declared cash
December 31, decrease in and losses comprehensive increases
equity dividends or June 30, 2025
changes profits
current period equity method adjustment decreases
Joint venture 283,595 27,835 (46,097) - 1,153 - - 266,486
Associate
Bank of Shanghai Co., Ltd. 14,740,146 - 738,558 (47,923) 17 (179,937) - 15,250,861
Others 2,257,875 (70,431) 173,526 76 175 (35,723) - 2,325,498
Total of associates 16,998,021 (70,431) 912,084 (47,847) 192 (215,660) - 17,576,359
Total 17,281,616 (42,596) 865,987 (47,847) 1,345 (215,660) - 17,842,845
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XVII Notes to Financial Statements of the Parent Company (Continued)
(2) Subsidiaries
Decrease
December 31, Increase in
in current June 30, 2025
period
TCL China Star Optoelectronics
Technology Co., Ltd.
TCL Technology Group Finance Co., Ltd. 1,256,003 - - 1,256,003
TCL Technology Group (Tianjin) Co.,
Ltd.
TCL Zhonghuan Renewable Energy
Technology Co., Ltd.
TCL Culture Media (Shenzhen) Co., Ltd. 78,000 - - 78,000
Shenzhen Dongxi Jiashang
Entrepreneurship Investment Co., Ltd.
Guangdong TCL Juxiang Technology
Co., Ltd.
Highly Information Industry Co., Ltd. 107,296 - - 107,296
TCL Communication Equipment
(Huizhou) Co., Ltd.
TCL Medical Radiological Technology
(Beijing) Co., Ltd.
Shenzhen TCL Strategic Equity
Investment Fund Partnership (Limited 55,664 - (184) 55,480
Partnership)
TCL Industrial Technology Research
Institute, Ltd. (Europe)
Wuhan TCL Industrial Technology
Research Institute, Ltd.
Shenzhen TCL High-Tech Development
Co., Ltd.
Huizhou Hongsheng Science and
Technology Development Co., Ltd.
Tianjin Silica Material Technology Co.,
Ltd.
Xiamen TCL Technology Industrial
Investment Co., Ltd.
TCL Internet Technology (Shenzhen) Co.,
Ltd.
Ningbo TCL Equity Investment Ltd. 300,000 - - 300,000
TCL Technology Investments Limited 3,348,778 116,784 - 3,465,562
Huizhou Dongshen Jia’an Equity
Investment Partnership (Limited 221,000 424,000 - 645,000
Partnership)
TCL Financial Technology (Shenzhen)
Co., Ltd.
Zhonghuan Advanced Bandaoti
Technology Co., Ltd.
Equity incentives of subsidiaries 203,416 33,593 - 237,009
For the registered capital of subsidiaries and the Company’s equity interests in the subsidiaries, see Note VIII.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XVII Notes to Financial Statements of the Parent Company (Continued)
June 30, 2025 December 31, 2024
Equity investments 399,303 423,060
Debt investments 187,521 300,483
January - June 2025 January - June 2024
Operating Operating Operating Operating
revenue cost revenue cost
Core business 10,227 2,288 386,446 380,021
Non-core business 176,239 89,824 312,857 69,585
January - June 2025 January - June 2024
Revenue from long-term equity investment accounted for
using the equity method
Net income from disposal of long-term investments - 51,495
Return on holding of held-for-trading financial assets 82,655 176,467
Return on disposal of held-for-trading financial assets (2,133) -
Revenue from long-term equity investment accounted for
using the cost method
XVIII Comparative Figures
Certain comparative data have been reclassified to comply with the presentation of the current period.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XIX Non-recurring profit and loss items and amount
January - June 2025 January - June 2024
Gain or loss on disposal of non-current assets (inclusive of
(20,061) 48,439
impairment allowance write-offs)
Public subsidies charged to current profits and losses (exclusive of
public grants closely related to the Company’s normal business
operations, in compliance with national policies, enjoyed according 633,215 972,603
to determined criteria, and with a continuous impact on the
Company’s profits and losses)
The profits or losses generated from changes in fair value arising
from financial assets and financial liabilities held by non-financial
enterprises and the profits or losses from the disposal of such
financial assets and financial liabilities, except for the effective
hedging business related to the company’s normal business
operations
Reversal of provision for impairment of receivables that have been
individually tested for impairment
Non-operating income and expenses other than the above 126,891 258,631
Income tax effects (84,754) (156,219)
Non-controlling interests effects (376,588) (714,189)
Non-recurring gains and losses attributable to ordinary shareholders
of the parent company
According to the relevant provisions of the Interpretative Announcement No. 1 on Information Disclosure by
Companies Issuing Securities to the Public - Non-recurring Profits and Losses (Revised in 2023), public grants
closely related to the Company’s normal business operations, in compliance with national policies, enjoyed
according to determined criteria, and with a continuous impact on the Company’s profits and losses shall be
presented as recurring profits and losses.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XX Weighted Average Return on Equity (ROE) and Earnings per Share (EPS)
The Company calculates the ROE and EPS as follows in accordance with the Compilation Rules No. 9 for
Information Disclosure of Companies Offering Securities to the Public-Calculation and Disclosure of Return on
Equity and Earnings per Share (Revised in 2010) issued by the China Securities Regulatory Commission and
relevant provisions of accounting standards:
Net profits Earnings per share (RMB: yuan)
attributable to
Weighted
the parent
average
Item company
return on Basic earnings Diluted earnings
during the
equity per share per share
Reporting
Period
Net profits attributable to ordinary
shareholders of the Company
Net profits attributable to ordinary
shareholders of the Company
before non-recurring gains and 1,558,735 2.93% 0.0839 0.0830
losses
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Part IX Other Data Submitted
I. Other Major Social and Security Issues
Whether there were any other major social and security issues involving the listed company and its subsidiaries
□Yes □No Not applicable
Whether there were any administrative penalties imposed during the Reporting Period
□Yes □No Not applicable
The Company was not subject to any significant administrative penalties during the Reporting Period.
II. Record of Communications with the Investment Community, such as Research, Inquiries,
and Interviews during the Reporting Period
Applicable □Not applicable
Type of Primary focus of
Time of Manner of Communica Index of the main information
Location communication the discussion and
reception communication tion party communicated
party materials provided
Conference
Annual Log Sheet No. 2025-001 on Investor
Room of
April 29, Individuals, All performance and Relations Activities dated April 29, 2025
TCL Web conferencing
TECH. in
TECH. for 2024 www.cninfo.com.cn on April 29, 2025.
Shenzhen
Contents and
January - The Individuals,
Investor hotline Individuals, public information,
June Company's institutions, -
(telephone) institutions, etc. etc., disclosed by
the Company
Contents and
January - The Individuals,
Individuals, public information,
June Company's irm.cninfo.com.cn institutions, irm.cninfo.com.cn
institutions, etc. etc., disclosed by
the Company
III. Capital Transactions between the Listed Company and its Controlling Shareholder and
Other Related Parties
Applicable □Not applicable
For more details, please refer to the section "Transactions Between the Financial Company Controlled by the Company and Related
Companies" in this Report, and the Summary Table of Non-Operating Fund Occupancy and Other Related-Party Fund Transactions
for the First Half of 2025 disclosed on the same day as this Report.
No occupation of the Company's funds by the controlling shareholder or any of its related parties for non-
operation purposes during the Reporting Period.
TCL Technology Group Corporation
August 28, 2025
TCL 科技集团股份有限公司
TCL Technology Group Corporation
INTERIM REPORT 2025
August 2025
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as
well as the directors, supervisors and senior management of TCL Technology
Group Corporation (hereinafter referred to as the “Company”) hereby
guarantee the factuality, accuracy and completeness of the contents of this
Report and its summary, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions therein.
Mr. Li Dongsheng, the person-in-charge of the Company, 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 Interim Report are factual, accurate,
and complete.
All the Company’s directors attended the Board meeting for the review of
this Interim Report and its summary.
The future plans, development strategies or other forward-looking
statements mentioned in this Report and its summary shall NOT be considered
as promises of the Company to investors. Therefore, investors are kindly
reminded to pay attention to possible investment risks.
The Company has no interim dividend plan, either in the form of cash or
stock, nor for the conversion of capital reserve into share capital.
This Report and its summary have been prepared in both Chinese and
English. Should there be any discrepancies or misunderstandings between the
two versions, the Chinese version shall prevail.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Table of Contents
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Documents Available for Reference
(I) The financial statements signed and stamped by the person-in-charge of the
Company, the Chief Financial Officer and person-in-charge of the financial
department.
(II) The originals of all company documents and announcements that were
disclosed to the public during the Reporting Period.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Definitions
Term Refers to Definition
The “Company”, the “Group”, “TCL”,
Refers to TCL Technology Group Corporation
“TCL TECH.”, or “we”
The “Reporting Period”, “current
Refers to The period from January 1, 2025 to June 30, 2025.
period”
TCL CSOT Refers to TCL China Star Optoelectronics Technology Co., Ltd.
TCL Zhonghuan Renewable Energy Technology Co., Ltd., a majority-owned
TZE Refers to subsidiary of the Company listed on the Shenzhen Stock Exchange (stock
code: 002129.SZ)
Zhonghuan Advanced Refers to Zhonghuan Advanced Bandaoti Technology Co., Ltd.
Moka Technology Refers to Moka International Limited
Tianjin Printronics Circuit Corp., a majority-owned subsidiary of the
TPC Refers to
Company listed on the Shenzhen Stock Exchange (stock code: 002134.SZ)
Highly Information Industry Co., Ltd., a holding subsidiary of the Company
Highly Refers to
listed on the National Equities Exchange and Quotations
t1 Refers to The generation 8.5 (or G8.5) TFT-LCD production line at TCL CSOT
t2 Refers to The generation 8.5 (or G8.5) TFT-LCD (oxide) production line at TCL CSOT
t3 Refers to The generation 6 (or G6) LTPS-LCD panel production line at Wuhan CSOT
The generation 6 (or G6) flexible LTPS-AMOLED panel production line at
t4 Refers to
Wuhan CSOT
t5 Refers to The generation 6 (or G6) new display production line at Wuhan CSOT
The generation 11 (or G11) new TFT-LCD display production line at
t6 Refers to
Shenzhen CSOT
The generation 11 (or G11) new ultra high definition display production line at
t7 Refers to
Shenzhen CSOT
The generation 8.6 (or G8.6) new oxide display production line at Guangzhou
t9 Refers to
CSOT
t10 Refers to The generation 8.5 (or G8.5) TFT-LCD production line at Suzhou CSOT
t11 Refers to The generation 8.5 (or G8.5) TFT-LCD production line at Guangzhou CSOT
t12 Refers to The generation 5.5 (or G5.5) printed OLED production line at Wuhan CSOT
RMB Refers to Renminbi
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Part II Corporate Information and Key Financial Information
I. Corporate Information
Stock name TCL TECH. Stock code 000100
Place of listing Shenzhen Stock Exchange
Company name in Chinese TCL 科技集团股份有限公司
Abbr. (if any) TCL 科技
Company name in English (if any) TCL Technology Group Corporation
Abbr. in English (if any) TCL TECH.
Legal representative Li Dongsheng
II. Contact Information
Board Secretary
Name Liao Qian
Office address
Nanshan District, Shenzhen, Guangdong Province, China
Tel. 0755-33311666
Email address ir@tcl.com
III. Other Information
Whether the registered address, office address and their zip codes, website address and email address of the Company changed
during the Reporting Period
□Applicable Not applicable
No changes occurred to the registered address, office address and their zip codes, website address, email address and other contact
information of the Company during the Reporting Period. Please refer to the 2024 Annual Report for details.
Whether the media for information disclosure and place where this Report is lodged changed during the Reporting Period
□Applicable Not applicable
No changes occurred to the name and website of the stock exchange website and media on which the Company discloses its Interim
Report and the place for lodging such reports during the Reporting Period. Please refer to the 2024 Annual Report for details.
Whether other information changed during the Reporting Period
□Applicable Not applicable
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
IV. Key Accounting Data and Financial Indicators
Indicate whether there is any retrospectively adjusted or restated datum in the table below
□Yes No
H1 2025 H1 2024 Change
Operating revenue (RMB) 85,560,004,497 80,223,736,962 6.65%
Net profits attributable to the company’s shareholders
(RMB)
Net profits attributable to the company's shareholders
after non-recurring gains and losses (RMB)
Net cash generated from operating activities (RMB) 27,273,981,394 12,632,721,713 115.90%
Basic earnings per share (RMB/share) 0.1014 0.0535 89.53%
Diluted earnings per share (RMB/share) 0.1003 0.0530 89.25%
Increase by 1.67
Weighted average return on equity (%) 3.54 1.87
percentage points YoY
End of the Reporting December 31,
Change
Period 2024
Total assets (RMB) 400,469,462,636 378,251,915,923 5.87%
Net assets attributable to shareholders of the listed
company (RMB)
V. Accounting Data Differences under China Accounting Standards for Business Enterprises
(CAS) and International Financial Reporting Standards (IFRS) and Foreign Accounting
Standards
□Applicable Not applicable
There is no difference in net profits and net assets between the financial statements prepared in accordance with International
Accounting Standards (IAS) and Chinese Accounting Standards (CAS) for the Reporting Period of the Company.
□Applicable Not applicable
There is no difference in net profits and net assets between the financial statements prepared in accordance with foreign accounting
standards and Chinese Accounting Standards (CAS) for the Reporting Period of the Company.
□Applicable Not applicable
VI. Non-Recurring Gains and Losses
Applicable □Not applicable
Unit: RMB
Item Amount
Gains and losses on disposal of non-current assets (inclusive -20,061,225
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
of impairment allowance write-offs)
Public grants charged to current gains and losses (except for
public grants that are closely related to the Company's daily
operations, comply with national policies, are granted based 633,215,125
on determined standards, and have a continuous impact on the
Company's gains and losses)
The profits or losses generated from changes in fair value
arising from financial assets and financial liabilities held by
non-financial enterprises and the profits or losses from the
disposal of such financial assets and financial liabilities,
except for the effective hedging business related to the
company’s normal business operations
Reversal of provision for impairment of receivables that have
been individually tested for impairment
Non-operating income and expenses other than the above 126,890,210
Other gain and loss items that meet the definition of non-
recurring gains and losses
Less: Amount affected by income tax 84,753,814
Amount affected by equity of minority shareholders (net
of tax)
Total 324,764,004
Details of other profit and loss items that meet the definition of non-recurring profits and losses:
□Applicable Not applicable
The Company has no other profit and loss items that meet the definition of non-recurring profits and losses.
Notes on non-recurring profit and loss items that are 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.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Part III Management Discussion and Analysis
I. Overall Operating Performance of the Company During the Reporting Period
Since the start of the year, growing global economic uncertainties and a restructured
international trade landscape have accelerated the transformation of rules in economic globalization.
Rising U.S. tariffs are increasing worldwide trade costs, fueling trends toward deglobalization and
supply chain regionalization. These shifts are poised to significantly impact the development of
China's manufacturing sector. In the face of external challenges, the Company adheres to the
leading strategy, focusing on three key business pillars, including displays, new energy
photovoltaics, and other silicon materials, with a view to improving operational resilience and
promoting high-quality and sustainable growth.
During the Reporting Period, the Company realized RMB 85.6 billion in operating revenue,
representing a 6.7% year-over-year increase. Net profit attributable to shareholders reached RMB
As of the end of the Reporting Period, the Company’s debt-to-asset ratio stood at 67.7%, an
increase of 2.78 percentage points from the end of the previous reporting period; cash and cash
equivalents at the end of the Reporting Period were RMB 26.56 billion. Driven by significant new
investments this year and the availability of favorable lending rates, the debt-to-asset ratio has risen.
The Company remains committed to maintaining this ratio within a reasonable range.
II. Operating Performance of the Company’s Core Businesses During the Reporting Period
The Company focused on the development of the core business, including displays, new
energy photovoltaics and other silicon materials, and was committed to achieving the strategic goal
of global leadership.
(I) Display Business
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Global retail demand for LCD TVs remained stable in the first half of 2025. National subsidies
accelerated the shift toward larger screen sizes, sustaining the surge in the demand area for panels.
Increased supply-side production capacity concentration and an optimized industry landscape
balanced supply and demand, leading to narrow price fluctuations for major products aligned with
seasonal cycles.
During the Reporting Period, TCL CSOT achieved an operating revenue of RMB 50.43 billion,
an increase of 14.4% year-on-year; net profit was RMB 4.32 billion, up 74.0% year-on-year; and
net profit attributable to shareholders of TCL TECH. was RMB 2.63 billion, an increase of 51%
year-on-year. Leveraging its advantages in scale and efficiency, TCL CSOT continuously optimized
its business and product structure, thus significantly improving its operating performance, further
solidifying its competitive edge in the display industry.
The Company maintained its competitive edge in large-sized products like TVs and
commercial displays, growing its market share by 4 percentage points year-on-year to 24%. Its
comprehensive competitiveness and EBITDA continued to lead globally. Competitiveness in the
small and medium-sized LCD product segment increased rapidly: during the Reporting Period, the
monitor sales volume increased by 18% year-on-year; NB sales volume increased by 71% year-on-
year; vehicle-mounted display sales volume increased by 61% year-on-year; mobile phone sales
volume increased by 51% year-on-year; and sales in the specialized display market saw a
significant year-on-year growth.
During the Reporting Period, the Company completed the acquisition of 100% equity in LG
Display (China) Co., Ltd. and LG Display (Guangzhou) Co., Ltd., integrating and renaming them as
t11, with a production capacity of 180k pieces/month. Since the second quarter, this acquisition has
become an increasingly significant contributor to the Company's operating performance. During the
same period, the Company also completed the second-phase construction of the t9 project in
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Guangzhou. The strong industrial synergy between the t9 and t11 projects enhanced the Company's
scale and competitiveness in small and medium-sized displays. This synergy optimizes the
Company's product structure and laid a solid foundation for the sustainable development of its LCD
business.
The Company's OLED business (t4, G6 line), sustained its growth trajectory with an increase
in year-over-year sales volume of 8.7%, while operating revenue is up 9.2% YoY. The Company
secured the fourth position globally for flexible OLED smartphone shipments and remained a top-
three player in foldable products. This was complemented by the successful ramp-up to mass
production and shipment of its wearables line. Currently, the t4 factory leads the domestic industry
in key metrics, including capacity utilization rate, project input-output ratio, and EBITDA margin.
During the Reporting Period, the Company successfully completed the construction of the
G5.5 printed OLED production line (t12), with capacity increasing from 3k pieces/month to 9k
pieces/month. The t12 project continues to optimize its production processes, efficiency, and
product quality. The Company is also driving the industrialization of its high-generation printed
OLED projects, positioning it to achieve major breakthroughs in the next-generation OLED
industry.
The Company is actively expanding its presence in the Micro LED (hereinafter referred to as
“MLED”) industry. At the end of 2020, TCL CSOT and Sanan Optoelectronics jointly established a
laboratory, and during the Reporting Period, the first MLED production line was built in Suzhou.
The Company plans to capitalize on emerging opportunities in the MLED sector by expanding
investments in product technology, materials, and key segments of the industry chain, thereby
strengthening its competitive market position.
During the Reporting Period, the Company acquired a 21.53% equity stake in Shenzhen China
Star Optoelectronics Bandaoti Display Technology Co., Ltd.—operator of the G11 production lines
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
(t6, t7)—from the Shenzhen Major Industrial Development Phase I Fund. The asset transfer for this
transaction was finalized in early July 2025. This strategic acquisition is expected to boost net profit
attributable to the parent company and strengthen the contribution of the display business to the
listed company’s profitability.
The Company will further improve its global industrial layout to adapt to the challenges of the
restructured global economy and trade landscape. During the Reporting Period, the Company
invested in and built a module plant in Vietnam, and significantly improved the operational
efficiency of its existing module plant in India each year.
(II) Silicon Wafer Business
During the Reporting Period, Zhonghuan Advanced achieved an operating revenue of RMB 2.74
billion, growing 38.2% year-on-year and solidifying its leadership in both scale and competitiveness
within the domestic industry. The Company's products, technologies, processes, and quality have
been further enhanced, with products consistently supplied to major domestic integrated circuit
manufacturers and partial exports achieved. The Company is confident of sustaining business
growth and further strengthening its market competitiveness in the second half of the year.
(III) New Energy Photovoltaics Business
During the Reporting Period, TZE’s photovoltaics business achieved an operating revenue of
RMB 9.87 billion, registering a year-on-year decrease of 28.0%, of which crystal wafer operating
revenue was RMB 5.77 billion, down 7.1% quarter-on-quarter; and cell and module operating
revenue was RMB 3.85 billion, up 26.2% quarter-on-quarter.
Amid a severe industry downturn and intense competition within the photovoltaics sector, the
Company is implementing proactive and effective strategies to navigate the market’s challenges.
Guided by the principle of “turning crisis into opportunity through development and discovering
new paths by overcoming difficulties,” the Company is not only tackling current operational
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
pressures but also strategically positioning itself for future growth. To this end, it is reinforcing its
leadership in wafer technology, strengthening its cell and module segments, aggressively expanding
its global footprint, and actively pursuing strategic mergers, acquisitions, and overseas investment
opportunities. The Company is confident in its ability to enhance the performance of TZE’s
photovoltaics business, reinforce its competitive position, and establish a strong foundation for
sustainable growth. These efforts will position the Company to successfully navigate the ongoing
industry downturn and unlock new pathways for future expansion.
(IV) Non-core business
The Company’s non-core businesses satisfied its operating budgets and maintained healthy
growth. As the world's largest TV ODM provider, MOKA reported operating revenue of RMB
shipment volume reached 7.49 million units, generating operating revenue of RMB 8.03 billion and
solidifying its position as a global leader. Meanwhile, MOKA's monitor ODM business also
experienced rapid expansion, with shipments rising 28% year-on-year to 4.62 million units.
Additionally, businesses such as Highly and TPC also achieved the goal set at the beginning of the
year and sustained healthy development.
Facing a severe and complex external environment, the Company will embrace the spirit of
“Embarking on the Voyage and Pressing Ahead Against All Odds.” By adhering to the operational
philosophy of “Strategic Leadership, Innovation-Driven, Advanced Manufacturing, and Global
Operations”, the Company will seize the historic opportunities presented by the upgrade of the
technology manufacturing industry and the transformation of the global energy structure to achieve
sustainable high-quality development and advance toward global leadership.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
III. Analysis of Core Competitiveness
Since its establishment in 1981, TCL has consistently demonstrated resilience and adaptability,
successfully navigating through various market cycles. Through sustained exploration, reform, and
transformation, the Company has always stood firm at the forefront, demonstrating the audacity to
pioneer, and emerged as a globally leading high-tech industry group.
In 2018, TCL underwent its most significant corporate transformation, shifting from a
diversified conglomerate to a specialized business model focused on developing high-tech and
capital-intensive industries with long investment cycles. Following its rebranding to “TCL TECH.”
in 2020, the Company delisted Zhonghuan Electronic in July, paving the way for its expansion into
new energy photovoltaics and silicon materials. The Company acquired Suzhou Samsung in August
acquisition and integration of LG’s Guangzhou LCD and module facility in 2025, reinforcing its
position as a key player in the display sector.
At present, TCL Tech has established a business structure centered on displays and new
energy photovoltaics. With a well-defined development roadmap, efficient operations, and
outstanding competitive advantages, the Company has been gradually improving its core
competitiveness and sustainable development capabilities.
Leading at scale: Optimizing business portfolios and building scale advantages
TCL CSOT, a preeminent global display company and a pioneer in domestic display
manufacturing, has cumulatively invested over RMB 280 billion. It currently operates 11 state-of-
the-art panel lines and 5 module factories, serving a diverse range of global clients. The Company
has established a leading position in large-sized panels globally through both self-built production
lines and the acquisition of Suzhou Samsung. In the first half of 2025, TCL CSOT ranked second
globally in TV panel shipments. The Company has built t9 production line targeting high-value-
added mid-size products such as IT and commercial displays, achieving a full-size strategic layout.
In the first half of 2025, The Company secured the world’s second-largest market share in MNT
panels and ranked first in key segments such as e-sports monitors and LTPS laptops. By actively
improving the layout of the value chain and expanding the production capacity of self-built modules,
TCL CSOT has further improved the Company's control and profitability in the value chain. TCL
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
CSOT has passed through several industry cycles, evolving from a "follower" to a "peer", and now
a "leader". It has transformed from a large-size panel leader to an all-size display player, gradually
expanding from panel manufacturing to comprehensive display solutions, driving the Company's
high-quality development.
TZE will continue to leverage its advantages in production capacity, product offerings, and
cost structure, while gradually improving its relative competitiveness and establishing its leading
edge in the industry through technological innovations, manufacturing transformations, and
management reforms. The Company is driving ongoing improvements in its flexible photovoltaics
wafer manufacturing to strengthen its competitive edge. We are the global leader in terms of
monocrystalline silicon capacity and hold the largest worldwide market share for G12 wafers. The
international expansion continues to progress, marked by the on-schedule establishment of an
overseas wafer manufacturing facility in collaboration with Saudi Arabia’s Public Investment Fund
(PIF) and Vision Industries (VI). In terms of photovoltaics modules, the Company leveraged its
patented technological innovations to develop differentiated products. By actively investing in new
battery technologies, the Company progressively established manufacturing strengths to provide
customers with higher-quality products.
Leading in technology and ecology: Achieving leading edge technology by focusing on
core industries
The Company has established a strategic foothold in core technologies (i.e., displays and new
energy photovoltaics) by capitalizing on its subsidiaries TCL CSOT and TZE. Through strategic
partnerships with upstream and downstream industry players, the Company has built a robust global
ecosystem for technology and innovation, and is steadily advancing its technological leadership in
next-generation display technologies, as well as G12 and N-type photovoltaics materials. The
Company has applied for over 79,000 patents, and facilitated or participated in the establishment of
more than 300 industry standards, underscoring its status as a preeminent high-tech enterprise. The
Company has secured over 2900 patents in quantum dot display technology, ranking second
globally, which will ensure the independent and controllable development of key technologies for
next-generation displays. TCL Technology has established 29 R&D centers worldwide, and has
been certified with 9 national-level open innovation platforms and 33 provincial-level innovation
platform qualifications.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Leading in efficiency and management: navigating cycles with industry-leading
efficiency and effectiveness
Based on its scale and technological prowess, TCL TECH. has achieved efficiency and
benefits which maintain its industry leadership through continuous management changes and
digitalization upgrades. TCL CSOT leverages the synergy of its twin factories to optimize
production line planning and maximize capacity expansion. By pursuing cost excellence, the
Company has established an end-to-end cost advantage. Through management reforms, it has
enhanced overall operational efficiency, resulting in continuous improvements in product quality
and performance, as well as a leading competitive position in the industry. At the same time, TCL
CSOT has established proven risk management capabilities that have been honed through multiple
industry cycle fluctuations. Looking forward, TCL CSOT will make use of this core competency,
and will be well-poised to navigate future uncertainties and achieve global leadership.
Amidst the cyclical downturn in the new energy photovoltaics industry, TZE has consistently
adhered to its core business philosophy of “digging in”, and comprehensively implemented Industry
frameworks. By continuously improving production automation, operational efficiency, and
management capabilities, TZE is committed to successfully navigate the industry cycle and emerge
as a leading global player in the new energy photovoltaics sector.
Cultural Leadership: Guided by our core values of "change, innovation, accountability,
and excellence", the Company is being driven to achieve industry leadership
In 2020, TCL inaugurated a new phase of corporate culture, as laid out in its strategic
document The Path to Global Leadership. The Company has adopted a core mission centered
around "leading technology, harmonious coexistence", underpinned by the core values of "change,
innovation, accountability, and excellence". This cultural transformation has empowered TCL
employees to embrace change, drive business optimizations and upgrades through active
exploration and innovation, and guided TCL in dedicating itself to delivering superior products and
services to its valued customers through accountability and the pursuit of excellence. In the face of
a complex and ever-changing external business environment, TCL employees will continue to
uphold the spirit and culture of “The Path to Global Leadership”. TCL will boldly lead the way,
fearlessly compete, and drive the Company to effectively respond to business changes, entering a
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
new stage of development.
IV. Analysis of Core Businesses
Overview
See the relevant contents in “II. Main Businesses of the Company during the Reporting Period”.
Year-on-year changes in key financial information
Unit: RMB
H1 2025 H1 2024 Change (%) Reason for change
Operating revenue 85,560,004,497 80,223,736,962 6.65% No significant change
Operating cost 74,082,838,353 70,642,557,593 4.87% No significant change
Sales expenses 1,163,964,526 877,396,554 32.66% Mainly due to the increase in new subsidiaries
Administrative expenses 2,200,561,949 2,003,839,241 9.82% No significant change
Financial expenses 2,141,281,686 2,091,274,666 2.39% No significant change
Mainly due to the improvement in the display
Income tax expense 315,894,303 52,211,560 505.03% business
R&D investments 4,528,645,518 4,265,857,601 6.16% No significant change
Net cash generated from operating Mainly due to the improvement in the display
activities
Net cash used in investing Mainly due to the acquisition of LG’s Guangzhou
-22,308,345,614 -17,444,499,442 -27.88% LCD and module facility
activities
Net cash generated from financing Mainly due to the repayment of principal and
activities
Net increase in cash and cash Mainly due to the year-on-year increase in net cash
equivalents
Significant changes to the profit structure or sources of the Company during the Reporting Period
□Applicable Not applicable
No significant changes to the profit structure or sources of the Company during the Reporting Period.
Breakdown of operating revenue
Unit: RMB
H1 2025 H1 2024
As % of total As % of total Change (%)
Amount operating Amount operating revenue
revenue (%) (%)
Total operating revenue 85,560,004,497 100% 80,223,736,962 100% 6.65%
By operating division
Display business 57,550,502,531 67.26% 49,877,063,111 62.17% 15.38%
New energy photovoltaics and
other silicon materials business
Distribution business 14,674,516,380 17.15% 13,649,332,920 17.01% 7.51%
Other and offsets -63,137,490 -0.07% 483,847,913 0.61% -113.05%
By product category
Display devices 57,550,502,531 67.26% 49,877,063,111 62.17% 15.38%
New energy photovoltaics and
other silicon materials
Distribution of electronics 14,674,516,380 17.15% 13,649,332,920 17.01% 7.51%
Other and offsets -63,137,490 -0.07% 483,847,913 0.61% -113.05%
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
By operating segment
Chinese Mainland 54,848,748,806 64.11% 53,896,026,672 67.18% 1.77%
Overseas Countries and Regions
(including Hong Kong)
Note: The display business revenue mentioned above includes the revenue from TCL CSOT and Moka Technology.
Operating division, product category, or region contributing over 10% of operating revenue or operating profit
Applicable □Not applicable
Unit: RMB
Change in Change in
Change in gross
Operating Gross profit operating operating cost
Operating cost profit margin year-
revenue margin revenue year- year-on-year
on-year (%)
on-year (%) (%)
By operating division
Display
business
New energy
photovoltaics
and other
silicon
materials
business
Distribution
business
By product category
Display devices 57,550,502,531 45,867,436,666 20.30% 15.38% 12.57% 1.99%
New energy
photovoltaics
and other 13,398,123,076 14,412,073,108 -7.57% -17.36% -13.57% -4.72%
silicon
materials
Distribution of
electronics
By operating segment
Chinese
Mainland
Overseas
Countries and
Regions 30,711,255,691 23,677,873,887 22.90% 16.65% 12.98% 2.51%
(including
Hong Kong)
Core business data in the recent term restated according to the changed methods of measurement that occurred in the Reporting
Period
□Applicable Not applicable
V. Analysis of Non-Core Businesses
Applicable □Not applicable
Unit: RMB
Amount As % of gross profit Source Sustainability
Mainly due to the
recognition of return
on investment from
Return on investment 831,296,321 239.17% Yes
joint ventures and
investment returns on
financial assets, etc
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Mainly due to the
movement in fair value
Gain/loss of fair-value
changes during the holding
period
Falling price of
Asset impairment -2,798,944,122 -805.28% inventory write-offs in No
line with the market
Non-operating income 29,824,684 8.58% - No
Non-operating
expenses
VI. Analysis of Assets and Liabilities
Unit: RMB
End of the Reporting Period December 31, 2024
Weight Main reason for
As % of total As % of total Change change
Amount Amount
assets assets
No significant
Monetary assets 28,544,342,940 7.13% 23,007,772,733 6.08% 1.05%
change
No significant
Accounts receivable 19,741,951,084 4.93% 22,242,152,687 5.88% -0.95%
change
No significant
Contract assets 397,673,182 0.10% 395,116,789 0.10% 0.00%
change
No significant
Inventories 20,535,401,675 5.13% 17,594,133,395 4.65% 0.48%
change
No significant
Investment property 602,893,409 0.15% 612,733,509 0.16% -0.01%
change
Long-term equity No significant
investments change
No significant
Fixed assets 172,569,694,580 43.09% 170,512,009,105 45.08% -1.99%
change
Construction in No significant
progress change
No significant
Right-of-use assets 6,593,796,271 1.65% 6,697,687,926 1.77% -0.12%
change
Short-term No significant
borrowings change
No significant
Contract liabilities 2,183,855,081 0.55% 1,969,271,038 0.52% 0.03%
change
Long-term No significant
borrowings change
No significant
Lease liabilities 6,300,595,064 1.57% 6,334,785,779 1.67% -0.10%
change
□Applicable Not applicable
Applicable □Not applicable
Unit: RMB
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Gain/loss of Impairment
Cumulative
fair-value allowances Amount
fair-value Amount sold in
Beginning changes in established purchased in
Item changes the Reporting Other changes Ending amount
amount the in the the Reporting
recorded in Period
Reporting Reporting Period
equity
Period Period
Financial
assets
trading
financial
assets
(excluding
derivative
financial
assets)
financial 172,488,618 195,979,459 - - 71,100,768 377,103,775 106,260,937 168,726,007
assets
Receivables 831,407,255 3,128,218,996 3,959,626,251
financing
Investments
in other 387,850,846 - -189,028,958 - 19,840,940 11,101,277 17,726,817 414,317,326
equity
instruments
non-current
financial
assets
Subtotal of
financial 20,177,917,655 481,081,042 -189,028,958 - 52,717,953,435 45,519,578,697 3,350,171,187 31,207,544,622
assets
Total of the
above
Financial
liabilities
Significant changes to the measurement attributes of the major assets in the Reporting Period
□Yes No
Carrying amount
Restricted assets Reason for restriction
(RMB’0,000)
Monetary assets 25,524 Deposited in the central bank as the required reserve
Monetary assets 173,244 Other monetary assets and restricted bank deposits
Fixed assets 9,259,083 As collateral for loan
Intangible assets 410,626 As collateral for loan
Held-for-trading financial assets 14,540 In pledge
Construction in progress 91,464 As collateral for loan
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Accounts receivable 94,542 In pledge
Contract assets 13,319 In pledge
Total 10,082,342
VII. Investments Made
Applicable □Not applicable
Total investment amount in the Total investment amount in the same
Change (%)
Reporting Period (RMB) period last year (RMB)
Applicable □Not applicable
Unit: RMB’000,000,000
Investment
Progress
gains and Index to
Shareholdin as of the Date of
Name of Principal Investment Investmen Funding Investmen Product Expected losses for Involvement disclosed
g Partner balance disclosure
investee activity method t amount source t period type returns the in litigation information
percentage sheet (if any)
Reporting (if any)
date
Period
Producing
large-sized
LG
LCD panels Not
Display Self- Not Not Transferr Not
for TV and 100% None applicabl No
(China) raised applicable applicable ed applicable
commercial e
Co., Ltd.
display Equity March 19, ( www.
products acquisition 2025 cn)
LG
Display Producing Not
Self- Not Not Transferr Not
(Guang LCD display 100% None applicabl No
raised applicable applicable ed applicable
zhou) Co., modules e
Ltd.
Total -- -- 137.03 -- -- -- -- -- -- -- -- -- -- --
Note: 1. LG Display (China) Co., Ltd. has been renamed Guangzhou China Star Optoelectronics Technology Co., Ltd.; LG Display
(Guangzhou) Co., Ltd. has been renamed Guangzhou China Star Optoelectronics Display Co., Ltd.
□Applicable Not applicable
(1) Securities Investments
Applicable □Not applicable
Unit: RMB'0,000
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Gain/loss
of fair- Cumulative Amount
Amount Gain/loss
Initial Accounting Beginning value fair-value purchased Ending
sold in the in the Accounting Funding
Security type Stock Code Stock Abbr. investment measurement carrying changes in changes in the carrying
Reporting Reporting title source
cost method amount the recorded in Reporting amount
Period Period
Reporting equity Period
Period
Other non-
current
Stocks 688469.SH UNT 26,745 Fair value 24,113 -1,692 - - - -1,692 22,421 Self-funded
financial
assets
Other non-
current
Stocks 300842.SZ DK Electronic Materials, Inc. 2,430 Fair value 24,306 1,423 - - 10,609 3,407 16,953 Self-funded
financial
assets
Measurement at Debt
Bonds XS2587421681 Nanyang Commercial Bank 7,083 7,359 - - - - 264 7,328 Self-funded
amortized cost investments
Held-for-
trading
Bonds USG98149AG59 WYNN MACAU LTD 623 Fair value 4,978 39 - - - 173 4,996 Self-funded
financial
assets
Held-for-
trading
Bonds USG9T27HAG93 VEDANTA RESOURCES 2,388 Fair value 6,158 -26 - 9,179 10,505 3 4,780 Self-funded
financial
assets
Held-for-
trading
Bonds XS2560662541 LINK CB LTD 4,455 Fair value 6,075 34 - - 1,832 157 4,252 Self-funded
financial
assets
Held-for-
trading
Bonds XS3038559129 MONGOLIAN MINING CORP 5,680 Fair value - -122 - 6,589 2,313 -130 4,155 Self-funded
financial
assets
Held-for-
trading
Bonds USF2941JAA81 ELECTRICITE DE FRANCE SA 2,919 Fair value 4,074 -1 - - - 163 4,056 Self-funded
financial
assets
Held-for-
trading
Bonds USG84228GE26 STANDARD CHARTERED PLC 4,300 Fair value 3,833 -2 - 1,501 1,501 145 3,815 Self-funded
financial
assets
Held-for-
trading
Bonds XS1729875598 ISLAMIC REP OF PAKISTAN 2,740 Fair value 2,611 133 - 1,010 - 232 3,743 Self-funded
financial
assets
Other securities investments held at the period-end 226,931 -- 140,278 1,473 -18,792 249,392 266,997 3,672 127,694 -- --
Total 286,295 -- 223,786 1,257 -18,792 267,671 293,757 6,393 204,193 -- --
Disclosure date of the board announcement approving securities
April 28, 2025
investments
Date for disclosure and announcement on approving securities
May 20, 2025
investment by the general meeting (if any)
(2) Investments in Derivative Financial Instruments
Applicable □Not applicable
Applicable □Not applicable
Unit: RMB'0,000
Closing contractual amount as
a percentage of the closing net
Beginning amount Ending amount Gain/loss
assets reported by the
in the
Type of contract Company (%)
Reporting
Period
Contractual Transaction Contractual Transaction Contractual Transaction
amount limit amount limit amount limit
Total 5,336,655 203,469 5,449,156 210,870 42,305 42.13 1.63
Accounting policies and
No significant change.
specific accounting principles
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
for hedging business during
the Reporting Period and a
description of whether there
have been significant changes
from those of the previous
reporting period
Description of actual profits During the Reporting Period, profit from changes in the fair value of hedged items amounted to RMB 120.41
and losses during the million; profit from the settlement of matured forward exchange contracts amounted to RMB 107.51 million, and
Reporting Period profit from the valuation of outstanding forward exchange contracts amounted to RMB 195.13 million.
During the Reporting Period, the Company's main foreign exchange risk exposures included exposures of assets and
Description of the hedging liabilities denominated in foreign currencies arising from business such as outbound sales, raw material
effect procurement, and financing. The uncertain risks arising from the exchange rate fluctuations were effectively hedged
by using derivative contracts with the same purchase amounts and maturities in opposite directions.
Funding source for derivative
Self-funded.
investment
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 trends and predicting operations (including orders and capital
plans), adopted forward foreign exchange contracts, options, and interest rate swaps to avoid future exchange rate
and interest rate risks. As its business scale changes, the Company will adjust its exchange rate risk management
strategy according to the actual market conditions and business plans.
Risk analysis:
associated with the main business operations. There is a market risk associated with potential losses due to
fluctuations in market prices, such as underlying interest rates and exchange rates, which affect the prices of
financial derivatives;
financial institution, and there is a risk of incurring losses due to paying fees to the bank for liquidating or selling
the derivatives below the buying prices;
there is a risk of performance failure due to deviation arising between the actual operating results and budgets;
approvals in accordance with established procedures or to accurately, promptly, and comprehensively record
Analysis of risks and control information related to financial derivative transactions may result in potential losses or missed trading opportunities
measures associated with in the derivative business. Moreover, if the trading operator fails to fully understand the terms of transaction
derivative investments held in contracts or product information, the Group may face legal risks and transaction losses.
the Reporting Period Risk control measures:
(including but not limited to 1. Basic management principles: the Group strictly follows the hedging principle mainly to fix costs and avoid risks.
market risk, liquidity risk, It is necessary for the financial derivatives business to align with the variety, size, direction, and duration of spot
credit risk, operational risk, goods, and this should not involve any speculative trading. When selecting hedging instruments, only simple
legal risk, etc.) financial derivatives that are closely related to the main business operations and comply with the requirements of
hedge accounting should be selected. Avoid engaging in complex business activities that go beyond the established
scope of operations and involve risks and pricing that are difficult to understand;
derivatives business, covering all key aspects such as preemptive prevention, in-process monitoring, and post-
processing. It reasonably allocates professionals for investment decision-making, business operations, and risk
control as required. Personnel involved in investment are required to fully understand the risks of financial
derivatives investment and strictly implement the business operations and risk management system of derivatives.
Before the holding company engages in derivative business activities, the holding company must submit detailed
business reports to the competent department of the Group, including information about its internal approval, main
product terms, operational necessity, preparations, risk analysis, risk management strategy, fair value analysis, and
accounting methods. Additionally, a special summary report of previously conducted operations should be
submitted. Only after obtaining the opinion of the relevant professional departments within the Group may the
holding company proceed with the operations.
promptly assess the risk exposure changes of invested financial derivatives, and compile reports to the Board of
Directors on business development;
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
value change of any hedging assets results in a total loss of either 10% of the Company's most recent audited net
assets, or more than RMB 10 million in absolute value.
Changes in market prices or
With the rapid expansion of overseas sales, the Company continued to follow the above rules in the operation of
fair value of derivative
forward foreign exchange contracts, interest rate swap contracts, and currency swap contracts to avoid and hedge
investments in the Reporting
against foreign exchange risks arising from operations and financing. During the Reporting Period, there were
Period (fair value analysis
profits and losses of RMB 120.41 million from changes in the fair value of hedged items and RMB 302.64 million
should include the
from derivatives. The fair value of derivatives is determined by the real-time quoted price of the foreign exchange
measurement method and
market, and is based on the difference between the contractual price and the forward exchange rate quoted
related assumptions and
immediately on the foreign exchange market on the balance sheet date.
parameters)
Legal matters involved (if
None
applicable)
Disclosure date of the board
announcement approving the
April 28, 2025
derivative investments (if
any)
Disclosure date of the general
meeting announcement
May 20, 2025
approving the derivative
investments (if any)
□Applicable Not applicable
There were no derivative investments for speculative purposes made by the Company during the Reporting Period.
□Applicable Not applicable
No raised capital is used during the Reporting Period.
VIII. Sale of Major Assets and Equity Investments
□Applicable Not applicable
The Company did not dispose of any major assets at the end of the Reporting Period.
□Applicable Not applicable
IX. Principal Subsidiaries and Joint Stock Companies
Applicable □Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the Company's net profits
Unit: RMB'0,000
Company Type of Principal Registered Operating Operating
Company name Total assets Net assets Net profits
change activity capital revenue profit
TCL China Star Subsidiary Display RMB 33.08 5,042,920 447,706 431,627
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Optoelectronics billion 21,364,771 7,808,211
Technology Co.,
Ltd.
New energy
TCL Zhonghuan
photovoltaics
Renewable
and other RMB 4.04
Energy Subsidiary 12,481,691 4,176,715 1,339,812 -471,875 -483,617
silicon billion
Technology Co.,
materials
Ltd.
business
Highly
Distribution RMB 412
Information Subsidiary 813,850 160,227 1,467,452 8,562 6,796
business million
Industry Co., Ltd.
