TCL科技：2020年年度报告（英文版）.PDF
TCL 科技集团股份有限公司科技集团股份有限公司 TCL Technology Group Corporation ANNUAL REPORT 2020 11 March 2021TCL Technology Group Corporation Annual Report 2020 1 Table of Contents Part I Important Notes, Table of Contents and Definitions . 7 Part II Corporate Information and Key Financial Information . 10 Part III Business Summary . 14 Part IV Directors Report . 19 Part V Significant Events . 44 Part VI Share Changes and Shareholder Information . 67 Part VII Convertible Corporate Bonds . 73 Part VIII Directors, Supervisors, Senior Management and Staff . 74 Part IX Corporate Governance . 88 Part X Corporate Bonds . 103 Part XI Financial Report. 110 TCL Technology Group Corporation Annual Report 2020 2 Ramp up, Catch up and Go all out to be A Global Leader Chairmans Statement The year 2020 marked the start of our global leading strategy, as well as a critical turning point for TCL. In face of the internal and external shocks at the beginning of the year, TCL adhered to the established strategies and business plans, and put forward the business strategy of Ramp up, Catch up. It identified opportunities amid the challenges, scaled up business against headwinds, and forged ahead to bring up the competitiveness to a new level. Business Review for 2020 In the Reporting Period, on the same basis after the 2019 spin-off, the Group recorded a revenue of RMB76.68 billion, up by 33.9% year-on-year; a net profit of RMB5.07 billion, up by 42.1% year-on-year; a net profit attributable to the companys shareholders of RMB4.39 billion, up by 67.6% year-on-year; a debt/asset ratio of 65.1% and the net cash flow generated from operating activities of RMB16.7 billion. As stated above, the operating efficiency of the Company continued to improve and all the financial objectives were over-fulfilled for the year. TCL CSOT maintained a leading operating efficiency in the current period, as demonstrated by its revenue of RMB46.77 billion, rising by 37.6% year-on-year, and net profit of RMB2.42 billion, up by 151.1% year-on-year. Through technological reform and efficiency enhancement, the capacity of the t3 (LTPS) production line in Wuhan grew from 48K to 53K. The t4 production line (OLED) Phase I produced at full capacity while Phases II and III were under rapid contruction as scheduled. The t1t2 and t6 (G11) production lines in Shenzhen continued to operate at full capacity for strong sales. Especially, the capacity of the t6 production line increased from 90K to 98K. The shipment area of large-size products climbed by 32.9%. Thanks to the increasing market demand for LCD products across the world, prices of large-size LCD panels began to rise in June, boosting the operating profit of TCL CSOT month by month. TCL CSOT constantly raised its R&D investments in new display technologies, such as printed OLED, QLED, Micro-LED and related key materials and equipment, and made a great stride forward. In the Reporting Period, the PCT applications of the Company increased by 1,536 and the accumulated PCT applications reached 12,797. Meanwhile, the company made a strategic investment in JOLED Inc., aiming to expand the footprint in next-generation display technologies. TCL Technology Group Corporation Annual Report 2020 3 During the Reporting Period, the Group successfully acquired Tianjin Zhonghuan Electronics Group Co., Ltd. (Zhonghuan Electronics), which holds a controlling interest in Tianjin Zhonghuan Semiconductor Co., Ltd. (002129.sz) and Tianjin Printronics Circuit Corporation (002134.sz) respectively, as well as other assets including Zhonghuan Computer. Following the acquisition in late September, Zhonghuan Electronics has been included in the consolidated financial statements since October 2020. Through the acquisition, the Group has entered the industries of semi-conductor photovoltaic and semi-conductor materials. Business Forecast for 2021 In 2021, imbalance between the supply and demand of LCD panel is expected to remain, due to the short of chips and glass and the delayed new capacity. It is predicted that product prices will remain high in the first half of the year, while the second half will witness a balance of supply and demand. Higher demand for LTPS panels will come from vehicle display and IT products, as supply and demand come close to a balance. In recent years, the OLED capacity has been raised quickly. The monopolistic advantage of leading enterprises has turned increasingly apparent. Hence, the competition will be extremely fierce. Phase I of the t7(G11) plant of TCL CSOT in Shenzhen has been put into production. The LCD and module plant of Samsung in Suzhou acquired by the Company are estimated to be consolidated in the second quarter of this year. In view of this, the shipment and revenue of LCD panels will jump significantly. The