TCL科技集团股份有限公司
TCL Technology Group Corporation
INTERIM REPORT 2026
August 2026Part I Important Notes Table of Contents and Definitions
The Board of Directors (or the "Board") the directors 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 Interim 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 does not propose to pay interim cash dividends issue bonus
shares or convert capital reserves into share capital for this interim period.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.Table of Contents
Part I Important Notes Table of Contents and Defin....1
Part II Corporate Information and Key Financial In... 5
Part III Management Discussion and Analysis ..........8
Part IV Corporate Governance Environment and Socia.. 36
Part V Significant Events .......................... 42
Part VI Changes in Shares and Information about Sh.. 54
Part VII Bonds ......................................62
Part VIII Financial Report ..........................67
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.Definitions
Term Refers to Definition
The “Company” the “Group” “TCL”
“TCL TECH.” or “we” Refers to TCL Technology Group Corporation
The “Reporting Period” “current period” Refers to The period from January 1 2026 to June 30 2026.TCL CSOT Refers to TCL China Star Optoelectronics Technology Co. Ltd.TCL Zhonghuan Renewable Energy Technology Co. Ltd. a majority-
TZE Refers to owned 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
TPC Refers to Tianjin Printronics Circuit Corporation a majority-owned subsidiary of theCompany listed on the Shenzhen Stock Exchange (stock code: 002134.SZ)
Highly Refers to Highly Information Industry Co. Ltd. a holding subsidiary of theCompany 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 TCLCSOT
t3 Refers to The generation 6 (or G6) LTPS-LCD panel production line at WuhanCSOT
t4 Refers to The generation 6 (or G6) new LTPS-AMOLED display production line atWuhan CSOT Bandaoti
t5 Refers to The generation 6 (or G6) new display production line at Wuhan CSOT
t6 Refers to The generation 11 (or G11) new TFT-LCD display production line atShenzhen CSOT Bandaoti
t7 Refers to The generation 11 (or G11) new ultra high definition display productionline at Shenzhen CSOT Bandaoti
t8 Refers to The generation 8.6 (or G8.6) printed OLED production line at TCL CSOT
t9 Refers to The generation 8.6 (or G8.6) new oxide display production line atGuangzhou 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 GuangzhouCSOT
t12 Refers to The generation 5.5 (or G5.5) printed OLED production line at WuhanCSOT
RMB Refers to Renminbi
Part II Corporate Information and Key Financial Information
I. Corporate Information
Stock name TCL TECH. Stock code 000100
Stock abbreviation before change
-
(if any)
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
10/F Tower G1 International E Town TCL Science Park 1001 Nanshan District
Office address
Shenzhen Guangdong Province China
Tel. 0755-33311666
Email address ir@tcl.com
III. Other Information
1. Contact Information of the Company
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 2025 Annual Report for details.
2. Media for Information Disclosure and Place Where This Report is Lodged
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 2025 Annual Report for
details.
3. Other Information
Whether other information changed during the Reporting Period
□Applicable Not applicable
IV. Key Accounting Data and Financial Indicators
Indicate whether there is any retrospectively adjusted or restated datum in the table below
□Yes No
H1 2026 H1 2025 Change
Operating revenue (RMB) 88648186929 85560004497 3.61%
Net profits attributable to the
company's shareholders 3808272967 1883499452 102.19%
(RMB)
Net profits attributable to the
company's shareholders after 3139882317 1558735448 101.44%
non-recurring gains and
losses (RMB)
Net cash generated from 17622151962 27273981394 -35.39%
operating activities (RMB)
Basic earnings per share 0.1861 0.1014 83.53%
(RMB/share)
Diluted earnings per share 0.1831 0.1003 82.55%
(RMB/share)
Weighted average return on 6.19% 3.54% Increase by 2.65 percentage
equity (%) points YoY
End of the Reporting Period December 31 2025 Change
Total assets (RMB) 365144968892 372738314312 -2.04%
Net assets attributable to
shareholders of the listed 63567789134 61432756524 3.48%
company (RMB)
V. Accounting Data Differences under Chinese Accounting Standards for Business
Enterprises (CAS) International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Differences in Net Profits and Equity under CAS and IFRS
□Applicable Not applicable
There is no difference in net profits and net assets between the financial statements prepared in accordance with IFRS and CAS for
the Reporting Period of the Company.
2. Differences in Net Profits and Equity under CAS IFRS and Foreign Accounting Standards
□Applicable Not applicable
There is no difference in net profits and net assets between the financial statements prepared under CAS IFRS and Foreign
Accounting Standards for the Reporting Period of the Company.
3. Reasons for Accounting Data Differences Above
□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 of impairment 532067903
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 1225850236
are granted based 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 -59051
financial assets and financial liabilities
except for the effective hedging business
related to the Company’s normal business
operations
Reversal of impairment provisions for
receivables subject to individual -
impairment testing
Non-operating income and expenses other 162931448
than the above
Other gain and loss items that meet the
definition of non-recurring gains and -
losses
Less: Amount affected by income tax 288121804
Amount affected by equity of 964278082
minority shareholders (net of tax)
Total 668390650
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.Part III Management Discussion and Analysis
I. Main Businesses of the Company during the Reporting Period
Since the start of the year escalating international geopolitical conflicts and surging upstream
energy prices have reignited upward pressure on inflation. Against this backdrop the momentum
of global economic growth has weakened with macroeconomic uncertainties increasing
substantially. In the face of external challenges the Company focused on three key business
pillars including displays new energy photovoltaics and other silicon materials. We
continuously strengthened the operations barriers characteristic of high-tech heavy-asset and
long-cycle industries anchored our leading strategy and pursued sustainable high-quality
development.During the Reporting Period the Company achieved operating revenue of RMB 88.65 billion
representing a year-on-year increase of 3.6%. Net profit attributable to shareholders of the
Company amounted to RMB 3.81 billion representing a substantial year-on-year surge of 102.2%
while operating cash flow reached RMB 17.62 billion. As of the end of the Reporting Period the
Company’s debt-to-asset ratio stood at 65.0% an increase of 0.8 percentage points from the end
of the previous Reporting Period; cash and cash equivalents at the end of the Reporting Period
were RMB 22.22 billion.II. Operations Performance of the Company's Core Businesses During the Reporting Period
The Company was deeply engaged in leading edge manufacturing industries characterized by
high technology heavy assets and long cycles with displays new energy photovoltaics and other
silicon materials at its core and continuously promoted technological innovation and industrial
advancement supporting the strategic goals of global leadership.(I) Display Business
1. TCL CSOT
Industry Development and Operating Performance
In the first half of 2026 the global display industry generally maintained stable operations.Affected by geopolitical conflicts and rising raw material and memory prices user-end demand
for consumer electronics came under temporary pressure with shipments of products such as
smartphones and notebook computers posting a decline. Meanwhile trends toward larger size
TVs multi display deployments of vehicle mounted devices and growing penetration of
high end displays continued to underpin area based demand for display panels. According to
third-party forecasts the total shipment area of global display panels is expected to remain
broadly flat in 2026 while demand for TV and vehicle mounted display panels is set to rise by
roughly 2% and 6% respectively. The industry is projected to follow a development pattern
characterized by “pressure on shipment volume stable shipment area and structural upgrading.”
The LCD industry continued to pursue an on-demand production strategy while inefficient
overseas capacity was phased out. The trend toward larger and higher-end TVs as well as the
expansion of applications such as commercial and vehicle-mounted displays continued to drive
growth in demand for panel area. Leveraging its mature industrial ecosystem significant cost
advantages and continuous iteration capabilities LCD further consolidated its mainstream
position in the large-sized display segment. OLED accelerated its penetration into the
medium size segment covering notebook computers tablets monitors and vehicle-mounted
displays. Mini LED saw accelerated adoption while Micro LED continued its exploration
toward industrialization. Against the backdrop of an evolving supply landscape expanding
application scenarios and accelerated industrialization of new technologies industry wide
competition has shifted away from capacity expansion toward a contest of comprehensive
strength centered on technological innovation product value operating efficiency and cash flow
quality.During the Reporting Period amid external pressures from rising memory prices and
diverging terminal demand the Company remained committed to value-oriented operationsunder the core theme of “on-demand production structural optimization and efficiencyenhancement.” TCL CSOT achieved operating revenue of RMB 50.27 billion and net profit of
RMB 3.90 billion. Net profit attributable to shareholders of TCL TECH. amounted to RMB 3.28
billion representing a year-on-year increase of 24.8%. The earlier acquisition of minority
interests in Shenzhen CSOT Bandaoti increased the Company’s equity interests in the core t6 and
t7 assets thereby enhancing the contribution of these quality assets to profits attributable to
shareholders of the listed company. The acquisition of the minority interests in t9 progressed
smoothly with the equity transfer recently completed. This transaction will further enhance the
contribution of the quality t9 asset to profits attributable to shareholders of the listed company.
(1) LCD Business Maintained Its Stable Leading Position While IT and Vehicle-
Mounted Display Businesses Achieved Rapid Growth
Leveraging its portfolio of large- medium- and small-sized production lines the Company
continued to optimize its product and customer mix. In the large-sized display segment the
Company capitalized on the trend toward larger and higher-end TVs. During the Reporting Period
the average shipment size of its TV panels reached 55.3 inches 2.9 inches above the industry
average. Through coordination across multiple production lines improved manufacturing
efficiency and refined supply chain management the Company further enhanced the profitability
of its LCD business.In the medium size segment as t9 further released its capacity and strengthened capacity
coordination with t11 shipments of high end products including high mobility oxide displays
grew rapidly driving t9’s net profit to more than double year on year. The Company
maintained its global No.1 market share in e sports monitor panels. It launched the world’s first
native 1080p 1000Hz monitor. Building on its leading position in the consumer e sports market
it further forayed into the professional e sports segment and became the official display for the
2026 CrossFire Pro League (CFPL). The Company achieved stepwise breakthroughs in oxide
technology—from conventional oxide to high-mobility oxide 30 and further to ultra-high-
mobility oxide 50—and realized large-scale adoption in mainstream tablet devices. These
technological and product strengths drove market share gains against broader market headwinds.Notebook panel shipments to leading customers ramped up smoothly and grew rapidly. In the
second quarter the Company lifted its global notebook panel ranking from fourth to second
while retaining the world’s second largest market share for tablet panels. Breakthroughs in
medium sized panels including notebook panels marked TCL CSOT’s successful forging of a
second growth engine for its display business. This further refined its full size application
footprint and reinforced its position as a comprehensive leader in the display industry.The vehicle-mounted devices maintained rapid growth becoming the fastest-growing
segment of the Company’s medium-sized display business. The Company’s share of LTPS
vehicle-mounted panel shipment area has remained the largest worldwide since Q4 2025 while its
shipment volume grew by more than 50% year on year in H1 2026. The Company continued to
expand to cover high-value applications such as rear-seat displays armrest displays and P-HUDs
accelerating its evolution from a supplier of stand alone display products to a provider of
integrated display solutions for intelligent cockpits. Its innovative “Safe Driving Triple-Screen”
solution extended cockpit safety from passive protection to active sensing and coordinated
interaction. By capitalizing on the growth in exports by Chinese automakers and achieving
breakthroughs with internationally renowned automakers the Company continued to optimize the
customer and regional mix of its vehicle-mounted devices. Revenue increased by 46% year on
year further enhancing its capabilities in serving and managing customers globally.
(2) FMM OLED Came Under Periodic Pressures While Operating Quality Improved
Quarter by Quarter
Affected by rising memory prices and weakening smartphone demand the FMM OLED
business came under periodic pressures and recorded greater losses. The Company sharpened its
focus on high-value-added technologies (foldable displays LTPO PLP privacy displays and
Tandem) and expanded into diverse applications such as tablets wearables and
vehicle mounted displays. It also drove progress in material localization yield improvement
and cost control. In Q2 the OLED business’s operating margin improved quarter on quarter with
operating quality rising steadily.The Company has successfully ramped up mass production and deliveries of foldable
products to branded customers demonstrating end to end capabilities across technology R&D
customer qualification and high volume manufacturing. Looking ahead the Company will
capitalize on market opportunities for foldable products and continue to expand its coverage of
brand customers and mass-production projects. Meanwhile the Company has been steadily
advancing key technological iterations in areas such as panel structure support materials hinge
compatibility and film-layer design. These efforts are aimed at further improving crease
performance reliability and display quality thereby continuously enhancing product
competitiveness and expanding market share.
(3) Commercialization of Printed OLED and MLED Progressed in an Orderly Manner
The Company in collaboration with MSI has jointly launched the industry's first printed
OLED desktop monitor targeting the mainstream consumer market marking a pivotal expansion
of printed OLED commercialization from professional-grade displays into the consumer
electronics segment. Currently the yield and cost of the relevant products have reached the
standards required for mature mass production. The Company is advancing the validation of
printed OLED products for IT applications—including monitors and notebooks—with multiple
leading end device brands with all developments in full alignment with mainstream market
specifications. Product maturity and commercial validation results have already met the
mass production requirements of tier 1 customers. Leveraging the t12 production line the
Company achieved volume production and shipment of IT e-sports products. Multiple projects
will successively enter mass production during the year steadily expanding customer coverage
and laying the groundwork for the large-scale production of t8. On May 8 2026 the main
structure of the Guangzhou t8 project reached its topping-out milestone ahead of schedule and
mass production is expected to commence in Q4 2027. Going forward t8 will leverage its scale
manufacturing advantages to primarily serve mainstream consumer electronics while t12 will
target differentiated high value added products. This will deliver a well coordinated
capacity layout with complementary functional roles.In the MLED business the Company completed the equity transfer of Fujian Zhaoyuan
Optoelectronics Co. Ltd. and renamed it Fuzhou Huazhao Optoelectronics Co. Ltd. The
integration of upstream LED chip technologies and capacity began to deliver results driving a
significant improvement in operating performance. In July the Company established Shenzhen
Huazhao Xingguang Technology Co. Ltd. to accelerate the development of advanced LED chip
and packaging capacity further improving its vertically integrated “chip-packaging-module”
layout. Phase I of the Suzhou COB direct display project has achieved full capacity
production. Core equipment for Phase II began moving in in May with mass production
commenced in August. Going forward the Company will continue to upgrade its Mini LED
backlight and direct-display products and strengthen upstream and downstream coordination in
technology capacity and customer development thereby enhancing cost competitiveness and
market performance.
(4) AI Deeply Empowered the Operating System While New Businesses Achieved
Breakthroughs on Multiple Fronts
The Company continued to advance its “AI for Real-World Applications” initiative.Underpinned by its five-star AI architecture comprising “one data lake one large model and threeplatforms” it embedded AI across material R&D product design process optimization quality
management supply chains and operating decisions shifting R&D from an experience-driven
approach toward one powered by data and models and advancing manufacturing from automation
and digitalization toward intelligence.New businesses achieved breakthroughs on multiple fronts while the specialized display
business maintained rapid growth. LTPS projector products secured a top two position in the
industry by market share. Following the acquisition of Hunan Chuangke Photoelectric the
Company accelerated development of LCOS projection and 3D printing light engine
technologies. For its e paper business it built a dual site manufacturing footprint with a
domestic site for medium and large sized products and a Vietnamese site for small sized
products. The Company commenced construction of a vehicle-mounted dimming glass project
with sample production planned for the second half of the year. XR products achieved stable
shipments to leading customers while the development of silicon-based LED technology and
plans for mass-production lines moved forward at an accelerated pace.
(5) Declining Depreciation and an Orderly Reduction in Capital Expenditure Enhanced
Profitability and Cash Flow Quality
As certain mature production lines successively enter periods of declining depreciation the
Company's overall depreciation expenses are expected to decrease in stages from 2026 onward.This will unlock greater profit contributions from existing assets and enhance returns on assets.Going forward the Company expects its overall capital expenditure intensity to decline and will
take a disciplined approach to new capital expenditures while strengthening investment return and
capital efficiency management. Stable operating cash flow coupled with the orderly moderation
of capital expenditures will continue to enhance the quality of the Company’s free cash flow.Future Development Outlook
Seizing the historic opportunities arising from AI's transformation of smart terminals
advanced manufacturing and compute infrastructure the Company will leverage its display core
to advance display technology reinvent its operating model and expand into shared capability
areas—accelerating its shift from a global display leader to a pivotal human-machine interaction
interface and advanced manufacturing platform in the AI age.First redefining the value of displays. For the new generation of intelligent terminals in the
AI era the Company will drive the transformation of displays from passive information media
into intelligent sensing and interactive interfaces. In response to the demands of AI terminals for
low power consumption parallel multitasking and multi-window interaction the Company will
continue to enhance its capabilities in variable refresh rate partitioned driving high image quality
low power consumption multiple form factors and system integration. These efforts will drive
product upgrades toward "deep adaptation of panels to AI scenarios" continuously expand the
boundaries of display applications and increase per-screen value as well as customer stickiness.Second building a product portfolio spanning multiple technology cycles. In large-size
LCD the Company will maintain on-demand production while pushing toward larger formats and
higher-end products to strengthen its earnings and cash flow base. Medium-size displays will act
as a key growth driver rapidly penetrating IT vehicle mounted and specialty display markets
to broaden both market presence and revenue scale. FMM OLED efforts will center on improving
customer product and cost structures to lift the high-end product mix and operational quality
while printed OLED and MLED will speed through validation production ramp-up and
commercial scaling. Drawing upon its strengths across multiple technology paths including HVA
HFS and printed OLED the Company will deliver differentiated solutions for various product
positioning and application scenarios advancing from leadership in LCD alone toward
comprehensive leadership across multiple display technologies.Third restructuring the advanced manufacturing system with AI. The Company will
embed data models and AI agents throughout its operating value chain and actively explore
pathways for building “AI-native factories” and an “AI-native organization.” Since 2023 the
Company has independently developed and iterated the X-Intelligence large model focusing on
vertical display scenarios. In relevant automated evaluations and assessments by industry experts
its vertical-domain understanding and deep-reasoning capabilities outperformed mainstream
general-purpose overseas large models such as Gemini 3.1 Pro and GPT-5.5 high placing it at the
forefront of the global display industry. In R&D the Company is fostering integrated
collaboration across R&D manufacturing and sales to strengthen "do it right the first time"
capabilities. In manufacturing it is pushing toward line-level autonomous perception self-
diagnostics and intelligent decision-making. In operations it is evolving its models from reactive
execution to proactive insight—enhancing predictive and decision-making capabilities across the
full spectrum of scenarios. In parallel the Company will strengthen model reliability closed-loop
industrial data systems AI-agent engineering capabilities and collaboration mechanisms
involving domain experts building core competitiveness for the intelligent era.Fourth unlocking a second growth space through shared foundational technologies.Drawing on its core technological capabilities in large-size glass substrate processing thin-film
deposition photolithography etching automated handling and smart manufacturing the
Company is pushing forward with critical process validation for glass-based packaging. The
Company has assembled a dedicated team and is collaborating with target customers on technical
exchanges and joint R&D to address key process challenges including TGV copper filling stress
control in multilayer structures and advanced glass substrate processing. It plans to exhibit
relevant samples in H2 2026 and begin preparations for a pilot R&D platform. Going forward the
Company will coordinate the adaptation of upstream glass materials and the validation of key
equipment for processes such as through-hole formation electroplating and CMP polishing. It
will also conduct commercial validation focusing on functionality reliability mass-production
yield and cost. Meanwhile the Company is actively exploring opportunities in high-speed optical
interconnect and optoelectronic integration strengthening its technology reserves in perovskites
and pursuing technology development and validation with leading customers in response to the
visual perceptual and interactive demands of embodied intelligence. This creates a tiered
business architecture in which "mature businesses generate value growth businesses improve the
portfolio mix and forward-looking ventures open up new horizons."
The Company will set key milestones for technology validation customer introduction mass-
production yield and investment returns committing resources in stages and making dynamic
adjustments based on validation results. While safeguarding the operational and financial security
of its core businesses it will optimize its business portfolio and cultivate long-term growth drivers.
2. Moka Technology
Moka Technology is a technology manufacturer with a global industrial footprint. It
specializes in the ODM business involving the R&D design and manufacture of intelligent
display terminal products such as TVs monitors and commercial displays and is the world’s
largest TV ODM manufacturer. During the Reporting Period Moka Technology achieved
operating revenue of RMB 9.48 billion. Its TV ODM business ranked first globally in shipment
volume for 15 consecutive quarters. Monitor ODM shipments increased by 7% year on year
ranking fifth globally while commercial display shipments grew by 37% providing fresh impetus
to performance growth.(II) New Energy Photovoltaics Business
The Company’s new energy photovoltaic business remained firmly focused on four priorities:
consolidating its competitiveness in crystal and wafer production advancing its integration
strategy into a new stage accelerating the development of the BC cell ecosystem and patent
operations and pressing ahead with global expansion. These initiatives aimed to bolster
capabilities for navigating the industry cycle. During the Reporting Period the new energy
photovoltaic business achieved sales revenue of RMB 11.27 billion representing a year-on-year
increase of 6.0% while its losses narrowed by 29.6% compared with H1 2025.The photovoltaic materials business aligned production with actual demand and continued to
optimize its supply chain system reducing costs and enhancing efficiency through process
improvements and tighter controls over energy consumption and workforce productivity. During
the Reporting Period wafer shipments reached 53.9 GW securing the industry’s largest market
share while EBITDA improved by RMB 290 million year on year. Building on its long-standing
technological expertise and industry-chain synergies the Company strengthened the
competitiveness of its crystal and wafer products through differentiation and premiumization.Meanwhile the Company capitalized on growing overseas demand by expanding its customer
base in markets such as India and Turkey. The resulting surge in overseas shipments and revenue
improved operating quality and supported a recovery in profitability.During the Reporting Period module shipments rose 29% year on year despite broader
market headwinds. Operating revenue increased by approximately 47% to RMB 5.29 billion
accompanied by year-on-year improvements in average selling prices and gross profit. The cell
and module business continued to optimize its product and customer mix increasing both the
shipment contribution of premium products and sales in overseas markets. To address the market
demand for high power high efficiency high reliability and multi-scenario applications the
Company established a portfolio of high-efficiency products including half-cut and multi-cut
offerings. High-efficiency products—including new BC and half-cut products—accounted for
over 15% of total shipments. The Company's overseas business also capitalized on opportunities
in key regional markets delivering substantial shipment growth across Europe the Middle East
Australia and New Zealand and Southeast Asia.DAS Solar Co. Ltd. has been consolidated into the Company's financial statements starting
from the third quarter. Following the consolidation the Company's production capacity stands at
20GW for cells and 50GW for modules. By integrating R&D manufacturing sales supply chain
and operational management systems the Company will fully leverage the synergies between the
two entities further enhancing its overall competitiveness. To meet the continued growth in
demand for BC products the Company is drawing upon its established technologies core patent
portfolio process expertise and customer base to accelerate the BC conversion of all its cell
capacity and 50% of its module capacity. The upgraded capacity is expected to come online
successively in the third quarter before entering the ramp-up stage. The Company is also actively
expanding into high-value market segments both domestically and internationally and is expected
to continue gaining market share while improving profitability.(III) Silicon Materials Business
Zhonghuan Advanced serves as the operating entity of the Company’s silicon materialsbusiness. During the Reporting Period Zhonghuan Advanced remained steadfast in its “Lead atHome Compete Globally” strategy. Focusing on the requirements of advanced-process logic
chips advanced memory chips and high-end power chips it continued to advance the R&D
customer certification and volume introduction of relevant wafer products while optimizing its
product and customer mix. During the Reporting Period Zhonghuan Advanced achieved
shipments of 689 MSI representing a year-on-year increase of 17%. Of these shipments
shipments of 12-inch products accounted for 57.8% of the total while those of 8-inch and below
accounted for 42.2%. Certification and customer qualification with key clients proceeded as
planned. The Company recorded operating revenue of RMB 3.04 billion of which 12-inch
products contributed RMB 1.65 billion. While the Company recorded a net loss of RMB 86
million for the period its operational scale and profitability metrics remained at the forefront of
the domestic industry.Surging demand for AI and computing power has fueled growth in logic and memory chips
while also lifting demand for related power chips. Together with the accelerating push for
domestic substitution the industry has entered an upcycle leading to both volume and price
increases in the silicon wafer market. To capitalize on these market opportunities Zhonghuan
Advanced invested in the Shenzhen Project for Large Wafers Used in Integrated Circuits
accelerating the development of 12-inch wafer capacity with a particular focus on logic and
memory applications. Together with its existing production bases in Yixing and Xuzhou this
increased Zhonghuan Advanced’s total planned capacity for 12-inch wafers to 2.1 million pieces
per month further optimizing its regional manufacturing footprint and strengthening supporting
services for key customers. Zhonghuan Advanced will continue to advance leading-edge
technologies and processes deepen cooperation with key customers in China and abroad and
accelerate the ramp-up of new capacity to ease delivery pressure building differentiated
competitive advantages through technology efficiency and quality.(IV) Non-core business
During the Reporting Period Tianjin Printronics Circuit and Highly maintained sound
operations while the Company’s financial and investment businesses continued to generate
earnings.Facing a severe and complex external environment the Company will adhere to thedevelopment philosophy of “Strategic Leadership Innovation-Driven Advanced Manufacturingand Global Operations.” It will seize the historic opportunities presented by the upgrading of
advanced manufacturing and the transformation of the global energy structure achieve
sustainable high-quality development and move toward global leadership.II. 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 which is always standing firm at the
forefront and demonstrating the audacity to pioneer has emerged as a high-tech industry group
with global competitiveness.Strategic Leadership: Leading strategic goals and clear strategic development
philosophy
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 the delisting of Zhonghuan
Electronic in July 2020 the Company officially entered the fields of new energy photovoltaics
and silicon materials. TCL TECH. has established a business structure centered on displays new
energy photovoltaic and other silicon materials. The Company followed a consistent logic in its
business strategy and development. With complementary business cycles and strong management
synergy across its segments it achieved outstanding competitive strengths.Guided by its goal of achieving global leadership the Company is committed to its
development philosophy of "Strategic Guidance Innovation-Driven Leading Edge
Manufacturing and Global Operations". It prioritizes strengthening its core competitiveness and
organizational capacity and addresses uncertainties in the external environment with clear
strategic objectives leading core competencies and a highly efficient management system.Scale Leadership: Leading market position and comprehensive business layout
By the end of the Reporting Period TCL CSOT as a preeminent global display company
and a pioneer in domestic display manufacturing invested over RMB 300 billion to establish 12
state-of-the-art panel lines (including the t8 line under construction) and 7 module factories
serving a diverse range of global clients. The Company has established its leading position in
large-sized panels globally through both self-built production lines and strategic acquisitions. In
first half of 2026 the Company ranked second globally in TV panel shipments and first globally
in terms of market share for panels sized 98 inches and above. The Company has built t9
production lines targeting high-value-added mid-sized products such as IT and commercial
displays achieving a full-size strategic layout. In the first half of 2026 it secured the world’s
second-largest market share in MNT panels and led globally in key segments such as e-sports
monitors and LTPS laptops. Its strategic MLED direct-display business achieved mass production
and delivery. TCL CSOT proactively positioned its high-performance and all-scenario display
solutions while bolstering its value chain ecosystem. By expanding its reach from a large-sized
display leader to a full-range provider and transitioning from a panel manufacturer to a
comprehensive solution specialist it successfully navigated multiple industry cycles. Evolving
from a "follower" to a "peer" and ultimately a "leader" TCL CSOT achieved sustained high-
quality development.Leveraging its wafer business as a cornerstone TZE expanded downstream into cells
modules and energy storage steadily forging a resilient industry-leading competitive edge. In the
photovoltaic wafer segment TZE capitalized on its advantages in smart manufacturing
technology and product quality to meet diverse customer requirements. In the first half of 2026 it
retained its position as the global leader in terms of comprehensive wafer market share the largest
market share for G12 wafers and the largest total monocrystalline silicon production capacity. In
photovoltaic cells and modules TZE drew upon its technological prowess in wafer manufacturing
to intensify innovation and R&D investment delivering superior products and solutions to
customers. Its acquisition of DAS Solar in July 2026 comprehensively upgraded the cell and
module business across product technology customer channels and manufacturing capabilities.As China’s photovoltaic industry enters a period of far reaching adjustment TZE will accelerate
its overseas expansion and industrial footprint strengthen its product capabilities and build
differentiated advantages to navigate industry changes from a more competitive position.Zhonghuan Advanced remained steadfast in its “Lead at Home Compete Globally” strategy
establishing itself as one of China’s premier silicon materials enterprises with the most extensive
scale diverse product portfolio and the most leading edge technology. Serving key global and
domestic clients its revenue from silicon wafers ranked first in China in the first half of 2026.The Company continuously boosted its production capacity for 12-inch large wafers leading to a
rapid surge in both production and sales volumes. In the first half of 2026 revenue from 12-inch
large wafers maintained its leading position in China. The Company will continue to diversify its
product and customer mix and build differentiated competitive advantages around the strategic
pillars of technology leadership efficiency enhancement and outstanding quality.Technological and Ecological Leadership: Spearheading innovation and fostering
extensive collaborations to secure a technological first-mover advantage
The Company has established a strategic foothold in core technologies (i.e. displays new
energy photovoltaics and other silicon materials) 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 G12 and N-type
photovoltaic materials as well as BC cells. The Company has applied for over 80000 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 applied for over
3200 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
TECH. has established 32 R&D centers worldwide and has been certified with 9 national-level
open innovation platforms and 33 provincial-level innovation platform qualifications.Efficiency and Cost Leadership: 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
digitalization upgrades and AI applications. TCL CSOT has leveraged the synergy of its twin
factories to optimize production line planning and maximize capacity expansion. Through
management reforms and process optimizations TCL CSOT strengthened end-to-end
collaboration resulting in improved overall operations efficiency and cost reduction. Furthermore
sustained investments in AI and digitalization propelled continuous advancements in product
performance quality and effectiveness establishing a formidable competitive edge in
management within the industry.While the new energy photovoltaic industry continues to face numerous uncertainties
stemming from global demand and policy shifts TZE streamlines its end to end business
processes through a series of management reforms. This has enabled the gradual build out of
global operational capabilities and integrated solution offerings. Through AI empowered
operations and smart manufacturing development the Company further elevates product
performance and quality. By retaining its industry leading efficiency and cost advantages the
Company is underpinned to smoothly navigate the industry’s significant adjustments and evolve
into a premier global provider of new energy photovoltaic solutions.In addition the Company places great importance on developing its dual-carbon and ESG
systems. With the goal of reaching peak carbon emissions by 2030 it has established the
necessary organizational structure and launched targeted carbon-reduction initiatives covering its
factories products and supply chains.Cultural Leadership: Guided by our core values of "change innovation accountability
and excellence" the Company is being driven to achieve industry leadership
In 2020 the Company inaugurated its 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.Confronting an increasingly complex and ever-changing external business environment TCL
employees will remain steadfast in the spirit and culture of "The Path to Global Leadership".Standing at the forefront of the industry and undeterred by challenges we will collectively drive
the Company toward new milestones and realize our vision of global leadership.III. Analysis of Core Businesses
Overview
The disclosure is consistent with the main businesses of the Company during the Reporting Period
Yes □No
See the relevant contents in “I. Main Businesses of the Company during the Reporting Period”.Year-on-year changes in key financial information
Unit: RMB
H1 2026 H1 2025 Change (%) Reason for change
Operating revenue 88648186929 85560004497 3.61% No significant change
Operating cost 77240901594 74082838353 4.26% No significant change
Sales expenses 1208257980 1163964526 3.81% No significant change
Administrative 2352225628 2200561949 6.89% No significant change
expenses
Financial expenses 2334062570 2141281686 9.00% No significant change
Mainly due to the
Income tax expense 55193043 315894303 -82.53% recognition of deferredtax assets during the
Reporting Period
R&D investments 4622516962 4528645518 2.07% No significant change
Mainly due to the
Net cash generated increase in working
from operating 17622151962 27273981394 -35.39% capital occupied by
activities increased inventory
stocking
Mainly attributable to
substantial cash
Net cash generated outflows for the
from investing -10371018331 -22308345614 53.51% acquisition of LGD
activities Guangzhou LCD and
module manufacturing
facilities in H1 2025
Net cash generated Mainly due to the
from financing -11568653590 481996265 -2500.15% decrease in financing
activities scale
Mainly due to the year-
Net increase in cash on-year decrease in net-4347079003 5695406206 -176.33% cash inflows from
and cash equivalents operating and financing
activities
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 2026 H1 2025
As % of total As % of total Change (%)
Amount operating revenue Amount operating revenue
(%) (%)
Total operating 88648186929 100% 85560004497 100% 3.61%
revenue
By operating division
Display business 56499787338 63.73% 57550502531 67.26% -1.83%
New energy
photovoltaics and
other silicon 14314939541 16.15% 13398123076 15.66% 6.84%
materials business
Distribution
business 17823270005 20.11% 14674516380 17.15% 21.46%
Other and offsets 10190045 0.01% -63137490 -0.07% 116.14%
By product category
Display devices 56499787338 63.73% 57550502531 67.26% -1.83%
New energy
photovoltaics and
other silicon 14314939541 16.15% 13398123076 15.66% 6.84%
materials
Distribution of
electronics 17823270005 20.11% 14674516380 17.15% 21.46%
Other and offsets 10190045 0.01% -63137490 -0.07% 116.14%
By operating segment
Chinese Mainland 53879037280 60.78% 54848748806 64.11% -1.77%
Overseas
(including Hong 34769149649 39.22% 30711255691 35.89% 13.21%
Kong)
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 profit margin
Operating cost
revenue margin revenue year- year-on-year year-on-year
on-year (%) (%) (%)
By operating division
Display
business 56499787338 44760616081 20.78% -1.83% -2.41% 0.48%
New energy
photovoltaics
and other
silicon 14314939541 15697946991 -9.66% 6.84% 8.92% -2.09%
materials
business
Distribution
business 17823270005 17217053254 3.40% 21.46% 21.43% 0.02%
By product category
Display devices 56499787338 44760616081 20.78% -1.83% -2.41% 0.48%
New energy
photovoltaics
and other 14314939541 15697946991 -9.66% 6.84% 8.92% -2.09%
silicon
materials
Distribution of 17823270005 17217053254 3.40% 21.46% 21.43% 0.02%
electronics
By operating segment
Chinese
Mainland 53879037280 50124175895 6.97% -1.77% -0.56% -1.13%
Overseas
(including 34769149649 27116725699 22.01% 13.21% 14.52% -0.89%
Hong Kong)
IV. Analysis of Non-Core Businesses
Applicable □Not applicable
Unit: RMB
Amount As % of gross profit Source Sustainability
Mainly due to the
recognition of return
Return on investment 2193722549 95.44% on investment fromjoint ventures and Yes
investment returns on
financial assets etc
Mainly due to the
Gain/loss of fair-value movement in fair value1257456150 54.71% of financial assets Yes
changes during the holding
period
Falling price of
Asset impairment -2328103164 -101.29% inventory write-offs in No
line with the market
Non-operating income 19590137 0.85% No
Non-operating 178161936 7.75% No
expenses
V. Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
End of the Reporting Period December 31 2025
Weight Main reason for
As % of total As % of total
Amount Amount Change change
assets assets
Monetary 23149621075 6.34% 30460060493 8.17% -1.83% No significant
assets change
Accounts 19982085557 5.47% 22153002606 5.94% -0.47% No significant
receivable change
Contract assets 380944305 0.10% 385576416 0.10% 0.00% No significantchange
Inventories 22977465760 6.29% 18370708289 4.93% 1.36% No significantchange
Investment 421249843 0.12% 401873017 0.11% 0.01% No significant
properties change
Long-term
equity 24224709984 6.63% 23349193104 6.26% 0.37% No significantchange
investments
Fixed assets 157724421112 43.20% 165003155646 44.27% -1.07% No significantchange
Construction in 18834203934 5.16% 16176848470 4.34% 0.82% No significant
progress change
Right-of-use 4297808424 1.18% 6189174496 1.66% -0.48% No significant
assets change
Short-term 10889508692 2.98% 7552523460 2.03% 0.95% No significant
borrowings change
Contract 1994628988 0.55% 2009842277 0.54% 0.01% No significant
liabilities change
Repayment of
Long-term borrowings103335671549 28.30% 116139349491 31.16% -2.86% during the
borrowings Reporting
Period
Lease liabilities 3788754808 1.04% 4148597798 1.11% -0.07% No significantchange
2. Major Assets Overseas
□Applicable Not applicable
3. Assets and Liabilities at Fair Value
Applicable □Not applicable
Unit: RMB
Impairment
Gain/loss of Cumulative
allowances Amount Amount sold
fair-value fair-value
Beginning established purchased in in the Other
Item changes in changes Ending amount
amount in the the Reporting Reporting changes
the Reporting recorded in
Reporting Period Period
Period equity
Period
Financial assets
1. Held-for-
trading financial
assets (excluding 14473193131 225797200 - - 76459895775 72818568112 10353059 18350671053
derivative
financial assets)
2. Derivative
78957405 157641 - - 86970823 308422476 167686373 25349766
financial assets
3. Receivables
625788752 - - - - - -97302663 528486089
financing
4. Investments in
other equity 356455767 - -145614645 - 10000000 - -190164058 176291709
instruments
5. Other non-
current financial 3172659077 1102213769 - - 701100018 447640281 32705791 4561038374
assets
Subtotal of
18707054132 1328168610 -145614645 - 77257966616 73574630869 -76721498 23641836991
financial assets
Total of the
18707054132 1328168610 -145614645 77257966616 73574630869 -76721498 23641836991
above
Financial 493524364 70712460 - - 615479847 589569038 -215305613 374842020
liabilities
Significant changes to the measurement attributes of the major assets in the Reporting Period
□Yes No
4. Restricted Asset Rights as of the Period-End
For details please refer to “28. Assets with Restricted Ownership or Use Rights” under “V. Notes to Consolidated FinancialStatements” in “Part VIII Financial Report.”
VI. Investments Made
1. Total Investment Amount
Applicable □Not applicable
Total investment amount in the Total investment amount in the same
Change (%)
Reporting Period (RMB) period last year (RMB)
18213538579 22581302175 -19.34%
2. Major Equity Investments Made in the Reporting Period
Applicable □Not applicable
Unit: RMB’000000000
Investment
Progress as gains and Index to
Date of
Name of Principal Investment Investment Shareholding Funding Investment Product of the Expected losses for Involvement in disclosed
Partner disclosure
investee activity method amount percentage source period type balance returns the litigation information
(if any)
sheet date Reporting (if any)
Period
Shenzhen China
Star
Optoelectronics
Panel Equity Self- Not Not Not Not December www.cninfo
Bandaoti production 60.45 10.7656% None Transferred Noacquisition raised applicable applicable applicable applicable 16 2025 .com.cn
Display
Technology Co.Ltd.R&D
production
Fujian
and sales
Zhaoyuan Equity Self- Not Not Not Not December www.cninfo
of LED 4.90 80% None Transferred No
Optoelectronics acquisition raised applicable applicable applicable applicable 27 2025 .com.cn
epitaxial
Co. Ltd.wafers and
chips
Guangzhou
China Star
Optoelectronics
Panel Equity Self- Not Not Not Not March 31 www.cninfo
Bandaoti 93.25 45% None Contracted No
production acquisition raised applicable applicable applicable applicable 2026 .com.cn
Display
Technology Co.Ltd.www.cninfo
DAS Solar Co. Production Equity 12.58 59.14% Self- None Not Not Contracted Not Not No March 31 .com.cn
Ltd. of cells acquisition raised applicable applicable applicable applicable 2026
and
modules
Zhonghuan
R&D
Advanced
production Equity Self- Not Not Not Not May 30 www.cninfo
Bandaoti 8.45 2.37% None Transferred No
and sales acquisition raised applicable applicable applicable applicable 2026 .com.cn
Technology Co.of wafers
Ltd.Total -- -- 179.63 -- -- -- -- -- -- -- -- --
Note: The industrial and commercial registration of the transfer of the 45% equity interest in Guangzhou China Star
Optoelectronics Bandaoti Display Technology Co. Ltd. was completed on August 21 2026. DAS Solar Co. Ltd. will be
included in the Company’s scope of consolidation from Q3 2026.
3. Major Non-Equity Investments Ongoing in the Reporting Period
On September 11 2025 the Company convened the 14th meeting of the 8th Board of Directors at which
the Proposal on Investment in and Construction of the Generation 8.6 Printed OLED Production Line Project
was reviewed and approved. To secure a strategic position for China in the new competitive landscape of the
global display industry drive the industry's frontier technology exploration and commercialization and realize
the Company's industrialization of high-generation printed OLED the Company together with TCL CSOT the
Guangzhou Municipal Government and the Guangzhou Economic and Technological Development Zone
Administration signed a project cooperation agreement. The project entails the construction of an
8.6 generation printed OLED panel line with a planned capacity of approximately 22500 sheets per month
(substrate size: 2290mm × 2620mm).Construction of the Generation 8.6 printed OLED production line officially commenced on October 21
2025. As of the end of the Reporting Period the main structure had been topped out and the production line is
expected to officially commence production in Q4 2027.