Acquisition and disposal of subsidiaries in the Reporting Period
Applicable □Not applicable
How subsidiaries were
Effects on overall operations and
Company name obtained or disposed of
operating performance
in the Reporting Period
Zhengzhou Shangzhao Electronic Technology Co., Ltd. Newly established No significant effect
Chongqing Sunpiestore Technology Co., Ltd. Newly established No significant effect
Chongqing Shangpai Zhengcheng Technology Co., Ltd. Newly established No significant effect
Guizhou Shangpai Zhengcheng Technology Co., Ltd. Newly established No significant effect
Urumqi Shangpai Lingchuang Trading Development Co., Ltd. Newly established No significant effect
Anyang Shangyi Technology Co., Ltd. Newly established No significant effect
Chongqing Shangpai Zhengyan Technology Co., Ltd. Newly established No significant effect
Changji Shangpai Yifan Trading Co., Ltd. Newly established No significant effect
Urumqi Shangpai Zhuoyao Trading Development Co., Ltd. Newly established No significant effect
Shake Kawo (Xi'an) Technology Co., Ltd. Newly established No significant effect
Xi'an Shengkai Shangpai Technology Co., Ltd. Newly established No significant effect
Luoyang Shangyi Electronic Technology Co., Ltd. Newly established No significant effect
Zhengzhou Shangfeng Electronic Technology Co., Ltd. Newly established No significant effect
Xi'an Shake Jisu Technology Co., Ltd. Newly established No significant effect
Luoyang Shangxuan Electronic Technology Co., Ltd. Newly established No significant effect
Xi'an Shengfeng Shangpai Technology Co., Ltd. Newly established No significant effect
Chongqing Shangpai Zhengqi Technology Co., Ltd. Newly established No significant effect
Chongqing Shangpai Zhengfu Technology Co., Ltd. Newly established No significant effect
Chongqing Shangpai Zhengxin Technology Co., Ltd. Newly established No significant effect
Chongqing Shangpai Zhenghong Technology Co., Ltd. Newly established No significant effect
Chongqing Shangpai Zhengrong Technology Co., Ltd. Newly established No significant effect
Luoyang Shangwu Electronic Technology Co., Ltd. Newly established No significant effect
Zhengzhou Titi YunChuang Technology Co., Ltd. Newly established No significant effect
Guangzhou China Star Optoelectronics Technology Co., Ltd. Acquisition No significant effect
Guangzhou China Star Optoelectronics Display Co., Ltd. Acquisition No significant effect
Shenzhen Pulin Gaote Circuit Co., Ltd. Acquisition No significant effect
Capital increase for
Maoxing Holdings Limited No significant effect
controlling interest
TCL International Marketing Limited (BVI) De-registered No significant effect
Hohhot Shuguang New Energy Co., Ltd. Transferred No significant effect
Shanxi Province Loufan County Huanshuo New Energy Co.,
Transferred No significant effect
Ltd.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Xuzhou Huanneng New Energy Co., Ltd. Transferred No significant effect
Tianjin Binhai Huanxu New Energy Co., Ltd. Transferred No significant effect
Heilongjiang Huanju New Energy Co., Ltd. Transferred No significant effect
Explanation of Principal Subsidiaries and Joint Stock Companies: None
X. Structured Bodies Controlled by the Company
□Applicable Not applicable
XI. Risks and Responses
Global economic growth has underperformed, yet a definitive turnaround in major economies
has yet to emerge. Geopolitical conflicts and rising trade barriers are accelerating global economic
fragmentation, fueling a shift toward regionalization. Moreover, with persistent global inflation and
significant volatility in currency and financial markets, companies face considerable operational
risks. To address these challenges, the Company will continue to closely monitor macroeconomic
and geopolitical developments to identify emerging risks and develop contingency plans. Aligned
with the national strategy of “driving growth through new quality productive forces and promoting
innovation and technological breakthroughs,” the Company will strengthen its focus on core
businesses, uphold a technology and innovation-driven strategy to enhance competitive advantage,
increase shareholder value, and effectively navigate macroeconomic uncertainty.
The display panel industry has yet to see a significant recovery in demand for the first half of
consumption stimulus policies. Meanwhile, the photovoltaic industry is still grappling with a state
of oversupply, which is unlikely to improve in the near term. The Company will diligently monitor
shifts in industry supply and demand and optimize capacity allocation. At the same time, it will
enhance its investment in R&D to continuously enhance the technological content of products. This
strategic approach will allow the Company to expand its scale and efficiency advantages, thereby
building high competitive barriers and strengthening its market position.
Due to geopolitical friction and volatile raw material prices, global supply chain security and
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
costs are facing considerable uncertainty. To mitigate these risks, the Company remains committed
to its globalization strategy by deepening localized operations and optimizing its global supply
chain layout, aiming to build a more resilient risk-response capability. Furthermore, the Company
will establish long-term, stable strategic partnerships with its suppliers through collaboration and
other means, which will strengthen its ability to monitor, identify, and respond to upstream supply
risks.
Amid intensified competition in the display and new energy materials industries, the
expanding business and technology footprint of the Company has led to more frequent patent
disputes and higher IP risks. To address this, the Company will accelerate substantial R&D
investments, refining our core technologies and patent portfolio through a “self-development +
ecosystem collaboration” model. To further fortify our IP defense, the Company is forging strategic
partnerships with leading professional agencies. These collaborations will strengthen our
investigation of at-risk patents and enhance our patent risk early-warning systems, effectively
mitigating litigation threats and elevating our overall IP risk management.
Meanwhile, growing trade protectionism underscores the critical importance of robust
compliance management in overseas operations. The Company will strengthen its compliance
framework by implementing a system designed to meet the export control regulations of all key
global markets. These efforts include streamlining compliance procedures, implementing rigorous
employee training programs, fostering a culture of awareness, and collaborating closely with local
partners to proactively manage compliance risk.
XII. Formulation and Implementation of the Rules for Market Value Management and
Valuation Enhancement Plan
Whether the Company has formulated the Rules for Market Value Management
Yes □No
Whether the Company has disclosed the valuation enhancement plan
□Yes No
On December 27, 2024, the Proposal on Formulating the Rules for Market Value Management was deliberated on and adopted
at the 7th Meeting of the 8th-term Board of Directors. To strengthen the Company's market value management, further standardize its
market value management practices, effectively enhance the Company's investment value, increase investor returns, and protect the
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
legitimate rights and interests of the Company, the investors and other stakeholders, the Company has formulated the Rules for
Market Capitalization Management in accordance with the Company Law, the Securities Law, the Several Opinions of the State
Council on Strengthening Regulation to Prevent Risk and Promoting the High-quality Development of the Capital Market, the
Administrative Measures for the Information Disclosure by Listed Companies, the Guidelines for the Regulation of Listed Companies
No. 10 – Market Value Management, and other related provisions.
The Company firmly upholds the principle of shareholder returns, taking measures to protect investor interests, especially those
of minority shareholders. It upholds ethical operations, regulatory compliance, and a focused approach to core business, ensuring
prudent management. By developing advanced capabilities, the Company continuously enhances operational efficiency and quality
growth. Additionally, the Company prioritizes strong investor relations, enhancing transparency and communications to ensure
investment value reflects its core strengths, while proactively strengthening investor confidence.
XIII. Implementation of the "Joint Improvement of Quality and Investment Return" Action
Plan
Whether the Company has disclosed the "Joint Improvement of Quality and Investment Returns" Action Plan Announcement.
Yes □No
To better implement the guidance on enhancing the quality and investment value of listed companies, the Company has
developed the "Joint Improvement of Quality and Investment Returns" Action Plan, which is based on in-depth research on industry
trends and careful consideration of our future business trajectory. In addition, the Company has disclosed the progress report on the
"Joint Improvement of Quality and Investment Returns" Action Plan in combination with the implementation. For more details,
please see the Joint Improvement of Quality and Investment Returns Action Plan and the progress report on the Joint Improvement of
Quality and Investment Returns Action Plan disclosed on February 28, 2024, and May 8, 2024, respectively.
Anchored in its core display and new energy photovoltaic businesses, the Company leverages its operating principles—
"Strategic Leadership, Innovation-Driven, Advanced Manufacturing, and Global Operations"—to reinforce its industry leadership
and accelerate a future of sustainable, high-quality growth. Motivated by confidence in the Company’s future development and a
commitment to protecting the interests of all shareholders, the Proposal on Repurchase of a Portion of the Company’s Publicly
Traded Shares in 2025 was approved at the ninth meeting of the Eighth Board of Directors on April 15, 2025. The Company planned
to repurchase a portion of its publicly issued shares through centralized bidding on the Shenzhen Stock Exchange trading system. The
total amount of the repurchase was set at no less than RMB 700 million (inclusive) and no more than RMB 800 million (inclusive),
with a price cap of RMB 6.70 per share (inclusive). The repurchased shares will be used for the Company’s employee stock
ownership plan or equity incentive program. If the shares are not used within 36 months after the completion of the repurchase, the
unused portion will be canceled in accordance with relevant procedures. As of July 25, 2025, the 2025 share repurchase plan has
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
been fully implemented.
At the 2024 Annual General Meeting held on May 20, 2025, the Company approved the Proposal for the Company’s 2024
Profit Distribution Plan: Based on the total existing share capital of 18,779,080,767 shares, a cash dividend of RMB 0.5 (tax
inclusive) shall be distributed to all shareholders for every 10 shares, with a total distributed profit of RMB 938,954,038.35. The
remaining undistributed profit will be carried forward for future distribution. As of July 18, 2025, the aforementioned dividend
distribution plan has been fully implemented.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Part IV Corporate Governance, Environment and Social
Responsibility
I. Change of Directors, Supervisors and Senior Management
Applicable □Not applicable
Name Office title Type of change Date of change Reason for change
Yan Xiaolin Director Elected January 13, 2025 Elected
II. Interim Dividend Plan and Conversion from Capital Reserves into Share Capital
during the Reporting Period
□Applicable Not applicable
The Company has no interim dividend plan for profit distribution or conversion of capital reserve fund into share capital.
III. Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures
for Employees
Applicable □Not applicable
□Applicable Not applicable
Applicable □Not applicable
All the valid employee stock ownership plans during the Reporting Period
Proportion to
Total number of
Number of total share capital Funding source for
Name Scope of employees shares held Changes
employees of listed implementing the plan
(share)
companies
Employees' legitimate
income, performance-based
Employee Stock middle and senior Less than Not
Ownership Plan management and 3,600 applicable
permitted by laws and
(Phase III) outstanding key staff
regulations
Employees' legitimate
The Company's
middle and senior Less than Not
Stock Ownership 117,993,100 0.63% bonus or other distribution
management and 3,600 applicable
Plan permitted by laws and
outstanding key staff
regulations
Note: By the end of the reporting period, 2025 Employee Stock Ownership Plan (Draft) and other related matters have been deliberated and approved
by the Board of Directors. On July 17, 2025, the plan was deliberated and approved by the general meeting. The underlying shares have not been
transferred/purchased.
Shareholdings of Directors, Supervisors, and Senior Management under the Employee Stock Ownership Plan during the Reporting
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Period
Number of shares held at the Number of shares held at
Proportion to total share
Name Position beginning of the Reporting the end of the Reporting
capital of the Company
Period (share) Period (share)
Li
Chairman, CEO
Dongsheng
Zhao Jun Director, Senior Vice President
Director, Board Secretary and Senior
Liao Qian About 17.97 million shares About 8.94 million shares 0.05%
Vice President
Li Jian CFO
Yan Xiaolin Senior Vice President, CTO
Zhu Wei Employee Representative Supervisor
Changes of asset management institutions during the Reporting Period
□Applicable Not applicable
Changes of equity caused by the holder’s disposal of shares during the Reporting Period
□Applicable Not applicable
Exercise of shareholder rights during the Reporting Period
□Applicable Not applicable
During the reporting period, the Company’s Employee Stock Ownership Plans did not participate in voting at the general meeting or
exercise other shareholder rights.
Other relevant information and explanations of the Employee Stock Ownership Plan during the Reporting Period
□Applicable Not applicable
Changes in the members of the management committee for Employee Stock Ownership Plan
□Applicable Not applicable
Financial impact of the Employee Stock Ownership Plan on the Company during the Reporting Period and related accounting
treatment
Applicable □Not applicable
The financial, accounting treatment and taxation involved in the Company’s Employee Stock Ownership Plan (ESOP) shall be
implemented according to relevant laws, regulations and normative documents such as financial systems, accounting standards,
taxation systems, etc. The participants of the ESOP shall pay the personal income tax arising from their participation in accordance
with the law, and can choose to have the plan sell a corresponding amount of shares to offset the personal income tax, with the
remaining shares then allocated to them.
Termination of Employee Stock Ownership Plan during the Reporting Period
Applicable □Not applicable
Based on the relevant provisions of the 2021-2023 Employee Stock Ownership Plan (Phase I) (Revised Draft) and the 2021-2023
Employee Stock Ownership Plan (Phase II) (Draft), during the Reporting Period, all plan shares attributable to employees under the
aforementioned two plans have been fully vested, and the sales and transfer of such shares have been completed.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Other instructions: none
□Applicable Not applicable
IV. Environmental Information Disclosure
Whether the listed company and its major subsidiaries are included in the list of enterprises required to disclose environmental
information in accordance with laws
Yes □No
Number of enterprises included in the list of
enterprises that disclose environmental information 20
in accordance with the law
No. Name of enterprise Index for environmental information disclosure report
Enterprise Environmental Information Disclosure System (Hubei)
Wuhan China Star Optoelectronics http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/enterpriseInfo?
Technology Co., Ltd. XTXH=6a15f252-dd39-40a0-b08c-
ba0387086f16&XH=1677751270208009244672&year=2024
Enterprise Environmental Information Disclosure System (Hubei)
Wuhan China Star Optoelectronics http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/enterpriseInfo?
Bandaoti Display Technology Co., Ltd. XTXH=10470c7d-faf3-4981-8a87-
e813881ef749&XH=1677751269448009244672&year=2024
Department of Ecology and Environment of Guangdong Province -
Enterprise Environmental Information Disclosure System
Guangzhou China Star Optoelectronics
Bandaoti Display Technology Co., Ltd.
app.gdeei.cn/gdeepub/front/dal/report/list?entName=&reportType=temp&ar
eaCode=440100&entType=&reportDateStartStr=&reportDateEndStr=
Department of Ecology and Environment of Guangdong Province -
Enterprise Environmental Information Disclosure System
TCL China Star Optoelectronics
Technology Co., Ltd.
app.gdeei.cn/gdeepub/front/dal/report/list?entName=&reportType=temp&ar
eaCode=440100&entType=&reportDateStartStr=&reportDateEndStr=
Department of Ecology and Environment of Guangdong Province -
Enterprise Environmental Information Disclosure System
Shenzhen China Star Optoelectronics
Bandaoti Display Technology Co., Ltd.
app.gdeei.cn/gdeepub/front/dal/report/list?entName=&reportType=temp&ar
eaCode=440100&entType=&reportDateStartStr=&reportDateEndStr=
Enterprise Environmental Information Disclosure System (Jiangsu)
Suzhou China Star Optoelectronics http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
Technology Co., Ltd. webapp/web/viewRunner.html?viewId=http://ywxt.sthjt.jiangsu.gov.cn:1818
Enterprise Environmental Information Disclosure System (Jiangsu)
Suzhou China Star Optoelectronics http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
Display Co., Ltd. webapp/web/viewRunner.html?viewId=http://ywxt.sthjt.jiangsu.gov.cn:1818
Department of Ecology and Environment of Guangdong Province -
Enterprise Environmental Information Disclosure System
Guangzhou China Star Optoelectronics
Technology Co., Ltd.
app.gdeei.cn/gdeepub/front/dal/report/list?entName=&reportType=temp&ar
eaCode=440100&entType=&reportDateStartStr=&reportDateEndStr=
Inner Mongolia Zhonghuan Solar Enterprise Environmental Information Disclosure System (Inner Mongolia)
Material Co., Ltd. http://111.56.142.62:40010/support-yfpl-
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
web/web/viewRunner.html?viewId=http://111.56.142.62:40010/support-
yfpl-
web/web/sps/views/yfpl/views/yfplHomeNew/index.js&cantonCode=15000
Enterprise Environmental Information Disclosure System (Jiangsu)
Wuxi Zhonghuan Applied Materials http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
Co., Ltd. webapp/web/viewRunner.html?viewId=http://ywxt.sthjt.jiangsu.gov.cn:1818
Tianjin Zhonghuan Advanced Enterprise Environmental Information Disclosure System (Tianjin)
Material&Technology Co., Ltd. https://hjxxpl.sthj.tj.gov.cn:10800/#/gkwz/jcym
Tianjin Huanzhi New Energy Enterprise Environmental Information Disclosure System (Tianjin)
Technology Co., Ltd. https://hjxxpl.sthj.tj.gov.cn:10800/#/gkwz/jcym
Enterprise Environmental Information Disclosure System (Jiangsu)
Zhonghuan Advanced Bandaoti http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
Technology Co., Ltd. webapp/web/viewRunner.html?viewId=http://ywxt.sthjt.jiangsu.gov.cn:1818
Enterprise Environmental Information Disclosure System (Jiangsu)
http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
webapp/web/viewRunner.html?viewId=http://ywxt.sthjt.jiangsu.gov.cn:1818
Moka Technology (Guangdong) Co., Ecological Environment Statistics Business System
Ltd. https://hjtj.cnemc.cn/htqy/#/login
Central Pollution Control Board, India
https://eprplastic.cpcb.gov.in/
Industrial Park Management of the Department of Natural Resources and
CÔNG TY TNHH CÔNG NGHỆ Environment (Vietnam)
MOKA VIỆT NAM https://www.quangninh.gov.vn/So/sonongnghiepptnt/Trang/ChiTietTinTuc.a
spx?nid=8846
Ministry of Environment and Natural Resources
y Recursos Naturales | Gobierno | gob.mx
Enterprise Environmental Information Disclosure System (Tianjin)
http://111.33.173.33:10800/#/gkwz/jcym
Department of Ecology and Environment of Guangdong Province -
Techigh Circuit Technology (Huizhou)
Co., Ltd.
https://www-app.gdeei.cn/gdeepub/front/dal/report/list
The Company places a high priority on environmental protection by strictly adhering to national and local
environmental laws and regulations, conducting environmental management in full compliance with legal and
regulatory requirements, and disclosing relevant information in an orderly fashion to ensure its truthfulness,
accuracy, and completeness.
V. Social Responsibility
Consolidating and Expanding Poverty Alleviation Achievements, and Rural Revitalization
TCL TECH. is actively fulfilling its social responsibilities with a sustained commitment to public welfare.
Drawing on its industrial advantages, the TCL Public Welfare Foundation has donated photovoltaic power
generation systems to rural schools, forging a new green and sustainable model for educational support. It has also
advanced its smart education initiatives by expanding interconnected smart classroom networks between rural and
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
urban regions and extending cross-regional online teaching reach—efforts that foster equitable access to quality
educational resources. Simultaneously, the Foundation has fortified its university innovation support system. The
Foundation has deepened strategic collaborations with leading institutions, optimized mechanisms for nurturing
young scholars and technological innovation projects, and boosted the academic impact of its innovation and
entrepreneurship lectures. Additionally, the Foundation has comprehensively advanced its in-depth rural
revitalization initiative, prioritizing the implementation of localized projects in Huizhou—such as green energy
infrastructure development and rural education quality enhancement. This year, the “TCL Rose Action -
Employee Public Welfare Creativity Competition” will be upgraded to further promote sustainable public welfare
contributions.
Semi-Annual Summary of Work on Consolidating and Expanding Achievements in Poverty
Alleviation & Promoting Rural Revitalization
Rural education is a pivotal pillar of rural revitalization. To support this, the TCL Public Welfare Foundation,
in collaboration with TZE, donated rooftop photovoltaic (PV) power generation systems and their 25-year
electricity generation revenue to rural schools in need. The project not only utilizes green and clean energy,
aligning with national policies on energy conservation and environmental protection and the dual carbon goals,
but also generates income for the schools to improve their teaching environment and support students. To further
broaden the reach of this educational aid model and deepen the implementation of the “New Era Hope Project” in
support of rural education, the TCL Public Welfare Foundation collaborated with the China Youth Development
Foundation to donate rooftop photovoltaic systems to Hope Primary Schools nationwide. The project has already
reached rural areas, carrying out filed studies and visits in places like Shaanxi to understand the conditions and
needs of local schools and students.
To promote the balanced development of education between urban and rural areas and facilitate the
interconnection and sharing of educational resources, the TCL Public Welfare Foundation, in collaboration with
TCL Commercial Information Technology (Huizhou) Co., Ltd., TCL Communication Technology Holdings
Limited, and other partners, has established TCL Smart Classrooms in schools across urban and rural regions.
Leveraging next-generation technology, these classrooms form a “1+N” smart classroom network equipped with
TCL's advanced educational tools, including smart interactive blackboards, educational tablets, and eye-protection
lighting systems. This initiative enables the sharing of high-quality educational resources and promotes equity in
education. In the first half of the year, the program organized six interdisciplinary classes, enabling over 700
urban and rural students from diverse regions to learn and grow alongside one another through the smart
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
classroom network. To date, the project has benefited more than 7,700 students. The “TCL Smart Classroom”
initiative continued to empower balanced urban-rural education, making the “zero-distance” sharing of quality
educational resources a reality.
The TCL Public Welfare Foundation continued to advance its university donation series to advance
educational development, foster innovative talent, and promote breakthroughs in frontier technologies. In the first
half of 2025, the "TCL University Donation System" awarded RMB 6.5 million in funding to eight partner
universities, including South China University of Technology, Nankai University, Xidian University, and
Huazhong University of Science and Technology. The initiative also recognized five TCL Young Scholars and
selected five projects for the TCL Technology Innovation Fund. The selection process for these awards will
continue in the second half of the year. The “SUSTech-TCL Innovation and Entrepreneurship Lecture Series” also
continued, with a donation of RMB 1 million in the first half of 2025. The series featured nine themed lectures,
delivered by distinguished experts such as Tao Jingzhou, an independent arbitrator at the Paris Court and a
member of the Expert Committee of the China International Commercial Court of the Supreme People’s Court,
and Xie Kechang, former Vice President and Academician of the Chinese Academy of Engineering and a Foreign
Academician of the U.S. National Academy of Engineering.
In addition, the TCL Public Welfare Foundation continued to deepen its targeted assistance through measures
such as infrastructure construction, rural development support, and educational quality improvement, which helps
consolidate poverty alleviation achievements and promote urban-rural integration. In 2025, the Foundation
prioritized three local public welfare projects in Huizhou: donating RMB 1 million to construct a smart “PV-
Storage-Charging” integrated charging station in Xintang Village, to advance the development of green energy
infrastructure in rural areas; allocating RMB 1 million to support Huizhou’s rural revitalization project,
specifically for improving local educational and living conditions; and granting RMB 150,000 to fund an open
reading space at Huizhou Zhongkai High-Tech Zone No. 6 Middle School, enhancing the campus cultural
environment and improving youth literacy. Concurrently, the Foundation continued to organize the “TCL Rose
Action - Employee Public Welfare Creativity Competition”, encouraging employees to launch innovative projects
with social value and engage in community assistance at multiple levels.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Part V Significant Events
I. Commitments fulfilled during the reporting period and outstanding commitments as of the
end of the reporting period by the Company’s actual controller, shareholders, related parties,
acquirers, the Company itself, and other relevant commitment parties
□Applicable Not applicable
During the Reporting Period, there were no commitments that were made by the Company, its actual controller, shareholders, related
parties, acquirers, amd other relevant parties to be fulfilled within the reporting period or remained overdue and unfulfilled as at the
end of the reporting period.
II. Occupation of the Company’s funds by the Controlling Shareholder or any of Its Related
Parties for Non-Operational Purposes
□Applicable Not applicable
No such cases in the Reporting Period.
III. Irregularities in the Provision of Guarantees
□Applicable Not applicable
No such cases in the Reporting Period.
IV. Engagement and Disengagement of Independent Auditor
Whether the interim financial report has been audited
□Yes No
The Interim Report has not been audited.
V. Explanation of the Board of Directors and Supervisory Committee on the “Non-Standard
Auditor’s Report” for the Reporting Period
□Applicable Not applicable
VI. Explanation of the Board of Directors on the “Non-Standard Auditor’s Report” for the
Previous Year
□Applicable Not applicable
VII. Insolvency and Reorganization
□Applicable Not applicable
No such cases in the Reporting Period.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
VIII. Lawsuits
Significant lawsuits and arbitrations
□Applicable Not applicable
No such cases in the Reporting Period.
IX. Punishments and Rectifications
□Applicable Not applicable
No significant punishments or rectifications in the Reporting Period.
X. Credit Quality of the Company as well as its Controlling Shareholder and Actual
Controller
□Applicable Not applicable
XI. Major Related-Party Transactions
Applicable □Not applicable
For the Company's recurring related-party transactions during the Reporting Period, please refer to the related announcements
disclosed on www.cninfo.com.cn.
□Applicable Not applicable
During the Reporting Period, there were no major related-party transactions regarding purchase or disposal of assets or equity
interests.
□Applicable Not applicable
There were no related-party transactions regarding joint investments in third parties during the Reporting Period.
Applicable □Not applicable
Indicate whether there were any amounts due to and from related parties for non-operating purposes
□Yes No
During the Reporting Period, the Company had no amounts due to and from related parties for non-operating purposes.
□Applicable Not applicable
The Company had no deposits, loans, credit granting or other financial business with the related finance companies and related
parties.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Applicable □Not applicable
Deposits
Amount incurred in the
current period
Beginning Total
Relationship Daily deposit Total deposit
Related Range of balance withdrawal Ending balance
with the ceiling amount in
parties interest (RMB’0,00 amount in (RMB’0,000)
Company (RMB’0,000) current
period
period
(RMB’0,000)
(RMB’0,000)
Subsidiary of
TCL
Related
Industries 250,000.00 0.61%-1.04% 480.55 766,542.63 686,293.56 80,729.62
corporation
Holdings
Co., Ltd.
Loans
Amount incurred in the
current period
Relationship Beginning Total
Related Loan limit Range of Total loan Ending balance
with the balance repayment
parties (RMB'0,000) interest amount in (RMB’0,000)
Company (RMB’0,000) amount in
current
current
period
period
(RMB’0,000)
(RMB’0,000)
Subsidiary of
TCL
Related
Industries 250,000.00 - - - - -
corporation
Holdings
Co., Ltd.
Credit or other financial business
Relationship with the Total amount Ending balance
Related parties Business type
Company (RMB'0,000) (RMB’0,000)
Subsidiary of TCL The balance of
Credit granting (notes
Industries Holdings Related corporation comprehensive credit on 67,486.47
discount)
Co., Ltd. any day shall not exceed
Subsidiary of TCL RMB 2.5 billion
Industries Holdings Credit granting (notes (including loans, notes
Related corporation 56,279.19
Co., Ltd. acceptance) discounting, and notes
acceptance)
Applicable □Not applicable
Related inquiries on the website for temporary disclosure of major related-party transactions
Date of
Title of announcement announcement Website for disclosure
disclosure
Announcement on the Anticipated Recurring Related-Party Transactions
April 29, 2025 http://www.cninfo.com.cn
for 2025
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Announcement on the Related-Party Transactions with Shenzhen Jucai
Supply Chain Technology Co., Ltd. in 2025
Report on the Execution of Recurring Related-Party Transactions in
Special note on financial businesses, including deposits and loans,
relating to related-party transactions of finance companies
Announcement on Continuing to Provide Financial Services by TCL
Technology Group Finance Co., Ltd. to Related Parties and Renewing
the Financial Services Agreement for Related-Party Transactions
Announcement on the Launch of Accounts Receivable Factoring and the
Related-Party Transaction
XII. Major Contracts and Execution thereof
(1) Entrustment
□Applicable Not applicable
During the reporting period, the Company had no entrustment projects that brought profit or loss of more than 10% of the Company's
total profit in the reporting period.
(2) Contracting
□Applicable Not applicable
During the reporting period, the Company had no contracting projects that brought profit or loss of more than 10% of the Company's
total profit in the reporting period.
(3) Leases
□Applicable Not applicable
During the reporting period, the Company had no lease projects that brought profit or loss of more than 10% of the Company's total
profit in the reporting period.
Applicable □Not applicable
Unit: RMB'0,000
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Disclosure date
of Actual Counter- Guarantee for
Guarantee Actual occurrence Type of Collateral (if Term of Fulfilled or
Obligor announcement guarantee guarantee (if related parties
limit date guarantee any) guarantee not
on guarantee amount any) or not
limit
Shenzhen Qianhai
Joint
Sailing International With counter-
May 20, 2025 76,000 January 8, 2025 48,585 liability / 8-250 days No No
Supply Chain guarantee
guarantee
Management Co., Ltd.
Guangzhou Qihang Joint
With counter-
International Supply May 20, 2025 10,000 - 0 liability / - - No
guarantee
Chain Co., Ltd. guarantee
Aijiexu New Electronic Joint Guarantee in
Display Glass May 20, 2025 35,000 April 28, 2020 15,934 liability / proportion to 3.3-5 years No No
(Shenzhen) Co., Ltd. guarantee shareholding
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
percentage
Guarantee in
Inner Mongolia Xinhua Joint
proportion to
Bandaoti Technology May 20, 2025 58,000 May 22, 2023 38,000 liability / 4.9 years No No
shareholding
Co., Ltd. guarantee
percentage
Guarantee in
Inner Mongolia Joint
proportion to
Xinhuan Silicon Energy May 20, 2025 180,000 June 15, 2023 153,074 liability / 4 years No No
shareholding
Technology Co., Ltd. guarantee
percentage
Total actual amount of
Total approved limit for such guarantees
in Reporting Period (A1)
Reporting Period (A2)
Total actual balance of
Total approved limit for such guarantees
at the end of the Reporting Period (A3)
of Reporting Period (A4)
Guarantees provided by the Company as the parent for its subsidiaries
Disclosure date
of Actual Counter- Guarantee for
Guarantee Actual occurrence Type of Collateral (if Term of Fulfilled or
Obligor announcement guarantee guarantee (if related parties
limit date guarantee any) guarantee not
on guarantee amount any) or not
limit
TCL MOKA Joint
INTERNATIONAL May 20, 2025 100,000 May 31, 2023 10,016 liability / / 320-336 days No No
LIMITED guarantee
Joint
Guangzhou Zhihui
May 20, 2025 30,000 November 29, 2024 14,965 liability / / 6.4 years No No
Shengke Co., Ltd.
guarantee
TTE ELECTRONICS Joint
INDIA PRIVATE May 20, 2025 10,000 - 0 liability / / - - No
LIMITED guarantee
Huizhou Moka Joint
Technology May 20, 2025 20,000 - 0 liability / / - - No
Development Co., Ltd. guarantee
Joint
Moka Technology 22 days-3.7
May 20, 2025 400,000 November 24, 2023 127,211 liability / / No No
(Guangdong) Co., Ltd. years
guarantee
Shenzhen Zhixian Shijie Joint
Software Technology May 20, 2025 1,000 - 0 liability / / - - No
Co., Ltd. guarantee
Shenzhen Zhilian Joint
Shuchuang Technology May 20, 2025 1,000 - 0 liability / / - - No
Co., Ltd. guarantee
MOKA
Joint
TECHNOLOGY
May 20, 2025 20,000 - 0 liability / / - - No
VIETNAM
guarantee
COMPANY LIMITED
Joint
TCL Technology 14 days-340
May 20, 2025 500,000 July 14, 2020 357,930 liability / / No No
Investments Limited days
guarantee
TCL China Star Joint
Optoelectronics May 20, 2025 2,000,000 December 22, 2022 392,350 liability / / No No
years
Technology Co., Ltd. guarantee
Guangdong Juhua Joint
Printed Display May 20, 2025 5,000 - 0 liability / / - - No
Technology Co., Ltd. guarantee
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Guangzhou China Star
Joint
Optoelectronics 21 days-4.7
May 20, 2025 1,750,000 May 19, 2022 855,049 liability / / No No
Bandaoti Display years
guarantee
Technology Co., Ltd.
China Star
Joint
Optoelectronics
May 20, 2025 10,000 - 0 liability / / - - No
International (HK)
guarantee
Limited
Huizhou China Star Joint
Optoelectronics Display May 20, 2025 610,000 March 23, 2021 456,578 liability / / No No
years
Co., Ltd. guarantee
Shenzhen China Star
Joint
Optoelectronics 301 days-4
May 20, 2025 710,000 April 28, 2018 485,671 liability / / No No
Bandaoti Display years
guarantee
Technology Co., Ltd.
Suzhou China Star Joint
Optoelectronics May 20, 2025 20,000 - 0 liability / / - - No
Technology Co., Ltd. guarantee
Suzhou China Star Joint
Optoelectronics Display May 20, 2025 60,000 August 30, 2022 50,695 liability / / 6.9 days No No
Co., Ltd. guarantee
China Display
Joint
Optoelectronics 4 days-189
May 20, 2025 100,000 December 24, 2024 14,824 liability / / days No No
Technology (Huizhou)
guarantee
Co., Ltd.
Wuhan China Star
Joint
Optoelectronics 21 days-7.3
May 20, 2025 1,760,000 June 29, 2021 1,386,042 liability / / No No
Bandaoti Display years
guarantee
Technology Co., Ltd.
Wuhan China Star Joint
Optoelectronics May 20, 2025 1,300,000 August 25, 2022 940,488 liability / / No No
years
Technology Co., Ltd. guarantee
Joint
Highly (Tianjin) E-
May 20, 2025 10,000 May 23, 2025 5,331 liability / / 4-11 days No No
Commerce Co., Ltd.
guarantee
Joint
Highly (Tianjin)
May 20, 2025 61,000 March 27, 2025 37,176 liability / / 11-134 days No No
Technology Co., Ltd.
guarantee
Joint
Mingsi Technology Co.,
May 20, 2025 20,000 - 0 liability / / - - No
Ltd.
guarantee
Beijing Hecheng Joint
Nuoxin Technology May 20, 2025 12,000 February 27, 2025 12,000 liability / / 1.2 years No No
Co., Ltd. guarantee
Joint
Beijing Lingyun Data
May 20, 2025 71,000 July 19, 2024 19,592 liability / / 9-284 days No No
Technology Co., Ltd.
guarantee
Joint
Beijing Sunpiestore 66 days-1.2
May 20, 2025 136,000 September 10, 2023 108,000 liability / / No No
Technology Co., Ltd. years
guarantee
Joint
Highly Information
May 20, 2025 434,000 June 1, 2024 287,109 liability / / 1 day-2 years No No
Industry Co., Ltd.
guarantee
Joint
Qingdao Blue Business
May 20, 2025 1,000 - 0 liability / / - - No
Consulting Co., Ltd.
guarantee
Shaanxi TiTi Electronic May 20, 2025 1,000 - 0 Joint / / - - No
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Technology Co., Ltd. liability
guarantee
Joint
Tianjin TiTi Yunchuang
May 20, 2025 10,000 February 27, 2025 10,000 liability / / 1.2 years No No
Technology Co., Ltd.
guarantee
Tianjin Wanfang Joint
Nuoxin Technology May 20, 2025 10,000 February 27, 2025 10,000 liability / / 1.2 years No No
Co., Ltd. guarantee
Joint
Tianjin Xincheng Pilot
May 20, 2025 1,000 - 0 liability / / - - No
Technology Co., Ltd.
guarantee
Joint
Beijing Youyi Online
May 20, 2025 10,000 May 23, 2025 6,491 liability / / 1-25 days No No
Technology Co., Ltd.
guarantee
Joint
Tianjin Printronics
May 20, 2025 53,000 November 17, 2022 8,625 liability / / 5.2 years No No
Circuit Corporation
guarantee
Joint
TCL Technology Group
May 20, 2025 50,000 August 31, 2022 40,000 liability / / 2.2 years No No
(Tianjin) Co., Ltd.
guarantee
Joint
TCL Technology Group
May 20, 2025 150,000 - 0 liability / / - - No
Finance Co., Ltd.
guarantee
Joint
TCL Culture Media
May 20, 2025 2,000 - 0 liability / / - - No
(Shenzhen) Co., Ltd.
guarantee
Total actual amount of
Total guarantee limit for subsidiaries such guarantees for
approved in the Reporting Period (B1) subsidiaries in Reporting
Period (B2)
Total balance of actual
Total guarantees limit for subsidiaries
guarantees for
approved at the end of the Reporting 10,439,000 5,636,143
subsidiaries at the end of
Period (B3)
the Reporting Period (B4)
Guarantees provided between subsidiaries
Disclosure date
of Actual Counter- Guarantee for
Guarantee Actual occurrence Type of Collateral (if Term of Fulfilled or
Obligor announcement guarantee guarantee (if related parties
limit date guarantee any) guarantee not
on guarantee amount any) or not
limit
Techigh Circuit Joint
Technology (Huizhou) May 20, 2025 5,100 July 25, 2024 350 liability / / 24-56 days No No
Co., Ltd. guarantee
Techigh Circuit Joint
Technology (Zhuhai) May 20, 2025 50,000 April 23, 2024 19,769 liability / / 8.7 years No No
Co., Ltd. guarantee
Shenzhen China Star
Joint
Optoelectronics
May 20, 2025 1,310,000 April 28, 2018 1,214,179 liability / / 0.8-3 years No No
Bandaoti Display
guarantee
Technology Co., Ltd.
Huizhou China Star Joint
Optoelectronics Display May 20, 2025 460,000 January 16, 2025 82,500 liability / / 2.5-2.7 years No No
Co., Ltd. guarantee
Joint
TCL Moka International
May 20, 2025 80,000 January 23, 2025 1,133 liability / / 26-87 days No No
Limited
guarantee
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Zhonghuan Energy Joint
(Inner Mongolia) Co., June 24, 2017 8,440 July 21, 2017 8,440 liability / / 7.1 years No No
Ltd. guarantee
Inner Mongolia Joint
Zhonghuan Crystal March 22, 2021 279,977 April 30, 2021 279,977 liability / / 2.8 years No No
Materials Co., Ltd. guarantee
Joint
Ningxia Zhonghuan January 23,
Solar Material Co., Ltd. 2022
guarantee
Inner Mongolia Joint
Zhonghuan Crystal May 26, 2022 63,735 June 28, 2022 63,735 liability / / 4 years No No
Materials Co., Ltd. guarantee
Tianjin Huanou New Joint
Energy Technology Co., May 26, 2022 69,749 September 28, 2022 69,749 liability / / 4.2 years No No
Ltd guarantee
Wuxi Zhonghuan Joint
Applied Materials Co., May 26, 2022 85,129 June 30, 2022 85,129 liability / / 4 years No No
Ltd. guarantee
Joint
Huansheng New Energy
May 26, 2022 28,965 September 30, 2022 28,965 liability / / 2.2 years No No
(Jiangsu) Co., Ltd.
guarantee
Joint
Huansheng New Energy
May 26, 2022 56,575 March 29, 2023 56,575 liability / / 4.7 years No No
(Jiangsu) Co., Ltd.
guarantee
Joint
Huansheng New Energy
April 8, 2023 104,600 February 28, 2024 69,000 liability / / 5.7 years No No
(Tianjin) Co., Ltd.
guarantee
Huansheng New Energy Joint
(Inner Mongolia) Co., April 26, 2025 140,000 June 30, 2025 40,700 liability / / 8 years No No
Ltd. guarantee
Total actual amount of
Total guarantee limit for subsidiaries such guarantees for
approved in the Reporting Period (C1) subsidiaries in the
Reporting Period (C2)
Total balance of actual
Total guarantee limit for subsidiaries
guarantees for
approved at the end of the Reporting 5,708,900 2,546,700
subsidiaries at the end of
Period (C3)
the Reporting Period (C4)
Total guarantee amount (total of the three kinds of guarantees above)
Total actual guarantee
Total guarantee limit approved in the
Reporting Period (A1+B1+C1)
Period (A2+B2+C2)
Total actual guarantee
Total approved guarantee limit at the end balance at the end of the
of the Reporting Period (A3+B3+C3) Reporting Period
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets 157.45%
Of which:
Balance of guarantees provided for shareholders, the actual controller, and
their related parties (D)
Balance of debt guarantees provided directly or indirectly for obligors with an
over 70% debt/asset ratio (E)
Amount by which the total guarantee amount exceeds 50% of the Company’s 5,758,681
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
net assets (F)
Total of the three above amounts (D+E+F) 5,758,681
Joint liability already borne or possibly borne with evidence in the Reporting
Period for outstanding guarantees (if any)
Guarantees provided in breach of prescribed procedures (if any) -
Note: (1) The guarantee period in the above table is the remaining guarantee period of the principal debt. The actual guarantee is valid for two or three years
from the expiration date of the principal debt, which is subject to the single contract.
(2) In the table above, Shenzhen China Star Optoelectronics Bandaoti Display Technology Co., Ltd., a subsidiary controlled by the Company, was jointly
guaranteed by the Company and its subsidiary, TCL China Star Optoelectronics Technology Co., Ltd., in an external syndicated loan, in which the Company
provided a certain percentage of guarantee, while TCL China Star Optoelectronics Technology Co., Ltd. provided full guarantee. As at the end of the Reporting
Period, the debt portion under joint guarantee amounted to RMB 12,141.79 million. The joint guarantee has been filled in the "Company’s Guarantee for
Subsidiaries" and "Guarantee Among Subsidiaries", respectively.
Applicable □Not applicable
Unit: RMB'0,000
Impairment
allowance for
unrecovered
Unrecovered
Type Funding source Amount Undue amount overdue amount of
overdue amount
wealth
management
products
Bank’s wealth
management Self-funded 1,152,862.21 535,057.21 0 0
product
Securities firm's
wealth
Self-funded 526,354.14 526,354.14 0 0
management
product
Trust plan Self-funded 629,750.00 629,750.00 0 0
Other Self-funded 626,659.21 261,943.69 0 0
Total 2,935,625.56 1,953,105.04 0 0
The specific situation of high-risk entrusted wealth management with a large single amount or low security and poor liquidity
□Applicable Not applicable
Situation in which the Company fails to recover its principal for entrusted wealth management products, or other situations that may
result in impairment
□Applicable Not applicable
□Applicable Not applicable
The Company did not have any other major contracts that should be disclosed during the reporting period.
XIII. Other Significant Events
□Applicable Not applicable
There are no other significant events that need to be explained for the Reporting Period.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
XIV. Significant Events of the Company’s Subsidiaries
□Applicable Not applicable
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Part VI Changes in Shares and Information about Shareholders
I. Changes in Shares
Unit: share
Before change Increase/decrease in the Reporting Period (+/-) After change
Shares
converted
New Bonus
Shares Percentage from Others Subtotal Shares Percentage
issues shares
capital
reserve
I. Restricted
Shares
state-owned legal 0 0.00% 0 0 0 0 0 0 0.00%
entities
other domestic 679,459,071 3.62% 0 0 0 2,875,800 2,875,800 682,334,871 3.63%
investors
Among which:
shares held by
domestic legal
entities
Shares held by
domestic 679,459,071 3.62% 0 0 0 2,875,800 2,875,800 682,334,871 3.63%
individuals
foreign investors
Among which:
shares held by
foreign legal
entities
Shares held by
foreign 0 0.00% 0 0 0 0 0 0 0.00%
individuals
II. Non-restricted
shares
denominated 18,099,621,696 96.38% 0 0 0 -2,875,800 -2,875,800 18,096,745,896 96.37%
ordinary shares
III. Total shares 18,779,080,767 100.00% 0 0 0 0 0 18,779,080,767 100.00%
Reasons for changes in shares
Applicable □Not applicable
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Holders under the Employee Stock Ownership Plan. The Company has completed the second non-trading transfer under the 2021-
Plan (Phase III). Among them, 3,834,401 shares were transferred to the current directors, supervisors, and senior managers of the
Company through non-trading transfer.
decreased by the same amount.
Approval of changes in shares
□Applicable Not applicable
Transfer of share ownership
Applicable □Not applicable
under the Employee Stock Ownership Plan. The Company has completed the second non-trading transfer under the 2021-2023
Employee Stock Ownership Plan (Phase II) and the first non-trading transfer under the 2021-2023 Employee Stock Ownership Plan
(Phase III). Among them, 3,834,401 shares were transferred to the current directors, supervisors, and senior managers of the
Company through non-trading transfer, and 29,430,560 shares were transferred to other holders through non-trading transfer.