t3 (LTPS) production line of Wuhan CSOT has stepped into vehicle display and IT industries with positive performance. A 39.95% non-controlling interest of the t3 production line has been repurchased, lifting the profit in the current period. Though t4 still faces fierce competition in OLED, we will endeavor to improve our operating results. We expect a strong growth in both revenue and profitability of TCL CSOT in 2021. Zhonghuan Semiconductor will release its endogenous power through reform, while optimizing its development strategy, promoting innovation in products and technologies forward, and reinforcing quality and profitability. It is estimated that its business performance will go up continuously and contribute more to the revenue and profit of the Group this year. The industrial finance and investment business will help raise profit in line with the development plan. The operating results of Highly, TPC, and other businesses are expected to rise steadily. I am confident that the revenue and profit of the Group will increase remarkably this year. TCL Technology Group Corporation Annual Report 2020 4 Strategic Development Planning The Group has kept promoting business reform and transformation since 2017 to intensify its core competitiveness. In 2019, it completed the spin-off of businesses like terminal products, and focused on high-tech, heavy-asset and long-cycle industries. Business strategies, organizational procedures, and resource allocation were adjusted accordingly. The Group will further its business development in accordance with the operating strategy regarding improving operating quality and profitability, consolidating advantages and improving disadvantages, accelerating global layout, and driving development via innovation. The semi-conductor display business is a core business of the Group. Through the acquisition of Zhonghuan Semiconductor, the Group extended its presence to the semi-conductor photovoltaic and semi-conductor materials industry. The above two industries own the features of high technology, huge investment, and a long industrial cycle. In the meantime, long-term strategic management, business capacity across the industrial cycle, and constant financing ability are a must. Furthermore, we must maintain a technological leadership, achieve the best business scale, and plan development strategies with the goal of global leadership. These are exactly the core capabilities and business logic of the Group. The reason why we have chosen these two core industries lies in that China has built up an industry scale and a competitive edge across the globe in the semi-conductor photovoltaic and in LCD field of semi-conductor display industries. Moreover, Zhonghuan Semiconductor and TCL CSOT have distinguished themselves to become industry leaders. With the growth in global demand and industry concentration, more opportunities and challenges will be brought. The 9205 five-year strategic development plan of the Group specifies that Zhonghuan Semiconductor will reinforce its strengths in monocrystalline silicon products, improve its capacity in the photovoltaic industrial chain, and intensify its global business capacity in order to meet the dual goals of global leadership in the photovoltaic industry and national leadership in the semi-conductor silicon-wafer industry. Meanwhile, TCL CSOT is expected to improve its strengths in LCD and LTPS, make technical breakthroughs in new display technologies and materials so as to become a leading player in the semi-conductor display industry worldwide. TCLs industrial finance and investment business supports the development of the Groups other businesses and contributes steadily improving income. In terms of industrial finance, the Group features both highly efficient internal fund management and external financing and supply chain TCL Technology Group Corporation Annual Report 2020 5 financial services. With respect to capital and investment, TCL has established a differentiated competitive edge in the corresponding field and turned capital and investment into a core business. In short, the core businesses of the Group consist of three business segments, namely, the semi-conductor display business, the semi-conductor photovoltaic and semi-conductor materials business, and the industrial finance and investment business. TCL selects suitable projects related to the core industrial chain and gradually perfects the industrial ecosystem. In addition, it aims to achieve the strategic goal of global leadership in the two core businesses. Subsidiaries including Highly and TPC embraced robust operations and sustainable profitability. The Group will continuously support their independent development and business expansion. Prospects There are great uncertainties in global