TCL科技：2021年第一季度报告全文（英文版).PDF

1 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 FIRST QUARTERLY REPORT 2021 27 April 2021TCL Technology Group Corporation First Quarterly Report 2021 2 Part I Important Notes, Table of Contents and Definitions The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors, supervisors and senior management of TCL Technology Group Corporation (hereinafter referred to as the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents of this Report, and shall be jointly and severally liable for any misrepresentations, misleading statements or material omissions therein. All the Companys directors have attended the Board meeting for the review of this Report, and all the Companys supervisors have attended the meeting of the Supervisory Committee for the review of this Report Mr. Li Dongsheng, the Chairman of the Board, Ms. Du Juan, the person-in-charge of financial affairs (Chief Financial Officer), and Mr. Xi Wenbo, the person-in-charge of the financial department, hereby guarantee that the financial statements carried in this Report are factual, accurate and complete. This Report has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail. TCL Technology Group Corporation First Quarterly Report 2021 3 Table of Contents Part I Important Notes, Table of Contents and Definitions . 2 Part II Key Corporate Information . 4 Part III Directors Report . 9 Part IV Significant Events . 17 Part V Financial Statements . 26 TCL Technology Group Corporation First Quarterly Report 2021 4 Part II Key Corporate Information I Key Financial Information Indicate whether there is any retrospectively restated datum in the table below. Yes No Q1 2021 Q1 2020 Change (%) Revenue (RMB) 32,143,561,563 13,742,129,162 133.91% Net profit attributable to the companys shareholders (RMB) 2,403,729,935 408,125,802 488.97% Net profit attributable to the companys shareholders before non-recurring gains and losses (RMB) 2,123,056,041 -109,881,642 2032.13% Net cash generated from/used in operating activities (RMB) 8,003,201,979 2,299,183,493 248.09% Basic earnings per share (RMB/share) 0.1781 0.0316 463.61% Diluted earnings per share (RMB/share) 0.1713 0.0302 467.22% Weighted average return on equity (%) 7.07% 1.35% 5.72% 31 March 2021 31 December 2020 Change (%) Total assets (RMB) 274,693,487,644 257,908,278,887 6.51% Owners equity attributable to the companys shareholders (RMB) 35,224,374,002 34,107,795,454 3.27% The total share capital at the end of the last trading session before the disclosure of this Report: Total share capital at the end of the last trading session before the disclosure of this Report (share) 14,030,788,362 Fully diluted earnings per share based on the latest total share capital above (RMB/share) 0.1713 Non-recurring gains and losses: Unit: RMB Item Q1 2021 Note Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) -14,935,921 Not applicable Government subsidies charged to current profit or loss (exclusive of government subsidies given in the Companys ordinary course of business at fixed quotas or amounts as per the governments uniform standards) 302,185,840 Not applicable TCL Technology Group Corporation First Quarterly Report 2021 5 Gain or loss on fair-value changes in held-for-trading and derivative financial assets and liabilities & investment income from disposal of held-for-trading and derivative financial assets and liabilities and other debt investments (exclusive of effective portion of hedges that arise in the Companys ordinary course of business) 25,600,678 Not applicable Non-operating income and expense other than the above 113,649,860 Not applicable Less: Corporate income tax 73,184,923 Not applicable Non-controlling interests (net of tax) 72,641,640 Not applicable Total 280,673,894 - Explanation of why the Company reclassifies as recurrent a non-recurring gain/loss item defined or listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the PublicNon-Recurring Gain/Loss Items: Applicable Not applicable II Total Number of Shareholders and Holdings of Top 10 Shareholders at the End of the Reporting Period 1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as Holdings of Top 10 Shareholders Unit: share Number of ordinary shareholders at the period-end 570,474 Number of preference shareholders with resumed voting rights at the period-end (if any) - Top 10 shareholders Name of shareholder Nature of shareholder Shareholding percentage Total shares held Restricted shares held Shares in pledge or frozen Status Shares Li Dongsheng and his acting-in-concert party Domestic natural person/general legal person 8.26% 1,158,599,393 610,181,602 Put in pledge by Li Dongsheng 144,000,000 Put in pledge by Jiutian Liancheng 344,899,521 Huizhou Investment Holding Co., Ltd. State-owned legal person 5.30% 743,139,840 - - - Wuhan Optics Valley Industrial Investment Co., Ltd. State-owned