TCL科技:2025年年度报告（英文版）

Full Text of the Annual Report 2025 of TCL Technology Group Corporation

TCL科技集团股份有限公司

TCL Technology Group Corporation

ANNUAL REPORT 2025

March 2026

1Full Text of the Annual Report 2025 of TCL Technology Group Corporation

Seizing Development Opportunities in a Dynamic Landscape

ANNUAL REPORT 2025 Chairman's Statement

2025 saw accelerated restructuring of the global economic landscape. Trade protectionism

has continued to intensify and geopolitical competition has profoundly disrupted the layout of

global industrial chains. Meanwhile a new round of technological revolution—spearheaded by

artificial intelligence—is reshaping industrial logic and competitive paradigms with

unprecedented reach and complexity. Against this challenging external environment the

Company has always anchored itself to the strategic goal of "Global Leadership" focusing on the

three core business pillars—displays new energy photovoltaics and other silicon materials. Our

operating revenue achieved RMB 184.06 billion representing an increase of 11.7% YoY; net

profit attributable to shareholders of the listed company reached RMB 4.52 billion up 188.8%

YoY; and net cash flow from operating activities amounted to RMB 44.02 billion up 49.1% YoY

indicating the steady growth of our operating efficiency and ongoing enhancement of our core

competitiveness.TCL CSOT's display business delivered high-quality growth with significantly improved

profitability. During the Reporting Period TCL CSOT recorded revenue of RMB 105.24 billion

and net profit of RMB 8.01 billion. The Company further consolidated its competitive advantages

in large-size TV and commercial displays. The Company's market share in medium-size LCD

products—including notebooks tablets automotive displays and professional displays—rose

notably achieving breakthroughs in both scale and profitability. Small-size products were

strategically positioned in the mid-to-high-end market with operational performance improving at

an accelerated pace. Meanwhile the Company actively expanded its M-LED business. During the

same period TCL CSOT further strengthened the integration and deployment of its core assets.The Generation 8.6 t9 factory achieved full-capacity production; the acquisition of LGD

Guangzhou’s Generation 8.5 factory (t11) was completed. The Company also acquired minority

stakes in the Generation 11 t6 and t7 projects held by Shenzhen state-owned capital thereby

boosting profitability. In addition the Generation 5.5 printed OLED line (t12) was expanded to

support mass production and delivery while construction kicked off for the Generation 8.6

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printed OLED production line (t8). The investment in industrial ecosystem projects laid the

foundation for sustainable development. The Company believes that as the global display industry

landscape undergoes restructuring Chinese enterprises have solidified their advantages in the

LCD sector. Looking ahead competition in the industry will focus on new display technologies

and materials such as OLED and M-LED. Through continuous technological innovation to

enhance the competitiveness of its LCD products TCL CSOT has consolidated its leading

advantages in large-size displays and strengthened its competitiveness in medium and small-size

panels thus forming a relative competitive edge in the LCD sector. Meanwhile the Company has

built differentiated competitiveness in printed OLED. Moving forward TCL CSOT is committed

to striving for a leading position in the global display industry.Moka Technology strengthened business synergy with TCL CSOT further consolidating its

leading position in the global TV ODM sector with a market share of 14.5%. It continued to

expand its monitor ODM business increasing its market share to 7.9% and establishing a second

growth curve. Meanwhile the Company actively advanced the development of its commercial

display business. The annual revenue reached RMB 21.73 billion up 5.9%.The Chinese photovoltaic industry continues to grapple with intense "involutionary"

competition as product prices remain under persistent downward pressure posing significant

operational challenges for the entire industry. During the Reporting Period TZE’s photovoltaic

business recorded revenue of RMB 22.725 billion representing a YoY decrease of 0.28% with

revenue stabilizing in the second half of the year. During the Reporting Period TZE made every

effort to consolidate the competitiveness of its crystal and wafer production accelerate the

development of its cell and module business improve its industrial chain layout actively expand

its global presence and enhance operating performance. Guided by the strategy of "Resolving

Crises Through Development and Seeking Opportunities in Overcoming Difficulties" TZE

pursued mergers and acquisitions to strengthen its capabilities and enhance industrial chain

competitiveness. The Company believes that the global energy transition toward clean energy will

continue to drive growth in overseas photovoltaic markets while technological progress will

generate new market demand. We are confident in continuously improving our relative

competitiveness during the industry downward optimizing our industrial layout achieving

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restorative growth this year and improving our operating performance.During the Reporting Period Zhonghuan Advanced remained committed to its "Lead at

Home Compete Globally" development strategy. Its silicon materials business generated an

operating revenue of RMB 5.71 billion a year-on-year increase of 21.7%. Leveraging

industry-leading operational efficiency and performance the business ranked first in China by

revenue. Zhonghuan Advanced's business covers major domestic customers and its

comprehensive competitiveness is at the forefront of the industry while it is actively expanding

overseas. The Company will seize opportunities from China's industry's high-quality development

continue to expand our business scale optimize product mix improve process and technical

capabilities increase basic R&D investment enhance AI and digital operating systems and

achieve high-quality development.During the Reporting Period Tianjin Printronics Circuit and Highly maintained stable

operations across their core businesses while their financial and investment segments continued

to generate steady earnings.Technological innovation is the fundamental strategic support for the Company to cope with

uncertainties and build long-term competitive advantages. During the Reporting Period the

Company invested RMB 9.54 billion in R&D and filed 3327 new invention patent applications

including 221 PCT applications with both the quantity and quality of patents improved. The

Company independently developed the "X-Intelligence" large model for the display industry

deeply integrating artificial intelligence into intelligent manufacturing process optimization and

R&D processes laying a solid foundation for operational efficiency improvement and product

competitiveness. The Company will continue to advance the digitalization of the photovoltaic

industry and introduce AI applications to enhance our competitiveness. The Company will also

continuously explore breakthroughs in frontier technologies while strengthening our basic

research and elevate artificial intelligence to a strategic priority thus fully empowering product

innovation intelligent manufacturing and global operations and enhancing our sustainable

development capabilities.Looking ahead to 2026 the Company will continue to anchor itself on the goal of "Global

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Leadership" and uphold the business philosophy of "Strategic Guidance Innovation-Driven

Advanced Manufacturing and Global Operations". We will consolidate and further enhance the

competitive advantages of our display business to drive overall performance. Meanwhile we will

support TZE in strengthening its capabilities and addressing gaps in its photovoltaic business to

improve operating results. We will also back the accelerated development of Zhonghuan

Advanced’s silicon material business while ensuring steady growth across our remaining

business segments. The Company is confident in continuing to achieve overall performance

growth this year.The Company remains committed to delivering shareholder value through steady dividend

distribution. For 2025 the Board of Directors has proposed a cash dividend of RMB 0.90 per 10

shares enabling all shareholders to share in the Company's value growth. We are sincerely

grateful for the long-term trust and support of all shareholders! Our heartfelt gratitude goes to all

our partners for working with us! We extend our deepest thanks to all the employees for their

diligent efforts!

March 26 2026

5Full Text of the Annual Report 2025 of TCL Technology Group Corporation

Part 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 Report and its summary and shall be

jointly and severally liable for any misrepresentations misleading statements or material

omissions therein.Mr. Li Dongsheng the Chairman of the Board Ms. Li Jian the person-in-charge of financial

affairs (Chief Financial Officer) and Ms. Jing Chunmei the person-in-charge of the financial

department hereby guarantee that the financial statements carried in this Report are factual

accurate and complete.All the Company’s directors attended the Board meeting for the review of this Report 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.Investors and related persons shall maintain sufficient awareness of risks and understand the

differences between plans forecasts and commitments. Therefore investors are kindly reminded

to pay attention to possible investment risks.The profit distribution plan approved by the meeting of the Board of Directors is as follows:

For every 10 shares held shareholders will receive a cash dividend of RMB 0.9 (including tax)

based on the total share capital of 20800862447 shares without bonus shares or shares

converted from capital reserve.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.

6Full Text of the Annual Report 2025 of TCL Technology Group Corporation

Table of Contents

ANNUAL REPORT 2025 Chairman's Statement ............. 2

Part I Important Notes Table of Contents and Defin....6

Part II Corporate Information and Key Financial In.. 10

Part III Management Discussion and Analysis .........15

Part IV Corporate Governance Environment and Socia.. 46

Part V Significant Events .......................... 72

Part VI Changes in Shares and Information about Sh.. 93

Part VII Bonds .....................................102

Part VIII Financial Report......................... 112

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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 original of the auditor's report with the seal of the accounting firm and signed and

stamped by CPAs.(III) The originals of all company documents and announcements that were disclosed to the

public during the Reporting Period.