4. Financial Assets Investments
(1) Securities Investments
Applicable □Not applicable
Unit: RMB'0000
Gain/loss
of fair- Cumulative Amount
Amount Gain/loss
Initial Accounting Beginning value fair-value purchased Ending
Security sold in the in the Accounting Funding
Stock Code Stock Abbr. investment measurement carrying changes changes in the carrying
type Reporting Reporting title source
cost method amount in the recorded in Reporting amount
Period Period
Reporting equity Period
Period
Other non-
Self-
Stocks 2513.HK Z.AI 8000 Fair value 14840 76769 - - - 76769 91609
current
financial
assets funded
Other non-
Self-
Stocks 688469.SH UNT 26745 Fair value 31053 16282 15417 - 3234 17157 44977
current
financial
assets funded
Measurement Self-
Bonds 240311 24 Eximbank 11 20679 at amortized 20809 - - - - 181 20990
Debt
cost investments funded
Measurement Self-
Bonds 250420 25 ADBC 20 20027 at amortized 20251 - - - - 176 20070
Debt
cost investments funded
Other non-
300842.SZ DK Electronic current
Self-
Stocks Materials Inc. 2430 Fair value 14118 5604 - - 12077 11515 13557 financial
assets funded
XS2587421681 Nanyang
Measurement Self-
Bonds Commercial Bank 7083 at amortized 7195 - - - - 253 6972
Debt
cost investments funded
Other non-
current Self-
Stocks 301636.SZ Zerun New Energy 1746 Fair value 4562 2182 - - - 2182 6744 financial
assets funded
Held-for-
USF2941JAA81 ELECTRICITE DE
Self-
Bonds FRANCE SA 2919 Fair value 4091 -5 - - - 152 3960
trading
financial
assets funded
Held-for-
Self-
Bonds XS3038559129
MONGOLIAN trading
MINING CORP 5680 Fair value 3971 16 - 1796 1830 169 3828 financial
assets funded
Held-for-
XS1389118453 LI & FUNG LTD 972 Fair value 3952 -25 - - - 148 3805 trading
Self-
Bonds financial
assets funded
Other securities investments held at the period-end 237481 -- 159619 -1462 -12900 201514 207153 3644 157600 -- --
Total 333762 -- 284461 99361 2517 203309 224294 112346 374111 -- --
Disclosure date of the board announcement
——
approving securities investments
Date for disclosure and announcement on
approving securities investment by the ——
general meeting (if any)
(2) Investments in Derivative Financial Instruments
Applicable □Not applicable
1) Derivative investments for hedging purposes made during the Reporting Period
Applicable □Not applicable
Unit: RMB'0000
Closing contractual amount as a
Beginning amount Ending amount Gain/loss in
Type of contract the
percentage of the closing net assets
Reporting reported by the Company (%)Contractual Transaction Contractual Transaction
amount limit amount limit Period
Contractual
amount Transaction limit
1. Forward forex contracts 4268834 164989 5582458 217325 -38815 43.74 1.70
Total 4268834 164989 5582458 217325 -38815 43.74 1.70
Accounting policies and specific
accounting principles for
hedging business during the
Reporting Period and a
description of whether there No significant change.have been significant changes
from those of the previous
Reporting Period
Description of actual profits and During the Reporting Period profit from changes in the fair value of hedged items amounted to -RMB 508.18
losses during the Reporting million; profit from the settlement of matured forward exchange contracts amounted to RMB 185.46 million and
Period profit from the valuation of outstanding forward exchange contracts amounted to -RMB 65.43 million.During the Reporting Period the Company's main foreign exchange risk exposures included exposures of assets
Description of the hedging effect and liabilities denominated in foreign currencies arising from business such as outbound sales raw materialprocurement 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
investment Self-funded.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:
1. Market risk: the financial derivatives business carried out by the Group is related to hedging and trading
activities 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;
2. Liquidity risk: the derivatives business carried out by the Group is an over-the-counter transaction operated by a
financial institution and there is a risk of incurring losses due to paying fees to the bank for liquidating or selling
the derivatives below the buying prices;
3. Performance risk: the Group conducts its derivative business based on rolling budgets for risk management and
there is a risk of performance failure due to deviation arising between the actual operating results and budgets;
4. Other risks: in the case of specific business operations the failure of operational personnel to report and obtain
approvals in accordance with established procedures or to accurately promptly and comprehensively record
information related to financial derivative transactions may result in potential losses or missed trading
Analysis of risks and control opportunities in the derivative business. Moreover if the trading operator fails to fully understand the terms of
measures associated with transaction contracts or product information the Group may face legal risks and transaction losses.derivative investments held in Risk control measures:
the Reporting Period (including 1. Basic management principles: the Group strictly follows the hedging principle mainly to fix costs and avoid
but not limited to market risk risks. It is necessary for the financial derivatives business to align with the variety size direction and duration of
liquidity risk credit risk spot goods and this should not involve any speculative trading. When selecting hedging instruments only simple
operational risk legal risk etc.) financial derivatives that are closely related to the main business operations and comply with the requirements ofhedge 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;
2. The Group has formulated a special risk management regulation tailored to the risk characteristics of the
financial 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.
3. Relevant departments should track the changes in the open market price or fair value of financial derivatives
promptly assess the risk exposure changes of invested financial derivatives and compile reports to the board of
directors on business development;
4. The Group will make a timely public disclosure if the combined fair value impairment of its derivatives and the
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 fair With the rapid expansion of overseas sales the Company continued to follow the above rules in the operation of
value of derivative investments forward foreign exchange contracts interest rate swap contracts and currency swap contracts to avoid and hedge
in the Reporting Period (fair against foreign exchange risks arising from operations and financing. During the Reporting Period there were
value analysis should include the profits and losses of -RMB 508.18 million from changes in the fair value of hedged items and RMB 120.03 million
measurement method and related from derivatives. The fair value of derivatives is determined by the real-time quoted price of the foreign exchange
assumptions and parameters) market and is based on the difference between the contractual price and the forward exchange rate quotedimmediately on the foreign exchange market on the balance sheet date.Legal matters involved (if
applicable) None
Disclosure date of the board
announcement approving the March 28 2026
derivative investments (if any)
Disclosure date of the general
meeting announcement
approving the derivative April 25 2026
investments (if any)
2) Derivative investments for speculative purposes during the Reporting Period
□Applicable Not applicable
There were no derivative investments for speculative purposes made by the Company during the Reporting Period.
5. Use of the capital raised
Applicable □Not applicable
(1) General Information about the Use of Capital Raised
Applicable □Not applicable
Unit: RMB'0000
2026 May 292026 200000.00 199520.00 199520.00 199520.00 100% 0 0 200000.00 199520.00 199520.00 100% 0
Total -- -- 200000.00 199520.00 199520.00 199520.00 100% 0 0 0 0 -- 0 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
Use of the Capital Raised:
Upon the CSRC registration approval (CSRC Approval [2025] No. 2369) the Company issued corporate bonds not exceeding RMB 10 billion to professional investors in installments. During
the Reporting Period the net proceeds from the Sci-Tech Innovation Corporate Bonds (Digital Economy) Publicly Offered by TCL Technology Group Corporation to Professional Investors
(Phase I) (Type II) were fully received on May 22 2026. As of the disclosure date all proceeds raised have been fully utilized and the actual use of proceeds is consistent with the intended use
as stated in the prospectus.
(2) Promised Use of Capital Raised
□Applicable Not applicable
Whether the Company has any excess capital raised
□Yes No
(3) Changes in projects funded by capital raised
□Applicable Not applicable
No such cases in the Reporting Period.
30
If yes total number of changes involving such projects Not applicable
Whether any project funded by capital raised has been
changed Not applicable
If yes total number of delays involving such projects Not applicable
Whether any project funded by capital raised has been delayed Not applicable
Date on which all excess capital raised was fully utilized Not applicable
Total excess capital raised for which no utilization plan has
been established and which remains idle Not applicable
(including cash management)
Progress in the use of excess capital raised as at the end of the
Reporting Period (Unit: %) Not applicable
Total amount of excess capital raised used as at the end of the
Reporting Period Not applicable
(excluding cash management)
Total amount of excess capital raised used during the
Reporting Period Not applicable
Total excess capital raised for which utilization plans have
been established Not applicable
(excluding cash management)
Amount of excess capital raised
Total surplus capital raised from completed planned projects Not applicable
Date on which all planned projects funded by capital raised
were completed Not applicable
Whether all planned projects funded by capital raised have
been completed Not applicable
Progress in the use of capital raised as at the end of the
Reporting Period
Total amount capital raised used as at the end of the Reporting
Period
Actual amount of capital raised
(capped at the actual net capital raised)
Total amount planned to be raised (subject to the amount
specified in the prospectus)
Amount left idle for over two years
Purpose and location of the unused amount Not applicable
Total proceeds that have not been used
Total amount of changed-purpose funds as a % of total
amount raised Not applicable
Total amount of changed-purpose funds Not applicable
Total amount of changed-purpose funds during the Reporting
Period Not applicable
Utilization rate of capital raised as at the end of the Reporting
Period (3) = (2)/(1)
Total amount used (2)
Used in the current period
Net amount raised
(1)
Total amount raised
Listing date of securities
Method of raising Public issuance ofcorporate bonds
Year of raisingVII. Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□Applicable Not applicable
The Company did not dispose of any major assets during the Reporting Period.
2. Sale of Major Equity Investments
□Applicable Not applicable
VIII. 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'0000
Company Principal Registered Operating Operating
Company name Total assets Net assets Net profits
type activity capital revenue profit
TCL China Star
Optoelectronics RMB 33.08
Technology Co. Subsidiary Display billion 18815888 7331533 5027346 397365 390266
Ltd.TCL Zhonghuan New energy
Renewable photovoltaics
Energy Subsidiary and other RMB 4.04silicon billion 11276264 3478934 1431494 -361526 -345728Technology Co.Ltd. materialsbusiness
Highly
Information Subsidiary Distribution RMB 412business million 854144 178327 1782327 12552 10322Industry Co. Ltd.Acquisition and disposal of subsidiaries in the Reporting Period
Applicable □Not applicable
How subsidiaries were obtained or Effects on overall operations and
Company name
disposed of in the Reporting Period operating performance
Zhengzhou Shangrong Trading Co. Ltd. Newly established No significant effect
Wuhan Titi Yunchuang Education Technology
Co. Ltd. Newly established No significant effect
Ningbo Chengda Shangpin Technology Co.Ltd. Newly established No significant effect
Shenzhen Shangpai Zhuofan Technology Co.Ltd. Newly established No significant effect
Guangzhou Shangpai Zhihe Electronics
Technology Co. Ltd. Newly established No significant effect
TCL International Supply Chain (Huizhou)
Co. Ltd. Newly established No significant effect
Zhejiang Xingyong Electronics Co. Ltd. Newly established No significant effect
Shenzhen Zhonghuan Advanced Bandaoti
Materials Co. Ltd. Newly established No significant effect
Shenzhen Yunqi New Materials Technology
Co. Ltd. Newly established No significant effect
Ningbo Dongxi Rongrui Venture Capital
Partnership (Limited Partnership) Newly established No significant effect
Fuzhou Huazhao Optoelectronics Co. Ltd. Acquisition No significant effect
Fujian Fuzhao Bandaoti Co. Ltd. Acquisition No significant effect
Hunan Chuangke Photoelectrics Co. Ltd. Acquisition No significant effect
Yixing Zhonghuan Leading Engineering
Management Co. Ltd. Capital increase for controlling interest No significant effect
Tianjin Jincheng Internet Technology Co. Ltd. De-registered No significant effect
Note: On April 1 2026 Maxeon Solar Technologies Ltd. a subsidiary of the Company’s subsidiary TZE and its subsidiary Maxeon
Solar Pte. Ltd. voluntarily filed a joint application with the High Court of Singapore for judicial management proceedings. Now
Maxeon Solar Technologies Ltd. and its subsidiary Maxeon Solar Pte Ltd. are under the administration of Deloitte Singapore SR&T
Restructuring Services Pte. Ltd. (“Deloitte”) and are not included in the Company’s consolidated financial statements.Explanation of Principal Subsidiaries and Joint Stock Companies: None
IX. Structured Bodies Controlled by the Company
Applicable □Not applicable
As of the end of the Reporting Period the Group had included four structured entities within its scope of consolidation comprising
trust plans and securities firms’ asset management products controlled by the Group. Of these three structured entities were added in
the current year corresponding to entrusted wealth management products arranged by financial institutions on behalf of the Group
as sole principal. For details please refer to the section on entrusted wealth management. As the manager and an investor in the
structured entity the Group has relevant management power over the structured entity is exposed to variable returns and has the
ability to use its power to influence those returns.X. Risks and Responses
1. Risks from the Macro-Political and Economic Environment
Against a backdrop of increasingly divergent global growth persistent geopolitical tensions mounting trade
protectionism and accelerating regionalization uncertainty in the global business environment remained elevated.Meanwhile continued volatility in global exchange rates and financial markets heightened the risks facing the
Company’s overseas operations. In response the Company will closely monitor changes in macroeconomic
policies establish risk monitoring and early-warning mechanisms identify exposures arising from tariffs
exchange-rate fluctuations and other factors and develop targeted contingency plans. Guided by its goal of global
leadership the Company will remain focused on its core businesses pursue technology-driven innovation
strengthen its competitiveness and enhance commercial value and returns thereby improving its resilience to
macroeconomic volatility.
2. Risks from Industry Prosperity Fluctuations
Panel prices remained volatile in 2026 while the photovoltaic industry faced intense cut throat competition.Notwithstanding sustained industry adjustments no material improvement was yet observed. The Company will
diligently monitor shifts in industry supply and demand and optimize capacity allocation. At the same time it will
increase its investment in R&D to continuously raise the technological content of its 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.
3. Risks from Global Supply Chain Volatility
Geopolitical tensions and surging AI demand continued to place pressure on the stability of global supply
chains. Rising prices for major raw materials also presented challenges to delivery reliability and pricing.Meanwhile amid a challenging market environment and continued price compression some small- and medium-
sized suppliers have contracted or ceased operations resulting in potential supply disruptions. To safeguard the
resilience and security of its global supply chain the Company will remain committed to its globalization strategy
deepen the development of local supply chains and continue strengthening its ability to respond to supply-chain
risks. It will also enhance supply stability through strategic partnerships buffer inventories and other measures
while establishing monitoring and early-warning mechanisms for upstream supply risks to enable their timely
identification and effective mitigation.
4. Intellectual Property and Compliance Risks
As the Company continues to expand its business scale and technological footprint patent disputes have
become more frequent and intellectual property risks increasingly pronounced. To address this the Company willaccelerate substantial R&D investments refining our core technologies and patent portfolio through a “self-development + ecosystem collaboration” model. The Company will continue to improve its intellectual property
management and protection mechanisms strengthen patent risk assessments enhance its patent risk monitoring
and early-warning systems and comprehensively improve its ability to address intellectual property risks.In addition robust compliance systems are becoming increasingly important to the Company’s 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 compliance awareness and culture and
collaborating closely with local partners to proactively manage compliance risk.XI. 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 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.During the Reporting Period the Company reviewed and approved the Shareholder Dividend Payout Plan
for the Next Three Years (2026–2028) which stipulates that the profits distributed in cash each year shall be no
less than 30% of the net profit attributable to shareholders of the parent company for that year. During the
Reporting Period the Company also introduced the Partner Stock Ownership Plan for management personnel.Shares held by management under the Plan are subject to a five-year lock-up period with their release linked to
the Company’s performance assessment. This arrangement further aligns the interests of management with those
of the Company and all its shareholders.XII. 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 Notice on Promoting 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.Focusing on its core businesses in displays new energy photovoltaics and silicon materials the Company
remains anchored in its goal of “Global Leadership” and committed to the operating philosophy of “StrategicLeadership Innovation-Driven Advanced Manufacturing and Global Operations.” It will continue to consolidate
its industry position and pursue sustainable high-quality development. Motivated by confidence in the
Company’s future development and a commitment to protecting the interests of all shareholders bolstering
investor confidence and stabilizing and enhancing the Company’s investment value the Proposal on Repurchase
of a Portion of the Company’s Publicly Traded Shares in 2026 was approved at the 23rd meeting of the Eighth
Board of Directors on June 1 2026. 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 1.10 billion (inclusive) and no more than RMB 1.20 billion (inclusive) with a price
cap of RMB 6.51 per share (inclusive). The repurchased shares will be used for the Company’s employee stock
ownership plan and/or equity incentive plan. 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.In 2025 the Company achieved significant growth in net profit attributable to shareholders of the listed
company with net cash flow from operating activities showing steady improvement and various tasks progressing
in an orderly manner. The Company remains committed to delivering shareholder value and adheres to a prudent
dividend policy. Under its 2025 profit distribution plan a cash dividend of RMB 0.9 per 10 shares (tax inclusive)
will be distributed to all shareholders enabling them to benefit from the Company’s value growth.Part IV Corporate Governance Environment and Social
Responsibility
I. Changes in Directors and Senior Management
Applicable □Not applicable
Name Office title Type of change Date of change Reason for change
January 19 2026
Wang Cheng CEO and Director Elected Appointed and elected
April 24 2026
Director and Vice April 24 2026
Zhong Wei Elected Elected
Chairman April 29 2026
Vice Chairman of the
Zhang Zuoteng Former March 25 2026 Resigned voluntarily
Board
II. Interim Dividend Plan and Conversion from Capital Reserves into Share Capital during
the Reporting Period
□Applicable Not applicable
The Company does not propose to pay interim cash dividends issue bonus shares or convert capital reserves into share capital for
this interim period.III. Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures
for Employees
Applicable □Not applicable
1. Equity Incentives
□Applicable Not applicable
2. Implementation of Employee Stock Ownership Plan
Applicable □Not applicable
All the valid employee stock ownership plans during the Reporting Period
Total number of Proportion to
Name Scope of employees Number of shares held Changes the total share Funding source foremployees capital of the implementing the plan
(shares) listed company
2021-2023 Employee The Company's middle
Employees' legitimate
and senior No more than Not income performance-Stock Ownership Plan management and 3600 0 applicable 0% based bonus or other(Phase III) outstanding key staff distribution permittedby laws and regulations
The Company's middle Employees' legitimate
2024 Employee Stock and senior No more than Not income performance-
Ownership Plan management and 3600 60110326 applicable 0.28% based bonus or other
outstanding key staff distribution permittedby laws and regulations
2025 Employee Stock
Ownership Plan
(Partner Stock
The Company's middle Employees' legitimateOwnership Plan)
and senior No more than Applicable; income performance-
2025 Employee Stock management and 3600 174747985 see Note 1 0.84% based bonus or other
Ownership Plan outstanding key staff distribution permitted
(Medium- and Long- by laws and regulations
Term Employee Stock
Ownership Plan)
Employees' legitimate
2026 Partner Stock Core personnel of the No more than Not income performance-
Ownership Plan Company 60 0; see Note 2 applicable - based bonus or otherdistribution permitted
by laws and regulations
Employees' legitimate
2026 Medium- and The Company’s
Long-Term Employee middle-level No more than Not
income performance-
Stock Ownership Plan management and 4700
0; see Note 2 applicable - based bonus or other
outstanding key staff distribution permittedby laws and regulations
Note 1: On June 1 2026 the Company convened the 23rd meeting of the Eighth Board of Directors and on June 22 2026 it convened the Second
Extraordinary General Meeting for 2026. At these meetings the Proposal on Adjusting Matters Relating to the Company’s 2025 Employee Stock
Ownership Plan and related proposals were reviewed and approved. To improve its long-term incentive and restraint mechanisms and provide
differentiated targeted incentives to employee groups with different roles and incentive objectives the Company decided to restructure the 2025
Employee Stock Ownership Plan into two sub-plans: the 2025 Partner Stock Ownership Plan applicable to key management personnel and the 2025
Medium- and Long-Term Employee Stock Ownership Plan applicable to middle management and outstanding key employees. Accordingly the
Company formulated the following documents: the 2025 Employee Stock Ownership Plan (Partner Stock Ownership Plan) of TCL Technology Group
Corporation (Revised Draft) and its summary and the Administrative Measures for the 2025 Employee Stock Ownership Plan (Partner Stock
Ownership Plan) of TCL Technology Group Corporation; as well as the 2025 Employee Stock Ownership Plan (Medium- and Long-Term Employee
Stock Ownership Plan) of TCL Technology Group Corporation (Revised Draft) and its summary and the Administrative Measures for the 2025
Employee Stock Ownership Plan (Medium- and Long-Term Employee Stock Ownership Plan) of TCL Technology Group Corporation. The 2025
Medium- and Long-Term Employee Stock Ownership Plan will continue to use the dedicated securities account and trading qualifications already
established for the 2025 Employee Stock Ownership Plan. The transfer/purchase of the underlying shares for the 2025 Partner Stock Ownership Plan
has not yet been completed.Note 2: The transfer/purchase of the underlying shares for the Plan has not yet been completed.Note 3: During the Reporting Period all shares held under the 2021-2023 Employee Stock Ownership Plan (Phase III) that satisfied the vesting
conditions were vested in the holders. The corresponding shares repurchased by the Company in accordance with the relevant arrangements were
recently sold in full.Shareholdings of Directors and Senior Management under the Employee Stock Ownership Plan during the Reporting Period
Number of shares held at Number of shares held at
Name Position the beginning of the the end of the Reporting Proportion to the total share
Reporting Period (share) Period (share) capital of the listed company
Li Dongsheng Chairman
Wang Cheng Director and CEO
Zhao Jun Director Senior Vice President
Liao Qian Director Board Secretary andSenior Vice President About 26.47 million About 18.62 million
Li Jian CFO shares shares 0.09%
Yan Xiaolin Director Senior Vice PresidentCTO
Zhu Wei Employee RepresentativeDirector
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 ESOP participants exercised their shareholder rights to receive the profit distribution for
2025 but 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 and
taxation systems. Holders of the shareholding plan shall pay individual income tax arising from their participation in the plan
according to law and may choose to have the shareholding plan sell a corresponding amount of shares to cover individual income tax
with the remaining shares attributed to the individuals.Termination of Employee Stock Ownership Plan during the Reporting Period
Applicable □Not applicable
During the Reporting Period all shares held under the 2021-2023 Employee Stock Ownership Plan (Phase I) the 2021-2023
Employee Stock Ownership Plan (Phase II) and the 2021-2023 Employee Stock Ownership Plan (Phase III) that satisfied the vesting
conditions were vested in the holders. The corresponding shares repurchased by the Company as per the agreement have been fully
disposed of. The aforementioned Employee Stock Ownership Plans were fully implemented and terminated ahead of schedule. For
details please refer to the Announcement on the Implementation Progress of the Employee Stock Ownership Plans disclosed by the
Company through designated media on July 3 2026.Other instructions: none
3. Other Employee Incentives
□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
20
disclose environmental information in accordance with the law
No. Name of enterprise Index for environmental information disclosure report
Enterprise Environmental Information Disclosure System
1 TCL China Star Optoelectronics Technology Co. Ltd. (Guangdong Province)
https://gdee.gd.gov.cn/gdeepub/front/dal/dal/newindex
Enterprise Environmental Information Disclosure System
Shenzhen China Star Optoelectronics Bandaoti Display
2 (Guangdong Province)
Technology Co. Ltd.https://gdee.gd.gov.cn/gdeepub/front/dal/dal/newindex
Enterprise Environmental Information Disclosure System
Guangzhou China Star Optoelectronics Bandaoti
3 (Guangdong Province)
Display Technology Co. Ltd.https://gdee.gd.gov.cn/gdeepub/front/dal/dal/newindex
Enterprise Environmental Information Disclosure System
Guangzhou China Star Optoelectronics Technology
4 (Guangdong Province)
Co. Ltd.https://gdee.gd.gov.cn/gdeepub/front/dal/dal/newindex
Enterprise Environmental Information Disclosure System (Hubei)
Wuhan China Star Optoelectronics Technology Co. http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/enterpriseInfoXT
5
Ltd. XH=6a15f252-dd39-40a0-b08c-
ba0387086f16&XH=1677751270208009244672&year=2024
Enterprise Environmental Information Disclosure System (Hubei)
Wuhan China Star Optoelectronics Bandaoti Display http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/enterpriseInfoXT
6
Technology Co. Ltd. XH=10470c7d-faf3-4981-8a87-
e813881ef749&XH=1677751269448009244672&year=2024
Enterprise Environmental Information Disclosure System
(Jiangsu)
Suzhou China Star Optoelectronics Technology Co.
7 http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
Ltd.webapp/web/viewRunner.htmlviewId=http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
webapp/web/sps/views/yfpl/views/yfplHomeNew/index.js
Enterprise Environmental Information Disclosure System
(Jiangsu)
8 Suzhou China Star Optoelectronics Display Co. Ltd. http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
webapp/web/viewRunner.htmlviewId=http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
webapp/web/sps/views/yfpl/views/yfplHomeNew/index.js
Enterprise Environmental Information Disclosure System (Fujian
Fuzhou Huazhao Optoelectronics Co. Ltd. (formerly
9 Beta Version)
known as Fujian Zhaoyuan Optoelectronics Co. Ltd.)
http://220.160.52.213:10053/idp-province/#/home
Tianjin Zhonghuan Advanced Material&Technology Enterprise Environmental Information Disclosure System (Tianjin)
10
Co. Ltd. https://hjxxpl.sthj.tj.gov.cn:10800/#/gkwz/jcym
Enterprise Environmental Information Disclosure System (Inner
11 Inner Mongolia Zhonghuan Solar Material Co. Ltd. Mongolia)
http://sthjj.huhhot.gov.cn/ztzl/xzzt/cxjsgc/202507/t20250717_1912456.html
Enterprise Environmental Information Disclosure System
(Jiangsu)
12 Zhonghuan Advanced Bandaoti Technology Co. Ltd.
http://ywxt.sthjt.jiangsu.gov.cn:18181/shencai-envfacial-
web/web/view/facialDetail/facialDetail.html
Enterprise Environmental Information Disclosure System
TCL Zhonghuan Energy Technology (Jiangsu) Co. (Jiangsu)
13
Ltd. http://ywxt.sthjt.jiangsu.gov.cn:18181/shencai-envfacial-
web/web/view/facialDetail/facialDetail.html
Enterprise Environmental Information Disclosure System
(Jiangsu)
14 Wuxi Zhonghuan Applied Materials Co. Ltd.
http://ywxt.sthjt.jiangsu.gov.cn:18181/shencai-envfacial-
web/web/view/facialDetail/facialDetail.html
Ecological Environment Statistics Business System
15 Moka Technology (Guangdong) Co. Ltd.
https://hjtj.cnemc.cn/htqy/#/login
The Online Consent Management & Monitoring System
16 TTE Electronics India Pvt Ltd. (APOCMMS)
https://apocmms.nic.in
Public information on environment-related permits from Quang
CNG TY TNHH CNG NGH MOKA VIT NAM Ninh Economic Zone Authority
17 Moka Technology Vietnam Company Limited https://qeza.gov.vn/Cong-khai-Giay-phep-moi-truong-cua-Du-an-Moka-Viet-
Nam/dta/vi/10378/
Ministry of Environment and Natural Resources
18 TCL Moka Manufacturing S.A de C.V (Mexico) Leyes y Normas del Sector Medio Ambiente | Secretaría de Medio Ambiente y
Recursos Naturales | Gobierno | gob.mx
Enterprise Environmental Information Disclosure System (Tianjin)
19 Tianjin Printronics Circuit Corporation
https://hjxxpl.sthj.tj.gov.cn:10800/#/gkwz/jcym
Department of Ecology and Environment of Guangdong Province
- Enterprise Environmental Information Disclosure System
20 Techigh Circuit Technology (Huizhou) Co. Ltd. https://gdee.gd.gov.cn/gdeepub/front/dal/report/listentName=%E6%B3%B0%
E5%92%8C%E7%94%B5%E8%B7%AF&reportType=&areaCode=&entType
=&reportDateStartStr=&reportDateEndStr=
V. Social Responsibility
Semi-Annual Summary of Work on Consolidating and Expanding Achievements in Poverty
Alleviation & Promoting Rural Revitalization
Rural education provides strategic support for rural revitalization. The TCL Public Welfare Foundation
launched the “TCL PV Low-Carbon Campus” project providing green energy support to rural education by
donating rooftop photovoltaic power generation systems along with the income they generate over their 25-year
life cycle. To further advance “Project Hope in the New Era” and extend the reach of education assistance theFoundation partnered with the China Youth Development Foundation to implement the “TCL Project Hope PV-enabled Low-Carbon Campus Program” thereby continuously empowering the sustainable development of rural
education. To date 35 “TCL PV-enabled Low-Carbon Campuses” have been donated and constructed across
China with a total installed capacity of 2054.65 kW. Over their 25-year life cycle these systems are expected to
generate approximately 61.91 million kWh of electricity equivalent to planting approximately 2.76 million trees.During the Reporting Period the project team conducted extensive field research in Chongqing Henan Hubei
and other regions carrying out targeted assessments of local schools and students to lay a solid foundation for the
high-quality expansion of the low-carbon campus initiative.To advance education the "TCL University Donation Program"—launched in 2022—has provided support to
eight universities including South China University of Technology and Xidian University. To date the program
has funded 54 TCL Young Scholars and 66 Science and Technology Innovation Fund projects. During the
Reporting Period an additional 11 young scholars and 6 innovation fund projects received support. In addition
TCL invests RMB 2 million annually in the Distinguished Speaker Series under the "SUSTech–TCL Innovation
and Entrepreneurship Lecture Program." Leading experts and scholars including Mao Daqing and Ma Guangyuan
were recently invited to deliver eight high-quality thematic lectures continuing to inspire innovation among
young people.During the Reporting Period the TCL Public Welfare Foundation stayed firmly committed to strengthening
rural infrastructure fostering local industries and enhancing early childhood care and development. It disbursed
RMB 3.95 million in dedicated funding and adopted a range of measures to support rural revitalization and
integrated urban-rural development. At the implementation level the Foundation directed funding to key regions
and priority projects providing RMB 2 million to the Jiexi County Charity Federation RMB 1 million to the
China Development Research Foundation’s “Sunshine Starting Line Program” in Haidong Qinghai RMB
500000 to a rural revitalization project in Yugan County Jiangxi and RMB 250000 to projects in Huizhou. It
also invested RMB 200000 through the “TCL Public Welfare Ecological Forest” project to support plateau
ecological restoration in the Sanjiangyuan region. The Foundation also continued to broaden the scope of itsphilanthropic activities incubating and implementing 20 outstanding public welfare projects through the “TCLRose Initiative - Public Welfare Creativity Competition.” Six of these projects were dedicated to rural
revitalization focusing on children’s education sports development and environmental protection while ensuring
that the benefits of these philanthropic initiatives reached a wider range of communities.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 and 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 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.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
1. Recurring 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.
2. Related-Party Transactions Regarding Purchase or Disposal of Assets or Equity Interests
□Applicable Not applicable
During the Reporting Period there were certain related-party transactions regarding purchase or disposal of assets or equity
investments. Please refer to the index in Item 7 of this Section XI Major Related-Party Transactions.
3. Related-Party Transactions Regarding Joint Investments in Third Parties
□Applicable Not applicable
During the Reporting Period there were no major related-party transactions regarding joint investments in third parties.
4. Amounts Due to and from Related Parties
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.
5. Transactions with Related-party Finance Companies
□Applicable Not applicable
The Company had no deposits loans credit granting or other financial business with the related-party finance companies.6. Transactions Between the Financial Company Controlled by the Company and Related Parties
Applicable □Not applicable
Deposits
Amount incurred in the
current period
Relationship Daily deposit Beginning Total Ending
Related Range of Total deposit
with the ceiling balance withdrawalamount in balanceparties interest
Company (RMB’0000) (RMB’0000) amount incurrent (RMB’0000)
current
period
period
(RMB’0000)
(RMB’0000)
Subsidiary of
TCL
Related
Industries 250000 0.38% 1032.87 144334.34 145367.21 0
legal entity
Holdings Co.Ltd.Loans
Amount incurred in the
current period
Relationship Beginning Total
Related Loan limit Range of Total loan
Ending
with the balance repayment balance
parties (RMB'0000) interest amount in
Company (RMB’0000) amount incurrent (RMB’0000)
current
period
period
(RMB’0000)
(RMB’0000)
Subsidiary of
TCL
Related
Industries 250000 - - - - -
legal entity
Holdings Co.Ltd.Credit or other financial business
Relationship with the Total amount Actual amount
Related parties Business type
Company (RMB'000000000) (RMB’0000)
Subsidiary of TCL The balance of
Credit granting (bill
Industries Holdings Related legal entity comprehensive credit 0
acceptance)
Co. Ltd. on any day shall not
exceed RMB 2.5
Subsidiary of
Credit granting (bill billion (including
TCL Industries Related legal entity 0
discount) loans bill discounting
Holdings Co. Ltd. and bill acceptance)
Note: At the 2024 Annual General Meeting the Company reviewed and approved the Proposal on Continuing to Provide
Financial Services to Related Parties and Renewing the Financial Services Agreement for Related-Party Transactions. The
agreement shall remain valid from the date of its approval at the 2024 Annual General Meeting until the date on which a similar
proposal is approved at the Company’s next general meeting.
7. Other Major Related-Party Transactions
Applicable □Not applicable
Related inquiries on the website for interim disclosure of major related-party transactions
Title of announcement Date of interim disclosure Website for disclosure
Announcement on the Anticipated
Recurring Related-Party Transactions for
2026
Proposal on Recurring Related-Party
Leases for 2026 January 20 2026
Announcement on the Related-Party
Transactions with Shenzhen Jucai
Supply Chain Technology Co. Ltd. in
2026
Report on the Execution of Recurring
Related-Party Transactions in 2025
www.cninfo.com.cn
Special note on financial businesses
including deposits and loans relating to
related-party transactions of finance March 28 2026
companies
Announcement on the Launch of
Accounts Receivable Factoring and the
Related-Party Transaction
Announcement on the Acquisition of
Partial Minority Equity Interests in a
May 30 2026
Subsidiary and the Related-Party
Transaction
XII. Major Contracts and Execution thereof
1. Entrustment Contracting and Leases
(1) Entrustment
□Applicable Not applicable
During the Reporting Period the Company had no entrusted projects that generated profits or losses representing 10% or more of the
net profit attributable to shareholders of the parent company for the Reporting Period.
(2) Contracting
□Applicable Not applicable
During the Reporting Period the Company had no contracting projects that generated profits or losses representing 10% or more of
the net profit attributable to shareholders of the parent company for the Reporting Period.
(3) Leases
□Applicable Not applicable
During the Reporting Period the Company had no lease projects that generated profits or losses representing 10% or more of the net
profit attributable to shareholders of the parent company for the Reporting Period.
2. Major Guarantees
Applicable □Not applicable
Unit: RMB'0000
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Disclosure
Guarantee
date of Actual Actual Counter-
Guarantee Type of Collateral Term of Fulfilled for related
Obligor announcement occurrence guarantee guarantee (if
limit guarantee (if any) guarantee or not parties or
on guarantee date amount any)
not
limit
Shenzhen Qianhai Sailing
International Supply April 25 January 30 Joint With
Chain Management Co. 2026 130000 2026 44382 liability / counter-
13 days-
guarantee guarantee 119 days
No No
Ltd.Qihang International April 25 Joint With
Import & Export Limited 2026 25000 - 0 liability / counter- - - Noguarantee guarantee
Guangzhou Qihang April 25 Joint WithInternational Supply 2026 30000 - 0 liability / counter- - - NoChain Co. Ltd. guarantee guarantee
Guarantee in
Aijiexu New Electronic Joint proportion
Display Glass (Shenzhen) April 252026 15000
April 28
2020 9603 liability / to
2.3-4 No No
Co. Ltd. guarantee shareholding years
percentage
Guarantee in
Inner Mongolia Xinhua April 25 May 22 Joint proportionBandaoti Technology 2026 46400 2023 35200 liability / to 3.9 years No NoCo. Ltd. guarantee shareholding
percentage
Guarantee in
Inner Mongolia Xinhuan Joint proportion
Silicon Energy April 25 136235 June 15 119397 liability / to 3 years No No
Technology Co. Ltd. 2026 2023 guarantee shareholding
percentage
Total actual amount
Total approved limit for such guarantees 382635 of such guarantees in 44566
in Reporting Period (A1) Reporting Period
(A2)
Total balance of such
Total approved limit for such guarantees 382635 guarantees at the end 208581
at the end of the Reporting Period (A3) of Reporting Period
(A4)
Guarantees provided by the Company as the parent for its subsidiaries
Disclosure
Guarantee
date of Actual Actual Counter-
Guarantee Type of Collateral Term of Fulfilled for related
Obligor announcement occurrence guarantee guarantee (if
limit guarantee (if any) guarantee or not parties or
on guarantee date amount any)
not
limit
Highly (Tianjin) E- April 25 Joint
Commerce Co. Ltd. 2026 10000 - 0 liability / / - - Noguarantee
Highly (Tianjin) April 25 April 14 Joint 1 day-51
Technology Co. Ltd. 2026 61000 2026 27768 liability / /guarantee days
No No
Mingsi Technology Co. April 25 April 13 Joint
Ltd. 2026 20000 2026 10216 liability / / 292 days No Noguarantee
Beijing Hecheng Nuoxin April 25 Joint
Technology Co. Ltd. 2026 12000
July 10
2025 12000 liability / / 10 days No Noguarantee
Beijing Lingyun Data April 25 July 16 Joint 6 days-
Technology Co. Ltd. 2026 42000 2025 23175 liability / / No Noguarantee 207 days
Beijing Sunpiestore April 25 September 4 Joint 10 days-
Technology Co. Ltd. 2026 194000 2024 126000 liability / / No Noguarantee 1.2 years
Highly Information April 25 Joint
Industry Co. Ltd. 2026 410000 June 1 2024 364061 liability / /
13 days-
guarantee 1.3 years
No No
Tianjin TiTi Yunchuang April 25 10000 July 10
Joint
Technology Co. Ltd. 2026 2025 10000 liability / / 10 days No Noguarantee
Tianjin Wanfang Nuoxin April 25 July 10 Joint
Technology Co. Ltd. 2026 10000 2025 10000 liability / / 10 days No Noguarantee
Beijing Youyi Online April 25 Joint
Technology Co. Ltd. 2026 15000 - 0 liability / / - - Noguarantee
Tianjin Printronics April 25 November Joint
Circuit Corporation 2026 53000 17 2022 8067 liability / / 4.2 years No Noguarantee
TCL Zhonghuan Joint
Renewable Energy April 252026 440000 - 0 liability / / - - NoTechnology Co. Ltd. guarantee
Ningxia Zhonghuan Solar April 25 Joint
Material Co. Ltd. 2026 210000 - 0 liability / / - - Noguarantee
Zhonghuan Advanced
Bandaoti Technology April 25
Joint
2026 300000 - 0 liability / / - - NoCo. Ltd. guarantee
Joint
LumeTech PTE Ltd April 252026 90000 - 0 liability / / - - Noguarantee
LumeTech Energy April 25 Joint
S.J.S.C. 2026 60000 - 0 liability / / - - Noguarantee
China Display
Optoelectronics April 25 Joint
Technology (Huizhou) 2026 100000
March 25
2026 10084 liability / /
20 days-
118 days No No
Co. Ltd. guarantee
MOKA GLOBAL April 25 Joint
LIMITED 2026 60000 - 0 liability / / - - Noguarantee
Guangzhou Zhihui April 25 30000 November
Joint
Shengke Co. Ltd. 2026 29 2024 18973 liability / / 5.4 years No Noguarantee
TTE ELECTRONICS Joint
INDIA PRIVATE April 25 10000 - 0 liability / / - - No
LIMITED 2026 guarantee
Huizhou Moka Joint
Technology Development April 25 March 272026 30000 2026 16 liability / /
76 days- No No
Co. Ltd. guarantee 83 days
Moka Technology April 25 November Joint 6 days-2.7
(Guangdong) Co. Ltd. 2026 400000 24 2023 143784 liability / / years No Noguarantee
Shenzhen Zhixian Shijie Joint
Software Technology April 25
Co. Ltd. 2026
1000 - 0 liability / / - - No
guarantee
Shenzhen Zhilian Joint
Shuchuang Technology April 25 1000 - 0 liability / / - - No
Co. Ltd. 2026 guarantee
MOKA TECHNOLOGY Joint
VIETNAM COMPANY April 252026 20000 - 0 liability / / - - NoLIMITED guarantee
TCL China Star
Optoelectronics April 25 December
Joint
2740000 1089411 liability / / 15 days-
Technology Co. Ltd. 2026 22 2022 guarantee 9.3 years
No No
Guangdong Juhua Printed Joint
Display Technology Co. April 252026 0 - 0 liability / / - - NoLtd. guarantee
Guangzhou China Star
Optoelectronics Bandaoti April 25 Joint
Display Technology Co. 2026 500000
June 29
2026 6911 liability / / 20 days No No
Ltd. guarantee
Huizhou China Star Joint
Optoelectronics Display April 25 February 27 81 days-
Co. Ltd. 2026
500000 2025 144065 liability / / 2.2 years No Noguarantee
Shenzhen China Star
Optoelectronics Bandaoti April 25 June 15 Joint
Display Technology Co. 2026 350000 2020 141653 liability / / 2-3 years No No
Ltd. guarantee
Suzhou China Star Joint
Optoelectronics Display April 25 50000 August 302026 2022 47386 liability / / 5.9 years No NoCo. Ltd. guarantee
Wuhan China Star
Optoelectronics Bandaoti April 25 Joint
Display Technology Co. 2026 1350000
September
28 2021 915821 liability / /
20 days-
6.3 years No No
Ltd. guarantee
Wuhan China Star
Optoelectronics April 25 August 25
Joint
2026 1100000 2022 545355 liability / /
17 days- No No
Technology Co. Ltd. guarantee 4.2 years
Guangzhou China Star
Optoelectronics Printed April 25 1180000 June 29
Joint
Display Technology Co. 2026 2026 11612 liability / /
1.1-1.8
years No No
Ltd. guarantee
TCL Technology April 25 500000 June 23
Joint
Investments Limited 2026 2025 136218 liability / / 1.9 years No Noguarantee
TCL Technology Capital April 25 Joint
Limited 2026 300000 - 0 liability / / - - Noguarantee
TCL Technology Group April 25 August 31 Joint
(Tianjin) Co. Ltd. 2026 30000 2022 20000 liability / / 1.2 years No Noguarantee
TCL Culture Media April 25 Joint
(Shenzhen) Co. Ltd. 2026 2000 - 0 liability / / - - Noguarantee
Total actual amount
of such guarantees for
Total guarantee limit for subsidiaries 11191000 subsidiaries in 811133
approved in the Reporting Period (B1)
Reporting Period
(B2)
Total balance of
Total guarantee limit for subsidiaries guarantees for
approved at the end of the Reporting 11191000 subsidiaries at the end 3822577
Period (B3) of the Reporting
Period (B4)
Guarantees provided between subsidiaries
Disclosure
Guarantee
date of Actual Actual Counter-
Guarantee Type of Collateral Term of Fulfilled for related
Obligor announcement occurrence guarantee guarantee (if
limit guarantee (if any) guarantee or not parties or
on guarantee date amount any)
not
limit
Highly (Tianjin) April 25 20000 January 4
Joint
Technology Co. Ltd. 2026 2026 14050 liability / /
4 days-33
guarantee days
No No
Techigh Circuit
Technology (Zhuhai) Co. April 25 87000 September 9
Joint
2026 2025 35629 liability / /
88 days-
Ltd. guarantee 7.2 years
No No
Huizhou China Star
Optoelectronics Display April 25 700000 January 16
Joint
2026 2025 271800 liability / /
27 days- No No
Co. Ltd. guarantee 2.1 years
Shenzhen China Star
Optoelectronics Bandaoti April 25 Joint
Display Technology Co. 2026 669300
June 15
2020 354133 liability / / 2 years No No
Ltd. guarantee
Wuhan China Star
Optoelectronics Bandaoti April 25 Joint
Display Technology Co. 2026 1370400
February 1
2024 334155 liability / /
15 days- No No
Ltd. guarantee
4.3 years
Wuhan China Star
Optoelectronics April 25 332000 October 31
Joint
2026 2025 159617 liability / /
59 days- No No
Technology Co. Ltd. guarantee 4.5 years
Fuzhou Huazhao April 25 June 26 Joint
Optoelectronics Co. Ltd. 2026 150000 2026 3722 liability / / 179 days No Noguarantee
MOKA GLOBAL April 25 May 24 Joint 53 days-
LIMITED 2026 25000 2026 21734 liability / /guarantee 85 days
No No
MOKA GLOBAL April 25 Joint
LIMITED 2026 49000 June 1 2026 23838 liability / / 335 days No Noguarantee
Zhonghuan Energy (Inner June 25 2017 7320 July 21
Joint
Mongolia) Co. Ltd. 2017 7320 liability / / 6 years No Noguarantee
Inner Mongolia Joint
Zhonghuan Crystal March 222021 189975
April 30
2021 189975 liability / / 1.8 years No NoMaterials Co. Ltd. guarantee
Ningxia Zhonghuan Solar January 23 May 30 Joint
Material Co. Ltd. 2022 394116 2022 394116 liability / / 2.9 years No Noguarantee
Inner Mongolia Joint
Zhonghuan Crystal May 26 2022 53085 June 282022 53085 liability / / 3 years No NoMaterials Co. Ltd. guarantee
Tianjin Huanou New Joint
Energy Technology Co. May 26 2022 59839 September28 2022 59839 liability / / 3.2 years No NoLtd guarantee
Wuxi Zhonghuan
Applied Materials Co. May 26 2022 61199 June 30
Joint
2022 61199 liability / / 3 years No NoLtd. guarantee
Huansheng New Energy September Joint
(Jiangsu) Co. Ltd. May 26 2022 17374 30 2022 17374 liability / / 1.2 years No Noguarantee
Huansheng New Energy Joint
(Jiangsu) Co. Ltd. May 26 2022 42550
March 29
2023 42550 liability / / 4.1 years No Noguarantee
Huansheng New Energy Joint
(Tianjin) Co. Ltd. April 8 2023 67275
February 28
2024 67275 liability / / 4.6 years No Noguarantee
Huansheng New Energy
(Inner Mongolia) Co. May 16 2025 103000 June 30
Joint
2025 64724 liability / / 5 years No NoLtd. guarantee
Tianjin Huan'ou Bandaoti
Material&Technology May 16 2025 38900 September
Joint
29 2025 38900 liability / / 9.3 years No NoCo. Ltd. guarantee
Tianjin Zhonghuan New May 16 2025 9342 December
Joint
Energy Co. Ltd. 26 2025 9342 liability / / 0.5 years No Noguarantee
Otog Banner Huanju New April 15 May 15 Joint
Energy Co. Ltd. 2026 12745 2026 12745 liability / / 13.4 years No Noguarantee
Ongniud Banner
Guangrun New Energy April 15 2549 May 15
Joint
2026 2026 2549 liability / / 13.4 years No NoCo. Ltd. guarantee
Hohhot Huanju New Joint
Energy Development Co. April 15 30632 May 152026 2026 30632 liability / / 13.4 years No NoLtd. guarantee
TCL Zhonghuan Energy April 15 JointTechnology (Jiangsu) 2026 7886 June 1 2026 7886 liability / / 1 year No NoCo. Ltd. guarantee
Total actual amount
of such guarantees for
Total guarantee limit for subsidiaries 5713800 subsidiaries in the 433530
approved in the Reporting Period (C1)
Reporting Period
(C2)
Total balance of
Total guarantee limit for subsidiaries guarantees for
approved at the end of the Reporting 5713800 subsidiaries at the end 2278189
Period (C3) of the Reporting
Period (C4)
Total guarantee amount (total of the three kinds of guarantees above)
Total actual guarantee
Total guarantee limit approved in the amount in the
17287435 1289229
Reporting Period (A1+B1+C1) Reporting Period
(A2+B2+C2)
Total guarantee
Total approved guarantee limit at the end 17287435 balance at the end of 6309347
of the Reporting Period (A3+B3+C3) the Reporting Period
(A4+B4+C4)
Ratio of total guarantee balance (i.e. A4+B4+C4) to the 99.25%
Company’s net assets
Of which:
Balance of guarantees provided for shareholders the actual 0
controller and their related parties (D)
Balance of debt guarantees provided directly or indirectly for 2108827
obligors with an over 70% debt/asset ratio (E)
Amount by which the total guarantee amount exceeds 50% of the 3130957
Company’s net assets (F)
Total of the three above amounts (D+E+F) 3130957
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 3541.33 million. The joint guarantee has been filled in the "Company's Guarantee for Subsidiaries"
and "Guarantee Among Subsidiaries" respectively.