economic recovery. Trade protectionism and unilateralism aggravate. I believe that: the advantages of China include social stability, efficient governance, sufficient economic vitality, huge domestic demand, rapid progress in science and technology, and an apparent relative competitive advantage in manufacturing. However, Chinas disadvantages lie in inadequate quality and profitability of economic development, insufficient core technical capabilities, rapid growth in government debts, and huge risks in finance and enterprise debts, which may affect Chinas economic progress. This year, China has put forward and implemented the 14th Five-year Plan to build a new development pattern. The government will continue to vigorously support the real economy, especially manufacturing, strengthen Chinas comparative advantage in manufacturing in the global economy and improve the competitiveness and value of enterprises. More capital will flow to manufacturing. In other words, the excellent manufacturing industry will access more resources. Chinas manufacturing industry has shifted its competitive edge from efficiency and cost control to products, technologies and global operations, and will usher in a new development period. Manufacturing constitutes the basis of Chinas economic competitiveness. Based on the established industry foundation and rapid growth in domestic demand, Chinese enterprises will catch up with leading players in the high-tech manufacturing field and develop a competitive edge, which signifies both challenges and opportunities. Personally, I am confident of the prospects of Chinas high-tech manufacturing! The semi-conductor display industry and the semi-conductor photovoltaic and semi-conductor TCL Technology Group Corporation Annual Report 2020 6 materials industry, as two strategic and emerging industries, embrace huge markets and promising prospects. We have laid a favorable foundation and accumulated strength in the two industries. TCL will embark on new industry planning and distribution in conformity with the 9205 strategic plan. The Board has proposed a final dividend of RMB1.20 per 10 shares, in light of the consistent dividend payout policy of the Group. I would like to express my sincere gratitude to all shareholders and partners for their trust and support, and to thank all employees for their efforts! Li Dongsheng 11 March 2021 TCL Technology Group Corporation Annual Report 2020 7 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. All the Companys directors have attended the Board meeting for the review of this Report and its summary. And all the Companys supervisors have attended the meeting of the Supervisory Committee for the review of this Report and its summary. The Board has approved a final dividend plan for the ordinary shareholders as follows: based on the share capital of 13,546,581,599 shares on 10 March 2021 that are eligible for profit distribution (the total share capital of 14,030,788,362 shares minus the 484,206,763 shares in the Companys special securities account for repurchase that are not eligible for profit distribution), a cash dividend of RMB1.2 (tax inclusive) per 10 shares is to be distributed to the shareholders, totaling RMB1,625,589,791.88. The retained earnings of RMB7,145,804,477.12 will carry forward for future distribution. Meanwhile, there will be no bonus issue from either profit or capital reserves for the year under review. Where any changes occur, before the implementation of the dividend plan, to the share capital of the Company due to any convertible bonds-to-stock programs, share repurchases, exercises of equity incentives, new share issues in refinancing, etc., the dividend will be adjusted according to the principle of “adjusting the total payout amount under the same dividend ratio”, subject to the actual payout amount. Mr. Li Dongsheng, the Chairman of the Board, Ms. Du Juan, the person-in-charge of financial affairs (Chief Financial Officer), and Mr. Xi Wenbo, the person-in-charge of the financial department, hereby guarantee that the financial statements carried in this Report are factual, accurate and complete. This Report 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. TCL Technology Group Corporation Annual Report 2020 8 Definitions Term Definition The “Company”, the “Group”, “TCL”, “TCL Tech.” or “we” TCL Technology Group Corporation and its consolidated subsidiaries, except where the context otherwise requires. The “Current Period” The period from 1 January 2020 to 31 December 2020. The significant assets spin-off The significant assets spin-off approved at the 13th meeting of the 6th Board of Directors on 7 December and the First Extraordinary General Meeting of 2019 on 7 January 2019, which was settled in April 2019. TCL CSOT TCL China Star Optoele