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Definitions

Term Refers to Definition

The "Company" the "Group"

Refers to TCL Technology Group Corporation

"TCL TECH." "TCL" or "we"

The "Reporting Period" "current

Refers to The period from January 1 2025 to December 31 2025.period"

TCL CSOT Refers to TCL China Star Optoelectronics Technology Co. Ltd.TCL Zhonghuan Renewable Energy Technology Co. Ltd. a majority-owned

TZE Refers to subsidiary of the Company listed on the Shenzhen Stock Exchange (stock code:

002129.SZ)

Zhonghuan Advanced Refers to Zhonghuan Advanced Bandaoti Technology Co. Ltd.Moka Technology Refers to Moka International Limited

Tianjin Printronics Circuit Corporation a majority-owned subsidiary of the

TPC Refers to

Company listed on the Shenzhen Stock Exchange (stock code: 002134.SZ)

Highly Information Industry Co. Ltd. a holding subsidiary of the Company listed

Highly Refers to

on the National Equities Exchange and Quotations

t1 Refers to The generation 8.5 (or G8.5) TFT-LCD production line at TCL CSOT

t2 Refers to The generation 8.5 (or G8.5) TFT-LCD (oxide) production line at TCL CSOT

t3 Refers to The generation 6 (or G6) LTPS-LCD panel production line at Wuhan CSOT

The generation 6 (or G6) flexible LTPS-AMOLED panel production line at

t4 Refers to

Wuhan CSOT Bandaoti

t5 Refers to The generation 6 (or G6) new display production line at Wuhan CSOT

The generation 11 (or G11) new TFT-LCD display production line at Shenzhen

t6 Refers to

CSOT Bandaoti

The generation 11 (or G11) new ultra high definition display production line at

t7 Refers to

Shenzhen CSOT Bandaoti

t8 Refers to The generation 8.6 (or G8.6) printed OLED production line at TCL CSOT

The generation 8.6 (or G8.6) new oxide display production line at Guangzhou

t9 Refers to

CSOT

t10 Refers to The generation 8.5 (or G8.5) TFT-LCD production line at Suzhou CSOT

t11 Refers to The generation 8.5 (or G8.5) TFT-LCD production line at Guangzhou CSOT

t12 Refers to The generation 5.5 (or G5.5) printed OLED production line at Wuhan CSOT

CSRC Refers to The China Securities Regulatory Commission

SZSE Refers to Shenzhen Stock Exchange

RMB Refers to Renminbi

9Full Text of the Annual Report 2025 of TCL Technology Group Corporation

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. TCL科技

Company name in English (if any) TCL Technology Group Corporation

Abbr. in English (if any) TCL TECH.Legal representative Li Dongsheng

TCL TECH. Building 17 Huifeng Third Road Zhongkai Hi-Tech

Place of registration

Development District Huizhou City Guangdong Province.Zip code 516001

Historical changes in the Company's place of

registration

TCL TECH. Building 17 Huifeng Third Road Zhongkai Hi-Tech

Office address

Development District Huizhou City Guangdong Province.Zip code 516001

Company website https://www.tcltech.com/

Email address ir@tcl.com

II. Contact Information

Board Secretary

Name Liao Qian

10/F Tower G1 International E Town TCL Science Park 1001 Nanshan

Office address

District Shenzhen Guangdong Province China

Tel. 0755-33311666

Email address ir@tcl.com

III. Media for Information Disclosure and Place Where This Report is Lodged

Stock exchange website for publication of this Report Shenzhen Stock Exchange http://www.szse.cn

Securities Times China Securities Journal Shanghai Securities News

Media and website for publication of this Report Securities Daily as well as www.cninfo.com.cn

(http://www.cninfo.com.cn)

Place where this Report is lodged Capital Market Department of TCL Technology Group Corporation

IV. Changes to Company Registered Information

Unified Social Credit Code 91441300195971850Y

1. In 2019 the Company focused on display devices by selling smart

Changes in main business activities of the Company terminal businesses such as consumer electronics and household

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since going public appliances and related supporting businesses.

2. In 2020 the Company acquired 100% equity of Tianjin Zhonghuan

Electronics through public delisting shaping a business structure that

focused on display and new energy photovoltaics.Changes of controlling shareholder since incorporation Not applicable

V. Other Information

The independent audit firm hired by the Company

Name RSM China (LLP)

Suite 1001-1 to 1001-26 10th floor Building 1 No. 22

Office address

Fuchengmenwai St Xicheng Dist. Beijing China

Name of signing accountants Chen Zefeng Xiao Mengying Chen Zhihao

The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period

□Applicable ?Not applicable

The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting

Period

?Applicable □Not applicable

Office address of financial Name of sponsors of financial Continuous supervision

Name of financial consultant

consultant consultant period

75th Floor North Tower

Shenwan Hongyuan Ping An Finance Center 5033 Ren Cheng Mo Kai Huang The period from July 1 2025

Financing Services Co. Ltd. Yitian Road Futian District Simin to December 31 2026.Shenzhen

VI. Key Accounting Data and Financial Indicators

Indicate whether there is any retrospectively adjusted or restated datum in the table below

□Yes ?No

2025 2024 2025-Over-2024 Change 2023

Operating revenue 184063390556 164822832863 11.67% 174366657015

(RMB)

Net profits attributable

to the company’s 4516783411 1564109407 188.78% 2214935302

shareholders (RMB)

Net profits attributable

to the company's

shareholders after 2896878481 298355801 870.95% 1021080065

non-recurring gains and

losses (RMB)

Net cash generated from

operating activities 44021698580 29526569404 49.09% 25314756105

(RMB)

Basic earnings per share 0.2333 0.0842 177.08% 0.1195

(RMB/share)

Diluted earnings per 0.2301 0.0833 176.23% 0.1179

share (RMB/share)

Weighted average return 7.98 2.95 Increased by 5.03 4.27

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on equity (%) percentage points YoY

The end of 2025 The end of 2024 Change The end of 2023

Total assets (RMB) 372738314312 378251915923 -1.46% 382859086727

Net assets attributable to

shareholders of the listed 61432756524 53167609357 15.55% 52921867086

company (RMB)

The net profit before or after the deduction of non-recurring gains and losses in the latest three accounting years whichever is

lower is negative and the audit report of the latest year shows the Company's ability to continue as a going concern

□Yes ?No

The lowest value among the Company’s audited gross profit net profit and net profit after deducting non-recurring gains and

losses during the Reporting Period is negative

□Yes ?No

The total share capital at the end of the last trading session before the disclosure of this Report:

Total share capital at the end of the last trading session before

20800862447

the disclosure of this Report (share)

Fully diluted earnings per share based on the latest total share capital above:

Fully diluted earnings per share based on the latest total share

0.2171

capital above (RMB/share)

VII. Accounting Data Differences under China Accounting Standards for Business

Enterprises (CAS) and 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 International

Accounting Standards (IAS) and Chinese Accounting Standards (CAS) for the Reporting Period of the Company.

2. Differences in Net Profits and Equity under CAS and Foreign Accounting Standards

□Applicable ?Not applicable

There is no difference in net profits and net assets between the financial statements prepared in accordance with foreign

accounting standards and Chinese Accounting Standards (CAS) for the Reporting Period of the Company.

3. Reasons for Accounting Data Differences Above

□Applicable ?Not applicable

VIII. Major Financial Indicators by Quarter

Unit: RMB

Q1 Q2 Q3 Q4

Operating revenue 40075565888 45484438609 50383422256 48119963803

Net profits attributable 1012576836 870922616 1163292951 1469991008

to the company's

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shareholders (RMB)

Net profits attributable

to the company's

shareholders after 957668832 601066616 870128672 468014361

non-recurring gains

and losses

Net cash generated

from operating 12074907584 15199073810 6562620750 10185096436

activities

Indicate whether any of the quarterly financial data in the table above or their summations differs materially from what has been

disclosed in the Company's quarterly or interim reports.□Yes ?No

IX. Non-Recurring Gains and Losses

?Applicable □Not applicable

Unit: RMB

Item 2025 2024 2023

Gains and losses on disposal of non-current

assets (inclusive of impairment allowance -62540776 143159409 275255225

write-offs)

Public grants charged to current gains and

losses (except for public grants that are closely

related to the Company's daily operations

comply with national policies are granted 2226112201 2614019013 2764042905

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 17504455 4832618 -114258710

disposal of such financial assets and financial

liabilities except for the effective hedging

business related to the company’s normal

business operations

Reversal of provision for impairment of

receivables that have been individually tested 27831364 62761876 22894255

for impairment

Non-operating income and expenses other than 591663170 857484211 228994235

the above

Less: Amount affected by income tax 357989915 507096990 603197886

Amount affected by equity of minority 822675569 1909406531 1379874787

shareholders (net of tax)

Total 1619904930 1265753606 1193855237

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

13Full Text of the Annual Report 2025 of TCL Technology Group Corporation

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.