(3) In the table above the Company’s guarantee balance in respect of TCL CSOT includes the relevant amounts in relation to
liquidity support provided by the Company to China Development Bank New Policy Financial Instruments Co. Ltd. and other
entities.
(4) On July 12 2026 the Company reallocated the guarantee limits provided for its controlled subsidiaries based on their
business needs. Details are as follows: the guarantee limit of RMB 600 million provided to LumeTech Energy S.J.S.C. and the
guarantee limit of RMB 900 million provided to LumeTech PTE Ltd totaling RMB 1.5 billion were reallocated to their parent
company TCL Zhonghuan Renewable Energy Technology Co. Ltd. Following the reallocation the Company’s guarantee limit for
TZE amounts to RMB 5.9 billion with the scope of the guarantee covering guarantees provided for its public bond issuance
financing and other matters.The Company has performed internal review procedures for the above-mentioned guarantee reallocation. It’s found that they
did not violate the legal provisions on listed companies and complied with the relevant requirements of the Announcement on
Providing Guarantees for Subsidiaries in 2026 reviewed and approved at the 2025 Annual General Meeting held on April 24 2026.Explanation of guarantees provided in composite forms: Not applicable
3. Entrusted Wealth Management
Applicable □Not applicable
Unit: RMB'0000
Balance of entrusted wealth
Product type Risk characteristics management during the Unrecovered overdue amount
Reporting Period
Bank’s wealth management product 76815.54 0
Securities firm’s wealth Highly secure and 0535127.43
management products liquid with medium-to-
Trust plan low risk 465120.49 0
Structured deposits 132000.00 0
Other 371421.00 0
Total 1580484.46 0
Details of the Company’s role as a sole settlor in entrusting financial institutions for asset management or its investments in high-
risk entrusted wealth management with low security and poor liquidity
Applicable □Not applicable
Unit: RMB'0000
Actual Summary
Actual
Type of recovery of the
Name of profit or
entrusted of profit or matter and
entrusted Risk Start Investment loss
Product name institution Product type Amount End date loss during relevant
institution characteristics date of funds during the
(or the reference
(or trustee) Reporting
trustee) Reporting index (if
Period
Period any)
Haitong Caifu Fixed-
No fixed
Jiangxin 100 income
term; open
Series No. 81 Haitong Securities June assets such
Futures Medium-to- weekly; the
FOF Single- Futures firm asset 49956.84 30 as bonds and / / /
institution low risk Company
Asset Co. Ltd. management 2026 money
may redeem
Management market
at any time
Plan instruments
No fixed Fixed-
China
FOTIC - term; the income
Foreign
Xincheng No. June Company assets such
Economy Trust Medium-to-
6 Collective Trust plan 95664.53 30 may make as bonds and / / /
and Trade institution low risk
Capital Trust 2026 redemptions money
Trust Co.Plan from time market
Ltd.to time instruments
No fixed
Fixed-
term; the
income
CCB Trust - Company
June assets such
Zunyu No. 20 CCB Trust Trust Medium-to- may redeem
Trust plan 69455.97 30 as bonds and / / /
Single Fund Co. Ltd. institution low risk or terminate
2026 money
Trust Plan the trust
market
plan at any
instruments
time
Total 215077.33 -- -- -- / -- --
4. Other Major Contracts
□Applicable Not applicable
The Company did not have any other major contracts that should be disclosed during the Reporting Period.XIII. Record of Communications with the Investment Community such as Research
Inquiries and Interviews during the Reporting Period
Applicable □Not applicable
Primary focus
Type of of the Index of the main
Time of Manner of Communication
Location communication discussion and information
reception communication party
party materials communicated
provided
Annual Log Sheet No. 2026-001
Conference performance on Investor Relations
March Room of Individuals and operations Activities dated March
31 2026 TCL TECH. Web conferencing institutions etc. All investors of TCL 31 2026 disclosed by
in Shenzhen TECH. for the Company at
2025 www.cninfo.com.cn onMarch 31 2026.
Foresight Fund Log Sheet No. 2026-002
Conference Southern Asset Performance on Investor Relations
May 6 Room of Management and operations Activities dated May 6
2026 TCL TECH. Web conferencing Institution China Pacific of TCL 2026 disclosed by the
in Shenzhen Insurance CITIC TECH. for Company at
Securities etc. Q1 2026 www.cninfo.com.cn onMay 7 2026.Aviva-COFCO Log Sheet No. 2026-003
Conference Life BOC Recent on Investor Relations
June 2 Room of operating Activities dated June 2
2026 TCL TECH. Web conferencing Institution
Investment
Management Ping performance 2026 disclosed by the
in Shenzhen An Fund Huatai of TCL Company at
Securities etc. TECH. www.cninfo.com.cn onJune 3 2026.Contents and
January - The public
June Company's Investor hotline Individuals Individuals information
2026 office (telephone) institutions etc. institutions etc. etc. disclosed
-
by the
Company
Contents and
January - The public
June Company's irm.cninfo.com.cn Individuals Individuals information
2026 office institutions etc. institutions etc. etc. disclosed
irm.cninfo.com.cn
by the
Company
XIV. Other Significant Events
Applicable □Not applicable
1. Acquisition of a 45.00% equity interest in Guangzhou China Star Optoelectronics Bandaoti Display
Technology Co. Ltd. through share issuance and cash payment
On March 31 2026 the Company disclosed the Report (Draft) on Asset Purchase via Share Issuance and Cash Payment and
Raising of Supporting Funds of TCL Technology Group Corporation. The Company proposes to acquire through share issuance and
cash payment the 45% equity interest in Guangzhou CSOT Bandaoti held by Guangdong Hengjian Investment Holding Co. Ltd.Guangzhou Chengfa Xingguang Investment Partnership (Limited Partnership) and Science City (Guangzhou) Investment Group Co.Ltd. and to raise supporting funds concurrently.On April 24 2026 the Company convened the 2025 Annual General Meeting at which the aforementioned matters were reviewed
and approved.On April 29 2026 the Company received the Notice on Acceptance of the Application Documents of TCL Technology Group
Corporation for Asset Purchase via Share Issuance and Raising of Supporting Funds issued by the Shenzhen Stock Exchange.On June 1 2026 the Board reviewed and approved the Proposal on Canceling the Raising of Supporting Funds for the Asset
Purchase via Share Issuance. Taking into account the interests of all shareholders and the sustained positive momentum in the
Company’s operations and development the Company decided to voluntarily cancel the arrangement for raising supporting funds
for the asset purchase via share issuance. The cash consideration will instead be paid from the Company’s own or self-raised funds.On July 24 2026 the Merger and Acquisition Review Committee of the Shenzhen Stock Exchange approved the Company’s
acquisition of the 45% equity interest in Guangzhou CSOT Bandaoti through share issuance and cash payment.On August 19 2026 the Company received the Reply on Approving the Registration of TCL Technology Group Corporation’s Asset
Purchase via Share Issuance (CSRC Permit [2026] No. 2116) issued by the China Securities Regulatory Commission.On August 21 2026 the industrial and commercial registration for the transfer of the 45% equity interest in Guangzhou China Star
Optoelectronics Bandaoti Display Technology Co. Ltd. was completed. The newly issued shares will be listed on August 31 2026.
2. Implementation of the Partner Stock Ownership Plan
On June 1 2026 the Board reviewed and approved the Proposal on Adjustments to Matters Relating to the Company’s 2025
Employee Stock Ownership Plan the Proposal on the 2026 Partner Stock Ownership Plan of TCL Technology Group Corporation
(Draft) and Its Summary and other related proposals. To strengthen the alignment of key management personnel’s interests with the
Company’s long-term development and effectively promote shared benefits and responsibilities the Company implemented the
Partner Stock Ownership Plan for directors senior management and other management personnel at specified levels. The vestingarrangements under the Partner Stock Ownership Plan were changed from “a one-year lock-up period followed by vesting/unlockingover two years” to “a five-year lock-up period followed by a one-time release upon expiry.” The Partner Stock Ownership Plan will
also act in concert with the Company's largest shareholder.On June 22 2026 the aforementioned matters were reviewed and approved at the Second Extraordinary General Meeting of 2026.The related work is progressing in an orderly manner.XV. Significant Events of the Company’s Subsidiaries
□Applicable Not applicable
Part VI Changes in Shares and Information about Shareholders
I. Changes in Shares
1. 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 2704164206 13.00% 0 0 0 -1031989889 -1031989889 1672174317 8.04%
Shares
1. Shares
held by 1268952437 6.10% 0 0 0 -282660331 -282660331 986292106 4.74%
public legal
entities
2. Shares
held by other 798732340 3.84% 0 0 0 -115585532 -115585532 683146808 3.28%
domestic
investors
Among
which:
shares held 89073633 0.43% 0 0 0 -89073633 -89073633 0 0.00%
by domestic
legal entities
Shares
held by 709658707 3.41% 0 0 0 -26511899 -26511899 683146808 3.28%
domestic
individuals
3. Shares
held by 300514791 1.44% 0 0 0 -297779388 -297779388 2735403 0.01%
foreign
investors
Among
which:
shares held 298099761 1.43% 0 0 0 -298099761 -298099761 0 0.00%
by foreign
legal entities
Shares
held by 2415030 0.01% 0 0 0 320373 320373 2735403 0.01%
foreign
individuals
4. Fund
wealth 335964638 1.62% 0 0 0 -335964638 -335964638 0 0.00%
management
product etc.II. Non- 18096698241 87.00% 0 0 0 1031989889 1031989889 19128688130 91.96%
restricted
shares
1. RMB-
denominated 18096698241 87.00% 0 0 0 1031989889 1031989889 19128688130 91.96%
ordinary
shares
III. Total 20800862447 100.00% 0 0 0 0 0 20800862447 100.00%
shares
Reasons for changes in shares
Applicable □Not applicable
1. During the Reporting Period the 1035489574 restricted shares issued by the Company in 2025 in connection with its asset
purchase via share issuance and cash payment and raising of supporting funds were released from trading restrictions and listed for
trading on February 24 2026. The number of non-restricted shares increased accordingly.
2. During the Reporting Period locked-up shares held by senior management increased by 3499685 restricted shares while the
number of non-restricted shares decreased accordingly.Approval of changes in shares
□Applicable Not applicable
Transfer of share ownership
Applicable □Not applicable
Note: On July 10 2026 the Company disclosed the Announcement on the Implementation Progress of the Employee Stock
Ownership Plans and Completion of the Non-Trading Transfer of Certain Shares Vested in the Holders. The Company completed the
second non-trading transfer under the 2021–2023 Employee Stock Ownership Plan (Phase III) involving 26973002 shares in total
representing 0.13% of the Company’s total share capital. Of these 1985472 shares were transferred to the Company’s directors and
senior management through non-trading transfer and 24987530 shares were transferred to other holders through non-trading
transfer. The Company also completed the first non-trading transfer under the 2024 Employee Stock Ownership Plan involving
45319634 shares in total representing 0.22% of the Company’s total share capital. Of these 2476093 shares were transferred to
the Company’s directors and senior management through non-trading transfer and 42843541 shares were transferred to other
holders through non-trading transfer.Progress on any share repurchase
Applicable □Not applicable
Note: On July 3 2026 the Company disclosed the Progress Announcement on the Repurchase of Publicly Traded Shares in 2026. As
of June 30 2026 the Company had repurchased 82167590 shares through centralized bidding via its dedicated securities account
for share repurchases representing approximately 0.40% of its total share capital. The highest and lowest transaction prices were
RMB 4.93 and RMB 4.82 per share respectively and the total transaction amount was approximately RMB 400 million exclusive of
transaction costs.On July 18 2026 the Company published the Announcement on the Proportion of Publicly Traded Shares Repurchased in 2026
Reaching 1% and the Completion of the Share Repurchase. From June 23 to July 17 2026 the Company repurchased a total of
239384027 shares through centralized bidding via its dedicated securities account for share repurchases representing approximately
1.15% of its total share capital. The highest and lowest transaction prices were RMB 5.49 and RMB 4.82 per share respectively and
the total transaction amount was approximately RMB 1.20 billion exclusive of transaction costs. The actual funds used for the share
repurchase reached the maximum amount specified in the repurchase plan and the implementation of the plan was therefore
completed.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
The Company’s total share capital did not change during the Reporting Period.Other information that the Company considers necessary or is required by the securities regulatory authorities to be disclosed
□Applicable Not applicable
2. Changes in Restricted Shares
Applicable □Not applicable
Unit: share
Number of Number of
Number of Number of
increased released
restricted restricted Reason for Date of restriction
Name of shareholder restricted restricted
shares at shares at restriction release
shares of shares of the
period-begin period-end
the period period
To be released
from trading
Shenzhen Major restrictions 12
Industrial New share months after the
Development Phase I 986292106 0 0 986292106 issuance listing date of the
Fund Co. Ltd. newly issued
shares (July 10
2025)
UBS AG 243467933 0 243467933 0
Shenzhen Runcheng
Investment To be released
Management Co. Ltd. from trading
- Runcheng Jinjin No. 114251781 0 114251781 0 restrictions 6
1 Private Securities months after the
Investment Fund listing date of the
China International New share newly issued
Capital Corporation 106888361 0 106888361 0 issuance shares (August 22
Limited 2025); the shares
CITIC Securities Co. were releasedfrom
Ltd. 65320665 0 65320665 0 trading restrictionsand listed for
GF Securities Co. Ltd. 59382422 0 59382422 0 trading on
MORGAN STANLEY February 24 2026
& CO. 54631828 0 54631828 0
INTERNATIONAL
PLC.Guotai Haitong
Securities Co. Ltd. 45130641 0 45130641 0
China Construction
Bank - Efund - CSI 35741235 0 35741235 0
300 ETF Initiated
Changsha Lugu
Capital Management 35629453 0 35629453 0
Co. Ltd.Other shareholders
participating in the
Company’s issuance of
shares to specific 275045255 0 275045255 0
investors for raising
supporting funds
Certain shares
held by
directors
Directors senior senior
management and 682382526 3499685 0 685882211 management Not applicable
others of the Company and other
persons are
locked up as
required
Total 2704164206 3499685 1035489574 1672174317 -- --
II. Issuance and Listing of Securities
Applicable □Not applicable
Aggregate
Issue
Names of stocks and number of
Issue price (or Issue Listing Transaction Index to disclosed Date of
their derivative shares
date interest quantity date closing date information disclosure
securities permitted to
rate)
be traded
Stocks
Not applicable
Convertible corporate bonds convertible corporate bonds traded separately corporate bonds
Sci-Tech Innovation
Corporate Bonds
(Digital Economy)
May 19
Publicly Offered by May May
RMB 2 RMB 2 May 22 2026
TCL Technology 20 1.95% 29 www.cninfo.com.cn
billion billion 2029 May 28
Group Corporation to 2026 2026
2026
Professional Investors
in 2026 (Phase I)
(Type 2)
Other derivative securities
Not applicable
Description of securities issuances during the Reporting Period
TCL Technology Group Corporation’s 2026 Public Offering of Sci-Tech Innovation Corporate Bonds (Digital Economy) to
Professional Investors (Phase I) (Type 2) with the securities code “524812.SZ” and abbreviated securities name “26TCLK1” had a
total issue size of RMB 2 billion a coupon rate of 1.95% and a term of three years.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 693135 resumed voting rights by the end of the 0
Reporting Period Reporting Period (if any)
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
Increase/decre Number of Number of
shares held at frozen
Name of Nature of Shareholding ase during the restricted non-restricted
the end of the
shareholder shareholder percentage Reporting ordinary ordinary
Reporting
Period shares held shares held Status Shares
Period
Hong Kong
Securities Foreign legal
Clearing entity 7.66% 1594207644 562308549 0 1594207644 Not applicable 0
Company Ltd.Li Dongsheng Not applicable 0
Ningbo Jiutian
Liancheng Domestic
Equity individual/Dom
estic general 6.10% 1268160591 1479784 675949391 592211200
Pledge of
Investment Jiutian 153100000
Partnership legal entity Liancheng
(Limited
Partnership)
Shenzhen Major
Industrial
Development Public legalentity 4.74% 986292106 0 986292106 0 Not applicable 0Phase I Fund
Co. Ltd.Huizhou
Investment Public legal
Holding Co. entity 2.58% 535767694 0 0 535767694 Not applicable 0
Ltd.Wuhan Optics
Valley
Industrial Public legalentity 1.10% 228834416 -21014480 0 228834416 Not applicable 0Investment Co.Ltd.Abu Dhabi
Investment Foreign legal
Authority – entity 0.92% 192220215 60254600 0 192220215 Not applicable 0
Own funds
TCL
Technology
Group Fund wealth
Corporation - management 0.84% 174747985 0 0 174747985 Not applicable 0
2025 Employee product etc.
Stock
Ownership Plan
Perseverance
Asset
Management
Partnership Fund wealth
(Limited management 0.82% 171000000 -35800000 0 171000000 Not applicable 0
Partnership) - product etc.Gaoyi Xiaofeng
No. 2 Zhixin
Fund
China Foreign
Economy and
Trade Trust Co.Ltd. - FOTIC - Fund wealth
Gaoyi Xiaofeng management 0.69% 144000000 -25999910 0 144000000 Not applicable 0
Hongyuan product etc.Collective
Capital Trust
Plan
Strategic investor or general legal
entity becoming top-10 ordinary Not applicable
shareholders due to private
placement of new shares (if any)
Mr. Li Dongsheng and his acting-in-concert parties are the Company’s largest shareholder in terms of beneficial
ownership. Hong Kong Securities Clearing Company Ltd. is the nominee holder of the Company’s shares held
Note on the above shareholders’ through the Shenzhen–Hong Kong Stock Connect.Among the top 10 shareholders Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity Investment Partnership
associations or concerted actions (Limited Partnership) became persons acting in concert by signing the Agreement on Concerted Action. Mr. Li
Dongsheng holds 901265855 shares and Ningbo Jiutian Liancheng Equity Investment Partnership (Limited
Partnership) holds 366894736 shares representing 1268160591 shares in total.Explanation of the above
shareholders’ involvement in
entrusting/being entrusted with Not applicable
voting rights or waiving voting
rights
Explanation of repurchase
accounts among the top 10 Not applicable
shareholders (if any)
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-
Company Ltd. 1594207644 denominated 1594207644ordinary shares
Li Dongsheng RMB-
Ningbo Jiutian Liancheng Equity 592211200 denominated 592211200
Investment Partnership (Limited ordinary shares
Partnership)
Huizhou Investment Holding Co. RMB-
Ltd. 535767694 denominated 535767694ordinary shares
Wuhan Optics Valley Industrial RMB-
Investment Co. Ltd. 228834416 denominated 228834416ordinary shares
Abu Dhabi Investment Authority RMB-
– Own funds 192220215 denominated 192220215ordinary shares
TCL Technology Group RMB-
Corporation - 2025 Employee 174747985 denominated 174747985
Stock Ownership Plan ordinary shares
Perseverance Asset Management
Partnership (Limited Partnership) RMB-
- Gaoyi Xiaofeng No. 2 Zhixin 171000000 denominated 171000000
Fund ordinary shares
China Foreign Economy and
Trade Trust Co. Ltd. - FOTIC - RMB-
Gaoyi Xiaofeng Hongyuan 144000000 denominated 144000000
Collective Capital Trust Plan ordinary shares
National Social Security Fund RMB-
Portfolio 118 137883680 denominated 137883680ordinary shares
Related or acting-in-concert Mr. Li Dongsheng and his acting-in-concert parties are the Company’s largest shareholder in terms of beneficial
ownership. Hong Kong Securities Clearing Company Ltd. is the nominee holder of the Company’s shares held
parties among top 10 non- through the Shenzhen–Hong Kong Stock Connect.restricted shareholders as well as Among the top 10 shareholders with non-restricted shares Mr. Li Dongsheng and Ningbo Jiutian Liancheng
between top 10 non-restricted Equity Investment Partnership (Limited Partnership) became persons acting in concert by signing the Agreement
shareholders and top 10 on Concerted Action. Mr. Li Dongsheng holds 225316464 non-restricted shares and Ningbo Jiutian LianchengEquity Investment Partnership (Limited Partnership) holds 366894736 non-restricted shares representing
shareholders 592211200 non-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 margin above held certain shares of the Company through a credit security account.trading (if any)
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
□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 and Senior Management
Applicable □Not applicable
Number of
Number of
restricted Number of
restricted
Number of Decrease shares restricted
shares
shares held at Increase of of shares Number of shares granted at shares
granted at
Position the beginning shares during during the held at the end of the granted
Name Position the end of
Status of the the Reporting Reporting the Reporting beginning of during the
the
Reporting Period (share) Period Period (share) the Reporting
Reporting
Period (share) (share) Reporting Period
Period
Period (share)
(share)
(share)
Li
Dongsheng Chairman Incumbent 899786071 1479784 0 901265855 0 0 0
Zhong Wei Vice Chairman ofthe Board Incumbent 0 0 0 0 0 0 0
Wang
Cheng Director and CEO Incumbent 268220 773141 0 1041361 0 0 0
Zhao Jun Director SeniorVice President Incumbent 1535941 513494 0 2049435 0 0 0
Director Senior
Yan Xiaolin Vice President Incumbent 3220040 427164 0 3647204 0 0 0
CTO
Director Board
Liao Qian Secretary andSenior Vice Incumbent 2440829 449150 0 2889979 0 0 0
President
Lin Feng Director Incumbent 0 0 0 0 0 0 0
Jin Li Independentdirector Incumbent 0 0 0 0 0 0 0
Wan Independent
Liangyong director Incumbent 0 0 0 0 0 0 0
Wang Independent
Lixiang director Incumbent 0 0 0 0 0 0 0
Kei May Independent
LAU director Incumbent 0 0 0 0 0 0 0
Employee
Zhu Wei Representative Incumbent 190613 110701 0 301314 0 0 0
Director
Li Jian CFO Incumbent 2606337 708131 0 3314468 0 0 0
Wang Senior Vice
Yanjun President Incumbent 0 0 0 0 0 0 0
Zhang Vice Chairman of
Zuoteng the Board Former 0 0 0 0 0 0 0
Total -- -- 910048051 4461565 0 914509616 0 0 0
Note: The increase in the number of shares held by the Company’s directors and senior management during the Reporting Period
resulted from the non-trading transfer to their securities accounts of shares corresponding to vested interests under the 2021–2023
Employee Stock Ownership Plan (Phase III) and the 2024 Employee Stock Ownership Plan. For details please refer to the
Announcement on the Implementation Progress of the Employee Stock Ownership Plans and Completion of the Non-Trading
Transfer of Certain Shares Vested in the Holders published by the Company on designated media on July 10 2026.V. Change of the Controlling Shareholder or the Actual Controller
Change of the controlling shareholder in the Reporting Period
□Applicable Not applicable
Change of the actual controller in the Reporting Period
□Applicable Not applicable
VI Preferred Shares
□Applicable Not applicable
During the Reporting Period the Company did not have preferred shares.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
1. General Information on Corporate Bonds
Unit: RMB'0000
Way of
principal
Date of Outstanding Coupon repayment Place of
Bond name Abbr. Bond code Value date Maturity
issuance balance rate and trading
interest
payment
Sci-Tech
Innovation
Corporate Bonds Interest
(Digital payable
Economy) annually
Publicly Offered and Shenzhen
May 20 May 22 May 22
by TCL 26TCLK1 524812.SZ 200000.00 1.95% principal Stock
2026 2026 2029
Technology repayable Exchange
Group in full
Corporation to upon
Professional maturity
Investors in 2026
(Phase I) (Type 2)
Sci-Tech
Innovation
Corporate Bonds Interest
(Digital payable
Economy) annually
Publicly Offered and Shenzhen
December December December
by TCL 25TCLK1 524603.SZ 150000.00 2.24% principal Stock
17 2025 19 2025 19 2028
Technology repayable Exchange
Group in full
Corporation to upon
Professional maturity
Investors in 2025
(Phase I) (Type 2)
Sci-Tech Interest
Shenzhen
Innovation July 8 payable
24TCLK4 148804.SZ July 4 2024 July 8 2024 100000.00 2.46% Stock
Corporate Bonds 2029 annually
Exchange
(Digital and
Economy) principal
Publicly Offered repayable
by TCL in full
Technology upon
Group maturity
Corporation to
Professional
Investors in 2024
(Phase III) (Type
2)
Sci-Tech
Innovation
Corporate Bonds
Interest
(Digital
payable
Economy)
annually
Publicly Offered
and Shenzhen
by TCL July 8
24TCLK3 148803.SZ July 4 2024 July 8 2024 100000.00 2.29% principal Stock
Technology 2029 (Note 1)
repayable Exchange
Group
in full
Corporation to
upon
Professional
maturity
Investors in 2024
(Phase III) (Type
1)
Sci-Tech
Innovation
Corporate Bonds Interest
(Digital payable
Economy) annually
Publicly Offered and Shenzhen
April 11 April 11
by TCL 24TCLK2 148683.SZ April 9 2024 150000.00 2.69% principal Stock
2024 2029 (Note 2)
Technology repayable Exchange
Group in full
Corporation to upon
Professional maturity
Investors in 2024
(Phase II)
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 trading mechanism
applicable for foreign bonds
Risk of termination of listing and trading
No
(if any) and countermeasures
Note 1: The Sci-Tech Innovation Corporate Bonds (Digital Economy) Publicly Offered by TCL Technology Group Corporation to
Professional Investors in 2024 (Phase III) (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 shall 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 II) 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 shall be April 11 2027.Overdue bonds
□Applicable Not applicable
2. Triggering and implementation of issuer or investor option clauses and investor protection clauses
□Applicable Not applicable
3. Adjustments of credit rating results during the Reporting Period
□Applicable Not applicable
4. The implementation and changes of guarantees debt repayment plans and other safeguard measures
regarding debt repayment during the Reporting Period and their impact on the equity of bond investors
□Applicable Not applicable
III. Debt Financing Instruments of Non-Financial Enterprises
Applicable □Not applicable
1. General information on debt financing instruments of non-financial enterprises
Unit: RMB'0000
Way of
principal
Date of Outstanding Coupon Place of
Bond name Abbr. Bond code Value date Maturity repayment and
issuance balance rate trading
interest
payment
2026 Super
Short-Term
Commercial Principal and
Paper of 26TCL interest Inter-
012681479. June 15 June 17 December
TCL Group 200000.00 1.47% payable in a bank
IB 2026 2026 14 2026
Technology SCP002 lump sum at market
Group maturity
Corporation
(Phase II)
2026 Super
Short-Term
Commercial Principal and
Paper of 26TCL interest Inter-
012681058. April 20 April 22 October 19
TCL Group 300000.00 1.45% payable in a bank
IB 2026 2026 2026
Technology SCP001 lump sum at market
Group maturity
Corporation
(Phase I)
Unless the
2026 Sci-
Company
Tech
26TCL exercises its
Innovation
Group option to defer
Bonds of Inter-
MTN001 102680444. February 3 February 5 interest
TCL —— 100000.00 2.35% bank
(Sci-Tech IB 2026 2026 payments
Technology market
Innovation interest on the
Group
Bonds) Bonds is
Corporation
payable
(Phase I)
annually.2025 Sci-
Tech Interest
25TCL
Innovation payable
Group
Bonds of annually and Inter-
MTN002 102582064. May 12 May 14 May 14
TCL 100000.00 2.50% principal bank
(Sci-Tech IB 2025 2025 2030
Technology repayable in market
Innovation
Group full upon
Bonds)
Corporation maturity
(Phase II)
2025 Mid-
Term Notes
of TCL Interest
25TCL
Technology payable
Group
Group annually and Inter-
MTN001B 102580146. January 8 January 10 January 10
Corporation 100000.00 2.60% principal bank
(Sci- IB 2025 2025 2030
(Phase I) repayable in market
Tech Innova
(Sci-Tech full upon
tion Notes)
Innovation maturity
Notes)
(Type 2)
2025 Mid-
Term Notes
of TCL Interest
25TCL
Technology payable
Group
Group annually and Inter-
MTN001A 102580145. January 8 January 10 January 10
Corporation 100000.00 2.00% principal bank
(Sci- IB 2025 2025 2028
(Phase I) repayable in market
Tech Innova
(Sci-Tech full upon
tion Notes)
Innovation maturity
Notes)
(Type 1)
The super short-term commercial papers and medium-term notes are issued to institutional
Investor eligibility (if any) investors in China’s interbank bond market (excluding those prohibited from purchasing by
national laws and regulations)
Applicable trading mechanism Negotiated transaction request for quote and click-to-trade
Risk of termination of listing and
No
trading (if any) and countermeasures
Overdue bonds
□Applicable Not applicable
2. Triggering and implementation of issuer or investor option clauses and investor protection clauses
□Applicable Not applicable
3. Adjustments of credit rating results during the Reporting Period
□Applicable Not applicable
4. The implementation and changes of guarantees debt repayment plans and other safeguard measures
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
End of the December 31
Item Change
Reporting Period 2025
Current ratio 0.88 0.97 -9.28%
Debt/asset ratio 65.0% 64.2% 0.82 percentage points
Quick ratio 0.57 0.68 -16.18%
H1 2026 H1 2025 Change
Net profits after deducting non-recurring gains and 313988 155874 101.44%
losses (RMB'0000)
Debt-to-EBITDA ratio 8.60% 7.04% 1.56 percentage points
Interest coverage ratio 2.09 1.14 83.33%
Cash interest coverage ratio 9.22 11.48 -19.69%
EBITDA interest coverage ratio 9.50 7.25 31.03%
Debt repayment ratio 100% 100% 0.00
Interest repayment ratio 100% 100% 0.00
Part VIII Financial Report
(For the period from January 1 2026 to June 30 2026)
I. Auditor’s Report
Whether the 2026 interim report has been audited or not
□ Yes √ No
The Company’s 2026 interim financial report has not yet been audited.II. Financial Statements
The unit of the notes to the financial report is: RMB’000
TCL Technology Group Corporation
Consolidated Balance Sheet
(RMB’000)
Note V June 30 2026 December 31 2025
Current assets
Monetary assets 1 23149621 30460060
Held-for-trading financial assets 2 18350671 14473193
Derivative financial assets 3 25350 78957
Notes receivable 4 634337 480225
Accounts receivable 5 19982086 22153003
Receivables financing 6 528486 625789
Prepayments 7 2957963 1909444
Other receivables 8 2985983 3500623
Inventories 9 22977466 18370708
Contract assets 10 380944 385576
Held-for-sale assets - 363065
Non-current assets due within one year 11 1536827 1564945
Other current assets 12 8151975 8411624
Total current assets 101661709 102777212
Non-current assets
Debt investments 13 574650 578159
Long-term receivables 14 94730 120628
Long-term equity investments 15 24224710 23349193
Investments in other equity instruments 16 176292 356456
Other non-current financial assets 17 4561038 3172659
Investment properties 18 421250 401873
Fixed assets 19 157724421 165003156
Construction in progress 20 18834204 16176848
Right-of-use assets 21 4297808 6189174
Intangible assets 22 17879484 18467310
Development expenditures 23 1048597 1204955
Goodwill 24 11478778 11409749
Long-term deferred expenses 25 2676372 2282883
Deferred income tax assets 26 3273398 2936332
Other non-current assets 27 16217528 18311727
Total non-current assets 263483260 269961102
Total assets 365144969 372738314
Person-in-
Person-in-charge charge of
Legal of financial the financial Jing
representative: Li Dongsheng 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 2026 December 31 2025
Current liabilities
Short-term borrowings 29 10889509 7552523
Borrowings from the Central Bank 30 109722 29756
Customer deposits and deposits from other
banks and financial institutions 31 242294 364714
Held-for-trading financial liabilities 32 237565 235717
Derivative financial liabilities 33 137277 50435
Notes payable 34 8746702 6465600
Accounts payable 35 34428400 32251944
Advances from customers 36 5795 6823
Contract liabilities 37 1994629 2009842
Employee compensation payable 38 4036787 4966488
Taxes and levies payable 39 1122967 1238334
Other payables 40 16785612 17715638
Held-for-sale liabilities 41 - 71510
Non-current liabilities due within one year 42 29402192 30909784
Other current liabilities 43 6847431 1662144
Total current liabilities 114986882 105531252
Non-current liabilities
Long-term borrowings 44 103335672 116139349
Bonds payable 45 9981860 7981874
Lease liabilities 46 3788755 4148598
Long-term payables 47 1161439 1388759
Long-term employee compensation payable 38 21295 21605
Deferred income 48 2443190 2151176
Deferred income tax liabilities 26 1588589 1775607
Provision 49 208709 231480
Other non-current liabilities 50 9003 25635
Total non-current liabilities 122538512 133864083
Total liabilities 237525394 239395335
Share capital 51 20800862 20800862
Other equity instruments 52 997630 -
Capital reserves 53 13334533 14155725
Less: Treasury share 54 1506488 1503652
Other comprehensive income 55 (1000894) (1042359)
Surplus reserves 56 4096815 4096815
Specific reserves 57 6446 5598
General risk reserve 58 8934 8934
Retained earnings 59 26829952 24910834
Total equity attributable to shareholders of the
parent company 63567790 61432757
Non-controlling interests 64051785 71910222
Total shareholders’ equity 127619575 133342979
Total liabilities and shareholders' equity 365144969 372738314
Person-in-
Person-in-charge charge of
Legal of financial the financial Jing
representative: Li Dongsheng 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 Income Statement
(RMB’000)
Note V January - June 2026 January - June 2025
I. Total revenue 88686905 85661626
Including: Operating revenue 60 88648187 85560004
Interest income 61 38718 101622
Less: Operating cost 60 77240902 74082838
Interest expenditures 61 994 7789
Taxes and levies 62 529504 598144
Sales expenses 63 1208258 1163965
Administrative expenses 64 2352226 2200559
R&D expenses 65 4547732 4741879
Financial expenses 66 2334063 2141282
Including: Interest expenses 2033917 2555367
Interest income 268765 353536
Add: Other income 67 819234 1238502
Return on investment 68 2193723 831296
Including: Return on investment in
joint ventures and associates 1372342 582521
Exchange gain 61 972 207
Gain on changes in fair value 69 1257456 469888
Credit impairment loss 70 (11349) (25391)
Asset impairment loss 71 (2328103) (2798944)
Asset disposal income 72 51872 (3019)
II. Operating profit 2457031 437709
Add: Non-operating income 73 19590 29825
Less: Non-operating expenses 74 178162 119957
III. Gross profit 2298459 347577
Less: Income tax expense 75 55193 315894
IV. Net profits 2243266 31683
(I) Classification by business continuity
1. Net profits from continuing operations 2243266 31683
2. Net profits from discontinued operations - -
(II) Classification by ownership
1. Net profits attributable to shareholders of
the parent company 3808272 1883500
2. Net profit attributable to non-controlling
interests (1565006) (1851817)
V. Other comprehensive income net of tax 55 48197 (133902)
(I) Other comprehensive income that cannot
be subsequently reclassified into profit or loss 32510 (3342)
(II) Other comprehensive income that may
subsequently be reclassified into profit or loss 15687 (130560)
upon satisfaction of prescribed conditions
VI. Total comprehensive income 2291463 (102219)
Total comprehensive income attributable to
the shareholders of the parent company 3849737 1800148
Total comprehensive income attributable to
non-controlling interests (1558274) (1902367)
VII. Earnings per share: 76
(I) Basic earnings per share (RMB yuan) 0.1861 0.1014
(II) Diluted earnings per share (RMB yuan) 0.1831 0.1003
Person-in-
charge of the
Legal Person-in-charge of Financial
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 January - June2026 2025
I. Net cash generated from operating activities:
Proceeds from the sale of commodities and rendering of
services 98488400 98832510
Net increase/(decrease) in deposits from customers
banks and other financial institutions (122395) 946185
Net increase/(decrease) in borrowings from the Central
Bank 79950 400659
Cash received from interest handling charge and
commission 42800 86594
Tax and levy rebates 4105154 2647636
Other cash received relating to operating activities 77 5393139 8523407
Sub-total of cash inflows in operating activities 107987048 111436991
Cash paid for commodities and services (72475378) (64763780)
Net (increase)/decrease in loans and advances to
customers - (273794)
Net (increase)/decrease in deposits with the Central
Bank banks and other financial institutions 65815 23669
Cash paid for interest service charges and commissions (1432) -
Cash paid to and for employees (8064471) (7713812)
Taxes and levies paid (1990494) (2607678)
Other cash paid relating to operating activities 78 (7898936) (8827613)
Sub-total of cash outflows from operating activities (90364896) (84163008)
Net cash generated from operating activities 83 17622152 27273983
II. Cash flow generated from investing activities:
Proceeds from disinvestments 78715281 47498688
Proceeds from return on investments 2116245 1282593
Net proceeds from disposal of fixed assets intangible
assets and other long-term assets 320262 5281
Net proceeds from disposal of subsidiaries and other
business units 17499 -
Other cash received relating to investing activities 79 266765 182916
Sub-total of cash inflows from investment activities 81436052 48969478
Payments for the acquisition and construction of fixed
assets intangible assets and other long-term assets (10809938) (8313973)
Payments for investments (78597560) (56395015)
Net payments for acquiring subsidiaries and other
business units 83 (1762058) (6104583)
Cash used in other investing activities 80 (637513) (464253)
Subtotal of cash outflows from investing activities (91807069) (71277824)
Net cash generated from investing activities (10371017) (22308346)
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 Cash Flow Statement (Continued)
(RMB’000)
Note V January - June January - June2026 2025
III. Cash flow generated from financing activities:
Capital contributions received 2432078 71254
Including: Capital contributions by non-controlling
interests to subsidiaries 1434448 71254
Borrowings raised 30934262 48905168
Cash received from bond issue 7000000 3240000
Other cash received relating to financing activities 81 236894 544843
Sub-total of cash inflows from financing activities 40603234 52761265
Cash paid for debt repayment (39380608) (40458985)
Cash paid for distribution of dividends and profits or the
repayment of interests (3984271) (2718734)
Including: Dividend and profit paid by subsidiaries to
minority shareholders (48023) (11617)
Other cash paid relating to financing activities 82 (8807007) (9101549)
Subtotal of cash outflows from financing activities (52171886) (52279268)
Net cash generated from financing activities (11568652) 481997
IV. Effect of exchange rate changes on cash and cash
equivalents (29562) 247772
V. Net increase in cash and cash equivalents (4347079) 5695406
Add: Beginning balance of cash and cash equivalents 26565803 20861255
VI. Ending balance of cash and cash equivalents 84 22218724 26556661
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
Consolidated Statement of Changes in Shareholders’ Equity
(RMB’000)
January - June 2026
Equity attributable to shareholders of the parent company
Other Total
Share capital Other equity Capital Specificinstruments reserves Treasury share reserves comprehensive
Surplus General risk Retained Non-controlling
income reserves reserve earnings interests
shareholders’
equity
I. Balance at the end of the prior year 20800862 - 14155725 (1503652) 5598 (1042359) 4096815 8934 24910834 71910222 133342979
Add: Change in accounting policies - - - - - - - - - - -
II. Balance at the beginning of the current
period 20800862 - 14155725 (1503652) 5598 (1042359) 4096815 8934 24910834 71910222 133342979
III. Movement of the current period - 997630 (821192) (2836) 848 41465 - - 1919118 (7858437) (5723404)
(I) Comprehensive income - - - - - 24388 - - 3808272 (1558274) 2274386
(II) Capital contributed and reduced by - - - - - -
shareholders 997630 (810923) (2836) (6006982) (5823111)
Capital contributed by shareholders - - (679984) (400044) - - - - - 1880115 800087
Share-based payments included in owners' -
equity - (65496) 397208
- - - - - 10449 342161
Amount of bond issuance included in - - - - - - - -
owners' equity 997630 - 997630
Others - - (65443) - - - - - - (7897546) (7962989)
(III) Profit distribution - - - - - - - - (1872077) (294114) (2166191)
Appropriation to shareholders - - - - - - - - (1872077) (294114) (2166191)
(IV) Internal transfer of owner's equity - - - - - 17077 - - (17077) - -
Other comprehensive income transferred to - - - - - 17077 - - - -
retained earnings (17077)
(V) Specific reserves - - - - 848 - - - - 933 1781
Accrued in the period - - - - 3422 - - - - 8364 11786
Specific reserves used in the current period - - - - (2574) - - - - (7431) (10005)
(VI) Others - - (10269) - - - - - - - (10269)
IV. Balance as at the end of the current period 20800862 997630 13334533 (1506488) 6446 (1000894) 4096815 8934 26829952 64051785 127619575
Person-in-charge of
Legal Person-in-charge of the financial
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 Statement of Changes in Shareholders’ Equity
(RMB’000)
January - June 2025
Equity attributable to shareholders of the parent company
Share capital Other equity Capital Treasury Specific
Other Surplus General risk Retained Non-controlling Total
instruments reserves share reserves comprehensiveincome reserves reserve earnings interests
shareholders’
equity
I. Balance at the end of the prior year 18779081 - 10553081 (919322) 7189 (740459) 3974386 8934 21504719 79536135 132703744
Add: Change in accounting policies - - - - - - - - - - -
II. Balance at the beginning of the current
period 18779081 - 10553081 (919322) 7189 (740459) 3974386 8934 21504719 79536135 132703744
III. Movement of the current period - - (647340) 215670 (2069) (83352) - - 944588 (3789084) (3361587)
(I) Comprehensive income - - - - - (83310) - - 1883500 (1902367) (102177)
(II) Capital contributed and reduced by - - (628811) 215670 - - - - -shareholders (1871965) (2285106)
Capital contributed by shareholders - - (621898) - - - - - - 71254 (550644)
Share-based payments included in owners' - -
equity (6913) 215670
- - - - - 50426 259183
Amount of bond issuance included in - - - - - - - - - -
owners' equity -
Others - - - - - - - - - (1993645) (1993645)
(III) Profit distribution - - - - - - - - (938954) (14752) (953706)
Appropriation to shareholders - - - - - - - - (938954) (14752) (953706)
(IV) Internal transfer of owner's equity - - - - - (42) - - 42 - -
Other comprehensive income transferred to - - - - - - - - -
retained earnings (42) 42
(V) Specific reserves - - - - (2069) - - - - - (2069)
Accrued in the period - - - - 3892 - - - - - 3892
Specific reserves used in the current period - - - - (5961) - - - - - (5961)
(VI) Others - - (18529) - - - - - - - (18529)
IV. Balance as at the end of the current period 18779081 - 9905741 (703652) 5120 (823811) 3974386 8934 22449307 75747051 129342157
Person-in-charge of
Legal Person-in-charge of the financial
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
Balance Sheet of the Company
(RMB’000)
Assets Note XVI June 30 2026 December 31 2025
Current assets
Monetary assets 3758529 4414482
Held-for-trading financial assets 10568829 8909440
Accounts receivable 1 57531 209196
Prepayments 26559 23168
Other receivables 2 14453878 9613847
Non-current assets due within one year 1500000 -
Other current assets 24364 23485
Total current assets 30389690 23193618
Non-current assets
Long-term equity investments 3 88145008 95318595
Other non-current financial assets 4 797684 398546
Investment properties 68156 69999
Fixed assets 38076 42829
Construction in progress 176674 100922
Right-of-use assets 395550 407196
Intangible assets 65937 72133
Long-term deferred expenses 19792 19886
Other non-current assets 3860503 1583068
Total non-current assets 93567380 98013174
Total assets 123957070 121206792
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
Balance Sheet of the Company (Continued)
(RMB’000)
Liabilities and shareholders' equity Note XVI June 30 2026 December 31 2025
Current liabilities
Short-term borrowings 2750379 400177
Accounts payable 13544 23967
Contract liabilities 1125 95
Employee compensation payable 200379 224501
Taxes and levies payable 334 28093
Other payables 22298305 26164087
Non-current liabilities due within one 9159331 7667893
Oyetahrer current liabilities 9934 8099
Total current liabilities 34433331 34516912
Non-current liabilities
Long-term borrowings 15315442 16046784
Bonds payable 9981860 7981874
Lease liabilities 4684 9250
Long-term employee compensation 18259 18570
pDaeyfaebrrled income 14921 16382
Total non-current liabilities 25335166 24072860
Total liabilities 59768497 58589772
Share capital 20800862 20800862
Other equity instruments 997630 -
Capital reserves 22028529 22142686
Less: Treasury share 1506488 1503652
Other comprehensive income (75588) (103971)
Surplus reserves 3894751 3894751
Retained earnings 18048877 17386344
Total shareholders’ equity 64188573 62617020
Total liabilities and shareholders' equity 123957070 121206792
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
Income Statement of the Company
(RMB’000)
Note XVI January - June January - June2026 2025
I. Operating revenue 5 211187 186466
Less: Operating cost 5 80518 92112
Taxes and levies 4556 8101
Sales expenses 27992 13786
Administrative expenses 259378 188505
R&D expenses 66897 47687
Financial expenses 398659 576905
Including: Interest expenses 551827 768238
Interest income 150441 171300
Add: Other income 5431 1070
Return on investment 6 3085173 1274402
Including: Return on investment in joint
ventures and associates 6 1049730 865987
Gain on changes in fair value 178088 195528
Credit impairment loss 1 (5378)
Asset disposal income (32) 22
II. Operating profit 2641848 725014
Add: Non-operating income 61 21
Less: Non-operating expenses 107299 8611
III. Gross profit 2534610 716424
Less: Income tax expenses - -
IV. Net profits 2534610 716424
V. Other comprehensive income 28384 (47847)
VI. Total comprehensive income 2562994 668577
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 XVI January - June January - June2026 2025
I. Net cash generated from operating activities:
Proceeds from the sale of commodities and
rendering of services 320669 310122
Tax and levy rebates 966 -
Other cash received relating to operating activities 536021 13748998
Sub-total of cash inflows in operating activities 857656 14059120
Cash paid for commodities and services (200637) (32950)
Cash paid to and for employees (161311) (89531)
Taxes and levies paid (13859) (17353)
Other cash paid relating to operating activities (1445398) (1287859)
Sub-total of cash outflows from operating
activities (1821205) (1427693)
Net cash generated from operating activities (963549) 12631427
II. Cash flow generated from investing activities:
Proceeds from disinvestments 31361679 24786151
Proceeds from return on investments 1827296 875376
Net proceeds from disposal of fixed assets
intangible assets and other long-term assets 480 -
Other cash received relating to investing activities - 2894923
Sub-total of cash inflows from investment
activities 33189455 28556450
Payments for the acquisition and construction of
fixed assets intangible assets and other long-term (82334) (21658)
assets
Payments for investments (36360618) (38103002)
Cash used in other investing activities - (103085)
Subtotal of cash outflows from investing activities (36442952) (38227745)
Net cash generated from investing activities (3253497) (9671295)
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 XVI January - June January - June2026 2025
III. Cash flow generated from financing activities:
Capital contributions received 997630 -
Borrowings raised 13757077 10806010
Cash received from bond issue 7000000 3240000
Other cash received relating to financing
activities 161129 87113
Sub-total of cash inflows from financing
activities 21915836 14133123
Cash paid for debt repayment (15552820) (12707110)
Cash paid for distribution of dividends and
profits or repayment of interests (2339600) (589567)
Other cash paid relating to financing
activities (408074) (1252578)
Subtotal of cash outflows from financing
activities (18300494) (14549255)
Net cash generated from financing activities 3615342 (416132)
IV. Effect of exchange rate changes on cash and
cash equivalents (1758) (582)
V. Net increase in cash and cash equivalents (603465) 2543418
Add: Beginning balance of cash and cash
equivalents 4353581 1508068
VI. Ending balance of cash and cash equivalents 3750119 4051486
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
Statement of Changes in Shareholder Equity of the Company
(RMB’000)
January - June 2026
Other Total
Other equity comprehensi Surplus Retained shareholders’
Share capital instruments Capital reserves Treasury share ve income reserves earnings equity
I. Balance at the end of the prior year 20800862 - 22142686 (1503652) (103971) 3894751 17386344 62617020
Add: Change in accounting policies - - - - - - - -
II. Balance at the beginning of the current -
period 20800862 22142686 (1503652) (103971) 3894751 17386344 62617020
III. Movement of the current period - 997630 (114157) (2836) 28383 - 662533 1571553
(I) Comprehensive income - - - - 28383 - 2534610 2562993
(II) Capital contributed and reduced by - 997630 (106855) (2836) - - -shareholders 887939
Capital contributed by shareholders - - - (400044) - - - (400044)
Share-based payments included in - -
owners' equity (106855) 397208
- - - 290353
Amount of bond issuance included in - 997630 - - - - -
owners' equity 997630
(III) Profit distribution - - - - - - (1872077) (1872077)
Appropriation to shareholders - - - - - - (1872077) (1872077)
(IV) Internal transfer of owner's equity - - - - - - - -
(V) Others - - (7302) - - - - (7302)
IV. Balance as at the end of the current 997630
period 20800862 22028529 (1506488) (75588) 3894751 18048877 64188573
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 2025
Other Total
Other equity comprehensi Surplus Retained shareholders’
Share capital instruments Capital reserves Treasury share ve income reserves earnings equity
I. Balance at the end of the prior year 18779081 - 16332255 (919322) 167402 3772322 17272749 55404487
Add: Change in accounting policies - - - - - - - -
II. Balance at the beginning of the current
period 18779081 16332255 (919322) 167402 3772322 17272749 55404487
III. Movement of the current period - - (38681) 215670 (47847) - (222530) (93388)
(I) Comprehensive income - - - - (47847) - 716424 668577
(II) Capital contributed and reduced by - - - - -
shareholders (40024) 215670 175646
Capital contributed by shareholders - - - - - - - -
Share-based payments included in owners' - -
equity (40024) 215670
- - - 175646
Amount of bond issuance included in owners' - - - - - - -
equity -
(III) Profit distribution - - - - - - (938954) (938954)
Appropriation to shareholders - - - - - - (938954) (938954)
(IV) Internal transfer of owner's equity - - - - - - - -
(V) Others - - 1343 - - - - 1343
IV. Balance as at the end of the current period 18779081 - 16293574 (703652) 119555 3772322 17050219 55311099
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 2026
(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 20800862447 as of June 30 2026.The main business structure of the Company and its subsidiaries consists of display new
energy photovoltaics 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 27 2026.II Basis for the Preparation of Financial Statements
1 Basis for the preparation
The Company prepares its financial statements on a going concern basis. The recognition and
measurement of items are based on actual transactions and events in accordance with the
Accounting Standards for Business Enterprises and their application guidelines and
interpretations. In addition the Company discloses relevant financial information in
compliance with the Compilation Rules for Information Disclosure by Companies Offering
Securities to the Public No. 15 — General Provisions on Financial Reports (2023 Revision)
issued by the China Securities Regulatory Commission (CSRC).