Progress on any share repurchase
Applicable □Not applicable
For more details, please refer to the relevant announcements released on May 7, 2025, and June 4, 2025, on designated information
disclosure media.
and the Results of the Repurchase (Announcement No.: 2025-069). From July 18, 2025, to July 25, 2025, the Company repurchased
a total of 174,747,985 shares of the Company through centralized bidding from the special securities account for repurchase,
accounting for 0.88% of the total share capital of the Company. The highest and lowest trading prices were RMB 4.67 per share and
RMB 4.49 per share, respectively, and the total payment approximated to RMB 800 million (excluding transaction fees).
Progress on reducing the repurchased shares by means of centralized bidding
□Applicable Not applicable
Effects of changes in shares on the basic earnings per share, diluted earnings per share, net asset per share attributable to the
Company's ordinary shareholders and other financial indicators of the prior year and the prior accounting period, respectively
Applicable □Not applicable
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Item January - December 2024 January - June 2025
Basic earnings per share (RMB/share) 0.0842 0.1014
Diluted earnings per share (RMB/share) 0.0833 0.1003
Item December 31, 2024 June 30, 2025
Net assets per share attributable to ordinary
shareholders of the Company (RMB)
Other information that the Company considers necessary or is required by the securities regulatory authorities to be disclosed
□Applicable Not applicable
Applicable □Not applicable
Unit: share
Number of Number of
Number of Number of Date of
Name of released increased Reason for
restricted shares restricted shares restriction
shareholder restricted shares restricted shares restriction
at period-begin at period-end release
of the period of the period
Part of the
shareholding of
Directors,
directors,
supervisors, and
supervisors, and
senior 679,459,071 - 2,875,800 682,334,871 Not applicable
senior
management of
management is
the Company
locked as
stipulated
Total 679,459,071 - 2,875,800 682,334,871 -- --
II. Issuance and Listing of Securities
□Applicable Not applicable
III. Total Number of Shareholders and Their Shareholdings
Unit: share
Total number of ordinary Total number of preferred shareholders with
shareholders by the end of the 686,366 resumed voting rights by the end of the reporting 0
Reporting Period period
Shareholdings of ordinary shareholders with more than 5% or the top 10 shareholders of ordinary shares (excluding the lending of shares under
refinancing)
Number of Shares in pledge, marked or
Number of Number of non-
shares held at Increase/decrease frozen
Name of Nature of Shareholding restricted restricted
the end of the during the
shareholder shareholder percentage ordinary ordinary shares
Reporting Reporting Period Status Number
shares held held
Period
Domestic Not
Li Dongsheng 0
individual/ applicable
Ningbo Jiutian Domestic 6.75% 1,266,680,807 1,333,002 674,839,554 591,841,253
Liancheng general legal In pledge 169,320,637
Equity entity
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Investment
Partnership
(Limited
Partnership)
Hong Kong
Securities Foreign legal Not
Clearing entity applicable
Company Ltd.
Huizhou
Investment Public legal Not
Holding Co., entity applicable
Ltd.
China Securities
Domestic
Finance Not
general legal 2.19% 410,554,710 0 0 410,554,710 0
Corporation applicable
entity
Limited
Industrial and
Commercial
Fund, wealth
Bank of China - Not
management 1.78% 334,564,770 10,370,400 0 334,564,770 0
Huatai- applicable
product, etc.
Pinebridge CSI
Wuhan Optics
Valley
Public legal
Industrial 1.33% 249,848,896 60 0 249,848,896 In pledge 124,000,000
entity
Investment Co.,
Ltd.
China
Construction Fund, wealth
Not
Bank - Efund - management 1.27% 238,502,265 14,868,000 0 238,502,265 0
applicable
CSI 300 ETF product, etc.
Initiated
Bank of China
Limited -
Fund, wealth
Huatai- Not
management 1.16% 218,720,170 43,122,200 0 218,720,170 0
Pinebridge CSI applicable
product, etc.
Photovoltaic
Industry ETF
Perseverance
Asset
Management
Partnership Fund, wealth
Not
(Limited management 1.10% 206,800,000 7,000,020 0 206,800,000 0
applicable
Partnership) - product, etc.
Gaoyi Xiaofeng
No. 2 Zhixin
Fund
Strategic investor or general
legal entity becoming top-10
shareholders due to private Not applicable
placement of new shares (if
any) (see Note 3)
Among the top 10 shareholders, Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity Investment Partnership
Note on the above (Limited Partnership) became persons acting in concert by signing the Agreement on Concerted Action. Mr. Li
shareholders’ associations or Dongsheng holds 899,786,071 shares and Ningbo Jiutian Liancheng Equity Investment Partnership (Limited
concerted actions Partnership) holds 366,894,736 shares, representing 1,266,680,807 shares in total and becoming the largest
shareholder of the Company.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Explain if any of the
shareholders above was
involved in entrusting/being Not applicable
entrusted with voting rights or
waiving voting rights
Explanation of repurchase
accounts among the top 10
Not applicable
shareholders (if any) (see Note
Shareholdings of top 10 non-restricted ordinary shareholders (excluding the lending of shares under refinancing and restricted shares held by senior
management)
Type of shares
Name of shareholder Number of non-restricted shares held at the end of the reporting period
Type of shares Quantity
Hong Kong Securities Clearing RMB-denominated
Company Ltd. ordinary shares
Li Dongsheng
Ningbo Jiutian Liancheng RMB-denominated
Equity Investment Partnership ordinary shares
(Limited Partnership)
Huizhou Investment Holding RMB-denominated
Co., Ltd. ordinary shares
China Securities Finance RMB-denominated
Corporation Limited ordinary shares
Industrial and Commercial
RMB-denominated
Bank of China - Huatai- 334,564,770 334,564,770
ordinary shares
Pinebridge CSI 300 ETF
Wuhan Optics Valley RMB-denominated
Industrial Investment Co., Ltd. ordinary shares
China Construction Bank - RMB-denominated
Efund - CSI 300 ETF Initiated ordinary shares
Bank of China Limited -
RMB-denominated
Huatai-Pinebridge CSI 218,720,170 218,720,170
ordinary shares
Photovoltaic Industry ETF
Perseverance Asset
Management Partnership RMB-denominated
(Limited Partnership) - Gaoyi ordinary shares
Xiaofeng No. 2 Zhixin Fund
Related or acting-in-concert
Among the top 10 shareholders with non-restricted shares, Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity
parties among top 10 non-
Investment Partnership (Limited Partnership) became persons acting in concert by signing the Agreement on
restricted shareholders, as well
Concerted Action. Mr. Li Dongsheng holds 224,946,517 non-restricted shares and Ningbo Jiutian Liancheng Equity
as between top 10 non-
Investment Partnership (Limited Partnership) holds 366,894,736 non-restricted shares, representing 591,841,253 non-
restricted shareholders and top
restricted shares in total.
Explanation for the top 10
ordinary shareholders
At the end of the Reporting Period, Wuhan Optics Valley Industrial Investment Co., Ltd., among the shareholders
participating in securities
above, held certain shares of the Company through a credit security account.
margin trading (if any) (see
Note 4)
Participation of shareholders holding more than 5%, the top 10 shareholders, and the top 10 non-restricted shareholders in the lending
of shares under the refinancing business
□Applicable Not applicable
Change in the top 10 shareholders and the top 10 non-restricted shareholders due to securities lending/returning under refinancing as
compared to the previous period
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
□Applicable Not applicable
Indicate whether any of the top 10 ordinary shareholders or the top 10 non-restricted ordinary shareholders of the Company
conducted any promissory repurchase transactions during the Reporting Period
□Yes No
No such cases in the Reporting Period.
IV. Change in Shareholdings of Directors, Supervisors, and Senior Management
Applicable □Not applicable
Number of
Number of
restricted Number of
restricted
Number of Decrease shares restricted
Number of shares
shares held at Increase of of shares granted at shares
shares held at granted at
Position the beginning shares during during the the granted
Name Position the end of the the end of
Status of the the reporting reporting beginning during the
Reporting the
Reporting period (share) period of the reporting
Period (share) reporting
Period (share) (share) reporting period
period
period (share)
(share)
(share)
Li Chairman,
Incumbent 898,453,069 1,333,002 - 899,786,071 - - -
Dongsheng CEO
Zhang Vice Chairman
Incumbent - - - - - - -
Zuoteng of the Board
Director,
Board
Liao Qian Secretary and Incumbent 1,726,619 714,210 - 2,440,829 - - -
Senior Vice
President
Director,
Zhao Jun Senior Vice Incumbent 1,271,538 264,403 - 1,535,941 - - -
President
Director,
Yan Xiaolin Senior Vice Incumbent 2,810,558 409,482 - 3,220,040 - - -
President, CTO
Non-Executive
Lin Feng Incumbent - - - - - - -
Director
Independent
Jin Li Incumbent - - - - - - -
director
Wan Independent
Incumbent - - - - - - -
Liangyong director
Wang Independent
Incumbent - - - - - - -
Lixiang director
Chairman of
the
Supervisory
Wu Zhiming Committee, Incumbent - - - - - - -
Shareholder
Representative
Supervisor
Zhuang Shareholder
Incumbent - - - - - - -
Weidong Representative
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Supervisor
Employee
Zhu Wei Representative Incumbent 107,704 82,909 - 190,613 - - -
Supervisor
Li Jian CFO Incumbent 1,575,942 1,030,395 - 2,606,337 - - -
Wang Senior Vice
Incumbent - - - - - - -
Yanjun President
Total -- -- 905,945,430 3,834,401 - 909,779,831 - - -
Note: 1. The increase in the number of shares held by the Company's directors, supervisors, and senior management during the
Reporting Period was due to the non-trading transfer of shares corresponding to holders' shares under the 2021-2023 Employee
Stock Ownership Plan (Phase II) and the 2021-2023 Employee Stock Ownership Plan (Phase III) to employees’ securities accounts.
For details, please refer to the Voluntary Announcement on the Non-Trading Transfer of Certain Shares of the Holders under the
Employee Stock Ownership Plan published by the Company on the designated media on June 19, 2025.
Supervisory Committee. They reviewed and approved the Proposal on Canceling the Supervisory Committee and Amending the
Articles of Association and its Attachments, according to which the Company plans to cancel the Supervisory Committee and
supervisors and revise the Articles of Association and its attachments accordingly. The proposal is still subject to approval by the
Company’s general meeting.
V. Change of the Controlling Shareholder or the Actual Controller
Explanation on the absence of a controlling shareholder or actual controller:
Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity Investment Partnership (Limited Partnership) became persons acting
in concert by signing the Agreement on Concerted Action, holding 1,266,680,807 shares in total and becoming the largest
shareholder of the Company.
According to the Company Law, a controlling shareholder refers to a shareholder who owns over 50% of a limited liability
company’s total capital or over 50% of a joint stock company’s total share capital; or, despite the ownership of less than 50% of a
limited liability company’s total capital or less than 50% of a joint stock company’s total number of shares, who can still prevail in
the resolution of a meeting of shareholders according to the voting rights corresponding to their interest in the limited liability
company’s total capital or the joint stock company’s total number of shares. According to the definition above, the Company has no
controlling shareholder.
The "actual controller" refers to an entity that, while not a shareholder of a company, effectively controls its actions or
operations through investment relationships, contractual agreements, or other arrangements. According to the definition above, the
Company has no actual controller.
Change of the controlling shareholder in the Reporting Period
□Applicable Not applicable
Change of the actual controller in the Reporting Period
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
□Applicable Not applicable
VI Preferred Shares
□Applicable Not applicable
During the reporting period, the Company did not have preferred shares.
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Part VII Bonds
Applicable □Not applicable
I. Enterprise Bonds
□Applicable Not applicable
No enterprise bonds in the Reporting Period.
II. Corporate Bonds
Applicable □Not applicable
Unit: RMB'0,000
Way of
principal
Date of Outstanding Coupon Place of
Bond name Abbr. Bond code Value date Maturity repayment
issuance balance rate trading
and interest
payment
Interest
Sci-Tech Innovation
payable
Corporate Bonds (Digital
annually
Economy) Publicly Offered Shenzhen
July 4, July 8, July 8, and
by TCL Technology Group 24TCLK4 148804.SZ 100,000.00 2.46% Stock
Corporation to Professional Exchange
repayable
Investors in 2024 (Phase 3)
in full upon
(Type 2)
maturity
Interest
Sci-Tech Innovation
payable
Corporate Bonds (Digital
annually
Economy) Publicly Offered July 8, Shenzhen
July 4, July 8, and
by TCL Technology Group 24TCLK3 148803.SZ 2029 (Note 100,000.00 2.29% Stock
Corporation to Professional 1) Exchange
repayable
Investors in 2024 (Phase 3)
in full upon
(Type 1)
maturity
Interest
Sci-Tech Innovation payable
Corporate Bonds (Digital annually
April 11, Shenzhen
Economy) Publicly Offered April 9, April 11, and
by TCL Technology Group 2024 2024 principal
Corporation to Professional repayable
Investors in 2024 (Phase 2) in full upon
maturity
Sci-Tech Innovation February 1, Interest Shenzhen
January 30, February 1,
Corporate Bonds (Digital 24TCLK1 148600.SZ 2026 (Note 150,000.00 2.10% payable Stock
Economy) Publicly Offered 3) annually Exchange
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
by TCL Technology Group and
Corporation to Professional principal
Investors in 2024 (Phase 1) repayable
in full upon
maturity
Investor eligibility (if any) For qualified investors / for professional investors; not applicable for foreign bonds
Match to trade, click to trade, inquire to trade, bid to trade, negotiate to trade; not applicable
Applicable trading mechanism
for foreign bonds
Risk of termination of listing and trading (if any) and
No
countermeasures
Note 1: The Sci-Tech Innovation Corporate Bonds (Digital Economy) Publicly Offered by TCL Technology Group Corporation to
Professional Investors in 2024 (Phase 3) (Type 1) have a term of 5 years and will expire on July 8, 2029. The bonds include the
issuer's redemption option, the option to adjust the coupon rate, and the investor's put option at the end of the third year. If the issuer's
call option or investors' put option is exercised, the maturity date of the exercised bonds will be July 8, 2027.
Note 2: The Sci-Tech Innovation Corporate Bonds (Digital Economy) Publicly Offered by TCL Technology Group Corporation to
Professional Investors in 2024 (Phase 2) have a term of 5 years and will expire on April 11, 2029. The bonds include the issuer's
redemption option, the option to adjust the coupon rate, and the investor's put option at the end of the third year. If the issuer's call
option or investors' put option is exercised, the maturity date of the exercised bonds will be April 11, 2027.
Note 3: The Sci-Tech Innovation Corporate Bonds (Digital Economy) Publicly Offered by TCL Technology Group Corporation to
Professional Investors in 2024 (Phase 1) disbursed the repurchase funds on February 5, 2025 based on the exercise results of
investors' put options, and resold the repurchased bonds from February 6, 2025 to March 5, 2025. After the resale has been
completed, the outstanding balance is RMB 1.5 billion, and the maturity date will be February 1, 2026.
Overdue bonds
□Applicable Not applicable
Applicable □Not applicable
During the Reporting Period, 24TCLK1 triggered its coupon rate adjustment option and its put option.
According to the Prospectus for the Sci-Tech Innovation Corporate Bonds (Digital Economy) Publicly Offered by TCL Technology
Group Corporation to Professional Investors in 2024 (Phase 1), the bondholders of 24TCLK1 were entitled to exercise a put option
during the redemption window (December 19-23, 2024), allowing them to sell all or a portion of their bonds back to the issuer at
RMB 100 per note (excluding accrued interest). Concurrently, the coupon rate was reset downward from 2.64% to 2.10% for the
subsequent one-year period, with settlement of the repurchased bonds scheduled for February 5, 2025. According to data from the
Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, 2,400,000 units of the 24TCLK1 bonds were
repurchased during the redemption window, totaling RMB 240,000,000.00 in principal amount (exclusive of accrued interest).
According to the Announcement on the Resale Results of Bonds for 24TCLK1 Bonds issued by TCL Technology Group Corporation,
the Company conducted the resale of the repurchased bonds from February 6 to March 5, 2025, with the number of resold bonds not
exceeding 2,400,000 units. A total of 2,400,000 units of the bonds were successfully resold in this round. Upon completion of the
resale process, no residual bonds remain pending resale, and the remaining custody volume of 24TCLK1 is 15,000,000 units.
□Applicable Not applicable
regarding debt repayment during the Reporting Period, and their impact on the equity of bond investors
□Applicable Not applicable
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
III. Debt Financing Instruments of Non-Financial Enterprises
Applicable □Not applicable
Unit: RMB'0,000
Way of
principal
Date of Value Outstanding Coupon Place of
Bond name Abbr. Bond code Maturity repayment
issuance date balance rate trading
and interest
payment
Interest
Bonds of TCL Technology MTN002 May 12, May 14, May 14, and Inter-bank
Group Corporation (Phase (Sci-Tech 2025 2025 2030 principal market
Bonds) in full upon
maturity
Interest
payable
annually
TCL Technology Group MTN001B
January 8, January January and Inter-bank
Corporation (Phase 1) (Sci- (Sci- 102580146.IB 100,000.00 2.60%
Tech Innovation Notes) Tech Innov
repayable
(Type 2) ation Notes
in full upon
)
maturity
Interest
payable
annually
TCL Technology Group MTN001A
January 8, January January and Inter-bank
Corporation (Phase 1) (Sci- (Sci- 102580145.IB 100,000.00 2.00%
Tech Innovation Notes) Tech Innov
repayable
(Type 1) ation Notes
in full upon
)
maturity
Interest
payable
Group
MTN001
TCL Technology Group February February February and Inter-bank
(Sci- 102380151.IB 150,000.00 4.10%
Corporation (Phase 1) (Sci- 3, 2023 7, 2023 7, 2026 principal market
Tech Innov
Tech Innovation Notes) repayable
ation Notes
in full upon
)
maturity
Group payable
MTN003 annually
TCL Technology Group July 4, July 6, July 6, Inter-bank
(Sci- 102281474.IB 200,000.00 3.45% and
Corporation (Phase 3) (Sci- 2022 2022 2025 market
Tech Innov principal
Tech Innovation Notes)
ation Notes repayable
) in full upon
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
maturity
Mid-term notes are issued to institutional investors in the national interbank bond market
Investor eligibility (if any)
(excluding those prohibited from purchasing by national laws and regulations)
Applicable trading mechanism Transaction inquiry, request for quotation, and click to trade
Risk of termination of listing and trading (if any) and
No
countermeasures
Overdue bonds
□Applicable Not applicable
□Applicable Not applicable
□Applicable Not applicable
regarding debt repayment during the Reporting Period, and their impact on the equity of bond investors
□Applicable Not applicable
IV. Convertible Corporate Bonds
□Applicable Not applicable
During the reporting period, the Company did not have convertible corporate bonds.
V. Consolidated loss of the Reporting Period Exceeding 10% of Net Assets of the last year-end
□Applicable Not applicable
VI. Key Accounting Data and Financial Indicators of the Company for the Past Two Years as
at the End of the Reporting Period
Item End of the Reporting Period December 31, 2024 Change
Current ratio 0.93 0.86 8.14%
Debt/asset ratio 67.70% 64.92% 2.78%
Quick ratio 0.66 0.61 8.20%
H1 2025 H1 2024 Change
Net profits attributable to the
company's shareholders after
non-recurring gains and
losses (RMB'0,000)
Debt-to-EBITDA ratio 7.04% 6.97% 0.07%
Interest coverage ratio 1.14 0.73 56.16%
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Cash coverage ratio 11.48 5.79 98.27%
EBITDA coverage ratio 7.25 6.43 12.75%
Debt repayment ratio 100% 100% 0.00
Interest payment ratio 100% 100% 0.00
Note: The significant YoY increase in the net profits attributable to the Company’s shareholders after non-recurring gains and losses,
interest coverage ratio and cash coverage ratio was primarily attributable to the improved operational performance of the display
business compared to the prior-year period.
Part VIII Unaudited Financial Report
(For the period from January 1, 2025 to June 30, 2025)
I. Auditor’s Report
Whether the 2025 interim report has been audited or not?
□ Yes √ No
The Company’s 2025 interim financial report has not yet been audited.
II. Financial Statements
The unit of the notes to the financial report is: RMB’000
No. Table of Contents Page
Consolidated Statement of Changes in
Shareholders’ Equity
Statement of Changes in Shareholder Equity
of the Parent Company
TCL Technology Group Corporation
Consolidated Balance Sheet
___________(RMB’000)_____________
Note V June 30, 2025 December 31, 2024
Current assets
Monetary assets 1 28,544,343 23,007,773
Held-for-trading financial assets 2 24,090,904 16,560,971
Derivative financial assets 3 168,726 172,489
Notes receivable 4 174,115 189,853
Accounts receivable 5 19,741,951 22,242,153
Receivables financing 6 3,959,626 831,407
Prepayments 7 2,024,654 2,090,492
Other receivables 8 3,926,955 4,723,140
Inventories 9 20,535,402 17,594,133
Contract assets 10 397,673 395,117
Non-current assets due within one
year
Other current assets 12 8,768,522 6,716,209
Total current assets 114,098,805 95,373,443
Non-current assets
Debt investments 13 176,057 147,272
Long-term receivables 14 416,754 443,741
Long-term equity investments 15 24,120,705 24,595,634
Investments in other equity
instruments
Other non-current financial assets 17 2,573,971 2,225,200
Investment property 18 602,893 612,734
Fixed assets 19 172,569,695 170,512,009
Construction in progress 20 17,808,444 23,580,503
Right-of-use assets 21 6,593,796 6,697,688
Intangible assets 22 18,963,082 18,117,467
Development expenditures 23 1,769,474 1,831,444
Goodwill 24 11,973,732 11,159,705
Long-term deferred expenses 25 2,515,800 2,163,457
Deferred income tax assets 26 2,787,120 2,486,427
Other non-current assets 27 23,084,818 17,917,341
Total non-current assets 286,370,658 282,878,473
Total assets 400,469,463 378,251,916
Person-in-charge
Legal Person-in-charge of the financial Jing
representative: Li Dongsheng of financial affairs: Li Jian department: Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Consolidated Balance Sheet (Continued)
___________(RMB’000)_____________
Liabilities and shareholders' equity Note V June 30, 2025 December 31, 2024
Current liabilities
Short-term borrowings 28 9,228,272 8,193,283
Borrowings from the Central Bank 29 1,002,386 600,926
Customer deposits and deposits from
other banks and financial institutions
Held-for-trading financial liabilities 31 242,097 232,406
Derivative financial liabilities 32 85,376 248,845
Notes payable 33 6,735,401 7,107,842
Accounts payable 34 34,590,168 29,347,615
Advances from customers 35 737 2,689
Contract liabilities 36 2,183,855 1,969,271
Employee compensation payable 37 3,773,305 4,188,237
Taxes and levies payable 38 1,433,018 1,206,098
Other payables 39 19,249,289 20,072,069
Non-current liabilities due within
one year
Other current liabilities 41 1,517,077 1,484,915
Total current liabilities 122,803,983 111,056,333
Non-current liabilities
Long-term borrowings 42 128,471,716 116,815,131
Bonds payable 43 6,482,694 6,488,620
Lease liabilities 44 6,300,595 6,334,786
Long-term payables 45 1,636,141 1,994,812
Long-term employee compensation
payable 37
Deferred income 46 3,067,628 1,014,891
Deferred income tax liabilities 26 2,096,870 1,544,449
Estimated liabilities 47 213,233 249,218
Other non-current liabilities 48 32,333 27,508
Total non-current liabilities 148,323,323 134,491,839
Total liabilities 271,127,306 245,548,172
Share capital 49 18,779,081 18,779,081
Capital reserves 50 9,905,741 10,553,081
Less: Treasury share 51 703,652 919,322
Other comprehensive income 52 (823,811) (740,459)
Surplus reserves 53 3,974,386 3,974,386
Specific reserves 54 5,120 7,189
General risk reserve 55 8,934 8,934
Retained earnings 56 22,449,307 21,504,719
Total equity attributable to shareholders
of the parent company
Non-controlling interests 75,747,051 79,536,135
Total shareholders’ equity 129,342,157 132,703,744
Total liabilities and shareholders' equity 400,469,463 378,251,916
Person-in-charge
Legal Person-in-charge of the financial
representative: Li Dongsheng of financial affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Consolidated Income Statement
___________(RMB’000)_____________
Note V January - June 2025 January - June 2024
I. Total revenue 85,661,626 80,303,409
Including: Operating revenue 57 85,560,004 80,223,737
Interest income 58 101,622 79,672
Less: Operating cost 57 74,082,838 70,642,558
Interest expenditures 58 7,789 14,885
Taxes and levies 59 598,144 500,128
Sales expenses 60 1,163,965 877,397
Administrative expenses 61 2,200,559 2,003,836
R&D expenses 62 4,741,879 4,401,567
Financial expenses 63 2,141,282 2,091,275
Including: Interest expenses 2,555,367 2,472,976
Interest income 353,536 381,577
Add: Other income 64 1,238,502 1,135,393
Return on investment 65 831,296 421,758
Including: Return on investment in
joint ventures and associates
Exchange gain 58 207 (116)
Gain on changes in fair value 66 469,888 132,946
Credit impairment loss 67 (25,391) (7,269)
Asset impairment loss 68 (2,798,944) (2,059,648)
Asset disposal income 69 (3,019) 39,940
II. Operating profit 437,709 (565,233)
Add: Non-operating income 70 29,825 227,436
Less: Non-operating expenses 71 119,957 78,140
III. Gross profit 347,577 (415,937)
Less: Income tax expense 72 315,894 52,212
IV. Net profits 31,683 (468,149)
(I) Classification by business continuity
(II) Classification by ownership
the Company
interests
(1,851,817) (1,463,362)
V. Other comprehensive income, net of tax 52 (133,902) 174,996
(I) Other comprehensive income that cannot
be subsequently reclassified into profit or loss
(3,342) 122,012
(II) Other comprehensive income that may
subsequently be reclassified into profit or loss (130,560) 52,984
upon satisfaction of prescribed conditions
VI. Total comprehensive income (102,219) (293,153)
Total comprehensive income attributable to
the shareholders of the parent company
Total comprehensive income attributable to
non-controlling interests
(1,902,367) (1,466,563)
VII. Earnings per share: 73
(I) Basic earnings per share (RMB yuan) 0.1014 0.0535
(II) Diluted earnings per share (RMB yuan) 0.1003 0.0530
Person-in-charge
Legal Person-in-charge of of the accounting
representative: Li Dongsheng financial affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Consolidated Cash Flow Statement
___________(RMB’000)_____________
Note V January - June 2025 January - June 2024
I. Net cash generated from operating activities:
Proceeds from the sale of commodities and rendering of
services
Net increase/(decrease) in deposits from customers,
banks, and other financial institutions
Net increase/(decrease) in borrowings from the Central
Bank
Cash received from interest, handling charge and
commission
Tax and levy rebates 2,647,636 2,678,607
Cash generated from other operating activities 74 8,523,407 3,396,202
Sub-total of cash generated from operating activities 111,436,991 85,276,369
Payments for commodities and services (64,763,780) (58,121,474)
Net (increase)/decrease in loans and advances to
(273,794) 143,975
customers
Net (increase)/decrease in deposits in the central bank
and in interbank loans granted
Cash paid to and for employees (7,713,812) (6,676,204)
Taxes and levies paid (2,607,678) (2,603,937)
Cash used in other operating activities 75 (8,827,613) (5,334,029)
Sub-total of cash used in operating activities (84,163,008) (72,643,647)
Net cash generated from operating activities 80 27,273,983 12,632,722
II. Cash flow generated from investing activities:
Proceeds from disinvestments 47,498,688 35,100,021
Proceeds from return on investments 1,282,593 1,844,013
Net proceeds from disposal of fixed assets, intangible
assets, and other long-term assets
Cash generated from other investing activities 76 182,916 352,014
Sub-total of cash generated from investment activities 48,969,478 37,612,554
Payments for the acquisition and construction of fixed
(8,313,973) (12,401,270)
assets, intangible assets and other long-term assets
Payments for investments (56,395,015) (42,087,664)
Net payments for acquiring subsidiaries and other
business units
Cash used in other investing activities 77 (464,253) (563,835)
Subtotal of cash used in investing activities (71,277,824) (55,057,053)
Net cash used in investing activities (22,308,346) (17,444,499)
Person-in-charge
Legal Person-in-charge of the accounting
representative: Li Dongsheng of financial affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Consolidated Cash Flow Statement (Continued)
___________(RMB’000)_____________
Note V January - June 2025 January - June 2024
III. Cash flow generated from financing activities:
Capital contributions received 71,254 2,000
Including: Capital contributions by non-controlling
interests to subsidiaries
Borrowings raised 48,905,168 38,491,832
Cash received from bond issue 3,240,000 3,000,000
Cash generated from other financing activities 78 544,843 422,120
Sub-total of cash generated from financing activities 52,761,265 41,915,952
Cash paid for debt repayment (40,458,985) (32,904,575)
Cash paid for distribution of dividends and profits or
(2,718,734) (4,383,419)
the repayment of interests
Including: Dividend and Profit paid by subsidiaries
(11,617) (71,763)
to minority shareholders
Cash used in other financing activities 79 (9,101,549) (1,930,490)
Subtotal of cash used in financing activities (52,279,268) (39,218,484)
Net cash generated from financing activities 481,997 2,697,468
IV. Effect of exchange rate changes on cash and cash
equivalents
V. Net increase in cash and cash equivalents 5,695,406 (2,073,267)
Add: Beginning balance of cash and cash equivalents 20,861,255 19,996,815
VI. Ending balance of cash and cash equivalents 80 26,556,661 17,923,548
Person-in-charge
Legal Person-in-charge of the financial
representative: Li Dongsheng of financial affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Consolidated Statement of Changes in Shareholders’ Equity
___________(RMB’000)_____________
January - June 2025
Equity attributable to shareholders of the parent company
Other General Non- Total
Other equity Treasury Specific Surplus Retained
Share capital Capital reserves comprehensive risk controlling shareholders’
instruments share reserves reserves earnings
income reserve interests equity
I. Balance at the end of the prior year 18,779,081 - 10,553,081 (919,322) 7,189 (740,459) 3,974,386 8,934 21,504,719 79,536,135 132,703,744
Add: Change in accounting policies - - - - - - - - - - -
II. Balance at the beginning of the current
period
III. Movement of the current period - - (647,340) 215,670 (2,069) (83,352) - - 944,588 (3,789,084) (3,361,587)
(I) Total comprehensive income - - - - - (83,310) - - 1,883,500 (1,902,367) (102,177)
(II) Capital contributed and reduced by - - - - -
- - (628,811) 215,670 (1,871,965) (2,285,106)
shareholders
Capital contributed by shareholders - - (621,898) - - - - - - 71,254 (550,644)
Share-based payments included in - - - - - 50,426
- - (6,913) 215,670 259,183
owners' equity
Others - - - - - - - - - (1,993,645) (1,993,645)
(III) Profit distribution - - - - - - - - (938,954) (14,752) (953,706)
Appropriation to shareholders - - - - - - - - (938,954) (14,752) (953,706)
(IV) Internal transfer of owner's equity - - - - - (42) - - 42 - -
Other comprehensive income transferred - - - - - - -
- - (42) 42
to retained earnings
(V) Specific reserves - - - - (2,069) - - - - - (2,069)
Accrued in the period - - - - 3,892 - - - - - 3,892
Specific reserves used in the current - - - - - - -
- - (5,961) (5,961)
period
(VI) Others - - (18,529) - - - - - - - (18,529)
IV. Balance as at the end of the current
period
Legal Person-in-charge of Person-in-charge of the
representative: Li Dongsheng financial affairs: Li Jian financial department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Consolidated Statement of Changes in Shareholders’ Equity (Continued)
___________(RMB’000)_____________
January - June 2024
Equity attributable to shareholders of the parent company
Other General Non- Total
Share Other equity Capital Treasury Specific Surplus Retained
comprehensive risk controlling shareholders’
capital instruments reserves share reserves reserves earnings
income reserve interests equity
I. Balance at the end of the prior year 18,779,081 - 10,752,055 (1,094,943) 11,343 (945,798) 3,874,006 8,934 21,537,188 92,344,107 145,265,973
Add: Change in accounting policies - - - - - - - - - - -
II. Balance at the beginning of the current
period
III. Movement of the current period - - (402,691) 175,621 3,660 178,197 - - (507,113) (6,477,457) (7,029,783)
(I) Total comprehensive income - - - - - 178,197 - - 995,213 (1,466,563) (293,153)
(II) Capital contributed and reduced by
- - (392,181) 175,621 - - - - - (4,208,043) (4,424,603)
shareholders
Capital contributed by shareholders - - - - - - - - - (3,878,546) (3,878,546)
Share-based payments included in
- - 96,276 696,104 - - - - - 109,652 902,032
owners' equity
Others - - (488,457) (520,483) - - - - (439,149) (1,448,089)
(III) Profit distribution - - - - - - - - (1,502,326) (802,851) (2,305,177)
Appropriation to shareholders - - - - - - - - (1,502,326) (802,851) (2,305,177)
(IV) Internal transfer of owner's equity - - - - - - - - - - -
(V) Specific reserves - - - - 3,660 - - - - - 3,660
Accrued in the period - - - - 17,674 - - - - - 17,674
Specific reserves used in the current
- - - - (14,014) - - - - - (14,014)
period
(VI) Others - - (10,510) - - - - - - - (10,510)
IV. Balance as at the end of the current
period
Legal Person-in-charge of Person-in-charge of the
representative: Li Dongsheng financial affairs: Li Jian financial department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Balance Sheet of the Company
___________(RMB’000)_____________
Assets Note XVII June 30, 2025 December 31, 2024
Current assets
Monetary assets 4,104,523 1,551,692
Held-for-trading financial
assets
Accounts receivable 1 48,746 185,239
Prepayments 12,216 17,740
Other receivables 2 10,492,989 9,910,856
Other current assets 22,440 22,518
Total current assets 31,771,374 23,391,745
Non-current assets
Long-term equity investments 3 83,606,889 81,062,401
Other non-current financial
assets
Investment property 71,840 73,683
Fixed assets 35,171 35,361
Construction in progress 38,584 23,410
Right-of-use assets 416,866 423,543
Intangible assets 78,332 84,043
Long-term deferred expenses 22,804 26,603
Deferred income tax assets 7 7
Other non-current assets 8,764,309 2,600,666
Total non-current assets 93,621,626 85,053,260
Total assets 125,393,000 108,445,005
Person-in-
Person-in-charge charge of the
Legal of financial financial
representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Balance Sheet of the Company (Continued)
___________(RMB’000)_____________
Liabilities and shareholders' equity Note XVII June 30, 2025 December 31, 2024
Current liabilities
Short-term borrowings 300,000 780,798
Derivative financial liabilities - 1,764
Accounts payable 15,954 24,762
Contract liabilities 4,284 -
Employee compensation payable 197,083 178,592
Taxes and levies payable 13,610 10,056
Other payables 35,042,259 19,252,413
Non-current liabilities due within one 11,237,050 10,912,982
year
Other current liabilities 1,872 9,071
Total current liabilities 46,812,112 31,170,438
Non-current liabilities
Long-term borrowings 16,689,499 15,289,799
Bonds payable 6,482,694 6,488,620
Lease liabilities 14,506 16,485
Long-term payables 5,268 -
Long-term employee compensation 18,880 19,191
payable income
Deferred 58,942 55,985
Total non-current liabilities 23,269,789 21,870,080
Total liabilities 70,081,901 53,040,518
Share capital 18,779,081 18,779,081
Capital reserves 16,293,574 16,332,255
Less: Treasury share 703,652 919,322
Other comprehensive income 119,555 167,402
Surplus reserves 3,772,322 3,772,322
Retained earnings 17,050,219 17,272,749
Total shareholders’ equity 55,311,099 55,404,487
Total liabilities and shareholders' equity 125,393,000 108,445,005
Person-in-
Person-in-charge charge of the
Legal of financial financial
representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Income Statement of the Company
___________(RMB’000)_____________
Note XVII January - June 2025 January - June 2024
I. Operating revenue 5 186,466 699,303
Less: Operating cost 5 92,112 449,606
Taxes and levies 8,101 4,191
Sales expenses 13,786 18,060
Administrative expenses 188,505 164,415
R&D expenses 47,687 51,723
Financial expenses 576,905 500,159
Including: Interest expenses 768,238 777,950
Interest income 171,300 194,975
Add: Other income 1,070 1,179
Return on investment 6 1,274,402 895,659
Including: Return on investment in joint
ventures and associates
Gain on changes in fair value 195,528 211,802
Credit impairment loss (5,378) (3,811)
Asset disposal income 22 11
II. Operating profit 725,014 615,989
Add: Non-operating income 21 18
Less: Non-operating expenses 8,611 9
III. Gross profit 716,424 615,998
IV. Net profits 716,424 615,998
V. Other comprehensive income (47,847) 143,295
VI. Total comprehensive income 668,577 759,293
Person-in-
Person-in-charge charge of
Legal of financial the financial
representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Cash Flow Statement of the Company
___________(RMB’000)_____________
Note XVII January - June 2025 January - June 2024
I. Net cash generated from operating activities:
Proceeds from the sale of commodities and
rendering of services
Tax and levy rebates - 1,427
Cash generated from other operating activities 13,748,998 5,677,470
Sub-total of cash generated from operating
activities
Payments for commodities and services (32,950) (505,721)
Cash paid to and for employees (89,531) (84,865)
Taxes and levies paid (17,353) (61,246)
Cash used in other operating activities (1,287,859) (322,436)
Sub-total of cash used in operating activities (1,427,693) (974,268)
Net cash generated from operating activities 12,631,427 5,509,763
II. Cash flow generated from investing activities:
Proceeds from disinvestments 24,786,151 17,413,365
Proceeds from return on investments 875,376 1,327,458
Net proceeds from disposal of fixed assets,
- -
intangible assets, and other long-term assets
Cash generated from other investing activities 2,894,923 -
Sub-total of cash generated from investment
activities
Payments for the acquisition and construction of
fixed assets, intangible assets and other long-term (21,658) (1,146)
assets
Payments for investments (38,103,002) (22,881,623)
Cash used in other investing activities (103,085) -
Subtotal of cash used in investing activities (38,227,745) (22,882,769)
Net cash used in investing activities (9,671,295) (4,141,946)
Person-in-charge Person-in-charge
Legal of financial of the financial
representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Cash Flow Statement of the Company (Continued)
___________(RMB’000)_____________
Note XVII January - June 2025 January - June 2024
III. Cash flow generated from financing
activities:
Borrowings raised 10,806,010 8,630,000
Cash received from bond issue 3,240,000 3,000,000
Cash generated from other financing
activities
Sub-total of cash generated from
financing activities
Cash paid for debt repayment (12,707,110) (10,397,600)
Cash paid for distribution of dividends
(589,567) (2,178,628)
and profits or repayment of interests
Cash used in other financing activities (1,252,578) (812,165)
Subtotal of cash used in financing
(14,549,255) (13,388,393)
activities
Net cash generated from financing
(416,132) (1,332,768)
activities
IV. Effect of exchange rate changes on cash
(582) 293
and cash equivalents
V. Net increase in cash and cash equivalents 2,543,418 35,342
Add: Beginning balance of cash and cash
equivalents
VI. Ending balance of cash and cash
equivalents
Person-in-
Person-in-charge charge of the
Legal of financial financial
representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Statement of Changes in Shareholder Equity of the Company
___________(RMB’000)_____________
January - June 2025
Other Total
Other equity Capital Treasury comprehensive Surplus Retained shareholders’
Share capital instruments reserves share income reserves earnings equity
I. Balance at the end of the prior year 18,779,081 - 16,332,255 (919,322) 167,402 3,772,322 17,272,749 55,404,487
Add: Change in accounting policies - - - - - - - -
II. Balance at the beginning of the current
period
III. Movement of the current
- - (38,681) 215,670 (47,847) - (222,530) (93,388)
period
(I) Total comprehensive income - - - - (47,847) - 716,424 668,577
(II) Capital contributed and reduced by
- - (40,024) 215,670 - - - 175,646
shareholders
Share-based payments included in
- - (40,024) 215,670 - - - 175,646
owners' equity
(III) Profit distribution - - - - - - (938,954) (938,954)
Appropriation to shareholders - - - - - - (938,954) (938,954)
(IV) Internal transfer of owner's equity - - - - - - - -
(V) Others - - 1,343 - - - - 1,343
IV. Balance as at the end of the current
period
Person-in-charge of
Person-in-charge of the financial
Legal representative: Li Dongsheng financial affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Statement of Changes in Shareholder Equity of the Company (Continued)
___________(RMB’000)_____________
January - June 2024
Other Total
Other equity Capital Treasury comprehensive Surplus Retained shareholders’
Share capital instruments reserves share income reserves earnings equity
I. Balance at the end of the prior year 18,779,081 - 16,127,030 (1,094,943) (142,055) 3,671,942 17,871,649 55,212,704
Add: Change in accounting policies - - - - - - - -
II. Balance at the beginning of the current
period
III. Movement of the current
- - 63,386 175,621 143,294 - (886,328) (504,027)
period
(I) Total comprehensive income - - - - 143,294 - 615,998 759,292
(II) Capital contributed and reduced by
- - 63,406 175,621 - - - 239,027
shareholders
Share-based payments included in
- - 63,406 696,104 - - - 759,510
owners' equity
Others - - - (520,483) - - - (520,483)
(III) Profit distribution - - - - - - (1,502,326) (1,502,326)
Appropriation to shareholders - - - - - - (1,502,326) (1,502,326)
(IV) Internal transfer of owner's equity - - - - - - - -
(V) Others - - (20) - - - - (20)
IV. Balance as at the end of the current
period
Person-in-charge of
Person-in-charge of the financial
Legal representative: Li Dongsheng financial affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
I Corporate Information
TCL Technology Group Corporation (hereinafter referred to as "the Company") is a limited
liability company established in Huizhou on July 17, 1997. It was changed to a limited liability
company as a whole in 2002 and was listed on the Shenzhen Stock Exchange in January 2004.
Through years of new share placements, private placements, capital conversion, share option
exercises, and share repurchases and cancellations, the registered capital and share capital of the
Company were RMB 18,779,080,767 as of June 30, 2025.
The main business structure of the Company and its subsidiaries consists of display, new
energy photovoltaic and other silicon materials, industrial finance, and other businesses. The
relevant information of the Company's subsidiaries is detailed in Note VIII.
The registered address of the Company is: TCL TECH. Building, 17 Huifeng Third Road,
Zhongkai Hi-Tech Development District, Huizhou City, Guangdong Province.
Approval and issue: These financial statements were authorized for issue by the Company’s
Board of Directors on August 28, 2025.
II Basis for the Preparation of Financial Statements
The preparation of financial statements of the Company is based on the actual transactions and
events in accordance with the Accounting Standards for Business Enterprises - Basic Standards
published by the Ministry of Finance and specific Accounting Standards for Business
Enterprises, application guidelines for Accounting Standards for Business Enterprises,
Accounting Standards for Business Enterprises interpretations and other relevant regulations
(hereinafter collectively referred to as "Accounting Standards for Business Enterprises") for
confirmation and measurement, combining the provisions of Regulations on Information
Disclosure and Compilation of Companies Offering Securities to the Public No. 15 - General
Provisions on Financial Reports (revised in 2023) published by CSRC.
The Company has evaluated the ability to continue as a going concern for 12 months from the
end of the Reporting Period and has not identified any issues or circumstances that result in
significant doubts about its ability to continue as a going concern. Therefore, the financial
statements have been prepared on a going concern basis.
III Significant accounting policies and accounting estimates
The following significant accounting policies and accounting estimates of the Company are
formulated in accordance with the Accounting Standards for Business Enterprises. The business
not mentioned shall be implemented in accordance with the relevant accounting policies in the
Accounting Standards for Business Enterprises.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
The financial statements are in compliance with the requirements of the Accounting Standards
for Business Enterprises, and truly and completely reflect the financial position, operating
results, cash flow, and other relevant information of the Company during the Reporting Period.
The Company adopts the calendar year as an accounting period, and its fiscal year is from January
An operations cycle refers to a period from the purchase of assets by an enterprise for processing
to the realization of cash or cash equivalents. The Company takes a 12-months’ period as an
operations cycle and takes the operating cycle as the criteria for liquidity classification of assets
and liabilities.
The Company uses RMB as its functional currency. Its overseas subsidiaries use the currencies
of the main economic environment in which they operate as their respective functional
currencies, and their financial statements are converted into RMB and presented in RMB
thousands unless otherwise specified.
Item Importance criteria
The recovery, reversal, and actual write-off The amount of an individual item is greater than
of bad debt provisions for important RMB 50 million.
receivables with bad debt provisions
accrued on an individual basis
Important construction in progress The ending carrying amount of an individual item
exceeds RMB 10 billion.