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Part III Management Discussion and Analysis

I. Overall Operations Performance of the Company During the Reporting Period

In 2025 frequent international geopolitical conflicts a significant rise in trade protectionism

and overseas tariff policies triggered the restructuring of the global supply chain. Trends of

deglobalization regionalization and localization of the global economy took shape exerting a

considerable impact on the development of China's manufacturing industry. 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 all-round growth in revenue profit and

operating cash flow. Operating revenue amounted to RMB 184.06 billion representing a

year-on-year increase of 11.7%. Net profit attributable to shareholders reached RMB 4.52 billion

representing a 188.8% increase year-on-year while operations cash flow rose 49.1% year-on-year

to RMB 44.02 billion. As of the end of the Reporting Period the Company’s debt-to-asset ratio

stood at 64.2% a decrease of 0.7 percentage points from the end of the previous reporting period;

cash and cash equivalents at the end of the Reporting Period were RMB 50.57 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

In 2025 the global displays industry accelerated its transformation from scale competition to

value-driven development with profound adjustments to industry development logic. On the

demand side supported by consumer subsidy policies and the trend toward larger product sizes

demands relating to display area grew steadily while emerging applications such as automotive

and professional displays saw notable acceleration. On the supply side the industry landscape

continued to optimize. With the whole supply chain committed to demand-based production

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supply-demand dynamics moved toward balance key product prices stayed resilient a profit

recovery mechanism took shape and the industry officially entered a new phase of high-quality

development.During the Reporting Period TCL CSOT anchored its strategic goal of "Global Leadership"

focused on enhancing commercial value and promoted significant improvement in operations

quality. For the full year TCL CSOT achieved an operating revenue of RMB 105.24 billion an

increase of 17.4% YoY; net profit was RMB 8.01 billion up 44.4% YoY; and net profit

attributable to shareholders of TCL TECH. was RMB 5.36 billion an increase of 54.4% YoY.Leveraging its global footprint supply chain resilience refined operations capabilities and

continuously optimized product mix TCL CSOT has successfully achieved a strategic

transformation from "scale expansion" to "value creation" further enhancing its overall

operations quality and cycle-resilience capability.

(1) Multiple Breakthroughs Across Business Segments Diversified Development Pattern

Continuously Consolidated

During the Reporting Period the Company's core businesses demonstrated a development

trend of "steady progress in the large-sized segment rapid growth in the small- and medium-sized

segment and comprehensive blossoming in emerging applications" with competitiveness across

all business segments continuing to improve. In the large-sized display field TV and commercial

display businesses maintained sound development with comprehensive competitiveness and

profitability firmly ranked at global leading levels further consolidating its position as an industry

leader. In the small and medium-sized display segment all product lines achieved rapid growth

with both market share and core competitiveness enhanced simultaneously. Among these monitor

panel shipments increased by 17% year-on-year with the overall global market share ranking

second while the market share for gaming monitors remained first globally. Laptop panel

shipments surged 64% year-on-year leading the industry in growth rate. Mobile phone panel

shipments rose 29% year-on-year with global market share climbing to third. High-end OLED

product shipments saw substantial growth and wearable products achieved large-scale mass

production. The tablet business experienced leapfrog growth with its global market share

jumping to second. In emerging application fields business development showed a diversified

growth trend. The automotive display shipment area increased 61% year-on-year and the market

share rose to 11%. Professional display business maintained rapid growth with products widely

used in education medical care e-paper smart projection and other application scenarios.

(2) In-Depth Integration of Strategic Assets Industrial Leading Position Continuously

Strengthened

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During the Reporting Period TCL CSOT accurately seized strategic opportunities in

industrial integration and capacity upgrades continuously deepened its core asset integration and

coordinated capacity layout and further strengthened its core competitiveness in the industry.Following the successful acquisition and integration of the former LG Display (China) Co. Ltd.(t11) assets the Company quickly realized large-scale mass production of monitor products. The

second phase of the Guangzhou t9 project was fully commissioned further optimizing the

Company’s medium and large-size LCD capacity layout enabling coordinated capacity

complementarity and technology integration and effectively advancing industry supply-side

structural improvement. The strategic acquisition of minority stakes in the G11 production lines

(t6 t7) was completed strengthening core asset control and resource allocation efficiency. This

move optimized the asset structure boosted contributions to net profit attributable to shareholders

of the parent company and provided a more robust operations basis for the Company to mitigate

industry cycle volatility.

(3) Achieving Industrialization on Two Strategic Tracks Through Continuous Core

Technology Breakthroughs

During the Reporting Period TCL CSOT intensified its layout in cutting-edge technologies

focused on advancing the industrialization of its two strategic tracks — printed OLED and MLED

— and consolidated its long-term technological competitive edge. During the Reporting Period in

the field of printed OLED the world’s first high-generation (G8.6) printed OLED production line

(the t8 project) officially broke ground in Guangzhou marking a milestone for the Company in

advancing next-generation display technologies. The mass production expertise accumulated

through the Wuhan G5.5 production line (t12) has laid a solid foundation for the subsequent

ramp-up of the t8 project while accelerating the market adoption of printed OLED in

mid-to-high-end display applications. In the MLED sector the Company achieved mass

production of Mini LED P1.2 COB products establishing a complete chain spanning laboratory

R&D to large?scale manufacturing. It acquired a controlling stake in Fujian Zhaoyuan

Optoelectronics (now renamed Huazhao Optoelectronics) realizing vertical integration of the

industrial chain covering LED epitaxial wafers chips and terminal modules. This has further

enhanced industrial collaboration efficiency and core technological self?sufficiency while

unlocking new innovation potential across optoelectronic application fields.

(4) Deepening Digital and Intelligent Transformation to Empower the Entire Value Chain

with AI

TCL CSOT accelerated the deep integration of AI technology across R&D manufacturing

supply chain and operations steadily strengthening its end-to-end value creation capabilities.During the Reporting Period the Company launched "X-Intelligence 3.0" the first powerful

17Full Text of the Annual Report 2025 of TCL Technology Group Corporation

reasoning vertical large model in the global display field ranked 11th in the 2025 Global

Industrial Large Model List and first in the display field. To date the model has been

implemented in product development boosting product issue analysis efficiency by 20% and

material development efficiency by 30%. Looking ahead TCL CSOT will further expand the

application scope of AI technologies establish a leading edge manufacturing systems centered on

"data-driven operations plus intelligent decision-making" and build an industry-leading "AI

Factory".

(5) Continuous Improvement of Global Operations Coordinated Enhancement of Overseas

Business and Sustainable Development

TCL CSOT continuously improved its global industrial layout built a resilient supply chain

system and achieved steady growth in overseas business. During the Reporting Period supported

by local tax reforms and the trend toward larger-sized panels in the Indian market the sales

volume of large-sized TV products doubled. The newly built module factory in Vietnam

successfully passed key customer audits enabling IT products to enter mass production and

volume shipment thereby further enhancing the Company's overseas delivery capacity and

customer service capabilities. On the sustainability front TCL CSOT made steady progress in

building its ESG management system earning several internationally recognized certifications.These included a "Gold" rating from EcoVadis "A-/A" ratings from CDP for Climate Change and

Water Security and—for its Suzhou base—AWS Gold Level certification making it the first

company in China's display industry to achieve this recognition under the International Water

Stewardship Standard.

(6) Future Development Outlook

Facing the dual development opportunities from the cycle restructuring of the global display

industry and the iteration of display technologies TCL CSOT will continue to anchor the strategic

goal of "Global Leadership" focus on enhancing commercial value consistently implement the

business philosophy of "Strategic Guidance Innovation-Driven Leading Edge Manufacturing

and Global Operations" and steadily improve the quality and profitability of operations.Meanwhile the Company will collaborate with upstream and downstream partners to build a safe

efficient and mutually beneficial industrial ecosystem strengthen its long-term core

competitiveness and deliver sustainable and stable value for shareholders and investors.