2 Going concern basis
The Company has assessed its ability to continue as a going concern for the 12 months from
the end of the Reporting Period and has not identified any matters that would affect its ability
to continue as a going concern. Therefore it is reasonable for the Company to prepare the
financial statements 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 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
1 Statement of compliance with Accounting Standards for Business Enterprises
The financial statements prepared by the Company comply with the Accounting Standards for
Business Enterprises and present truly and completely the financial position operating results
changes in owners' equity and cash flows of the Company for the Reporting Period.
2 Accounting period
The Company's accounting year is from January 1 to December 31 of the Gregorian calendar.
3 Operations cycle
The Company's normal operating cycle is one year.
4 Functional currency for bookkeeping
The functional currency of the Company is Renminbi. The functional currency of its overseas
subsidiaries is the currency of the primary economic environment in which they operate. Unless
otherwise stated the amounts in these financial statements are presented in thousands of
Renminbi (RMB'000).
5 Method and selection basis for determining importance criteria
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 allowance is
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 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
6 Accounting treatments for business combinations involving enterprises under and not under
common control
(1) Business combinations involving enterprises 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 at the
combination date. If the accounting policies and accounting periods adopted by the combinee
differ from those of the Company prior to the business combination adjustments are made to the
carrying amounts of the combinee's assets and liabilities based on the principle of materiality to
align with the Company's accounting policies and accounting periods. In a business combination
if there is a difference between the carrying amount of the net assets acquired and the carrying
amount of the consideration paid the capital reserves (specifically capital premium or share
premium) are adjusted first. If the balance of the capital reserves are insufficient to absorb the
difference any excess is adjusted against surplus reserve and undistributed profits sequentially.For the accounting treatment of business combinations under common control achieved through
step-by-step transactions please refer to Note III. 7(5).
(2) Business combination not under common control
The identifiable assets and liabilities of the acquiree acquired in a business combination are
measured at fair value at the acquisition date. If the accounting policies or accounting periods
adopted by the acquiree differ from those of the Company adjustments are made to the carrying
amounts of the acquiree's assets and liabilities based on the principle of materiality to align with
the Company's accounting policies and accounting periods. At the acquisition date any excess of
the cost of the business combination over the net fair value of the acquiree's identifiable assets
and liabilities acquired in the combination is recognized as goodwill. If the cost of the
combination is less than the net fair value of the acquiree's identifiable assets and liabilities
acquired a reassessment is first conducted on the cost of the combination and the fair values of
the acquiree's identifiable assets and liabilities acquired. If after the reassessment the cost of the
combination remains less than the fair value of the acquiree's identifiable assets and liabilities
acquired the difference is recognized immediately in profit or loss for the current period.For the accounting treatment of business combinations not under common control achieved
through step-by-step transactions please refer to Note III. 7(5).
(3) Treatment of Transaction Costs in Business Combinations
Intermediary fees for audits legal services appraisal and consulting services and other related
administrative expenses incurred for the purpose of a business combination are recognized in
profit or loss in the period in which they are incurred. Transaction costs for the issue of equity or
debt securities as combination consideration are included in the initial recognition amount of the
equity or debt securities.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
7 Methods for judging control and preparing consolidated financial statements
(1) Criteria for determining control
Control means that the Company has the power over the investee enjoys variable returns through
participation in the relevant activities of the investee and has the ability to use its power over the
investee to influence the amount of its returns. The definition of control comprises three essential
elements: (1) the investor has the power over the investee; (2) the investor has rights to variable
returns from its involvement with the investee; and (3) the investor has the ability to use its power
over the investee to influence the amount of the investor's returns. When the three elements described
above are met with respect to the Company's investment in an investee the investee is considered to
be controlled by the Company.The scope of consolidation is determined on the basis of control. It includes not only subsidiaries
determined by voting rights (or similar rights) alone or in combination with other arrangements but
also structured entities established based on one or more contractual arrangements.A subsidiary is an entity (including an enterprise a separable portion of an investee and a structured
entity controlled by the Company) that is controlled by the Company. A structured entity is an entity
that is designed so that voting rights or similar rights are not the determining factor in deciding who
controls the entity (note: sometimes referred to as a special purpose entity).
(2) Methods for preparing consolidated financial statements
The Company prepares the consolidated financial statements based on the financial statements of
itself and its subsidiaries and other relevant information.The Company prepares the consolidated financial statements in a manner that the whole Group will
be treated as an accounting entity to reflect the financial position operating results and cash flow of
the Group as a whole under unified accounting policies and accounting periods in accordance with
the recognition measurement and presentation requirements of relevant accounting standards for
business enterprises.* Combine the assets liabilities equity income expenses and cash flows of the parent company
with those of its subsidiaries.* Eliminate the carrying amount of the parent company's long-term equity investments in
subsidiaries against the parent company's portion of equity of each subsidiary.* Eliminate the effects of intragroup transactions between the parent company and its subsidiaries
as well as among subsidiaries. If an intragroup transaction indicates an impairment loss on the related
assets such loss is recognized in full.* Adjust special transactions from the perspective of the Group as a whole.
(3) Treatment of Changes in Subsidiaries During the Reporting Period
* Addition of Subsidiaries or Businesses
A. Subsidiaries or businesses acquired through business combinations involving enterprises under
common control
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
7 Methods for judging control and preparing consolidated financial statements (Continued)
(3) Treatment of Changes in Subsidiaries During the Reporting Period (Continued)
(a) In the preparation of the consolidated balance sheet the opening balances and the relevant
items in the comparative financial statements are adjusted as if the reporting entity after the
combination had existed since the time point when the ultimate controlling party obtained
control.(b) In the preparation of the consolidated income statement the income expenses and profits of
the subsidiary or business from the beginning of the period in which the combination occurred to
the end of the reporting period are included in the consolidated income statement. The related
items of the comparative financial statements are adjusted as if the reporting entity after the
combination had been in existence since the date when the ultimate controlling party obtained
control.(c) In the preparation of the consolidated cash flow statement cash flows of the subsidiary or
business 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 been in existence
since the date when the ultimate controlling party obtained control.B. Subsidiaries or business acquired through business combinations not under common control
(a) In the preparation of the consolidated balance sheet no adjustment is made to the opening
balances of the consolidated balance sheet.(b) In the preparation of the consolidated income statement the income expenses and profits of
the subsidiary or business from the acquisition date to the end of the Reporting Period are
included in the consolidated income statement.(c) In the preparation of the consolidated cash flow statement cash flows of the subsidiary from
the acquisition date to the end of the Reporting Period are included.* Disposal of subsidiaries or business
A. In the preparation of the consolidated balance sheet no adjustment is made to the opening
balances of the consolidated balance sheet.B. In the preparation of the consolidated income statement the income expenses and profits of
the subsidiary or business from the beginning of the period to the date of disposal are included in
the consolidated income statement.C. In the preparation of the consolidated cash flow statement cash flows of the subsidiary or
business from the beginning of the period to the date of disposal are 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 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
7 Methods for judging control and preparing consolidated financial statements (Continued)
(4) Special Considerations in Consolidation Elimination
* If a subsidiary holds long-term equity investments in the Company such investments are
treated as treasury shares of the Company and listed as a deduction from equity under the line
item "Less: Treasury shares" in the consolidated balance sheet.For long-term equity investments held among subsidiaries the investments are eliminated
against the corresponding share of the subsidiary's equity in the same manner as the elimination
of the Company's investments in its subsidiaries.* The items "Specific reserves" and "General risk reserves" are neither paid-in capital (or share
capital) and capital reserves nor to retained earnings and undistributed profits. After the
elimination of long-term equity investments against the equity of subsidiaries these reserves are
reinstated to the extent of the share attributable to the owners of the parent company.* If the elimination of unrealized profits or losses from intragroup sales results in temporary
differences between the carrying amounts of assets and liabilities in the consolidated balance
sheet and their tax bases in the respective tax entities deferred income tax assets or deferred tax
liabilities are recognized in the consolidated balance sheet with a corresponding adjustment
made to income tax expense in the consolidated income statement except for deferred tax arising
from transactions or events recognized directly in equity or from business combinations.* Unrealized intragroup gains or losses arising from the sale of assets by the Company to its
subsidiaries are eliminated in full against "Net profit attributable to owners of the parent
company". Unrealized intragroup transaction gains or losses arising from the sale of assets by a
subsidiary to the Company are allocated and eliminated between "Net profit attributable to
owners of the parent company" and "Net profit attributable to non-controlling interests" in
proportion to the Company's interest in such subsidiary. Unrealized intragroup transaction gains
or losses arising from the sale of assets between subsidiaries are allocated and eliminated
between "Net profit attributable to owners of the parent company" and "Net profit attributable to
non-controlling interests" in proportion to the Company's interest in the selling subsidiary.* If the current losses attributable to the non-controlling shareholders of a subsidiary exceed
their interest in the equity of the subsidiary the excess shall still be charged to the non-
controlling interests.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
7 Methods for judging control and preparing consolidated financial statements (Continued)
(5) Accounting Treatment of Special Transactions
* Acquisition of Non-controlling Interests
When acquiring equity interests in a subsidiary from non-controlling shareholders the Company
measures the cost of the newly acquired long-term equity investment in its separate financial
statements at the fair value of the consideration paid. In the consolidated financial statements the
difference between the cost of the long-term equity investment acquired through the purchase of
non-controlling interests andthe share of the subsidiary's net assets attributable to the additional
interest (calculated continuously from the date of acquisition or combination) shall be adjusted
against capital reserves (share premium). If the capital reserves are insufficient to absorb the
difference the excess shall be charged against surplus reserve and retained earnings in sequence.* Obtaining Control of a Subsidiary through Step-by-Step Transactions
A. Business Combinations under Common Control Achieved Through Step-by-Step
Transactions
On the date of combination in the separate financial statements the Company shall determine
the initial investment cost of the long-term equity investment based on its post-combination
share of the carrying amount of the subsidiary’s net assets as reflected in the ultimate controlling
party’s consolidated financial statements. The difference between this initial investment cost and
the sum of (i) the carrying amount of the long-term equity investment held prior to the
combination and (ii) the carrying amount of the new consideration paid for additional shares on
the date of combination shall be adjusted against capital reserves (share premium). If the capital
reserves are insufficient to absorb the difference the excess shall be charged against surplus
reserve and retained earnings in sequence.In the consolidated financial statements the assets and liabilities of the acquiree acquired in the
combination are measured at their carrying amounts as reflected in the ultimate controlling
party’s consolidated financial statements at the combination date except for adjustments arising
from differences in accounting policies or accounting periods. The difference between the
carrying amount of the net assets acquired in the combination and the sum of the carrying
amount of the investment held prior to the combination and the carrying amount of the new
consideration paid on the combination date is adjusted against capital reserves (share premium).If the capital reserves are insufficient to absorb the adjustment the excess is adjusted against
retained earnings.For the equity investment held before obtaining control over the acquiree relevant gains and
losses other comprehensive income and other changes in equity recognized between the later of
the date of obtaining the original equity or the date when the acquiring party and the acquired
party are under common control and the date of combination shall be deducted from the
beginning retained earnings or the profits and losses of the comparative statement period.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
7 Methods for judging control and preparing consolidated financial statements (Continued)
(5) Accounting Treatment of Special Transactions (Continued)
B. Business Combinations not under Common Control Achieved Through Step-by-Step
Transactions
On the acquisition date in the separate financial statements the initial investment cost of the
long-term equity investment is the sum of the carrying amount of the previously held long-
term equity investment and the cost of the new investment made on the acquisition date.In the consolidated financial statements the equity interest in the acquiree held prior to the
acquisition date shall be remeasured at its fair value on the acquisition date. If the previously
held equity interest is designated as a financial asset at fair value through other
comprehensive income (FVTOCI) the difference between its fair value and carrying amount
is recognized in retained earnings and the cumulative fair value changes previously
recognized in other comprehensive income relating to that equity interest are transferred to
retained earnings. If the previously held equity interest is a financial asset at fair value
through profit or loss (FVTPL) or a long-term equity investment accounted for using the
equity method the difference between its fair value and carrying amount is recognized in
investment income for the current period. If the previously held equity interest involves other
comprehensive income and other changes in owners' equity (other than net profit or loss
other comprehensive income and profit distribution) under the equity method the related
other comprehensive income is accounted for on the acquisition date on the same basis as
would be required if the investee had directly disposed of the related assets or liabilities and
the related other changes in owners' equity are transferred to investment income for the
period in which the acquisition date falls.* The Company’s Disposal of Long-term Equity Investment in a Subsidiary Without Loss
of Control
The difference between the disposal proceeds 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 assets of the subsidiary calculated continuously
from the acquisition date or combination date shall be adjusted against capital reserves (share
premium) in the consolidated financial statements. If the capital reserves are insufficient to
absorb the adjustment the remaining amount is adjusted against retained earnings.* The Company’s Disposal of Long-term Equity Investment in a Subsidiary with Loss of
Control
A. A single transaction
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
In the preparation of consolidated financial statements when the Company loses control over
the investee due to the disposal of part of the equity investment or other reasons the excess is
re-measured at its fair value as of the date of loss of control. The difference between the sum
of the consideration from the disposal and the fair value of the remaining equity and the sum
of the share of the original subsidiary’s net assets calculated on a continuous basis based on
the original shareholding ratio since the date of acquisition or combination and goodwill is
recognized as investment income in the current period when control is lost.Other comprehensive income related to the equity investment in the former subsidiary shall
be accounted for on the same basis as would be required if the relevant assets or liabilities
had been disposed of directly at the time control is lost. Other changes in owner's equity
under the equity method related to the former subsidiary are transferred to profit or loss for
the current period upon the loss of control.III Significant accounting policies and accounting estimates (Continued)
7 Methods for judging control and preparing consolidated financial statements (Continued)
(5) Accounting Treatment of Special Transactions (Continued)
B. Disposal Through Step-by-Step Transactions
In the consolidated financial statements it should be first determined whether the step-by-step
transactions constitute a "package transaction".If the step-by-step transactions do not constitute a "package transaction" in the separate
financial statements for each transaction prior to the loss of control over the subsidiary the
carrying amount of the long-term equity investment corresponding to the equity interest
disposed of is derecognized and the difference between the consideration received and the
carrying amount of the long-term equity investment disposed of is recognized in investment
income for the current period. In the consolidated financial statements such transactions are
accounted for in accordance with the relevant provisions regarding "The Company’s Disposal
of Long-term Equity Investment in a Subsidiary Without Loss of Control".If the step-by-step transactions constitute a package transaction the transactions are accounted
for as a single transaction of disposing of a subsidiary resulting in a loss of control. In the
separate financial statements the difference between the consideration received and the carrying
amount of the long-term equity investment corresponding to the disposed equity interest for
each transaction prior to the loss of control is initially recognized in other comprehensive
income and then transferred to profit or loss for the period in which control is lost. In the
consolidated financial statements for each transaction prior to the loss of control the difference
between the disposal consideration and the parent's share of the subsidiary's net assets
corresponding to the disposed investment is recognized in other comprehensive income and
then transferred to profit or loss for the period in which control is lost.When the terms conditions and economic influence of transactions conform to one or more of
the following multiple transactions are usually treated as a package transaction for accounting
purposes:
(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.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
(d) A transaction is considered uneconomical individually but is economical when considered
collectively with other transactions.* Dilution of Parent Company’s Equity Interest due to Capital Increase by Non-controlling
Shareholders of a Subsidiary
Other shareholders (non-controlling shareholders) of a subsidiary make capital injections into
the subsidiary thereby diluting the parent company's equity interest in the subsidiary. In the
consolidated financial statements the difference between parent company's share of the
subsidiary's net assets calculated based on its equity interest before the capital injection and the
parent company's share of the subsidiary's net assets calculated based on its equity interest after
the capital injection is adjusted against capital reserves (capital premium or share premium). If
the capital reserves are insufficient to absorb the adjustment the excess is adjusted against
retained earnings.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
8 Classification of joint arrangements and accounting treatment method for joint operations
A joint arrangement is an arrangement of which two or more parties have joint control. The
Company classifies its joint arrangements into joint operations and joint ventures.
(1) Joint operation
A joint operation is a joint arrangement whereby the Company has rights to the assets and
obligations for the liabilities relating to the arrangement.The Company recognizes the following items in relation to the interest in a joint operation and
carry out accounting treatment in accordance with the provisions of relevant accounting
standards for business enterprises:
* its assets including its share of any assets held jointly;
* its liabilities including its share of any liabilities incurred jointly;
* its revenue from the sale of its share of the output arising from the joint operations;
* its share of the revenue from the sale of the output by the joint operations; and
* its expenses including its share of any expenses incurred jointly.
(2) Joint venture
A joint venture is a joint arrangement whereby the Company has rights only to the net assets of
the arrangement.The Company accounts for its investments in joint ventures in accordance with the provisions
regarding the equity method for long-term equity investments.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
9 Criteria for determining cash and cash equivalents
Cash comprises cash on hand and demand deposits. Cash equivalents are short-term highly
liquid investments that are readily convertible to known amounts of cash and which are subject
to an insignificant risk of changes in value. They generally have a maturity of three months or
less from the date of acquisition.
10 Foreign currency business and translation of foreign currency statements
(1) Determination of exchange rates for foreign currency transactions
Foreign currency transactions are initially translated into the functional currency at the spot
exchange rate on the date of the transaction or an exchange rate that approximates the spot
exchange rate and is determined using a systematic and reasonable method (hereinafter referred
to as the "approximate spot exchange rate").
(2) Translation of foreign currency monetary items at the balance sheet date
At the balance sheet date foreign currency monetary items are translated using the spot
exchange rate at that date. Exchange differences arising from the difference between the spot
exchange rate at the balance sheet date and the spot exchange rate at the initial recognition or the
previous balance sheet date are recognized in profit or loss for the current period. Foreign
currency non-monetary items measured at historical cost are translated at the spot exchange rate
on the date of the transaction. For inventories measured at the lower of cost and net realizable
value where the inventories are purchased in foreign currency and their net realizable value at
the balance sheet date is denominated in foreign currency the net realizable value is translated
into the functional currency using the spot exchange rate on the balance sheet date and then
compared with the cost of inventories denominated in the functional currency to determine the
carrying amount of such inventories. Foreign currency non-monetary items measured at fair
value are translated at the spot exchange rate at the date when the fair value was determined. For
financial assets measured at fair value through profit or loss the resulting exchange differences
are recognized in profit or loss. For non-trading equity instrument investments designated as
measured at fair value through other comprehensive income the resulting exchange differences
are recognized in other comprehensive income.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
10 Foreign currency business and translation of foreign currency statements (Continued)
(3) Translation of foreign currency financial statements
Prior to translating the financial statements of a foreign operation the accounting period and accounting
policies of the foreign operation are adjusted to align with those of the Company. Then financial statements
in the corresponding currency (a currency other than the functional currency) are then prepared based on the
adjusted accounting policies and accounting period. Thereafter the financial statements of the foreign
operation are then translated using the following methods:
* 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.* Income and expense items in the income statement are translated at the spot exchange rates at the dates of
the transactions or an approximate spot exchange rate.* Foreign currency cash flows and the cash flows of foreign subsidiaries are translated at the spot exchange
rates at the dates of the cash flows or at an exchange rate that approximates the spot exchange rate. The effect
of exchange rate changes on cash is presented separately in the statement of cash flows as a reconciling item.* In the preparation of consolidated financial statements the resulting foreign currency translation
differences are presented under the item "Other comprehensive income" within the owners' equity section of
the consolidated balance sheet.Upon the disposal of a foreign operation and loss of control the foreign currency translation differences
relating to that foreign operation presented within the owners' equity section of the balance sheet are
transferred to profit or loss for the current period either in full or in proportion to the disposal of that foreign
operation.
11 Financial instruments
Financial instruments are contracts that form a financial asset of one party and a financial liability or
equity instrument of another party.
(1) Recognition and derecognition of financial instruments
When the Company becomes a party to a financial instrument it recognizes the related financial asset or
liability.Financial assets are derecognized if any of the following conditions is met:
* The contractual right to receive cash flow from the financial asset is terminated;
* The financial asset has been transferred and satisfies the criteria for derecognition of financial assets
described below.If the current obligation of a financial liability (or part thereof) has been discharged such financial liability
(or part thereof) is derecognized. If the Company (as the borrower) enters into an agreement with a lender
to replace an original financial liability with a new one and the terms of the new liability are substantially
different from those of the original the original liability shall be derecognized and a new liability
recognized. If the Company makes substantial modifications to the contractual terms of an existing
financial liability (or a part thereof) the existing financial liability is derecognized and a new financial
liability is recognized in accordance with the modified terms.Regular way purchases and sales of financial assets are recognized and derecognized on the trade date. A
regular way purchase or sale of financial assets is a purchase or sale of financial assets that requires
delivery of the assets within the timeframe established by regulations or market conventions in accordance
with the terms of the contract. The trade date is the date on which the Company commits to purchase or
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
sell the financial asset.III Significant accounting policies and accounting estimates (Continued)
11 Financial instruments (Continued)
(2) Classification and measurement of financial assets
Upon initial recognition based on the Company's business model for managing financial assets and
the contractual cash flow characteristics of the financial assets financial assets are classified into
three categories: financial assets measured at amortized cost financial assets measured at fair value
through profit or loss and financial assets measured at fair value through other comprehensive
income. Financial assets are not reclassified subsequent to their initial recognition unless the
Company changes its business model for managing financial assets in which case all affected
financial assets are reclassified on the first day of the first reporting period following the change in
the business model.Financial assets are measured at fair value upon initial recognition. 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.For notes receivable and accounts receivable arising from the sale of goods or provision of services
that do not contain or involve a significant financing component the Company initially measures
them at the transaction price as defined by the revenue standard.Subsequent measurement of financial assets depends on their classification:
1 Financial assets are measured at amortized cost
A financial asset is classified as measured at amortized cost if it meets both of the following
conditions: the Company's business model for managing the financial asset is to collect contractual
cash flows; and the contractual terms of the financial asset give rise on specified dates to the cash
flows are solely payments of principal and interest on the principal amount outstanding. Such
financial assets are subsequently measured at amortized cost using the effective interest method.Gains or losses arising from derecognition amortization using the effective interest method or
impairment are all recognized in profit or loss for the current period.
2 Financial assets are measured at fair value through other comprehensive income
A financial asset is classified as a financial asset measured at fair value through other comprehensive
income if it meets both of the following conditions: The business model of the Company for
managing the financial asset is to collect contractual cash flows and to sell the financial asset; and the
contractual terms of the financial asset require that on specified dates the cash flows are solely
payments of principal and interest on the principal amount outstanding. Such financial assets are
subsequently measured at fair value. Except for impairment losses or gains and exchange differences
recognized in profit or loss for the current period changes in the fair value of such financial assets are
recognized in other comprehensive income. Upon derecognition of the financial asset the cumulative
gain or loss previously recognized in other comprehensive income is reclassified to profit or loss for
the current period. However interest income related to such financial assets calculated using the
effective interest method is recognized in profit or loss for the current period.The Company irrevocably designates certain non-trading equity instrument investments as financial
assets measured at fair value through other comprehensive income recognizes only the related
dividend income in profit or loss for the current period and recognizes changes in fair value in other
comprehensive income. Upon derecognition of the financial asset its accumulated gains or losses are
reclassified to retained earnings.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
11 Financial instruments (Continued)
(2) Classification and measurement of financial assets (Continued)
3 Financial assets are measured at fair value through profit or loss
All financial assets other than those measured at amortized cost or at fair value through other
comprehensive income are classified as measured at fair value through profit or loss. For such
financial assets the Company measures them at fair value subsequently and recognizes all
changes in fair value in profit or loss for the current period.
(3) Classification and measurement of financial liabilities
The Company classifies financial liabilities into: financial liabilities measured at fair value
through profit or loss loan commitments at below-market interest rates and financial guarantee
contract liabilities and financial liabilities measured at amortized cost.Subsequent measurement of financial liabilities depends on their classification:
* Financial liabilities measured at fair value through profit or loss
Such financial liabilities include held-for-trading financial liabilities (including derivatives
falling under financial liabilities) and financial liabilities designated as financial liabilities
measured at fair value through profit or loss. After initial recognition such financial liabilities
are subsequently measured at fair value. Unless they are part of a hedging relationship gains or
losses arising therefrom (including interest expenses) are recognized in profit or loss for the
current period. However for financial liabilities designated by the Company as measured at fair
value through profit or loss the amount of changes in the fair value of the financial liability that
is attributable to changes in the Company's own credit risk of that liability is recognized in other
comprehensive income. When such financial liabilities are derecognized the cumulative gains or
losses previously recognized in other comprehensive income is transferred from other
comprehensive income to retained earnings.* Loan commitments and financial guarantee contract liabilities
A loan commitment is a commitment made by the Company to provide a loan to a customer
under specified terms and conditions during the commitment period. Provision for impairment
losses on loan commitments is recognized based on the expected credit loss model.Financial guarantee contracts refer to contracts that require the Company 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 are subsequently measured at the higher of: the amount of the loss allowance
determined in accordance with the impairment principles for financial instruments and the
amount initially recognized less when appropriate the cumulative amount of income recognized
in accordance with the principles of revenue recognition.* Financial liabilities measured at amortized cost
After initial recognition other financial liabilities are measured at amortized cost using the
effective interest method.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
11 Financial instruments (Continued)
(3) Classification and measurement of financial liabilities (Continued)
Except in special circumstances financial liabilities and equity instruments are distinguished
according to the following principles:
* If the Company does not have an unconditional right to avoid delivering cash or another
financial asset to settle a contractual obligation the obligation meets the definition of a financial
liability. Some financial instruments may not explicitly contain terms and conditions imposing
an obligation to deliver cash or another financial asset but may indirectly establish such an
obligation through other terms and conditions.* If a financial instrument must or may be settled in the Company's own equity instruments
consideration is given to whether the Company's own equity instruments used for settlement are
provided as a substitute for cash or another financial asset or to provide the holder with a
residual interest in the assets of the issuer after deducting all liabilities. If it is the former the
instrument is a financial liability of the issuer; if it is the latter the instrument is an equity
instrument of the issuer. In certain cases a financial instrument contract stipulates that the
Company must or may settle the financial instrument using its own equity instruments and the
amount of the contractual right or obligation equals the number of own equity instruments to be
received or delivered multiplied by their fair value at settlement. In such cases regardless of
whether the amount of such contractual right or obligation is fixed or varies in whole or in part
based on changes in variables other than the market price of the Company's own equity
instruments (for example interest rates prices of certain commodities or prices of financial
instruments) the contract is classified as a financial liability.
(4) Derivative financial instruments and embedded derivatives
Derivative financial instruments are initially measured at fair value on the date the derivative
contract is entered into and are subsequently measured at fair value. Derivatives are carried as
financial assets when the fair value is positive and as financial liabilities when the fair value is
negative.Any gains or losses arising from changes in the fair value of derivatives are recognized directly
in profit or loss for the current period except for the effective portion of cash flow hedges which
is recognized in other comprehensive income and later reclassified to profit or loss when the
hedged item affects profit or loss.For hybrid instruments containing embedded derivatives if the host contract is a financial asset
the hybrid instrument as a whole is subject to the relevant provisions on the classification of
financial assets. If the host contract is not a financial asset and the hybrid instrument is not
accounted for at fair value through profit or loss the embedded derivative shall be separated
from the hybrid instrument and accounted for as a separate derivative financial instrument
provided that the embedded derivative is not closely related to the host contract in terms of
economic characteristics and risks and a separate instrument with the same terms would meet
the definition of a derivative. If the fair value of the embedded derivative cannot be separately
measured at the acquisition date or at a subsequent balance sheet date the entire hybrid
instrument is designated as a financial asset or financial liability at fair value through profit or
loss.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
11 Financial instruments (Continued)
(5) Impairment of financial instruments
The Company recognizes loss allowances based on expected credit losses for financial assets
measured at amortized cost debt investments measured at fair value through other
comprehensive income contract assets lease receivables loan commitments and financial
guarantee contracts etc.* Measurement of expected credit losses
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.Lifetime expected credit losses refer to the expected credit losses that result from all possible
default events over the expected life of a financial instrument.