legal person 3.65% 511,508,951 511,508,951 - - Hong Kong Securities Foreign legal person 3.26% 457,850,083 - - - TCL Technology Group Corporation First Quarterly Report 2021 6 Clearing Company Ltd. China Securities Finance Corporation Limited Domestic general legal person 2.66% 373,231,553 - - - Tibet Tianfeng Enterprise Management Co., Ltd. Domestic general legal person 1.76% 247,284,337 - - - Fang Deji Domestic natural person 1.47% 206,130,576 Zhejiang Yiwu Tanzhen Investment Management Partnership (Limited Partnership)Loyal Valley (Tanzhen) Value China Exclusive Private Securities Investment Fund Fund, wealth management product, etc. 1.03% 145,169,128 National Social Security Fund-Portfolio 601 Fund, wealth management product, etc. 0.93% 129,785,014 - - - CITIC SecuritiesCITIC BankCITIC Securities Dividend Value One-Year Mixed Collective Asset Management Plan Fund, wealth management product, etc. 0.58% 80,906,050 - - - Top 10 unrestricted shareholders Name of shareholder Unrestricted shares held at the period-end Shares by type Type Shares Huizhou Investment Holding Co., Ltd. 743,139,840 RMB-denominated ordinary stock 743,139,840 Li Dongsheng and his 548,417,791 RMB-denominate 548,417,791 TCL Technology Group Corporation First Quarterly Report 2021 7 acting-in-concert party d ordinary stock Hong Kong Securities Clearing Company Ltd. 457,850,083 RMB-denominated ordinary stock 457,850,083 China Securities Finance Corporation Limited 373,231,553 RMB-denominated ordinary stock 373,231,553 Tibet Tianfeng Enterprise Management Co., Ltd. 247,284,337 RMB-denominated ordinary stock 247,284,337 Fang Deji 206,130,576 RMB-denominated ordinary stock 206,130,576 Zhejiang Yiwu Tanzhen Investment Management Partnership (Limited Partnership)Loyal Valley (Tanzhen) Value China Exclusive Private Securities Investment Fund 145,169,128 RMB-denominated ordinary stock 145,169,128 National Social Security Fund-Portfolio 601 129,785,014 RMB-denominated ordinary stock 129,785,014 CITIC SecuritiesCITIC BankCITIC Securities Dividend Value One-Year Mixed Collective Asset Management Plan 80,906,050 RMB-denominated ordinary stock 80,906,050 Bank of Communications Co., Ltd.China Southern Growth Pioneer Mixed Securities Investment Fund 77,368,741 RMB-denominated ordinary stock 77,368,741 Related or acting-in-concert parties among the shareholders above Being acting-in-concert parties upon the signing of the Agreement on Acting in Concert, Mr. Li Dongsheng and Xinjiang Jiutian Liancheng Equity Investment Partnership (Limited Partnership) (hereinafter referred to as “Jiutian Liancheng”) are the biggest shareholder of the Company with a total of 1,158.5994 million shares. Top 10 shareholders involved in securities margin trading (if any) Shareholders Fang Deji and Zhejiang Yiwu Tanzhen Investment Management Partnership (Limited Partnership)Loyal Valley (Tanzhen) Value China Exclusive Private Securities Investment Fund held shares in the Company in margin accounts. Note: The top 10 shareholders in the table above do not include “The Securities Account of TCL Technology Group Corporation for Repurchases”. As of the end of the Reporting Period, there were 484,206,763 shares in the account. Indicate whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conducted any promissory repo during the Reporting Period. Yes No No such cases in the Reporting Period. 2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them Applicable Not applicable TCL Technology Group Corporation First Quarterly Report 2021 8 Part III Directors Report I. Overview In the Reporting Period, the rollout of the COVID-19 vaccine and the implementation of relaxed policies contributed to the recovery of the global economy. However, the adjustment of relations among major countries continued to disturb the trade order, increasing the instability of the industrial chain, and accelerating the differentiation and restructuring of the global economic pattern. The manufacturing, as a source of Chinas economic competitiveness and comparative competitive advantage, will usher in a new stage of development. In the face of the challenges and opportunities, the Company continued its efforts in line with the spirit of “Ramping up, Catching up and Going all out to be A Global Leader”, the requirements of the 9205 strategic development plan and the operating strategy of “improving operating quality and profitability, consolidating advantages and improving disadvantages, accelerating global layout, and driving development via innovation” to promote the two core businesses, namely the semi-conductor display business and the semi-conductor photovoltaic and semi-conductor materials business, to be global leading industries. In the first quarter of 2021, the Company recorded a revenue of RMB32.144 billion, up by 133.91% year-on-year; a net profit of RMB3.236 billion, up by 10.96 