2. Moka Technology

Moka Technology strengthened business synergy with TCL CSOT specializing in the ODM

business for intelligent display terminal products such as TVs monitors and commercial displays

18Full Text of the Annual Report 2025 of TCL Technology Group Corporation

and is the world's largest TV ODM manufacturer. In 2025 Moka Technology achieved operations

revenue of RMB 21.73 billion a year-on-year increase of 5.9%. Among these the TV ODM

business ranked first globally for three consecutive years with its market share rising by 0.9

percentage points year-on-year to 14.5% in 2025 further expanding its scale-leading advantage.The monitor ODM business grew rapidly—shipment volume rose 26% YoY and market share

increased 1.5 percentage points to 7.9% securing a global rank of fifth and creating a second

growth curve. MoKa Technology meanwhile actively pursued opportunities in the commercial

display business.(II) New Energy Photovoltaics Business

During the Reporting Period the supply-demand imbalance in the photovoltaic industry

persisted. Rush installations in the terminal market led to periodic demand fluctuations.Anti-involution efforts drove up silicon material and wafer prices in the third quarter; however

sluggish demand and insufficient price transmission continued. New scenarios and applications

failed to substantially improve supply-demand dynamics resulting in intensified operations

pressure in the fourth quarter. In the face of challenges the Company maintained its strategic

resolve addressed business shortcomings and continued to advance organizational reform and

operations efficiency thereby reshaping its relative competitiveness. In 2025 the new energy

photovoltaic business of TZE achieved operating revenue of RMB 22.73 billion.The Company's new energy photovoltaic business actively tracked industry trends adopted a

market-driven demand-based production model helped restore the supply-demand balance and

promoted the healthy development of the industry. During the Reporting Period the Company

accelerated the implementation of the moderate integration and globalization strategies. This

approach was designed to solidify our competitive edge in crystal and wafer production bolster

our capabilities in cells and modules expand our overseas market presence and ultimately

enhance profitability. The Company continued to pursue technological innovation while

enhancing its intellectual property protection framework for BC (Back Contact) and shingled

technologies using both product technology and patents to foster a high-quality industrial

ecosystem. From the beginning of the year to the end of the Reporting Period the photovoltaic

materials segment generated operating revenue of RMB 12.24 billion; the revenue of cells and

modules amounted to RMB 9.32 billion a year-on-year increase of 60.5%.We are confident in continuously improving the relative competitiveness of our new energy

photovoltaic business during the industry downturn achieving restorative growth in 2026 and

improving our operations performance.(III) Silicon Materials Business

19Full Text of the Annual Report 2025 of TCL Technology Group Corporation

Guided by its "Lead at Home Compete Globally" strategy and adopting a long-term

perspective the Company’s silicon materials business delivered strong performance during the

Reporting Period: shipments exceeded 1200 MSI operating revenue totaled RMB 5.71 billion a

year-on-year increase of 21.7% ranking first domestically in revenue while achieving

industry-leading efficiency and effectiveness. In 2025 the Company's operations efficiency

improved significantly with customer coverage expanded to both key domestic and overseas

groups and its comprehensive competitiveness led the domestic industry. The Company will

continue to diversify its product and customer mix and build differentiated competitive

advantages by focusing on technology efficiency and quality.(IV) Non-core business

During the Reporting Period Tianjin Printronics Circuit and Highly maintained stable

operations across their core businesses while their financial and investment segments continued

to generate steady earnings.Facing a severe and complex external environment the Company will embrace the spirit of

"Forging Ahead to Conquer New Challenges". By adhering to the operational philosophy of

"Strategic Leadership Innovation-Driven Leading Edge Manufacturing and Global Operations"

the Company will seize the historic opportunities presented by the advancement of the leading

edge manufacturing industry and transformation of the global energy structure to achieve

sustainable high-quality development and move toward global leadership.III. Analysis of Core Competitiveness

Since its establishment in 1981 TCL has consistently demonstrated resilience and

adaptability successfully navigating through various market cycles. Through sustained

exploration reform and transformation the Company 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

20Full Text of the Annual Report 2025 of TCL Technology Group Corporation

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 strategic 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 11

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

2025 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 2025 it secured the world’s second-largest market share in MNT

panels and tablet panels and led globally in key segments such as e-sports monitors LTPS

laptops and LTPS tablets. In 2025 the construction of the first high-generation printed OLED

production line (t8 project) commenced and the strategic LED 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 accelerated its downstream expansion

21Full Text of the Annual Report 2025 of TCL Technology Group Corporation

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 2025

it retained its position as the global leader in terms of comprehensive wafer market share.Regarding photovoltaic modules TZE drew upon its technical prowess in wafer manufacturing to

intensify innovation and R&D investment. By delivering superior products and solutions it

secured a spot among the global top 10 in module shipments in 2025. Navigating the intense

involutionary landscape of the domestic photovoltaic industry TZE accelerated the execution of

its overseas strategy and the construction of a robust global supply chain. These efforts enabled it

to proactively mitigate tariff risks and unlock new avenues for growth.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 2025. The Company

continuously boosted its production capacity for 12-inch large wafers leading to a significant

surge in both production and sales volumes. In 2025 revenue from 12-inch large wafers

maintained its leading domestic position. Moving forward the Company will continue to

diversify product application scenarios and engage more high-value clients to further elevate its

market standing and global influence.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 as well as G12 and

N-type photovoltaic materials. 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

22Full Text of the Annual Report 2025 of TCL Technology Group Corporation

controllable development of key technologies for next-generation displays. TCL TECH. has

established 29 R&D centers worldwide and has been certified with 9 national-level open

innovation platforms and 33 provincial-level innovation platform qualifications.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 and

digitalization upgrades. 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.Moreover through numerous industry cycles TCL CSOT has developed robust forecasting and

management mechanisms and capabilities to address external uncertainties. These capabilities

will continue to steer the Company through various risks supporting the strategic pursuit of

global leadership.While the new energy photovoltaics industry continues to face uncertainties in global

demand and policy shifts TZE streamlined its end-to-end business processes through a series of

management reforms. This has facilitated the development of global operations capabilities and

integrated solution offerings significantly boosting overall efficiency. By empowering its

operations with AI and intelligent manufacturing the Company further enhanced product

performance and quality. Maintaining its industry-leading efficiency and cost advantages the

Company is well-positioned to smoothly navigate industry cycles and evolve into a premier

global provider of new energy photovoltaic solutions.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

23Full Text of the Annual Report 2025 of TCL Technology Group Corporation

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.IV. Analysis of Core Businesses

1. Overview

In 2025 the Company's year-on-year changes in key financial information:

Unit: RMB

2025 2024 Change (%) Main reason for change

Operating revenue 184063390556 164822832863 11.67% No significant change

Operating cost 159857486840 145722435839 9.70% No significant change

Sales expenses 2403613794 2054073329 17.02% No significant change

Administrative expenses 4601266320 4446293387 3.49% No significant change

R&D expenses 11144741720 9433286566 18.14% No significant change

Financial expenses 4769705555 4179269969 14.13% No significant change

Income tax expense 220797664 202337232 9.12% No significant change

R&D investments 9536452206 8869739644 7.52% No significant change

Mainly due to the performance

Net cash generated from

44021698580 29526569404 49.09% improvement during the Reporting

operating activities

Period

Mainly due to the decrease in capital

Net cash used in investing expenditure for the new energy

-20254158967-2668200728124.09%

activities photovoltaic business during the

Reporting Period

Mainly due to the decrease in

Net cash used in financing

-18248079372 -2005942941 -809.70% financing scale during the Reporting

activities

Period

Mainly due to a year-on-year increase

in net cash inflows from operating

Net increase in cash and cash

5704548238 864439716 559.91% activities and a year-on-year decrease

equivalents

in net cash outflows from investment

activities during the Reporting Period

24Full Text of the Annual Report 2025 of TCL Technology Group Corporation

See "III Management Discussion and Analysis" for an analysis on the specific operating situation of the

Company's main business

2. Revenue and costs

(1) Breakdown of operating revenue

Unit: RMB

20252024

As % of total As % of total Change (%)

Amount operating revenue Amount operating revenue

(%)(%)