12-month expected credit losses refer to the portion of lifetime expected credit losses that
represent the expected credit losses that result from default events on a financial instrument that
are possible within 12 months after the balance sheet date (or a shorter period if the expected life
of the financial instrument is less than 12 months).At each balance sheet date the Company measures the expected credit losses for financial
instruments in different stages separately. If the credit risk on a financial instrument has not
increased significantly since initial recognition it is classified as Stage 1 and the Company
measures the loss allowance at an amount equal to 12-month expected credit losses; if the credit
risk has increased significantly since initial recognition the financial instrument is not credit-
impaired it is classified as Stage 2 and the Company measures the loss allowance at the amount
equal to lifetime expected credit losses; if the financial instrument has become credit-impaired
since initial recognition it is classified as Stage 3 and the Company measures the loss allowance
at the amount equal to lifetime expected credit losses.For financial instruments that have low credit risk at the balance sheet date the Company
assumes that the credit risk has not increased significantly since initial recognition and measures
the loss allowance at an amount equal to 12-month expected credit losses.For financial instruments in Stage 1 and Stage 2 as well as those with low credit risk the
Company calculates interest income by applying the effective interest rate to their gross carrying
amount. For financial instruments in Stage 3 the Company calculates interest income by
applying the effective interest rate to their amortized cost (i.e. gross carrying amount less loss
allowance).For notes receivable accounts receivable receivables financing and contract assets regardless
of whether they contain a significant financing component exists the Company measures the
loss allowance at an amount equal to lifetime expected credit losses.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
11 Financial instruments (Continued)
(5) Impairment of financial instruments (Continued)
A. Receivables/Contract assets
For notes receivable accounts receivable other receivables receivables financing contract assets and
long-term receivables that have objective evidence of impairment or are otherwise subject to individual
assessment the Company performs impairment testing on an individual basis recognizes expected credit
losses and recognizes an individual loss allowance. For notes receivable accounts receivable other
receivables receivables financing contract assets and long-term receivables that do not have objective
evidence of impairment or when expected credit loss information for a single financial asset cannot be
assessed without undue cost or effort the Company classifies such receivables into several groups based
on credit risk characteristics and calculates expected credit losses on a collective basis.B. Debt investments and other debt investments
For debt investments and other debt investments the Company calculates expected credit losses based
on the nature of the investments the various types of counterparties and risk exposures and by using the
exposure at default and the 12-month or lifetime expected credit loss rate.* Having low credit risk
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.* Significant increase in credit risk
To assess whether the credit risk on a financial instrument has increased significantly since initial
recognition the Company compares the probability of a default occurring over the expected life
determined at the balance sheet date with that determined at initial recognition so as to determine the
relative change in the probability of a default occurring over the expected life of the financial instrument.In determining whether credit risk has increased significantly since initial recognition the Company
considers reasonable and supportable information that is available without undue cost or effort including
forward-looking information. The information considered by the Company includes:
A. Whether internal price indicators reflecting changes in credit risk have changed significantly;
B. Whether adverse changes in business financial or economic conditions are expected to cause a
significant change in the debtor's ability to meet its repayment obligations;
C. Whether the debtor's operating results have actually or expectedly changed significantly; whether the
regulatory economic or technological environment in which the debtor operates has changed
significantly and adversely;
D. Whether the value of collateral pledged for the debt or the quality of third-party guarantees or credit
enhancements has changed significantly. Whether these changes are expected to reduce the debtor's
economic incentive to make repayments as contractually scheduled or affect the probability of default;
E. Whether there are significant changes in the economic incentives that are expected to reduce the
debtor's willingness to make repayments as contractually scheduled;
F. Expected changes to loan agreements including whether anticipated covenant breaches may result in
the waiver or modification of contractual obligations the granting of interest-free periods interest rate
step-ups requirements for additional collateral or guarantees or other changes to the contractual
framework of the financial instrument;
G. Whether the debtor's expected performance and repayment behavior have changed significantly;
H. Whether contract payments are overdue for more than (including) 30 days.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
11 Financial instruments (Continued)
(5) Impairment of financial instruments (Continued)
Based on the nature of the financial instruments the Company assesses whether credit risk has
increased significantly on an individual financial instrument basis or on a collective basis. When
assessing on a collective basis the Company may group financial instruments based on shared
credit risk characteristics such as past due status and credit risk ratings.Generally if an instrument is more than 30 days past due the Company determines that the credit
risk on the financial instrument has increased significantly. Unless the Company has reasonable and
supportable information that is available without undue cost or effort demonstrating that the credit
risk has not increased significantly since initial recognition even though the contractual payments
are more than 30 days past due.* Financial assets with depreciation of credit
At the balance sheet date the Company assesses whether financial assets measured at amortized
cost and debt investments measured at fair value through other comprehensive income are credit-
impaired. 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:
The issuer or debtor is experiencing significant financial difficulty; the debtor is in breach of
contract such as default or delinquency in interest or principal payments; the creditor for economic
or contractual reasons relating to the debtor's financial difficulty grants the debtor a concession that
the creditor would not otherwise consider; the debtor is likely to become bankrupt or undergo other
financial reorganization; the active market for the financial asset disappears due to financial
difficulties of the issuer or debtor; a financial asset is purchased or originated at a deep discount that
reflects incurred credit losses.* Presentation of expected credit loss allowance
To reflect changes in the credit risk of a financial instrument since initial recognition the Company
remeasures expected credit losses at each balance sheet date. The resulting increase or reversal of
the loss allowance is recognized in profit or loss for the current period as impairment loss or gain.For financial assets measured at amortized cost the loss allowance reduces against the carrying
amount of the financial asset presented in the balance sheet. For debt investments measured at fair
value through other comprehensive income the Company recognizes the loss allowance in other
comprehensive income and does not reduce the carrying amount of the financial asset.* Write-off
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. This situation typically occurs when the
Company determines that the debtor has no assets or sources of income that could generate
sufficient cash flows to repay the amount to be written off.If a financial asset that has been written off is subsequently recovered the recovery is recognized in
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
profit or loss in the period of recovery as a reversal of impairment losses.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
11 Financial instruments (Continued)
(6) Transfer of financial assets
A transfer of financial assets occurs in either of the following two situations:
A. Transferring the contractual right to receive the cash flows of the financial asset to another party;
B. Transferring the financial asset in its entirety or in part to another party while retaining the
contractual right to receive the cash flows of the financial asset and assuming a contractual obligation
to pay the cash flows received to one or more recipients.* Derecognition of the transferred financial asset
If the Company has transferred substantially all the risks and rewards of ownership of the financial
asset to the transferee or if it has neither transferred nor retained substantially all the risks and rewards
of ownership of the financial asset but has not retained control of the financial asset the financial asset
is derecognized.In determining whether control of the transferred financial asset has been retained the Company
considers the transferee's practical ability to sell the asset. If the transferee has the practical ability to
sell the transferred financial asset in its entirety to an unrelated third party and is able to exercise that
ability unilaterally and without needing to impose additional restrictions on the transfer then the
Company has not retained control of the financial asset.In assessing whether a transfer of financial assets satisfies the conditions for derecognition of financial
assets the Company focuses on the economic substance of the transfer.If the overall transfer of financial assets meets the conditions for derecognition the difference between
the following two amounts shall be included in the current profits and losses:
A. The carrying amount of the transferred financial asset;
B. The sum of the consideration received for the transfer and the cumulative amount of changes in fair
value previously recognized directly in other comprehensive income that corresponds to the
derecognized portion (applicable where the transferred financial asset is one classified as measured at
fair value through other comprehensive income pursuant to Article 18 of the Accounting Standards for
Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments).If a financial asset is partially transferred and the transferred part meets the conditions for
derecognition the entire carrying amount of the financial asset shall be allocated between the
derecognized portion and the continuing recognized portion (in this case the retained servicing asset
shall be regarded as part of the continuing recognized financial asset) based on their respective relative
fair values on the transfer date and the difference between the following two amounts shall be
recognized in profit or loss for the current period:
A. The carrying amount of the derecognized portion on the derecognition date;
B. The sum of the consideration for the derecognized portion and the amount of the cumulative fair
value changes previously recognized in other comprehensive income that corresponds to the
derecognized portion (applicable where the transferred financial asset is one classified as measured at
fair value through other comprehensive income pursuant to Article 18 of the Accounting Standards for
Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments).TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
11 Financial instruments (Continued)
(6) Transfer of financial assets (Continued)
* Continuing involvement in the transferred financial asset
If the Company has neither transferred nor retained substantially all the risks and rewards of
ownership of the financial asset and has not relinquished control over the financial asset it shall
recognize the relevant financial asset to the extent of its continuing involvement in the transferred
financial asset and shall correspondingly recognize the relevant liability.The extent that it continues to be involved in the transferred financial asset refers to the extent to
which the Company bears the risks or rewards of changes in the value of the transferred financial
asset.* Continuing recognition of the transferred financial asset
If the Company retains substantially all the risks and rewards of ownership of the transferred
financial asset it shall continue to recognize the transferred financial asset in its entirety and
recognize the consideration received as a financial liability.The financial asset and the related financial liability recognized shall not be offset against each
other. In subsequent accounting periods the Company shall continue to recognize any income (or
gain) arising on the transferred financial asset and any expense (or loss) incurred on the associated
financial liability.
(7) Offsetting of Financial Assets and Financial Liabilities
In the balance sheet financial assets and financial liabilities shall be shown separately without
offsetting each other. However if the following conditions are met at the same time the net
amount after offsetting will be listed in the balance sheet:
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
liabilities at the same time.For a transfer of a financial asset that does not meet the derecognition criteria the transferor shall
not offset the transferred financial asset and the related liability.
(8) Determination of fair value of financial instruments
The fair value determination methods for financial assets and financial liabilities are set out in
Note III. 12.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
12 Fair Value Measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date.The Company measures the fair value of a relevant asset or liability using the price in the principal
market for the asset or liability or in the absence of a principal market the Company measures the
fair value of the relevant asset or liability using the price in the most advantageous market. The
Company uses assumptions that market participants would use when pricing the asset or liability
assuming that market participants act in their economic best interest.The principal market is the market with the greatest volume and level of activity for the relevant
asset or liability. The most advantageous market is the market that maximizes the amount that
would be received to sell the relevant asset or minimizes the amount that would be paid to transfer
the relevant liability after taking into account transaction costs and transport costs.For financial assets or financial liabilities with an active market the Company uses quoted prices in
the active market to determine their fair value. For financial assets or financial liabilities without an
active market the Company uses valuation techniques to determine their fair value.A fair value measurement of a non-financial asset takes into account a market participant's ability to
generate economic benefits by using the asset in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use.* Valuation techniques
The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available. The valuation techniques used mainly include the market approach the
income approach and the cost approach. The Company measures fair value using methods
consistent with one or more of these valuation techniques. Where multiple valuation techniques are
used to measure fair value the Company considers the reasonableness of each valuation result and
selects the amount that best represents fair value under current circumstances as the fair value.In the application of valuation techniques the Company prioritizes the use of relevant observable
inputs and uses unobservable inputs only when relevant observable inputs cannot be obtained or it is
impracticable to obtain them. Observable inputs are inputs that are developed using market data.These inputs reflect the assumptions that market participants would use when pricing the relevant
asset or liability. Unobservable inputs are inputs for which market data are not available. These
inputs are developed using the best information available about the assumptions that market
participants would use when pricing the asset or liability.* Fair value hierarchy
The Company categorizes the inputs used in fair value measurement into three levels and prioritizes
the use of Level 1 inputs then Level 2 inputs and lastly Level 3 inputs. Level 1 inputs are
unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the
measurement date. Level 2 inputs are inputs other than Level 1 inputs that are observable for the
relevant asset or liability either directly or indirectly. Level 3 inputs are unobservable inputs for the
relevant asset or liability.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
13 Inventories
(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
Inventories are shipped in transit by the weighted average method.
(3) Inventory system
The Company maintains a perpetual inventory system for its inventories and conducts physical
inventory counts at least once a year. Inventory overages and shortages are charged to profit or loss for
the current year.
(4) Recognition criteria and provisioning method for inventory impairment
At the balance sheet date inventories are measured at the lower of cost and net realizable value. If the
cost of inventories exceeds their net realizable value a provision for decline in value of inventories is
made and recognized in profit or loss for the current period.In determining the net realizable value of inventories the assessment is based on reliable evidence
available taking into account factors such as the purpose for which the inventories are held and the
effects of events after the balance sheet date.* For inventories such as finished goods commodities and materials for sale that are directly held for
sale their net realizable value is determined in the ordinary course of business as the estimated selling
price of such inventories less the estimated costs necessary to make the sale and relevant taxes and
charges. For inventories held for the purpose of performing sales contracts or service contracts the
contract price is used as the basis for measuring their net realizable value. If the quantity of inventories
held exceeds the quantity ordered under the sales contract the net realizable value of the portion in
excess is measured based on general selling prices. For materials for sale etc. market prices are used
as the basis for measuring their net realizable value.* For material inventories that require further processing their net realizable value is determined in
the ordinary course of business as the estimated selling price of the finished goods produced less the
estimated costs to completion the estimated costs necessary to make the sale and relevant taxes and
charges. If the net realizable value of the finished goods produced using such materials is higher than
their cost such materials are measured at cost. If a decline in material prices indicates that the net
realizable value of the finished goods is lower than their cost such materials are measured at net
realizable value and a provision for inventory impairment is made for the difference.* The Company generally makes provision for inventory impairment on an item-by-item basis. For
inventories with numerous quantities and low unit prices the provision is made on a category basis.
(5) Amortization method of turnover materials
The Company's turnover materials are amortized by the one-time amortization method.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
14 Contract Assets and Contract Liabilities
The Company presents contract assets or contract liabilities in the balance sheet based on the
relationship between the Company's performance and the customer's payment. The Company
presents as contract assets the consideration it has the right to charge for goods transferred or
services rendered to customers (where such right is conditional on something other than the
passage of time). The Company presents as contract liabilities its obligation to transfer goods or
render services to customers for consideration received or receivable.For the determination method and accounting treatment of expected credit losses on contract
assets please refer to Note III. 11.Contract assets and contract liabilities are presented separately in the balance sheet. Contract
assets and contract liabilities under the same contract are presented on a net basis. If the net
balance is a debit balance it is presented under "Contract assets" or "Other non-current assets"
depending on its liquidity. Where the net balance is a credit balance it is presented under
"Contract liabilities" or "Other non-current liabilities" depending on its liquidity. Contract assets
and contract liabilities under different contracts are not offset against each other.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
15 Contract costs
Contract costs are classified into costs to fulfill a contract and costs to obtain a contract.Costs incurred by the Company in fulfilling a contract are recognized as an asset (contract
performance costs) only when all of the following conditions are met:
* 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 customer and other
costs resulting from the contract.* The cost increases the resources of the Company that will be used to fulfill performance
obligations in the future.* The cost is expected to be recovered.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.Assets recognized for contract costs are amortized on a systematic basis that is consistent with the
transfer to the customer of the goods or services to which the assets relate. However if the
amortization period of the costs to obtain a contract is one year or less the Company recognizes them
in profit or loss when incurred.The Company recognizes an impairment loss to the extent that the carrying amount of an asset related
to contract costs exceeds the difference between the following two items and further considers
whether a provision for an onerous contract should be recognized:
* The remaining consideration expected to be received from the transfer of the goods or services to
which the asset relates; and
* The costs estimated to be incurred in transferring the related goods or services.If the impairment loss on the above assets is subsequently reversed the carrying amount of the asset
after reversal shall not exceed the carrying amount that would have been determined had no
impairment loss been recognized for the asset at the date of reversal.Contract fulfillment costs recognized as assets are presented under "Inventories" if the amortization
period at initial recognition does not exceed one year or one normal operating cycle and under "Other
non-current assets" if the amortization period at initial recognition exceeds one year or one normal
operating cycle.Assets recognized for costs to obtain a contract are presented under "Other current assets" if the
amortization period at initial recognition does not exceed one year or one normal operating cycle and
under "Other non-current assets" if the amortization period at initial recognition exceeds one year or
one normal operating cycle.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
16 Held-for-sale non-current assets or disposal groups
(1) Classification of non-current assets or disposal groups held for sale
The Company classifies a non-current asset or a disposal group as held for sale only if it meets all of the
following conditions:
* They can be sold immediately under the current status according to the practice of selling such assets or
disposal groups in similar transactions;
* The sale is highly probable meaning that the Company has made a resolution on a disposal plan and
obtained a firm purchase commitment and the sale is expected to be completed within one year. If
relevant regulations require approval from the Company's relevant authority or regulatory bodies before
disposal such approval has been obtained.When the Company acquires a non-current asset or disposal group exclusively with its view to subsequent
disposal it classifies the non-current asset or disposal group as held for sale at the acquisition date if it
meets the requirement that "the sale is expected to be completed within one year" and it is highly probable
that the other criteria for classification as held for sale will be met within a short period (usually three
months) the Company classifies it as held for sale on the acquisition date.If the Company is committed to a sale plan involving loss of control of a subsidiary regardless of whether
the Company will retain a non-controlling interest in the subsidiary after the disposal when the investment
in the subsidiary intended for disposal meets the criteria for classification as held for sale the entire
investment in the subsidiary shall be classified as held for sale in the separate financial statements of the
parent company and all assets and liabilities of the subsidiary are classified as held for sale in the
consolidated financial statements.
(2) Measurement of non-current assets or disposal groups held for sale
The measurement of investment properties subsequently measured using the fair value model biological
assets measured at fair value less costs to sell assets arising from employee compensation deferred
income tax assets financial assets governed by the accounting standards for financial instruments and
rights arising from insurance contracts governed by the accounting standards for insurance contracts shall
be subject to the respective relevant accounting standards.If at the time of initial measurement or remeasurement at the balance sheet date the carrying amount of a
non-current asset or disposal group held for sale exceeds its fair value less costs to sell the carrying
amount shall be written down to fair value less costs to sell. The amount of the write-down shall be
recognized as an asset impairment loss and included in profit or loss for the current period and an
impairment allowance for assets held for sale shall be accrued at the same time. If at a subsequent balance
sheet date the fair value less costs to sell of a non-current asset or disposal group held for sale increases
the previously written-down amount is reversed but only to the extent of the asset impairment loss
recognized after the classification as held for sale and the amount of the reversal are recognized in profit
or loss for the current period. An impairment loss recognized for goodwill at carrying amount is not
reversed.When a non-current asset or disposal group ceases to be classified as held for sale because it no longer
meets the criteria for classification as held for sale or when a non-current asset is removed from a disposal
group held for sale it is measured at the lower of the following two amounts:
* Its carrying amount before it was classified as held for sale adjusted for any depreciation amortization
or impairment that would have been recognized had the asset not been classified as held for sale; and
* Its recoverable amount.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
16 Held-for-sale non-current assets or disposal groups (Continued)
(3) Criteria for identifying discontinued operations
A discontinued operation refers to a component of the Company that can be separately distinguished
and has been disposed of or is classified as held for sale and which meets one of the following
conditions:
* This component represents an independent main business or a separate main operation region;
* This component is part of a related plan to dispose of an independent main business or a separate
main operation region;
* This component is a subsidiary acquired for the sole purpose of resale.
(4) Presentation
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.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
17 Long-term equity investments
The Company's long-term equity investments include equity investments where the Company
exercises control over or significant influence over the investee as well as equity investments in
joint ventures. An associate is an investee over which the Company has significant influence.
(1) Basis for determining joint control and significant influence over the investee
Joint control is the contractually agreed sharing of control of an arrangement which exists only
when decisions about the relevant activities require the unanimous consent of the parties sharing
control. In determining whether joint control exists the Company first assesses whether all
parties or a group of parties collectively control the arrangement. If all parties or a group of
parties must act together to decide the relevant activities of the arrangement it is considered that
all parties or a group of parties collectively control the arrangement. Secondly the Company
assesses whether decisions about the relevant activities of the arrangement require the
unanimous consent of the parties that collectively control the arrangement. If there are two or
more groups of parties that can collectively control the arrangement joint control does not exist.The Company does not consider protective rights when determining whether joint control exists.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. In determining
whether it can exercise significant influence over the investee the Company considers the voting
power it holds directly or indirectly by the investor in the investee as well as the effects of
potential voting rights currently exercisable by the investor and other parties assuming they are
converted into equity of the investee including the effects of currently exercisable warrants
share options and convertible bonds issued by the investee.When the Company directly or indirectly through subsidiaries owns 20% or more but less than
50% of the voting equity shares of the investee it is generally presumed that the Company has
significant influence over the investee unless it can be clearly demonstrated that under such
circumstances the Company cannot participate in the financial and operating policy decisions of
the investee and therefore does not have significant influence.
(2) Determination of initial investment cost
* For long-term equity investments arising from business combinations the investment cost
shall be determined in accordance with the following provisions:
A. For a business combination under common control where the combining party pays cash
transfers non-cash assets or assumes liabilities as the consideration for the combination the
initial investment cost of the long-term equity investment is the share of the carrying amount of
the combined party's owners' equity in the consolidated financial statements of the ultimate
controlling party at the combination date. The difference between the initial investment cost of
the long-term equity investment and the carrying amount of the cash paid the non-cash assets
transferred and the liabilities assumed is adjusted against capital reserves. If the capital reserves
are insufficient to absorb the difference retained earnings are adjusted.B. For a business combination under common control if the combining party issues equity
securities as the consideration for the combination the initial investment cost of the long-term
equity investment is the share of the carrying amount of the acquiree's equity in the consolidated
financial statements of the ultimate controlling party at the combination date. The share capital is
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
recognized based on the aggregate par value of the shares issued. The difference between the
initial investment cost of the long-term equity investment and the aggregate par value of the
shares issued shall be adjusted against capital reserves are. If the capital reserves are insufficient
to absorb the difference retained earnings are adjusted.C. For a business combination not under common control the combination cost determined as
the fair value of the assets given liabilities incurred or assumed and equity securities issued by
the acquirer to obtain control over the acquiree at the acquisition date is recognized as the initial
investment cost of the long-term equity investment. Intermediary expenses such as auditing
legal services and valuation consulting as well as other related administrative expenses incurred
by the combining party for the business combination are recognized in profit or loss for the
current period when incurred.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
17 Long-term equity investments (Continued)
(2) Determination of initial investment cost (Continued)
* For long-term equity investments acquired through means other than business combinations
the investment cost is determined in accordance with the following provisions:
A. For long-term equity investment acquired by cash payment the actual acquisition price is
recognized as investment cost. The initial investment cost includes expenses taxes and other
necessary expenses directly related to the acquisition of the long-term equity investment.B. For long-term equity investments acquired through the issuance of equity securities the initial
investment cost shall be the fair value of the equity securities issued.C. For long-term equity investments acquired through non-monetary asset exchanges where the
exchange has commercial substance and the fair value of either the asset received or the asset
given up can be reliably measured the initial investment cost shall be the fair value of the asset
given up plus relevant taxes and fees and the difference between the fair value and the carrying
amount of the asset given up shall be recognized in profit or loss for the current period. Where
the non-monetary asset exchange does not simultaneously meet both of the above conditions the
initial investment cost shall be the carrying amount of the asset given up plus relevant taxes and
fees.D. For long-term equity investments acquired through debt restructuring the carrying amount is
determined based on the fair value of the claim surrendered plus other costs such as taxes
directly attributable to the asset and the difference between the fair value and the carrying
amount of the claim surrendered is recognized in profit or loss for the current period.
(3) Subsequent measurement and methods for profit or loss recognition
Long-term equity investments through which the Company is able to exercise control over the
investee are accounted for using the cost method; long-term equity investments in associates and
joint ventures are accounted for using the equity method. For the Company's equity investments
in associates the portion held indirectly through venture capital organizations mutual funds
trust companies or similar entities including unit-linked insurance funds is measured at fair
value with changes recognized in profit or loss and the remaining portion is accounted for using
the equity method.* Cost method
For long-term equity investments accounted for using the cost method the cost of the long-term
equity investment is adjusted when additional investment is made or investment is withdrawn.Cash dividends or profits declared and distributed by the investee are recognized as investment
income for the current period.* Equity method
For long-term equity investments accounted for using the equity method the general accounting
treatment is as follows:
Where the initial investment cost of a long-term equity investment is greater than the Company's
share of the fair value of the investee's identifiable net assets at the time of investment the initial
investment cost of the long-term equity investment shall not be adjusted; otherwise the
difference shall be recognized in profit or loss for the current period and the cost of the long-
term equity investment shall be adjusted accordingly.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
17 Long-term equity investments (Continued)
(3) Subsequent measurement and methods for profit or loss recognition (Continued)
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. In recognizing the share of the net
profit or loss of the investee the net profit of the investee is adjusted and recognized based on the
fair value of the investee's identifiable net assets at the time of acquiring the investment. If the
accounting policies and accounting periods adopted by the investee are inconsistent with those of
the Company the financial statements of the investee are adjusted to conform to the Company's
accounting policies and accounting periods and investment income and other comprehensive
income are recognized based thereon. 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. Unrealized
losses on transactions between the Company and the investee that provide evidence of an
impairment of the transferred asset are recognized in full.If the Company is able to exercise significant influence or joint control over the investee due to
additional investment or other reasons but does not constitute control the sum of the fair value of
the originally held equity investment and the cost of the additional investment shall be used as the
initial investment cost under the equity method. Where the originally held equity investment is
classified as an investment in other equity instruments the difference between its fair value and
carrying amount as well as the cumulative gains or losses previously recognized in other
comprehensive income shall be transferred from other comprehensive income to retained earnings
in the period the equity method is adopted.Where the Company loses joint control or significant influence over the investee due to the disposal
of part of the equity investment or otherwise the remaining equity investment after the disposal
shall be measured at fair value and the difference between its fair value and carrying amount at the
date of losing joint control or significant influence shall be recognized in profit or loss for the
current period. 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.
(4) Equity investments held for sale
Where an equity investment in an associate or a joint venture is classified in whole or in part as held
for sale the relevant accounting treatment is set out in Note III. 16.For any retained portion of the equity investment not classified as held for sale the equity method is
applied.Where an equity investment in an associate or a joint venture that has been classified as held for sale
no longer meets the criteria for classification as held for sale the equity method is applied
retrospectively from the date of its classification as held for sale. The financial statements for the
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
periods during which the investment was classified as held for sale are adjusted accordingly.
(5) Impairment testing and provision methods for impairment losses
For investments in subsidiaries associates and joint ventures the method for making provision for
asset impairment is set out in Note III. 23.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
18 Investment properties
(1) Classification of investment properties
Investment properties refer to properties held to earn rentals or for capital appreciation or both.They mainly include:
* Land use rights that are leased out.* Land use rights held for transfer after appreciation.* Buildings that are leased out.
(2) Measurement model for investment properties
The Company uses the cost model for the subsequent measurement of investment properties. For
the method of providing for asset impairment see Note III. 23.The Company calculates depreciation or amortization for investment properties using the straight-
line method based on cost less accumulated impairment and net residual value. The depreciation
or amortization method adopts the same policy as that applied to buildings in fixed assets and land
use rights in intangible assets.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
19 Fixed assets
Fixed assets refer to tangible assets held for the purpose of producing goods rendering services
for rental or for operation and management with a service life exceeding one year and a relatively
high unit value.
(1) Recognition criteria
Fixed assets are recognized at the actual cost incurred at the time of acquisition when the
following conditions are met simultaneously:
* The economic benefits associated with the fixed assets are likely to flow into the enterprise.* The cost of the fixed asset can be measured in a reliable way.Subsequent expenditures on 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.
(2) Depreciation methods for various categories of fixed assets
The Company accrues depreciation using the straight-line method starting from the month
following the date when the fixed asset is ready for its intended use. The depreciation period and
annual depreciation rate are determined based on the category of the fixed asset the estimated
economic useful life and the estimated net residual value rate as follows:
Asset Category Estimated AnnualService 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%
For fixed assets for which an impairment provision has been recognized depreciation is calculated
based on the carrying amount net of the impairment provision.At the end of each financial year the Company reviews the useful lives estimated net residual
values and depreciation methods of fixed assets. Where the estimated useful life differs from the
previous estimate the useful life of the fixed asset shall be adjusted accordingly.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
20 Construction in progress
(1) Construction in progress is classified and accounted for by project.
(2) Criteria and timing for transferring construction in progress to fixed assets
Construction in progress is measured at the total expenditure incurred before the asset is ready for its
intended use which serves as the initial cost of the fixed asset. This includes construction costs
original cost of machinery and equipment other necessary expenditures incurred to bring the
construction in progress to the condition ready for its intended use as well as borrowing costs
incurred from special borrowings for the project and borrowing costs incurred from general
borrowings utilized before the asset is ready for its intended use. The Company transfers construction
in progress to fixed assets when the project installation or construction is completed and the asset is
ready for its intended use. For fixed assets that are ready for their intended use but have not yet
undergone final completion settlement they are transferred to fixed assets at an estimated value based
on the project budget construction cost or actual project cost from the date they are ready for their
intended use and depreciation is provided in accordance with the Company's fixed asset depreciation
policy. After the final completion settlement is processed the original provisional value is adjusted to
the actual cost but the originally accrued depreciation amount will not be adjusted.
21 Borrowing costs
(1) Recognition principles and capitalization period for borrowing costs
Borrowing costs that are directly attributable to the acquisition construction or production of
qualifying assets are capitalized and included in the cost of the relevant assets when the following
conditions are met simultaneously:
* Expenditure on the asset has been incurred;
* Borrowing costs have been incurred;
* The acquisition construction or production activities necessary to bring the assets to their intended
usable state have commenced.Other borrowing interest discount or premium and exchange differences are recognized in the profit
or loss of the current period.If the acquisition construction or production of a qualifying asset is abnormally interrupted and the
interruption lasts for more than three consecutive months the capitalization of borrowing costs will be
suspended.When an asset that meets the capitalization conditions is ready for its intended use or sale the
capitalization of borrowing costs will be ceased and subsequent borrowing costs will be recognized as
expenses for the current period.
(2) Calculation method for capitalization rate and capitalized amount
For special borrowings obtained for the acquisition construction or production of qualifying assets
the amount of interest expense actually incurred during the current period less any interest income
earned from depositing the unused borrowing funds in a bank or investment income from temporary
investments shall be recognized as the capitalized amount of interest expense.Where general borrowings are utilized for the acquisition construction or production of qualifying
assets the amount of interest to be capitalized shall be determined by multiplying the weighted average
of accumulated asset expenditures in excess of special borrowings by the capitalization rate of the
general borrowings utilized. 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 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
22 Intangible assets
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
Land use rights The shorter of the years of the land use rights and the operating years ofthe Company
Patents and non-patent 10 years or the shorter of service life beneficiary years and legally valid
technologies 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
23 "Long-term Asset Impairment" under Note III.
If the period over which an intangible asset is expected to bring economic benefits to the Company cannot
be foreseen it is regarded as an intangible asset with an indefinite useful life. The Company reviews its
useful life in each accounting period. If evidence indicates that the useful life is finite it is reclassified as an
intangible asset with a finite useful life. Intangible assets with indefinite useful 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 the original and planned
investigation undertaken for the purpose of acquiring and understanding new scientific or technical
knowledge. Development means the application of research results or other knowledge to a plan or design
for the production of new or substantially improved materials devices products etc. prior to the
commencement of 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;
(5) Expenditures attributable to the development stage of the intangible asset can be measured in a reliable 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 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
23 Impairment of long-term assets
Impairment of long-term equity investments in subsidiaries associates and joint ventures investment
properties measured using the cost model fixed assets construction in progress right-of-use assets
intangible assets and goodwill (excluding inventories investment properties measured using the fair
value model deferred income tax assets and financial assets) is determined in accordance with the
following methods:
At the balance sheet date the Company assesses whether there is any indication that an asset may be
impaired. If such an indication exists the Company estimates the recoverable amount and conducts an
impairment test. For goodwill arising from business combinations intangible assets with indefinite
useful lives and intangible assets not yet ready for use an impairment test is carried out annually
regardless of whether there is any indication of impairment.The recoverable amount is determined based on the higher of the fair value of the asset less costs of
disposal and the present value of estimated future cash flows. 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 cash-generating unit to
which the asset belongs. The identification of the cash-generating unit is based on whether the main
cash inflows generated by the cash-generating unit are independent of the cash inflows from other
assets or cash-generating units.When the recoverable amount of an asset or cash-generating unit is lower than its carrying amount the
carrying amount is written down to the recoverable amount and the amount written down is recognized
in profit or loss for the current period while a corresponding provision for asset impairment is made.For the purpose of goodwill impairment testing the carrying amount of goodwill arising from a
business combination is allocated to the relevant cash-generating units on a reasonable basis; if it is
difficult to allocate the goodwill to individual cash-generating units it is allocated to the related group
of cash-generating units. A relevant cash-generating unit or group of cash-generating units refers to the
unit or group that benefits from the synergies of the business combination and is not larger than the
operating segments determined by the Company.When conducting impairment tests if there are indications of impairment in the cash-generating units
or groups of cash-generating units related to goodwill the impairment test is first performed on the
cash-generating units or groups of cash-generating units excluding goodwill calculating the
recoverable amount and recognizing the corresponding impairment loss. Then impairment tests are
conducted on the cash-generating units or groups of cash-generating units including goodwill by
comparing their carrying amounts with their recoverable amounts. If the recoverable amount is lower
than the carrying amount an impairment loss for goodwill is recognized.Once an asset impairment loss is recognized it shall not be reversed in subsequent accounting periods.
24 Long-term deferred expenses
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.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
25 Employee benefits
Employee benefits refer to various forms of remuneration or compensation provided by the Company in
exchange for services rendered by employees or for the termination of employment relationships.Employee benefits include short-term employee benefits post-employment benefits termination
benefits and other long-term employee benefits. Benefits provided by the Company to the spouses
children dependents beneficiaries of deceased employees and other beneficiaries of employees are also
considered employee benefits.Based on liquidity employee benefits are presented separately under "Employee compensation payable"
and "Long-term employee compensation payable" in the balance sheet.(a) Accounting treatment for short-term employee benefits
Short-term employee benefits include employee wages or salaries bonuses allowances and subsidies
employee services and benefits 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) Accounting treatment for 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) Accounting treatment for 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) Accounting treatment for 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 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
26 Provision
(1) Recognition standards for provision
If an obligation relating to a contingency meets the following conditions simultaneously the
Company recognizes it as a provision:
* The obligation is a present obligation of the Company;
* It is probable that an outflow of economic benefits will be required to settle the obligation;
* The amount of the obligation can be reliably measured.
(2) Measurement methods for provision
A provision is initially measured at the best estimate of the expenditure required to settle the
related present obligation taking into account factors such as risks uncertainties and the time
value of money associated with the contingency. The carrying amount of a provision is reviewed
at each balance sheet date. Where there is convincing evidence that the carrying amount does not
reflect the current best estimate the carrying amount is adjusted to the current best estimate.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
27 Share-based payments
(1) Types of share-based payments
The Company's share-based payments include cash-settled share-based payments and equity-
settled share-based payments.
(2) Method for determining the fair value of equity instruments
* For shares granted to employees the fair value is measured based on the market price of the
Company's shares adjusted for the terms and conditions upon which the shares were granted
(excluding vesting conditions other than market conditions). * For share options granted to
employees it is often difficult to obtain their market price. If there are no traded options with
similar terms and conditions the Company selects an appropriate option pricing model to estimate
the fair value of the options granted.
(3) Basis for determining the best estimate of the number of equity instruments expected to vest
On each balance sheet date during the vesting period the Company makes the best estimates based
on the latest subsequent information such as changes in the number of employees eligible for
vesting and revises the estimated number of equity instruments expected to vest.
(4) Accounting treatment for the implementation of share-based payment plans
Cash-settled share-based payments
* For cash-settled share-based payments that are vested immediately upon grant the fair value of
the liability assumed by the Company is recognized in the relevant costs or expenses on the grant
date with a corresponding increase in liabilities. The fair value of the liability is remeasured at
each balance sheet date prior to settlement and on the settlement date and changes therein are
recognized in profit or loss.* For cash-settled share-based payments that become exercisable only after the completion of
services during the vesting period or the satisfaction of stipulated performance conditions the
services received in the current period are recognized in the relevant costs or expenses and
corresponding liabilities at each balance sheet date during the vesting period. This is based on the
best estimate of the vesting conditions and the fair value of the liability assumed by the Company.Equity-settled share-based payments
* For equity-settled share-based payments that vest immediately after grant in exchange for
employee services the fair value of the equity instruments is recognized in the relevant costs or
expenses on the grant date with a corresponding increase in capital reserves.* For equity-settled share-based payments in exchange for employee services that become vested
only after the completion of services during the vesting period or the satisfaction of stipulated
performance conditions the services received in the current period are recognized in the relevant
costs or expenses and capital reserves at each balance sheet date during the vesting period. This is
based on the best estimate of the number of equity instruments expected to vest and the fair value
of the equity instruments on the grant date.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
27 Share-based payments (Continued)
(5) Accounting treatment for modifications to share-based payment plans
When the Company modifies a share-based payment plan if the modification increases the fair
value of the equity instruments granted the increase in the fair value of the equity instruments is
recognized as a corresponding increase in the services received. If the modification increases the
number of equity instruments granted the fair value of the additional equity instruments is
recognized as a corresponding increase in the services received. The increase in the fair value of
the equity instruments is the difference between the fair value of the equity instruments
immediately before and after the modification measured at the modification date. If the
modification reduces the total fair value of the share-based payment or otherwise modifies the
terms and conditions of the share-based payment plan in a manner that is unfavourable to the
employees the Company continues to account for the services received as if the modification had
not been made unless the Company cancels part or all of the equity instruments granted.
(6) Accounting treatment for termination of share-based payment plans
If the Company cancels or settles the granted equity instruments during the vesting period (other
than those cancelled due to failure to satisfy vesting conditions) the Company:
* Treats the cancellation or settlement as an acceleration of vesting and immediately recognizes
the amount that would otherwise have been recognized over the remaining vesting period;
* Treats any payments made to employees upon cancellation or settlement as a repurchase of
equity interests and recognizes any excess of the repurchase consideration over the fair value of
the equity instruments on the repurchase date as an expense in the current period.If the Company repurchases vested equity instruments from its employees it reduces the
Company's equity. Any excess of the repurchase consideration over the fair value of the equity
instruments on the repurchase date is recognized in profit or loss for the current period.
28 Preference shares perpetual bonds and other financial instruments
In respect of other financial instruments issued by the Company such as preference shares and
perpetual bonds the Company classifies a financial instrument or its components into financial
assets financial liabilities or equity instruments upon initial recognition based on the contract
terms and the economic substance reflected by the financial instrument issued rather than solely
on legal form in conjunction with the definitions of financial assets financial liabilities and
equity instruments.The Company determines the accounting treatment for interest expenses or dividend distributions
of a financial instrument based on its classification. For a financial instrument classified as an
equity instrument regardless of whether its name includes "debt" its interest expenses or dividend
distributions are treated as profit distributions of the Company (the issuing entity) and its
repurchase or cancellation is treated as a change in equity. For a financial instrument classified as
a financial liability regardless of whether its name includes "share" its interest expenses or
dividend distributions are treated in principle as borrowing costs and any gains or losses arising
from its repurchase or redemption are recognized in profit or loss for the current period.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
29 Revenue recognition principles and measurement methods
(1) General principles
Revenue represents the gross inflow of economic benefits arising from the ordinary activities of the Company
which results in an increase in shareholders' equity and is distinct from capital contributions from
shareholders.The Company recognizes revenue when it satisfies a performance obligation in the contract which is when the
customer obtains control of the relevant goods or services. "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.If a contract contains two or more performance obligations the Company allocates the transaction price to
each performance obligation in proportion to the standalone selling price of the goods or services promised
under each performance obligation at the contract inception date and measures revenue based on the
transaction price allocated to each performance obligation.The transaction price is the amount of consideration to which the Company expects to be entitled in exchange
for the transfer of goods or services to a customer excluding amounts collected on behalf of third parties.When determining the transaction price of a contract if there is variable consideration the Company
determines the best estimate of the variable consideration using either the expected value method or the most
likely amount method. The Company includes in the transaction price some or all of an amount of variable
consideration only to the extent that it is highly probable that a significant reversal in the amount of
cumulative revenue recognized will not occur when the related uncertainty is subsequently resolved. If a
contract contains a significant financing component the Company determines the transaction price based on
the cash selling price that the customer would have paid when obtaining control of the goods. The difference
between the transaction price and the contractual consideration is amortized over the contract period using the
effective interest method. If the period between the transfer of control and the customer's payment does not
exceed one year the Company does not consider the financing component in the contract.If any of the following conditions is met a performance obligation is satisfied over time; otherwise it is
satisfied at a point in time:
* While fulfilling the due obligation in the Company the customer obtains and consumes the resulting
economic benefit;
* The customer is able to control the commodities under construction during the Company’s fulfillment;
* 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.For performance obligations satisfied over time the Company recognizes revenue over that period based on
the progress towards complete satisfaction of the performance obligation except when the progress cannot be
reasonably determined. The Company determines the progress towards satisfaction of service-related
performance obligations using the input method (or the output method). 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.For performance obligations satisfied at a point in time the Company recognizes revenue when the customer
obtains control of the relevant goods. When determining whether control has transferred the Company
considers the following indicators:
* The Company has a present right to payment for the goods or services for which the customer has a
present obligation to pay for the goods;
* The Company has transferred legal title of the goods to the customer for which the customer has legal title
to the goods;
* The Company has transferred physical possession of the goods to the customer for which the customer has
physical possession of the goods;
* The Company has transferred the significant risks and rewards of ownership of the goods to the customer
for which the customer has assumed the significant risks and rewards of ownership;
* The customer has accepted the goods.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
29 Revenue recognition principles and measurement methods (Continued)
(1) General principles (Continued)
Sales with right of return
For sales involving a right of return the Company recognizes revenue at the amount of consideration to
which it expects to be entitled upon transferring control of the goods to the customer and recognizes a
refund liability for the amount expected to be refunded due to sales returns. Simultaneously the
Company recognizes an asset for the right to recover products measured at the carrying amount of the
goods expected to be returned less the estimated costs to recover them (including any impairment in
value). The Company recognizes cost of sales as the carrying amount of the transferred goods less the net
cost of the asset recognized above. At each balance sheet date the Company reassesses its estimates of
expected returns and remeasures the corresponding refund liability and asset for the right to recover
products accordingly.Warranty obligations
The Company provides warranties for goods sold and projects constructed in accordance with contractual
agreements legal requirements and other applicable regulations. For assurance-type warranties which
serve to guarantee that the products meet agreed-upon specifications the Company accounts for such
warranties in accordance with Accounting Standards for Business Enterprises No. 13 – Contingencies.For service-type warranties that provide a service in addition to the assurance that the goods comply with
agreed-upon specifications the Company identifies them as a separate performance obligation. The
Company allocates a portion of the transaction price to the service-type warranty based on the relative
standalone selling prices of the goods and the warranty service and recognizes revenue when the
customer obtains control of the service. In determining whether a warranty provides a service in addition
to the assurance that the goods comply with agreed-upon specifications the Company considers factors
such as whether the warranty is required by law the length of the warranty period and the nature of the
services to be performed.Principal versus Agent
The Company determines whether it is a principal or an agent based on whether it controls the goods or
services before they are transferred to the customer. If the Company controls the goods or services before
they are transferred to the customer the Company acts as a principal and recognizes revenue at the gross
amount of consideration received or receivable. Otherwise the Company acts as an agent and recognizes
revenue at the net amount of any commission or fee to which it expects to be entitled. This net amount is
determined either as the total consideration received or receivable less the amounts payable to other
relevant parties or based on a predetermined commission amount or percentage.Consideration payable to customers
For contracts containing consideration payable to a customer the Company accounts for such
consideration as a reduction of the transaction price unless the payment is in exchange for a distinct good
or service received from the customer. The reduction in revenue is recognized at the later of when the
related revenue is recognized or when the Company pays (or promises to pay) the consideration.Customer’s unexercised rights
Advance payments received from customers for the sale of goods or services are initially recognized as
contract liabilities and subsequently recognized as revenue when the related performance obligations are
satisfied. When advance payments received by the Company are non-refundable and customers may
forfeit all or part of their contractual rights if the Company expects to be entitled to the amount relating
to those forfeited rights it shall recognize that amount as revenue in proportion to the pattern of rights
exercised by the customer. Otherwise the Company recognizes the related balance of the liability as
revenue only when the likelihood of the customer exercising its remaining rights is remote.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
29 Revenue recognition principles and measurement methods (Continued)
(1) General principles (Continued)
Contract modifications
When a construction contract with a customer is modified:
* If the contract modification adds distinct construction services and increases the contract
consideration and the additional consideration reflects the standalone selling price of the added
construction services the Company accounts for the modification as a separate contract;
* If the contract modification does not fall under the circumstances described in * above and the
construction services already transferred and those to be transferred are distinct as of the
modification date the Company treats it as a termination of the original contract and combines
remaining uncompleted portion of the original contract with the modification portion to account for
them as a new contract;
* If the contract modification does not fall under the circumstances described in * above and the
construction services already transferred and those to be transferred are not distinct as of the
modification date the Company accounts for the modification as a part of the existing contract. The
resulting impact on recognized revenue is recorded as an adjustment to revenue in the current
period.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
29 Revenue recognition principles and measurement methods (Continued)
(2) Specific methods
Revenue from product sales
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 customer obtains control over relevant commodities or
services according to the delivery condition agreed in the sales contract upon signing by the
customer after commodities are received.Revenue from technical services
If revenues are recognized within a certain period based on the technical service contract
corresponding revenues shall be recognized according to the performance schedule.Royalty income
Accounted for according to the time and method of charging as stipulated in the relevant contract or
agreement.Revenue from photovoltaic power stations
Centralized power stations: Power stations are connected to the power grid. Revenue is recognized
based on power supply documentation provided by the Company’s business departments upon
meeting the continuous and fault-free operation period stipulated by the power grid company.Distributed power stations: These stations are connected to the grid. Revenue is recognized based on
settlement documents provided by the Company’s business departments.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
30 Public grants
(1) Types of public grants
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 for public grants
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 they are 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 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
31 Deferred income tax assets and deferred income tax liabilities
Deferred income tax assets and deferred income tax liabilities are recognized and measured for
the income tax effects of taxable temporary differences or deductible temporary differences
using the balance sheet liability method based on the temporary differences between the
carrying amounts of assets and liabilities and their tax bases at the balance sheet date. Deferred
income tax assets and deferred tax liabilities are not discounted.