Important non-wholly-owned subsidiaries The total assets of non-wholly-owned subsidiaries
exceeds 10% of that of the Group, or the total
revenue of non-wholly-owned subsidiaries
exceeds 10% of that of the Group.
Important joint ventures or associates The carrying amount of long-term equity
investments in a single investee exceeds 5% of the
total assets of the Group.
Important prepayments, contract liabilities, The amount of an individual item exceeds 0.5% of
accounts payable, and other payables are the total assets of the Group.
aged for more than 1 year
Important capitalized research and The cumulative expenditure of an individual item
development items exceeds 0.5% of the total assets of the Group.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
common control
(1) Multiple transactions that are part of a business combination achieved in stages are accounted for as a
package transaction, if the terms, conditions, and economic effects of these individual transactions
meet one or more of the following criteria:
(a) These transactions are made simultaneously or with consideration of influence on each other;
These transactions can only achieve a complete business outcome when they are accounted for
(b)
collectively;
(c) The occurrence of a transaction depends on the occurrence of at least one of the other transactions;
A transaction is uneconomical individually, but is economical when considered collectively with
(d)
other transactions.
(2) Business combinations involving enterprises under common control
A combination of enterprises that are ultimately controlled by the same party or parties before and
after the combination on a non-temporary basis constitutes a business combination under common
control.
Assets and liabilities acquired by the Company in a business combination are measured at their
carrying amounts in the consolidated financial statements of the ultimate controlling party on the
combination date. (including the goodwill resulting from the ultimate controlling party's acquisition
of the acquiree). The difference between the carrying amount of net assets acquired in the
combination and that of the consideration paid for the combination (or the total par value of shares
issued) is used to adjust the share capital premium in the capital reserve, and when the share capital
premium in the capital reserve is insufficient for offset, it is used to adjust the retained earnings. If
there is a contingent consideration and it is necessary to confirm estimated liabilities or assets, the
difference between the amounts of the estimated liabilities or assets and the settlement amount of
subsequent contingent consideration is used to adjust the capital reserve (capital premium or share
capital premium), and when the capital reserve is insufficient, it is used to adjust the retained
earnings.
For a business combination that is ultimately realized through multiple transactions, if it is a package
transaction, each transaction is treated as a transaction that acquires control; if it is not a package
transaction, on the date of acquisition of control, the difference between the initial cost of long-term
equity investments and the carrying amount of long-term equity investments before the combination
plus the carrying amount of the newly paid considerations on the date of combination is used to
adjust the capital reserve; and when the capital reserve is insufficient for offset, it is used to adjust the
retained earnings. For equity investments held prior to the date of combination, no accounting
treatment is carried out for other comprehensive gains recognized by equity accounting or financial
instrument confirmation and measurement standards, and up to the disposal of the investment, the
accounting treatment shall be based on the same basis as the direct disposal of the assets or liabilities
of the invested entity; other changes in the owner’s equity other than net profits or loss, other
comprehensive income, or profit distribution of net assets of the invested company recognized as
equity are not subject to accounting, and will be transferred to the current profit and loss until
disposal of the investment.
(3) Business combination not under common control
A combination of enterprises that are not ultimately controlled by the same party or parties before and
after the combination constitutes a business combination not under common control.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
Accounting treatments for business combinations involving enterprises under and not under
common control (continued)
(3) Business combination not under common control (continued)
Assets transferred and liabilities incurred or assumed by the Company as consideration for the
business combination are measured at fair value on the date of purchase, and the difference
between the fair value and their carrying amount is recognized in current profits and losses.
The excess of the cost of the business combination over the Company's share of the fair value of
the acquiree's identifiable net assets is recognized as goodwill. If the cost of the business
combination is less than the Company's share of the fair value of the acquiree's identifiable net
assets, the Company first reassesses the measurement of the fair values of the acquiree's
identifiable assets, liabilities and contingent liabilities, as well as the measurement of the cost of
the combination. If after this reassessment, the cost of the combination is still less than the
Company's share of the fair value of the acquiree's identifiable net assets, the difference is
recognized in the current period's profit or loss.
In the case where a business combination not under common control is realized through multiple
exchanges and transactions, if it is a package transaction, each transaction will be accounted for
as a transaction for acquiring control; in the case it is not a package transaction, if the equity
investment held before the date of combination is accounted for using equity method, the sum of
the carrying amount of equity investments of the acquired party held before the date of
acquisition, plus the new investment cost on the date of acquisition will be recognized as the
initial cost of the investment; the remaining comprehensive income recognized in equity
investments using equity method before the date of acquisition will be recorded, when the
investment is disposed of on the same basis as those the investee adopted directly to dispose of
the relevant assets or liabilities. If the equity investment held before the date of combination is
accounted for by financial instrument recognition and measurement criteria, the sum of the fair
value of the equity investment on the date of combination plus the new investment cost is taken
as the initial investment cost on the date of combination. The difference between the fair value
and the carrying amount of the original equity, and the accumulated fair value changes originally
included in other comprehensive income should be transferred to return on investment in the
current period which matches the combination date.
(4) Expenses incurred from combination
The intermediary fees paid for audits, legal services, assessments, and consultations and other
directly related expenses incurred in the business combination are recognized in profit or loss
during the period in which they are incurred. Transaction costs for the issuance of equity
securities for the business combination that may be directly attributed to equity transactions can
be deducted from equity.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(1) Criteria for judging control
Control means having the power of control over the investee, enjoying variable returns by
participating in the relevant activities of the investee, and having the ability to use the power
over the investee to influence the amount of returns.
The Company judges whether it controls the investee based on comprehensive consideration of
all relevant facts and circumstances. Once any change in relevant facts and circumstances causes
the relevant elements involved in the definition of control to be changed, the Company will
conduct a reassessment. The relevant facts and circumstances mainly include:
① The purpose for which the investee is established;
② The relevant activities of the investee and how to make decisions on such activities;
③ Whether the rights of the investor give it the current ability to direct the relevant activities of
the investee;
④ Whether the investor is exposed to, or has rights to, variable returns from its involvement
with the investee;
⑤ Whether the investor has the ability to exercise its power over the investee to affect the
amount of return;
⑥ The relationship between the investor and other parties.
(2) Consolidation scope
The scope of consolidation of the Company’s consolidated financial statements is determined on
the basis of control, and all subsidiaries (including separate entities controlled by the Company)
are included into the consolidated financial statements.
(3) Consolidation procedure
The Company prepares the consolidated financial statements based on the financial statements of
itself and its subsidiaries and other relevant information. In preparing the consolidated financial
statements, the Company treats the whole group as a single accounting entity to reflect the
financial position, operating results, and cash flow of the group as a whole under unified
accounting policies, in accordance with the recognition, measurement, and presentation
requirements of relevant accounting standards for business enterprises.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
The accounting policies and accounting periods adopted by all subsidiaries included in the
consolidated financial statements are consistent with those of the Company. If the accounting
policies or accounting periods adopted by the subsidiaries are inconsistent with those of the
Company, necessary adjustments will be made in accordance with the Company's accounting
policies and accounting periods when preparing consolidated financial statements.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(3) Consolidation procedure (continued)
In preparing the consolidated financial statements, the effects of intracompany transactions between the
Company and its subsidiaries, and among subsidiaries, are eliminated from the consolidated balance sheet,
consolidated income statement, consolidated cash flow statement, and consolidated statement of changes
in shareholders' equity. Where a transaction is recognized by the Company or its subsidiaries as the
transaction subject, which is different from that under the consolidated financial statement of the group,
the transaction should be adjusted at the group level.
If the current losses shared by the minority shareholders of a subsidiary exceed the share enjoyed by the
minority shareholder in the initial owners' equity of the subsidiary, the balance will still be used to offset
the equity of minority interests.
During the Reporting Period, if a subsidiary or business is added due to the business combination
involving enterprises under common control, the beginning balances of the consolidated balance sheet are
adjusted; the income, expenses and profits of the subsidiary or business as from the beginning of the
period of combination to the end of the Reporting Period are included in the consolidated income
statement; the cash flows of the subsidiary or business as from the beginning of the period of combination
to the end of the Reporting Period are included in the consolidated cash flow statement, and the relevant
items of the comparative statements are adjusted as if the reporting entity after the combination had
existed since the time point when the ultimate controller began to control.
If the Company is able to exercise control over the investee under common control due to additional
investment or for other reasons, it shall be deemed that the parties participating in the combination had
made adjustments based on their current state when the ultimate controller began to control. For an equity
investment in the acquiree held prior to the business combination, any related profit or loss, other
comprehensive income, and other changes in net assets that were recognized during the period from the
later of i) the date the original equity interest was acquired, and ii) the date the combining parties came
under common control, up to the date of the business combination, are reversed against the opening
balance of retained earnings in the comparative financial statements or against the current period's profit or
loss, respectively.
During the Reporting Period, if a subsidiary or business is added due to a business combination involving
enterprises under non-common control, the beginning balance of the consolidated balance sheet is not
adjusted; the income, expenses, and profits of the subsidiary or business from the date of acquisition to the
end of the Reporting Period are included in the consolidated income statement; the cash flow of the
subsidiary or business from the date of acquisition to the end of the Reporting Period is included in the
consolidated cash flow statement.
If the Company is able to exercise control over the investee not under common control due to additional
investment or for other reasons, the Company shall remeasure the equity of the purchased party held
before the purchase date at its fair value as at the purchase date, and the difference between the fair value
and its carrying amount shall be recognized in the return on investment of the current period. If the equity
of the purchased party held before the purchase date involves other comprehensive income accounted for
under the equity method and other changes in owner’s equity other than net profits and loss, other
comprehensive income, and profit distribution, the relevant other comprehensive income and other
changes in owner’s equity shall be converted into the return on investment of the current period which
matches the purchase date, except for other comprehensive income arising from the investee’s
remeasurement of the changes in net liabilities or net assets of defined benefit plans.
During the Reporting Period, if the Company disposes of a subsidiary or business, the income, expenses,
and profits of the subsidiary or business for the period from the beginning of the period to the disposal date
are included in the consolidated income statement; and the cash flow of the subsidiary or business for the
period from the beginning of the reporting period to the disposal date is included in the consolidated cash
flow statement.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(3) Consolidation procedure (continued)
When the Company loses control over the invested party due to disposal of part of the equity investment
or other reasons, the remaining equity investment after disposal will be re-measured based on its fair value
by the Company on the date of loss of control. The difference of the sum of the consideration obtained
from the disposal of the equity and the fair value of the remaining equity, less the sum of the share of net
assets and goodwill of the original subsidiary that should be enjoyed in accordance with the original share-
holding ratio since the date of acquisition or combination, is accounted for the return on investment in the
current period of loss of control. Other comprehensive income or net profits and losses related to the
original subsidiary's equity investment, other comprehensive income, and other changes in owners' equity
other than profit distribution, will be converted into current return on investment when control is lost,
except for other comprehensive gains arising from the re-measurement of net liabilities of the Benefit Plan
made by the invested party or changes in net assets.
When the equity investment in a subsidiary is disposed of step by step through multiple transactions until
the loss of control, when the terms, conditions, and economic influence of the transactions of the equity
investment in the subsidiary conform to one or more of the following, it usually indicates that the multiple
transaction items shall be accounted for as a transaction package:
① These transactions are made simultaneously or with consideration of influence on each other;
② These transactions can only achieve a complete business outcome when they are accounted for
collectively;
③ The occurrence of a transaction depends on the occurrence of at least one of the other transactions;
④ A transaction is uneconomical individually, but is economical when considered collectively with other
transactions.
If transactions through which the equity investment in a subsidiary is disposed of until the loss of control
constitute a transaction package, the Company will account for such transactions as one transaction
through which the subsidiary is disposed of with the loss of control over it; provided that the difference
between the price for each disposal and the share in the net asset of the subsidiary corresponding to the
investment disposed of, before the loss of control, is recognized as other comprehensive income in the
consolidated financial statements and is transferred to the profits and losses of the current period in which
the loss of control occurs.
When transactions through which the equity investment in a subsidiary is disposed of until the loss of
control do not constitute a transaction package, such transactions shall be accounted for i) before the loss
of control, in accordance with the relevant policies for partial disposal of an equity investment in a
subsidiary without losing control; and ii) upon the loss of control, in accordance with the general
accounting method for disposing of a subsidiary.
The difference, between the long-term equity investment obtained by the Company through the purchase
of minority interests and the share in the net asset of the subsidiary calculated continuously from the
purchase date (or combination date) based on the new shareholding percentage shall be used to adjust i)
the share capital premium under the capital reserve in the consolidated balance sheet or ii) the retained
earnings, if the share capital premium under the capital reserve is insufficient to offset.
The difference between the disposal price obtained from the partial disposal of a long-term equity
investment in a subsidiary without losing control and the share, corresponding to the long-term equity
investment disposed of, in the net asset of the subsidiary calculated continuously from the purchase date or
combination date shall be used to adjust i) the share capital premium under the capital reserve in the
consolidated balance sheet or ii), the retained earnings, if the share capital premium under the capital
reserve is insufficient to offset.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(1) Classification of joint arrangements
The Company classifies a joint arrangement as a joint operation or a joint venture according to factors
such as the structure and legal form of the joint arrangement, the terms agreed in the joint
arrangement, other relevant facts and circumstances.
Joint arrangements not reached through independent entities are classified as joint operations; joint
arrangements reached through independent entities are usually classified as joint ventures; however, a
joint arrangement that is indicated by conclusive evidence of meeting any of the following conditions
and meeting the provisions of relevant laws and regulations is classified as a joint operation:
① The legal form of the joint arrangement shows that the parties have rights to the assets, and
obligations for the liabilities, relating to the arrangement.
② The contractual terms of the joint arrangement stipulates that the parties have rights to the assets,
and obligations for the liabilities, relating to the arrangement.
③ Other relevant facts and circumstances show that the parties have rights to the assets, and
obligations for the liabilities, relating to the arrangement. For example, the parties enjoy all the output
substantially related to the joint arrangement, and the repayment of the liabilities relating to the
arrangement continues relying on the support of the parties.
(2) Accounting treatment for joint operation
The Company shall recognize the following items in relation to interest in the joint operation, and
carry out accounting treatment in accordance with the provisions of relevant accounting standards for
business enterprises:
① its assets, including its share of any assets held jointly;
② its liabilities, including its share of any liabilities incurred jointly;
③ its revenue from the sale of its share of the output arising from the joint operations;
④ its share of the revenue from the sale of the output by the joint operations; and
⑤ its expenses, including its share of any expenses incurred jointly.
If investing or selling assets (except those that constitute a business), etc., into or to the joint
operation, the Company shall only recognize the part of the profit and loss arising from the
transaction attributable to other participants in the joint operation, before the assets, etc., are sold to a
third party by the joint operation. The Company will recognize in full the asset impairment loss
arising if the assets invested or sold are impaired in compliance with the Accounting Standards for
Business Enterprises No. 8 - Asset Impairment, etc.
If purchasing assets (except those that constitute a business), etc., from the joint operation, the
Company shall only recognize the part of the profit and loss arising from the transaction attributable
to other participants in the joint operation, before the assets, etc., are sold to a third party by the
Company. The Company will recognize its share of the asset impairment loss arising if the assets
purchased are impaired in compliance with the Accounting Standards for Business Enterprises No. 8
- Asset Impairment, etc.
The Company does not enjoy joint control over the joint operations. If the Company has rights to the
assets, and obligations for the liabilities, relating to the joint operation, it shall still be accounted for
by the above principles; otherwise, it shall be accounted for by the relevant accounting standards for
business enterprises.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
In the preparation of the cash flow statement, the Company recognizes cash holdings and
deposits that can be used for payment at any time as cash.
The Company recognizes cash that is easily converted into a known amount with a short holding
period (generally due within three months from the date of purchase) and strong liquidity, and
investments with a low risk of changes in value (including investments in bonds which due
within three months, while excluding equity investments), as cash equivalents.
(1) Foreign currency transactions
Foreign currency transactions between the Company and its subsidiaries are translated into base
currency at the spot exchange rate on the transaction date.
Foreign currency monetary items are translated at the spot exchange rate on the balance sheet
date, and the exchange differences resulted therefrom, except that the exchange differences
arising from special foreign currency loans related to the acquisition and construction of assets
eligible for capitalization should be treated in accordance with the principle of capitalization of
borrowing costs, are all included in the current profit and loss. Foreign currency non-monetary
items measured at historical cost are still translated at the spot exchange rate on the transaction
date, and the amount of base currency for bookkeeping is not changed.
Foreign currency non-monetary items measured at fair value are translated at the spot exchange
rates on the date when the fair value is determined, and the exchange differences resulted
therefrom are included in current profits and losses as a change in fair value. In the case of
foreign currency non-monetary items that are at fair value through other comprehensive income,
the exchange differences incurred are included in other comprehensive income.
(2) Translation of foreign currency financial statement
When the Company translates the financial statements of overseas operations, the assets and
liabilities in the balance sheet are translated at the spot exchange rate on the balance sheet date.
The owner’s equity items, except for the "Retained earnings" item, are translated at the spot
exchange rate at the time of occurrence of the items. All the incurred items in the income
statement are translated at the current average exchange rate of the period in which transactions
occur. The translation differences of foreign currency financial statements arising from the above
translation are included in other comprehensive income.
When disposing of an overseas operation, the translation differences in the foreign currency
financial statements related to the overseas operation listed in other comprehensive income in the
balance sheet are transferred from the other comprehensive income to the profit and loss. When
the disposal of a portion of the equity investment or otherwise causes a decrease in the
proportion of equity held in the overseas operation without losing control over the overseas
operation, the translation differences in the foreign currency statements related to the part of the
overseas operation disposed of will be attributed to minority interests, rather than to the current
profits and losses. When the overseas operation disposes of a portion of the equity of an
associate or joint venture, the translation difference of the foreign statements related to the
overseas operation should be transferred to the profit or loss for the period in proportion to the
disposal of the overseas operation.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
When the Company becomes a party to a financial instrument, it recognizes a financial asset or
liability.
The effective interest method refers to the method of calculating the amortized cost of financial
assets or liabilities and allocating interest income or interest expenses into each accounting
period.
The effective interest rate refers to the interest rate used to discount the estimated future cash
flow of a gross amount or financial liability during its expected duration to the book balance of
the gross amount or the amortized cost of the financial liability. When determining the effective
interest rate, the expected cash flow is estimated on the basis of considering all contract terms of
financial assets or liabilities (such as prepayment, extension, call options, or other similar
options), but the expected credit loss is not considered.
The amortized cost of a financial asset or financial liability is the accumulated amortization
amount formed by deducting the repaid principal from the initial recognition amount of the
financial asset or financial liability, adding or subtracting the difference between the initial
recognition amount and the maturity amount by using the effective interest method, and then
deducting the accumulated accrued loss reserve (only applicable to financial assets).
(1) Classification and measurement of financial assets
According to the business model of the financial assets under management and the contractual
cash flow characteristics of the financial assets, the Company divides the financial assets into the
following three categories:
(a) Financial assets are measured at amortized cost.
(b) Financial assets are measured at fair value through other comprehensive income.
(c) Financial assets are measured at fair value through profit or loss.
Financial assets are measured at fair value when initially recognized, but if the accounts or notes
receivable arising from the sale of goods or the provision of services do not contain significant
financing components or do not consider financing components for no more than one year, the
initial measurement shall be made at the transaction price.
For financial assets measured at fair value through profit or loss, transaction expenses are
directly recognized in the current profit and loss. For other financial assets, transaction expenses
are included in the initial recognition amount.
Subsequent measurement of financial assets depends on their classification. All related financial
assets affected will be reclassified when and only when the Company changes its business model
of managing financial assets.
(a) Financial assets are classified as those measured at amortized cost
The contract terms of a financial asset stipulate that the cash flow generated on a specific date is
only the payment of the principal and the interest on the amount of outstanding principal, and the
business model for managing the financial asset is to collect the contractual cash flow, then the
Company classifies the financial asset as measured at amortized cost. Financial assets of the
Company that are classified as those measured at amortized cost include monetary assets, notes
receivable, accounts receivable, other receivables, long-term receivables, debt investments, etc.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(1) Classification and measurement of financial assets (continued)
(a) Financial assets classified as those measured at amortized cost (continued)
The Company recognizes interest income from such financial assets with the effective interest
method, and carries out subsequent measurement at amortized cost. Gains or losses arising from
impairment or derecognition or modification are included in current profits and losses. The
Company calculates and determines the interest income based on the book balance of financial
assets multiplied by the effective interest rate, except for the following circumstances:
① For purchased or originated credit-impaired financial assets, the Company calculates and
determines their interest income at the amortized cost of the financial assets and the credit-
adjusted effective interest rate since the initial recognition.
② For financial assets not credit-impaired at the time of being purchased or originated but in the
subsequent period, the Company calculates and determines their interest income at the amortized
cost and the effective interest rate of the financial assets in the subsequent period. If the financial
instrument is no longer credit-impaired due to the improvement of its credit risk in the
subsequent period, the Company calculates and determines the interest income by multiplying
the effective interest rate by the book balance of the gross amount.
Financial assets are classified as those measured at fair value through other comprehensive
(b)
income
The contract terms of a financial asset stipulate that the cash flow generated on a specific date is
only the payment of the principal and the interest on the amount of outstanding principal, and the
business model for managing the financial assets is both to collect contractual cash flow and for
its sale, then the Company classifies the financial assets as measured at fair value through other
comprehensive income.
The Company recognizes interest income from such financial assets with the effective interest
method. Except that the interest income, impairment loss, and exchange difference are
recognized as the current profit and loss, other changes in fair value are included in other
comprehensive income. When the financial asset is derecognized, the accumulated gains or
losses previously included in other comprehensive income are transferred out and included in
current profits and losses.
Notes and accounts receivable measured at fair value through other comprehensive income are
reported as receivables financing, and such other financial assets are reported as other debt
investments. Among them, other debt investments maturing within one year from the balance
sheet date are reported as the current portion of non-current assets, and other debt investments
maturing within one year are reported as other current assets.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(1) Classification and measurement of financial assets (continued)
(c) Financial assets designated as measured at fair value through other comprehensive income
At the time of initial recognition, the Company may irrevocably designate non-trading equity
instrument investments as financial assets measured at fair value through other comprehensive
income on the basis of individual financial assets.
Changes in the fair value of such financial assets are included in other comprehensive income
without allowance for impairment. When the financial asset is derecognized, the accumulated
gains or losses previously included in other comprehensive income are transferred out and
included in the retained earnings. During the investment period when the Company holds the
equity instrument, the dividend income is recognized and included in the current profit and loss.
When the Company's right to receive dividends has been established, the economic benefits
related to dividends are likely to flow into the Company, and the amount of dividends can be
measured reliably. The Company reports such financial assets under the item of investments in
other equity instruments.
An investment in equity instruments is a financial asset measured at fair value through current
profits and losses when it is obtained mainly for recent sale, or is part of the identifiable portfolio
of financial assets centrally managed when initially recognized and objective evidence exists for
a short-term profit model in the near future, or is a derivative (except for derivatives defined as
financial guarantee contracts and designated as effective hedging instruments).
(d) Financial assets classified as those measured at fair value through profit or loss
If failing to be classified as those measured at amortized cost or at fair value through other
comprehensive income, or not designated as measured at fair value through other comprehensive
income, financial assets are all classified as those measured at fair value through profit or loss.
The Company carries out subsequent measurement of such financial assets at fair value, and
includes gains or losses arising from changes in fair value as well as dividends and interest
income associated with such financial assets into current profits and losses.
The Company reports such financial assets as held-for-trading financial assets and other non-
current financial assets according to their liquidity.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(1) Classification and measurement of financial assets (continued)
(e) Financial assets designated as measured at fair value through current profits and losses
At the time of initial recognition, the Company may irrevocably designate financial assets as
measured at fair value through current profits and losses on the basis of individual financial
assets in order to eliminate or significantly reduce accounting mismatches.
If the mixed contract contains one or more embedded derivative instruments and its main
contract is not any financial asset as above, the Company may designate the whole of the mixed
contract as a financial instrument measured at fair value through current profits and losses.
Except under the following circumstances:
① Embedded derivatives do not significantly change the cash flow of mixed contracts.
② When determining initially whether similar mixed contracts need to be split, it is substantially
clear that embedded derivatives contained in them should not be split without analysis. If the
prepayment right embedded in a loan allows the holder to prepay the loan at an amount close to
the amortized cost, the prepayment right does not need to be split.
The Company carries out subsequent measurement of such financial assets at fair value, and
includes gains or losses arising from changes in fair value as well as dividends and interest
income associated with such financial assets into current profits and losses.
The Company reports such financial assets as held-for-trading financial assets and other non-
current financial assets according to their liquidity.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(2) Classification and measurement of financial liabilities
The Company classifies a financial instrument or its components into financial liabilities or
equity instruments upon initial recognition according to the contract terms and the economic
substance reflected by the financial instrument issued, rather than only in legal form, in
combination with the definitions of financial liabilities and equity instruments. Financial
liabilities are classified at initial recognition as measured at fair value through profit or loss, or
other financial liabilities, or derivatives designated as effective hedging instruments.
Financial liabilities are measured at fair value upon initial recognition. For financial liabilities
measured at fair value through current profits and losses, relevant transaction expenses are
directly included in current profits and losses; for other categories of financial liabilities, relevant
transaction expenses are included in the initial recognition amount.
Subsequent measurement of financial liabilities depends on their classification:
(a) Financial liabilities measured at fair value through current profits and losses
Such financial liabilities include held-for-trading financial liabilities (including derivatives
falling under financial liabilities) and financial liabilities designated as measured at fair value
upon initial recognition and through current profits and losses.
A financial liability is a held-for-trading financial liability if it is mainly undertaken for recent
sale or repurchase, or is part of the identifiable portfolio of financial instruments centrally
managed, and there is objective evidence that the enterprise has recently employed a short-term
profit model, or is a derivative instrument, except for derivatives designated as effective hedging
instruments and derivatives conforming to financial guarantee contracts. Held-for-trading
financial liabilities (including derivatives falling under financial liabilities) are subsequently
measured at fair value. All changes in fair values except for hedging accounting are included in
current profits and losses.
The Company irrevocably designates financial liabilities as measured at fair value through
current profits and losses at the time of initial recognition in order to provide more relevant
accounting information, provided:
① Such financial liabilities can eliminate or significantly reduce accounting mismatches.
② The financial liability portfolio, or the portfolio of financial assets and liabilities is managed
and evaluated for performance on the basis of fair value according to the enterprise risk
management or investment strategy stated in the official written documents, and is reported to
key management personnel within the enterprise on this basis.
The Company subsequently measures such financial liabilities at fair value. Apart from changes
in fair value that are brought about by changes in the Company’s own credit risk and included in
other comprehensive income, other changes in fair value are included in current profits and
losses. Unless including such changes in other comprehensive income will cause or expand
accounting mismatch in profit or loss, the Company will include all changes in fair value
(including the amount affected by changes in its own credit risk) in current profits and losses.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(2) Classification and measurement of financial liabilities (continued)
(b) Other financial liabilities
The Company classifies financial liabilities, except for the following items as measured at
amortized cost. Such financial liabilities are recognized by the effective interest method and
subsequently measured at amortized cost. Gains or losses arising from derecognition or amortization
are included in current profits and losses:
① Financial liabilities measured at fair value through current profits and losses.
② Financial liabilities resulting from the transfer of financial assets that do not meet the conditions
for derecognition or continue to be involved in the transferred financial assets.
③ Financial guarantee contracts that do not fall under the first two categories hereof, and loan
commitments that do not fall under category (1) hereof and lend at a below-market interest rate.
Financial guarantee contracts refer to contracts that require the issuer to pay a specific amount to the
contract holder who has suffered losses when a specific debtor fails to pay the debt in accordance
with the original or modified terms of the debt instrument. Financial guarantee contracts that are not
financial liabilities designated as measured at fair value through profit or loss are measured after
initial recognition according to the loss reserve amount and the initial recognition amount, less the
accumulated amortization amount during the guarantee period, whichever is higher.
(3) Derecognition of financial assets and liabilities
Financial assets are derecognized, i.e. written off from their account and balance sheet if any of the
(a)
following conditions is met:
① The contractual right to receive cash flow from the financial asset is terminated; or
② The financial asset has been transferred, which meets the requirements for derecognition of
financial assets.
(b) Conditions for derecognition of financial liabilities
If the current obligation of a financial liability (or part thereof) has been discharged, such financial
liability (or part thereof) is derecognized.
The existing financial liability is derecognized with a new one recognized, and the difference
between the carrying amount and the consideration paid (including transferred non-cash assets or
assumed liabilities) is included in current profits and losses, if an agreement is signed between the
Company and the lender to replace the existing financial liability by assuming a new one, and the
contract terms of these two financial liabilities are substantially different, or the contract terms of
the existing financial liability (or part thereof) are substantially modified.
If the Company repurchases part of a financial liability, the carrying amount of the financial liability
shall be distributed according to the proportion of the fair value of the continuing recognition
portion and the derecognition portion to the overall fair value on the repurchase date. The difference
between the carrying amount allocated to the derecognized portion and the consideration paid
(including transferred non-cash assets or liabilities assumed) shall be included in current profits and
losses.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(4) Recognition basis and measurement method of financial asset transfer
When a financial asset is transferred, the Company evaluates the risks and rewards retained of the
financial asset ownership:
(a) If almost all the risks and rewards of the financial asset ownership are transferred, such financial
asset shall be derecognized, and the rights and obligations generated or retained in the transfer shall
be separately recognized as assets or liabilities.
If risks and rewards of the financial asset ownership are substantially retained, such financial asset
(b)
shall continue to be recognized.
(c) In circumstances where the Company neither transfers nor retains risks and rewards of the financial
asset ownership substantially (i.e. circumstances other than ① and ② of this article), based on
whether it retains control over such financial asset:
① The financial asset shall be derecognized, and the rights and obligations generated or retained in
the transfer shall be separately recognized as assets or liabilities if such control is not retained; or
② The relevant financial asset shall continue to be recognized to the extent that it continues to be
involved in the transferred financial asset, and the relevant liabilities shall be recognized
accordingly if such control is retained. The extent that it continues to be involved in the transferred
financial asset refers to the extent the Company bears the risks or rewards of changes in the value of
the transferred financial asset.
When judging whether the transfer of financial assets meets the above conditions for derecognition
of financial assets, the principle of substance over form shall be adopted. The Company divides the
transfer of financial assets into overall transfer and partial transfer.
If the overall transfer of financial assets meets the conditions for derecognition, the difference
(a)
between the following two amounts shall be included in the current profits and losses:
① The carrying amount of the transferred gross amount on the date of derecognition.
② The sum of the consideration received for the transfer of financial assets and the amount of the
respective derecognized portion of the accumulated changes in fair value originally included in
other comprehensive income directly (the financial assets involved in the transfer are financial
assets at fair value through other comprehensive income).
(b) If the financial asset is partially transferred and the transferred part meets the conditions for
derecognition, the carrying amount of the gross amount before transfer shall be allocated between
the derecognition portion and the continuing recognition portion (in this case, the retained service
asset shall be regarded as the continuing recognition part of the financial asset) according to the
respective relative fair values on the transfer date, and the difference between the following two
amounts shall be included in the current profits and losses:
① The carrying amount of the derecognized portion on the derecognition date.
② The sum of the consideration received for the derecognized portion and the amount of the
corresponding derecognized portion of the accumulated changes in fair value originally included in
other comprehensive income (the financial assets involved in the transfer are financial assets at fair
value through other comprehensive income).
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(4) Recognition basis and measurement method of financial asset transfer (continued)
If the transfer of a financial asset does not meet the conditions for derecognition, the financial
asset shall continue to be recognized, and the consideration received shall be recognized as a
financial liability.
(5) Determination of fair value of financial assets and liabilities
The fair value of a financial asset or liability with an active market shall be determined by the
quoted price in the active market, unless the financial asset has a sell-off period for the asset itself.
For the financial assets restricted for the assets themselves, the compensation amount demanded
by market participants due to the risk of not being able to sell the financial assets on the open
market within the specified period shall be deducted from the quoted price in the active market.
Quoted prices in the active market include those for related assets or liabilities that can be easily
and regularly obtained from exchanges, dealers, brokers, industry groups, pricing or regulatory
agencies, and can represent actual and recurring market transactions on the basis of fair trade.
Financial assets initially acquired or derived or financial liabilities assumed shall be determined on
the basis of market transaction price.
The fair value of financial assets or liabilities without an active market shall be determined by
valuation techniques. At the time of valuation, the Company adopts valuation techniques that are
applicable under the current circumstances and are supported by sufficient available data and other
information, selects input values consistent with the characteristics of relevant assets or liabilities
considered by market participants in the transactions thereof, and gives priority to the use of
relevant observable input values whenever possible. If the relevant observable input value cannot
be obtained or be feasibly obtained, the unobservable input value shall be used.
Based on the expected credit loss, the Company conducts impairment accounting of financial
assets classified as those measured at amortized cost, financial assets classified as those measured
at fair value through other comprehensive income, and financial guarantee contracts and
recognizes loss reserves.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(6) Impairment of financial instruments
Expected credit loss refers to the weighted average of the credit losses of financial instruments
weighted by the risk of default. Credit loss refers to the difference between all contractual cash
flows discounted at the original effective interest rate and receivable according to the contract and
all cash flows expected to be collected by the Company, i.e. the present value of all cash shortfalls.
Among them, credit-impaired purchased or originated financial assets of the Company shall be
discounted at the credit-adjusted effective interest rate of such financial assets.
For receivables arising from transactions regulated by the income criteria, the Company uses the
simplified measurement method to measure the loss reserve according to the amount equivalent to
the expected credit loss during the entire duration.
For credit-impaired purchased or originated financial assets, only the accumulated changes in the
expected credit losses during the entire duration since the initial recognition are recognized as loss
reserves on the balance sheet date. On each balance sheet date, the amount of change in the
expected credit loss during the entire duration is included in the current gains and losses as
impairment loss or gains. Even if the expected credit loss during the entire duration on the balance
sheet date is less than that reflected in the estimated cash flow upon initial recognition, the
favorable change in the expected credit loss is recognized as impairment gains.
In addition to other financial assets adopting the above simplified measurement method and other
than the credit-impaired purchased or originated ones, the Company evaluates whether the credit
risk of relevant financial instruments has increased significantly since the initial recognition,
measures its loss reserves, and recognizes the expected credit loss and its changes respectively
according to the following circumstances on each balance sheet date:
(a) If the credit risk of the financial instrument has not increased significantly since its initial
recognition, it is in the first stage, and its loss reserve shall be measured according to an amount
equivalent to its expected credit loss over the next 12 months, and the interest income shall be
calculated according to the book balance and the effective interest rate.
(b) If the credit risk of the financial instrument has increased significantly since initial recognition but
no credit impairment has occurred, it is in the second stage, and its loss reserve shall be measured
according to an amount equivalent to its expected credit loss throughout its life, and the interest
income shall be calculated according to the book balance and the effective interest rate.
(c) If the financial instrument is credit-impaired since its initial recognition, it is in the third stage, and
the Company shall measure its loss reserve according to an amount equivalent to its expected
credit loss throughout its life, and calculate the interest income at the amortized cost and the
effective interest rate.
The increase or reversed amount of the credit loss reserve for financial instruments shall be
included in the current profits and losses as impairment loss or gains. Except for financial assets
classified as those measured at fair value through other comprehensive income, the credit loss
reserve will offset the carrying amount of the financial assets. For financial assets classified as
those measured at fair value through other comprehensive income, the Company recognizes its
credit loss reserve in other comprehensive income without reducing its carrying amount presented
in the balance sheet.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(6) Impairment of financial instruments (continued)
In the previous accounting period, the Company measured the loss reserve, the amount equivalent
to the expected credit loss of the financial instruments throughout their life. However, on the
balance sheet date of the current period, the financial instrument no longer conforms to the
situation of significant increase in credit risk since initial confirmation; on the balance sheet date
of the current period, the Company has measured the loss reserve of the financial instruments, the
amount equivalent to the expected credit loss in the next 12 months, and the reversed amount of
the loss reserve thus formed is included in current profits and losses as impairment profit.
(a) Significant increase in credit risk
In order to determine whether the credit risk of financial instruments has increased significantly
since the initial recognition, the Company uses the available reasonable and based forward-
looking information and compares the risk of default of financial instruments on the balance sheet
date with the risk of default on the initial confirmation date. When the Company applies
provisions on depreciation of financial instruments to financial guarantee contracts, the initial
recognition date shall be regarded as the date when the Company becomes a party to make
irrevocable commitments.
For the assessment of whether the credit risk has increased significantly, the Company will
consider the following factors:
① According to whether the actual or expected debtor's operations results have changed
significantly;
② Whether the regulatory, economic, or technological environment of the debtor has undergone
significant adverse changes;
③ Whether the following items have changed significantly: the value of collateral as debt
mortgage, or the guarantee provided by a third party, or the quality of credit enhancement; these
changes will reduce the debtor’s economic motivation to repay the loan within the time limit
stipulated in the contract and could impact the probability of default;
④ Whether the debtor's expected performance and repayment behavior have changed
significantly;
⑤ Whether the Company's credit management methods for financial instruments have changed,
etc.
If, on the balance sheet date, the credit risk of the financial instrument is judged to be low by the
Company, the Company assumes that the credit risk of the financial instrument has not increased
significantly since the initial recognition. The financial instrument will be deemed to have lower
credit risk under the following circumstances: the default risk of the financial instrument is lower;
the borrower has a strong capacity to fulfill its contractual cash flow obligations in a short time;
furthermore, even if there are adverse changes in the economic situation and operating
environment for a long period of time, it may not necessarily reduce the borrower’s ability to
fulfill its contractual cash flow obligations.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(6) Impairment of financial instruments (continued)
(b) Financial assets with depreciation of credit
If one or more events have adverse effects on the expected future cash flow of a financial asset, the
financial asset will become a financial asset that has suffered credit impairment. The following
observable information can be regarded as evidence of credit impairment of financial assets:
① The issuer or debtor is in serious financial difficulty;
② The debtor breaches the contract, such as default or overdue payment of interest or principal, etc.;
③ The creditor gives concessions to the debtor due to economic or contractual considerations related to
the debtor's financial difficulties; the concessions will not be made under any other circumstances;
④ There is a great possibility of bankruptcy or other financial restructuring of the debtor;
⑤ The issuer or debtor has financial difficulties, resulting in the disappearance of the active market for
the financial assets;
⑥ Purchasing or generating a financial asset with a large discount, which reflects the fact of credit loss.
Credit impairment of financial assets may not be caused by separately identifiable events but may be
caused by the combined effect of multiple events.
(c) Determination of expected credit loss
The expected credit losses of financial instruments are assessed individually and collectively. During the
assessment of the expected credit losses, the Company will take into account reasonable and reliable
information about past events, the current situation, and the future economic situation forecast.
The Company divides financial instruments into different combinations on the basis of common credit
risk characteristics. Common credit risk characteristics adopted by the Company include: financial
instrument type, credit risk rating, aging combination, overdue aging combination, contract settlement
cycle, debtor's industry, etc. To understand the individual evaluation criteria and combined credit risk
characteristics of relevant financial instruments, please refer to the accounting policies of relevant
financial instruments for details.
The Company adopts the following methods to determine the expected credit losses of relevant financial
instruments:
① In terms of financial assets, credit loss is equivalent to the present value of the difference between the
contract cash flow that the Company shall receive and the expected cash flow.
② In terms of the financial guarantee contract, credit loss is equal to the expected amount of payment
made by the Company to the holder of the contract for credit loss incurred, less the present value of the
difference between the amount expected to be collected from the holder of the contract, the debtor, or
any other party.
③ If, on the balance sheet date, a financial asset has suffered credit impairment, but one does not
purchase or generate a financial asset that has suffered credit impairment, the credit loss is equivalent to
the difference between the book balance of the gross amount and the present value of the estimated
future cash flow discounted at the original actual interest rate.
Factors reflected in the Company's method of predicting credit losses by quantitative finance tools
include: unbiased probability weighted average amount determined by evaluating a series of possible
results; time value of money; reasonable and reliable information about past events, current situation and
future economic situation forecast that can be obtained on the balance sheet date without unnecessary
extra costs or efforts.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(6) Impairment of financial instruments (continued)
(d) Write-off of financial assets
If the Company cannot reasonably expect the contract cash flow of the financial asset to be fully or
partially recovered, the book balance of the gross amount will be written off directly. This write-off
constitutes the derecognition of relevant financial assets.
(7) Offset of financial assets and financial liabilities
In the balance sheet, financial assets and financial liabilities are shown separately without offsetting
each other. However, if the following conditions are met at the same time, the net amount after
offset will be listed in the balance sheet:
(a) The Company has the legal right, which is currently enforceable, to offset the confirmed amount;
The Company plans to settle on a net basis or realize the financial assets and settle the financial
(b)
liabilities at the same time.
For the determination method and accounting treatment method of the Company's expected credit
loss on notes receivable, please refer to 11(6) of Note III Impairment of financial instruments.
If sufficient evidence of expected credit loss cannot be evaluated at a reasonable cost at the level of
a single instrument, the Company will refer to the experience of historical credit loss, combine the
current situation and judgment on the future economic situation, divide notes receivable into several
combinations according to the characteristics of credit risk, and calculate expected credit loss on the
basis of combinations.
For the determination method and accounting treatment method of the Company's expected credit
loss on accounts receivable, please refer to 11(6) of Note III Impairment of financial instruments.
As for the accounts receivable, if there is objective evidence that the Company will not be able to
recover the money according to the original terms of the accounts receivable, the Company will
separately determine its credit loss.
If sufficient evidence of expected credit loss cannot be assessed at a reasonable cost at the level of
single instrument, the Company will divide the accounts receivable into several combinations
according to the credit risk characteristics and calculate the expected credit loss on the basis of the
combinations (with reference to the experience of historical credit loss and in combination with the
current situation with the judgment of the future economic situation)
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
Accounts receivable classified as those measured at fair value through other comprehensive
income, with a maturity of i) less than one year (including one year) from the initial recognition
date, are listed as receivables financing; or ii) more than one year from the initial recognition date,
are listed as other debt investments. For the relevant accounting policies, please refer to 11(6) of
Note III Impairment of financial instruments.
For the determination method and accounting treatment method of the Company's expected credit
loss of other receivables, please refer to 11(6) of Note III Impairment of financial instruments.
For other receivables for which there is objective evidence that the Company will not be able to
recover the amount according to the original terms of the receivables, the Company will separately
determine its credit loss.
If sufficient evidence of expected credit loss cannot be evaluated at a reasonable cost at the level
of a single instrument, the Company will refer to the experience of historical credit loss, combine
the current situation and judgment on the future economic situation, divide other receivables into
several combinations according to the characteristics of credit risk, and calculate expected credit
loss on the basis of combinations.
(1) Classification of inventories
Inventories refer to, among other things, finished products or goods held by the Company for sale
in its daily activities, work in progress in production, materials, and supplies consumed in the
production or provision of labor services. Inventories mainly include but are not limited to raw
materials, work in progress, finished goods, and turnover materials.
(2) Valuation method for inventories shipped in transit
When acquired, inventory is initially measured at cost, including purchase costs, processing costs,
and other costs. Inventories are shipped in transit by the weighted average method.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
Basis for determining the net realizable value of inventories and accrual method for inventory
(3)
valuation allowance
After conducting a comprehensive counting at the end of the period, inventory valuation
allowance shall be accrued or adjusted based on whichever is lower of the cost and net realizable
value of the inventories. For inventories of goods directly used for sale, such as finished goods,
merchandise inventories and materials for sale, in the normal production and operations process,
the net realizable value is determined by the amount of the estimated Sales expenses of the
inventory less the estimated sales cost and relevant taxes and fees; for material inventories that
need to be processed, in the normal production and operations process, the net realizable value is
determined by the amount of the estimated selling expenses of finished products produced less the
estimated cost occurred at the time of completion, the estimated selling expenses and related taxes;
for inventories held for the execution of sales contracts or labor contracts, the net realizable value
is calculated on the basis of the contract price, and if the quantity of inventories held is more than
the quantity specified in sales contracts, the net realizable value of excess inventories is calculated
based on the general sales price.
At the end of the period, inventory valuation allowance is accrued according to individual
inventory items; but for a large number of inventories with lower unit prices, inventory valuation
allowance is accrued according to inventory category; for inventories related to the product series
produced and sold in the same region with the same or similar end use or purpose, which is
difficult to measure separately from other items, thus inventory valuation allowance is accrued and
combined with other items.