Total operating 184063390556 100% 164822832863 100% 11.67%

revenue

By operating division

Display business 120720415020 65.59% 104254496685 63.25% 15.79%

New energy

photovoltaics and 29050247640 15.78% 28418504236 17.24% 2.22%

other silicon

materials business

Distribution 34649079784 18.82% 31465203388 19.09% 10.12%

business

Other and offsets -356351888 -0.19% 684628554 0.42% -152.05%

By product category

Display devices 120720415020 65.59% 104254496685 63.25% 15.79%

New energy

photovoltaics and 29050247640 15.78% 28418504236 17.24% 2.22%

other silicon

materials

Distribution of 34649079784 18.82% 31465203388 19.09% 10.12%

electronics

Other and offsets -356351888 -0.19% 684628554 0.42% -152.05%

By operating segment

Chinese Mainland 116355211146 63.21% 109583287983 66.49% 6.18%

Overseas

(including Hong 67708179410 36.79% 55239544880 33.51% 22.57%

Kong)

Distribution method

Direct sales 156718075999 85.14% 139504381517 84.64% 12.34%

Distribution 26884600996 14.61% 24976737976 15.15% 7.64%

Dealer 460713561 0.25% 341713369 0.21% 34.82%

(2) Operating division product category region or sales method contributing over 10% of the revenue or operating profit

?Applicable □Not applicable

Unit: RMB

25Full Text of the Annual Report 2025 of TCL Technology Group Corporation

Change in

Change in Change in gross

Gross operating

Operating operating cost profit margin

Operating cost profit revenue

revenue year-on-year year-on-year

margin year-on-year

(%)(%)

(%)

By operating division

Display business 120720415020 96461134011 20.10% 15.79% 14.44% 0.95%

New energy

photovoltaics and 29050247640 30897605870 -6.36% 2.22% -0.33% 2.72%

other silicon

materials business

Distribution 34649079784 33467121589 3.41% 10.12% 10.23% -0.10%

business

By product category

Display devices 120720415020 96461134011 20.10% 15.79% 14.44% 0.95%

New energy

photovoltaics and 29050247640 30897605870 -6.36% 2.22% -0.33% 2.72%

other silicon

materials

Distribution of 34649079784 33467121589 3.41% 10.12% 10.23% -0.10%

electronics

By operating segment

Chinese Mainland 116355211146 106350698548 8.60% 6.18% 4.21% 1.73%

Overseas

(including Hong 67708179410 53506788292 20.97% 22.57% 22.54% 0.02%

Kong)

Distribution method

Direct sales 156718075999 133147212961 15.04% 12.34% 10.01% 1.80%

Distribution 26884600996 26336794771 2.04% 7.64% 8.03% -0.35%

Dealer 460713561 373479108 18.93% 34.82% 21.94% 8.56%

Core business data in the most recent year restated according to the changed methods of measurement that occurred in the

Reporting Period

□Applicable ?Not applicable

(3) Was revenue from product sales higher than service revenue

?Yes □No

Operating division Item Unit 2025 2024 Change (%)

10000 square

Sales 7006 5819 20.39%

meters

10000 square

Display Production volume 7306 5904 23.74%

meters

10000 square

Inventory 626 326 92.34%

meters

Sales 10000 sets 2381 2171 9.63%

Modules and

Production volume 10000 sets 2387 2196 8.67%

finished machines

Inventory 10000 sets 91 85 7.17%

Photovoltaic Sales 10000 pieces 1335497 1429983 -6.61%

silicon wafers Production volume 10000 pieces 1298320 1448853 -10.39%

26Full Text of the Annual Report 2025 of TCL Technology Group Corporation

Inventory 10000 pieces 42045 79221 -46.93%

Million square

Sales 1222 986 23.99%

inches

Other silicon Million square

Production volume 1246 1004 24.11%

materials inches

Million square

Inventory 91 67 35.87%

inches

Sales 10000 kWh 74334 67814 9.61%

Energy

Production volume 10000 kWh 74334 67814 9.61%

Sales MW 15116 8292 82.31%

Photovoltaic

Production volume MW 14559 7541 93.08%

modules

Inventory MW 1172 1729 -32.19%

Explanation of why any financial indicator in the table above registered a year-on-year change of over 30%

?Applicable □Not applicable

1. The increase in inventory of displays was mainly driven by the release of t9 capacity and the addition of inventory

following the acquisition of t11;

2. The inventory of photovoltaic silicon wafers decreased by 46.93% year-on-year. This was mainly due to the

Company’s proactive measures to navigate the bottom of the photovoltaic market cycle including improving

operations efficiency accelerating inventory turnover and reducing capital tie-up (solar silicon wafers were

calculated based on G10 equivalent products; photovoltaic silicon wafers included certain photovoltaic silicon rod

products for export converted into equivalent units);

3. The inventory of other silicon materials increased by 35.87% year-on-year. This was primarily attributed to the

expansion of the Company's business scale increased inventory turnover and the impact of the customer

consignment model;

4. Changes in the production and sales volumes of photovoltaic modules both exceeded 30%. This was mainly due to

the release of capacity from module projects and the expansion of sales scale.

(4) Execution progress of major sales contracts and materials purchasing contracts signed during the Reporting Period

□Applicable ?Not applicable

(5) Breakdown of operating costs

Operating division

Unit: RMB

20252024

Operating division Item As % of total As % of total Change (%)

Amount operating cost Amount operating cost

(%)(%)

Materials salary

Display business 96461134011 60.34% 84289589861 57.84% 14.44%

depreciation etc.New energy Materials salary

photovoltaics and 30897605870 19.33% 30999317595 21.27% -0.33%

other silicon depreciation etc.

27Full Text of the Annual Report 2025 of TCL Technology Group Corporation

materials business

Distribution

Finished goods etc. 33467121589 20.94% 30361957012 20.84% 10.23%

business

Materials salary

Others -968374631 -0.61% 71571371 0.05% -1453.02%

depreciation etc.Product category

Unit: RMB

20252024

Product category Item As % of total As % of total Change (%)

Amount operating cost Amount operating cost

(%)(%)

Materials salary

Display devices 96461134011 60.34% 84289589861 57.84% 14.44%

depreciation etc.New energy

photovoltaics and Materials salary 30897605870 19.33% 30999317595 21.27% -0.33%

other silicon depreciation etc.materials

Distribution of Finished goods etc. 33467121589 20.94% 30361957012 20.84% 10.23%

electronics

Materials salary

Others -968374631 -0.61% 71571371 0.05% -1453.02%

depreciation etc.

(6) Were there changes in the scope of consolidated financial statements for the Reporting Period

?Yes □No

Compared with 2024 41 subsidiaries (36 newly incorporated 1 acquired through capital increase and 4 acquired)

were newly included in the consolidation scope of 2025 and 16 subsidiaries (7 de-registered and 9 disposed of) are

excluded from the consolidation scope of 2025.

(7) Major changes to the business scope or product or service range in the Reporting Period

□Applicable ?Not applicable

(8) Major customers and suppliers

Major customers

Total sales of the top five customers (RMB) 62166134813

Total sales of the top five customers as a % of the total sales of 33.77%

the Reporting Period (%)

Total sales of related parties among the top five customers as 12.55%

a % of the total sales of the Reporting Period (%)

Top five customers

As a % of the total sales

No. Customer name Sales revenue (RMB)

revenue (%)

28Full Text of the Annual Report 2025 of TCL Technology Group Corporation

1 Customer A 23090793448 12.55%

2 Customer B 16774759488 9.11%

3 Customer C 14060070156 7.64%

4 Customer D 4698074559 2.55%

5 Customer E 3542437163 1.92%

Total -- 62166134813 33.77%

Other information about major customers: For sales transactions between the Company and its related parties see provisional

announcements disclosed by the Company on the designated platform for information disclosure.□Applicable ?Not applicable

Major suppliers

Total purchases from the top five suppliers (RMB) 25172925435

Total purchases from the top five suppliers as % of the total 18.02%

purchases of the Reporting Period (%)

Total purchases from related parties among the top five suppliers -

as % of the total purchases of the Reporting Period (%)

Top five suppliers

Purchases in the Reporting As a % of the total purchases

No. Supplier name

Period (RMB) (%)

1 Supplier A 8235869506 5.89%

2 Supplier B 6176866697 4.42%

3 Supplier C 5130362797 3.67%

4 Supplier D 2997902025 2.15%

5 Supplier E 2631924410 1.88%

Total -- 25172925435 18.02%

Other information about major suppliers

□Applicable ?Not applicable

During the Reporting Period the Company’s revenue from trade business accounted for more than 10% of its operating revenue