(1) Recognition of deferred income tax assets
Deferred income tax assets are recognized for the income tax effects of deductible temporary
differences unused tax losses and tax credits carried forward measured at the tax rates expected
to apply in the periods in which the temporary differences are expected to reverse but only to
the extent that it is probable that future taxable profits will be available against which the
deductible losses unused tax losses and tax credits can be utilized.Deferred tax assets are not recognized for the income tax effects of deductible temporary
differences arising from the initial recognition of an asset or liability in a transaction or event
that simultaneously meets the following criteria:
A. The transaction is not a business combination;
B. At the time of the transaction it affects neither accounting profit nor taxable profit (or
deductible losses).However the initial recognition exemption does not apply to single transactions that
simultaneously meet the above two conditions and where the initial recognition of assets and
liabilities gives rise to equal taxable and deductible temporary differences. For taxable and
deductible temporary differences arising from the initial recognition of assets and liabilities in
such transactions the Company recognizes the corresponding deferred tax liabilities and
deferred income tax assets respectively at the time the transaction occurs.Deferred tax assets are recognized for deductible temporary differences related to investments in
subsidiaries associates and joint ventures only when both of the following conditions are met:
* It is probable that the temporary differences will reverse in the foreseeable future; and
* It is probable that sufficient taxable profits will be available against which the deductible
temporary differences can be utilized;
At the balance sheet date the Company reassesses unrecognized deferred income tax assets and
recognizes such assets to the extent that it has become probable that future taxable profit will be
available to utilize the deductible temporary differences.At the balance sheet date the carrying amount of deferred tax assets is reviewed. Deferred
income tax assets are reduced to the extent that it is no longer probable that sufficient taxable
profits will be available to reduce the carrying amount of the deferred income tax assets. Any
such reduction is reversed when it becomes probable that sufficient taxable profits will be
available.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
31 Deferred income tax assets and deferred income tax liabilities (Continued)
(2) Recognition of deferred income tax liabilities
All taxable temporary differences of the Company are measured at the tax rates expected to
apply in the periods in which the temporary differences are expected to reverse and the related
income tax effects are recognized as deferred tax liabilities except in the following cases:
* Deferred tax liabilities are not recognized for taxable temporary differences arising from the
following transactions or events:
A. Initial recognition of goodwill;
B. The initial recognition of an asset or liability in a transaction that is not a business
combination and at the time of the transaction does not affect accounting profit or taxable profit
(or deductible losses).* Deferred tax liabilities are generally recognized for taxable temporary differences related to
investments in subsidiaries joint ventures and associates except when both of the following
conditions are met:
A. The Company can control the timing of the reversal of the temporary differences;
B. It is probable that the temporary differences will not reverse in the foreseeable future.
(3) Recognition of deferred tax assets and deferred tax liabilities for specific transactions or events
* deferred income tax assets and deferred tax liabilities related to business combinations
For taxable and deductible temporary differences arising from business combinations not under
common control the corresponding deferred income tax expense (or income) typically adjusts
the goodwill recognized in the business combination.* Items directly recognized in owners' equity
Current and deferred taxes related to transactions or events that are directly recognized in equity
are also recognized in owners' equity. Transactions or events for which the income tax effects of
temporary differences are recognized in owners' equity include: other comprehensive income
arising from changes in fair value of other debt investments; adjustments to the opening balance
of retained earnings resulting from the retrospective application of a change in accounting policy
or the retrospective restatement to correct a (material) prior period error; the initial recognition of
compound financial instruments containing both liability and equity components.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
31 Deferred income tax assets and deferred income tax liabilities (Continued)
(3) Recognition of deferred income tax assets and deferred tax liabilities for specific transactions orevents (Continued)
* Unused tax losses and tax credits carried forward
A. Unused tax losses and tax credits arising from the Company’s own operations
Deductible losses refer to losses determined in accordance with tax laws that are allowed to be
utilized against taxable profits in future periods. Deductible losses and tax credits carried forward in
accordance with tax regulations are treated as deductible temporary differences. Deferred tax assets
are recognized to the extent that it is probable that sufficient taxable profits will be available in future
periods against which the unused tax losses or tax credits can be utilized with a corresponding
reduction in current income tax expense.B. Unused tax losses of the acquiree arising from business combinations
In a business combination the acquiree's deductible temporary differences acquired from the acquiree
are not recognized as deferred tax assets at the acquisition date if they do not meet the recognition
criteria. If within 12 months after the acquisition date new or further information is obtained
indicating that facts and circumstances existed at the acquisition date and it is expected that the
economic benefits of the acquiree's deductible temporary differences at the acquisition date will be
realized the related deferred income tax assets are recognized with a corresponding reduction to
goodwill. If the carrying amount of goodwill is reduced to zero any remaining amount is recognized
in profit or loss for the current period. In all other cases deferred income tax assets recognized in
connection with a business combination are recognized in profit or loss for the current period.* Temporary differences arising from consolidation eliminations
In preparing the consolidated financial statements temporary differences arising from the elimination
of unrealized gains or losses on intra-group transactions which result in differences between the
carrying amounts of assets and liabilities in the consolidated balance sheet and their tax bases in the
respective taxable entities are recognized as deferred tax assets or deferred tax liabilities in the
consolidated balance sheet with a corresponding adjustment to income tax expense in the
consolidated income statement except for deferred taxes related to transactions or events recognized
directly in equity or arising from business combinations.* Equity-settled share-based payments
If tax laws permit tax deductions for expenses related to share-based payments during the period in
which the costs or expenses are recognized in accordance with accounting standards the Company
determines the tax base and the resulting temporary differences based on the estimated deductible
amount using information available at the end of the reporting period. Related deferred tax is
recognized if the recognition criteria are met. To the extent that the estimated deductible amount in
future periods exceeds the cost or expense recognized for share-based payments under accounting
standards the income tax effects of the excess are recognized directly in owner's equity.
(4) The basis for presenting deferred income tax assets and deferred tax liabilities on a net basis
Deferred income tax assets and liabilities of the Company are presented on a net basis after the
following conditions are met:
* The Company 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
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 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
32 Leases
(1) Identification of leases
At the commencement date of a contract the Company assesses whether the contract is or contains a
lease. A contract is or contains a lease if one party transfers the right to control the use of one or
more identified assets for a period of time in exchange for consideration. To determine whether the
contract transfers the right to control the use of an identified asset for a period of time the company
assesses whether the customer has the right to obtain substantially all of the economic benefits from
the use of the identified asset during the period and the right to direct the use of the identified asset
throughout the period.
(2) Identification of separate leases
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. The right to use an identified asset
constitutes a separate lease if both of the following conditions are met: * the lessee can benefit from
the use of the underlying asset either on its own or together with readily available resources; and *
the underlying asset is not highly dependent on or highly interrelated with other assets in the contract.
(3) Accounting treatment with the Company as lessee
At the commencement date the Company classifies leases with a lease term of 12 months or less and
without a purchase option as short-term leases; leases of individual underlying assets that are new and
have a value below RMB 40000 when the new underlying assets are classified as leases of low-value
assets. If the Company subleases or expects to sublease an underlying asset the head lease does not
qualify as a lease of a low-value asset.For all short-term leases and leases of low-value assets the Company recognizes lease payments over
the lease term on a straight-line basis or using another systematic and rational method allocating
them to the cost of the related asset or to current profit or loss.Except for the short-term leases and leases of low-value assets for which the simplified approach is
applied the Company recognizes a right-of-use asset and a lease liability at the commencement date
of the lease.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
32 Leases (Continued)
(3) Accounting treatment with the Company as lessee (Continued)
* Right-of-use assets
Right-of-use assets refer to the lessee’s right to use the leased assets over the lease term.At the commencement date of the lease right-of-use assets are initially measured at cost. The cost
comprises:
A. The initial measurement amount of lease liabilities;
B. 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);
C. Initial direct costs incurred by the lessee;
D. Costs expected to be incurred by the lessee 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. The Company recognizes and measures these
costs in accordance with the recognition and measurement criteria for provisions as detailed in
Note III. 26. The above costs incurred for the production of inventories are included in the cost of
inventories.Right-of-use assets are depreciated on a straight-line basis over their useful lives by category. For
leases in which it is reasonably certain that ownership of the underlying asset will transfer to the
lessee at the end of the lease term depreciation is recognized over the estimated remaining useful
life of the underlying asset based on the category of the right-of-use asset and its estimated net
residual value. For leases in which it is not reasonably certain that ownership of the underlying
asset will transfer to the lessee at the end of the lease term depreciation is recognized over the
shorter of the lease term and the estimated remaining useful life of the underlying asset based on
the category of the right-of-use asset.* Lease liabilities
Lease liabilities are initially measured at the present value of the lease payments that are not paid
at the commencement date of the lease. Lease payments comprise the following five components:
A. Fixed payments including in-substance fixed payments less any lease incentives receivable;
B. Variable lease payments that depend on indexation or ratio;
C. The exercise price of a purchase option if the lessee is reasonably certain to exercise that
option;
D. Amounts expected to be payable under a termination option if the lease term reflects that the
lessee is reasonably certain to exercise that option;
E. The estimated amount payable is based on the secured residual value provided by the lessee.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
32 Leases (Continued)
(3) Accounting treatment with the Company as lessee (Continued)
The present value of lease payments is discounted using the interest rate implicit in the lease. If the
interest rate implicit in the lease cannot be readily determined the Company uses its incremental
borrowing rate as the discount rate. The difference between the lease payments and their present
value is recognized as unrecognized finance charges. Interest expense is recognized in current
profits and losses over the lease term using the discount rate used to measure the present value of
lease payments. Variable lease payments not included in the measurement of lease liabilities are
recognized in current profits and losses. when incurred.After the commencement date if there are changes in in-substance fixed payments expected
amounts payable under residual value guarantees indices or rates used to determine lease
payments or changes in the assessment or exercise of purchase extension or termination options
the Company remeasures the lease liability based on the present value of the revised lease
payments and adjusts the carrying amount of the right-of-use asset accordingly.
(4) Accounting treatment with the Company as lessor
At the commencement date of the lease leases that transfer substantially all the risks and rewards
incidental to ownership of the leased asset are classified as finance leases by the Company with
all other leases classified as operating leases.* Operating leases
For each period of the lease term the Company adopts the straight-line method to recognize the
lease receipts of the operating lease as rental income; the Company capitalizes the initial direct
expenses amortizes them over the lease term on the same basis as that for the recognition of the
rental income and includes them in current profits and losses. by stage. Variable lease payments
relating to operating leases that are not included in lease receivables are recognized in current
profits and losses when received.* Finance lease
At the commencement date of the lease the Company recognizes finance lease receivables at the
net investment in the lease which is the sum of the present value of lease payments not yet
received at the commencement date and any unguaranteed residual value discounted using the
interest rate implicit in the lease and derecognizes the leased asset. Over the lease term the
Company calculates and recognizes interest income based on the interest rate implicit in the lease.Variable lease payments not included in the measurement of the net investment in the lease are
recognized in current profits and losses when received.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
32 Leases (Continued)
(5) Accounting treatment for lease modifications
* Lease modification treated as a separate lease
If a lease is modified and both of the following conditions are met the Company accounts for the
modification as a separate lease: A. The modification increases the scope of the lease by adding
the right to use one or more additional assets; B. The increase in consideration is commensurate
with the stand-alone price for the increase in scope adjusted for the terms of the contract.* Lease modification not treated as a separate lease
A. The Company acting as a lessee
On the effective date of the modification the Company determines the lease term of the modified
lease and remeasures the lease liability by discounting the revised lease payments using a revised
discount rate. The present value of the modified lease payments is discounted using the interest
rate implicit in the lease for the remaining lease term. If the interest rate implicit in the lease for
the remaining term cannot be determined the Company uses its incremental borrowing rate at the
effective date of the modification.The effect of the above lease liability adjustment is accounted for as follows:
If the lease modification decreases the scope of the lease or shortens the lease term the carrying
amount of the right-of-use asset is reduced and any gain or loss arising from partial or full
termination of the lease is recognized in profit or loss.For other lease modifications the carrying amount of the right-of-use asset is adjusted
accordingly.B. The Company acting as a lessor
For modifications of operating leases the Company accounts for the lease as a new lease from the
effective date of the modification. Any lease payments received or receivable related to the
original lease are treated as payments under the new lease.For modifications of finance leases not treated as separate leases the Company accounts for the
modified lease as follows: If the lease would have been classified as an operating lease had the
modification been in effect at the lease commencement date the Company treats it as a new lease
from the effective date of the modification and uses the net investment in the lease immediately
before the modification as the carrying amount of the underlying asset. If the lease would have
been classified as a finance lease had the modification been in effect at the lease commencement
date the Company accounts for it in accordance with the accounting policies for lease
modifications or renegotiated contracts.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
32 Leases (Continued)
(6) Sale and leaseback
The Company assesses whether the transfer of an asset in a sale and leaseback transaction
qualifies as a sale in accordance with Note III. 29.* The Company as seller (lessee)
If the transfer of the asset in a sale and leaseback transaction does not qualify as a sale the
Company will continue to recognize the transferred asset and recognizes a financial liability equal
to the transfer proceeds. The financial liability is accounted for in accordance with Note III. 11. If
the asset transfer 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.* The Company as buyer (lessor)
If the transfer of the asset in a sale and leaseback transaction does not qualify as a sale the
Company will not recognize the transferred asset but recognizes a financial asset equal to the
transfer proceeds. The financial asset is accounted for in accordance with Note III. 11. If the
transfer of the asset qualifies as a sale the company accounts for the purchase of the asset in
accordance with other applicable accounting standards and accounts for the lease of the asset.
33 Related parties
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 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
34 Hedge Accounting
(1) Classification of hedges
The Company classifies hedges into fair value hedges cash flow hedges and hedges of net
investments in foreign operations.* A fair value hedge is a hedge of the exposure to changes in the fair value of a recognized asset
or liability an unrecognized firm commitment or an identified component of such items. The
change in fair value arises is attributable to a specific risk and will affect the Company’s profit or
loss or other comprehensive income.* A cash flow hedge is a hedge of the exposure to variability in cash flows. The variability in
cash flows is attributable to a specific risk associated with a recognized asset or liability a highly
probable forecast transaction or a component of such items and will affect the Company’s profit
or loss.* A hedge of a net investment in a foreign operation is a hedge of the foreign exchange exposure
arising from a net investment in a foreign operation. The hedged risk in a hedge of a net
investment in a foreign operation is the foreign currency translation difference between the
functional currency of the foreign operation and that of the parent company.
(2) Hedging instruments and hedged items
Hedging instruments are financial instruments designated by the Company for hedging whose
changes in fair value or cash flows are expected to offset changes in the fair value or cash flows of
the hedged items including:
* Derivatives measured at fair value through profit or loss except written options. Written
options can only be designated as hedging instruments when hedging purchased options including
purchased options embedded in a hybrid contract. A derivative embedded in a hybrid contract that
has not been separated cannot be designated as a separate hedging instrument.* Non-derivative financial assets or financial liabilities measured at fair value through profit or
loss except for liabilities designated at fair value through profit or loss whose fair value changes
due to changes in the Company’s own credit risk are recognized in other comprehensive income.Own equity instruments are neither financial assets nor financial liabilities and cannot be
designated as hedging instruments.Hedged items are items that expose the Company to changes in fair value or cash flows which are
designated as being hedged and can be reliably measured. The Company designates the following
individual items groups of items or portions thereof as hedged items:
* Recognized assets or liabilities.* Unrecognized firm commitments. A firm commitment is a legally binding agreement to
exchange a specified quantity of resources at a predetermined price on a future date or over a
future period.* Highly probable forecast transactions. A forecast transaction is a transaction that has not yet
been committed to but is expected to occur.* Net investments in foreign operations.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
34 Hedge Accounting (Continued)
(2) Hedging instruments and hedged items (Continued)
A component of the above items refers to parts smaller than the overall changes in fair value or
cash flows of the item. The Company designates the following components or combinations
thereof as hedged items:
* A component of the overall changes in fair value or cash flows of an item that is only
attributable to one or more specific risks (risk components). Based on an assessment in a specific
market environment such risk components must be separately identifiable and reliably
measurable. Risk components also include components of the hedged item’s fair value or cash
flow changes that occur only above or below a specified price or other variable.* One or more selected contractual cash flows.* A component of the nominal amount of an item refers to specified parts of the overall amount
or quantity of the item which may be a certain proportion of the overall item (a proportionate
component) or a specified layer of the overall item (a layer component). If a layer component
includes a prepayment option and the fair value of the prepayment option is affected by changes in
the hedged risk the layer must not be designated as a hedged item in a fair value hedge except
where the effect of the prepayment option is already included in the measurement of the hedged
item’s fair value.
(3) Hedge relationship assessment
At the inception of a hedge relationship the Company formally designates the hedge relationship
and prepares formal written documentation of the hedge relationship risk management objectives
how the Company will assess whether the hedging relationship meets the hedge effectiveness
requirements. The documentation specifies the hedging instrument the hedged item the nature of
the hedged risk and the Company’s method for assessing hedge effectiveness. Hedge
effectiveness refers to the extent to which changes in the fair value or cash flows of the hedging
instrument offset changes in the fair value or cash flows of the hedged item arising from the
hedged risk. Such hedges are assessed on an ongoing basis to determine whether they continue to
meet the hedge effectiveness requirements at the initial designation date and in subsequent
periods.If the hedging instrument expires or is sold terminated or exercised (unless the rollover or
replacement of the hedging instrument is part of the documented hedging strategy) or if changes
in risk management objectives result in the hedge relationship no longer meeting the risk
management objectives or if the economic relationship between the hedged item and the hedging
instrument ceases to exist or if credit risk becomes the dominant factor in changes in the value of
the economic relationship between the hedged item and the hedging instrument or if the hedge no
longer meets other conditions for hedge accounting the Company discontinues the use of hedge
accounting.If a hedge relationship no longer meets hedge effectiveness requirements due to the hedge ratio
but the risk management objectives for which the hedge was designated remain unchanged the
Company rebalances the hedge relationship.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
34 Hedge Accounting (Continued)
(4) Recognition and measurement
When the conditions for applying hedge accounting are met the following treatments are applied:
* Fair value hedge
Gain or loss on the hedging instrument shall be recognized in current profits and losses. If the hedging
instrument hedges a non-trading equity instrument (or a component thereof) that the Company has
designated 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. 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 non-trading equity instrument (or a component thereof) designated at fair value through other
comprehensive income gains or losses arising from the hedged risk shall be recognized in other
comprehensive income. Since the carrying amount of the hedged item is already measured at fair value no
adjustment is required.For a fair value hedge of a financial instrument (or a component thereof) measured at amortized cost
adjustments to the carrying amount of the hedged item shall be amortized using the effective interest rate
recalculated at the commencement date of amortization 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.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 gain or loss recognized in current profits
and losses. When a defined commitment is made to acquire an asset or assume a liability the initial carrying
amount of the asset or the liability should be adjusted to include the cumulative change in the fair value of
the hedged item that has been recognized.* Cash flow hedges
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 as a cash flow hedge reserve while the portion 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. The amount of cash flow hedging reserves shall be
determined based on the lower of the absolute amount of the following two items: * The cumulative gain or
loss on the hedging instrument since the commencement of the hedge. * The cumulative change in the
present value of expected future cash flows of the hedged item since the commencement of the hedge.If a hedged forecast transaction subsequently results in the recognition of a non-financial asset or non-
financial liability or a hedged forecast transaction for a non-financial asset or non-financial liability
becomes a defined commitment for which fair value hedge accounting is applied the amount previously
recognized in the cash flow hedge reserve in other comprehensive income shall be reclassified and included
in the initial cost of the asset or liability. For cash flow hedges other than those covered above the amount in
the cash flow hedge reserve previously recognized in other comprehensive income shall be reclassified to
profit or loss in the same period or in the period in which the hedged expected future cash flows affect profit
or loss.* Hedges of a net investment in a foreign operation
For hedges of a net investment in a foreign operation 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.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. Upon disposal of all or part of the foreign operation the gain or
loss on the hedging instrument recognized in other comprehensive income shall be reclassified and
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
recognized in current profits and losses.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
35 Significant accounting judgments and accounting estimates
The Company continuously evaluates the significant accounting estimates and key assumptions
used based on historical experience and other factors including reasonable expectations of future
events. The significant accounting estimates and key assumptions that could result in a material
adjustment to the carrying amounts of assets and liabilities in the next financial year are as
follows:
Measurement of expected credit losses on accounts receivable
The Company measures expected credit losses on accounts receivable based on the exposure at
default and the expected loss rate the latter of which is determined based on the probability of
default and loss given default. In determining the expected loss rate the Company uses internal
historical credit loss experience and other data adjusted for current conditions and forward-
looking information. When considering forward-looking information the Company takes into
account indicators such as the risk of economic downturn changes in external market conditions
technological environment and customer circumstances. The Company regularly monitors and
reviews the assumptions related to the calculation of expected credit losses.Provision for depreciation of inventories
Provision for depreciation of inventories is recognized based on the estimated net realizable value
of inventories. The assessment of this provision involves management judgment and estimation. If
actual circumstances or future expectations differ from the original estimates the resulting
difference will affect the carrying amount of the inventories and the reversal/write-off of the
provision in the period in which the estimate is revised.Development expenditures
When determining the amount to be capitalized management must make assumptions regarding
the generation of future cash flows to be generated by the asset the discount rate adopted and the
expected useful life.Goodwill impairment
The Company assesses goodwill for impairment at least annually. This requires an estimation of
the value in use of the cash-generating units to which goodwill has been allocated. In estimating
the value in use the Company estimates the future cash flows derived from the cash-generating
units and discounts them using an appropriate discount rate to calculate the present value of those
cash flows.Deferred income tax assets
Deferred income tax assets are recognized for all unused tax losses to the extent that it is probable
that sufficient taxable profits will be available to utilize those losses. This requires significant
management judgment to estimate the timing and amount of future taxable profits combined with
tax planning strategies to determine the amount of deferred tax assets to be recognized.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
36 Changes to major accounting policies and estimates
(1) Change in accounting policies
(a) Impact of Adopting Interpretation No. 19 on Accounting Standards for Business Enterprises
On December 5 2025 the Ministry of Finance (MOF) issued Interpretation No. 19 on Accounting
Standards for Business Enterprises (Caikuai [2025] No. 32 "Interpretation No. 19") which took
effect on January 1 2026. The Company adopted Interpretation No. 19 effective January 1 2026.The adoption of this interpretation had no material impact on the Company's financial statements
for the Reporting Period.(b) Impact of Adopting Interpretation No. 20 on Accounting Standards for Business Enterprises
On June 4 2026 the MOF issued Interpretation No. 20 on Accounting Standards for Business
Enterprises (Caikuai [2026] No. 7 "Interpretation No. 20") which took effect upon issuance. For
new transactions or events specified in this Interpretation occurring between January 1 2026 and
the effective date of Interpretation No. 20 enterprises shall make adjustments in accordance with
this Interpretation. The Company adopted Interpretation No. 20 on June 4 2026 (the "Effective
Date") and made retrospective adjustments for new relevant transactions or events occurring
between January 1 2026 and the Effective Date. The adoption of this interpretation had no
material impact on the Company's financial statements for the Reporting Period.
(2) Changes to accounting estimates
The Company had no significant change in accounting estimates during the Reporting Period.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
IV Taxes
1 Value-added tax
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.
2 Urban maintenance and construction tax
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.
3 Education surcharges
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.
4 Property tax
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.
5 Corporate income tax
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 requiring
state 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
2023 from January 1 2023 to December 31 2027 the annual taxable income of small and low-
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 2026
(RMB’000)
IV Taxes (Continued)
5 Corporate income tax (Continued)
Subsidiaries entitled to tax preferences:
Company name Preferentialtax rate Reason
TCL China Star Optoelectronics Technology Co.Ltd. 15.00% High-tech enterprise
Wuhan China Star Optoelectronics Technology
Co. Ltd. 15.00% High-tech enterprise
Shenzhen China Star Optoelectronics Bandaoti
Display Technology Co. Ltd. 15.00% High-tech enterprise
Wuhan China Star Optoelectronics Bandaoti
Display Technology Co. Ltd. 15.00% High-tech enterprise
Guangzhou China Star Optoelectronics Bandaoti
Display Technology Co. Ltd. 15.00% High-tech enterprise
Suzhou China Star Optoelectronics Technology
Co. Ltd. 15.00% High-tech enterprise
Guangzhou China Star Optoelectronics
Technology Co. Ltd. 15.00% High-tech enterprise
China Display Optoelectronics Technology
(Huizhou) Co. Ltd. 15.00% High-tech enterprise
Shenzhen TCL High-Tech Development Co. Ltd. 15.00% High-tech enterprise
TCL Financial Technology (Shenzhen) Co. Ltd. 15.00% High-tech enterprise
Tianjin Huanou New Energy Technology Co. Ltd 15.00% High-tech enterprise
Tianjin Huanzhi New Energy Technology Co. Ltd. 15.00% High-tech enterprise
Huansheng New Energy (Jiangsu) Co. Ltd. 15.00% High-tech enterprise
Tianjin Zhonghuan Advanced
Material&Technology Co. Ltd. 15.00% High-tech enterprise
Zhonghuan Advanced Bandaoti Technology Co.Ltd. 15.00% High-tech enterprise
Zhonghuan Advanced (Xuzhou) Bandaoti Material
Co. Ltd. 15.00% High-tech enterprise
Tianjin Huanbo Science and Technology Co. Ltd. 15.00% High-tech enterprise
Techigh Circuit Technology (Huizhou) Co. Ltd. 15.00% High-tech enterprise
Tianjin Printronics Circuit Corporation 15.00% High-tech enterprise
Inner Mongolia Zhonghuan Crystal Materials Co. 15.00% High-tech enterprises and the Western ChinaLtd. Development Initiative
Inner Mongolia Zhonghuan Solar Material Co. High-tech enterprises and the Western China
Ltd. 15.00% Development Initiative
Inner Mongolia Zhonghuan Advanced Bandaoti
Material Co. Ltd. 15.00%
High-tech enterprises and the Western China
Development Initiative
Suzhou China Star Environmental Protection 15.00% Eligible third-party enterprises engaged in pollutionTechnology Co. Ltd. prevention and control
Dangxiong Youhao New Energy Development
Co. Ltd. 15.00% Western China Development Initiative
Shaanxi Huanshuo Green New Energy Co. Ltd. 15.00% Western China Development Initiative
Western China Development Initiative and the
Ningxia Huanou New Energy Technology Co. 9.0% "three year exemption and three year 50% reduction"Ltd. preferential treatment on the local portion of enterprise
income tax
Western China Development Initiative the "three year
Ningxia Zhonghuan Solar Material Co. Ltd. 9.0% exemption and three year 50% reduction" preferential
treatment on the local portion of enterprise income tax
and high-tech enterprise
Shaanxi Runhuan Tianyu Technology Co. Ltd. 7.5% The "three year exemption and three year 50%
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
reduction" and the Western China Development Initiative
Shenzhen Zhixian Shijie Software Technology Co. Tax-exempt The "two-year exemption and three-year 50% reduction"Ltd. policy for software enterprises
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
IV Taxes (Continued)
5 Corporate income tax (Continued)
Company name Preferentialtax rate Reason
Tianjin Huan'ou Bandaoti Material&Technology 15.00% High-tech enterpriseCo. Ltd.Sunite Left Banner Huanxin New Energy Co. Ltd. 15.00% Western China Development Initiative
Tuquan County Guanghuan New Energy Co. Ltd. 15.00% Western China Development Initiative
The "three-year exemption and three-year 50%
Ningxia Hongyuan New Energy Co. Ltd. Tax-exempt reduction" policy and the Western China Development
Initiative
Zhangjiakou Shengming New Energy Co. Ltd. Tax-exempt Three year exemption and three year 50% reduction
Shaanxi Huanbo New Energy Power Engineering Tax-exempt Three year exemption and three year 50% reductionConstruction Co. Ltd.Hohhot Dishengsheng New Energy Co. Ltd. Tax-exempt Three year exemption and three year 50% reduction
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements
1 Monetary assets
June 30 2026 December 31 2025
Cash on hand 553 418
Bank deposits 21082668 26293409
Deposits with the central bank 301918 367683
Other monetary assets 1764482 3798550
23149621 30460060
Note Monetary assets with restricted use rights
June 30 2026 December 31 2025
TCL Tech Finance's statutory reserve deposits with
the central bank 296012 361827
Other restricted monetary assets 629108 3467238
925120 3829065
As at June 30 2026 the Company’s bank deposits of RMB 296012000 (December 31 2025: RMB
361827000) were statutory deposit reserves deposited with the Central Bank by TCL Technology
Group Finance Co. Ltd. a subsidiary of the Company.As at June 30 2026 the Company’s monetary assets offshore amounted to RMB 3044649000
(December 31 2025: RMB 2710168000) 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 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
2 Held-for-trading financial assets
June 30 2026 December 31 2025
Financial assets classified as those measured at fair value
through profit or loss 18350671 14473193
Including: Debt instrument investments 18341096 14454252
Equity instrument investments 9575 18941
18350671 14473193
3 Derivative financial assets
June 30 2026 December 31 2025
Foreign exchange forwards and foreign exchange swaps 25350 78957
4 Notes receivable
(1) Notes receivable by category
June 30 2026 December 31 2025
Bank acceptance 634287 377126
Trade acceptance 50 103099
634337 480225
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
4 Notes receivable (Continued)
(2) Presentation of bad-debt allowance for notes receivable by category
June 30 2026 December 31 2025
Bad-debt Bad-debt
Gross amount Allowance Carrying Gross amount Allowance Carrying
Amount Ratio Amount Accrual amountRatio Amount Ratio Amount
Accrual amount
Ratio
Notes receivable for
which bad-debt allowance
were established on the 649173 100% 14836 2.29% 634337 480225 100% - - 480225
grouping basis
Including: low-risk
portfolio 649173 100% 14836 2.29% 634337 480225 100% - - 480225
649173 100% 14836 2.29% 634337 480225 100% - - 480225
(3) As at June 30 2026 notes receivable in pledge were RMB 100000.
5 Accounts receivable
June 30 2026 December 31 2025
Accounts receivable 20351042 22579657
Less: Bad-debt allowance 368956 426654
19982086 22153003
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
5 Accounts receivable (Continued)
(1) Accounts receivable classified by loss allowance provision method as at June 30 2026 are asfollows:
June 30 2026 December 31 2025
Bad-debt Bad-debt
Category Gross amount Allowance Carrying Gross amount Allowance Carrying
Amount Ratio Amount Accrual amountRatio Amount Ratio Amount
Accrual amount
Ratio
Allowances
for bad debts
accrued on an 163916 0.81% 151145 92.21% 12771 217809 0.96% 189792 87.14% 28017
individual
basis
Provision for
impairment
based on
portfolio of 20187126 99.19% 217811 1.08% 19969315 22361848 99.04% 236862 1.06% 22124986
credit risk
characteristic
s
20351042 100% 368956 1.81% 19982086 22579657 100% 426654 1.89% 22153003
(2) Aging analysis of accounts receivable is as follows:
June 30 2026 December 31 2025
Amount Ratio Amount Ratio
Within 1 year 18600004 91.40% 20832958 92.26%
1 to 2 years 426018 2.09% 376690 1.67%
2 to 3 years 184691 0.91% 552656 2.45%
Over 3 years 1140329 5.60% 817353 3.62%
20351042 100% 22579657 100%
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
5 Accounts receivable (Continued)
(3) Bad-debt allowances for accounts receivable are analyzed as follows:
June 30 2026
Beginning amount 426654
New subsidiary 25187
Accrued in the period 63854
Reversal of current period (70482)
Write-off of current period (75403)
Others (854)
Ending amount 368956
(4) As at June 30 2026 the accounts receivable and contract assets of the top five balances are as
follows:
June 30 2026
Total amount of the accounts receivable and contract assets of the
top five balances 8728650
As a percentage of the total amount of accounts receivable and
contract assets 42.89%
(5) Accounts receivable derecognized due to transfer of financial assets
Methods of transfer of Amount derecognized for Gain or loss
Item
financial assets the period on derecognition
Accounts Factoring without
receivable recourse 4043168 (2142)
6. Receivables financing
June 30 2026 December 31 2025
Notes receivable financing 182602 383247
Receivable financing 345884 242542
528486 625789
As at June 30 2026 the receivables financing that had been endorsed or discounted remained outstanding
and was derecognized amounted to RMB 6398449000.As at June 30 2026 the Company considers that the receivables financing did not have material credit risk
and would not result in material losses due to default.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
7 Prepayments
(1) Prepayments are analyzed as follows:
June 30 2026 December 31 2025
Within 1 year 2414040 1363244
1-2 years 23711 415294
2-3 years 394638 98269
Over 3 years 125574 32637
2957963 1909444
(2) As at June 30 2026 the prepayments of the top five balances are as follows:
June 30 2026
Total amount owed by the top five 1452415
As % of total prepayments 49.10%
8 Other receivables
June 30 2026 December 31 2025
Dividends receivable 18464 424441
Other receivables 2967519 3076182
2985983 3500623
(1) Dividends receivable
June 30 2026 December 31 2025
Xinjiang Goens Energy Technology
Co. Ltd. - 444597
Others 18464 -
Less: Bad-debt allowance - 20156
18464 424441
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
8 Other receivables (Continued)
(1) Dividends receivable (Continued)
(a) Presentation of bad-debt allowance for dividends receivable by category
June 30 2026 December 31 2025
Bad-debt Bad-debt
Gross amount Allowance Carrying Gross amount Allowance Carrying
Category Amount Ratio Amount Accrual amountRatio Amount Ratio Amount
Accrual amount
Ratio
Allowances for
bad debts
accrued on an 18464 100% - - 18464 444597 100% 20156 4.53% 424441
individual basis
18464 100% - - 18464 444597 100% 20156 4.53% 424441
(2) Other receivables
June 30 2026 December 31 2025
Other receivables 3370569 3513209
Less: Bad-debt allowance 403050 437027
2967519 3076182
(a) Nature of other receivables is analyzed as follows:
June 30 2026 December 31 2025
Security and deposits 786302 584936
Subsidy receivables 511955 1355862
Equity transfer receivables 235950 251016
Others 1433312 884368
2967519 3076182
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
8 Other receivables (Continued)
(2) Other receivables (Continued)
(b) Presentation of bad-debt allowance for other receivables by category
June 30 2026 December 31 2025
Bad-debt Bad-debt
Category Gross amount Allowance Carrying Gross amount Allowance Carrying
Amount Ratio Amount Accrual amountRatio Amount Ratio Amount
Accrual amount
Ratio
Allowances
for bad debts
accrued on 470327 13.95% 375590 79.86% 94737 583773 16.62% 413344 70.81% 170429
an individual
basis
Allowances
for bad debts
accrued on a 2900242 86.05% 27460 0.95% 2872782 2929436 83.38% 23683 0.81% 2905753
portfolio
basis
3370569 100% 403050 11.96% 2967519 3513209 100% 437027 12.44% 3076182
(c) Allowance for doubtful other receivables is analyzed as follows:
Lifetime ECL Lifetime ECL
12-month ECL (credit not (credit Total
impaired) impaired)
December 31 2025 29717 - 407310 437027
Current accrual 9602 - - 9602
Addition of new
subsidiaries 1117 - 7625 8742
Reversal of current
period (6454) - - (6454)
Write-off of current
period (76) - (12872) (12948)
Others (24) - (32895) (32919)
June 30 2026 33882 - 369168 403050
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
8 Other receivables (Continued)
(d) The aging of other receivables is analyzed as follows:
June 30 2026 December 31 2025
Carrying amount Ratio Carrying amount Ratio
Within 1 year 1909993 56.67% 1638345 46.64%
1 to 2 years 323965 9.61% 816611 23.24%
2 to 3 years 367107 10.89% 379232 10.79%
Over 3 years 769504 22.83% 679021 19.33%
3370569 100% 3513209 100%
(e) As at June 30 2026 the other receivables of the top five balances are as follows:
June 30 2026
Total amount owed by the top five 1423823
As % of total other receivables 42.24%
(f) As at June 30 2026 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 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
9 Inventories
(1) Inventories are classified as follows:
June 30 2026 December 31 2025
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 8793756 788079 8005677 5752757 837917 4914840
Work in
progress 3978909 611697 3367212 3473243 705587 2767656
Finished
Goods 12511342 1034271 11477071 12224275 1660743 10563532
Turnover
materials 129460 1954 127506 126337 1657 124680
25413467 2436001 22977466 21576612 3205904 18370708
As at June 30 2026 the Company had no inventory for liabilities guarantee.
(2) Provision for depreciation of inventories/provision for impairment of contract performance costs:
December 31 2025 Accrued in
Reversal and
the period write-off in the
Other
period changes
June 30 2026
Raw
materials 837917 500764 (584234) 33632 788079
Work in
progress 705587 825052 (835876) (83066) 611697
Inventory of
goods 1660743 1194064 (1456470) (364066) 1034271
Turnover
materials 1657 1097 (800) - 1954
3205904 2520977 (2877380) (413500) 2436001
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
10 Contract assets
(1) Contract assets are classified as follows:
June 30 2026 December 31 2025
Gross Impairment Carrying Gross Impairment Carrying
amount allowance amount amount allowance amount
Contract
assets 422125 41181 380944 422183 36607 385576
(2) Valuation allowances for contract assets are analyzed as follows:
Reversal or
December 31 2025 Accrued inthe period write-off in
Other increases June 30 2026
the period and decreases
Contract
assets 36607 4574 - - 41181
11 Non-current assets due within one year
June 30 2026 December 31 2025
Other non-current assets due within one year 1530000 1557992
Debt investments due within one year 6827 6953
1536827 1564945
12 Other current assets
June 30 2026 December 31 2025
VAT to be deducted to be certified etc. 7756622 8126701
Others 395353 284923
8151975 8411624
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
13 Bond investments
June 30 2026 December 31 2025
Treasury bonds and corporate bonds 574650 578159
14 Long-term receivables
June 30 2026 December 31 2025
Gross Bad-debt Carrying Gross Bad-debt Carrying
amount Allowance amount amount Allowance amount
Others 94730 - 94730 120628 - 120628
94730 - 94730 120628 - 120628
15 Long-term equity investments
June 30 2026 December 31 2025
Gross Impairment Carrying Gross Impairment Carrying
amount allowance amount amount allowance amount
Associate 23858537 19968 23838569 22966147 20022 22946125
Joint venture 435644 49503 386141 452571 49503 403068
24294181 69471 24224710 23418718 69525 23349193
As at June 30 2026 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.For January - June 2026 the movement in provision for impairment of long-term equity investments of the
Group arose from the effect of foreign currency translation.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
15 Long-term equity investments (Continued)
(1) Changes in long-term equity investments for the year
Increase/d Net profits Cash Balance of
December 31 ecrease in or losses Other dividends or Provisio impairment
Investees 2025 (carrying investment adjusted comprehens Other equity n for
June 30 2026
under the ive changes profit impairm Others (carrying
provision as
amount) in current distribution amount) of June 30
period equity incomemethod declared
ent 2026
Joint venture 403068 345 (13736) - 493 (4029) - - 386141 49503
Associate
Inner Mongolia
Xinhuan Silicon
Energy Technology 1432951 - (39374) - - - - - 1393577 -
Co. Ltd.Aijiexu New
Electronic Display
Glass (Shenzhen) Co. 843389 - 33466 - - - - - 876855 -
Ltd.Others 20669785 (60433) 1391986 28380 (11471) (448979) - (1131) 21568137 19968
Total of associates 22946125 (60433) 1386078 28380 (11471) (448979) - (1131) 23838569 19968
Total 23349193 (60088) 1372342 28380 (10978) (453008) - (1131) 24224710 69471
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
16 Investments in other equity instruments
June 30 2026 December 31 2025
Stocks 13754 18427
Equity of unlisted companies 162538 338029
176292 356456
Recognize Amount of other
Reasons designated as
Item name d dividend Cumulative Cumulative comprehensive
measured at fair value and
revenue gains losses income transferred
whose changes are
to retained earnings included in othercomprehensive income
Stocks (44) 3517 (191035) -
Being held long-term for
strategic purposes
Equity of unlisted - 156787 (173397) - Being held long-term forcompanies strategic purposes
Total (44) 160304 (364432) -
17 Other non-current financial assets
June 30 2026 December 31 2025
Equity investments 4561038 3172659
4561038 3172659
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
18 Investment properties
Houses and buildings Land use rights Total
Gross amount:
December 31 2025 502972 108859 611831
Increase during the year 35196 - 35196
Decrease during the year - (281) (281)
June 30 2026 538168 108578 646746
Accumulated depreciation
and amortization:
December 31 2025 174313 34737 209050
Current accrual 14067 1117 15184
Other increases 354 - 354
June 30 2026 188734 35854 224588
Investment properties
net:
June 30 2026 349434 72724 422158
December 31 2025 328659 74122 402781
Impairment allowance:
Beginning amount 908 - 908
Ending amount 908 - 908
Investment properties
net:
June 30 2026 348526 72724 421250
December 31 2025 327751 74122 401873
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
19 Fixed assets
Houses and Machinery Office and
buildings equipment electronic
Transportation Power
equipment stations Others Totalequipment
Gross amount:
December 31 2025 68377362 280380262 4247557 373147 2225213 1434729 357038270
Increase during the
year
Acquisition and
other 1413 824461 59744 2470 - 4586 892674
Reclassified from
construction in 146530 3647641 50830 6018 - 5718 3856737
progress
New subsidiary 2565938 2275645 9967 1883 - 540032 5393465
Other increases 51582 1168229 92954 9 4587 41907 1359268
Decrease during the
year
Reduced
subsidiary (205811) (532929) (246921) - - - (985661)
Disposals
write offs and (392603) (2858074) (31078) (10160) - - (3291915)
others
June 30 2026 70544411 284905235 4183053 373367 2229800 2026972 364262838
Accumulated
depreciation:
December 31 2025 17428933 167554409 3072394 272418 716434 419902 189464490
Increase during the
year
Accrual 1286498 12205188 165584 20181 27510 48195 13753156
New subsidiary 241263 995506 8136 958 - 198521 1444384
Other increases 20578 628689 3768 6 - - 653041
Decrease during the
year
Reduced
subsidiary (11249) (26245) (192057) - - - (229551)
Disposals
write offs and (20640) (754685) (28202) (5632) - (166) (809325)
others
June 30 2026 18945383 180602862 3029623 287931 743944 666452 204276195
Fixed assets net:
June 30 2026 51599028 104302373 1153430 85436 1485856 1360520 159986643
December 31 2025 50948429 112825853 1175163 100729 1508779 1014827 167573780
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
19 Fixed assets (Continued)
Houses and Machinery Office andelectronic Transportation Powerbuildings equipment equipment equipment stations
Others Total
Impairment
allowance:
December 31 2025 969118 1442967 58946 128 99465 - 2570624
Current accrual 244947 - - - - - 244947
Other increases - 100861 77 - - 36604 137542
Reduced subsidiary (155524) (506297) (29070) - - - (690891)
June 30 2026 1058541 1037531 29953 128 99465 36604 2262222
Fixed assets
carrying amount:
June 30 2026 50540487 103264842 1123477 85308 1386391 1323916 157724421
December 31 2025 49979311 111382886 1116217 100601 1409314 1014827 165003156
Please refer to Note V.28 for information on fixed assets pledge.Fixed assets with pending ownership certificates at the end of the current period:
Carrying amount Reasons for pending ownershipcertificates
Houses and buildings
(Note) 9740968 In process
N As at June 30 2026 the fixed assets for which the certificates of title have not been completed are mainly the houses and
ot buildings of Huaxing Production Bases t3 and t5 as well as the houses and buildings of Inner Mongolia Zhonghuan
e Advanced Bandaoti Material Co. Ltd. Inner Mongolia Zhonghuan Crystal Materials Co. Ltd. and Tianjin Zhonghuan
Advanced Material&Technology Co. Ltd.