times year-on-year; a net profit attributable to the Companys shareholders of RMB2.404 billion, up by 488.97% year-on-year. TCL CSOT and Zhonghuan Semiconductor had great performance in these two core industries. The semi-conductor display industry had constant improvement in the competition pattern and the supply and demand relationship, resulting in the price rise; the new production line is raising its mass production, and the scale effect and market position are increasing, product portfolio in high-end market and medium-size products is expanded. TCL CSOT recorded a net profit of RMB2.396 billion, up by RMB2.57 billion year-on-year and by 29.12% quarter-on-quarter, including a quarter-on-quarter net profit increase of 52.96% from large-size products, achieving continuously leading efficiency and profitability. The main raw materials in the photovoltaic industry continued to increase in price, and the competition pattern tends to be more complex. TCL Technology Group Corporation First Quarterly Report 2021 9 Zhonghuan Semiconductor redefined its corporate development strategy, and reduced the costs, increased the capacity of existing equipment, improved product quality and consistency, and reduced raw material consumption per unit of product through technological innovation and improved manufacturing process. The total capacity of photovoltaic monocrystalline silicon product reached 60GW two months ahead of schedule, the market competitiveness, market share and profitability improved month by month. With continued global semiconductor shortage, Zhonghuan Semiconductor had accelerated growth in the business of raw materials used for power semiconductor products. The 8-12-inch large silicon wafers project ramped up smoothly, with a revenue increase of c. 80% year-on-year. Zhonghuan Semiconductor achieved a net profit of RMB743 million, up by 100.0% year-over-year. Looking into the rest of 2021, TCL CSOT and Zhonghuan Semiconductor will continue to grow robustly. Phase I of the t7 production line in Shenzhen will reach design capacity this year. 60% shares of Suzhou China Star Optoelectronics (t10) and 100% shares of Suzhou China Star Display (M10) were acquired, which will contribute to revenue of the Company from the second quarter of 2021; Moka International Limited will be included in the consolidated statements of the Company from the second quarter of 2021; t9 production line in Guangzhou will be a new driving force in medium-size field as the Board of Directors has approved it. Zhonghuan Semiconductor accelerated construction of phase V monocrystalline silicon project in Inner Mongolia, and Zhonghuan Phase VI 50GW(G12) project in Yinchuan, Ningxia Province was commenced as planned. In a new round of pattern reshaping driven by technological innovation, industrial ecosystem and ultimate efficiency in the PV industry, Zhonghuan Semiconductor stands out thanks to its accumulated technological advantages. Through the G12 platform and overlapped-cell products technological strength, the ecological resources of the fast-growing industrial alliance, and the first layout of advantageous production capacity, Zhonghuan Semiconductor is confident to complete the Double Operating Profit Plan in 2021. TCL Tech. will seize the golden period of global economic pattern adjustment and Chinas manufacturing development, and march forward to be a global industry leader with a stronger driving force for development! TCL Technology Group Corporation First Quarterly Report 2021 10 II. Core Business Analysis The business structure of the Company primarily consists of the semi-conductor display business, the semi-conductor photovoltaic and semi-conductor materials business, the industrial finance and investment business, as well as the other businesses. The Company will continue to optimize its business structure and further focus its resources on the development of the two core businesses, and achieve the strategic goal of global leadership in the two core businesses, namely the semi-conductor display and the semi-conductor photovoltaic and semi-conductor materials. (I) Semi-conductor display business The supply-demand relationship in the semi-conductor display industry was improved, industry consolidation was accelerated, product prices continued to rise, and the overall profitability of the industry was enhanced. TCL CSOT continued to adhere to established strategies and operating strategy, held the business bottom line of maximizing cost efficiency, continuously improved management capabilities and control systems to consolidate the global industry leadership in terms of efficiency and profitability. In the Reporting Period, TCL CSOT recorded a product sales area of 8.344 million square meters, up by 17.5% year-on-year; a revenue of RMB17.373 billion, up by 90.0% year-on-year; and a net profit of RMB2.39