□Applicable ?Not applicable

3. Expenses

Unit: RMB

2025 2024 Change (%) Main reason for change

Sales expenses 2403613794 2054073329 17.02% No significant change

Administrative 4601266320 4446293387 3.49% No significant change

expenses

Financial expenses 4769705555 4179269969 14.13% No significant change

R&D expenses 11144741720 9433286566 18.14% No significant change

4. R&D investments

?Applicable □Not applicable

29Full Text of the Annual Report 2025 of TCL Technology Group Corporation

Anticipated impact on

Main R&D project Purpose Progress Preset goals the future development

of the Company

Bolster efficiency and

To standardize and The platform has been production benefits and

modularize the AI deployed across all To lower the barrier for support the Company’s

project development TCL CSOT bases AI applications and evolution into a

X-Ark AI Platform

process for improved boosting the overall enhance the efficiency digitalized and

project delivery delivery efficiency of of AI implementation intelligent

efficiency AI projects manufacturing

enterprise

To achieve

breakthroughs in mass Facilitate the continued

production technologies simplification of IC

High-Performance To support the

for high-specification driver architectures and

Oxide Technology development of Realized industrial

and low-cost Oxide at expand the competitive

Development and high-mobility Oxide transformation

TCL CSOT filling the range of Oxide

Productization products

technical gap in its technology beyond

high-mobility Oxide IGZO

mass production

To build extreme

architecture design

capabilities; to

To build IPS

complete high-refresh Rapidly establish

competitiveness based

rate upgrades product and technical

on "Ultimate Cost

Enhancement of IPS compatible with DLG competitiveness in IPS

Efficiency" and Realized industrial

Comprehensive functions; to surpass effectively addressing

"Extreme Energy transformation

Competitiveness competitors in TCL CSOT’s previous

Efficiency" driving

transmittance shortcomings in this

iterations of TV CID

performance through field

and MNT products

comprehensive

optimization of design

materials and processes

To promote deep

Leveraging multimodal

integration of R&D

AI models in our R&D

Application of workflows with AI Further elevate R&D

Realized industrial design workflow to

X-Intelligence AI in utilizing multi-agent efficiency and product

transformation drive innovation in

Display collaboration to quality

display panel and

enhance R&D

material development

efficiency and quality

To establish

To achieve a highly

deterministic models by Significantly improve

intelligent and The development and

combining process production efficiency

unmanned automatic application of the

Intelligent Control logic with engineering and product

crystal pulling mode "single-click" crystal

R&D for experience achieving consistency ensuring

under the Industry 4.0 pulling control model

Monocrystalline Silicon fully automated the Company maintains

manufacturing were completed with

Growth "single-click" crystal a sustained lead in

framework minimizing automation levels

pulling with an intelligent

reliance on manual leading the industry

automation efficiency manufacturing

labor

of 95%

To reduce the

Process development

mass-produced core

To develop supporting for 20-wire and 18-wire Increase the slice yield

wire diameter by 4μm

Ultra-Thin Wire processes and auxiliary core wires has been per kilogram and

while maintaining a

Cutting Project materials for ultra-fine completed and enhance product

process yield of over

wire cutting industrialization has competitiveness

95%. To continuously

been achieved

improve fine-wire

30Full Text of the Annual Report 2025 of TCL Technology Group Corporation

cutting technology

To complete the

development of the

half-cell product and

The development of the

equipment platform

half-cell product series Enhance the core

achieving mass To complete the

was completed; competitiveness of the

production conversion switchover of N-type

TOPCon Half-Cell expansion of various cell and module

and product half-cell module

Photovoltaic Modules sizes and module power business expanding

certification and products and increase

enhancements will application scenarios

further refine the market share

follow based on market and corporate strength

product portfolio to

demand

meet diverse

application scenarios

and market demands

To develop and

Strengthen the market

promote BC (Back Development of certain To increase the mass

competitiveness of the

Contact) photovoltaic BC product versions production conversion

BC Photovoltaic cell and module

module technology was completed with efficiency of BC

Modules business promoting

improving power further refinements photovoltaic modules to

industrial synergy and

generation efficiency ongoing over 24%

diversified development

and performance

R&D personnel

2025 2024 Change (%)

Number of R&D employees 13316 10855 22.67%

As % of R&D employees (%) 18.64% 15.27% 3.37%

Education

PhD 212 175 21.14%

Master 2560 2113 21.15%

Bachelor's degree and others 10544 8567 23.08%

Age

Under 30 years old 6295 5516 14.12%

30-40 years old 5796 4649 24.67%

Over 40 years old 1225 690 77.54%

R&D investments

2025 2024 Change (%)

R&D investment amount 9536452206 8869739644 7.52%

(RMB)

R&D investments as % of the 5.18% 5.38% -0.20%

total revenue (%)

Capitalization amount of R&D 2753276338 2872305027 -4.14%

investments (RMB)

Capitalization amount of R&D

investments as % of the total 28.87% 32.38% -3.51%

revenue (%)

Reasons and impacts of major changes in the composition of R&D personnel of the Company

□Applicable ?Not applicable

Reasons for significant changes in R&D investment as % of the total revenue compared with the previous year

31Full Text of the Annual Report 2025 of TCL Technology Group Corporation

□Applicable ?Not applicable

Reasons for significant changes in R&D investments capitalization and explanation of rationale

□Applicable ?Not applicable

5. Cash flow

Unit: RMB

Item 2025 2024 Change (%)

Sub-total of cash generated from 221679351713 183619379779 20.73%

operating activities

Sub-total of cash used in operating 177657653133 154092810375 15.29%

activities

Net cash generated from operating 44021698580 29526569404 49.09%

activities

Sub-total of cash generated from 120193280642 86164143488 39.49%

investment activities

Subtotal of cash used in investing 140447439609 112846150769 24.46%

activities

Net cash used in investing activities -20254158967 -26682007281 24.09%

Sub-total of cash generated from 104897774227 77793154885 34.84%

financing activities

Subtotal of cash used in financing 123145853599 79799097826 54.32%

activities

Net cash generated from financing -18248079372 -2005942941 -809.70%

activities

Net increase in cash and cash 5704548238 864439716 559.91%

equivalents

Explanation of why related data has significant changes year-on-year

?Applicable □Not applicable

Net cash generated from operating activities: primarily due to the increase in performance during the Reporting

Period.Net cash generated from investing activities: primarily due to the decrease in capital expenditure of the new energy

photovoltaic business during the Reporting Period.Net cash generated from financing activities: primarily due to the decrease in scale of financing during the reporting

period.Increase in net cash and cash equivalent: mainly due to a year-on-year increase in net cash inflows from operating

activities and a year-on-year decrease in net cash outflows from investment activities.Explanation of the significant difference between the net cash flow generated by the Company's operating activities and the net

profit of the current year during the reporting period

?Applicable □Not applicable

The large difference between the net cash flow generated by the Company's operations and the net profits of the

current year is primarily caused by factors such as depreciation amortization and impairment of the Company's

assets during the Reporting Period.

32Full Text of the Annual Report 2025 of TCL Technology Group Corporation

V. Analysis of Non-Core Businesses

?Applicable □Not applicable

Unit: RMB

Amount As % of gross profit Source Sustainability

Mainly due to the

recognition of return on

investment from joint

Return on investment 2522300078 580.31% Yes

ventures and investment

returns on financial

assets etc

Mainly due to the

movement in fair value

Gain/loss of fair-value 988618468 227.45% of financial assets Yes

changes

during the holding

period

Falling price of

Asset impairment -5543445898 -1275.40% inventory write-offs in No

line with the market

Non-operating income 114400869 26.32% No

Non-operating expenses 168131051 38.68% No

VI. Analysis of Assets and Liabilities

1. Significant Changes in Asset Composition

Unit: RMB

The end of 2025 The beginning of 2025

Weight Main reason for

As % of total As % of total

Amount Amount Change change

assets assets

Mainly due to a

year-on-year

increase in net

cash inflows

from operating

activities and a

Monetary assets 30460060493 8.17% 23007772733 6.08% 2.09% year-on-year

decrease in net

cash outflows

from investment

activities during

the Reporting

Period

Accounts 22153002606 5.94% 22242152687 5.88% 0.06% No significant

33Full Text of the Annual Report 2025 of TCL Technology Group Corporation

receivable change

No significant

Contract assets 385576416 0.10% 395116789 0.10% 0.00%

change

No significant

Inventories 18370708289 4.93% 17594133395 4.65% 0.28%

change

Investment No significant401873017 0.11% 612733509 0.16% -0.05%

property change

Long-term No significant

equity 23349193104 6.26% 24595634142 6.50% -0.24%

investments change

Mainly due to

the increase in

Fixed assets 165003155646 44.27% 170512009105 45.08% -0.81%

depreciation of

fixed assets

Mainly due to

the decrease in

additional

Construction in capital16176848470 4.34% 23580503161 6.23% -1.89%

progress expenditure

during the

Reporting

Period

Right-of-use No significant6189174496 1.66% 6697687926 1.77% -0.11%

assets change

Short-term No significant7552523460 2.03% 8193283100 2.17% -0.14%

borrowings change

Contract No significant2009842277 0.54% 1969271038 0.52% 0.02%

liabilities change

Long-term No significant116139349491 31.16% 116815131219 30.88% 0.28%

borrowings change

No significant

Lease liabilities 4148597798 1.11% 6334785779 1.67% -0.56%

change

Higher proportion of overseas assets

□Applicable ?Not applicable

34Full Text of the Annual Report 2025 of TCL Technology Group Corporation

2. Assets and Liabilities at Fair Value

?Applicable □Not applicable

Unit: RMB

Gain/loss of fair-value Cumulative fair-value Impairment allowances Amount purchased