20 Construction in progress
(1) Schedule of construction in progress
June 30 2026 December 31 2025
Construction in progress 19275805 16560203
Less: Impairment allowance 441601 383355
18834204 16176848
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
20 Construction in progress (Continued)
(2) Changes to construction in progress
Construction in Accumulated Cumulative Including: Interest
Project name Budget December 31 Increase in current progress Other
investment in the
2025 period transferred to fixed movements June 30 2026
Project
project progress capitalized
capitalized capitalization
interest interest in rate for current
Funding source
assets as % of budget current period period
t9 production line of LCD
panel 31500000 378056 53050 (65266) - 365840 96%
Under Self-funded and raised
construction 395291 - - funds
Phase I project of generation
8.6 (or G8.6) printed OLED 29500000 654827 1509638 - - 2164465 10% Under
production line at TCL CSOT construction
- - - Self-funded
Solar power station projects 6948950 2550740 296584 (24071) - 2823253 65% Under 288129 76962 2.55%-3.60% Self-funded and raisedconstruction funds
Large-diameter silicon wafers
for integrated circuits 5410520 1379616 31284 (324928) (97) 1085875 99%
Under
construction 46234 496 2.8%
Self-funded and raised
funds
Expansion project of silicon
wafers for integrated circuits 5800260 553912 524919 - (19880) 1058951 19%
Under 10460 2490 2.8% Self-funded and raisedconstruction funds
Silicon wafers for integrated Under Self-funded and raised
circuits 11014000 2117029 401685 (207674) (4560) 2306480 90% construction 441154 1445 2.6% funds
Highly-efficient imbricate 2980365 324049 390811 (89816) (6125) 618919 75% Under 10413 - - Self-funded and raisedmodule G12 project construction funds
Production line of 8-12-inch
silicon wafers for integrated 5862432 616091 47601 (352756) (10120) 300816 93% Underconstruction 11116 401 2.8%
Self-funded and raised
circuits funds
Others Not applicable 7602528 2380364 (2792226) 918939 8109605 Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
16176848 5635936 (3856737) 878157 18834204
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
21 Right-of-use assets
Houses and Transportation Machinery
Land use rights Total
buildings equipment equipment
Gross amount:
December 31 2025 6281272 932 878497 432723 7593424
Increase
New subsidiary 13068 - 15357 - 28425
Leased in 109001 178 - 52729 161908
Other increases 8619 - - 24242 32861
Decreases
Lease contract expiration (11570) - - - (11570)
Other decreases (2424817) (53) (19823) - (2444693)
June 30 2026 3975573 1057 874031 509694 5360355
Accumulated depreciation:
December 31 2025 851072 705 373402 76218 1301397
Increase
Current accrual 131455 136 55645 30106 217342
New subsidiary 1958 - 4618 - 6576
Decreases
Lease contract expiration (11570) - - - (11570)
Other decreases (451166) (32) - - (451198)
June 30 2026 521749 809 433665 106324 1062547
Right-of-use assets carrying
amount:
June 30 2026 3453824 248 440366 403370 4297808
December 31 2025 5430200 227 505095 356505 6292027
Impairment allowance:
December 31 2025 102853 - - - 102853
Current accrual - - - - -
Write-off of current year (102853) - - - (102853)
June 30 2026 - - - - -
Right-of-use assets carrying
amount:
June 30 2026 3453824 248 440366 403370 4297808
December 31 2025 5327347 227 505095 356505 6189174
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
22 Intangible assets
Non-patent
Land use rights technology/ Others Total
patent right
Gross amount:
December 31 2025 11397185 17097997 3694199 32189381
Increase
New subsidiary 170232 1635 189392 361259
Purchase 121349 140942 27319 289610
Others 281 105863 46457 152601
Decreases
Disposals write-offs and
other decreases (362306) (49321) (28887) (440514)
June 30 2026 11326741 17297116 3928480 32552337
Accumulated amortization:
December 31 2025 1909797 9563084 2013317 13486198
Increase
Accrual 153605 658245 170575 982425
New subsidiary 15298 12 24820 40130
Decreases
Disposals write-offs and (48717) (21431) (534) (70682)
other decreases
June 30 2026 2029983 10199910 2208178 14438071
Intangible assets net:
June 30 2026 9296758 7097206 1720302 18114266
December 31 2025 9487388 7534913 1680882 18703183
Impairment allowance:
December 31 2025 88159 113726 33988 235873
Others - (1091) - (1091)
June 30 2026 88159 112635 33988 234782
Intangible assets carrying
amount:
June 30 2026 9208599 6984571 1686314 17879484
December 31 2025 9399229 7421187 1646894 18467310
Please refer to Note V.28 for information on collateralized intangible assets.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
23 Development expenditures
Development expenditures are presented as follows:
June 30 2026 December 31 2025
Display 756800 963087
New energy photovoltaics and other silicon
materials 291797 241868
1048597 1204955
24 Goodwill
(1) Gross amount of goodwill
Name of investee or matter Increase in Decrease in
forming goodwill December 31 2025 current current June 30 2026period period
TCL Technology Group
(Tianjin) Co. Ltd. 6726130 - - 6726130
Moka International Limited 1733665 - - 1733665
Xinxin Bandaoti Technology
Co. Ltd. 1180005 - - 1180005
Maxeon Solar Technologies
Ltd. 1454829 - (1454829) -
Guangzhou China Star
Optoelectronics Technology 827544 - - 827544
Co. Ltd.Fuzhou Huazhao
Optoelectronics Co. Ltd. - 26425 - 26425
Hunan Chuangke Photoelectrics
Co. Ltd. - 42604 - 42604
Others 974383 - - 974383
12896556 69029 (1454829) 11510756
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
24 Goodwill (Continued)
(2) Goodwill impairment allowance
Increase in
current Decrease in
Name of investee December 31 2025 period current period June 30 2026
Maxeon Solar Technologies Ltd. 1454829 - (1454829) -
Others 31978 - - 31978
1486807 - (1454829) 31978
25 Long-term deferred expenses
Increase in
December 31 2025 current Amortization in
period the period
Others June 30 2026
Improvement expense 664164 176164 (99400) 442 741370
Others 1618719 1204410 (871135) (16992) 1935002
2282883 1380574 (970535) (16550) 2676372
26 Deferred income tax assets and deferred income tax liabilities
(1) Un-offset deferred income tax assets
June 30 2026 December 31 2025
Deductible Deductible
temporary Deferred tax Deferred tax
difference assets
temporary
difference assets
Deductible losses 27850797 3967743 31410984 4619028
Asset impairment
allowances 2406655 374399 2770419 417163
Provisions 4306868 661920 1628857 190566
Changes in fair value 107834 23900 28246 4739
Lease liabilities 3985217 457143 6656326 686252
Others 7066312 1240583 5682436 1228711
45723683 6725688 48177268 7146459
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
26 Deferred income tax assets and deferred income tax liabilities (Continued)
(2) Un-offset deferred income tax liabilities
June 30 2026 December 31 2025
Taxable Deferred Taxable Deferred
temporary income tax temporary income tax
differences liabilities differences liabilities
Depreciation of fixed assets 22157383 3371830 25700461 3908598
Increase in value of assets as
assessed in business
combination not involving 4439925 802166 5542570 1006170
entities under common control
Right-of-use assets 4297808 499952 6189174 748587
Changes in fair value 1470342 350481 774485 180214
Others 125593 16450 701195 142165
32491051 5040879 38907885 5985734
(3) Deferred income tax assets or liabilities presented on a net basis after offsetting
Amount subject to mutual offset of Closing balance of
Item deferred income tax assets against deferred income tax assets
liabilities at the end of the period or liabilities after offset
Deferred income tax assets (3452290) 3273398
Deferred income tax
liabilities (3452290) 1588589
Amount subject to mutual offset of
Item deferred income tax assets against Beginning balance ofliabilities at the beginning of the deferred income tax assets
period or liabilities after offset
Deferred income tax assets (4210127) 2936332
Deferred income tax
liabilities (4210127) 1775607
(4) Unrecognized deferred income tax assets
June 30 2026 December 31 2025
Deductible temporary difference 4213183 4760267
Deductible losses 37126193 39311744
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
41339376 44072011
V Notes to Consolidated Financial Statements (Continued)
26 Deferred income tax assets and deferred income tax liabilities (Continued)
(5) Deductible losses in respect of unrecognized deferred income tax assets will expire in thefollowing years
June 30 2026 December 31 2025
2026 1676511 1042781
2027 2449689 1804152
2028 1127680 1408540
2029 12652134 11388026
2030 9433377 9404550
2031 onwards 9786802 14263695
37126193 39311744
27 Other non-current assets
June 30 2026 December 31 2025
Impairment Carrying Impairment Carrying
Gross amount allowance amount Gross amount allowance amount
Other non-current
assets 16217528 - 16217528 18311727 - 18311727
Note Other non-current assets mainly include prepayments for equity prepayments for engineering equipment large-
amount fixed-income certificates of deposit and fixed-term deposits etc. which are subsequently measured at
amortized cost.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
28 Assets with restricted ownership or use rights
June 30 2026 Reason for restriction
Gross carrying amount Carrying amount
Deposited in the central
Monetary assets 296012 296012 bank as the required
reserve
Other monetary assets
Monetary assets 629108 629108 and restricted bank
deposits
Notes receivable 100 100 In pledge
Fixed assets 56567654 34758632 As collateral for loan
Intangible assets 2771053 2209425 As collateral for loan
Held-for-trading
financial assets 214747 214747 In pledge
Construction in progress 820274 820274 As collateral for loan
Accounts receivable 1027953 1007254 In pledge
Receivable financing 28719 28719 In pledge
Contract assets 173955 156292 In pledge
62529575 40120563
29 Short-term borrowings
June 30 2026 December 31 2025
Unsecured borrowings 10712259 7373594
Borrowings secured by
pledge 164702 151577
Interests payable 12548 27352
10889509 7552523
As at June 30 2026 the Company’s short-term pledged loans were equivalent to RMB 164702000 pledged
with held-for-trading financial assets equivalent to RMB 214747000.As at June 30 2026 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 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
30 Borrowings from the Central Bank
As of June 30 2026 the balance of the borrowings of TCL Technology Group Finance Co. Ltd. (a subsidiary
of the Company) from the Central Bank was RMB 109722000 (December 31 2025: RMB 29756000).
31 Customer deposits and deposits from banks and other financial institutions
June 30 2026 December 31 2025
Customer deposits and deposits from other
banks and financial institutions 242294 364714
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.
32 Held-for-trading financial liabilities
June 30 2026 December 31 2025
Financial liabilities measured at fair value
through current profits and losses 237565 235717
33 Derivative financial liabilities
June 30 2026 December 31 2025
Derivative financial liabilities 137277 50435
34 Notes payable
June 30 2026 December 31 2025
Bank acceptance notes 8222883 6115352
Trade acceptance notes 523819 350248
8746702 6465600
As at June 30 2026 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 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
35 Accounts payable
June 30 2026 December 31 2025
Amounts due to suppliers 34428400 32251944
As at June 30 2026 there were no significant accounts payable aged over one year.
36 Advances from customers
June 30 2026 December 31 2025
Advances from customers 5795 6823
As at June 30 2026 the Company had no significant advances from customers with an aging of more than
one year.
37 Contract liabilities
June 30 2026 December 31 2025
Advances from customers 1994629 2009842
As at June 30 2026 the Company had no significant contract liability aged over one year.
38 Employee compensation payable and long-term employee compensation payable
(1) Employee compensation payable
June 30 2026 December 31 2025
Short-term employee benefits payable 4003385 4923490
Defined contribution plans payable 6951 7788
Dismissal benefits payable 26451 35210
4036787 4966488
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
38 Employee compensation payable and long-term employee compensation payable (Continued)
(1) Employee compensation payable (Continued)
(a) Short-term employee benefits presented
Increase in Decrease in
December 31 2025 current period current period June 30 2026
Wages bonuses
allowances and subsidies 4796079 6096151 (7028879) 3863351
Employee services and
benefits - 274599 (274599) -
Social insurance benefits 27680 212454 (214108) 26026
Including: medical insurance
premium 27518 192230 (193817) 25931
Employment
injury insurance premiums 151 13413 (13469) 95
Maternity
insurance 11 6811 (6822) -
Housing fund 16707 207447 (208125) 16029
Trade union funds and staff
education funds 73937 106788 (92256) 88469
Other employee salaries 9087 7986 (7563) 9510
4923490 6905425 (7825530) 4003385
(b) Defined contribution plans
Increase in Decrease in
current current
December 31 2025 period period June 30 2026
Basic pension insurance 7543 431180 (431980) 6743
Unemployment insurance 245 17771 (17808) 208
7788 448951 (449788) 6951
(2) Long-term employee compensation payable
June 30 2026 December 31 2025
Supplementary pension
insurance 21295 21605
21295 21605
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
39 Taxes and levies payable
June 30 2026 December 31 2025
Corporate income tax 359733 516085
Urban maintenance and construction tax 141166 228297
Value-added tax 134879 52591
Education surcharges 101271 163074
Individual income tax 47181 55338
Others 338737 222949
1122967 1238334
40 Other payables
June 30 2026 December 31 2025
Dividends payable 282143 48249
Other payables 16503469 17667389
16785612 17715638
(1) Dividends payable
June 30 2026 December 31 2025
Other non-controlling interests 282143 48249
282143 48249
(2) Other payables
June 30 2026 December 31 2025
Payables for engineering equipment 10150908 11584251
Unpaid expenses 3553556 3077039
Security and deposits 320782 555385
Others 2478223 2450714
16503469 17667389
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
41 Held-for-sale liabilities
June 30 2026 December 31 2025
Maxeon to sell 100% equity of its
Malaysian subsidiary SPMIY - 71510
42 Non-current liabilities due within one year
June 30 2026 December 31 2025
Long-term borrowings due within one year
(Note 1) 44 28511710 23171348
Bonds payable due within one year 45 - 3706995
Long-term payables due within one year 554618 1270633
Interest payable due within one year 138714 252392
Lease liabilities due within one year 46 196462 2507728
Long-term employee compensation payable due
within one year 688 688
29402192 30909784
Note 1 The interest rates of the Company’s long-term borrowing due within one year ranged from 2.1% to 3.0% in
the current period (2025: from 2.1% to 4.3%).
43 Other current liabilities
June 30 2026 December 31 2025
Short-term bonds 4998987 -
After-sales service fee of products (note) 1396148 1383990
Output tax to be transferred 149058 172922
Others 303238 105232
6847431 1662144
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 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
44 Long-term borrowings
June 30 2026 December 31 2025
Borrowings secured by collateral 14541514 17359693
Borrowings secured by pledge 3845853 3072898
Unsecured borrowings 113460015 118878106
131847382 139310697
Including: long-term loans due within one year (28511710) (23171348)
103335672 116139349
As at June 30 2026 the long-term borrowings secured by collateral were equivalent to RMB
14541514000 (December 31 2025: RMB 17359693000) which were secured by the collateral of the
land use rights houses and buildings machinery and equipment of about RMB 37462210000 (December
31 2025: RMB 61509833000); the long-term pledged borrowings were equivalent to RMB 3845853000
(December 31 2025: RMB 3072898000) which were pledged by the accounts receivable and contract
assets of about RMB 494961000 (December 31 2025: RMB 511728000).The interest rates of the Company’s long-term borrowing ranged from 1.80% to 4.87% in the current period
(2025: from 1.80% to 4.90%).
45 Bonds payable
June 30 2026 December 31 2025
Corporate bonds 6989004 4990207
MTN 2992856 2991667
9981860 7981874
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
45 Bonds payable (Continued)
(1) Movements in bonds payable
Issued in Amortization
Bond name Par value Issue date Maturity Issuedamount December 31 2025 current
Interest accrual
based on par value of premium or June 30 2026period discount
26TCLK1 2000000 May 202026 3 2000000 - 2000000 4274 (4625) 1995375
24TCLK2 1500000 April 92024 5 1500000 1498316 - 20009 670 1498986
24TCLK3 1000000 July 42024 5 1000000 998654 - 11356 446 999100
24TCLK4 1000000 July 42024 5 1000000 996853 - 12199 446 997299
25TCL Group MTN001A (Sci- January 8
Tech Innovation Notes) 1000000 2025 3 1000000 998380 - 9918 396 998776
25TCL Group MTN001B (Sci- January 8
Tech Innovation Notes) 1000000 2025 5 1000000 996779 - 12893 397 997176
25TCL Group MTN002 (Sci- May 12
Tech Innovation Bonds) 1000000 2025 5 1000000 996508 - 12397 396 996904
25TCLK1 1500000 December17 2025 3 1500000 1496384 - 16662 1860 1498244
Total 10000000 10000000 7981874 2000000 99708 (14) 9981860
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
46 Lease liabilities
June 30 2026 December 31 2025
Total lease liabilities 3985217 6656326
Less: Lease liabilities due within one year 196462 2507728
3788755 4148598
47 Long-term payables
June 30 2026 December 31 2025
Finance lease 871340 1388759
Others 290099 -
1161439 1388759
48 Deferred income
December 31 2025 Increase in Decrease incurrent period current period June 30 2026
Public grants 2151176 2370285 (2078271) 2443190
2151176 2370285 (2078271) 2443190
Items involving public grants
Written off
December 31 Recognized against theIncrease in other cost of the Other June 302025 income asset/ changes 2026
expenses
Public grants
related to assets 748897 340983 (2997) (91646) (63231) 932006
Public grants
related to income 1402279 2029302 (517115) (1385984) (17298) 1511184
2151176 2370285 (520112) (1477630) (80529) 2443190
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
49 Provision
June 30 2026 December 31 2025
After-sales service fee of products 164370 180266
Pending litigation 44339 51214
208709 231480
50 Other non-current liabilities
June 30 2026 December 31 2025
Other non-current liabilities 9003 25635
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
51 Share capital
December 31 2025 Increase or decrease in current period June 30 2026
Shares
converted from
Amount Ratio New issues capital reserve Others Subtotal Amount Ratio
I. Restricted shares 2704162 13% - - (1031990) (1031990) 1672172 8%
II. Non-restricted
shares 18096700 87% - - 1031990 1031990 19128690 92%
III. Total shares 20800862 100% - - - - 20800862 100%
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.
52 Other equity instruments
(1)As at June 30 2026 the basic information of the Company's outstanding perpetual bonds and other financial instruments is as follows:
Outstanding Financial Issuance Interest Maturity Date or Conversion Conversion
Instruments Date Rate Issue Price Quantity Amount Renewal Terms Conditions Status
26TCL Group MTN001 (Sci- February 4 RMB 100 10 million Not
Tech Innovation Bonds) 2026 2.35% per note notes 1000000 3+N years applicable Not applicable
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
52 Other equity instruments (Continued)
(2) Principal Terms
Pursuant to the Notice of Acceptance of Registration (ZSXZ [2025] TDFI No. 17) issued by the National
Association of Financial Market Institutional Investors (NAFMII) TCL Technology Group Corporation
issued the first tranche of its 2026 Sci-Tech Innovation Bonds ("26 TCL Group MTN001 (Sci-Tech
Innovation Bonds)" bond code: 102680444) to qualified institutional investors in the interbank market from
February 3 to 4 2026. With the value date being February 5 2026 the bonds registers an aggregate issuance
value of RMB 1.0 billion at par value of RMB 100 per note totaling 10 million notes.The initial tenor of 26TCL Group MTN001 (Sci-Tech Innovation Bonds) is 3 years with each 3 interest-
bearing years constituting one cycle. At the end of the initial tenor and at the end of each subsequent renewal
cycle the Company is entitled to exercise its renewal option to extend the term by one cycle based on the
agreed initial term or elect to redeem and terminate the bonds in full upon the expiry of that cycle. The
coupon rate of 26TCL Group MTN001 (Sci-Tech Innovation Bonds) remains fixed during the first cycle and
is reset at the beginning of each subsequent cycle. The coupon rate for the initial cycle is the initial benchmark
interest rate plus the initial spread. The coupon rate for subsequent cycles will be reset to the then-prevailing
benchmark interest rate plus the initial spread with an additional step-up of 300bps. 26TCL Group MTN001
(Sci-Tech Innovation Bonds) includes an option for the issuer to defer interest payments. Unless a mandatory
interest payment event occurs (including the distribution of dividends to ordinary shareholders and the
reduction of registered capital) the Company may at its sole discretion on each interest payment date defer
the payment of the interest then due as well as all previously deferred interest and interest thereon to the next
interest payment date without limitation on the number of deferrals.As at June 30 2026 the actual aggregate issuance amount of 26TCL Group MTN001 (Sci-Tech Innovation
Bonds) was RMB 1 billion. The Company considers that this renewable corporate bond does not meet the
definition of a financial liability and accordingly the net proceeds of the bond issuance after deducting
underwriting fees and other related transaction costs have been recognized as other equity instruments.
(3) Movements in Outstanding Perpetual Bonds and Other Financial Instruments
Outstanding Financial December 31 2025 Increase in current period Decrease in current period June 30 2026
Instruments Quantity Carrying Quantity Carrying Carrying Carryingamount amount Quantity amount Quantity amount
26TCLGroup MTN001
(Sci-Tech Innovation - - 10 million 997630 - - 10 millionnotes notes 997630Bonds)
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
53 Capital reserves
Increase in Decrease in
December 31 2025 current period current period June 30 2026
Share premium 13535265 1827761 (2598291) 12764735
Other capital reserves 620460 287327 (337989) 569798
14155725 2115088 (2936280) 13334533
54 Treasury share
December 31 2025 Increase in Decrease incurrent period current period June 30 2026
Treasury share 1503652 400044 (397208) 1506488
The increase in the period is mainly stock repurchases for the employee stock ownership plan or the equity
incentives of the Company. As at June 1 2026 the Company held the 23rd meeting of the 8th Board of
Directors to deliberate and approve the Proposal on the Repurchase of Part of the Publicly Held Shares in
2026. The Company plans to repurchase part of its issued shares through centralized bidding which will be
used for employee stock ownership plans or equity incentives. As of June 30 2026 the total number of
shares repurchased was 82168000 shares at the total consideration of RMB 400 million.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 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
55 Other comprehensive income
(1) Other comprehensive income items income tax effects and reclassifications to profit or loss
January - June 2026 January - June2025
I. Items that cannot be reclassified to profit or loss subsequently
1. Share of other comprehensive income of investees that will be
reclassified to profit or loss under the equity method (22071) (10208)
Share of the period (22071) (10166)
Previous other comprehensive income reclassified to retained
earnings for the current period - (42)
2. Changes in fair value of other equity instruments (2500) 6866
Current gain/(loss) (2688) 7619
Income tax effects recorded in other comprehensive income 188 (753)
3. Changes caused by re-measurement of net liabilities or net assets
of defined benefit plans 57081 -
Previous other comprehensive income reclassified to retained
earnings for the current period 57081 -
II. Items that will be reclassified to profit or loss subsequently
1. Share of other comprehensive income of investees that will be
reclassified to profit or loss under the equity method 50451 (37685)
Share of the period 50451 (37685)
2. Cash flow hedges (4703) -
Current gain/(loss) (4703) -
3. Differences arising from translation of foreign currency financial
statements of overseas operations (30061) (92857)
48197 (133902)
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
55 Other comprehensive income (Continued)
(2) Changes in other comprehensive income items
Equity attributable to shareholders of the parent company
Share of
other
comprehensi Differences Changes
ve income of Financial arising from Fair value caused by re- Other
Change in investees that assets Gain/(Loss) translation of changes measurement comprehensi
accounting will be Gain or loss on changes in foreign of other of net ve income
Non- Total other
policies reclassified on fair-value cash flow currency- equity liabilities or transferred to
Subtotal controlling comprehensi
to profit or changes hedges denominated instruments net assets of retained
interests ve income
loss under financial defined earnings
the equity statements benefit plans
method
December 31 2024 334950 325919 (350569) 14174 (741541) (210478) (200) (112714) (740459) (1650) (742109)
Movement of 2025 - (291343) - (1) 47186 (40838) (16873) (31) (301900) (4611) (306511)
December 31 2025 334950 34576 (350569) 14173 (694355) (251316) (17073) (112745) (1042359) (6261) (1048620)
Movement January -
June 2026 - 28367 - (838) (641) (2500) - 17077 41465 6732 48197
June 30 2026 334950 62943 (350569) 13335 (694996) (253816) (17073) (95668) (1000894) 471 (1000423)
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
56 Surplus reserves
Increase in Decrease in
December 31 2025 current period current period June 30 2026
Statutory surplus reserves 3913945 - - 3913945
Discretionary surplus
reserves 182870 - - 182870
4096815 - - 4096815
57 Specific reserves
Appropriation Decrease in
December 31 2025 in current current June 30 2026
period period
Production safety reserve 5598 3422 (2574) 6446
58 General risk reserve
Appropriation in Decrease in
December 31 2025 current period current period June 30 2026
General risk reserve 8934 - - 8934
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
59 Retained earnings
January - June 2026 January - June 2025
Retained earnings at the beginning of the year 24910834 21504719
Net profits for current period 3808272 1883500
Decrease in current period (1889154) (938912)
Including: Appropriation of surplus reserves - -
Distributed to ordinary shareholders as dividends (1872077) (938954)
Others (17077) 42
Retained earnings at the end of the period 26829952 22449307
60 Operating revenue and operating cost
January - June 2026 January - June 2025
Operating Operating Operating
revenue cost revenue Operating cost
Core business 86140918 75505935 82687265 71815128
Non-core business 2507269 1734967 2872739 2267710
88648187 77240902 85560004 74082838
(1) Business by operating segment
Operating revenue Operating cost Gross profit
January - June January - June January - June January - June January - June January - June
2026 2025 2026 2025 2026 2025
Domestic
sales 53879037 54848749 50124176 50404964 3754861 4443785
Foreign
sales 34769150 30711255 27116726 23677874 7652424 7033381
88648187 85560004 77240902 74082838 11407285 11477166
(2) The total revenue from the sales to the top five customers was RMB 26905942000 and RMB
28582114000 for January - June 2026 and January - June 2025 respectively accounting for 30.4%
and 33.4% of the operating revenue respectively.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
60 Operating revenue and operating cost (Continued)
(3) Revenue and costs generated from the Company's trial sales are as follows:
January - June 2026 January - June 2025
Operating revenue 516150 1705918
Operating cost 357142 1422185
61 Interest income/expense and exchange gain
January - June 2026 January - June 2025
Interest expenditures 994 7789
Interest income 38718 101622
Exchange gain 972 207
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.
62 Taxes and levies
January - June January - June
2026 2025
Property tax 298789 263577
Stamp tax 88610 96737
Urban maintenance and construction tax 61024 108427
Education surcharges 44949 79276
Land use tax 32194 36926
Others 3938 13201
529504 598144
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
63 Sales expenses
January - June 2026 January - June 2025
Employee salaries and benefits 619996 639773
Promotional and marketing expenses 185078 156472
Others 403184 367720
1208258 1163965
64 Administrative expenses
January - June 2026 January - June 2025
Employee salaries and benefits 1053205 1184868
Depreciation and amortization expenses 444190 468934
Expenses for hiring intermediaries 223988 150691
Others 630843 396066
2352226 2200559
65 R&D expenses
January - June 2026 January - June 2025
Depreciation and amortization expenses 1596062 2185468
Employee salaries and benefits 1532448 1423147
Material expenses 788078 626942
Others 631144 506322
4547732 4741879
66 Financial expenses
January - June 2026 January - June 2025
Interest expenditures 2033917 2555367
Interest income (268765) (353536)
Exchange loss/(gain) 528011 (120413)
Others 40900 59864
2334063 2141282
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
67 Other income
January - June 2026 January - June 2025
R&D subsidies 463307 743047
Over-deduction in taxable amount for VAT 267047 259376
VAT rebates on software 8633 17519
Others 80247 218560
819234 1238502
68 Return on investment
January - June 2026 January - June 2025
Revenue from long-term equity investment
accounted for using the equity method 1372342 582521
Net income from disposal of long-term equity
investments 449856 (50647)
Return on holding of held-for-trading financial
assets 83953 125922
Return on disposal of held-for-trading financial
assets 117042 34799
Others 170530 138701
2193723 831296
69 Gain on changes in fair value
January - June 2026 January - June 2025
Held-for-trading financial assets 1328011 285102
Derivative financial instruments (66289) 189924
Others (4266) (5138)
1257456 469888
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
70 Credit impairment loss
January - June 2026 January - June 2025
Loss on uncollectible accounts receivable 6629 (6362)
Loss on uncollectible other receivables (3148) (7257)
Impairment loss on notes receivable (14836) -
Other financial assets 6 (11772)
(11349) (25391)
71 Asset impairment loss
January - June 2026 January - June 2025
Inventory valuation loss (2078582) (2793810)
Loss on impairment of fixed assets (244947) (87)
Others (4574) (5047)
(2328103) (2798944)
72 Asset disposal income
January - June 2026 January - June 2025
Income/(loss) from disposal of fixed assets 4839 (763)
Income/(loss) from disposal of intangible assets 43584 (3321)
Others 3449 1065
51872 (3019)
73 Non-operating income
Amount through
January - June January - June current non-
2026 2025 recurring gains and
losses
Gains on retired or damaged non-
current assets 62 174 62
Revenue from liquidated damages and
others 19528 29651 19528
19590 29825 19590
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
74 Non-operating expense
Amount through
January - June January - June current non-
2026 2025 recurring gains and
losses
Losses on retired or damaged non-current
assets 380 3409 380
Donation 53994 17415 53994
Others 123788 99133 123788
178162 119957 178162
75 Income tax expenses
(1) Table of income tax expenses
January - June 2026 January - June 2025
Current income tax expense 519413 665481
Deferred income tax expense (464220) (349587)
55193 315894
(2) Accounting profit and income tax adjustment process
January - June 2026 January - June 2025
Gross profit 2298459 347577
Income tax expense calculated at statutory/applicable
tax rate 574615 52137
Impact of different tax rates applied to subsidiaries (279218) 500690
Impact of adjusting income tax in previous periods (101638) (66236)
Impact of non-deductible costs expenses and losses 10039 36393
Impact of the use of deductible losses carried forward
without recognizing deferred income tax assets in the (9533) 116387
previous periods
Impact of unrecognized deferred income tax assets of
deductible temporary differences or deductible losses 753489 752156
in the current period
Tax incentives and others (892561) (1075633)
Income tax expense 55193 315894
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
76 Earnings per share
(1) Basic earnings per share
January - June 2026 January - June 2025
Net profits attributable to shareholders of the parent company 3808272 1883500
Weighted average outstanding ordinary shares (in thousand shares) 20464154 18573423
Basic earnings per share (RMB yuan) 0.1861 0.1014
(2) Diluted earnings per share
January - June 2026 January - June 2025
Net profits attributable to shareholders of the parent company 3808272 1883500
Diluted weighted average outstanding ordinary shares (in thousand
shares) 20800862 18779081
Diluted earnings per share (RMB yuan) 0.1831 0.1003
77 Other cash received relating to operating activities
Other cash received relating to operating activities in the Company's consolidated cash flow statement was RMB
5393139000 (the same period of the previous year: RMB 8523407000) which primarily consisted of current
payments received public grants and special appropriations.
78 Other cash paid relating to operating activities
Other cash paid relating to operating activities in the Company's consolidated cash flow statement was RMB
7898936000 (the same period of the previous year: RMB 8827613000) which primarily consisted of various
expenses and current payments.
79 Other cash received relating to investing activities
Other cash received relating to investing activities in the Company's consolidated cash flow statement was RMB
266765000 (the same period of the previous year: RMB 182916000) which primarily consisted of security
deposits received finance lease payments received and other receivables and payables.
80 Cash used in other investing activities
Other cash paid relating to investing activities in the Company's consolidated cash flow statement was RMB
637513000 (the same period of the previous year: RMB 464253000) which primarily consisted of the
payments for foreign exchange forward delivery.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
81 Other cash received relating to financing activities
Other cash received relating to financing activities in the Company's consolidated cash flow statement was RMB 236894000 (the same period of the previous
year: RMB 544843000) which primarily consisted of the payment for sales of treasury shares and receipt of finance leasing borrowings.
82 Other cash paid relating to financing activities
Other cash paid relating to financing activities in the Company's consolidated statement of cash flows amounted to RMB 8807007000 (RMB 9101549000 for the same
period of last year) which primarily consisted of payments for the repurchase of minority interests share repurchases and finance lease payments.
(1)Changes in liabilities arising from financing activities:
Increase in current period Decrease in current period
Item December 31 2025 Cash Non-cash Non-cash June 30 2026
movements movements Cash movements movements
Dividends payable 48249 - 2124142 (1890248) - 282143
Short-term borrowings 7552523 15067479 345718 (12076211) - 10889509
Long-term borrowings (including non-current liabilities
due within one year) 139349241 15866783 2332958 (25675000) - 131873982
Bonds payable (including non-current liabilities due
within one year) 11902717 2000000 183102 (3723420) (268425) 10093974
Lease liabilities (including non-current liabilities due
within one year) 6656326 - 194817 (113923) (2752003) 3985217
Long-term payables (including non-current liabilities due
within one year) 2006069 57664 316641 (1121165) (15933) 1243276
Other current liabilities - 5000000 - - (1013) 4998987
Total 167515125 37991926 5493378 (44599967) (3037374) 163367088
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
83 Supplementary information for the cash flow statement
(1) Reconciliation of net profits to net cash generated from/used in operating activities
January - June 2026 January - June 2025
Net profits 2243266 31683
Add: Asset impairment allowances 2339452 2824335
Depreciation of fixed assets and investment properties 13768340 13375276
Depreciation of right-of-use assets 217342 255297
Amortization of intangible assets 982425 1397225
Amortization of long-term deferred expenses 970535 1054605
Loss/(Gain) on disposal of fixed assets intangible assets
and other long-term assets (51872) 3019
Loss/(Gain) on retired or damaged fixed assets 318 3235
Loss/(Gain) on changes in fair value (1257456) (469888)
Financial expenses 2561950 2442536
Return on investment (2193723) (831296)
Decrease/(Increase) in deferred income tax assets (337066) (271016)
Increase/(Decrease) in deferred income tax liabilities (187018) 465418
Decrease/(Increase) in inventory (6271840) (5379161)
Decrease/(Increase) in operating receivables 1684030 8496334
Increase/(Decrease) in operating payables 190109 3717554
Others 2963360 158837
Net cash generated from operating activities 17622152 27273983
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
83 Supplementary information for the cash flow statement (Continued)
(2) Net cash payments for acquisition of subsidiaries in the current period
January - June 2026 January - June 2025
Payments of cash and cash equivalents made in current period
due to business combinations incurred in current period 1811884 12999145
Less: cash and cash equivalents held by subsidiary on acquisition
date 49826 6894562
Net cash payments for acquisition of subsidiaries 1762058 6104583
(3) Net cash proceeds from disposal of subsidiaries in the current period
January - June 2026 January - June 2025
Cash or cash equivalents received in current period due to
disposal of subsidiary in the current period 18500 -
Less: Cash and cash equivalents held by subsidiary on the date
when the Company’s control over the subsidiary ceased 1001 -
Net cash proceeds from the disposal of subsidiaries 17499 -
(4) Breakdown of cash and cash equivalents
January - June 2026 January - June 2025
I. Cash 22218724 26556661
Including: Cash on hand 553 497
Bank deposits available for payment on demand 21082668 26267546
Other monetary assets are available for payment on
demand 1129597 282231
Deposits with the central bank available for payment 5906 6387
II. Cash equivalents - -
III. Ending balance of cash and cash equivalents 22218724 26556661
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
83 Supplementary information for the cash flow statement (Continued)
(5) Description of other major activities
Major operation or investment activities in no connection with cash receipts and payments:
January - June January - June
2026 2025
Payment for procurement of inventory by bank acceptance bills 1389900 653438
Payment for procurement of long-term assets by bank acceptance bills 219851 1154167
Right-of-use assets newly added in the current period 194769 144044
1804520 1951649
84 Net changes in cash and cash equivalents
January - June January - June
2026 2025
Ending balance of cash and cash equivalents 22218724 26556661
Less: Cash at the beginning of the year 26565803 20861225
Net increase in cash and cash equivalents (4347079) 5695406
Analysis of ending balance of cash and cash equivalents:
Monetary assets at the end of the period 23149621 28544343
Less: Non-cash equivalents at the end of the period (note) 930897 1987682
Ending balance of cash and cash equivalents 22218724 26556661
Note: The ending non-cash equivalents primarily included 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 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
85 Foreign currency monetary items
June 30 2026
Foreign currency
balance Conversion rate RMB balance
Monetary assets
Including: USD 770952 6.8109 4774114
INR 3607542 0.0722 260465
HKD 54896 0.8683 47666
Other foreign
currencies 76923
Accounts receivable
Including: USD 1332949 6.8109 9078582
INR 8411544 0.0722 607313
Other foreign
currencies 31926
Accounts payable
Including: USD 666980 6.8109 4542734
JPY 13906685 0.0420 584081
HKD 380676 0.8683 330541
Other foreign
currencies 264783
Other receivables
Including: USD 28129 6.8109 191584
MXN 413109 0.3893 160823
Other foreign
currencies 44914
Other payables
Including: USD 353750 6.8109 2409356
JPY 8426912 0.0420 353930
Other foreign currencies 169901
Short-term borrowings
Including: USD 24183 6.8109 164708
Long-term borrowings
Including: USD 175000 6.8109 1191908
Long-term borrowings due
within one year
Including: USD 25000 6.8109 170273
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
86 Leases
(1) The Company acting as a lessee
In 2026 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.
(2) The Company acting as a lessor
* 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 110903 -
Machinery equipment 6359 -
Others 113 -
Total 117375 -
* Undiscounted lease receipts to be received in each of the next five years
Annual undiscounted lease receipts
Item June 30 2026 December 31 2025
Year 1 117773 281923
Year 2 113770 221154
Year 3 109658 195366
Year 4 85858 184634
Year 5 65535 83117
Total undiscounted lease receipts
after five years 757072 858768
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
VI R&D expenses
1 Presentation by nature of expenses
Item January - June 2026 January - June 2025
Material costs 1358552 1260357
Labor costs 1775851 1611007
Depreciations and amortizations 903158 1045187
Others 584956 612095
Total 4622517 4528646
Including: Expensed R&D expenses 3587368 3339314
Capitalized R&D expenses 1035149 1189332
2 Development expenditures of R&D projects eligible for capitalization
Increase in current period Decrease in current period
Item December Internal June 3031 2025 development Others Recognized as an Included in profits 2026
expenditures intangible asset and losses
Others
Display 963087 926900 - (47543) (148528) (937116) 756800
New energy
photovoltaics and
other silicon 241868 108249 - (58320) - - 291797
materials
Total 1204955 1035149 - (105863) (148528) (937116) 1048597
3 As at June 30 2026 the Company had no significant outsourced projects under research.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
VII Changes to the Consolidation Scope
1 Business combination not under common control
(1) Acquisition of equity of Fuzhou Huazhao Optoelectronics Co. Ltd.
1 The cost of acquisition and goodwill were recognized as follows:
As at February 28 2026 (the "Acquisition Date") the Group acquired 80% equity of Fuzhou
Huazhao Optoelectronics Co. Ltd. at a cash consideration of RMB 489729000 and included
such company into the scope of consolidation.Cash consideration 489729
Less: Share of fair value of identifiable net assets acquired 463304
Goodwill amount 26425
2 Assets and liabilities of the acquired party as at the acquisition date are presented as follows:
Fair value as at the Carrying amount as
acquisition date at the acquisition date
Total assets 1907494 1849650
Total liabilities 1295304 1295304
Net assets 612190 554346
Less: non-controlling interests 148886 140054
Net assets acquired 463304 414292
(2) Acquisition of equity of Hunan Chuangke Photoelectrics Co. Ltd.