If the influencing factors of the write-down of inventory value have disappeared, the amount
written-down is recovered and reversed to the amount of inventory valuation allowance already
accrued, and the amount reversed is included in current profits and losses.
(4) Inventory system
The Company adopts a perpetual inventory system for inventory management.
(5) Amortization method of turnover materials
The Company's turnover materials are amortized by the one-time amortization method.
A contract asset shall be recognized if the Company has transferred the goods to the customer and
has the right to receive a consideration depending on other factors than the passage of time. The
right of the Company to unconditionally receive the considerations from customers (i.e., only
depending on the passage of time) is listed independently as receivables.
For the determination method and accounting treatment method of the Company’s expected credit
loss on contract assets, please refer to 11(6) of Note III Impairment of financial instruments.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(1) Criteria for classification as being held for sale
The Company recognizes non-current assets or disposal groups that meet both of the following
conditions as components held for sale:
① They can be sold immediately under the current status according to the practice of selling such
assets or disposal groups in similar transactions;
② The sale is likely to occur, that is, the Company has made a resolution on the sale plan, obtained
the approval from the regulatory authorities (if applicable), and obtained a confirmed purchase
commitment that the sale is expected to be completed in one year.
The confirmed purchase commitment refers to a legally binding purchase agreement concluded by
and between the Company and another party, which contains important terms such as transaction
price, time and sufficiently severe penalty for breach of contract, so that there will be little possibility
of major adjustments to or cancellation of the agreement.
(2) Accounting treatment for held-for-sale assets
The Company shall not depreciate or amortize non-current assets or disposal groups held for sale. If
the carrying amount is higher than the amount of fair value net of selling expenses, the former shall
be written down to the latter. The amount written down shall be recognized as asset impairment loss
and included in the current profit and loss, and the impairment allowance for assets held for sale shall
be accrued at the same time.
The non-current asset or disposal group classified as being held for sale on the date of acquisition
shall be initially measured at whichever initially measured amount is lower under the assumption that
it is not classified as being held for sale and the amount of fair value net of selling expenses.
The above principles are applicable to all non-current assets, except Investment property
subsequently measured by the fair value model, biological assets measured by the amount of fair
value net of selling expenses, assets formed by employee compensation, deferred income tax assets,
financial assets regulated by the relevant accounting standards of financial instruments, and rights
arising from insurance contracts regulated by the relevant accounting standards of insurance
contracts.
For the determination method and accounting treatment methods of the Company’s expected
credit loss of debt investments, please refer to 11(6) "Impairment of financial instruments" under
Note III.
For the determination method and accounting treatment method of the Company's expected credit
loss on long-term receivables, please refer to 11(6) of Note III Impairment of financial instruments.
If sufficient evidence of expected credit loss cannot be evaluated at a reasonable cost at the level of a
single instrument, the Company will refer to the experience of historical credit loss, combine the
current situation and judgment on future economic situations, divide long receivables into several
combinations according to the characteristics of credit risk, and calculate expected credit loss on the
basis of combinations.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(1) Recognition of initial investment cost
(a) Long-term equity investment formed by business combination
For details on accounting policies, please refer to "6 accounting treatments for business
combinations involving enterprises under and not under common control" under Note III.
(b) Long-term equity investment acquired by other means
For long-term equity investment acquired by cash payment, the actual acquisition price is
recognized as initial investment cost. The initial investment cost includes expenses, taxes, and
other necessary expenses directly related to the acquisition of the long-term equity investment.
For long-term equity investment acquired by issuing equity securities, the fair value of equity
securities issued is recognized as the initial investment cost; the transaction costs arising from
issuing or acquiring the own equity instruments of the acquirer will be offset from the equity in
directly attributable transactions.
Provided that the non-monetary asset exchange contains commercial substance and the fair value
of the assets received or assets surrendered can be reliably measured, the initial investment cost
of the long-term equity investment received with non-monetary assets is determined based on the
fair value of the assets surrendered, except that there is conclusive evidence that indicates that
the fair value of assets received is more reliable. For non-monetary assets that do not satisfy the
above condition, the carrying amount of assets surrendered and related taxes and fees payable are
recognized as the initial investment cost of the long-term equity investment.
The initial investment cost of a long-term equity investment acquired by debt restructuring is
determined on the basis of fair value.
For methods of impairment test and accrual of provision for impairment for long-term equity
investments, please refer to "28 Impairment on long-term assets" under Note III.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(2) Subsequent measurement and recognition of profit and loss
(a) Cost method
The long-term equity investment by which the Company exercises control over the investee is
accounted for by the cost method and measured at the initial investment cost. When the long-term
equity investment is added or recovered, its cost should be adjusted thereby.
In addition to the actual payment or the cash dividends or profits included in the consideration that
have been declared but not yet paid when acquiring the investment, the Company recognizes the
investment income for the period the investee's cash dividends or profits attributable to the Company
will be recorded in gains from investment for the period.
(b) Equity method
The long-term equity investments made by the Company in affiliates and joint ventures are accounted
for using the equity method. Among them, the portion of equity investments in affiliates, held
indirectly through venture capital, mutual funds, trusts, or similar entities, including investment-
linked insurance funds, are measured at fair value through profit or loss.
The difference between the higher initial cost of the long-term equity investment and the fair value
share of identifiable net assets of the investee enjoyed in the investment is not used to adjust the
initial investment cost of the long-term investment; the difference between the lower initial
investment cost and the higher fair value share of identifiable net assets of the investee enjoyed at the
time of conducting the investment is included in current profits and losses.
After the Company acquires a long-term equity investment, the investment income and other
comprehensive income should be recognized respectively based on the Company's share in the net
profits and loss and other comprehensive income realized by the investee, and the carrying amount of
the long-term equity investment should be adjusted accordingly; the Company's share in the profits or
cash dividends declared by the investee should be calculated, and the carrying amount of the long-
term equity investment should be reduced accordingly; the carrying amount of the long-term equity
investment should be adjusted based on changes in owners' equity of the investee other than net
profits and loss, other comprehensive income, and profit distribution, and included in owners' equity.
Before the Company recognizes its share in the net profits and loss of the investee, the net profits of
the investee are adjusted based on the fair value of the identifiable assets of the investee as at the
acquisition of the investment. Any unrealized profit and loss from internal transactions between the
Company and its affiliates or joint ventures attributed to the Company based on the Company's, will
be offset, and the investment profit and loss is recognized thereon.
When the Company recognizes its share in the losses incurred by the investee, the Company should,
firstly, offset the carrying amount of the long-term equity investment. Then, if the carrying amount of
the long-term equity investment is insufficient for the offset, the investment loss continues to be
recognized, and the carrying amount of long-term receivable items is offset, subject to other carrying
amounts of the long-term equity constituting the net investment in the investee. Finally, after the
above-mentioned treatment, if the Company still bears additional obligations in accordance with the
investment contract or agreement, the provisions are recognized according to the estimated liabilities
and included in the current investment losses.
If the investee realizes profit in the future period, the Company shall, after deducting the unconfirmed
loss share, conduct the process in the reverse order of the above to write down the book balance of
the recognized estimated liabilities and recover other long-term equity that substantially constitutes
net investment of the investee and the carrying amount of the long-term equity, and then recover the
recognition of the profit as return on investment.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(3) Conversion accounting treatment of long-term the equity investments
(a) Accounting treatment for the transfer from fair value measurement to equity method
For an equity investment, originally held by the Company without control, joint control or significant impact
on the investee that is accounted for based on the financial instrument recognition and measurement standards,
if as a result of additional investment or otherwise, the equity investment enables the Company to exercise
significant impact on or joint control (rather than control) over the investee, the sum of the fair value of the
originally held equity investment determined under the Accounting Standards for Business Enterprises No. 22
- Recognition and Measurement of Financial Instruments and the new investment cost should be deemed as
the initial cost of the investment accounted for using equity method.
The difference between the lower initial investment cost accounted for using the equity method and the higher
share of the fair value of the identifiable net assets of the investee as at the date of the additional investment
calculated based on the new shareholding percentage (%) after the additional investment is made, shall be
used to adjust the carrying amount of the long-term equity investment and included in the non-operating
income for the period.
(b) Transfer from fair value measurement or equity method to cost method
For an equity investment, originally held by the Company without control, joint control or significant impact
on the investee that is accounted for based on the financial instrument recognition and measurement standards,
or a long-term equity investment originally held by the Company in an affiliate or joint venture, if as a result
additional investment or for other reasons, the investment enables the Company to exercise control over an
investee that is not under the common control with Company, the sum of the carrying amount of the originally
held equity investment and the new investment cost should be should be the initial cost of the investment
accounted for using cost method in preparation of the individual financial statements of the Company.
The other comprehensive income recognized in equity investments using the equity method before the date of
acquisition is accounted for, when the investment is disposed of, on the same basis as those the investee
adopted directly to dispose of the underlying assets or liabilities.
If the equity investment held before the acquisition date is subject to the accounting treatment under the
relevant provisions of the Accounting Standards for Business Enterprises No. 22 - Recognition and
Measurement of Financial Instruments, the cumulative changes in fair value originally included in other
comprehensive income should be transferred to the profit or loss for the period when the investment is
accounted for using the cost method.
(c) Transfer from equity method to fair value measurement
If the Company loses joint control or significant impact on the investee due to the disposal of part of the
equity investment or otherwise, the equity remaining after the disposal should be accounted for under the
Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial
Instruments, and the difference between the fair value and carrying amount as at the date of losing the joint
control or significant impact should be included in current profits and losses.
Other comprehensive income recognized for the original equity investment accounted for using equity method
should be accounted for on the same basis as the direct disposal of the underlying assets or liabilities by the
investee when the equity method is terminated.
(d) Transfer from cost method to equity method
Where the Company loses control over the investee due to the disposal of part of the equity investment or
otherwise, if the equity remaining after the disposal by which the Company can exercise joint control or
significant impact on the investee in preparation of the individual financial statements of the Company, the
investment will be accounted for using the equity method, and such remaining equity will be adjusted as if it
were accounted for using the equity method from the time when it is acquired.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(3) Conversion accounting treatment of long-term equity investments (continued)
(e) Transfer from cost method to fair value measurement
If the Company loses control over the investee due to the disposal of part of the equity investment
or otherwise, the equity remaining after the disposal by which the Company cannot exercise joint
control or significant impact on the investee should be accounted for based on the Accounting
Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial
Instruments, in preparation of the individual financial statements of the Company, and the
difference between the fair value and carrying amount as at the date of losing the control should be
included in current profits and losses.
(4) Disposal of long-term equity investments
When a long-term equity investment is disposed of, the difference between the carrying amount of
the long-term equity investment and the actual acquisition price shall be included in current profits
and losses. For a long-term equity investment accounted for using the equity method, when the
investment is disposed of, the part originally included in other comprehensive income should be
accounted for in the corresponding proportion and on the same basis as the direct disposal of the
underlying assets or liabilities by the investee.
When the terms, conditions, and economic influence of transactions of the equity investment of the
subsidiary conform to one or more of the following, accounting for multiple transactions is treated
as a package transaction:
(a) These transactions are made simultaneously or with consideration of influence on each other;
(b) These transactions can only achieve a complete business outcome when they are accounted for
collectively;
(c) The occurrence of a transaction depends on the occurrence of at least one of the other transactions;
(d) A transaction is uneconomical individually, but is economical when considered collectively with
other transactions.
When an enterprise loses control over the original subsidiary due to disposal of part of the equity
investment or other reasons, if the transactions do not belong to a package transaction, the
accounting treatment of individual financial statements and consolidated financial statements should
be distinguished as follows:
(a) In the individual financial statements, the disposed equity should be accounted for in accordance
with the Accounting Standards for Business Enterprises No. 2 - Long-Term Equity Investment;
meanwhile, the remaining equity should be recognized as long-term equity or other related financial
assets based on its carrying amount. If the remaining equity after disposal can be used to exercise
common control or significant influence on the original subsidiary, it shall be accounted for in
accordance with the relevant provisions on the conversion of the cost method into the equity
method.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(4) Disposal of long-term equity investments (continued)
(b) In the consolidated financial statements, the remaining equity should be remeasured in accordance with
its fair value on the date of loss of control. The difference between the sum of the consideration acquired
from the disposal of the equity and the fair value of the remaining equity, less the share of net assets of
the original subsidiary that should be enjoyed in accordance with the original shareholding ratio from the
date of acquisition, is included in the current profit and loss of the period in which loss of control
occurred. Other comprehensive income related to the original subsidiary's equity investment should be
converted into current return on investment when control is lost. The Company shall disclose in the notes
the fair value of the remaining equity after disposal on the date of loss of control and the amount of
relevant gains or losses arising from the disposal remeasured based on the fair value.
If the transactions of disposal of equity investment in a subsidiary until the loss of control are a package
transaction, the accounting treatment of individual financial statements and consolidated financial
statements should be distinguished as follows:
(a) In the individual financial statements, the difference between each disposal price and the carrying
amount of the long-term equity investment corresponding to the disposed equity before the loss of
control is recognized as other comprehensive income, and transferred to the current profit and loss of the
period in which the loss of control occurred;
(b) In the consolidated financial statements, the difference between each disposal price and the disposal of
investment corresponding to the share of the net assets of the subsidiary before the loss of control is
recognized as other comprehensive income, and transferred to the current profit and loss of the period in
which the loss of control occurred.
(5) Criteria for judgment of joint control and significant impact
If the Company exerts joint control over an arrangement with other participants in accordance with the
relevant agreement, and decision on activities that has a significant impact on the return of the
arrangement requires the unanimous consent of the participants sharing the control, the Company and
other participants will be deemed to have joint control over the arrangement - a joint venture
arrangement.
If a joint venture arrangement is entered into through an independent entity, and the Company has rights
over the net assets of the independent entity based on the relevant agreements, the independent entity
shall be deemed as a joint venture and accounted for using the equity method. If based on the relevant
agreement, the Company does not have rights to the net assets of the individual entity, the individual
entity shall be deemed as a joint operation, and the items related to the share of interests in the joint
operation should be recognized and accounted for in accordance with the provisions of relevant
Accounting Standards for Business Enterprises.
Significant impact means the investor’s power to participate in the decision-making of the financial and
operating policies of the investee, but by which the investor cannot control or commonly control together
with other parties the formulation of the policies. Significant impact on the investee will be determined
based on one or more of the cases with reference to all facts and conditions:
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
The Company's investment property means the property held for the purpose of earning rent or
capital appreciation, or both, including the land use rights that have been leased, the land use
rights that are held for transfer upon appreciation, and the leased buildings. In addition, for the
vacant buildings held by the Company for the purpose of leases, if the Board of Directors makes a
written resolution that expressly indicates that the buildings will be used for leases and the
intention of holding will not change in a short-term, the building will also be reported as
investment property.
An investment property of the Company will be recorded at its cost that comprises i) in case of a
purchased investment property, the purchase price, relevant taxes, and other expenses directly
attributable to the asset; or ii) in case of a self-constructed investment property, the necessary
expenses incurred before the asset is constructed to reach its intended serviceable state.
The Company adopts the cost model for subsequent measurement of investment property. For the
purpose of depreciation or amortization method, the same amortization policy adopted for
buildings as fixed assets and land use rights as intangible assets is used.
When the purpose of an investment property is changed to self-use, the Company shall convert the
investment property into a fixed asset or intangible asset from the date of change. When the
purpose of a self-used property is changed to earning rent or capital appreciation, the Company
will convert the fixed asset or intangible asset into an investment property from the date of change.
When such a conversion occurs, the carrying amount before the conversion shall be used as the
recorded value after the conversion.
When an investment property is disposed of, or when it permanently withdraws from use and no
economic benefit is expected to be obtained from the disposal of it, the investment property shall
be derecognized. The disposal income from the sale, transfer, scrapping, or damage of an
investment property, net of its carrying amount and related taxes and fees, is recognized in current
profits and losses.
For methods of impairment test and accrual of provision for impairment of investment property,
please refer to "28 Impairment on long-term assets" under Note III.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(1) Recognition criteria for fixed assets
Fixed assets mean tangible assets held for the purpose of producing goods, rendering services, leases or
operation management, whose service life is more than one fiscal year. Fixed assets satisfying the
following conditions are recognized:
(a) The economic benefits associated with the fixed assets are likely to flow into the enterprise;
(b) The cost of the fixed asset can be measured in a reliable way.
The Company's fixed assets are classified into buildings, machinery and equipment, office and
electronic equipment, transportation vehicles, and fixed assets renovation in line with capitalization
conditions. Where each component of a fixed asset with a different service life provides economic
benefits to the Company in different ways and applies different depreciation rates, it is recognized as a
single fixed asset.
Fixed assets are initially measured at cost. The cost of purchasing fixed assets includes the purchase
price, related taxes, and other expenses attributable to the fixed asset before it is ready for the intended
use, such as the expenses on transportation, handling, installation and professional services, etc. When
determining the cost of fixed assets, discard expenses should be considered. Subsequent expenditures
related to fixed assets that satisfy the recognition criteria of fixed assets are included in the cost of fixed
assets; otherwise, they are recognized in profit and loss in the period in which they arise.
Fixed assets are depreciated by the straight-line method. The depreciation rate of various fixed assets is
determined according to the estimated service life and estimated residual value (the estimated residual
value is 0-10% of the gross amount). The depreciation rate of classified fixed assets is as follows:
Estimated Service Annual
Asset Category
Life Depreciation Rate
Houses and buildings 20-50 years 1.8%-5%
Machinery equipment 5-15 years 6%-20%
Office and electronic equipment 2-5 years 18%-50%
Transportation equipment 3-5 years 18%-33.33%
Power stations 20-25 years 3.8%-4.75%
Others 4-5 years 18%-25%
Fixed assets renovation is amortized evenly over the benefit period.
All fixed assets are subject to depreciation, except for fixed assets that have been fully depreciated and
continue to be used, and the land that is priced and recorded separately. Fixed assets are depreciated on
a monthly basis. Fixed assets added are not depreciated in the current month when being added but
from the following month; fixed assets reduced are still depreciated in the current month when being
reduced, and no depreciation is made from the following month. Fixed assets that are not profitable for
the Company or not used temporarily (other than seasonally deactivated) are recognized as idle fixed
assets. The estimated life expectancy and depreciation rate of idle fixed assets should be reestimated,
and depreciation is directly included in the current profit and loss.
The methods for impairment testing and accrual of impairment provisions of fixed assets are detailed in
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
Construction in progress refers to the necessary expenses incurred by the Company for the purchase and
construction of fixed assets or investment property before being ready for the expected usable status,
including engineering materials costs, labor costs, related taxes and fees, borrowing costs that should be
capitalized and indirect costs that should be apportioned. Construction in progress is accounted for
separately according to individual projects.
After the construction in progress is ready for its intended use, it must be transferred to fixed assets or
investment property, whether the final accounting procedures are completed or not.
The methods for impairment testing and accrual of impairment provisions of construction in progress are
detailed in 28 "Long-term Asset Impairment" under Note III.
Borrowing costs refer to interest and other related costs incurred by the Company as a result of borrowings,
including interest on borrowings, amortization of discounts or premiums, ancillary expenses, and exchange
differences arising from foreign currency borrowings.
Borrowing costs that can be directly attributable to the acquisition, construction, or production of assets
eligible for capitalization are capitalized and included in the relevant asset cost. Other borrowing costs are
recognized as expenses in the period in which they are incurred, and are included in the current profit and
loss. Assets eligible for capitalization refer to fixed assets, investment property, inventories, and other assets
that require a substantial period of acquisition, construction or production activities to get ready for the
intended use or sale status.
Borrowing costs become capitalized when:
The asset expenditure has occurred, including expenditure incurred in the form of cash payments, transfer of
(1) non-cash assets, or assuming interest-bearing debts for the purpose of acquisition, construction, or
production of assets that are eligible for capitalization;
(2) Borrowing costs have occurred;
The acquisition, construction, or production activities necessary to enable the assets to be ready for the
(3)
intended usable or saleable state have commenced.
When an asset that satisfied the capitalization conditions is abnormally interrupted during the process of
acquisition, construction or production and the interruption period lasts for more than three months, the
capitalization of the borrowing costs is suspended and recognized as the current expenses until the
acquisition, construction or production of the assets starts again. When an asset that satisfied the
capitalization conditions is ready for its intended use or sale, the capitalization is stopped and the borrowing
costs incurred in the future are included in the current profit and loss.
The period of capitalization refers to the period from the time when the borrowing costs start to be
capitalized to the point when the capitalization is stopped, and the period in which the borrowing costs are
suspended for capitalization is not included. During the period of capitalization, if special borrowings are
made for the acquisition, construction, or production of assets eligible for capitalization, the amount of the
interest expenses actually incurred during the current period of the special borrowings, less the amount of
interest income earned by depositing unused borrowing funds in a bank or investment income earned by
temporary investment, is recognized as the amount of capitalization. When a general loan is occupied for the
purpose of purchasing, constructing or producing assets that satisfied the capitalization conditions, the
amount of capitalization is determined according to the weighted average of the accumulated asset
expenditure exceeding the special loan portion multiplied by the capitalization rate of the general loan
occupied; the capitalization rate is determined based on the weighted average interest rate of general
borrowings.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
The Company initially measures right-of-use assets at cost. Such costs include:
(1) The initial measurement amount of lease liabilities;
(2) Lease payments made on or before the commencement date of the lease term (if a lease incentive
exists, net of the amount related to the lease incentive already taken);
(3) Initial direct costs incurred by the Company;
(4) Costs expected to be incurred by the Company to disassemble and remove the leased asset(s),
restore the premises where the leased asset(s) is/are located, or restore the leased asset(s) to the
condition agreed upon under the terms of the lease (excluding costs incurred to produce
inventory).
After the commencement date of the lease term, the Company uses the cost model for subsequent
measurement of right-of-use assets.
If it is reasonably certain that ownership of the leased asset(s) will be obtained at the end of the
lease term, the Company depreciates the leased asset(s) over its/their remaining service life. If it is
not reasonably certain that ownership of the leased asset(s) will be obtained at the end of the lease
term, the Company depreciates the leased asset(s) over the lease term or the remaining service life
of the leased asset(s), whichever is shorter. Right-of-use assets for which impairment reserves
have been accrued are depreciated in future periods at their carrying amount net of impairment
reserves, with reference to the above principles.
In accordance with the provisions of Accounting Standards for Business Enterprises No. 8 - Asset
Impairment, the Company determines whether right-of-use assets have been impaired and
accounts for the recognized impairment loss, as detailed in 28 "Long-term Asset Impairment"
under Note III.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
Intangible assets refer to the identifiable non-monetary assets, owned or controlled by the Company,
without physical form, including land use rights, intellectual property rights, and non-patented
technologies, etc.
Intangible assets are recorded at the actual cost at the time of acquisition. The service life of intangible
assets is analyzed and judged at the time of acquisition. Intangible assets with a finite service life are
amortized on the shortest of the estimated service lives, the beneficial period of the contract, and the
effective period specified by law from the time when the intangible assets are available for use. The
amortization period is as follows:
Category Amortization years
The shorter of the years of the land use rights and the operating
Land use rights
years of the Company
Patents and non-patent 10 years or the shorter of service life, beneficiary years and
technologies legally valid years
Others Beneficiary period
The Company reviews the service life and amortization method of intangible assets with limited
service life at least at the end of each year, and makes adjustments if necessary.
The methods for impairment testing and accrual of impairment provisions of intangible assets are
detailed in 28 "Long-term Asset Impairment" under Note III.
If an intangible asset is foreseen as unable to bring economic benefits to the Company, it is regarded as
an intangible asset with an indefinite service life, which will be reviewed in each accounting period. If
evidence indicates that the service life of the intangible asset is limited, then it is converted to an
intangible asset with a limited service life. Intangible assets with indefinite service lives are not
amortized.
The expenditures of the Company's internal research and development items are classified into
expenditures in the research phase and expenditures in the development phase. Research means an
original, planned survey of acquiring and understanding new scientific or technical knowledge.
Development means the application of research results or other knowledge to a plan or design to
produce new or substantially improved materials, devices, products, etc. prior to commercial
production or use.
The expenditures in the research phase of the Company's internal research and development items are
included in the current profit and loss when incurred; expenditures in the development phase are
recognized as intangible assets only when the following conditions are all satisfied:
(1) It is technically feasible to complete the intangible asset to enable it to be used or sold;
(2) There is intent to complete the intangible asset and use or sell it;
(3) The intangible assets can bring economic benefits;
(4) There are sufficient technical, financial, and other resources to support the development of the
intangible assets as well as the ability to use or sell the intangible assets;
Expenditures attributable to the development stage of the intangible asset can be measured in a reliable
(5)
way.
If the above conditions cannot all be satisfied, the expenditures are included in the current profit and
loss when incurred.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
The Company determines whether there is any sign of possible impairment of the long-term assets on
the balance sheet date. If there is any sign of impairment in a long-term asset, the Company estimates
the recoverable amount thereof based on the individual asset. If it is difficult to estimate the
recoverable amount of the individual asset, the recoverable amount of the asset is determined based on
the asset group to which the asset belongs.
The recoverable amount of an asset is determined based on the net amount of the fair value of the asset
less the disposal expenses, or the present value of estimated future cash flows of the asset, whichever is
higher.
If the measurement results of the recoverable amount indicate that the recoverable amount of the long-
term investment is lower than its carrying amount, the carrying amount of the long-term investment is
written off to the recoverable amount, and the amount written by is recognized as asset impairment
loss, which is included in current profits and losses, while provision for asset impairment is made.
Once the asset impairment loss is confirmed, it cannot be reversed in the future accounting period.
After the asset impairment loss is recognized, the depreciation or amortization expense of the impaired
assets will be adjusted accordingly in the future periods so that the adjusted carrying amount of the
asset (deducting the expected net residual value) will be systematically amortized over the remaining
service life of the asset.
For the goodwill formed by business combination and the intangible assets with indefinite service life,
an impairment test is carried out every year regardless of whether there is any indication of
impairment.
In the impairment test of goodwill, the carrying amount of goodwill is apportioned to the asset group or
asset group portfolio expected to benefit from the synergy of the business combination. When
impairment tests are conducted on underlying asset groups or asset group portfolios that contain
goodwill, impairment tests will be first conducted on the asset groups or asset group portfolios that do
not contain goodwill, provided there is any sign of impairment in the asset groups or asset group
portfolios related to the goodwill and the recoverable amount will be calculated and compared with the
relevant carrying amount to recognize the corresponding impairment loss. Further impairment tests will
be conducted on asset groups or asset group portfolios that contain goodwill, by comparing the
carrying amount of such underlying asset groups or asset group portfolios (including the part of the
carrying amount of the allocated goodwill) with their recoverable amount. If the recoverable amount of
the underlying asset group or asset group portfolio is lower than its carrying amount, the impairment
loss shall be recognized for goodwill.
Long-term deferred expenses refer to various expenses that the Company has paid, should be amortized
over the current and future periods, and whose period of amortization is more than one year, such as
the improvement expenses incurred in renting fixed assets by operating leases. Long-term deferred
expenses are amortized on a straight-line basis within the beneficial period of the expense items.
The Company recognizes as contract liabilities the part of the obligation to transfer the goods to the
customer due to received or receivable consideration from the customer.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
Employee benefits include short-term employee benefits, post-employment benefits, termination
benefits, and other long-term employee benefits provided in various forms of consideration in
exchange for service rendered by employees or compensation for the termination of employment
relationships.
(a) Short-term employee benefits
Short-term employee benefits include employee wages or salaries, bonuses, allowances and
subsidies, staff welfare, premiums or contributions on medical insurance, work injury insurance and
maternity insurance, housing funds, union running costs and employee education costs, and short-
term paid absences. During the accounting period when employees provide services, the Company
recognizes the actual short-term remuneration as liabilities, and includes it in current profits and
losses or related asset costs according to the beneficiaries of the services provided by employees.
Non-monetary benefits are measured at their fair value.
(b) Post-employment benefits
The Company classifies post-employment benefit plans as either defined contribution plans or
defined benefit plans. Defined contribution plans are post-employment benefit plans under which
the Company pays fixed contributions into a separate fund and will have no obligation to pay further
contributions; and defined benefit plans are post-employment benefit plans other than defined
contribution plans. During the Reporting Period, the Company’s defined contribution plans mainly
include basic pensions and unemployment insurance.
(c) Termination benefits
If the Company terminates the labor relationship with an employee before the labor contract expires
or offers compensation for encouraging the employee to accept the redundancies voluntarily, the
liabilities arising from compensation for the termination of labor relations with the employee are
determined, and also included in current profits and losses at the time when the Company cannot
unilaterally withdraw the termination of the labor relationship plan or redundancies proposal or the
time when the cost associated with reorganization involving payment of termination benefits is
confirmed, whichever is earlier.
(d) Other long-term employee benefits
Other long-term employee benefits refer to all employee benefits except short-term employment
benefits, post-employment benefits, and termination benefits.
For other long-term employee benefits that meet the conditions of a defined contribution plan, the
amount to be contributed shall be recognized as a liability during the accounting period when the
employee provides services to the Company, and shall be included in profit or loss for the period or
the underlying asset costs. For long-term employee benefits other than those mentioned above, on
the balance sheet date, the benefit obligations arising from the defined benefit plan shall be
attributed to the periods during which the employee provides services, and shall be included in profit
or loss for the period or the underlying asset costs.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(1) Recognition standards for estimated liabilities
An obligation related to product quality assurance, loss contracts, restructuring, and other
contingencies shall be recognized as a provision, if i) it is a current obligation of the Company, ii)
the fulfillment of this obligation is likely to result in an outflow of economic benefits, and iii) the
amount of this obligation can be reliably measured.
(2) Measurement methods for estimated liabilities
The estimated liabilities of the Company are initially measured on the basis of the best estimate of
the expenditure required to perform the relevant current obligations.
When determining the best estimate, the Company considers factors such as risks, uncertainties,
and time value of money related to contingent events. Where the time value of money has a
significant impact, the best estimate is determined by discounting the relevant future cash
outflows.
The best estimates are handled as follows:
In case there is a continuous range (or interval) of required expenditures, within which the
possibility of occurrence of various results is the same, the best estimate is determined by the
average of the middle value of the range, that is, the average of the upper and lower limits.
In case there is no continuous range (or interval) of required expenditures, or there is a continuous
range but the possibility of various results in the range is different, if the contingency involves a
single item, the best estimate is determined based on the most probable amount; if a contingency
involves multiple items, the best estimate is determined based on various possible outcomes and
associated probabilities.
If all or part of the expenses required by the Company to settle the estimated liabilities are
expected to be compensated by a third party, the compensation amount is separately recognized as
an asset when it is basically confirmed to be received, and the recognized compensation amount
should not exceed the carrying amount of the estimated liabilities.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
The Company initially measures lease liabilities at the present value of the lease payments
outstanding on the commencement date of the lease term. When calculating the present value of
lease payments, the Company uses the interest rate implicit in the lease as the rate of discount. If
the implicit interest rate of the lease cannot be determined, the incremental loan interest rate of the
Company shall be used as the discount rate. Lease payments include:
The amount of fixed payments, net of amounts related to lease incentives, and the amount of
(a)
substantive fixed payments;
(b) Variable lease payments that depend on indexation or ratio;
The exercise price of the purchase option, when applicable, if the Company is reasonably certain
(c)
that the option will be exercised;
(d) The amount required to be paid to exercise the option to terminate the lease if the lease term
reflects that the Company will exercise the option to terminate the lease;
(e) The estimated amount payable is based on the secured residual value provided by the Company.
The Company calculates the interest expenses of lease liabilities for each period within the lease
term at a fixed rate of discount and includes them in profit or loss for the current period or cost of
the related assets.
Variable lease payments that are not included in the measurement of lease liabilities should be
included in profit or loss for the current period or cost of the related assets when they are actually
incurred.
The share-based payments of the Company are mainly equity-settled share-based payments and
are only allow to be exercised by employees after the completion of their services in the waiting
period. On each balance sheet date in the waiting period, based on the best estimate of the number
of vesting equity instruments, the services obtained in the current period are included in the
relevant costs or expenses and capital reserve based on the fair value at the grant date of the equity
instruments.
The fair value of equity instruments is determined by the external appraiser or management based
on the binomial distribution method. The best estimate of the vesting equity instrument is
determined by the management based on historical statistics on the vesting weights and turnover
rates on the balance sheet date.
Equity-settled share-based payments are measured based on the fair value of the equity
instruments granted to employees. In case the vesting right is available immediately after the
grant, it is included in the relevant cost or expense based on the fair value of the equity instrument
on the grant date, and the capital reserve is increased accordingly. In case the vesting right is
available after the completion of services in the waiting period or satisfaction of stipulated
performance conditions, on each balance sheet day during the waiting period, the services
acquired in the current period are included into the relevant costs or expenses and capital reserve
on the basis of the best estimate of the number of feasible equity instruments and at the fair value
of the date on which the equity instruments are granted. No adjustments are made to the identified
related costs or expenses or total owners' equity after the vesting date.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(1) General principles applied to revenue recognition
The Company shall recognize the revenue according to the transaction price assigned to the
performance obligation when any due performance obligation is fulfilled (namely when the client
obtains control over relevant commodities or services). Performance Obligation means that, under
the contract, the Company promises to transfer commodities or services that can be clearly
distinguished to the client. "Obtain the control over relevant commodities or services" refers to the
ability to completely dominate the use of commodities and obtain almost all economic benefits.
From the contract’s effectiveness date, the Company shall evaluate the contract, recognize each
single performance obligation included, and determine whether each performance obligation is
fulfilled within a certain period or at a time point.
When any of the following conditions is met for a performance obligation to be fulfilled within a
certain period, the Company shall recognize corresponding revenue within the period according to
the performance schedule:
While fulfilling the due obligation in the Company, the client obtains and consumes the resulting
(a)
economic benefit;
(b) The client is able to control the commodities under construction during the Company’s fulfillment;
(c) Commodities generated from the Company’s fulfillment possess irreplaceable purpose, and the
Company has the right to charge all fulfilled performance obligations within the whole contract
period; otherwise, the Company shall recognize corresponding revenue when the client obtains
control over relevant commodities or services.
For any performance obligation with a certain period, the Company shall apply the output
method/input method to determine the appropriate fulfillment schedule based on the specific nature
of commodities and services. The output method is to determine the fulfillment schedule according
to the value of commodities transferred to the client (while the input method is to determine the
fulfillment schedule according to the Company’s input to fulfill the performance obligation). If the
fulfillment schedule cannot be reasonably determined and the Company’s costs are predicted to be
compensated, corresponding revenue shall be recognized based on the specific cost amount until the
fulfillment schedule can be reasonably determined.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(2) Specific revenue recognition method
(a) Product sales contract
According to the contract terms, for the selling of products subject to performance obligation fulfillment
conditions at a time point and other products, the Company shall recognize the realization of sales revenues
when the client obtains control over relevant commodities or services according to the delivery condition
agreed in the sales contract upon signing by the client after commodities are received.
(b) Technical service contract
If revenues are recognized within a certain period based on the technical service contract, corresponding
revenues shall be recognized according to the performance schedule.
(c) Royalty income
Accounted for according to the time and method of charging as stipulated in the relevant contract or
agreement.
(d) Revenue from photovoltaic power stations
a. Centralized power stations: Power stations are connected to the grid. The revenue is recognized based on
the documents on power supply provided by the business departments of the Company, after the duration of
continuous and trouble-free operation specified by the electric power company is met. b. Distributed power
stations: Power stations are connected to the grid. The revenue is recognized based on the documents on
settlement provided by the business departments of the Company.
(3) Principles of handling revenues from specific transactions
(a) When the client obtains the control over relevant commodities, corresponding revenue shall be recognized
according to the consideration amount (excluding the amount predicted to be returned due to sales return)
predicted to be duly charged from transferring commodities to the client, and corresponding liabilities shall be
recognized based on the amount predicted to be returned due to sales return. Meanwhile, when commodities
are sold, the balance through deducting the predicted cost for taking back commodities from the carrying
amount of commodities predicted to be returned (including the impairment of value of returned commodities)
shall be accounted for under "Returned Commodities Cost Receivable".
(b) For the contract containing the quality assurance article: it’s required to evaluate whether the quality assurance
involves any separable service except for the promise (to the client) that commodities conform to established
standards. If the Company provides additional service, it shall be deemed as a single performance obligation
and subject to the accounting treatment according to relevant revenue criteria provisions; otherwise, the
quality assurance liability shall be subject to the accounting treatment according to the accounting criteria
provisions on Contingency.
(c) For the sales contract containing the client’s additional purchase option: the Company shall evaluate whether
the option provides the client with any significant right. If any, it shall be deemed as a single performance
obligation, and the transaction price shall be apportioned to the performance obligation, and corresponding
revenues shall be recognized when the client executes the purchase option right and obtains the control over
relevant commodities in the future or when the option becomes invalid. If the separable selling price applied to
the client’s additional purchase option right cannot be directly observed, it’s required to comprehensively
consider the difference in discounts between the client’s execution of option right and the client’s non-
execution of option right and analyze the possibility for the client to execute the option right and other relevant
information. Then, a corresponding reasonable estimate shall be made.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(3) Principles of handling revenues from specific transactions (continued)
(d) The contract licenses the IP right to the client: It’s required to evaluate whether the IP right license
constitutes any single performance obligation; if any, it is necessary to determine whether the
performance obligation fulfillment is fulfilled within a certain period or at a time point. If any IP
right license is granted to the client and royalties are charged based on the client’s actual sales or
usage, corresponding revenues shall be recognized at a later time between the following dates: the
day when the client’s subsequent selling or usage occurs; the day when the Company fulfills
relevant performance obligations.
(e) Major responsible person and agent: Based on whether the Company has control over the goods or
service before transferring it to the customer, it is determined whether the Company is the major
responsible person or an agent in the transactions. If the Company is able to control the goods or
service before transferring it to the customer, the Company shall be deemed as major responsible
person and the revenue shall be recognized at the total amount of the consideration received or
receivable; otherwise, the Company shall be deemed as an agent, and the revenue shall be
recognized at the amount of the commission or handling fee to which it expects to be entitled. The
amount of the commission or handling fee is determined by deducting the amount payable to other
relevant parties from the total amount of consideration received or receivable.
(1) Contract performance cost
For the cost resulting from performing the contract which is not included in other ASBE except
the revenue standards and meets the following conditions, the Company shall recognize it as an
asset:
(a) The cost is directly related to a current or predicted contract, including the direct labor, direct
material. and manufacturing expenses (or similar expenses), the cost borne by the client, and other
costs resulting from the contract;
The cost adds various resources that can be applied by the Company to fulfill due performance
(b)
obligations; and
(c) The cost is predicted to be recovered.
The asset shall be presented and reported in inventory or other non-current assets, which depends
on whether the amortization period exceeds a normal operating cycle during the initial recognition.
(2) Contract acquisition cost
If the incremental cost resulting from the Company’s acquisition of the contract is predicted to be
recovered, it shall be recognized as an asset as the contract acquisition cost. Increment Cost refers
to the cost that only results from the contract acquisition, like the sales commission. If the
amortization period is less than one year, it shall be included in current profit and loss.
(3) Contract cost amortization
The asset related to the contract cost shall, by adopting the same basis for the recognition of
commodities or services revenues related to the asset, be amortized during the period of fulfilling
the performance obligation or according to the fulfillment schedule and be included into current
profit and loss.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(4) Impairment of contract costs
For the asset related to the contract cost as mentioned above, if the carrying amount is higher than
the difference between the residual consideration predicted to be obtained from the Company’s
transfer of commodities related to the asset and the cost to be incurred due to such transfer,
depreciation reserves shall be calculated and withdrawn for the surplus which shall also be
recognized as the asset impairment loss.
After the provision for impairment is made, if changes in depreciation factors during previous
periods have made the above difference higher than the asset’s carrying amount, it shall be
restituted to previously established asset impairment allowances and included in current profit and
loss. However, the carrying amount of restituted assets shall not exceed the carrying amount of the
asset on the date of restitution without establishing impairment allowances.
(1) Type of change
Public grants are transfers of monetary or non-monetary assets from the public to the Group at nil
consideration. According to the grant targets stipulated in the relevant public documents, public
grants are classified into public grants related to assets and public grants related to income.
(2) Recognition of public grants
If a public grant is a monetary asset, it is measured at the amount received or receivable. If a
public grant is a non-monetary asset, it is measured at fair value. If the fair value cannot be
obtained in a reliable way, there are measured at the nominal amount (RMB 1). Public grants
measured at nominal amounts are recognized directly in the current profits and losses.
(3) Accounting treatment
Public grants related to assets offset the carrying amount of the underlying assets.
If the public grants related to income are used to compensate related costs or losses in the
subsequent period, it is recognized as deferred income and included in the current profit and loss
or offset costs in the period in which the related costs or losses are recognized; public grants used
to compensate costs or losses incurred by the enterprise shall be directly included in current profits
and losses or offset related costs. For public grants related to the day-to-day activities of the
enterprise, the R&D and VAT-related subsidies and the taxation, or operation-based incentive
public subsidies are included in other income; other public grants are written off against related
costs based on the substance of economic activities. Public grants not related to daily activities of
the Company are included in the non-operating income and expenditure. For preferential loans for
policy discounts, if the public finance department appropriates the discounted funds to the lending
bank, the borrowing cost is accounted for according to the principal of the loan and the policy
preferential interest rate, with the amount actually received as the entry value of the loan. If the
public finance department directly appropriates the interest grant funds to the Company, the grants
shall offset the related borrowing costs.
In case a recognized public grant is required to be returned, the carrying amount of the asset is
adjusted if the carrying amount of relevant assets is offset at the initial recognition; if there is
related deferred income, the book balance of deferred income is offset, and the excess is included
in the current profit and loss; and in case of other circumstances, it is directly included in current
profits and losses.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
Deferred income tax assets and deferred income tax liabilities shall be recognized based on the
difference (temporary difference) between the tax basis and carrying amount of the underlying
assets or liabilities. On the balance sheet date, the deferred income tax assets and deferred
income tax liabilities are measured based on the tax rate applicable during the period when it is
expected to recover the assets or pay off the liabilities.
(1) Basis for recognition of deferred income tax assets
The Company recognizes deferred income tax assets arising from deductible temporary
differences to the extent that it is likely to acquire taxable income that can be used to offset the
deductible temporary differences, deductible losses that can be carried forward to future years
and tax credits. However, deferred income tax assets arising from the initial recognition of assets
or liabilities in a transaction with all the following characteristics shall not be recognized: (1) the
transaction is not a business combination; and (2) the occurrence of the transaction does not
affect accounting profits or taxable income or deductible losses.
For a deductible temporary difference related to investments in affiliates, the corresponding
deferred income tax asset will be recognized if the following criteria are met simultaneously: the
temporary difference is likely to be reversed in the foreseeable future and it is likely to obtain
taxable income that can be used to offset the deductible temporary difference in the future.
(2) Basis for recognition of deferred income tax liabilities
The Company recognizes the taxable temporary differences that should be paid but are not paid
for the current and previous periods as deferred income tax liabilities. But deferred tax liabilities
do not include:
(a) Temporary differences arising from the initial recognition of goodwill;
Temporary differences arising from transactions or events that are not formed by a business
(b) combination and do not affect accounting profits or taxable income (or deductible losses) upon
their occurrence;
For taxable temporary differences related to investments in subsidiaries and associates, the
(c) timing of the reversal of the temporary differences can be controlled and the temporary
differences are unlikely to be reversed in the foreseeable future.
Deferred income tax assets and liabilities are presented on a net basis after the following
(3)
conditions are met:
(a) An enterprise has the legal right to settle current income tax assets and liabilities on a net basis;
Deferred income tax assets and liabilities relate to income taxes levied by the same taxing
authority on either the same taxable entity or different taxable entities that intend to either settle
(b) current tax assets and liabilities on a net basis, or to realize the assets and settle the liabilities
simultaneously, in each future period in which significant amounts of deferred tax assets or
liabilities are reversed.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
From the effective date of a contract, the Company assesses whether the contract is a lease or includes
any lease. If a party to the contract transfers the right allowing the control over the use of one or more
assets that have been identified within a certain period, in exchange for a consideration, such a
contract is a lease or includes a lease.
(1) Lease contract split
If a contract contains multiple single leases at the same time, the Company will split the contract, and
conduct accounting treatment of each single lease respectively.
If a contract contains both lease and non-lease parts at the same time, the Company will split the lease
and non-lease parts, conduct accounting treatment of the lease part in accordance with the accounting
standards governing leases, and conduct accounting treatment of the non-lease part in accordance with
other applicable Accounting Standards for Business Enterprises.