Amount sold in the

Item Beginning amount changes in the changes recorded in established in the in the Reporting Other changes Ending amount

Reporting Period

Reporting Period equity Reporting Period Period

Financial assets

1. Held-for-trading

financial assets

1656097111342435887310676343944310958720623231162993414473193131

(excluding derivative

financial assets)

2. Derivative financial

1724886181514806291929029667030110640599896878957405

assets

3. Receivables

831407255-205618503625788752

financing

4. Other debt

investments

5. Investments in

other equity 387850846 -196364304 1435818 -29959261 356455767

instruments

6. Other non-current

22251998234307650281149317900693656430610327563172659077

financial assets

Subtotal of financial

201779176551006604530-19636430410793204763911095259958654308389418707054132

assets

Total of the above 20177917655 1006604530 -196364304 107932047639 110952599586 543083894 18707054132

Financial liabilities 695159977 17986062 - 1838435677 2016394873 -41662480 493524364

Category

financial reporting related to financial reporting

Material weaknesses: (1) material

violations of the country's laws or

Material weaknesses: (1) an invalid regulations in the Company's operating

control environment; (2) fraud by activities; (2) any material

directors and senior management; (3) any decision-making error that is caused by an

material misstatement of financial irrational decision-making procedure and

reporting of the current period that was causes material property loss to the

identified by the registered accountants Company; (3) a massive loss of key

but not reported by the Company; and (4) managerial or technical personnel; and (4)

invalid internal control supervision by the frequent negative news coverage that

Audit Committee and the internal audit causes great concern for the regulatory

Nature standard

organ. administration and a material long-lasting

Serious weaknesses: A single weakness or impact on the Company's brand and

a group of weaknesses that are less reputation.serious than a material weakness but Serious weaknesses: A single weakness or

could still cause deviation from the a group of weaknesses that are less

control objectives. serious than a material weakness but

Common weaknesses: Other internal could still cause deviation from the

control weaknesses that are neither control objectives.material nor serious. Common weaknesses: Other internal

control weaknesses that are neither

material nor serious.Material weaknesses: misstatements ≥ 5%

of total profit;

Quantitative standard Serious weaknesses: 3% of total profit ≤ Not applicable

misstatements < 5% of total profit

Common weaknesses: misstatements <

67Full Text of the Annual Report 2025 of TCL Technology Group Corporation

3% of total profit

Number of material weaknesses in

None

internal controls over financial reporting

Number of material weaknesses in

internal controls not related to financial None

reporting

Number of serious weaknesses in internal

None

controls over financial reporting

Number of serious weaknesses in internal

None

controls not related to financial reporting

2. Independent Auditor's Report on Internal Controls

?Applicable □Not applicable

Opinion paragraph in the independent auditor's report on internal controls

In our opinion TCL TECH. maintained in all material respects effective internal control over financial reporting as of December 31

2025 based on the Basic Rules for Enterprise Internal Control and other applicable rules.

The Internal Control Audit Report of TCL Technology Group

Independent auditor's report on internal controls disclosed or not Corporation is disclosed at www.cninfo.com.cn dated March 28

2026

Disclosure date March 28 2026

Index to such report disclosed http://www.cninfo.com.cn

Type of the auditor's opinion Unmodified opinions

Material weaknesses in internal controls not related to financial

reporting

Indicate whether any modified opinion is expressed in the independent auditor's report on the Company's internal controls.□Yes ?No

Indicate whether the independent auditor's report on the Company's internal controls is consistent with the internal control

self-evaluation report issued by the Company's Board.?Yes □No

Indicate Whether a non-standard audit opinion on internal control was issued for the Reporting Period or the previous year.□Yes ?No

XIV. Ad-hoc Self-inspection and Rectification for Corporate Governance of Listed

Companies

Not applicable

XV. Environmental Information Disclosure

Whether the listed company and its major subsidiaries are included in the list of enterprises required to disclose environmental

information in accordance with laws

?Yes □No

Number of enterprises included in the list of enterprises

that disclose environmental information in accordance 19

with the law

No. Name of enterprise Index for environmental information disclosure report

68Full Text of the Annual Report 2025 of TCL Technology Group Corporation

Enterprise Environmental Information Disclosure System (Guangdong

TCL China Star Optoelectronics Technology

1 Province)

Co. Ltd.https://gdee.gd.gov.cn/gdeepub/front/dal/dal/newindex

Enterprise Environmental Information Disclosure System (Guangdong

Shenzhen China Star Optoelectronics

2 Province)

Bandaoti Display Technology Co. Ltd.https://gdee.gd.gov.cn/gdeepub/front/dal/dal/newindex

Enterprise Environmental Information Disclosure System (Guangdong

Guangzhou China Star Optoelectronics

3 Province)

Bandaoti Display Technology Co. Ltd.https://gdee.gd.gov.cn/gdeepub/front/dal/dal/newindex

Enterprise Environmental Information Disclosure System (Guangdong

Guangzhou China Star Optoelectronics

4 Province)

Technology Co. Ltd.https://gdee.gd.gov.cn/gdeepub/front/dal/dal/newindex

Enterprise Environmental Information Disclosure System (Hubei)

Wuhan China Star Optoelectronics http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/enterpriseIn

Technology Co. Ltd. foXTXH=6a15f252-dd39-40a0-b08c-ba0387086f16&XH=1677751270

208009244672&year=2024

Enterprise Environmental Information Disclosure System (Hubei)

Wuhan China Star Optoelectronics Bandaoti http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/enterpriseIn

Display Technology Co. Ltd. foXTXH=10470c7d-faf3-4981-8a87-e813881ef749&XH=1677751269

448009244672&year=2024

Enterprise Environmental Information Disclosure System (Jiangsu)

Suzhou China Star Optoelectronics http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-webapp/web/viewRun

Technology Co. Ltd. ner.htmlviewId=http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-weba

pp/web/sps/views/yfpl/views/yfplHomeNew/index.js

Enterprise Environmental Information Disclosure System (Jiangsu)

Suzhou China Star Optoelectronics Display http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-webapp/web/viewRun

Co. Ltd. ner.htmlviewId=http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-weba

pp/web/sps/views/yfpl/views/yfplHomeNew/index.js

Enterprise Environmental Information Disclosure System (Inner

Inner Mongolia Zhonghuan Solar Material Mongolia)

Co. Ltd. http://sthjj.huhhot.gov.cn/ztzl/xzzt/cxjsgc/202507/t20250717_1912456.h

tml

Enterprise Environmental Information Disclosure System (Jiangsu)

10 Wuxi Zhonghuan Applied Materials Co. Ltd. http://ywxt.sthjt.jiangsu.gov.cn:18181/shencai-envfacial-web/web/view/f

acialDetail/facialDetail.html

Tianjin Zhonghuan Advanced Enterprise Environmental Information Disclosure System (Tianjin)

Material&Technology Co. Ltd. https://hjxxpl.sthj.tj.gov.cn:10800/#/gkwz/jcym

Enterprise Environmental Information Disclosure System (Jiangsu)

Zhonghuan Advanced Bandaoti Technology

12 http://ywxt.sthjt.jiangsu.gov.cn:18181/shencai-envfacial-web/web/view/f

Co. Ltd.acialDetail/facialDetail.html

TCL Zhonghuan Energy Technology Enterprise Environmental Information Disclosure System (Jiangsu)

13 (Jiangsu) Co. Ltd. (Formerly: Huansheng http://ywxt.sthjt.jiangsu.gov.cn:18181/shencai-envfacial-web/web/view/f