1 The cost of acquisition and goodwill were recognized as follows:
As at March 31 2026 (the "Acquisition Date") the Group acquired a 21% equity interest in Hunan
Chuangke Photoelectrics Co. Ltd. at a cash consideration of RMB 17000000 and made a cash
capital contribution of RMB 63000000 to the same company. Upon completion of the
aforementioned equity acquisition and capital injection the Group held a 56% equity interest in
Hunan Chuangke Photoelectrics Co. Ltd. obtaining effective control over the company and
including it in the scope of consolidation.Cash consideration 80000
Less: Share of fair value of identifiable net assets acquired 37396
Goodwill amount 42604
2 Assets and liabilities of the acquired party as at the acquisition date are presented as follows:
Fair value as at the Carrying amount as at
acquisition date the acquisition date
Total assets 166233 165957
Total liabilities 99455 99455
Net assets 66778 66502
Less: non-controlling interests 29382 29261
Net assets acquired 37396 37241
2 No business combination under common control occurred in current period.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
VII Changes to Consolidation Scope (Continued)
3 Disposal of subsidiaries
Name of subsidiary Maxeon Solar Technologies Ltd
Price for equity interest disposal -
% equity interest disposed 59%
Way of equity disposal Takeover by the bankruptcy administrator
Time of loss of control April 9 2026
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 1201287
disposed equity interest
4 Changes in the scope of consolidation for other reasons
Name of investee Reason for change
Zhengzhou Shangrong Trading Co. Ltd. Newly established
Wuhan Titi Yunchuang Education Technology Co. Ltd. Newly established
Ningbo Chengda Shangpin Technology Co. Ltd. Newly established
Shenzhen Shangpai Zhuofan Technology Co. Ltd. Newly established
Guangzhou Shangpai Zhihe Electronics Technology Co. Ltd. Newly established
TCL International Supply Chain (Huizhou) Co. Ltd. Newly established
Zhejiang Xingyong Electronics Co. Ltd. Newly established
Shenzhen Zhonghuan Advanced Bandaoti Materials Co. Ltd. Newly established
Ningbo Dongxi Rongrui Venture Capital Partnership (Limited Newly established
Partnership)
Shenzhen Yunqi New Materials Technology Co. Ltd. Newly established
Yixing Zhonghuan Leading Engineering Management Co. Ltd. Capital increase for controlling interest
Tianjin Jincheng Internet Technology Co. Ltd. De-registered
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
VIII Interests in Other Entities
1 Interests in subsidiaries
(1) Composition of the enterprise group
Shareholding
Name of investee Place of Nature of Principal place of How subsidiaryregistration business business percentageDirect Indirect was obtained
TCL China Star Optoelectronics Technology Co. Ltd. Shenzhen Manufacturingand sales Shenzhen 82.82% - Incorporated
Shenzhen China Star Optoelectronics Bandaoti Display
Shenzhen ManufacturingTechnology Co. Ltd. and sales Shenzhen - 94.97% Incorporated
Guangzhou China Ray Optoelectronic Materials Co.Guangzhou Research andLtd. development Guangzhou - 100.00% Incorporated
Wuhan China Star Optoelectronics Technology Co.Wuhan ManufacturingLtd. and sales Wuhan - 99.16% Incorporated
Wuhan China Star Optoelectronics Bandaoti Display Manufacturing
Technology Co. Ltd. Wuhan and sales Wuhan - 62.38% Incorporated
China Star Optoelectronics International (HK) Limited Hong Kong Sales Hong Kong - 100.00% Incorporated
Business
China Display Optoelectronics Technology Holdings
Bermuda InvestmentLimited holding Bermuda - 64.20%
combination not
under common
control
China Display Optoelectronics Technology (Huizhou)
Huizhou ManufacturingCo. Ltd. and sales Huizhou - 100.00% Incorporated
Wuhan China Display Optoelectronics Technology Co. Manufacturing
Ltd. Wuhan and sales Wuhan - 100.00% Incorporated
Business
Suzhou China Star Optoelectronics Technology Co.Suzhou Manufacturing combination notLtd. and sales Suzhou - 100.00% under common
control
Business
Suzhou China Star Optoelectronics Display Co. Ltd. Suzhou Manufacturing Suzhou - 100.00% combination notand sales under common
control
Guangzhou China Star Optoelectronics Bandaoti Manufacturing
Display Technology Co. Ltd. Guangzhou and sales Guangzhou - 55.00% Incorporated
Business
Guangzhou China Star Optoelectronics Display Co.Ltd. Guangzhou
Manufacturing
and sales Guangzhou - 100.00%
combination not
under common
control
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
VIII Interests in Other Entities (Continued)
1 Interests in subsidiaries (Continued)
(1) Composition of the enterprise group (Continued)
Name of investee Place of Nature of Principal place of
Shareholding How subsidiary
registration business business percentageDirect Indirect was obtained
Business
Guangzhou China Star Optoelectronics Manufacturing
Guangzhou Guangzhou combination not
Technology Co. Ltd. and sales - 100.00% under common
control
Guangzhou China Star Optoelectronics Printed Manufacturing Incorporated
Display Technology Co. Ltd. Guangzhou and sales Guangzhou - 21.00%
Highly Information Industry Co. Ltd. Beijing Productdistribution Beijing 66.46% -
Incorporated
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 Entrepreneurship Incorporated
Investment Co. Ltd. Shenzhen
Investment
business Shenzhen 100.00% -
Ningbo TCL Equity Investment Ltd. Ningbo Investmentbusiness Shenzhen 100.00% -
Incorporated
TCL Technology Park (Huizhou) Co. Ltd. Huizhou Property Huizhou - 100.00% Incorporatedmanagement
TCL Technology Investments Limited Hong Kong Investment Incorporatedbusiness Hong Kong 100.00% -
Business
TCL Zhonghuan Renewable Energy Manufacturing
Technology Co. Ltd. ("TZE") Tianjin and sales Tianjin 2.55% 27.36%
combination not
under common
control
Business
Tianjin Printronics Circuit Corporation
Tianjin Manufacturing combination not("TPC") and sales Tianjin - 29.42% under common
control
Business
Inner Mongolia Zhonghuan Crystal Materials
Co. Ltd. Inner Mongolia
Manufacturing
and sales Inner Mongolia - 83.96%
combination not
under common
control
Ningxia Hui Ningxia Hui Business
Ningxia Zhonghuan Solar Material Co. Ltd. Autonomous Manufacturingand sales Autonomous - 100.00%
combination not
Region Region under commoncontrol
Business
Tianjin Huan'ou Bandaoti Manufacturing combination not
Material&Technology Co. Ltd. Tianjin and sales Tianjin - 100.00% under common
control
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
VIII Interests in Other Entities (Continued)
1 Interests in subsidiaries (Continued)
(1) Composition of the enterprise group (Continued)
Shareholding
Name of investee Place of Nature of Principal place percentage How subsidiary wasregistration business of business Direct Indirect obtained
Business combination
Wuxi Zhonghuan Applied Materials Co. Ltd. Jiangsu Manufacturingand sales Jiangsu - 98.08% not under commoncontrol
Inner Manufacturing Business combinationInner Mongolia Zhonghuan Solar Material Co. Ltd. Mongolia and sales Inner Mongolia - 100.00% not under commoncontrol
Business combination
Tianjin Huanou International Silicon Material Co.Ltd. Tianjin Sales Tianjin - 100.00%
not under common
control
Business combination
Zhonghuan Hong Kong Holding Limited Hong Kong Import andexport Hong Kong - 100.00% not under common
control
Business combination
Zhonghuan Advanced Bandaoti Technology Co.Ltd. Jiangsu
Manufacturing
and sales Jiangsu 9.19% 32.72% not under common
control
Business combination
TCL Zhonghuan Energy Technology (Jiangsu) Co.Jiangsu ManufacturingLtd. and sales Jiangsu - 100.00%
not under common
control
Business combination
Huansheng New Energy (Jiangsu) Co. Ltd. Jiangsu Manufacturingand sales Jiangsu - 95.74% not under common
control
Business combination
Huansheng New Energy (Tianjin) Co. Ltd. Tianjin Manufacturingand sales Tianjin - 87.33% not under common
control
Power
generation Business combination
Tianjin Zhonghuan New Energy Co. Ltd. Tianjin powertransmission Tianjin - 100.00% not under common
power supply control
(distribution)
Business combination
Tianjin Huanrui Electronic Technology Co. Ltd. Tianjin Purchase Tianjin - 100.00% not under common
control
Business combination
Moka International Limited BVI Investmentholding BVI - 100.00% not under common
control
Business combination
Moka Technology (Guangdong) Co. Ltd. Huizhou Manufacturingand sales Huizhou - 100.00% not under common
control
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
VIII Interests in Other Entities (Continued)
1 Interests in subsidiaries (Continued)
(1) Composition of the enterprise group (Continued)
Basis for determining that the Company controls an investee even if it holds half or less of the
voting rights and does not control an investee even if it holds more than half of the voting rights:
The operating activities of the above subsidiaries including the purchase of materials equipment
or services production and sales of products establishment of internal control systems
development and application of information systems financing activities investment activities
research and development activities and fund management are all substantively managed and
controlled by the Company.
(2) Subsidiaries with substantial non-controlling interests
Profit or loss Dividends
Shareholding ratio attributable to distributed to Balance of minority
Name of subsidiary of minority minority minority interests at the end of
shareholders shareholders in shareholders in the period
current period current period
TCL China Star Optoelectronics
Technology Co. Ltd. 17.18% 618205 - 32737505
TCL Zhonghuan Renewable
Energy Technology Co. Ltd. 70.09% (2493894) - 27302170
Highly Information Industry
Co. Ltd. 33.54% 50506 10356 733789
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
VIII Interests in other entities (Continued)
1 Interests in subsidiaries (Continued)
(2) Subsidiaries with substantial non-controlling interests (Continued)
The key financial information of the above subsidiaries is as follows:
June 30 2026 December 31 2025
Current Non-current Total assets Current Non-current Total Current Non-current Total assets Current Non-current Totalassets assets liabilities liabilities liabilities assets assets liabilities liabilities liabilities
TCL China
Star
Optoelectronic 52015994 136142891 188158885 63502198 51341357 114843555 58314547 144143039 202457586 53596487 62413781 116010268
s Technology
Co. Ltd.TCL
Zhonghuan
Renewable 29322892 83439752 112762644 29929466 48043835 77973301 31636065 86361108 117997173 30628550 48109574 78738124Energy
Technology
Co. Ltd.Highly
Information 8332168
Industry Co. 209267 8541435 6729264 28904 6758168
7968506 200219 8168725 6430252 26767 6457019
Ltd.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
VIII Interests in other entities (Continued)
1 Interests in subsidiaries (Continued)
(2) Subsidiaries with substantial non-controlling interests (Continued)
The key financial information of the above subsidiaries is as follows:
January - June 2026 January - June 2025
Operating Total Net cash generateNet profits comprehensive from/used in Operating
Total Net cash generate
revenue revenue Net profits comprehensive from/used inincome operating activities income operating activities
TCL China Star
Optoelectronics 50273461 3902660 3835724 18835531 50429196 4316269 4236220 26413752
Technology Co.Ltd.TCL Zhonghuan
Renewable Energy 14314940 (3457279) (3474023) 320770 13398123 (4836171) (4890135) 523174
Technology Co. Ltd.Highly Information 17823270 103218 104019 (506751) 14674516 67956 67247 (452670)
Industry Co. Ltd.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
VII Interests in other entities (Continued)
I
2 Interests in joint ventures and associates
(1) Basic information about principal joint ventures and associates
Principal place of Strategic to the Shareholding
Name of investee business/place of Nature ofbusiness Group’s activities or
percentage
registration not Direct Indirect
Associate
Bank of Shanghai Co.Ltd. Shanghai Financial Yes 5.76%
(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 2026
(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 at June 30 2026 no significant guarantee or other credit enhancements held due to the debtor
mortgage was found in the Group.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
IX Risks Related to Financial Instruments (Continued)
(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 at June 30 2026 the Group’s financial liabilities by maturity are as follows:
Item Within 1 year 1-2 years 2-5 years Over 5 years
Short-term borrowings 10989178 - - -
Borrowings from the Central
Bank 110076
- - -
Customer deposits and deposits - - -
from other banks and financial 246532
institutions
Held-for-trading financial - - -
liabilities 237565
Derivative financial liabilities 137277 - - -
Notes payable 8746702 - - -
Accounts payable 34428400 - - -
Other payables 16785612 - - -
Other current liabilities 6883309 - - -
Long-term borrowings 30218060 48164616 48404828 13795326
Bonds payable 342197 1212962 9309396 -
Lease liabilities 399481 746896 495138 2848503
Long-term payables 517404 463032 505975 405240
Total 110041793 50587506 58715337 17049069
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(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.As at June 30 2026 foreign-currency asset and liability items with significant exposure to exchange risk
were mainly denominated in US dollars. The post-control total risk exposure of the US dollar-denominated
items had a net asset exposure of USD 148431000 equivalent to RMB 1010946000 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 rate Exchange rate at period-end
January - June 2026 June 30 2026
USD/RMB 6.8836 6.8109
Assuming that all other risk variables remain constant a 5% depreciation/appreciation of RMB against
USD as at June 30 2026 would result in an increase/decrease in both shareholders' equity and net profit of
the Group by RMB 50547000.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 carrying 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 2026 the Group's liabilities with
floating interest rates accounted for 82.51% 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) Offsetting 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 enforceable master netting arrangements or similar agreements was RMB 9544657000.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
X Fair value disclosures
The level within which the fair value measurement is categorized is determined by the lowest level
of input that is significant to the overall fair value measurement.Level 1: the unadjusted quotation of the same type of assets or liabilities in active markets.Level 2: the directly or indirectly observable input of a financial asset or liability that does not
belong to level 1.Level 3: unobservable inputs for the related asset or liability.
1 Assets and liabilities measured at fair value as of June 30 2026
Financial assets
Item Level 1 Level 2 Level 3 Total
Held-for-trading financial assets (see
Note V. 2) 4626079 12815960 908632 18350671
Derivative financial assets (see Note V.
3) - 25350 - 25350
Receivables financing (see Note V. 6) - - 528486 528486
Investments in other equity instruments
(see Note V. 16) 13754 - 162538 176292
Other non-current financial assets (see
Note V. 17) 585333 - 3975705 4561038
Total assets continuously measured at
fair value 5225166 12841310 5575361 23641837
Financial liabilities
Item Level 1 Level 2 Level 3 Total
Held-for-trading financial liabilities
(see Note V. 32) - - 237565 237565
Derivative financial liabilities (see
Note V. 33) - 137277 - 137277
Total liabilities continuously measured
at fair value - 137277 237565 374842
For financial instruments traded in active markets the Company determines their fair value based
on the quotation in active markets. For financial instruments not traded in active markets the
Company determines their fair value using valuation techniques. The valuation models primarily
used include discounted cash flow models and market comparable company models. Key inputs for
the valuation techniques mainly include risk-free interest rates benchmark rates exchange rates
credit spreads liquidity premiums and discounts for lack of liquidity.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
X Fair Value disclosures (Continued)
2 Basis for determining the market prices of recurring and non-recurring level 1 fair value
The Company adopts the active market quotation as the fair value of a level 1 financial asset.
3 Items measured at recurring and non-recurring level 2 fair value adopt the following valuationtechniques and parameters (nature and quantity)
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.
4 Items measured at recurring and non-recurring level 3 fair value adopt the following valuationtechniques 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.
5 Fair value of financial assets and financial liabilities not measured at fair value
The Company’s financial assets and financial liabilities measured at amortized cost primarily
include: cash and cash equivalents notes receivable accounts receivable other receivables debt
investments short-term borrowings notes payable accounts payable other payables long-term
borrowings due within one year and long-term payables long-term borrowings and bonds payable.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
XI Related Parties and Related-Party Transactions
1 Actual controller and its acting-in-concert parties
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 1268160591 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 whose capital
contribution accounts for 50% or more of the total capital of a limited liability company or whose shares
account for 50% or more of the total share capital of a company limited by shares; or a shareholder whose capital
contribution or shareholding ratio is less than 50% but whose voting rights corresponding to such capital
contribution or shares held are sufficient to exert a significant impact on the resolutions of the shareholders'
meeting or the shareholders' general meeting. According to the definition above the Company has no controlling
shareholder.
2 The nature of related parties without control relationship
Information about such related parties:
Company name Relationship with the Group
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
(Limited Partnership) Associate
Inner Mongolia Xinhuan Silicon Energy Technology Co. Ltd. Associate
Inner Mongolia Sheng’ou Electromechanical Engineering 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
Zhonghuan Feilang (Tianjin) Technology Co. Ltd. Associate
Wuhan Guochuangke Optoelectronic Equipment Co. Ltd. Associate
Ningbo Dongpeng Heli Equity Investment Partnership (Limited
Partnership) Associate
China Innovative Capital Management Limited Associate
Huizhou TCL Kaichuang Enterprise Management Co. Ltd. Associate
Shenzhen Qianhai Sailing International Supply Chain Management Co.Ltd. and its subsidiaries Associate 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. Ltd. and its subsidiaries Associate 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 subsidiaries Associate and its subsidiaries
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
XIX Related Parties and Related-Party Transactions (Continued)
2 2 The nature of related parties without control relationship (Continued)
Company name Relationship with the Group
Wuxi TCL Venture Capital Partnership (Limited Partnership) and its
subsidiaries Associate and its subsidiaries
Ningbo Dongpeng Weichuang Equity Investment Partnership (Limited
Partnership) and its subsidiaries Associate and its subsidiaries
Yixing Jiangnan Tianyuan Venture Capital Company (Limited Partnership) and
its subsidiaries Associate and its subsidiaries
Nanjing Zijin A Dynamic Investment Partnership (Limited Partnership) and its
subsidiaries Associate and its 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
Ningbo Jiutian Matrix Investment Management Co. Ltd. and its subsidiaries Associate and its 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
3 Major related-party transactions
(1) Selling raw materials and finished goods (Note 1)
January - June January - June
2026 2025
TCL Industries Holdings Co. Ltd. and its subsidiaries 11712024 9933434
Shenzhen Qianhai Sailing International Supply Chain
Management Co. Ltd. and its subsidiaries 2256168 823936
Shenzhen Jucai Supply Chain Technology Co. Ltd. and its
subsidiaries 12113 6979
TCL Microchip Technology (Guangdong) Co. Ltd. and its
subsidiaries 9283 554
Zhonghuan Feilang (Tianjin) Technology Co. Ltd. 5487 6130
Joint ventures and subsidiaries of TCL Industries Holdings Co.Ltd. 1219 -
Inner Mongolia Xinhuan Silicon Energy Technology Co. Ltd. 56 203
Inner Mongolia Huanye Material Co. Ltd. and its subsidiaries 8 2
Huizhou TCL Human Resources Service Co. Ltd. and its
subsidiaries 2 -
13996360 10771238
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
XI Related Parties and Related-Party Transactions (Continued)
3 Major related-party transactions (Continued)
(2) Purchasing raw materials and finished products (Note 2)
January - June 2026 January - June 2025
Aijiexu New Electronic Display Glass (Shenzhen) Co. Ltd. 1667013 1816831
Inner Mongolia Xinhuan Silicon Energy Technology Co. Ltd. 1174677 1054199
TCL Industries Holdings Co. Ltd. and its subsidiaries 996157 1200340
Shenzhen Jucai Supply Chain Technology Co. Ltd. and its
subsidiaries 947831 765742
Shenzhen Qianhai Sailing International Supply Chain
Management Co. Ltd. and its subsidiaries 814155 542826
Inner Mongolia Xinhua Bandaoti Technology Co. Ltd. 39967 8879
Inner Mongolia Zhongjing Science and Technology Research
Institute Co. Ltd. and its subsidiaries 731 990
TCL Microchip Technology (Guangdong) Co. Ltd. and its
subsidiaries - 32783
5640531 5422590
(3) Receiving funding (Note 3)
January - June 2026 January - June 2025
Shenzhen Qianhai Sailing International Supply Chain Management
Co. Ltd. and its subsidiaries 275417 79720
Huizhou TCL Human Resources Service Co. Ltd. and its subsidiaries 98409 110826
Wuxi TCL Venture Capital Partnership (Limited Partnership) and its
subsidiaries 18751 5548
Ningbo Dongpeng Weichuang Equity Investment Partnership (Limited
Partnership) and its subsidiaries 634 649
Yixing Jiangnan Tianyuan Venture Capital Company (Limited
Partnership) and its subsidiaries 559 606
Nanjing Zijin A Dynamic Investment Partnership (Limited
Partnership) and its subsidiaries 334 337
TCL Industries Holdings Co. Ltd. and its subsidiaries - 807296
Shenzhen Jucai Supply Chain Technology Co. Ltd. and its
subsidiaries - 253330
TCL Microchip Technology (Guangdong) Co. Ltd. and its
subsidiaries - 1
394104 1258353
(4) Rendering of funds (Note 3)
January - June January - June
2026 2025
TCL Industries Holdings Co. Ltd. and its subsidiaries 226 194623
226 194623
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
XI Related Parties and Related-Party Transactions (Continued)
3 Major related-party transactions (Continued)
(5) Leases
January - June January - June
2026 2025
Rental income
TCL Industries Holdings Co. Ltd. and its subsidiaries 31425 32037
Inner Mongolia Huanye Material Co. Ltd. and its
subsidiaries 2462 -
Shenzhen Jucai Supply Chain Technology Co. Ltd.and its subsidiaries 534 363
Zhonghuan Feilang (Tianjin) Technology Co. Ltd. 439 -
Aijiexu New Electronic Display Glass (Shenzhen)
Co. Ltd. 315 12767
Purplevine Holdings Limited and its subsidiaries 72 -
TCL Microchip Technology (Guangdong) Co. Ltd.and its subsidiaries 48 1887
Huizhou TCL Human Resources Service Co. Ltd. and
its subsidiaries 26 34
Shenzhen Tixiang Business Management Technology
Co. Ltd. and its subsidiaries 13 37
Shenzhen Qianhai Sailing International Supply Chain
Management Co. Ltd. and its subsidiaries 7 12
Jiangsu Jixin Bandaoti Silicon Material Research
Institute Co. Ltd. and its subsidiaries - 69
35341 47206
January - June January - June
2026 2025
Rental expense
TCL Industries Holdings Co. Ltd. and its subsidiaries 18814 23549
Tianjin Huanyan Technology Co. Ltd. 2269 1134
TCL Microchip Technology (Guangdong) Co. Ltd.and its subsidiaries 34 30
Huaxia CPV (Inner Mongolia) Power Co. Ltd. 18 -
21135 24713
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
XI Related Parties and Related-Party Transactions (Continued)
3 Major related-party transactions (Continued)
(6) Guarantee
The Company as a guarantor
Guarantee Guarantee
Guarantee Whether the
amount commencement
Guarantee
date maturity date
guarantee has been
fulfilled or not
Aijiexu New Electronic
Display Glass (Shenzhen) 96026 April 28 2020 June 28 2030 No
Co. Ltd.Shenzhen Qianhai Sailing
International Supply Chain 443817 January 30 2026 October 27 2026 No
Management Co. Ltd.Inner Mongolia Xinhua
Bandaoti Technology Co. 352000 May 22 2023 May 22 2030 No
Ltd.Inner Mongolia Xinhuan
Silicon Energy Technology 1193967 June 15 2023 June 14 2029 No
Co. Ltd.
2085810
As of June 30 2026 there were no instances of the Company acting as the guaranteed party.
(7) Rendering or receipt of services
January - June January - June
2026 2025
Rendering of services 178851 165446
Receipt of services 1051635 963539
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
XI Related Parties and Related-Party Transactions (Continued)
3 Major related-party transactions (Continued)
(8) Collection/Payment of interest (Note 3)
January - June January - June
2026 2025
Interest received 175 2818
Interest paid 12530 11033
(9) Remuneration of key management personnel (Note 4)
January - June January - June
2026 2025
Remuneration of key management personnel 8300 6250
Note 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 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 2026
(RMB’000)
XI Related Parties and Related-Party Transactions (Continued)
3 Major 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.
4 Amounts due from / to related parties
(1) Accounts receivable
June 30 2026 December 31 2025
TCL Industries Holdings Co. Ltd. and its subsidiaries 4169935 5802990
Shenzhen Qianhai Sailing International Supply Chain
Management Co. Ltd. and its subsidiaries 147334 241577
Shenzhen Jucai Supply Chain Technology Co. Ltd. and
its subsidiaries 14212 12051
Zhonghuan Feilang (Tianjin) Technology Co. Ltd. 3644 1698
TCL Microchip Technology (Guangdong) Co. Ltd. and
its subsidiaries 1884 2174
Tianjin Zhonghuan Haihe Intelligent Manufacturing Fund
Partnership (Limited Partnership) 1700 16855
Inner Mongolia Huanye Material Co. Ltd. and its
subsidiaries 626 66
Joint ventures and subsidiaries of TCL Industries
Holdings Co. Ltd. 384 31
Inner Mongolia Zhongjing Science and Technology
Research Institute Co. Ltd. and its subsidiaries 91 80
Thunderbird Innovation Technology (Shenzhen) Co. Ltd.and its subsidiaries - 2
4339810 6077524
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
XI Related Parties and Related-Party Transactions (Continued)
4 Amounts due from / to related parties (Continued)
(2) Receivables financing
June 30 2026 December 31 2025
Shenzhen Qianhai Sailing International Supply Chain
Management Co. Ltd. and its subsidiaries - 315
- 315
(3) Accounts payable
June 30 2026 December 31 2025
TCL Industries Holdings Co. Ltd. and its subsidiaries 1712445 1205551
Aijiexu New Electronic Display Glass (Shenzhen) Co. Ltd. 1170298 905023
Shenzhen Jucai Supply Chain Technology Co. Ltd. and its
subsidiaries 528318 586882
Shenzhen Qianhai Sailing International Supply Chain
Management Co. Ltd. and its subsidiaries 235239 126650
TCL Microchip Technology (Guangdong) Co. Ltd. and its
subsidiaries 146286 61424
Inner Mongolia Zhongjing Science and Technology Research
Institute Co. Ltd. and its subsidiaries 41612 19091
Inner Mongolia Huanye Material Co. Ltd. and its
subsidiaries 40809 6907
Inner Mongolia Xinhua Bandaoti Technology Co. Ltd. 34975 -
Tianjin Huanyan Technology Co. Ltd. 1609 -
Joint ventures and subsidiaries of TCL Industries Holdings
Co. Ltd. 581 775
Huizhou TCL Human Resources Service Co. Ltd. and its
subsidiaries 315 74
Inner Mongolia Sheng’ou Electromechanical Engineering
Co. Ltd. 261 -
Zhonghuan Feilang (Tianjin) Technology Co. Ltd. 183 207
Wuhan Guochuangke Optoelectronic Equipment Co. Ltd. 158 -
Shanghai Feilihua Shichuang Technology Co. Ltd. 9 9
3913098 2912593
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
XI Related Parties and Related-Party Transactions (Continued)
Related Parties and Related-Party Transactions (Continued)
4 Amounts due from / to related parties (Continued)
(4) Other receivables
June 30 2026 December 31 2025
TCL Industries Holdings Co. Ltd. and its subsidiaries 150501 151182
TCL Microchip Technology (Guangdong) Co. Ltd. and
its subsidiaries 11947 10000
Inner Mongolia Xinhuan Silicon Energy Technology Co.Ltd. 10159 6806
Inner Mongolia Zhongjing Science and Technology
Research Institute Co. Ltd. and its subsidiaries 6271 -
Shenzhen Jucai Supply Chain Technology Co. Ltd. and
its subsidiaries 5026 7196
Inner Mongolia Huanye Material Co. Ltd. and its
subsidiaries 1372 1419
Ningbo Jiutian Matrix Investment Management Co. Ltd.and its subsidiaries 482 -
Huizhou TCL Kaichuang Enterprise Management Co.Ltd. 247 -
Joint ventures and subsidiaries of TCL Industries
Holdings Co. Ltd. 76 25
Huizhou TCL Human Resources Service Co. Ltd. and its
subsidiaries 23 23
Shanghai Chuangxiang Investment Management Co.Ltd. 20 -
Tianjin Huanyan Technology Co. Ltd. 10 10
Shenzhen Qianhai Sailing International Supply Chain
Management Co. Ltd. and its subsidiaries 2 14
Zhonghuan Aineng (Beijing) Technology Co. Ltd. 2 4
186138 176679
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
XI Related Parties and Related-Party Transactions (Continued)
X
4 Amounts due from / to related parties (Continued)
(5) Other payables
June 30 2026 December 31 2025
TCL Industries Holdings Co. Ltd. and its subsidiaries 332089 355955
Shenzhen Jucai Supply Chain Technology Co. Ltd. and its
subsidiaries 215194 119698
Huizhou TCL Human Resources Service Co. Ltd. and its
subsidiaries 104332 105148
Shenzhen Qianhai Sailing International Supply Chain
Management Co. Ltd. and its subsidiaries 81830 208277
Wuxi TCL Venture Capital Partnership (Limited
Partnership) and its subsidiaries 18751 5431
Aijiexu New Electronic Display Glass (Shenzhen) Co. Ltd. 9317 9317
Wuhan Guochuangke Optoelectronic Equipment Co. Ltd. 2990 5450
TCL Microchip Technology (Guangdong) Co. Ltd. and its
subsidiaries 2642 3479
Purplevine Holdings Limited and its subsidiaries 692 500
Ningbo Dongpeng Weichuang Equity Investment
Partnership (Limited Partnership) and its subsidiaries 634 645
Yixing Jiangnan Tianyuan Venture Capital Company
(Limited Partnership) and its subsidiaries 559 577
Joint ventures and subsidiaries of TCL Industries Holdings
Co. Ltd. 517 1000
Nanjing Zijin A Dynamic Investment Partnership (Limited
Partnership) and its subsidiaries 334 345
Inner Mongolia Zhongjing Science and Technology
Research Institute Co. Ltd. and its subsidiaries 55 80
China Innovative Capital Management Limited 43 43
Inner Mongolia Sheng’ou Electromechanical Engineering
Co. Ltd. 12 -
Shenzhen Tixiang Business Management Technology Co.Ltd. and its subsidiaries 5 5
Tianjin Zhonghuan Haihe Intelligent Manufacturing Fund
Partnership (Limited Partnership) - 428100
Thunderbird Innovation Technology (Shenzhen) Co. Ltd.and its subsidiaries - 584
Inner Mongolia Huanye Material Co. Ltd. and its
subsidiaries - 187
Ningbo Dongpeng Heli Equity Investment Partnership
(Limited Partnership) - 33
Tianjin Huanyan Technology Co. Ltd. - 9
769996 1244863
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
XI Related Parties and Related-Party Transactions (Continued)
4 Amounts due from / to related parties (Continued)
(6) Non-current liabilities due within one year
June 30 2026 December 31 2025
TCL Industries Holdings Co. Ltd. and its subsidiaries 17548 20699
17548 20699
(7) Prepayments
June 30 2026 December 31 2025
Shenzhen Qianhai Sailing International Supply Chain
Management Co. Ltd. and its subsidiaries 82720 30214
Inner Mongolia Huanye Material Co. Ltd. and its
subsidiaries 45212 64
TCL Industries Holdings Co. Ltd. and its subsidiaries 10757 4769
Shenzhen Jucai Supply Chain Technology Co. Ltd. and
its subsidiaries 5972 4735
Inner Mongolia Xinhuan Silicon Energy Technology Co.Ltd. 5772 717
Huizhou TCL Human Resources Service Co. Ltd. and its
subsidiaries 2546 2020
Tianjin Huanyan Technology Co. Ltd. 1147 2588
Purplevine Holdings Limited and its subsidiaries 13 -
154139 45107
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
XI Related Parties and Related-Party Transactions (Continued)
4 Amounts due from / to related parties (Continued)
(8) Advances from customers
June 30 2026 December 31 2025
TCL Industries Holdings Co. Ltd. and its subsidiaries 416 404
Shenzhen Qianhai Sailing International Supply Chain
Management Co. Ltd. and its subsidiaries 4 -
420 404
(9) Contract liabilities
June 30 2026 December 31 2025
TCL Industries Holdings Co. Ltd. and its subsidiaries 93667 53277
Shenzhen Qianhai Sailing International Supply Chain
Management Co. Ltd. and its subsidiaries 24026 22392
Joint ventures and subsidiaries of TCL Industries Holdings
Co. Ltd. 6613 97
124306 75766
(10) Lease liabilities
June 30 2026 December 31 2025
TCL Industries Holdings Co. Ltd. and its subsidiaries 25696 31917
25696 31917
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
XI Related Parties and Related-Party Transactions (Continued)
4 Amounts due from / to related parties (Continued)
(11) Deposits from related parties (note)
June 30 2026 December 31 2025
Shenzhen Qianhai Sailing International Supply Chain
Management Co. Ltd. and its subsidiaries 234374 341094
Huizhou TCL Human Resources Service Co. Ltd. and
its subsidiaries 5422 4985
TCL Industries Holdings Co. Ltd. and its subsidiaries - 10334
TCL Microchip Technology (Guangdong) Co. Ltd. and
its subsidiaries - 6848
239796 363261
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 2026 December 31 2025
Purplevine Holdings Limited and its subsidiaries 243339 35333
TCL Industries Holdings Co. Ltd. and its subsidiaries 140150 114830
383489 150163
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
XII Share-based Payments
1 Overall share-based payments (excluding TZE and its subsidiaries)
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 84242000 shares
Total amount of the Company’s equity instruments that expired in the current
period 2621000 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 III) 2021-2023
According to the Proposal on the Management Measures of the Company’s Employee Stock Ownership Plan
(Phase III) 2021-2023 deliberated and adopted at the Second Extraordinary General Meeting of 2023 and the
Proposal on the Company’s Employee Stock Ownership 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 64990000 shares were granted to no more than 3600 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 55640000 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 27210000 shares were released from lock-up restrictions in 2025. Of these shares
26520000 shares were released from lock-up restrictions during January - June 2026.
(2) 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 3600 awardees. Of these shares 57720000 shares were released from
lock-up restrictions during January - June 2026.
(3) Employee Stock Ownership Plan 2025
According to the 11th meeting of the 8th Board of Directors the 7th meeting of the 8th Board of Supervisors
and the 3rd extraordinary general meeting of 2025 the Proposal on the 2025 Employee Stock Ownership Plan of
TCL Technology Group Corporation (Draft) was reviewed and approved. Under this plan the total fund shall
not exceed RMB 920000000 and shall be granted to no more than 3600 eligible participants.
(4) Employee Stock Ownership Plan 2026
Pursuant to the Proposal on the 2026 Medium and Long-term Employee Stock Ownership Plan of TCL
Technology Group Corporation (Draft) and Its Summary as reviewed and approved at the second extraordinary
general meeting of 2026 the total fund for this Employee Stock Ownership Plan shall not exceed RMB
920000000 and shall be granted to no more than 4700 eligible participants.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
XII Share-based Payments (Continued)
1 Overall share-based payments (excluding TZE and its subsidiaries) (Continued)
(a) Equity-settled share-based payments
Method of determining the fair value of The Group determined the fair value of equity
equity instruments on the date of grant instruments on the grant date based on the fair value ofthe shares.On each balance sheet date within the vesting period the
Basis for determining the number of Group determines the best estimate based on the latest
exercisable equity instruments number of employees eligible to exercise their optionsand revise the estimated number of exercisable equity
instruments.Reasons for significant differences
between current and previous estimates None
Accumulated amount of equity-settled
share-based payment included in capital RMB 475090000
reserves
Total expense recognized for equity-settled
share-based payments in the current period RMB 287722000
(b) The Company has no cash-settled share-based payments.(c) The Company has no share-based payment modification or termination.
2 Payment of Tianjin Printronics for shares in current period
(a) Overview of 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 1277000 shares
Total amount of the Company’s equity instruments that expired in the current
period -
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 -
(b) Equity-settled share-based payments
Method of determining the fair value of equity In accordance with the relevant provisions of
instruments on the date of grant Accounting Standards for Business Enterprises No. 11
– Share-based Payment and Accounting Standards for
Business Enterprises No. 22 – Financial Instruments:
Recognition and Measurement the Company has
adopted the Black-Scholes model to determine the fair
value of equity instruments.Key parameters of the fair value of equity Historical volatility risk-free interest rate and
instruments on the grant date dividend yield
Basis for determining the number of exercisable Estimated based on the performance conditions for
equity instruments each vesting period and the assessment results of the
grantees.Reasons for significant differences between
current and previous estimates None
Accumulated amount of equity-settled share-
based payment included in capital reserves RMB 2713000
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
Total expense recognized for equity-settled
share-based payments in the current period RMB 429000
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
XIII Commitments and Contingencies
1 Significant commitments
Capital commitments
June 30 2026
Contracted but not provisioned Note 1 15800305
Approved by the Board but not contracted Note 2 12968364
28768669
Note 1 The capital commitments under contractual obligations but not provided for in the current period primarily
consisted of such commitments for construction of investment projects and external investments.Note 2 The capital commitments approved by the Board of Directors but not under contractual obligations in the
current period primarily consist of such commitments for display business projects.As of June 30 2026 apart from the disclosures above there were no other major commitments that are
required to be disclosed.
2 Contingencies
As of June 30 2026 the Company had no material contingent events requiring disclosure.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
XIV Events after the Balance Sheet Date
1 The Company plans to acquire the 45.00% equity interest (“the Transaction”) in Guangzhou China Star
Optoelectronics Bandaoti Display Technology Co. Ltd. held in aggregate by Guangdong Hengjian
Investment Holding Co. Ltd. Guangzhou Chengfa Xingguang Investment Partnership (Limited
Partnership) and Science City (Guangzhou) Investment Group by way of share issuances and cash
payments. Following the completion of the Transaction the Group’s total equity interest in Guangzhou
China Star Optoelectronics Bandaoti Display Technology Co. Ltd. increased from 55% to 100%. On
August 19 2026 the Company received the Reply on Approving the Registration of TCL Technology
Group Corporation’s Asset Purchase via Share Issuance (CSRC Permit [2026] No. 2116) issued by the
China Securities Regulatory Commission. As of the date of disclosure of this report the underlying asset has
been registered and transferred to the name of the Company while the newly issued shares have not yet
been listed.
2 In August 2026 the Group issued RMB 2.0 billion in aggregate of the 2026 Public Issuance of Sci-Tech
Innovation Corporate Bonds (Digital Economy) (Phase II) (the "Current Bonds") to professional investors.Tranche 1 of the Current Bonds has a tenor of 3 years with an issuance size of RMB 1.0 billion and a
coupon rate of 1.85%; Tranche 2 has a tenor of 5 years with an issuance size of RMB 1.0 billion and a
coupon rate of 2.10%. The issue price is RMB 100 per note.
3 On July 2 2026 TZE completed the acquisition of DAS Solar. All conditions precedent to closing
stipulated in the transaction documents executed by the parties have been satisfied or waived and the equity
closing was completed on the same date. The relevant proxy voting rights arrangement also took effect
concurrently with the closing. Starting from the third quarter of 2026 the Company will consolidate DAS
Solar into its consolidated financial statements.TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
XV Other Important Matters
(I) Segment reporting
1 Basis for determining reporting segment and accounting policies
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:
(1) Display business mainly includes the research and development manufacturing and sales of display panels anddisplay modules as well as complete display processing.
(2) New energy photovoltaics and other silicon materials business: mainly includesthe R&D production and sales 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 2026
(RMB’000)
XV Other Important Matters (Continued)
(I) Segment reporting (Continued)
2 Financial information of reporting segments
For the six-month period ending June 30 2026
New energy Other
Display photovoltaics and Distribution businesses and
Total
business other silicon business internally offset
materials business accounts
Operating revenue 56499787 14314940 17823270 10190 88648187
Net profits 4099136 (3457279) 103218 1498191 2243266
Total assets 194005508 112762644 8541435 49835382 365144969
Total liabilities 117449814 77973301 6758168 35344111 237525394
Depreciation and
amortization 11122524 4724988 26088 65041 15938641
expenses
Capital expenditure 7297732 2618614 737 892855 10809938
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 57550503 13398123 14674516 (63138) 85560004
Net profits 4613425 (4836171) 67956 186473 31683
Total assets 220928986 124816914 8138505 46585058 400469463
Total liabilities 140268533 83049766 6512614 41296393 271127306
Depreciation and
amortization 11641845 4407930 23168 9460 16082403
expenses
Capital expenditure 4764762 3295997 1606 251608 8313973
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
XVI Notes to the key items presented in the financial statements of the Company
1 Accounts receivable
June 30 2026 December 31 2025
Amount Ratio Bad-debt AccrualAllowance Ratio Amount Ratio
Bad-debt Accrual
Allowance Ratio
Within 1
year 56424 98.07% 6 0.01% 207984 99.42% 6 0.00%
1 to 2 years 1113 1.93% - - 1218 0.58% - -
57537 100% 6 0.00% 209202 100% 6 0.00%
2 Other receivables
June 30 2026 December 31 2025
Dividends receivable 50000 -
Other receivables 14403878 9613847
14453878 9613847
(1) Dividends receivable
June 30 2026 December 31 2025
Shenzhen Dongxi Jiashang
Entrepreneurship Investment Co. Ltd. 50000 -
50000 -
(2) Other receivables
(a) Nature of other receivables is analyzed as follows:
June 30 2026 December 31 2025
Equity transfer receivables 4925128 610
Security and deposits 2464 2474
Others 9476286 9610763
14403878 9613847
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
XVI Notes to Financial Statements of the Parent Company (Continued)
2 Other receivables (Continued)
(b) Allowance for doubtful other receivables is analyzed as follows:
Lifetime ECL
12-month ECL (credit not Lifetime ECL
impaired) (credit impaired)
Total
December 31 2025 1462 38685 40147
Reversal of current
period (1) - - (1)
June 30 2026 1461 - 38685 40146
(c) The aging of other receivables is analyzed as follows:
June 30 2026 December 31 2025
Amount Ratio Amount Ratio
Within 1 year 11404788 78.96% 7371233 76.35%
1 to 2 years 2026054 14.03% 1491285 15.45%
2 to 3 years 862319 5.97% 665173 6.89%
Over 3 years 150863 1.04% 126303 1.31%
14444024 100% 9653994 100%
The outstanding other receivables were mostly current accounts with related parties.The top five other receivables of the Company amounted to approximately RMB 13001202000 (December
31 2025: RMB 8792957000) accounting for 90.01% of the total other receivables of the Company
(December 31 2025: 91.08%).
3 Long-term equity investments
June 30 2026 December 31 2025
Gross Impairment Carrying Gross Impairment Carrying
amount allowance amount amount allowance amount
Associates and joint
ventures (1) 18008296 - 18008296 17029558 - 17029558
Subsidiaries (2) 70136712 - 70136712 78289037 - 78289037
88145008 - 88145008 95318595 - 95318595
As at June 30 2026 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 2026
(RMB’000)
XVI Notes to Financial Statements of the Parent Company (Continued)
3 Long-term equity investments (Continued)
(1) Associates and joint ventures
Increase or decrease in current period
December 31 Increase/decrease Investment gains and Other
2025 in investment in losses recognized by comprehensive
Other equity Declared cash dividends or June 30 2026
current period equity method income adjustment changes profits
Joint
venture 231430 - (12737) - 493 (4029) 215157
Associate 16798128 141503 1062467 28383 (7794) (229548) 17793139
Total 17029558 141503 1049730 28383 (7301) (233577) 18008296
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
XVI Notes to Financial Statements of the Parent Company (Continued)
3 Long-term equity investments (Continued)
(2) Subsidiary
December 31 Increase in Decrease in
2025 current period current June 30 2026period
TCL China Star Optoelectronics -
Technology Co. Ltd. 35686719 268400 35955119
TCL Technology Group (Tianjin) Co.Ltd. 16200000 - - 16200000
Shenzhen China Star Optoelectronics
Bandaoti Display Technology Co. Ltd. 11562093 - (11562093) -
TCL Technology Investments Limited 3465562 - - 3465562
Tianjin Silica Material Technology Co.Ltd. 2800000 - - 2800000
Headquarters of TCL Zhonghuan
Renewable Energy Technology Co. 1929733 - - 1929733
Ltd.Headquarters of Zhonghuan Advanced
Bandaoti Technology Co. Ltd. 1790312 844947 - 2635259
TCL Technology Group Finance Co.Ltd. 1256003 - - 1256003
Others 3598615 2795393 (498972) 5895036
78289037 3908740 (12061065) 70136712
For the registered capital of subsidiaries and the Company’s equity interests in the subsidiaries see Note VIII.
4 Other non-current financial assets
June 30 2026 December 31 2025
Equity investments 797684 398546
5 Operating revenue and operating cost
January - June 2026 January - June 2025
Operating revenue Operating cost Operating revenue Operating cost
Core business 10038 - 10227 2288
Non-core business 201149 80518 176239 89824
211187 80518 186466 92112
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
XVI Notes to Financial Statements of the Parent Company (Continued)
6 Return on investment
January - June January - June
2026 2025
Share of return on investment in joint ventures and associates 1049730 865987
Net income from disposal of long-term investments 528761 -
Return on holding of held-for-trading financial assets 35035 82655
Return on disposal of held-for-trading financial assets 14736 (2133)
Dividends from subsidiaries 1456911 327893
3085173 1274402
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2026
(RMB’000)
XVII Supplementary Information
1. Details of non-recurring gains and losses for the period
January - June 2026 January - June 2025
Gain or loss on disposal of non-current assets (inclusive of
impairment allowance write-offs) 532068 (20061)
Public grants charged to current profits and losses (except for
public grants that are closely related to the Company's daily
operations comply with national policies are granted based on 1225850 633215
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 (59) 18446
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 - 27616
Non-operating income and expenses other than the above 162932 126891
Income tax effects (288122) (84754)
Non-controlling interests effects (964278) (376588)
Non-recurring gains and losses attributable to ordinary
shareholders of the parent company 668391 324765
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)(Z.J.H.G.G. [2023]
No.65) 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 2026
(RMB’000)
XVII Supplementary Information (Continued)
2. 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
attributable to the Weighted
Earnings per share (RMB: yuan)
Item parent company averagereturn on Basic earnings Diluted earningsduring the per share per share
Reporting Period equity
Net profits attributable to ordinary
shareholders of the Company 3808272 6.19% 0.1861 0.1831
Net profits attributable to ordinary
shareholders of the Company after
non-recurring gains and losses 3139881 5.11% 0.1534 0.1509
Company Name: TCL Technology Group Corporation
Date: August 27 2026
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