(2) Lease contract combination
With regard to two or multiple contracts containing leases concluded by the Company with the same
counterparty or its related parties at the same or a similar time, when any of the following conditions
is met, the contracts are combined into one contract for accounting treatment:
Two or multiple contracts are concluded based on an overall business purpose and constitute a
(a) package deal, and if they are not considered as a whole, the overall business purpose cannot be
understood.
The consideration amount of one contract among the two or multiple contracts depends on the pricing
(b)
or performance of other contracts.
(c) The rights to use assets transferred by the two or multiple contracts constitute one single lease.
(3) Accounting treatment with the Company as lessee
On the commencement date of the lease term, the Company recognises the right-of-use assets and
lease liabilities for the lease, unless it is a simplified short-term lease or low-value asset lease.
(a) Short-term leases and low-value asset leases
A short-term lease refers to a lease that does not include a purchase option and whose lease term does
not exceed 12 months. A low-value asset lease refers to a lease where the value will be low when a
single leased asset is a new asset.
The Company does not recognize the right-of-use assets or lease liabilities for the following short-
term leases and low-value asset leases. In each period within the lease term, the relevant lease
payments are included in the cost of the related assets or profit or loss for the current period on a
straight line basis or according to other systemic and reasonable methods.
Item Simplified leased asset type
Short-term lease A lease whose lease term does not exceed 12 months from the commencement
date of the lease term
Low-value asset An asset lease with a value of less than RMB 40,000 or its foreign currency
lease equivalents
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(3) Accounting treatment with the Company as lessee (continued)
The Company recognizes the right-of-use assets and lease liabilities for short-term leases and low-value
asset leases other than those mentioned above.
The accounting policies for right-of-use assets and lease liabilities are detailed in Note III. 26 and Note III.
(b)
(4) Accounting treatment with the Company as lessor
(a) Lease classification:
The Company classifies leases into finance leases and operating leases at the inception of leases. A finance
lease refers to a lease where almost all the risks and rewards related to the ownership of the leased asset(s),
are substantially transferred, regardless of whether the ownership is transferred eventually. An operating
lease refers to all leases other than finance leases.
Usually, the Company classifies a lease that meets any one or more of the following conditions as a finance
lease:
compared with the fair value of the leased asset(s) at the time the option is expected to be exercised, it can
be reasonably determined at the inception of the lease that the lessee will exercise the option.
service life of the leased asset(s).
value of the leased asset(s).
alteration.
The Company may also classify a lease that falls under any one or more of the following circumstances as a
finance lease:
borne by the lessee.
(b) Accounting treatment of finance leases
On the commencement date of the lease term, the Company recognizes the finance lease receivables for the
finance lease and derecognizes the leased asset(s) of the finance lease.
In the initial measurement of finance lease receivables, the sum of the unsecured residual value and the
present value of the lease payments receivable not yet received on the commencement date of the lease term
discounted at the interest rate implicit in the lease is the entry value of the finance lease receivables. Lease
payments receivable include:
fixed payments;
exercise the purchase option;
reflects that the lessee will exercise the option to terminate the lease;
third party that has the financial ability to perform the security provision obligation.
The received variable lease payments that are not included in the measurement of the net investment in the
lease are included in profits and losses for the current period when they are actually incurred.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(4) Accounting treatment with the Company as lessor (continued)
(c) Accounting treatment of operating leases
For each period of the lease term, the Company adopts the straight-line method or other systematic
and reasonable methods to recognize the lease receipts of the operating lease as rental income; the
Company capitalizes the initial direct expenses incurred in connection with the operating lease,
amortizes them over the lease term on the same basis as that for the recognition of the rental
income, and includes them in the current profit and loss by stage; the Company includes the
variable lease payments, obtained in connection with the operating lease that are not included in
the lease receipts, in current profits and losses when they are actually incurred.
(5) Sale and leaseback
(a) The Company as seller and lessee
If the asset transfer in a sale and leaseback transaction is a sale, the Company will measure the
right-of-use assets formed by the sale and leaseback based on the portion of the original asset’s
carrying amount that is related to the use right acquired by the leaseback, and recognize related
gains or losses only for the right transferred to the lessor. If the fair value of the sales
consideration is different from the fair value of the asset, or if the lessor does not charge the rent at
the market price, the Company will conduct accounting treatment with the sales consideration
amount below the market price as the prepaid rent, or the amount above the market price as the
additional financing provided by the lessor to the lessee; at the same time, the relevant sales gains
or losses will be adjusted based on the fair value.
If the asset transfer in a sale and leaseback transaction is not a sale, the Company will continue to
recognize the transferred asset and at the same time recognize a financial liability equivalent to the
transfer income.
(b) The Company as buyer and lessor
If the asset transfer in a sale and leaseback transaction is a sale, the Company will conduct
corresponding accounting treatment for asset purchase and apply the accounting standards
governing leases to the accounting treatment of the asset lease. If the fair value of the sales
consideration is different from the fair value of the asset, or if the Company does not charge the
rent at the market price, the Company will conduct accounting treatment with the sales
consideration amount below the market price as the pre-collected rent, or the amount above the
market price as the additional financing provided by the Company to the lessee; at the same time,
the rental receipt will be adjusted based on the market price.
If the asset transfer in a sale and leaseback transaction is not a sale, the Company will recognize a
financial asset equivalent to the transfer income.
If one party controls, commonly controls or exerts a significant influence on the other party, and
two or more parties are under the control, common control or significant influence of the other
party, they constitute related parties. Enterprises that are solely controlled by the state and do not
have any other related party relationship shall not be deemed as related parties.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
The Company will recognize a component that meets one of the following conditions, has been
disposed of or classified as being held for sale, and can be separately identified, as a component of
discontinued operation:
(1) This component represents an independent main business or a separate main operation region.
(2) This component is part of a related plan to dispose of an independent main business or a separate
main operation region.
(3) This component is a subsidiary acquired for the sole purpose of resale.
Operating profit and loss, such as impairment loss for discontinued operations and the amount
reversed, and disposal profit and loss are presented in the income statement as profit and loss of
discontinued operations.
In the balance sheet, the Company presents, independently from other assets, the held-for-sale non-
current assets or assets in held-for-sale disposal groups, and presents, independently from other
liabilities, the liabilities in held-for-sale disposal groups. The held-for-sale non-current assets or
assets in held-for-sale disposal groups and the liabilities in held-for-sale disposal groups shall not
offset each other, but shall be presented as current assets and current liabilities, respectively. In the
income statement, the Company presents the profits and losses from going concern and the profits
and losses from discontinued operations. For the discontinued operations reported in the current
period, the Company represents in the financial statements for the current period, the information
previously presented as the profits and losses from going concern as the profits and losses from
discontinued operations for the comparable accounting period. If the discontinued operations are
no longer eligible for being classified as held-for-sale categories, the Company will represent in the
financial statements for the current period, the information previously presented as the profits and
losses from discontinued operations as the profits and losses from going concern for the
comparable accounting period.
Hedge is classified as a fair value hedge, cash flow hedge or net foreign investment hedge based
on the hedging relationship.
(1) A hedging relationship qualifies for hedge accounting only if all of the following criteria are met
(a) The hedging relationship consists only of eligible hedging instruments and eligible hedged items.
(b) At the inception of the hedging relationship, there is formal designation of hedging instruments
and hedged items, and documentation of the hedging relationship and the Company’s risk
management strategies and objectives for undertaking the hedge have been prepared.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(1) A hedging relationship qualifies for hedge accounting only if all of the following criteria are met
(Continued)
(c) The hedging relationship meets the hedge effectiveness requirements.
The hedging relationship meets the hedge effectiveness requirements only if all of the following
criteria are met:
economic relationship causes opposite changes in the value of the hedging instrument and the hedged
item in the face of the identical hedged risk.
relationship.
hedged item that the Company actually hedges and the quantity of the hedging instrument that the
Company actually uses to hedge that quantity of hedged item. However, that designation shall not
reflect an imbalance between the weightings of the hedged item and the hedging instrument that would
create hedge ineffectiveness that could result in an accounting outcome that would be inconsistent with
the purpose of hedge accounting.
(2) Fair value hedge accounting
(a) Gain or loss on the hedging instrument shall be recognized in profit or loss. If the hedging instrument
hedges a non-trading equity instrument (or a component thereof) that the Company has elected to be
measured at fair value through other comprehensive income, the hedging gain or loss generated by the
hedging instrument shall be recognized in other comprehensive income.
(b) Gain or loss generated by the hedged item due to the hedged risk exposure shall be recognized in profit
or loss and shall adjust the carrying amount of the recognized hedged item that is not measured at fair
value. If the hedged item is a financial asset (or a component thereof) measured at fair value through
other comprehensive income, the hedging gain or loss on the hedged item shall be recognized in profit
or loss, and will not be required for adjustment since the carrying amount has been measured at fair
value. However, if the hedged item is a non-trading equity instrument (or a component thereof) that the
Company has elected to be measured at fair value through other comprehensive income, the hedging
gain or loss on the hedged item shall be recognized in other comprehensive income and will not be
required for adjustment, since the carrying amount has been measured at fair value.
When a hedged item represents a defined commitment that has not been unrecognized (or a component
thereof), the cumulative change in the fair value of the hedged item subsequent to its designation
caused by the hedge relationship is recognized as an asset or a liability with a corresponding gain or
loss recognized in profit or loss. When a defined commitment is made to acquire an asset or assume a
liability, the initial carrying amount of the asset or the liability is adjusted to include the cumulative
change in the fair value of the hedged item that has been recognized.
(c) If the hedged item is a financial instrument (or a component thereof) measured at amortized cost, the
adjustment made to the carrying amount of the hedged item shall be amortized based on the effective
interest rate recalculated on the amortization commencement date and recognized in current profits and
losses. This amortization can commence from the adjustment date, but not later than the time when the
hedging gain or loss adjustment is made for the termination of the hedged item. If the hedged item is a
financial asset (or a component thereof) measured at fair value through other comprehensive income,
the cumulative recognized hedging gain or loss shall be amortized in the same manner and recognized
in the profit or loss, but the carrying amount of the financial asset (or a component thereof) shall not be
adjusted.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(3) Accounting treatment of cash flow hedges
(a) The portion of the gain or loss on the hedging instrument that is determined to be an effective
hedge (i.e., the portion that is offset by the change in the cash flow hedge reserve) shall be
recognized in other comprehensive income. The amount of cash flow hedging reserves shall be
determined based on the lower of the absolute amount of the following two items:
since the commencement of the hedge. The amount of cash flow hedging reserves recognized in
other comprehensive income for each period is the change in cash flow hedging reserves for the
period.
(b) The portion of the gain or loss on the hedging instrument that is determined to be an ineffective
hedge (i.e., other gain or loss after deducting that recognized in other comprehensive income) shall
be recognized in current profits and losses.
(c) The amount that has been accumulated in the cash flow hedge reserve shall be accounted for as
follows:
in the recognition of a non-financial asset or non-financial liability, or a hedged forecast
transaction for a non-financial asset or a non-financial liability becomes a defined commitment for
which fair value hedge accounting treatment is applied, the Company shall remove that amount
from the cash flow hedge reserve previously recognized in other comprehensive income and
include it in the initial cost of the asset or the liability.
reserve previously recognized in other comprehensive income shall be reclassified from the cash
flow hedge reserve to current profits and losses in the same period or the period during which the
hedged expected future cash flows affect profit or loss.
comprehensive income is a loss and the Company expects that all or a portion of that loss will not
be recovered in one or more future periods, it shall immediately reclassify the amount that is not
expected to be recovered from other comprehensive income to current profits and losses.
(4) Hedges of a net investment in a foreign operation
Hedges of a net investment in a foreign operation, including a hedge of a monetary item that is
accounted for as part of the net investment shall be accounted for similarly to cash flow hedges:
(a) The portion of the gain or loss on the hedging instrument that is determined to be an effective
hedge shall be recognized in other comprehensive income.
When disposing of all or part of the foreign operation, the gain or loss on the hedging instrument
recognized in other comprehensive income shall be correspondingly transferred out and
recognized in current profits and losses.
(b) The portion of the gain or loss on the hedging instrument that is determined to be an ineffective
hedge shall be recognized in current profits and losses.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(5) Termination of hedge accounting
Hedge accounting will be terminated if one of the following situations occurs:
(a) The hedging relationship no longer meets the risk management objectives due to changes in risk
management objectives.
(b) The hedging instrument has expired or been sold, or the contract has been terminated or has been
exercised.
(c) The economic relationship no longer exists between the hedged item and the hedging instrument,
or the effect of credit risk starts to dominate the value changes that result from that economic
relationship.
(d) The hedging relationship no longer meets other conditions for applying hedging accounting
stipulated in this standard. In case the rebalancing of the hedging relationship is applied, the
Company shall first consider the rebalancing of the hedging relationship and then evaluate
whether the hedging relationship meets the conditions for applying hedging accounting stipulated
in this standard.
Termination of hedge accounting may affect the whole or a portion of the hedging relationship,
and when only a portion thereof is affected, hedge accounting remains applicable to the remaining
unaffected portion.
(6) Fair value selection of credit risk exposure
When credit derivative instruments measured at fair value through current profits and losses are
used to manage the credit risk exposure of a financial instrument (or a component thereof), the
financial instrument (or a component thereof) can be designated as a financial instrument
measured at fair value through current profits and losses during its initial recognition, subsequent
measurement, or when not yet recognized, with written records made simultaneously, provided
that the following criteria are met:
(a) The subject (such as the borrower or the loan commitment holder) of the credit risk exposure of
the financial instrument is consistent with the subject involved in the credit derivative;
(b) The reimbursement level of the financial instrument is consistent with that of the instrument
required to be delivered under the terms of the credit derivative.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
(1) Change of accounting policies
(a) Reclassification of guarantee-based warranty expenses
Based on the Interpretation of Accounting Standards for Business Enterprises No. 18 promulgated
on December 6, 2024 by the Ministry of Finance, the guarantee-based warranty expenses shall be
included in operating cost. From January 2024, the Company started implementing such
provision, and included the guarantee-based warranty expenses in operating cost. The
implementation of such an accounting treatment provision had no impact on the retained earnings
of the earliest financial statements at the beginning of the prior reporting period. The adjustments
to relevant items in the January-June 2024 (consolidated) comparative financial statements are as
follows:
January - June 2024
Item of the income
statement Cumulative
Before change After change
impacted amount
Operating cost 70,384,382 258,176 70,642,558
Sales expenses 1,135,573 (258,176) 877,397
(2) Changes to accounting estimates
No significant change occurred to the major accounting estimates in the Reporting Period.
No previous accounting errors were identified and corrected in the Reporting Period.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
IV Taxes
In the Reporting Period, output tax was calculated at 3%, 5%, 6%, 9%, or 13% of the taxable
income of general taxpayers, and the value-added-tax was paid based on the difference after
deducting the allowance deduction of input tax in the current period. The value added-tax
payment for the Company’s directly exported goods is executed in accordance with the
regulations of "Exemption, Offset and Refund". The tax refund rate is 0%-13% during the
reporting period.
Subject to the relevant tax laws and regulations of the state and local regulations, urban
maintenance and construction tax is paid based on the proportion stipulated by the state
according to the individual circumstances of each member of the Company.
Education surcharges are paid according to the individual circumstances of each member of the
Company based on the proportion stipulated by the state in accordance with the relevant national
tax regulations and local regulations.
Property tax is paid on the houses with property rights according to the proportion stipulated by
the state in accordance with the relevant national tax regulations and local regulations.
According to Article 28 of the Enterprise Income Tax Law of the People's Republic of China, a
reduced corporate income tax rate of 15% is applied to important high-tech enterprises that the
public supports.
According to the relevant provisions of the Announcement on the Preferential Income Tax
Policies for Small and Micro Enterprises and Self-employed Businesses (Announcement No. 6
[2023] of the Ministry of Finance and the State Taxation Administration) and the Announcement
of the Ministry of Finance and the State Taxation Administration on Tax Policies for Further
Supporting the Development of Small and Micro Enterprises and Self-employed Businesses
(Announcement No. 12 [2023] of the Ministry of Finance and the State Taxation
Administration), issued by the Ministry of Finance and the State Taxation Administration in
profit enterprises not exceeding RMB 1 million will be included in the taxable income at a
reduced rate of 25%, and the enterprise income tax will be paid at the rate of 20%.
Except for the following subsidiaries entitling to preferential tax treatment and the overseas
subsidies that adopt local applicable tax rate, other entities under the Company are subject to the
applicable tax rate of 25%, or the preferential tax rate for small and micro enterprises.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
IV Taxes (continued)
Subsidiaries entitled to tax preferences:
Company name Preferential tax rate Reason
TCL Financial Technology (Shenzhen) Co., Ltd. 15.00% High-tech enterprise
Shenzhen TCL High-Tech Development Co., Ltd. 15.00% High-tech enterprise
China Display Optoelectronics Technology
(Huizhou) Co., Ltd.
TCL China Star Optoelectronics Technology Co.,
Ltd.
Wuhan China Star Optoelectronics Technology
Co., Ltd.
Shenzhen China Star Optoelectronics Bandaoti
Display Technology Co., Ltd.
Wuhan China Star Optoelectronics Bandaoti
Display Technology Co., Ltd.
Guangzhou China Star Optoelectronics Bandaoti
Display Technology Co., Ltd.
Suzhou China Star Optoelectronics Technology
Co., Ltd.
Huizhou Kedate Smart Display Technology Co.,
Ltd.
Shenzhen Qianhai Maojia Software Technology
Co., Ltd.
Tianjin Huanbo Science and Technology Co., Ltd. 15.00% High-tech enterprise
Tianjin Printronics Circuit Corporation 15.00% High-tech enterprise
Techigh Circuit Technology (Huizhou) Co., Ltd. 15.00% High-tech enterprise
Tianjin Huanzhi New Energy Technology Co.,
Ltd.
Inner Mongolia Zhonghuan Solar Material Co.,
Ltd.
Tianjin Zhonghuan Advanced
Material&Technology Co., Ltd.
Huansheng New Energy (Jiangsu) Co., Ltd. 15.00% High-tech enterprise
Zhonghuan Advanced Bandaoti Technology Co.,
Ltd.
Wuxi Zhonghuan Applied Materials Co., Ltd. 15.00% High-tech enterprise
Huansheng New Energy (Tianjin) Co., Ltd. 15.00% High-tech enterprise
Tianjin Huanou New Energy Technology Co., Ltd 15.00% High-tech enterprise
Shaanxi Huanshuo Green New Energy Co., Ltd. 15.00% Encouraged business in West China
Suzhou China Star Environmental Protection Eligible third-party enterprises engaged in
Technology Co., Ltd. pollution prevention and control
Inner Mongolia Zhonghuan Advanced Bandaoti High-tech enterprise and encouraged
Material Co., Ltd. business in West China
Inner Mongolia Zhonghuan Crystal Materials Co., High-tech enterprise and encouraged
Ltd. business in West China
High-tech enterprise and encouraged
Ningxia Zhonghuan Solar Material Co., Ltd. 9.00%
business in West China
Ningxia Huanou New Energy Technology Co.,
Ltd.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
IV Taxes (continued)
Company name Preferential tax rate Reason
Dangxiong Youhao New Energy Development State-supported public infrastructure item
Co., Ltd. and encouraged business in West China
State-supported public infrastructure item
Hohhot Shuguang New Energy Co., Ltd. 12.50%
and encouraged business in West China
State-supported public infrastructure item
Shaanxi Runhuan Tianyu Technology Co., Ltd. 7.50%
and encouraged business in West China
Xuzhou Huanneng New Energy Co., Ltd. Tax-exempt State-supported public infrastructure item
Tianjin Binhai Huanxu New Energy Co., Ltd. Tax-exempt State-supported public infrastructure item
A 50% reduction in
the first phase, and
Tianjin Zhonghuan New Energy Co., Ltd. State-supported public infrastructure item
full exemption in the
second phase
Hohhot Dishengsheng New Energy Co., Ltd. Tax-exempt State-supported public infrastructure item
Shaanxi Huanbo New Energy Power Engineering State-supported public infrastructure item
Tax-exempt
Construction Co., Ltd.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements
June 30, 2025 December 31, 2024
Cash on hand 497 482
Bank deposits 26,336,769 20,526,899
Deposits with the central bank 261,628 285,264
Other monetary assets 1,945,449 2,195,128
Note Monetary assets with restricted use rights
June 30, 2025 December 31, 2024
TCL Tech Finance's statutory reserve deposits with
the central bank
Other restricted monetary assets 1,732,441 1,867,608
As of June 30, 2025, the Company’s bank deposits of RMB 255,241,000 (December 31, 2024: RMB
Group Finance Co., Ltd., a subsidiary of the Company.
As of June 30, 2025, the Company’s monetary assets offshore amounted to RMB 6,847,602,000
(December 31, 2024: RMB 3,151,386,000), all of which were owned by the overseas subsidiaries of
the Company.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
June 30, 2025 December 31, 2024
Financial assets classified as those measured at fair value
through profit or loss
Including: Debt instrument investments 24,086,112 16,525,080
Equity instrument investments 4,792 35,891
June 30, 2025 December 31, 2024
Foreign exchange forwards and foreign exchange swaps 168,726 172,489
(1) Notes receivable by category
June 30, 2025 December 31, 2024
Bank acceptance notes 172,633 188,776
Trade acceptance notes 1,482 1,077
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(2) Presentation of provision for bad debts on notes receivable by category
June 30, 2025 December 31, 2024
Gross amount Bad-debt Allowance Gross amount Bad-debt Allowance
Accrual Carrying Accrual Carrying
Amount Ratio Amount Amount Ratio Amount
Ratio amount Ratio amount
Notes receivable for
which the allowance for
doubtful accounts were 174,115 100% - - 174,115 189,853 100% - - 189,853
established on the
grouping basis
Including: low-risk
portfolio
(3) As at June 30, 2025, the Company had no notes receivable in pledge.
(4) As at June 30, 2025, endorsed or discounted notes receivable that were outstanding and derecognized amounted
to RMB 2,787,000 and endorsed or discounted notes receivable that were outstanding and not derecognized
were RMB 51,162.
June 30, 2025 December 31, 2024
Accounts receivable 20,113,028 22,589,419
Less: allowance for doubtful accounts 371,077 347,266
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Accounts receivable as at June 30, 2025 are classified as follows by how the doubtful debts were
(1)
provisioned:
June 30, 2025 December 31, 2024
Gross amount Bad-debt Allowance Gross amount Bad-debt Allowance
Category Accrual Carrying Accrual Carrying
Amount Ratio Amount Amount Ratio) Amount
Ratio amount Ratio amount
Allowances
for bad debts
accrued on an 247,803 1.23% 189,668 76.54% 58,135 261,025 1.16% 188,520 72.22% 72,505
individual
basis
Provision for
impairment
based on
portfolio of 19,865,225 98.77% 181,409 0.91% 19,683,816 22,328,394 98.84% 158,746 0.71% 22,169,648
credit risk
characteristic
s
(2) The aging of accounts receivable is analyzed as follows:
June 30, 2025 December 31, 2024
Amount Ratio Amount Ratio
Within 1 year 18,136,412 90.17% 20,652,345 91.43%
Over 3 years 766,037 3.81% 697,779 3.09%
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(3) Allowances for doubtful accounts receivable are analyzed as follows:
June 30, 2025
Beginning amount 347,266
Accrued in the period 51,648
Reversal of current period (45,286)
Write-off of current period (200)
Others 17,649
Ending amount 371,077
(4) As at June 30, 2025, the accounts receivable and contract assets of the top five balances are as
follows:
June 30, 2025
Total amount of the accounts receivable and contract assets of the
top five balances
As a percentage of the total amount of accounts receivable and
contract assets
(5) Accounts receivable derecognized due to transfer of financial assets
Methods of transfer of Amount derecognized Gain or loss
Item
financial assets for the period on derecognition
Accounts Factoring without
receivable recourse
June 30, 2025 December 31, 2024
Notes receivable financing 852,499 584,362
Receivable financing 3,107,127 247,045
As at June 30, 2025, the financing for endorsed or discounted receivables that were outstanding and
derecognized amounted to RMB 17,832,121,000.
As of June 30, 2025, the Company believes that receivables financing it held did not have significant credit
risks and will not cause significant losses due to default.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(1) Prepayments are analyzed as follows:
June 30, 2025 December 31, 2024
Within 1 year 1,356,151 1,807,562
Over 3 years 37,727 5,671
(2) As of June 30, 2025, the prepayments of the top five balances are as follows:
June 30, 2025
Total amount owed by the top five 1,112,296
As % of total prepayments 54.94%
June 30, 2025 December 31, 2024
Dividends receivable 680,027 675,119
Other receivables 3,246,928 4,048,021
(1) Dividends receivable
June 30, 2025 December 31, 2024
Xinjiang Goens Energy Technology
Co., Ltd.
Others 4,908 -
Less: allowance for doubtful
accounts
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(1) Dividends receivable (continued)
(a) Presentation of provision for bad debts on dividends receivable by category
June 30, 2025 December 31, 2024
Bad-debt Bad-debt
Gross amount Allowance Gross amount Allowance
Accrual Carrying Accrual Carrying
Category Amount Ratio Amount Amount Ratio Amount
Ratio amount Ratio amount
Allowances for
bad debts
accrued on an
individual basis
(2) Other receivables
June 30, 2025 December 31, 2024
Other receivables 3,679,801 4,478,337
Less: allowance for
doubtful accounts 432,873 430,316
(a) Nature of other receivables is analyzed as follows:
June 30, 2025 December 31, 2024
Subsidy receivables 1,012,909 1,849,469
Equity transfer receivables 505,369 561,969
Security and deposits 495,753 490,401
Others 1,232,897 1,146,182
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(2) Other receivables (continued)
(b) Presentation of provision for bad debts on other receivables by category
June 30, 2025 December 31, 2024
Bad-debt Bad-debt
Gross amount Allowance Gross amount Allowance
Category Carrying Carrying
Accrual Accrual
Amount Ratio Amount amount Amount Ratio Amount amount
Ratio Ratio
Allowances
for bad debts
accrued on an 509,007 13.83% 349,181 68.60% 159,826 684,637 15.29% 351,362 51.32% 333,275
individual
basis
Provisions for
bad debts
accrued on a
portfolio 3,170,794 86.17% 83,692 2.64% 3,087,102 3,793,700 84.71% 78,954 2.08% 3,714,746
basis
(c) Allowance for doubtful other receivables is analyzed as follows:
Lifetime ECL
(credit not Total
ECL (credit impaired)
impaired)
December 31, 2024 28,902 - 401,414 430,316
Current accrual 2,422 - 6,980 9,402
Reversal of current
(1,837) - (308) (2,145)
period
Write-off of current
(41) - - (41)
period
Others 72 - (4,731) (4,659)
June 30, 2025 29,518 - 403,355 432,873
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(d) The aging of other receivables is analyzed as follows:
June 30, 2025 December 31, 2024
Carrying amount Ratio Carrying amount Ratio
Within 1 year 1,785,264 48.51% 2,406,461 53.74%
Over 3 years 623,741 16.95% 631,175 14.09%
(e) As of June 30, 2025, the other receivables of the top five balances are as follows:
June 30, 2025
Total amount owed by the top five 1,626,628
As % of total other receivables 44.20%
(f) On June 30, 2025, there was no transfer of other receivables that did not conform to the conditions for
derecognition in the balance of this account; no transaction arrangement for asset securitization with other
receivables as the subject asset; and no financial instrument that was the subject of securitization and did not
conform to the conditions for derecognition.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(1) Inventories are classified as follows:
June 30, 2025 December 31, 2024
Provision for Provision for
depreciation depreciation
of inventories of inventories
Gross / provision for Carrying Gross / provision for Carrying
amount impairment of amount amount impairment of amount
contract contract
performance performance
costs costs
Raw
materials
Work in
progress
Finished
Goods
Turnover
materials 211,337 13,478 197,859 157,865 1,447 156,418
As of June 30, 2025, the Company had no inventory for liabilities guarantee.
(2) Provision for depreciation of inventories/provision for impairment of contract performance costs:
Accrued in Reversal and write- Other
December 31, 2024 June 30, 2025
the period off in the period changes
Raw
materials
Work in
progress
Inventory
of goods
Turnover
materials
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(1) Contract assets are classified as follows:
June 30, 2025 December 31, 2024
Gross Impairment Carrying Gross Impairment Carrying
amount allowance amount amount allowance amount
Contract
assets 429,810 32,137 397,673 422,207 27,090 395,117
(2) Valuation allowances for contract assets are analyzed as follows:
Reversal or
Accrued in Other increases
December 31, 2024 write-off in June 30, 2025
the period and decreases
the period
Contract
assets
June 30, 2025 December 31, 2024
Other non-current assets due within one year 1,765,934 842,072
Debt investments due within one year - 7,634
June 30, 2025 December 31, 2024
VAT to be deducted, to be certified, etc. 7,006,759 6,201,277
Loans and advances to customers 851,126 390,720
Others 910,637 124,212
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
June 30, 2025 December 31, 2024
Treasury bonds and corporate bonds 176,057 147,272
June 30, 2025 December 31, 2024
Gross Bad-debt Carrying Gross Bad-debt Carrying
amount Allowance amount amount Allowance amount
Finance lease 300,891 - 300,891 306,397 - 306,397
Including:
Unrealized (207,690) - (207,690) (220,030) - (220,030)
financing income
Others 143,664 27,801 115,863 165,145 27,801 137,344
June 30, 2025 December 31, 2024
Gross Impairment Carrying Gross Impairment Carrying
amount allowance amount amount allowance amount
Associate 23,683,207 1,422 23,681,785 24,140,271 1,444 24,138,827
Joint venture 488,423 49,503 438,920 506,310 49,503 456,807
As of June 30, 2025, the Company made impairment allowances for long-term equity investments in
investees with poor management and insolvent assets. In addition, there was no significant restriction on the
realization of investment and the remittance of return on long-term equity investment.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(1) Changes in long-term equity investments for the year
Increase or decrease in current period
Additional Reductions in Net profits or losses Cash dividends
Other Other
December 31, investments investments adjusted or profit
Investees 2024 or or under the equity
comprehensive equity
distribution
Others June 30, 2025
income changes
transfers-in transfers-out method declared
Joint venture 456,807 27,833 - (46,873) - 1,153 - - 438,920
Associate
Bank of Shanghai Co., Ltd. 14,740,146 - - 738,558 (47,923) 17 (179,937) - 15,250,861
Hubei Changjiang Hezhi Equity Investment
Fund Partnership (Limited Partnership)
Inner Mongolia Xinhuan Silicon Energy
Technology Co., Ltd.
Others 6,947,630 60,000 (171,868) 6,337 31 1,326 (45,683) (5,508) 6,792,265
Total of associates 24,138,827 60,000 (225,253) 629,394 (47,892) 1,343 (869,126) (5,508) 23,681,785
Total 24,595,634 87,833 (225,253) 582,521 (47,892) 2,496 (869,126) (5,508) 24,120,705
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(2) Impairment allowances for long-term equity investments
Increase in Decrease in Other
December 31, 2024 June 30, 2025 Note
current period current period changes
Pride Telecom Limited 1,444 - - (22) 1,422 Note 1
Huaxia CPV (Inner
Mongolia) Power Co., Ltd.
Note 1 Provisions for impairment were accrued for the long-term equity investments in these investees at
recoverable amounts because continuous operations losses occurred to these investees with poor management.
June 30, 2025 December 31, 2024
Stocks 20,326 13,371
Equity of unlisted companies 393,991 374,480
Reasons designated as
Amount of other
Recognized measured at fair value and
Cumulative Cumulative comprehensive
Item name dividend whose changes are
gains losses income transferred
revenue included in other
to retained earnings
comprehensive income
Being held long-term for
- 6,005 (193,923) -
Stocks strategic purposes
Equity of unlisted Being held long-term for
- 11,196 (12,307) -
companies strategic purposes
Total - 17,201 (206,230) -
June 30, 2025 December 31, 2024
Equity investments 2,357,816 1,924,717
Debt investments 216,155 300,483
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Houses and buildings Land use rights Total
Gross amount:
December 31, 2024 830,496 219,676 1,050,172
Increase 5,863 3,150 9,013
Reclassified from fixed assets and
intangible assets
Other increases 179 3,150 3,329
Decreases (1,433) (3,924) (5,357)
Other decreases (1,433) (3,924) (5,357)
June 30, 2025 834,926 218,902 1,053,828
Accumulated depreciation and
amortization:
December 31, 2024 320,055 49,475 369,530
Increase 13,272 2,451 15,723
Accrued in the period 9,863 2,451 12,314
Reclassified from fixed assets and
intangible assets
Decreases (2,167) (59) (2,226)
Other decreases (2,167) (59) (2,226)
June 30, 2025 331,160 51,867 383,027
Investment property, net:
June 30, 2025 503,766 167,035 670,801
December 31, 2024 510,441 170,201 680,642
Impairment allowance:
December 31, 2024 67,908 - 67,908
June 30, 2025 67,908 - 67,908
Investment property, net:
June 30, 2025 435,858 167,035 602,893
December 31, 2024 442,533 170,201 612,734
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Office and
Houses and Machinery Transportation Power
electronic Others Total
buildings equipment equipment stations
equipment
Gross amount:
December 31, 2024 61,136,545 241,758,804 3,800,411 318,237 2,224,955 1,426,517 310,665,469
Increase 7,278,351 35,972,244 632,363 38,517 - 8,135 43,929,610
New subsidiary 6,685,127 24,955,842 543,758 1,561 - - 32,186,288
Acquisition and other 44,890 597,541 56,850 8,338 - 2,713 710,332
Reclassified from
construction in 548,334 10,418,861 31,755 28,618 - 5,422 11,032,990
progress
Decreases (644,438) (1,235,281) (140,162) (8,528) - - (2,028,409)
Written down with
- (22,246) - - - - (22,246)
public grants
Reclassified to
(5,684) - - - - - (5,684)
investment property
Decrease due to
disposal of (38,751) (95,183) (64,585) - - - (198,519)
subsidiaries
Other decreases (600,003) (1,117,852) (75,577) (8,528) - - (1,801,960)
Exchange adjustment (1,810) (3,006) 465 39 - 501 (3,811)
June 30, 2025 67,768,648 276,492,761 4,293,077 348,265 2,224,955 1,435,153 352,562,859
Accumulated
depreciation:
December 31, 2024 12,442,980 121,364,569 2,452,682 242,880 659,147 334,859 137,497,117
Increase 3,989,923 35,764,568 666,688 21,587 41,520 42,473 40,526,759
New subsidiary 2,801,716 23,629,474 480,115 1,378 - - 26,912,683
Accrual 1,184,764 11,888,563 185,433 20,209 41,520 42,473 13,362,962
Other increases 3,443 246,531 1,140 - - - 251,114
Decreases (82,643) (517,135) (95,768) (7,248) - - (702,794)
Reclassified to
(3,409) - - - - - (3,409)
investment property
Decrease due to
disposal of (32,901) (13,104) (26,440) - - - (72,445)
subsidiaries
Other decreases (46,333) (504,031) (69,328) (7,248) - - (626,940)
Exchange adjustment 762 (613) 706 74 - 344 1,273
June 30, 2025 16,351,022 156,611,389 3,024,308 257,293 700,667 377,676 177,322,355
Fixed assets, net:
June 30, 2025 51,417,626 119,881,372 1,268,769 90,972 1,524,288 1,057,477 175,240,504
December 31, 2024 48,693,565 120,394,235 1,347,729 75,357 1,565,808 1,091,658 173,168,352
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Office and
Houses and Machinery Transportation Power
electronic Others Total
buildings equipment equipment stations
equipment
Impairment allowance:
December 31, 2024 919,519 1,601,398 73,101 266 62,059 - 2,656,343
Accrued in the period - - 87 - - - 87
Write-off of current period (705) (6,549) (372) (100) - - (7,726)
Other changes 2,297 19,635 173 - - - 22,105
June 30, 2025 921,111 1,614,484 72,989 166 62,059 - 2,670,809
Fixed assets, carrying
amount:
June 30, 2025 50,496,515 118,266,888 1,195,780 90,806 1,462,229 1,057,477 172,569,695
December 31, 2024 47,774,046 118,792,837 1,274,628 75,091 1,503,749 1,091,658 170,512,009
Please refer to Item 82 of Note V for information on fixed assets pledge.
Fixed assets with pending ownership certificates at the end of the current period:
Reasons for pending ownership
Carrying amount
certificates
Houses and buildings
(Note)
Note As of June 30, 2025, the fixed assets for which the certificates of title have not been completed are mainly the houses
and buildings of Huaxing Production Bases t3, t5 and t9, as well as the houses and buildings of Inner Mongolia
Zhonghuan Crystal Materials Co., Ltd. and Ningxia Huan'ou New Energy Technology Co., Ltd..
(1) Schedule of construction in progress
June 30, 2025 December 31, 2024
Construction in progress 18,074,486 23,872,805
Less: Impairment allowance 266,042 292,302
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(2) Changes to construction in progress
Accumulated
Construction in investment in Including: Interest
Increase in Cumulative
progress Other the project Project capitalized capitalization
Project name Budget December 31, 2024 current June 30, 2025 capitalized Funding source
transferred to movements progress interest in rate for current
period as % of interest
fixed assets current period period
budget
t9 production line of Under Self-funded and
LCD panel construction financed funds
Solar power station Under Self-funded and
projects construction financed funds
Large-diameter silicon
Under Self-funded and
wafers for integrated 11,210,780 3,241,139 287,338 (832,314) (342) 2,695,821 49% 48,264 8,216 2.95%
construction financed funds
circuits
Silicon wafers for Under Self-funded and
integrated circuits construction financed funds
Highly-efficient
Under Self-funded and
imbricate module G12 2,886,269 911,184 350,578 (22,247) (183) 1,239,332 7% 8,932 2,354 0.13%
construction financed funds
project
Production line of 8-
Under Self-funded and
construction financed funds
for integrated circuits
Not Not Not Not
Others 10,047,288 2,732,662 (5,794,374) (474,610) 6,510,966 Not applicable Not applicable Not applicable
applicable applicable applicable applicable
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Houses and Transportation Machinery Land use
Total
buildings equipment equipment rights
Gross amount:
December 31, 2024 6,523,967 755 906,409 472,917 7,904,048
Increase 128,972 13,370 - 87,845 230,187
New subsidiary 73,183 12,960 - - 86,143
Leased in 54,414 162 - 73,214 127,790
Other increases 1,375 248 - 14,631 16,254
Decreases (107,377) (253) (4,864) (1,172) (113,666)
Reduction due to
(17,653) - - - (17,653)
contract revision
Other decreases (89,724) (253) (4,864) (1,172) (96,013)
Exchange adjustment 14,430 52 - - 14,482
June 30, 2025 6,559,992 13,924 901,545 559,590 8,035,051
Accumulated
depreciation:
December 31, 2024 802,000 398 294,298 47,409 1,144,105
Increase 251,982 11,586 50,634 14,181 328,383
New subsidiary 55,949 10,610 - - 66,559
Accrual 189,998 484 50,634 14,181 255,297
Other increases 6,035 492 - - 6,527
Decreases (68,883) (42) (2,822) - (71,747)
Other decreases (68,883) (42) (2,822) - (71,747)
Exchange adjustment 4,148 29 - - 4,177
June 30, 2025 989,247 11,971 342,110 61,590 1,404,918
Right-of-use assets,
carrying amount:
June 30, 2025 5,570,745 1,953 559,435 498,000 6,630,133
December 31, 2024 5,721,967 357 612,111 425,508 6,759,943
Impairment allowance:
December 31, 2024 62,255 - - - 62,255
Decreases (25,918) - - - (25,918)
Write-off of current year (25,918) - - - (25,918)
June 30, 2025 36,337 - - - 36,337
Right-of-use assets,
carrying amount:
June 30, 2025 5,534,408 1,953 559,435 498,000 6,593,796
December 31, 2024 5,659,712 357 612,111 425,508 6,697,688
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Non-patent
Land use
technology/ Others Total
rights
patent right
Gross amount:
December 31, 2024 9,509,193 15,399,137 3,304,269 28,212,599
Increase 1,141,344 1,145,022 366,974 2,653,340
New subsidiary 822,003 5,972 271,302 1,099,277
Purchase 7,828 996,386 95,672 1,099,886
Reclassified from development
- 142,664 - 142,664
expenditures
Others 311,513 - - 311,513
Decreases (185) (10,495) (30,885) (41,565)
Disposal and others (185) (10,495) (30,885) (41,565)
Exchange adjustment (441) 967 755 1,281
June 30, 2025 10,649,911 16,534,631 3,641,113 30,825,655
Accumulated amortization:
December 31, 2024 1,519,969 6,851,302 1,564,658 9,935,929
Increase 260,040 1,105,474 410,718 1,776,232
Accrual 136,759 1,099,502 160,964 1,397,225
New subsidiary 123,222 5,972 249,754 378,948
Others 59 - - 59
Decreases (31) (4,326) (4,084) (8,441)
Disposal and others (31) (4,326) (4,084) (8,441)
Exchange adjustment (6) (459) 264 (201)
June 30, 2025 1,779,972 7,951,991 1,971,556 11,703,519
Intangible assets, net:
June 30, 2025 8,869,939 8,582,640 1,669,557 19,122,136
December 31, 2024 7,989,224 8,547,835 1,739,611 18,276,670
Impairment allowance:
December 31, 2024 23,562 114,526 21,115 159,203
Exchange adjustment - (149) - (149)
June 30, 2025 23,562 114,377 21,115 159,054
Intangible assets, carrying amount:
June 30, 2025 8,846,377 8,468,263 1,648,442 18,963,082
December 31, 2024 7,965,662 8,433,309 1,718,496 18,117,467
Please refer to Item 82 of Note V for information on collateralized intangible assets.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Development expenditures are presented as follows:
June 30, 2025 December 31, 2024
Display 1,142,061 1,165,388
New energy photovoltaics and other silicon
materials
(1) Gross amount of goodwill
Increase in Decrease
Name of investee or matter forming
December 31, 2024 current in current June 30, 2025
goodwill
period period
TCL Technology Group (Tianjin) Co.,
Ltd.
Moka International Limited 1,733,665 - - 1,733,665
Xinxin Bandaoti Technology Co., Ltd. 1,180,005 - - 1,180,005
Maxeon Solar Technologies, Ltd. 1,556,676 - (77,299) 1,479,377
Guangzhou China Star Optoelectronics
- 827,544 - 827,544
Technology Co., Ltd.
Guangzhou China Star Optoelectronics
- 63,782 - 63,782
Display Co., Ltd.
Others 910,601 - - 910,601
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(2) Goodwill impairment allowance
Increase in Decrease
current in current
Name of investee December 31, 2024 period period June 30, 2025
Maxeon Solar Technologies, Ltd. 915,394 - - 915,394
Others 31,978 - - 31,978
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Increase in
Amortization
December 31, 2024 current Others June 30, 2025
in the period
period
Improvement expense on
leased fixed assets
Others 1,595,929 1,426,192 (1,018,993) (27,237) 1,975,891
(1) Un-offset deferred income tax assets
June 30, 2025 December 31, 2024
Deductible Deductible
Deferred tax Deferred tax
temporary temporary
assets assets
difference difference
Deductible losses 25,423,751 3,915,482 27,723,181 4,209,631
Asset impairment
allowances
Provisions 3,903,713 609,360 1,618,959 254,359
Changes in fair value 60,338 14,604 56,219 14,055
Lease liabilities 6,665,956 673,426 6,683,424 858,412
Others 7,709,143 1,253,567 5,817,857 945,951
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(2) Un-offset deferred income tax liabilities
June 30, 2025 December 31, 2024
Taxable Taxable Deferred
Deferred tax
temporary temporary income tax
liabilities
differences differences liabilities
Depreciation of fixed assets 25,405,441 4,016,701 25,279,356 3,855,131
Increase in value of assets
as assessed in business
combination not involving 5,100,360 1,109,985 3,145,703 607,855
entities under common
control
Changes in fair value 803,082 191,199 345,981 70,110
Right-of-use assets 6,593,796 732,760 6,697,688 923,022
Others 1,961,318 152,343 2,654,782 318,508
(3) Deferred income tax assets or liabilities presented on a net basis after offsetting
Amount subject to mutual offset of Closing balance of deferred
Item deferred income tax assets against income tax assets or liabilities
liabilities at the end of the period after offset
Deferred income tax assets (4,106,118) 2,787,120
Deferred income tax liabilities (4,106,118) 2,096,870
Amount subject to mutual offset of Beginning balance of deferred
Item deferred income tax assets against income tax assets or liabilities
liabilities at the beginning of the period after offset
Deferred income tax assets (4,230,177) 2,486,427
Deferred income tax liabilities (4,230,177) 1,544,449
(4) Unrecognized deferred income tax assets
June 30, 2025 December 31, 2024
Deductible temporary difference 5,510,842 5,638,299
Deductible losses 24,822,728 26,169,314
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Deductible losses in respect of unrecognized deferred income tax assets will expire in the
(5)
following years
June 30, 2025 December 31, 2024
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
June 30, 2025 December 31, 2024
Impairment Carrying Gross Impairment Carrying
Gross amount allowance amount amount allowance amount
Other non-current - -
assets 23,084,818 23,084,818 17,917,341 17,917,341
Note Other non-current assets mainly include the prepayments for engineering equipment, large-amount fixed-income
certificates of deposit and fixed-term deposits, etc., which are subsequently measured at amortized cost.
June 30, 2025 December 31, 2024
Unsecured borrowings 9,116,706 8,123,337
Borrowings secured by pledge 111,326 54,888
Interests payable 240 15,058
As at June 30, 2025, the Company’s short-term pledged loans were equivalent to RMB 111,326,000, pledged
with held-for-trading financial assets equivalent to RMB 145,404,000.
As of June 30, 2025, the Company does not have any short-term borrowings that have expired and have not
been repaid.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
As of June 30, 2025, the balance of the borrowings of TCL Technology Group Finance Co., Ltd. (a subsidiary
of the Company) from the Central Bank was RMB 1,002,386,000 (December 31, 2024: RMB 600,926,000).
June 30, 2025 December 31, 2024
Customer deposits and deposits from other
banks and financial institutions
Customer deposits and deposits from banks and other financial institutions are the deposits of related and non-
related enterprises absorbed by TCL Technology Group Finance Co., Ltd., a subsidiary of the Company,
within the business scope approved by the regulatory authority.
June 30, 2025 December 31, 2024
Financial liabilities measured at fair value
through current profits and losses
June 30, 2025 December 31, 2024
Derivative financial liabilities 85,376 248,845
June 30, 2025 December 31, 2024
Bank acceptance notes 6,273,165 6,796,785
Trade acceptance notes 462,236 311,057
As of June 30, 2025, the Company had no notes payable that were due but not paid.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
June 30, 2025 December 31, 2024
Amounts due to suppliers 34,590,168 29,347,615
As of June 30, 2025, there were no significant accounts payable aged over one year.
June 30, 2025 December 31, 2024
Advances from customers 737 2,689
As of June 30, 2025, the Company had no significant accounts receivable aged over one year.
June 30, 2025 December 31, 2024
Advances from customers 2,183,855 1,969,271
As at June 30, 2025, the Company had no significant contract liability aged over one year.
(1) Employee compensation payable
June 30, 2025 December 31, 2024
Short-term employee benefits payable 3,761,339 4,131,966
Defined contribution plans payable 10,024 29,005
Dismissal benefits payable 1,942 27,266
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(1) Employee benefits payable (continued)
(a) Short-term employee benefits presented
Increase in Decrease in
December 31, 2024 current period current period June 30, 2025
Wages, bonuses,
allowances, and subsidies
Employee services and
- 252,904 (252,904) -
benefits
Social insurance benefits 28,808 182,598 (183,523) 27,883
Including: medical insurance
premium
Employment
injury insurance 424 11,212 (11,564) 72
premiums
Maternity
insurance
Housing fund 17,824 190,010 (187,459) 20,375
Trade union funds and staff
education funds
Other employee salaries 1,966 25,386 (7,343) 20,009
(b) Defined contribution plans
Increase in Decrease in
December 31, 2024 current period current period June 30, 2025
Basic pension insurance 28,856 405,069 (424,046) 9,879
Unemployment insurance 149 14,889 (14,893) 145
(2) Long-term employee compensation payable
June 30, 2025 December 31, 2024
Supplementary pension insurance 22,113 22,424
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
June 30, 2025 December 31, 2024
Corporate income tax 459,522 468,325
Value-added tax 75,317 160,729
Individual income tax 128,203 35,147
Urban maintenance and construction tax 237,110 203,667
Education surcharges 169,305 145,475
Others 363,561 192,755
June 30, 2025 December 31, 2024
Dividends payable 946,382 13,131
Other payables 18,302,907 20,058,938
(1) Dividends payable
June 30, 2025 December 31, 2024
Other non-controlling interests 946,382 13,131
(2) Other payables
June 30, 2025 December 31, 2024
Payables for engineering equipment 11,755,366 14,150,023
Unpaid expenses 3,052,429 2,796,611
Security and deposits 507,831 581,027
Others 2,987,281 2,531,277
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
June 30, 2025 December 31, 2024
Long-term borrowings due within one year
(Note 1)
Bonds payable due within one year (Note 2) 43 7,347,758 7,868,074
Long-term payables due within one year 2,336,103 1,187,771
Interest payable due within one year 273,358 374,059
Lease liabilities due within one year 44 365,361 348,638
Long-term employee compensation payable due
within one year
Note 1 The interest rates of the Company’s long-term borrowing due within one year ranged from 2.1% to 4.3% in
the current period (2024: from 2.1% to 4.3%).
Note 2 The Company's bonds payable due within one year are mainly as follows:
term of 3 years, the closing balance as at June 30, 2025 was RMB 1,999,974,000.
a term of 3 years, the closing balance as at June 30, 2025 was RMB 1,499,271,000.
June 30, 2025 was RMB 1,499,648,000.
June 30, 2025 December 31, 2024
After-sales service expense (note) 1,272,278 1,255,175
Output tax to be transferred 141,901 120,002
Others 102,898 109,738
Note After-sales service expense expected to occur within 1 year is presented in other current liabilities.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
June 30, 2025 December 31, 2024
Borrowings secured by collateral 29,416,490 41,035,441
Borrowings secured by pledge 3,847,043 3,239,538
Unsecured borrowings 126,503,698 98,975,145
Including: long-term loans due within one year (31,295,515) (26,434,993)
As at June 30, 2025, the long-term borrowings secured by collateral were equivalent to RMB 29,416,490,000
(December 31, 2024: RMB 41,035,441,000), which were secured by the collateral of the land use rights,
houses and buildings, machinery and equipment of about RMB 73,315,173,000 (December 31, 2024: RMB
RMB 381,900,000 (December 31, 2024: RMB 403,810,000).
The interest rates of the Company’s long-term borrowing ranged from 2.1% to 5.7% in the current period
(2024: from 2.1% to 5.7%).
June 30, 2025 December 31, 2024
Corporate bonds 3,492,235 4,989,943
MTN 2,990,459 1,498,677
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(1) Movements in bonds payable
Accrued
Issued in Amortization Repaid
Issued interest Others
Bond name Par value Issue date Maturity December 31,2024 current of premium or in current June 30,2025
amount as per par (note)
period discount period
value
Tech Innovation Notes)
ZQYWKJ2402010102-24TCLK1 1,500,000 January 30, 2024 2 1,500,000 1,499,269 - 14,281 - - (1,499,269) -
ZQYWKJ2404120002-24TCLK2 1,500,000 April 9, 2024 5 1,500,000 1,496,967 - 20,009 669 - 1,497,636
ZQYWKJ2407090002-24TCLK3 1,000,000 July 4, 2024 5 1,000,000 997,754 - 11,356 446 - 998,200
ZQYWKJ2407090003-24TCLK4 1,000,000 July 4, 2024 5 1,000,000 995,953 - 12,199 446 - 996,399
Tech Innovation Notes)
Tech Innovation Notes)
Innovation Bonds)
Total 9,500,000 9,500,000 6,488,620 3,000,000 113,149 (7,980) - (2,997,946) 6,482,694
Note Others are bonds payable within one year which are reclassified to non-current liabilities due within one year and exchange adjustment.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
June 30, 2025 December 31, 2024
Total lease liabilities 6,665,956 6,683,424
Less: Current portion of lease liabilities 365,361 348,638
June 30, 2025 December 31, 2024
Finance lease 1,636,141 1,994,812
Increase in Decrease in
December 31, 2024 June 30, 2025
current period current period
Public grants 1,014,891 4,039,760 (1,987,023) 3,067,628
Items involving public grants
Written off
Recognized
against the Other
December 31,2024 Increase in other June 30,2025
cost of the changes
income
asset/expenses
Public grants
related to 276,006 809,488 (1,650) (236,553) (13,441) 833,850
assets
Public grants
related to 738,885 3,230,272 (924,921) (793,064) (17,394) 2,233,778
income
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
June 30, 2025 December 31, 2024
After-sales service fee of products 164,389 206,991
Pending litigation 48,844 42,227
June 30, 2025 December 31, 2024
Other non-current liabilities 32,333 27,508
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
December 31, 2024 Increase or decrease in current period June 30, 2025
Shares
converted from
Amount Ratio New issues capital reserve Others Subtotal Amount Ratio
I. Restricted shares 679,458 3.62% - - 2,876 2,876 682,334 3.63%
II. Non-restricted
shares
III. Total shares 18,779,081 100% - - - - 18,779,081 100.00%
Except for Chairman of the Board Mr. Li Dongsheng who holds restricted shares subscribed for in a private placement, none of the other incumbent directors,
supervisors, or senior management hold any restricted shares from a split-share structure reform or a private placement. The shares held by these personnel will stay
partially frozen as per the Rules on the Management of Shares Held by the Directors, Supervisors, and Senior Management Officers of the Company and the Changes
thereof. The trading and information disclosure in relation to these shares shall be in strict compliance with the applicable laws, regulations, and rules.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Increase in Decrease in
December 31, 2024 current period current period June 30, 2025
Share capital premium 10,105,906 - (623,557) 9,482,349
Other capital reserves 447,175 168,996 (192,779) 423,392
Increase in Decrease in
December 31, 2024 June 30, 2025
current period current period
Treasury share 919,322 - (215,670) 703,652
The decrease in the year is mainly caused by the non-trading transfer and sale of the employee portion of
the employee stock ownership plan.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(1) Other comprehensive income items, income tax effects and reclassifications to profit or loss
January - June 2025 January - June 2024
I. Items that cannot be reclassified to profit or loss
subsequently
(10,208) 122,166
be reclassified to profit or loss under the equity method
Share of the period (10,166) 122,166
Previous other comprehensive income reclassified to
(42) -
retained earnings for the current period
Current gain/(loss) 7,619 119
Income tax effects recorded in other comprehensive income (753) (273)
II. Items that will be reclassified to profit or loss subsequently
(37,685) 21,228
be reclassified to profit or loss under the equity method
Share of the period (37,685) 21,228
Current gain/(loss) - (13,059)
Previous other comprehensive income reclassified to profit
- 16,073
for current period
Income tax effects recorded in other comprehensive income - (1,137)
(92,875) 29,879
financial statements of overseas operations
- -
through profit or loss
(133,902) 174,996
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(2) Changes in other comprehensive income items
Equity attributable to shareholders of the parent company
Differences Changes
Share of other
arising from caused by re- Other
comprehensive Financial Fair value
Gain/(Loss) translation of measurement comprehensive
Change of income of investees assets changes Non- Total other
on changes in foreign of net income
accounting that will be Gain or loss of other Subtotal controlling comprehensive
cash flow currency- liabilities or transferred to
policies reclassified to profit on fair-value equity interests income
hedges denominated net assets of retained
or loss under the changes instruments
financial defined earnings
equity method
statements benefit plans
December 31, 2023 334,950 24,965 (350,569) 28,743 (660,890) (216,409) - (106,588) (945,798) 20,996 (924,802)
Movement of 2024 - 300,954 - (14,569) (80,651) 5,931 (200) (6,126) 205,339 (22,646) 182,693
December 31, 2024 334,950 325,919 (350,569) 14,174 (741,541) (210,478) (200) (112,714) (740,459) (1,650) (742,109)
Movement from January to
- (47,852) - - (42,324) 6,866 - (42) (83,352) (50,550) (133,902)
June 2025
June 30, 2025 334,950 278,067 (350,569) 14,174 (783,865) (203,612) (200) (112,756) (823,811) (52,200) (876,011)
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Increase in Decrease in
December 31, 2024 current period current period June 30, 2025
Statutory surplus reserves 3,791,516 - - 3,791,516
Discretionary surplus
reserves
Appropriation in Decrease in
December 31, 2024 June 30, 2025
current period current period
Production safety
reserve
Appropriation in Decrease in
December 31, 2024 current period current period June 30, 2025
General risk reserve 8,934 - - 8,934
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
January - June 2025 January - June 2024
Retained earnings at the beginning of the year 21,504,719 21,537,188
Change of accounting policies - -
Net profits for current period 1,883,500 995,213
Decrease in current period (938,912) (1,502,326)
Including: Appropriation of surplus reserves - -
Distributed to ordinary shareholders as dividends (938,954) (1,502,326)
Others 42 -
Retained earnings at the end of the period 22,449,307 21,030,075
January - June 2025 January - June 2024
Operating Operating Operating
Operating cost
revenue cost revenue
Core business 82,687,265 71,815,128 77,594,877 68,551,088
Non-core business 2,872,739 2,267,710 2,628,860 2,091,470
(1) Business by operating segment
Operating revenue Operating cost Gross profit
January - June January - June January - June January - June January - June January - June
Domestic
sales
Foreign
sales
(2) The total revenue from the sales to the top five customers was RMB 28,582,114,000 and RMB
and 33.7% of the revenue.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(3) Revenue and costs generated from the Company's trial sales are as follows:
January - June 2025 January - June 2024
Operating revenue 1,705,918 255,217
Operating cost 1,422,185 225,302
January - June 2025 January - June 2024
Interest income 101,622 79,672
Interest expenditures 7,789 14,885
Exchange gain/(loss) 207 (116)
The interest income, interest expense and exchange gain/(loss) above occurred with the Company's
subsidiary TCL Technology Group Finance Co., Ltd., which are presented separately herein as
required for a financial enterprise.
January - June 2025 January - June 2024
Property tax 263,577 190,296
Stamp tax 96,737 94,293
Urban maintenance and construction tax 108,427 110,639
Education surcharges 79,276 68,213
Land use tax 36,926 15,703
Others 13,201 20,984
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
January - June 2025 January - June 2024
Employee salaries and benefits 639,773 415,185
Promotional and marketing expenses 156,472 109,593
Others 367,720 352,619
January - June 2025 January - June 2024
Employee salaries and benefits 1,184,868 945,366
Depreciation and amortization expenses 468,934 389,201
Expenses for hiring intermediaries 150,691 260,367
Others 396,066 408,902
January - June 2025 January - June 2024
Depreciation and amortization expenses 2,185,468 2,359,818
Material expenses 626,942 555,016
Employee salaries and benefits 1,423,147 1,140,394
Others 506,322 346,339
January - June 2025 January - June 2024
Interest expenditures 2,555,367 2,472,976
Interest income (353,536) (381,577)
Exchange loss/(gain) (120,413) (127,718)
Others 59,864 127,594
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
January - June 2025 January - June 2024
R&D subsidies 743,047 217,272
VAT rebates on software 17,519 17,952
Over-deduction in taxable amount for VAT 259,376 586,905
Others 218,560 313,264
January - June 2025 January - June 2024
Revenue from long-term equity investment
accounted for using the equity method
Net income from disposal of long-term equity
(50,647) 36,917
investments
Return on holding of held-for-trading financial
assets
Return on disposal of held-for-trading financial
assets
Others 138,701 73,022
January - June 2025 January - June 2024
Held-for-trading financial assets 285,102 47,309
Held-for-trading financial liabilities (5,138) (5,672)
Derivative financial instruments 189,924 91,309
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
January - June 2025 January - June 2024
Loss on uncollectible accounts receivable (6,362) (8,589)
Loss on uncollectible other receivables (7,257) (2,279)
Other financial assets (11,772) 3,599
(25,391) (7,269)
January - June 2025 January - June 2024
Inventory valuation loss (2,793,810) (1,998,171)
Loss on impairment of fixed assets (87) (56,770)
Others (5,047) (4,707)
(2,798,944) (2,059,648)
January - June 2025 January - June 2024
Income/(loss) from disposal of fixed assets (763) 17,926
Income/(loss) from disposal of intangible assets (3,321) 21,683
Others 1,065 331
(3,019) 39,940
Amount through current
January - June 2025 January - June 2024 non-recurring gains and
losses
Gains on retired or damaged
non-current assets
Revenue from liquidated
damages and others
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Amount through current
non-recurring gains and
January - June 2025 January - June 2024 losses
Losses on retired or
damaged non-current assets
Donation 17,415 23,741 17,415
Others 99,133 25,196 99,133
(1) Table of income tax expenses
January - June 2025 January - June 2024
Current income tax expense 665,481 350,489
Deferred income tax expense (349,587) (298,277)
(2) Accounting profit and income tax adjustment process
January - June 2025 January - June 2024
Gross profit 347,577 (415,937)
Income tax expense calculated at
statutory/applicable tax rate
Impact of different tax rates applied to subsidiaries 500,690 437,578
Impact of adjusting income tax in previous periods (66,236) 77,334
Impact of non-taxable income (1,036,609) (751,090)
Impact of non-deductible costs, expenses, and
losses
Impact of the use of deductible losses carried
forward without recognizing deferred income tax 116,387 29,348
assets in the previous periods
Impact of unrecognized deferred income tax assets
of deductible temporary differences or deductible 752,156 368,522
losses in the current period
Others (39,024) (106,051)
Income tax expense 315,894 52,212
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(1) Basic earnings per share
January - June 2025 January - June 2024
Net profits attributable to shareholders of the parent company 1,883,500 995,213
Weighted average outstanding ordinary shares (in thousand shares) 18,573,423 18,588,572
Basic earnings per share (RMB yuan) 0.1014 0.0535
(2) Diluted earnings per share
January - June 2025 January - June 2024
Net profits attributable to shareholders of the parent company 1,883,500 995,213
Diluted weighted average outstanding ordinary shares (in
thousand shares)
Diluted earnings per share (RMB yuan) 0.1003 0.0530
Other cash received from operating activities in the consolidated cash flow statement was RMB 8,523,407,000
(year-on-year: RMB 3,396,202,000), which primarily consisted of current payments received, public grants, etc.
Other cash paid for other operating activities in the consolidated cash flow statement was RMB 8,827,613,000
(year-on-year: RMB 5,334,029,000), which primarily consisted of various expenses and current payments, etc.
Other cash received from investing activities in the consolidated cash flow statement was RMB 182,916,000
(year-on-year: RMB 352,014,000), which primarily consisted of receipts from current accounts and proceeds
from the maturity of time deposits.
Other cash paid for investing activities in the consolidated cash flow statement was RMB 464,253,000 (year-on-
year: RMB 563,835,000), which primarily consisted of the payments for foreign exchange forward delivery, time
deposits, etc.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
Other cash received from financing activities in the consolidated cash flow statement was RMB 544,843,000
(year-on-year: RMB 422,120,000), which primarily consisted of the payment for sales of treasury shares,
receipt of finance leasing payments, etc.
Other cash paid for financing activities in the consolidated cash flow statement was RMB 9,101,549,000
(year-on-year: RMB 1,930,490,000), primarily consisting of the payments for the repurchase of minority
interests, financial lease payments, etc.
(1) Reconciliation of net profits to net cash generated from/used in operating activities
January - June 2025 January - June 2024
Net profits 31,683 (468,149)
Add: Asset impairment allowance 2,824,335 2,066,917
Depreciation of fixed assets 13,375,276 12,514,781
Depreciation of right-of-use assets 255,297 238,081
Amortization of intangible assets 1,397,225 1,041,749
Amortization of long-term deferred expenses 1,054,605 1,303,364
Loss/(Gain) on disposal of fixed assets, intangible assets, and
other long-term assets
Loss/(Gain) on retired or damaged fixed assets 3,235 29,197
Loss/(Gain) on changes in fair value (469,888) (132,946)
Financial expenses 2,442,536 2,360,259
Return on investment (831,296) (421,758)
Decrease/(Increase) in deferred income tax assets (271,016) (126,228)
Increase/(Decrease) in deferred income tax liabilities 465,418 (170,047)
Decrease/(Increase) in inventory (5,379,161) (3,698,344)
Decrease/(Increase) in operating receivables 8,496,334 477,841
Increase/(Decrease) in operating payables 3,717,544 (2,605,556)
Others 158,837 263,501
Net cash generated from operating activities 27,273,983 12,632,722
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(2) Net cash payments for acquisition of subsidiaries in the current period
January - June 2025 January - June 2024
Payments of cash and cash equivalents made in current period due
to business combinations incurred in current period
Less: cash and cash equivalents held by subsidiary on acquisition
date
Add: Payments of cash and cash equivalents made in the current
- -
period due to business combinations incurred in previous periods
Net cash payments for acquisition of subsidiaries 6,104,583 4,284
(3) Breakdown of cash and cash equivalents
June 30, 2025 December 31, 2024
I. Cash 26,556,661 20,861,255
Including: Cash on hand 497 482
Bank deposits available for payment on demand 26,267,546 20,524,146
Other monetary assets are available for payment on
demand
Deposits with the central bank available for payment 6,387 6,354
II. Cash equivalents - -
III. Ending balance of cash and cash equivalents 26,556,661 20,861,255
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(4) Description of other major activities
Major operation or investment activities in no connection with cash receipts and payments:
January - June 2025 January - June 2024
Payment for procurement of inventory by bank acceptance
bills
Payment for procurement of long-term assets by bank
acceptance bills 1,154,167 2,538,897
January - June 2025 January - June 2024
Ending balance of cash and cash equivalents 26,556,661 17,923,548
Less: Cash at the beginning of the year 20,861,255 19,996,815
Net increase in cash and cash equivalents 5,695,406 (2,073,267)
Analysis of ending balance and cash equivalents:
Monetary assets at the end of the period 28,544,343 19,587,500
Less: Non-cash equivalents at the end of the period (note) 1,987,682 1,663,952
Ending balance of cash and cash equivalents 26,556,661 17,923,548
Note: The ending non-cash equivalents primarily included interest receivable on bank deposits, the statutory
reserve deposits placed by TCL Technology Group Finance Co., Ltd. in the central bank, and other monetary
assets, detailed in Note V. 1.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
June 30, 2025 Reason for restriction
Gross carrying Carrying
amount amount
Deposited in the central
Monetary assets 255,241 255,241 bank as the required
reserve
Other monetary assets
Monetary assets 1,732,441 1,732,441 and restricted bank
deposits
Fixed assets 143,644,455 92,590,825 As collateral for loan
Intangible assets 4,972,674 4,106,262 As collateral for loan
Held-for-trading financial assets 145,404 145,404 In pledge
Construction in progress 914,637 914,637 As collateral for loan
Accounts receivable 956,989 945,420 In pledge
Contract assets 143,762 133,185 In pledge
Note: In the current period, the subsidiary Wuhan China Star Optoelectronics Bandaoti Display Technology
Co., Ltd. prepaid bank loans amounting to RMB 2,438,000,000. The pledged fixed assets of RMB
June 30, 2025
Foreign currency
Conversion rate RMB balance
balance
Monetary assets
Including: USD 1,149,873 7.1586 8,231,481
HKD 66,848 0.9119 60,959
INR 1,737,284 0.0837 145,411
EUR 14,351 8.3899 120,403
PLN 47 1.9786 93
JPY 879,022 0.0496 43,599
KRW 950,394 0.0053 5,016
SGD 966 5.6159 5,425
MXN 33,896 0.3803 12,891
VND 18,270,172 0.0003 5,015
CAD 2 5.2272 10
PHP 89,034 0.1269 11,298
THB 19 0.2200 4
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
June 30, 2025
Foreign currency
Conversion rate RMB balance
balance
Accounts receivable
Including: USD 1,453,550 7.1586 10,405,383
HKD 2,971 0.9119 2,709
INR 12,497,711 0.0837 1,046,058
EUR 34,263 8.3899 287,463
JPY 40,360 0.0496 2,002
VND 11,496,309 0.0003 3,156
Accounts payable
Including: USD 668,955 7.1586 4,788,781
HKD 267,897 0.9119 244,295
INR 2,782,322 0.0837 232,880
EUR 3,012 8.3899 25,270
PLN 10 1.9786 20
JPY 17,092,217 0.0496 847,774
AUD 17 4.6767 80
VND 116,561,779 0.0003 31,996
Other receivables
Including: USD 75,244 7.1586 538,642
HKD 9,667 0.9119 8,815
INR 92,197 0.0837 7,717
EUR 2,332 8.3899 19,565
PLN 950 1.9786 1,880
JPY 27,697 0.0496 1,374
KRW 99,165 0.0053 523
SGD 98 5.6159 550
MXN 20,859 0.3803 7,933
VND 7,706,360 0.0003 2,115
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
June 30, 2025
Foreign currency
Conversion rate RMB balance
balance
Other payables
Including: USD 503,988 7.1586 3,607,848
HKD 69,525 0.9119 63,400
INR 1,300,398 0.0837 108,843
EUR 281 8.3899 2,358
PLN 464 1.9786 918
JPY 14,367,167 0.0496 712,611
KRW 692,706 0.0053 3,656
SGD 152 5.6159 854
MXN 26,326 0.3803 10,012
TWD 17 0.2461 4
AUD 11 4.6767 51
VND 92,431,003 0.0003 25,372
Short-term borrowings
Including: USD 215,552 7.1586 1,543,051
PHP 97,500 0.1269 12,373
(1) The Company acting as a lessee
From January to June 2025, short-term lease rents, low-value asset rents and income obtained from
subleasing right-of-use assets, for which the Group, acting as a lessee, chose simplified accounting,
were not significant.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(2) The Company acting as a lessor
① Operating leases where the Company acts as a lessor
Including: Income related to
Item Rental income variable lease payments not
included in lease receipts
Houses and buildings 121,230 -
Machinery equipment 3,646 -
Others 354 -
Total 125,230 -
② Finance leases where the Company acts as a lessor
Income related to variable
Financing
Item Sales gains and losses lease payments not included
income
in net lease investment
Finance lease - 12,767 -
Total - 12,767 -
Annual undiscounted lease receipts for the next five years
Annual undiscounted lease receipts
Item June 30, 2025 December 31, 2024
Year 1 210,491 209,266
Year 2 182,892 182,692
Year 3 165,097 167,400
Year 4 157,732 154,531
Year 5 156,389 155,548
Total undiscounted lease receipts
after five years
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
VI R&D expenses
Item January - June 2025 January - June 2024
Material costs 1,260,357 1,120,205
Labor costs 1,611,007 1,356,702
Depreciations and amortizations 1,045,187 1,229,349
Others 612,095 559,602
Total 4,528,646 4,265,858
Including: Expensed R&D expenses 3,339,314 2,868,939
Capitalized R&D expenses 1,189,332 1,396,919
Increase in current
Decrease in current period
Beginning period Ending
Item
balance Internal development Recognized as Included in profits balance
Others Others
expenditures intangible assets and losses
Display 1,165,388 1,085,311 - - (112,228) (996,410) 1,142,061
New
energy
photovolt
aics and 666,056 104,021 - (142,664) - - 627,413
other
silicon
materials
Total 1,831,444 1,189,332 - (142,664) (112,228) (996,410) 1,769,474
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
VII Changes to the Consolidation Scope
(1) Acquisition of equity of Guangzhou China Star Optoelectronics Display Co., Ltd.
As at April 1, 2025 (the "Acquisition Date"), the Group acquired 100% equity of Guangzhou
China Star Optoelectronics Display Co., Ltd. at a cash consideration of RMB 698,900,000, and
included such company into the scope of consolidation.
Cash consideration 698,900
Less: Share of fair value of identifiable net assets acquired 635,118
Goodwill amount 63,782
Fair value as at the Carrying amount as
acquisition date at the acquisition date
Total assets 7,584,667 7,233,438
Total liabilities 6,949,549 6,949,549
Net assets 635,118 283,889
Less: non-controlling interests - -
Net assets acquired 635,118 283,889
(2) Acquisition of equity of Guangzhou China Star Optoelectronics Technology Co., Ltd.
As at April 1, 2025 (the "Acquisition Date"), the Group acquired 100% equity of Guangzhou
China Star Optoelectronics Technology Co., Ltd. at a cash consideration of RMB 13,003,810,000,
and included such company into the scope of consolidation.
Cash consideration 13,003,808
Less: Share of fair value of identifiable net assets acquired 12,176,264
Goodwill amount 827,544
Fair value as at Carrying amount as
the acquisition at the acquisition
date date
Total assets 13,780,610 11,368,495
Total liabilities 1,604,346 1,604,346
Net assets 12,176,264 9,764,149
Less: non-controlling interests - -
Net assets acquired 12,176,264 9,764,149
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
VII Changes to Consolidation Scope (continued)
Hohhot Shuguang New Energy Shanxi Province Loufan County
Name of subsidiary
Co., Ltd. Huanshuo New Energy Co., Ltd.
Price for equity interest disposal - -
% equity interest disposed 100% 100%
Way of equity disposal Sale Sale
Time of loss of control June 30, 2025 June 30, 2025
Determination basis for time of loss The operating risk has been
The operating risk has been transferred
of control transferred
Difference between the disposal price
and the Company’s share of the
subsidiary’s net assets in the
(12,000) 25
consolidated financial statements
relevant to the disposed equity
interest
Xuzhou Huanneng New Energy Tianjin Binhai Huanxu New Energy
Name of subsidiary
Co., Ltd. Co., Ltd.
Price for equity interest disposal - -
% equity interest disposed 100% 100%
Way of equity disposal Sale Sale
Time of loss of control June 30, 2025 June 30, 2025
Determination basis for time of loss The operating risk has been
The operating risk has been transferred
of control transferred
Difference between the disposal price
and the Company’s share of the
subsidiary’s net assets in the
(2,077) (1,774)
consolidated financial statements
relevant to the disposed equity
interest
Heilongjiang Huanju New Energy Co.,
Name of subsidiary
Ltd.
Price for equity interest disposal -
% equity interest disposed 100%
Way of equity disposal Sale
Time of loss of control June 30, 2025
Determination basis for time of loss of control The operating risk has been transferred
Difference between the disposal price and the Company’s share of the
subsidiary’s net assets in the consolidated financial statements relevant to the (661)
disposed equity interest
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
VII Changes to Consolidation Scope (continued)
Name of investee Reason for change
Zhengzhou Shangzhao Electronic Technology Co., Ltd. Newly established
Chongqing Sunpiestore Technology Co., Ltd. Newly established
Chongqing Shangpai Zhengcheng Technology Co., Ltd. Newly established
Guizhou Shangpai Zhengcheng Technology Co., Ltd. Newly established
Urumqi Shangpai Lingchuang Trading Development Co., Ltd. Newly established
Anyang Shangyi Technology Co., Ltd. Newly established
Chongqing Shangpai Zhengyan Technology Co., Ltd. Newly established
Changji Shangpai Yifan Trading Co., Ltd. Newly established
Urumqi Shangpai Zhuoyao Trading Development Co., Ltd. Newly established
Shake Kawo (Xi'an) Technology Co., Ltd. Newly established
Xi'an Shengkai Shangpai Technology Co., Ltd. Newly established
Luoyang Shangyi Electronic Technology Co., Ltd. Newly established
Zhengzhou Shangfeng Electronic Technology Co., Ltd. Newly established
Xi'an Shake Jisu Technology Co., Ltd. Newly established
Luoyang Shangxuan Electronic Technology Co., Ltd. Newly established
Xi'an Shengfeng Shangpai Technology Co., Ltd. Newly established
Chongqing Shangpai Zhengqi Technology Co., Ltd. Newly established
Chongqing Shangpai Zhengfu Technology Co., Ltd. Newly established
Chongqing Shangpai Zhengxin Technology Co., Ltd. Newly established
Chongqing Shangpai Zhenghong Technology Co., Ltd. Newly established
Chongqing Shangpai Zhengrong Technology Co., Ltd. Newly established
Luoyang Shangwu Electronic Technology Co., Ltd. Newly established
Zhengzhou TiTi Yunchuang Technology Co., Ltd. Newly established
Shenzhen Pulin Gaote Circuit Co., Ltd. Acquisition
Maoxing Holdings Limited Capital increase for controlling interest
TCL International Marketing Limited (BVI) De-registered
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
VIII Interests in Other Entities
(1) Principal subsidiaries
Shareholding How
Place of Nature of Principal place
Name of investee percentage subsidiary was
registration business of business
Direct Indirect obtained
TCL China Star Optoelectronics Technology Manufacturing
Shenzhen Shenzhen 82.21% - Incorporated
Co., Ltd. and sales
Shenzhen China Star Optoelectronics Bandaoti Manufacturing
Shenzhen Shenzhen - 62.68% Incorporated
Display Technology Co., Ltd. and sales
Guangzhou China Ray Optoelectronic Materials Research and
Guangzhou Guangzhou - 100.00% Incorporated
Co., Ltd. development
Wuhan China Star Optoelectronics Technology Manufacturing
Wuhan Wuhan - 98.22% Incorporated
Co., Ltd. and sales
Wuhan China Star Optoelectronics Bandaoti Manufacturing
Wuhan Wuhan - 62.38% Incorporated
Display Technology Co., Ltd. and sales
China Star Optoelectronics International (HK)
Hong Kong Sales Hong Kong - 100.00% Incorporated
Limited
Business
China Display Optoelectronics Technology Investment combination not
Bermuda Bermuda - 64.20%
Holdings Limited holding under common
control
China Display Optoelectronics Technology Manufacturing
Huizhou Huizhou - 100.00% Incorporated
(Huizhou) Co., Ltd. and sales
Wuhan China Display Optoelectronics Manufacturing
Wuhan Wuhan - 100.00% Incorporated
Technology Co., Ltd. and sales
Business
Suzhou China Star Optoelectronics Technology Manufacturing combination not
Suzhou Suzhou - 100.00%
Co., Ltd. and sales under common
control
Business
Suzhou China Star Optoelectronics Display Co., Manufacturing combination not
Suzhou Suzhou - 100.00%
Ltd. and sales under common
control
Guangzhou China Star Optoelectronics Manufacturing
Guangzhou Guangzhou - 55.00% Incorporated
Bandaoti Display Technology Co., Ltd. and sales
Business
Guangzhou China Star Optoelectronics Display Manufacturing combination not
Guangzhou Guangzhou 100.00%
Co., Ltd. and sales under common
control
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
VIII Interests in Other Entities (Continued)
(1) Composition of key subsidiaries (Continued)
Principal Shareholding How
Place of Nature of
Name of investee place of percentage subsidiary was
registration business
business Direct Indirect obtained
Business
Guangzhou China Star Optoelectronics Manufacturing combination not
Guangzhou Guangzhou 100.00%
Technology Co., Ltd. and sales under common
control
Highly Information Industry Co., Ltd. Product - Incorporated
Beijing Beijing 66.46%
distribution
Beijing Sunpiestore Technology Co., Ltd. Beijing Sales Beijing - 53.45% Incorporated
Beijing Lingyun Data Technology Co., Ltd. Beijing Sales Beijing - 60.00% Incorporated
TCL Technology Group Finance Co., Ltd. Huizhou Financial Huizhou 82.00% 18.00% Incorporated
Shenzhen Dongxi Jiashang Investment Incorporated
Shenzhen Shenzhen 100.00% -
Entrepreneurship Investment Co., Ltd. business
Ningbo TCL Equity Investment Ltd. Investment Incorporated
Ningbo Shenzhen 100.00% -
business
TCL Technology Park (Huizhou) Co., Ltd. Property Incorporated
Huizhou Huizhou - 100.00%
management
TCL Technology Investments Limited Investment Incorporated
Hong Kong Hong Kong 100.00% -
business
Business
TCL Zhonghuan Renewable Energy Manufacturing combination not
Tianjin Tianjin 2.55% 27.36%
Technology Co., Ltd. and sales under common
control
Business
Tianjin Printronics Circuit Corporation Manufacturing combination not
Tianjin Tianjin - 29.50%
and sales under common
control
Business
Inner Mongolia Zhonghuan Crystal Inner Manufacturing combination not
Inner Mongolia - 83.96%
Materials Co., Ltd. Mongolia and sales under common
control
Business
Ningxia Zhonghuan Solar Material Co., Ningxia Hui Ningxia Hui
Manufacturing combination not
Autonomous Autonomous - 100.00%
Ltd. and sales under common
Region Region
control
Business
Tianjin Huan'ou Bandaoti Manufacturing combination not
Tianjin Tianjin - 100.00%
Material&Technology Co., Ltd. and sales under common
control
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
VIII Interests in Other Entities (Continued)
(1) Composition of key subsidiaries (Continued)
Principal Shareholding
Place of How subsidiary was
Name of investee Nature of business place of percentage
registration obtained
business Direct Indirect
Wuxi Zhonghuan Applied Business combination
Manufacturing and
Jiangsu Jiangsu - 98.08% not under common
Materials Co., Ltd. sales
control
Inner Mongolia Zhonghuan Solar Business combination
Inner Manufacturing and Inner
- 100.00% not under common
Material Co., Ltd. Mongolia sales Mongolia
control
Business combination
Tianjin Huanou International
Tianjin Sales Tianjin - 100.00% not under common
Silicon Material Co., Ltd.
control
Business combination
Zhonghuan Hong Kong Holding
Hong Kong Import and export Hong Kong - 100.00% not under common
Limited
control
Business combination
Zhonghuan Advanced Bandaoti Manufacturing and
Jiangsu Jiangsu 7.35% 35.30% not under common
Technology Co., Ltd. sales
control
Business combination
Huansheng Solar (Jiangsu) Co., Manufacturing and
Jiangsu Jiangsu - 100.00% not under common
Ltd. sales
control
Business combination
Huansheng New Energy (Jiangsu) Manufacturing and
Jiangsu Jiangsu - 95.74% not under common
Co., Ltd. sales
control
Business combination
Huansheng New Energy (Tianjin) Manufacturing and
Tianjin Tianjin - 87.33% not under common
Co., Ltd. sales
control
Power generation, Business combination
Tianjin Zhonghuan New Energy power transmission,
Tianjin Tianjin - 100.00% not under common
Co., Ltd. power supply
control
(distribution)
Business combination
Tianjin Huanrui Electronic
Tianjin Purchase Tianjin - 100.00% not under common
Technology Co., Ltd.
control
Business combination
Moka International Limited BVI Investment holding BVI - 100.00% not under common
control
Business combination
Moka Technology (Guangdong) Manufacturing and
Huizhou Huizhou - 100.00% not under common
Co., Ltd. sales
control
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
VIII Interests in Other Entities (Continued)
(2) Subsidiaries with substantial non-controlling interests
Profit or loss
Dividends distributed Balance of
Shareholding ratio attributable to
to minority minority interests
Name of subsidiary of minority minority
shareholders in current at the end of the
shareholders shareholders in
period period
current period
TCL China Star
Optoelectronics Technology 17.79% 1,684,010 - 41,348,425
Co., Ltd.
TCL Zhonghuan Renewable
Energy Technology Co., Ltd.
Highly Information Industry
Co., Ltd.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
VIIIInterests in Other Entities (Continued)
(2) Subsidiaries with substantial non-controlling interests (continued)
The key financial information of the above subsidiaries is as follows:
June 30, 2025 December 31, 2024
Current Non-current Current Non-current Total Current Non-current Total Current Non-current Total
Total assets
assets assets liabilities liabilities liabilities assets assets assets liabilities liabilities liabilities
TCL China
Star
Optoelectron
ics
Technology
Co., Ltd.
TCL
Zhonghuan
Renewable
Energy
Technology
Co., Ltd.
Highly
Information
Industry Co.,
Ltd.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
VIIIInterests in Other Entities (Continued)
(2) Subsidiaries with substantial non-controlling interests (continued)
The key financial information of the above subsidiaries is as follows:
January - June 2025 January - June 2024
Total Net cash generate Total Net cash generate
Operating Operating
Net profits comprehensive from/used in Net profits comprehensive from/used in
revenue revenue
income operating activities income operating activities
TCL China Star
Optoelectronics
Technology Co.,
Ltd.
TCL Zhonghuan
Renewable Energy 13,398,123 (4,836,171) (4,890,135) 523,174 16,213,493 (3,175,764) (3,175,713) 128,102
Technology Co., Ltd.
Highly Information
Industry Co., Ltd.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
VII Interests in Other Entities (Continued)
I
(1) Basic information about principal joint ventures and associates
Shareholding
Principal place percentage
Strategic to the
of
Name of investee Nature of business Group’s activities or
business/place
not Direct Indirect
of registration
Associate
Bank of Shanghai Co.,
Shanghai Financial Yes 5.76% -
Ltd.
Note: As of the date of issuance of this Report, Bank of Shanghai Co., Ltd. has not announced
information on its H1 2025 report.
(2) The Company had no significant joint ventures in the Reporting Period.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
IX Risks Related to Financial Instruments
The purpose of the Company’s risk management is to achieve a right balance between the risk and the
benefit and maximally reduce the adverse impact of financial risks on the Company’s financial
performance. Based on such purpose, the Company has established various risk management policies to
recognize and analyze possible risks to be encountered by the Company, set an appropriate risk acceptable
level and design corresponding internal control procedures so as to control the Company’s risk level. In
addition, the Company will regularly review these risk management policies and relevant internal control
systems in order to adapt to the market or handle various changes in the Company’s operating activities.
Meanwhile, the Company’s internal audit department will also regularly or randomly check whether the
implementation of internal control system conforms to relevant risk management policies. In fact, the
Company has applied proper diversified investment and business portfolio to disperse various financial
instrument risks and worked out corresponding risk management policies to reduce the risk of concentrating
on one single industry, specific region or specific counterpart.
The main risks arising from the Company's financial instruments are credit risk, liquidity risk, and market
risk (mainly foreign exchange risk and interest rate risk).
(1) Credit risk
Credit risk refers to the risk of financial loss caused by any party of financial instruments to another party
due to the failure in fulfilling performance obligations. The Group controls the credit risk based on the
specific group classification, and credit risk mainly results from bank deposits, due from the central bank,
notes receivable, accounts receivable, loans and advances to customers and other receivables.
The Group’s bank deposits and due from the central bank are mainly deposited in stated-owned banks and
other large and medium-sized listed banks. The Group considers no significant credit risk to exist, and no
significant loss to be caused by the counterpart’s breach of contract.
For notes receivable, accounts receivable, loans and advances to customers, and other receivables, the
Group has established relevant policies to control the credit risk exposure, and will evaluate the client’s
credit qualification and determine the corresponding credit period based on the client’s financial status, the
possibility of obtaining guarantees from the third party, relevant credit records and other factors (like the
current market situation). In the meantime, the Group will regularly monitor the client's credit records. For
any client with unfavorable credit records, the Group will issue written reminders, shorten the credit period
or cancel the credit period so as to keep the Group's overall credit risk controllable.
As of June 30, 2025, no significant guarantee or other credit enhancements held due to the debtor mortgage
was found in the Group.
(2) Liquidity risk
Liquidity risk refers to the risk of capital shortage the Company encounters when the Company is fulfilling
the obligation of settlement in the form of cash or other financial assets. Various subsidiaries under the
Group shall be responsible for predicting their own cash flow. The financial department of the headquarters
shall firstly summarize predictions on the cash flow of various subsidiaries and then continuously monitor
the short-term and long-term fund demand at the Group's level so as to maintain sufficient cash reserves and
negotiable securities that can be realized at any time; meanwhile, special efforts shall also be made to
continuously monitor whether provisions stated in the loan agreement are observed and to make major
financial institutions promise to provide sufficient reserve funds so as to satisfy short-term and long-term
capital demand.
As of June 30, 2025, the Group had no liquidity risk events.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
IX Risks Related to Financial Instruments (Continued)
(3) Market risk
(a) Foreign exchange risk
The Group has carried out various economic activities around the world, including manufacturing, selling,
investment, financing etc., and corresponding interest rate fluctuation risks exist in the Group’s foreign
currency assets and liabilities and future foreign currency transactions.
The Group always regards "Locking the Cost and Avoiding Possible Risks" as the foreign currency risk
management goal. Through the natural hedging of settlement currency, matching with the foreign currency
liabilities, signing simple derivative products closely related to the owner's operation and meeting
corresponding hedge accounting treatment requirements and applying other management methods, the
foreign currency risk exposure can be controlled within a reasonable scope and the impact of interest rate
fluctuations on the Group's overall profit and loss will be reduced.
(a) As at June 30, 2025, foreign-currency asset and liability items with significant exposure to exchange risk
were mainly denominated in US dollars. After management, the total risk exposure of the US dollar-
denominated items had a net asset exposure of USD 712,668,000, equivalent to RMB 5,101,706,000 based
on the spot exchange rate on the balance sheet date. The differences arising from the translation of foreign
currency financial statements were not included.
The Group applies the following exchange rate of USD against RMB:
Average exchange Exchange rate at
rate period-end
January - June 2025 June 30, 2025
USD/RMB 7.1778 7.1586
Provided that other risk variables remained unchanged except for the exchange rate, a 5%
depreciation/appreciation in RMB as a result of the changes in the exchange rate of RMB against USD
would cause an increase/decrease of RMB 255,085,000 in shareholders' equity and net profit, respectively
of the Group on June 30, 2025.
The above-mentioned sensitivity analysis is made based on the assumption that the exchange rate changes
on the balance sheet date, and the financial instruments held by the Group on the balance sheet date
exposed to the exchange risk are recalculated based on the changed exchange rate. The above analysis does
not include differences arising from the translation of foreign currency financial statements.
(b) Interest risk
The Group's interest rate risk mainly results from interest-bearing bank borrowings adopting floating
interest rates, and the Group determined the proportion of fixed interest rates and floating interest rates
based on the market environment and its risk tolerance. By June 30, 2025, the Group's liabilities with
floating interest rates accounted for 78.89% of its total interest-bearing liabilities. And the Group will
continuously monitor the interest rates and make corresponding adjustments according to the specific
market changes so as to avoid interest rate risk.
(4) Offset of financial assets and financial liabilities
As at the end of the reporting period, the amount offset between the financial assets and financial liabilities
recognized under executable master netting arrangements or similar agreements was RMB 4,283,269,000.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
X Classification of Financial Instruments and Fair Value
Fair value of financial instruments and levels
Level 1 refers to the (unadjusted) quotation of the same type of assets or liabilities on the active
market; and the Company mainly adopts the closing price as the value of a financial asset. Financial
instruments of level 1 mainly include exchange-listed stocks and bonds.
Level 2 refers to the directly or indirectly observable input of a financial asset or liability that does
not belong to level 1.
Level 3 refers to the input of a financial asset or liability determined based on variables other than
the observable market data (non-observable input).
The Company adopts the active market quotation as the fair value of a level 1 financial asset.
Items measured at continuous level 2 fair value adopt the following valuation techniques and
parameters:
Derivative financial assets and liabilities are multiple IRS and CCS signed between the Group and
financial institutions. The Company adopts the quotations provided by the financial institution in
valuation.
Items measured at continuous level 3 fair value adopt the following valuation techniques and
parameters (nature and quantity)
Other non-current financial assets measured at continuous level 3 fair value are mainly unlisted
equity investments held by the Company. In measuring the fair value, the Company mainly adopts
the valuation technique of comparison with listed companies, taking into account the price of
similar securities and liquidity discount.
Held-for-trading financial assets measured at continuous level 3 fair value are mainly wealth
management products held by the Company. In the valuation of the fair value, the Company adopts
the method of discounting future cash flows based on the agreed expected yield rate.
The Company’s receivables financing was bank acceptance notes and trade acceptance notes, of
which the market prices were determined based on the transfer or discounted amounts.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
X Classification of Financial Instruments and Fair Value (Continued)
Financial assets
Item Level 1 Level 2 Level 3 Total
Held-for-trading financial assets (see Note
V. 2)
Derivative financial assets (see Note V. 3) - 168,726 - 168,726
Receivables financing (see Note V. 6) - - 3,959,626 3,959,626
Investments in other equity instruments
(see Note V. 16) 20,326 - 393,991 414,317
Other non-current financial assets (see
Note V. 17) 399,029 187,520 1,987,422 2,573,971
Total assets continuously measured at fair
value
Financial liabilities
Item Level 1 Level 2 Level 3 Total
Held-for-trading financial liabilities
(see Note V. 31) - 7,497 234,600 242,097
Derivative financial liabilities (see
Note V. 32) - 85,376 - 85,376
Others - - 201,469 201,469
Total liabilities continuously measured
at fair value - 92,873 436,069 528,942
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions
Explanation of The Company’s Absence of Controlling 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, holding 1,266,680,807 shares in total and becoming the largest
shareholder of the Company.
As per Article 216 of the Company Law, a controlling shareholder refers to a shareholder who owns over 50% of a limited
liability company’s total capital or over 50% of a joint stock company’s total share capital; or, despite the ownership of less
than 50% of a limited liability company’s total capital or less than 50% of a joint stock company’s total number of shares,
who can still prevail in the resolution of a meeting of shareholders or a general meeting of shareholders according to the
voting rights corresponding to their interest in the limited liability company’s total capital or the joint stock company’s total
number of shares. According to the definition above, the Company has no controlling shareholder.
Information about such related parties:
Company name Relationship with the Company
Zhonghuan Feilang (Tianjin) Technology Co., Ltd. Joint venture
Huaxia CPV (Inner Mongolia) Power Co., Ltd. Joint venture
Tianjin Huanyan Technology Co., Ltd. Joint venture
TCL Microchip Technology (Guangdong) Co., Ltd. and its subsidiaries Joint venture and its subsidiary
Huizhou TCL Human Resources Service Co., Ltd. and its subsidiaries Joint venture and its subsidiary
Tianjin Zhonghuan Haihe Intelligent Manufacturing Fund Partnership
Associate
(Limited Partnership)
Inner Mongolia Xinhuan Silicon Energy Technology Co., Ltd. Associate
LG Electronics (Huizhou) Co., Ltd. Associate
Aijiexu New Electronic Display Glass (Shenzhen) Co., Ltd. Associate
Shanghai Feilihua Shichuang Technology Co., Ltd. Associate
Zhonghuan Aineng (Beijing) Technology Co., Ltd. Associate
Inner Mongolia Xinhua Bandaoti Technology Co., Ltd. Associate
Hubei Changjiang Hezhi Equity Investment Fund Partnership (Limited
Associate
Partnership)
Wuhan Guochuangke Optoelectronic Equipment Co., Ltd. Associate
Ningbo Dongpeng Heli Equity Investment Partnership (Limited Partnership) Associate
China Innovative Capital Management Limited Associate
Shenzhen Qianhai Sailing International Supply Chain Management Co., Ltd.
Associate and its subsidiaries
and its subsidiaries
Inner Mongolia Huanye Material Co., Ltd. and its subsidiaries Associate and its subsidiaries
Inner Mongolia Zhongjing Science and Technology Research Institute Co.,
Associate and its subsidiaries
Ltd. and its subsidiaries
Shenzhen Jucai Supply Chain Technology Co., Ltd. and its subsidiaries Associate and its subsidiaries
Jiangsu Jixin Bandaoti Silicon Material Research Institute Co., Ltd. and its
Associate and its subsidiaries
subsidiaries
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XIX Related Parties and Related-Party Transactions (Continued)
Company name Relationship with the Company
Wuxi TCL Venture Capital Partnership (Limited Partnership) and its subsidiaries Associate and its subsidiaries
Ningbo Dongpeng Weichuang Equity Investment Partnership (Limited Partnership)
Associate and its subsidiaries
and its subsidiaries
Yixing Jiangnan Tianyuan Venture Capital Company (Limited Partnership) and its
Associate and its subsidiaries
subsidiaries
Nanjing Zijin A Dynamic Investment Partnership (Limited Partnership) and its
Associate and its subsidiaries
subsidiaries
Purplevine Holdings Limited and its subsidiaries Associate and its subsidiaries
Shenzhen Tixiang Business Management Technology Co., Ltd. and its subsidiaries Associate and its subsidiaries
Shanghai Gen Auspicious Venture Capital Partnership (Limited Partnership) and its
Associate and its subsidiaries
subsidiaries
TCL Industries Holdings Co., Ltd. and its subsidiaries Other relationships
Thunderbird Innovation Technology (Shenzhen) Co., Ltd. and its subsidiaries Other relationships
Joint ventures and subsidiaries of TCL Industries Holdings Co., Ltd. Other relationships
(1) Selling raw materials and finished goods (Note 1)
January - June 2025 January - June 2024
TCL Industries Holdings Co., Ltd. and its subsidiaries 9,933,434 10,125,470
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Shenzhen Jucai Supply Chain Technology Co., Ltd. and its
subsidiaries
Zhonghuan Feilang (Tianjin) Technology Co., Ltd. 6,130 4,674
TCL Microchip Technology (Guangdong) Co., Ltd. and its
subsidiaries
Inner Mongolia Xinhuan Silicon Energy Technology Co., Ltd. 203 -
Inner Mongolia Huanye Material Co., Ltd. and its subsidiaries 2 -
Maxeon Solar Technologies, Ltd. and its subsidiaries - 726,047
LG Electronics (Huizhou) Co., Ltd. - 589
Purplevine Holdings Limited and its subsidiaries - 71
Tianjin Qiyier Communication & Broadcasting Co., Ltd. and its
- 10
subsidiaries
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
(2) Purchasing raw materials and finished products (Note 2)
January - June 2025 January - June 2024
Aijiexu New Electronic Display Glass (Shenzhen) Co., Ltd. 1,816,831 2,320,232
TCL Industries Holdings Co., Ltd. and its subsidiaries 1,200,340 918,178
Inner Mongolia Xinhuan Silicon Energy Technology Co., Ltd. 1,054,199 572,585
Shenzhen Jucai Supply Chain Technology Co., Ltd. and its
subsidiaries
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
TCL Microchip Technology (Guangdong) Co., Ltd. and its
subsidiaries
Inner Mongolia Xinhua Bandaoti Technology Co., Ltd. 8,879 -
Inner Mongolia Zhongjing Science and Technology Research
Institute Co., Ltd. and its subsidiaries
Inner Mongolia Sheng’ou Electromechanical Engineering Co.,
- 152,875
Ltd.
Inner Mongolia Huanye Material Co., Ltd. and its subsidiaries - 111,848
Purplevine Holdings Limited and its subsidiaries - 11,615
Zhonghuan Feilang (Tianjin) Technology Co., Ltd. - 779
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
(3) Receiving funding (Note 3)
January - June 2025 January - June 2024
TCL Industries Holdings Co., Ltd. and its subsidiaries 807,296 79,134
Shenzhen Jucai Supply Chain Technology Co., Ltd. and its
subsidiaries
Huizhou TCL Human Resources Service Co., Ltd. and its
subsidiaries
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Wuxi TCL Venture Capital Partnership (Limited Partnership)
and its subsidiaries
Ningbo Dongpeng Weichuang Equity Investment Partnership
(Limited Partnership) and its subsidiaries
Yixing Jiangnan Tianyuan Venture Capital Company (Limited
Partnership) and its subsidiaries
Nanjing Zijin A Dynamic Investment Partnership (Limited
Partnership) and its subsidiaries
TCL Microchip Technology (Guangdong) Co., Ltd. and its
subsidiaries
Ningbo Dongpeng Heli Equity Investment Partnership (Limited
- 34
Partnership)
Shanghai Gen Auspicious Venture Capital Partnership (Limited
- 11
Partnership) and its subsidiaries
(4) Rendering of funds (Note 3)
January - June 2025 January - June 2024
TCL Industries Holdings Co., Ltd. and its subsidiaries 194,623 226
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
(5) Leases
January - June 2025 January - June 2024
Rental income
TCL Industries Holdings Co., Ltd. and its subsidiaries 32,037 31,185
Aijiexu New Electronic Display Glass (Shenzhen) Co., Ltd. 12,767 22,810
TCL Microchip Technology (Guangdong) Co., Ltd. and its
subsidiaries
Shenzhen Jucai Supply Chain Technology Co., Ltd. and its
subsidiaries
Jiangsu Jixin Bandaoti Silicon Material Research Institute
Co., Ltd. and its subsidiaries
Shenzhen Tixiang Business Management Technology Co.,
Ltd. and its subsidiaries
Huizhou TCL Human Resources Service Co., Ltd. and its
subsidiaries
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Inner Mongolia Huanye Material Co., Ltd. and its
- 11,519
subsidiaries
Zhonghuan Feilang (Tianjin) Technology Co., Ltd. - 517
January - June 2025 January - June 2024
Rental expense
TCL Industries Holdings Co., Ltd. and its subsidiaries 23,549 27,110
Tianjin Huanyan Technology Co., Ltd. 1,134 2,214
TCL Microchip Technology (Guangdong) Co., Ltd. and its
subsidiaries
Huaxia CPV (Inner Mongolia) Power Co., Ltd. - 4,732
Inner Mongolia Zhongjing Science and Technology
- 1,673
Research Institute Co., Ltd. and its subsidiaries
Shenzhen Jucai Supply Chain Technology Co., Ltd. and its
- 123
subsidiaries
(6) Rendering or receipt of services
January - June 2025 January - June 2024
Rendering of services 165,446 163,883
Receipt of services 963,539 946,617
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
(7) Collection/Payment of interest (Note 3)
January - June 2025 January - June 2024
Interest received 2,818 7,806
Interest paid 11,033 10,358
(8) Remuneration of key management personnel (Note 4)
January - June 2025 January - June 2024
Remuneration of key management personnel 6,250 6,146
Note 1 Selling raw materials and finished goods to related parties
The Company sells raw materials, spare parts, auxiliary materials, and finished goods to its joint ventures
and associates at market prices, which are settled in the same way as non-related-party transactions. These
related-party transactions have no material impact on the Company’s net profits but play an important role
as to the Company’s continued operations.
Note 2 Purchasing raw materials and finished goods from related parties
The Company purchases raw materials and finished goods from its joint ventures and associates at prices
similar to those paid to third-party suppliers, which are settled in the same way as non-related-party
transactions. These related-party transactions have no material impact on the Company’s net profits but play
an important role as to the Company’s continued operations.
Note 3 Providing funding for or receiving funding from related parties and corresponding interest received or paid
The Company set up a settlement center in 1997 and TCL Technology Group Finance Co., Ltd. in 2006
(together, the "Financial Settlement Center"). The Financial Settlement Center is responsible for the
financial affairs of the Company, including capital operation and allocation. The Center settles accounts
with the Company’s subsidiaries, joint ventures, and associates and pays the interest. It also allocates the
money deposited by the subsidiaries, joint ventures and associates in it to these enterprises and charges
interest. The interest income and expense between the Company and the Center are calculated according to
the interest rates declared by the People’s Bank of China. The funding amount provided refers to the
outstanding borrowings due from the Center to related parties, while the funding amount received means the
balances of related parties’ deposits in the Center.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
Note 4 The remunerations of key management personnel include fixed salaries, allowances, and performance
bonuses received from the Company by the directors, supervisors, and senior executives of the Company
during their terms of office, but do not include share-based payments.
Note 5 Maxeon Solar Technologies, Ltd. was transformed from an associate to a subsidiary in August 2024, and
the transactions between Maxeon Solar Technologies, Ltd. and its subsidiaries and the Group before such
transaction date are related party transactions.
Note 6 The company disposed of its equity in Tianjin Qiyier Communication & Broadcasting Co., Ltd. in July
subsidiaries and the Group before such transaction date are related party transactions.
Note 7 The company disposed of its equity in Inner Mongolia Sheng’ou Electromechanical Engineering Co., Ltd.
in December 2024, and the transactions between Inner Mongolia Sheng’ou Electromechanical Engineering
Co., Ltd. and the Group before such transaction date are related-party transactions.
(1) Accounts receivable
June 30, 2025 December 31, 2024
TCL Industries Holdings Co., Ltd. and its subsidiaries 4,402,213 5,317,484
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Shenzhen Jucai Supply Chain Technology Co., Ltd. and
its subsidiaries
Tianjin Zhonghuan Haihe Intelligent Manufacturing
Fund Partnership (Limited Partnership)
Zhonghuan Feilang (Tianjin) Technology Co., Ltd. 3,460 2,448
TCL Microchip Technology (Guangdong) Co., Ltd. and
its subsidiaries
Inner Mongolia Huanye Material Co., Ltd. and its
subsidiaries
Inner Mongolia Xinhuan Silicon Energy Technology
Co., Ltd.
Inner Mongolia Zhongjing Science and Technology
Research Institute Co., Ltd. and its subsidiaries
Jiangsu Jixin Bandaoti Silicon Material Research
- 20
Institute Co., Ltd. and its subsidiaries
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
(2) Receivables financing
June 30, 2025 December 31, 2024
TCL Microchip Technology (Guangdong) Co., Ltd. and
- 151
its subsidiaries
- 151
(3) Accounts payable
June 30, 2025 December 31, 2024
TCL Industries Holdings Co., Ltd. and its subsidiaries 1,954,552 1,708,430
Aijiexu New Electronic Display Glass (Shenzhen) Co.,
Ltd.
Shenzhen Jucai Supply Chain Technology Co., Ltd. and
its subsidiaries
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Inner Mongolia Zhongjing Science and Technology
Research Institute Co., Ltd. and its subsidiaries
TCL Microchip Technology (Guangdong) Co., Ltd. and
its subsidiaries
Inner Mongolia Huanye Material Co., Ltd. and its
subsidiaries
Joint ventures and subsidiaries of TCL Industries
Holdings Co., Ltd.
Huizhou TCL Human Resources Service Co., Ltd. and
its subsidiaries
Purplevine Holdings Limited and its subsidiaries 420 -
Inner Mongolia Xinhua Bandaoti Technology Co., Ltd. 280 -
Zhonghuan Feilang (Tianjin) Technology Co., Ltd. 101 87
Shanghai Feilihua Shichuang Technology Co., Ltd. 9 9
Inner Mongolia Sheng’ou Electromechanical
- 11,265
Engineering Co., Ltd.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
Related Parties and Related-Party Transactions (Continued)
(4) Other receivables
June 30, 2025 December 31, 2024
TCL Industries Holdings Co., Ltd. and its subsidiaries 157,834 143,339
TCL Microchip Technology (Guangdong) Co., Ltd. and its
subsidiaries
Inner Mongolia Zhongjing Science and Technology
Research Institute Co., Ltd. and its subsidiaries
Inner Mongolia Xinhuan Silicon Energy Technology Co.,
Ltd.
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Shenzhen Jucai Supply Chain Technology Co., Ltd. and its
subsidiaries
Aijiexu New Electronic Display Glass (Shenzhen) Co., 3,242 3,382
Ltd.
Zhonghuan Aineng (Beijing) Technology Co., Ltd. 3,103 3,053
Inner Mongolia Huanye Material Co., Ltd. and its
subsidiaries
Purplevine Holdings Limited and its subsidiaries 500 -
Jiangsu Jixin Bandaoti Silicon Material Research Institute
Co., Ltd. and its subsidiaries
Huizhou TCL Human Resources Service Co., Ltd. and its
subsidiaries
Joint ventures and subsidiaries of TCL Industries Holdings
Co., Ltd.
Thunderbird Innovation Technology (Shenzhen) Co., Ltd.
- 900
and its subsidiaries
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
X
(5) Other payables
June 30, 2025 December 31, 2024
Tianjin Zhonghuan Haihe Intelligent Manufacturing Fund
Partnership (Limited Partnership)
TCL Industries Holdings Co., Ltd. and its subsidiaries 272,718 249,033
Huizhou TCL Human Resources Service Co., Ltd. and its
subsidiaries
Shenzhen Jucai Supply Chain Technology Co., Ltd. and its
subsidiaries
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Aijiexu New Electronic Display Glass (Shenzhen) Co.,
Ltd.
Wuxi TCL Venture Capital Partnership (Limited
Partnership) and its subsidiaries
Wuhan Guochuangke Optoelectronic Equipment Co., Ltd. 2,025 1,714
Tianjin Huanyan Technology Co., Ltd. 1,134 1,785
TCL Microchip Technology (Guangdong) Co., Ltd. and its
subsidiaries
Ningbo Dongpeng Weichuang Equity Investment
Partnership (Limited Partnership) and its subsidiaries
Yixing Jiangnan Tianyuan Venture Capital Company
(Limited Partnership) and its subsidiaries
Joint ventures and subsidiaries of TCL Industries Holdings
Co., Ltd.
Thunderbird Innovation Technology (Shenzhen) Co., Ltd.
and its subsidiaries
Nanjing Zijin A Dynamic Investment Partnership (Limited
Partnership) and its subsidiaries
China Innovative Capital Management Limited 57 57
Inner Mongolia Zhongjing Science and Technology
Research Institute Co., Ltd. and its subsidiaries
Ningbo Dongpeng Heli Equity Investment Partnership
(Limited Partnership)
Shenzhen Tixiang Business Management Technology Co.,
Ltd. and its subsidiaries
Jiangsu Jixin Bandaoti Silicon Material Research Institute
Co., Ltd. and its subsidiaries
Hubei Changjiang Hezhi Equity Investment Fund
- 345,430
Partnership (Limited Partnership)
Purplevine Holdings Limited and its subsidiaries - 100
Inner Mongolia Huanye Material Co., Ltd. and its
- 60
subsidiaries
Inner Mongolia Sheng’ou Electromechanical Engineering
- 12
Co., Ltd.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
(6) Non-current liabilities due within one year
June 30, 2025 December 31, 2024
TCL Industries Holdings Co., Ltd. and its subsidiaries 21,611 21,695
(7) Prepayments
June 30, 2025 December 31, 2024
TCL Industries Holdings Co., Ltd. and its subsidiaries 16,099 23,535
Tianjin Huanyan Technology Co., Ltd. 4,857 4,857
Shenzhen Jucai Supply Chain Technology Co., Ltd. and
its subsidiaries
Inner Mongolia Huanye Material Co., Ltd. and its
subsidiaries
Inner Mongolia Xinhuan Silicon Energy Technology Co.,
Ltd.
Huizhou TCL Human Resources Service Co., Ltd. and its
subsidiaries
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
(8) Advances from customers
June 30, 2025 December 31, 2024
TCL Industries Holdings Co., Ltd. and its subsidiaries 202 312
Shenzhen Jucai Supply Chain Technology Co., Ltd. and its
subsidiaries
(9) Contract liabilities
June 30, 2025 December 31, 2024
TCL Industries Holdings Co., Ltd. and its subsidiaries 227,156 28,727
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
(10) Lease liabilities
June 30, 2025 December 31, 2024
TCL Industries Holdings Co., Ltd. and its subsidiaries 25,928 33,441
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
(11) Deposits from related parties (note)
June 30, 2025 December 31, 2024
TCL Industries Holdings Co., Ltd. and its subsidiaries 807,357 4,808
Shenzhen Jucai Supply Chain Technology Co., Ltd. and
its subsidiaries
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Huizhou TCL Human Resources Service Co., Ltd. and its
subsidiaries
TCL Microchip Technology (Guangdong) Co., Ltd. and
its subsidiaries
Note: These deposits are made by related parties in the Company’s subsidiary TCL Technology Group Finance
Co., Ltd.
(12) Other non-current assets
June 30, 2025 December 31, 2024
Purplevine Holdings Limited and its subsidiaries 49,573 71,711
TCL Industries Holdings Co., Ltd. and its subsidiaries 20,460 21,823
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XII Share-based Payments
Total amount of each equity instrument granted by the Company in the current
period
Total amount of each equity instrument exercised by the Company in the current
period
Total amount of the Company’s equity instruments that expired in the current period 10,492,000 shares
Range of exercise prices of the Company’s stock options outstanding and remaining
contract term at the end of the period
Range of exercise prices of the Company’s other equity instruments outstanding and
remaining contract term at the end of the period
(1) Employee Stock Ownership Plan (Phase II) 2021-2023
According to the Proposal on the Management Measures of the Company’s Employee Stock Ownership Plan (Phase II)
Employee Stock Purchase Plan (Phase II) 2021--2023 (Draft) adopted by the resolution of the 19th Meeting of the Seventh-
term Board of Directors and the 14th Meeting of the Seventh-term Board of Supervisors, 32.6211 million shares were
granted to no more than 3,600 awardees at the price of RMB 4.35 on July 22, 2022.
On May 31, 2023, the Management Committee of the Phase II Shareholding Plan approved the vesting of a total of
approximately 30,650,000 shares to the holders of the current phase shareholding plan, based on the company's performance,
the performance of its subordinate operating units, and the achievement of individual performance targets. Of these shares,
June 2025.
(2) Employee Stock Ownership Plan (Phase III) 2021-2023
According to the Proposal on the Management Measures of the Company’s Employee Stock Ownership Plan (Phase III)
Company’s Employee Stock Purchase Plan (Phase III) 2021-2023 (Draft) adopted by the resolution of the 32nd Meeting of
the Seventh-term Board of Directors and the 21st Meeting of the Seventh-term Board of Supervisors, 64.99 million shares
were granted to no more than 3,600 awardees at the price of RMB 3.94 on June 16, 2023.
On May 30, 2024, the Management Committee of the Phase III Shareholding Plan approved the vesting of a total of
performance of its subordinate operating units, and the achievement of individual performance targets. Of these shares,
(3) Employee Stock Ownership Plan 2024
According to the Second Meeting of the Eighth-term Board of Directors, the Second Meeting of the Eighth-term Board of
Supervisors, and the First Extraordinary General Meeting 2024, the Proposal on the Employee Stock Ownership Plan 2024
of TCL Technology Group Corporation (Draft) was deliberated on, and 117.99 million shares were granted to no more than
On May 30, 2025, the Management Committee of the 2024 Shareholding Plan approved the vesting of a total of 117.99
million shares to the holders of the current phase shareholding plan, based on the company's performance, the performance
of its subordinate operating units, and the achievement of individual performance targets.
The vesting arrangement of the restricted stock granted under the above incentive plan is shown in the following table:
Number of Vesting period and ratio
times
After 12 months from the date of vesting of the holder's respective quota of the underlying shares,
the Shareholding Plan may decide whether to sell 50% of the shares or to transfer 50% of the
First non-trade
holder's respective shares to the account of the holder of the Shareholding Plan, provided that such
transfer or sale
transfer and sales are then supported by the systems of SZSE and the Registration and Settlement
Corporation;
After 24 months from the date of vesting of the holder’s respective quota of the underlying shares,
Second non- the Shareholding Plan may decide whether to sell 50% of the shares or to transfer 50% of the
trade transfer or holder’s respective shares to the account of the holder of the Shareholding Plan provided that such
sale transfer and sales are then supported by the systems of SZSE and the Registration and Settlement
Corporation.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XII Share-based Payments (Continued)
The Group determined the fair value of equity instruments
Method of determining the fair value of
on the grant date based on the fair value of the shares.
equity instruments on the date of grant
On each balance sheet date within the vesting period, the
Group determines the best estimate based on the latest
Basis for determining the number of
number of employees eligible to exercise their options, and
exercisable equity instruments
revise the estimated number of exercisable equity
instruments.
Reasons for significant differences
None
between current and previous estimates
Accumulated amount of equity-settled
share-based payment included in capital RMB 277,293,000
reserve
Total expense recognized for equity-settled
RMB 155,980,000
share-based payments in the current period
（1）Stock option
No stock option matters occurred during H1 2025.
（2）Employee stock ownership plan
On August 30, 2022, TZE held its second extraordinary general meeting of 2022 where the Proposal on the
Employee Stock Ownership Plan (Draft) and Its Summary for 2022 (hereinafter referred to as the "2022
Employee Stock Ownership Plan") were deliberated and adopted. TZE held the 22nd Meeting of the 6th-term
Board of Directors on January 11, 2022, where it deliberated on and adopted the Proposal on Repurchasing the
Company's Shares. The Company repurchased a total of 9,515,263 shares through the special securities account
for repurchasing shares by means of centralized bidding, with an average transaction price of RMB 41.09.
Proposal on the Plan for Repurchasing the Company's Shares. The remaining unused 161,615 repurchased
shares in 2021 were also used for the 2022 Employee Stock Ownership Plan. In summary, a total of 9,654,412
shares were used for the Employee Stock Ownership Plan. On June 30, 2023, the 2022 Employee Stock
Ownership Plan Management Committee, based on the achievement of the Company's performance assessments
indicators and the results of individual performance assessment, determined that the stock quota would be
granted on July 1, 2023, and calculated the corresponding target stock quota of the holders to grant them to the
relevant holders by means of internal registration and confirmation. The lock-up period of the 2022 Employee
Stock Ownership Plan expired on September 7, 2023.
The lock-up period of TZE’s 2023 Employee Stock Ownership Plan expired on June 8, 2024. Due to the failure
of key performance indicators, according to the provisions of the 2023 Employee Stock Ownership Plan, the
shares of 14,391,980 shares of the target stock corresponding to the 2023 Employee Stock Ownership Plan (the
total number of shares after the implementation of the capital increase in 2022 was 17,989,975 shares) and all
the corresponding dividends and other rights and interests were owned by TZE, no longer by the holders. The
current Employee Stock Ownership Plan Management Committee chose an opportunity to sell before the
expiration of the 2023 Employee Stock Ownership Plan, and the sold equity was attributable to TZE.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XII Share-based payments (continued)
（2）Employee stock ownership plan (continued)
TZE held the 43rd Meeting of the 6th-term Board of Directors on October 25, 2023, where it deliberated on and
adopted the Proposal on Repurchasing the Company's Shares. The Company repurchased a cumulative number
of 4,999,968 shares by means of centralized bidding through the special securities account for repurchasing
shares, using them to implement the employee stock ownership plan or equity incentive.
（3）Equity-settled share-based payments
Key parameters of the fair value of equity instruments
Stock Price
on the grant date
On each balance sheet date during the waiting
period, the best estimates were made according
to the latest subsequent information such as
Basis for determining the number of exercisable equity changes in the number of employees with
instruments exercisable stock options and the completion of
performance indicators, and the estimated
number of equity instruments with exercisable
stock options was revised.
Reasons for significant differences between current and
None
previous estimates
Accumulated amount of equity-settled share-based
RMB 753,594,000
payment included in capital reserve
Total expense recognized for equity-settled share-based
RMB 56,955,000
payments in the current period
（4）TZE has no cash-settled share-based payments.
（5）Payment of TZE for shares in current period
In 2023, the key performance indicators of the employee stock ownership plan were not achieved, and
the shares were not granted, for which costs and expenses were not recognized; in January-June 2025,
the costs and expenses recognized for the employee stock ownership plan in 2022 amounted to RMB
（6）Payment of Tianjin Printronics for shares in current period
On June 12, 2025, Tianjin Printronics received the Securities Transfer Registration Confirmation
Notice issued by the Shenzhen Branch of China Securities Depository and Clearing Corporation
Limited, confirming the completion of the first non-trading transfer of certain shares of holders under
the 2023 Employee Stock Ownership Plan. A total of 757,141 shares were transferred, representing
the company's directors, supervisors, and senior management, and 563,791 shares to other holders.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XIII Commitments
June 30, 2025
Contracted but not provisioned Note 1 18,268,566
Approved by the Board but not contracted Note 2 480,745
Note The capital commitments under contractual obligations but not provided for in the current period primarily
Note The capital commitments approved by the Board of Directors but not under contractual obligations in the
As of June 30, 2025, apart from the disclosures above, there were no other major commitments that are
required to be disclosed.
XIV Contingencies
Guarantees Provided for External Parties
As of June 30, 2025, the guarantee provided by the Company for the related party’s bank loans, commercial
drafts, letters of credit, etc., was RMB 2,555,934,000, which is listed in details as below:
Remaining
Actual guarantee Type of Actual occurrence Fulfilled
Obligor term of
amount guarantee date or not
guarantee
Aijiexu New Electronic Joint
Display Glass (Shenzhen) 159,344 liability April 28, 2020 3.3-5 years No
Co., Ltd. guarantee
Shenzhen Qianhai Sailing Joint
International Supply Chain 485,850 liability January 8, 2025 8-250 days No
Management Co., Ltd. guarantee
Inner Mongolia Xinhua Joint
Bandaoti Technology Co., 380,000 liability May 22, 2023 4.9 years No
Ltd. guarantee
Inner Mongolia Xinhuan Joint
Silicon Energy Technology 1,530,740 liability June 15, 2023 4 years No
Co., Ltd. guarantee
As of June 30, 2025, the amount of credit granted by the Group for the note discounting, note acceptance, and non-
financing guarantees of related parties was RMB 1,237,657,000.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XV Events after the Balance Sheet Date
Assets and Raise Supporting Funds (CSRC Permit [2025] No. 1326) issued and approved by the China
Securities Regulatory Commission (CSRC), the CSRC has permitted the company's application to issue
to as the "Major Industry Fund") for the purchase of related assets and to raise supporting funds of up to
RMB 4,359,411,108.52 through the share issuance.
As of August 22, 2025, the company completed the issuance of 986,292,106 shares to the Major Industry
Fund to acquire its 21.5311% equity interest in Shenzhen China Star Optoelectronics Bandaoti Display
Technology Co., Ltd., and raised supporting funds of up to RMB 4,359,411,106.54 through the issuance of
with an issue size of RMB 2 billion, a term of 181 days, and an issue interest rate of 1.7% per annum, with
interest accruing from 2 July, 2025.
XVI Other Important Matters
(I) Segment reporting
According to the Company’s internal organizational structure, management requirements, and internal reporting
system, the Company’s business is divided into four reporting segments: the display business, the new energy
photovoltaic and other silicon materials business, the distribution business and the other businesses. The
Company's management regularly evaluates the operating results of these reporting segments to determine the
allocation of resources and evaluate their performance. The Company’s four reporting segments are:
Display business mainly includes the research and development, manufacturing, and sales of display panels and
(1)
display modules, as well as complete display processing.
New energy photovoltaic and other silicon materials business: mainly includes the R&D, production and sales
(2) of monocrystalline silicon ingots and silicon wafers, cells and modules, and other silicon materials and devices;
the development and operation of photovoltaic power stations.
(3) Distribution business: mainly includes the sales of computers, software, tablet computers, mobile phones, and
other electronic products.
(4) Other businesses: other businesses besides the above, including industrial finance and investment business,
technology development services, and patent maintenance services provided by the company, etc.
Segment assets include all current assets such as tangible assets, intangible assets, other long-term assets, and
receivables attributable to each segment. Segment liabilities include payables, bank loans, and other long-term
liabilities attributable to each segment.
Segment operating results refer to the income generated by each segment (including external transactions
income and inter-segment transaction income), net of expenses incurred by each segment, depreciation,
amortization and impairment loss of assets attributable to each segment, gains or losses from changes in fair
value, return on investment, non-operating income and income tax expenses. Transfer pricing of inter-segment
income is calculated on terms similar to other foreign transactions.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XVI Other Important Matters (Continued)
(I) Segment reporting (continued)
For the six-month period ending June 30, 2025
New energy Other
Display photovoltaics and Distribution businesses and
Total
business other silicon business internally offset
materials business accounts
Operating revenue 57,550,503 13,398,123 14,674,516 (63,138) 85,560,004
Net profits 4,613,425 (4,836,171) 67,956 186,473 31,683
Total assets 220,928,986 124,816,914 8,138,505 46,585,058 400,469,463
Total liabilities 140,268,533 83,049,766 6,512,614 41,296,393 271,127,306
Depreciation and
amortization 11,641,845 4,407,930 23,168 9,460 16,082,403
expenses
Capital expenditure 4,764,762 3,295,997 1,606 251,608 8,313,973
For the six-month period ending June 30, 2024
New energy Other
Display photovoltaics and Distribution businesses and
Total
business other silicon business internally offset
materials business accounts
Operating revenue 49,877,063 16,213,493 13,649,333 483,848 80,223,737
Net profits 2,696,011 (3,175,764) 62,945 (51,341) (468,149)
Total assets 221,429,601 125,196,373 7,801,619 27,905,947 382,333,540
Total liabilities 146,688,074 69,260,983 6,310,452 21,837,841 244,097,350
Depreciation and
amortization 11,058,768 3,973,499 33,097 32,611 15,097,975
expenses
Capital expenditure 8,363,469 3,450,381 4,473 582,947 12,401,270
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XVII Notes to the key items presented in the financial statements of the Company
June 30, 2025 December 31, 2024
Bad-debt Accrual Bad-debt Accrual
Amount Ratio Amount Ratio
Allowance Ratio Allowance Ratio
Within 1
year
June 30, 2025 December 31, 2024
Other receivables 10,492,989 9,910,856
(a) Nature of other receivables is analyzed as follows:
June 30, 2025 December 31, 2024
Equity transfer receivables 610 610
Security and deposits 2,820 3,110
Others 10,489,559 9,907,136
(b) Allowance for doubtful other receivables is analyzed as follows:
Total
ECL not impaired) impaired)
December 31, 2024 1,503 - 32,767 34,270
Accrued in the
- - 5,396 5,396
period
Reversal of current
(18) - - (18)
period
Write-off of current
(10) - - (10)
period
June 30, 2025 1,475 - 38,163 39,638
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XVII Notes to Financial Statements of the Parent Company (Continued)
(c) The aging of other receivables is analyzed as follows:
June 30, 2025 December 31, 2024
Amount Ratio Amount Ratio
Within 1 year 9,089,515 86.30% 8,311,481 83.57%
Over 3 years 143,942 1.37% 347,951 3.50%
The outstanding other receivables were mostly current accounts with related parties.
The top five other receivables of the Company amounted to approximately RMB 9,403,152,000 (December
(December 31, 2024: 98.34%).
June 30, 2025 December 31, 2024
Gross Impairment Carrying Gross Impairment Carrying
amount allowance amount amount allowance amount
Associates and joint
ventures (1)
Subsidiaries (2) 65,764,044
As of June 30, 2025, there are no major restrictions on the realization of investment and the remittance of
return on long-term equity investments.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XVII Notes to Financial Statements of the Parent Company (Continued)
(1) Associates and joint ventures
Increase or decrease in current period
Increase/ Investment gains Other Other
Other Declared cash
December 31, decrease in and losses comprehensive increases
equity dividends or June 30, 2025
changes profits
current period equity method adjustment decreases
Joint venture 283,595 27,835 (46,097) - 1,153 - - 266,486
Associate
Bank of Shanghai Co., Ltd. 14,740,146 - 738,558 (47,923) 17 (179,937) - 15,250,861
Others 2,257,875 (70,431) 173,526 76 175 (35,723) - 2,325,498
Total of associates 16,998,021 (70,431) 912,084 (47,847) 192 (215,660) - 17,576,359
Total 17,281,616 (42,596) 865,987 (47,847) 1,345 (215,660) - 17,842,845
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XVII Notes to Financial Statements of the Parent Company (Continued)
(2) Subsidiaries
Decrease
December 31, Increase in
in current June 30, 2025
period
TCL China Star Optoelectronics
Technology Co., Ltd.
TCL Technology Group Finance Co., Ltd. 1,256,003 - - 1,256,003
TCL Technology Group (Tianjin) Co.,
Ltd.
TCL Zhonghuan Renewable Energy
Technology Co., Ltd.
TCL Culture Media (Shenzhen) Co., Ltd. 78,000 - - 78,000
Shenzhen Dongxi Jiashang
Entrepreneurship Investment Co., Ltd.
Guangdong TCL Juxiang Technology
Co., Ltd.
Highly Information Industry Co., Ltd. 107,296 - - 107,296
TCL Communication Equipment
(Huizhou) Co., Ltd.
TCL Medical Radiological Technology
(Beijing) Co., Ltd.
Shenzhen TCL Strategic Equity
Investment Fund Partnership (Limited 55,664 - (184) 55,480
Partnership)
TCL Industrial Technology Research
Institute, Ltd. (Europe)
Wuhan TCL Industrial Technology
Research Institute, Ltd.
Shenzhen TCL High-Tech Development
Co., Ltd.
Huizhou Hongsheng Science and
Technology Development Co., Ltd.
Tianjin Silica Material Technology Co.,
Ltd.
Xiamen TCL Technology Industrial
Investment Co., Ltd.
TCL Internet Technology (Shenzhen) Co.,
Ltd.
Ningbo TCL Equity Investment Ltd. 300,000 - - 300,000
TCL Technology Investments Limited 3,348,778 116,784 - 3,465,562
Huizhou Dongshen Jia’an Equity
Investment Partnership (Limited 221,000 424,000 - 645,000
Partnership)
TCL Financial Technology (Shenzhen)
Co., Ltd.
Zhonghuan Advanced Bandaoti
Technology Co., Ltd.
Equity incentives of subsidiaries 203,416 33,593 - 237,009
For the registered capital of subsidiaries and the Company’s equity interests in the subsidiaries, see Note VIII.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XVII Notes to Financial Statements of the Parent Company (Continued)
June 30, 2025 December 31, 2024
Equity investments 399,303 423,060
Debt investments 187,521 300,483
January - June 2025 January - June 2024
Operating Operating Operating Operating
revenue cost revenue cost
Core business 10,227 2,288 386,446 380,021
Non-core business 176,239 89,824 312,857 69,585
January - June 2025 January - June 2024
Revenue from long-term equity investment accounted for
using the equity method
Net income from disposal of long-term investments - 51,495
Return on holding of held-for-trading financial assets 82,655 176,467
Return on disposal of held-for-trading financial assets (2,133) -
Revenue from long-term equity investment accounted for
using the cost method
XVIII Comparative Figures
Certain comparative data have been reclassified to comply with the presentation of the current period.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XIX Non-recurring profit and loss items and amount
January - June 2025 January - June 2024
Gain or loss on disposal of non-current assets (inclusive of
(20,061) 48,439
impairment allowance write-offs)
Public subsidies charged to current profits and losses (exclusive of
public grants closely related to the Company’s normal business
operations, in compliance with national policies, enjoyed according 633,215 972,603
to determined criteria, and with a continuous impact on the
Company’s profits and losses)
The profits or losses generated from changes in fair value arising
from financial assets and financial liabilities held by non-financial
enterprises and the profits or losses from the disposal of such
financial assets and financial liabilities, except for the effective
hedging business related to the company’s normal business
operations
Reversal of provision for impairment of receivables that have been
individually tested for impairment
Non-operating income and expenses other than the above 126,891 258,631
Income tax effects (84,754) (156,219)
Non-controlling interests effects (376,588) (714,189)
Non-recurring gains and losses attributable to ordinary shareholders
of the parent company
According to the relevant provisions of the Interpretative Announcement No. 1 on Information Disclosure by
Companies Issuing Securities to the Public - Non-recurring Profits and Losses (Revised in 2023), public grants
closely related to the Company’s normal business operations, in compliance with national policies, enjoyed
according to determined criteria, and with a continuous impact on the Company’s profits and losses shall be
presented as recurring profits and losses.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2025
___________(RMB’000)_____________
XX Weighted Average Return on Equity (ROE) and Earnings per Share (EPS)
The Company calculates the ROE and EPS as follows in accordance with the Compilation Rules No. 9 for
Information Disclosure of Companies Offering Securities to the Public-Calculation and Disclosure of Return on
Equity and Earnings per Share (Revised in 2010) issued by the China Securities Regulatory Commission and
relevant provisions of accounting standards:
Net profits Earnings per share (RMB: yuan)
attributable to
Weighted
the parent
average
Item company
return on Basic earnings Diluted earnings
during the
equity per share per share
Reporting
Period
Net profits attributable to ordinary
shareholders of the Company
Net profits attributable to ordinary
shareholders of the Company
before non-recurring gains and 1,558,735 2.93% 0.0839 0.0830
losses
Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Part IX Other Data Submitted
I. Other Major Social and Security Issues
Whether there were any other major social and security issues involving the listed company and its subsidiaries
□Yes □No Not applicable
Whether there were any administrative penalties imposed during the Reporting Period
□Yes □No Not applicable
The Company was not subject to any significant administrative penalties during the Reporting Period.
II. Record of Communications with the Investment Community, such as Research, Inquiries,
and Interviews during the Reporting Period
Applicable □Not applicable
Type of Primary focus of
Time of Manner of Communica Index of the main information
Location communication the discussion and
reception communication tion party communicated
party materials provided
Conference
Annual Log Sheet No. 2025-001 on Investor
Room of
April 29, Individuals, All performance and Relations Activities dated April 29, 2025
TCL Web conferencing
TECH. in
TECH. for 2024 www.cninfo.com.cn on April 29, 2025.
Shenzhen
Contents and
January - The Individuals,
Investor hotline Individuals, public information,
June Company's institutions, -
(telephone) institutions, etc. etc., disclosed by
the Company
Contents and
January - The Individuals,
Individuals, public information,
June Company's irm.cninfo.com.cn institutions, irm.cninfo.com.cn
institutions, etc. etc., disclosed by
the Company
III. Capital Transactions between the Listed Company and its Controlling Shareholder and
Other Related Parties
Applicable □Not applicable
For more details, please refer to the section "Transactions Between the Financial Company Controlled by the Company and Related
Companies" in this Report, and the Summary Table of Non-Operating Fund Occupancy and Other Related-Party Fund Transactions
for the First Half of 2025 disclosed on the same day as this Report.
No occupation of the Company's funds by the controlling shareholder or any of its related parties for non-
operation purposes during the Reporting Period.
TCL Technology Group Corporation
August 28, 2025
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