Photovoltaic (Jiangsu) Co. Ltd.) acialDetail/facialDetail.html

Ecological Environment Statistics Business System

14 Moka Technology (Guangdong) Co. Ltd.

https://hjtj.cnemc.cn/htqy/#/login

TTE ELECTRONICS INDIA PRIVATE Central Pollution Control Board India

LIMITED (India) https://eprplastic.cpcb.gov.in/

Industrial Park Management of the Department of Natural Resources and

C?NG TY TNHH C?NG NGH? MOKA Environment (Vietnam)

VI?T NAM https://www.quangninh.gov.vn/So/sonongnghiepptnt/Trang/ChiTietTinT

uc.aspxnid=8846

Ministry of Environment and Natural Resources

TCL Moka Manufacturing S.A de C.V

17 Leyes y Normas del Sector Medio Ambiente | Secretaría de Medio

(Mexico)

Ambiente y Recursos Naturales | Gobierno | gob.mx

Enterprise Environmental Information Disclosure System (Tianjin)

18 Tianjin Printronics Circuit Corporation

https://hjxxpl.sthj.tj.gov.cn:10800/#/gkwz/jcym

19 Techigh Circuit Technology (Huizhou) Co. Department of Ecology and Environment of Guangdong Province -

69Full Text of the Annual Report 2025 of TCL Technology Group Corporation

Ltd. Enterprise Environmental Information Disclosure System

https://gdee.gd.gov.cn/gdeepub/front/dal/report/listentName=%E6%B3

%B0%E5%92%8C%E7%94%B5%E8%B7%AF&reportType=&areaCo

de=&entType=&reportDateStartStr=&reportDateEndStr=

XVI. Social Responsibility

To advance the high-quality development of educational informatization and bridge the urban-rural divide in

educational resources the TCL Public Welfare Foundation launched the TCL Smart Classroom public welfare

program. Built around a "1+N" smart classroom network the program delivered an immersive and intelligent

teaching environment through smart blackboards all-in-one teaching machines educational tablets

eye-protection lamps and other smart education equipment complemented by supporting teaching software. This

enabled the inclusive sharing of high-quality educational resources. To date the program has been completed and

put into use at Haide School and Chiwan School of Nanshan Second Foreign Languages School (Group) in

Shenzhen Guangdong Province Longsheng Experimental Junior Middle School and No. 18 Primary School in

Multinational Autonomous County of Longsheng Guangxi Province and Yuanshan County Primary School in

Lianping County Heyuan Guangdong Province. Leveraging the smart classroom network the program has

carried out a variety of innovative teaching practices such as dual-teacher classes and four-school joint courses

benefiting more than 7700 students.XVII. Consolidation and Expansion of Poverty Alleviation Achievements and Rural

Revitalization

In response to the national "dual carbon" goals the TCL Public Welfare Foundation launched the

construction of TCL PV Low-Carbon Campuses in 2022. In 2024 it joined hands with the China Youth

Development Foundation to launch the TCL Project Hope PV Low-Carbon Campuses initiative. Based on the

development needs of urban and rural schools the program donated rooftop photovoltaic power generation

systems and all associated power generation revenue to rural schools injecting green momentum into the

sustainable development of rural education. The program was also equipped with a real-time data monitoring

platform for PV low-carbon campuses. With supporting courses on PV science popularization and environmental

protection practices it continuously fostered low-carbon environmental protection awareness and green

development concepts among young people. As of December 2025 the project expanded to regions including the

Inner Mongolia Autonomous Region Guangdong Province Shaanxi Province and the Ningxia Hui Autonomous

70Full Text of the Annual Report 2025 of TCL Technology Group Corporation

Region. To date 35 photovoltaic low-carbon campuses have been established nationwide with a total installed

capacity of 2054.65 kW. Over the entire lifecycle of these solar power stations they are expected to generate

61.91 million kWh of green electricity equivalent to saving approximately 20109 tons of standard coal and

reducing CO2 emissions by approximately 49877 tons or planting 2.76 million trees.The TCL Public Welfare Foundation focuses on key areas such as rural revitalization ecological

development and educational public welfare. By establishing and leveraging a targeted assistance mechanism it

precisely addresses the actual needs of specific regions and groups ensuring that its public welfare actions

generate tangible impact. For rural revitalization the Foundation supported infrastructure construction visited and

offered condolences to disadvantaged groups and helped improve local living conditions. For ecological

development it organized ecological environmental protection and restoration initiatives and supported the

construction of green facilities such as PV-energy storage-charging integrated charging piles and PV carports to

promote the use of sustainable energy. For educational public welfare the Foundation is committed to improving

the educational environment of kindergartens primary and secondary schools and enhancing the learning and

living experience of teachers and students. In addition the Foundation launched a staff creativity competition to

encourage employees to support disadvantaged groups and design innovative public welfare projects with social

benefits contributing to the cultural and ethical progress of communities and rural areas in multiple dimensions.Furthermore the Foundation also initiated public welfare innovation competitions and planed innovate socially

beneficial public welfare projects thereby contributing to the cultural and ethical development of communities

and rural areas in multiple dimensions.

71Full Text of the Annual Report 2025 of TCL Technology Group Corporation

Part V Significant Events

I. Fulfillment of Commitments

1. 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

Date of

Commitment Type of Term of

Commitment Details of commitment commitment Fulfillment

party commitment commitment

making

1) I will avoid horizontal

competition between the

companies enterprises or other

business organizations that I own

About During the

control control with others have

horizontal tenure of the

significant influence on and the

Commitments competition Company's In

Li Company with its subsidiaries; and August 30

made in related-party director continuous

Dongsheng 2) I will reduce and control 2013

refinancing transaction supervisor performance

transactions of related parties

and capital or senior

between the companies enterprises

occupation management

or other business organizations that

I own control control with others

or have significant influence on and

the Company with its subsidiaries;

I. Neither I/this partnership nor any

entities under my/our control

engage in horizontal competition

with the principal business

operations of TCL TECH. and its

affiliated enterprises.II. I/this partnership will take active

measures to avoid any business or

activity that competes or may

The largest constitute competition with the

shareholder main business of TCL TECH. and

of the listed its affiliated enterprises and willurge the enterprises controlled by During the

company and

Commitments Commitments me/this partnership to avoid any

period of

its person

made in on avoiding business or activity that competes

being the In

acting in or may constitute competition with

December

largest continuous

selling major horizontal

concert (Mr. the main business of TCL TECH.

72018

shareholder performance

assets competition

Li and its affiliated enterprises. of the

Dongsheng III. If I/this partnership and theenterprises controlled by me/this Company

and Jiutian partnership obtain the opportunity

Liancheng) to engage in new business which

constitutes or may constitute

horizontal competition with the

main business of TCL TECH. and

its affiliated enterprises. I/this

partnership will when it is

possible try my/our best to make

this business opportunity available

to TCL TECH. or its affiliated

enterprises in the first place based

72Full Text of the Annual Report 2025 of TCL Technology Group Corporation

on reasonable and fair terms and

conditions.IV. If the business of mine/this

partnership and the enterprises

controlled by me/this partnership

coincides or may constitute

horizontal competition with TCL

TECH.'s business due to my/this

partnership's investment demand or

TCL TECH.'s business

development I/this partnership and

the enterprises controlled by

me/this partnership agree to solve

the resulting horizontal competition

within a specific time limit since as

it is determined.V. During my/our tenure as the

largest shareholder of TCL

Technology the aforementioned

commitments were unconditional

and irrevocable. If I/this

partnership violate the

aforementioned commitments

I/this partnership will make

comprehensive timely and full

joint and several compensation for

the losses to TCL TECH. caused

thereby.I. I/this partnership will minimize

the related party transactions

between me/this partnership

(including all entities under me/our

control) and TCL TECH. and its

affiliated enterprises.II. For inevitable or reasonable

related party transactions I/this

partnership (including all entities

under me/our control) and TCL

TECH. and its affiliated enterprises

will conduct them according to fair

The largest market principles and normal

shareholder commercial conditions so as to

of the listed ensure the fairness of the related During the

Commitments

company and party transaction price and will

on reducing perform the decision-making

period of

its person being the In

and procedures for related party December

acting in

regulating transactions according to the law

largest continuous

72018

concert (Mr.related party to ensure that the related party

shareholder performance

Li transactions will not be used to of the

transactions

Dongsheng illegally transfer TCL TECH.'s Company

and Jiutian funds or to damage the legitimate

Liancheng) rights and interests of TCL TECH.and its shareholders.III. I/this partnership and the

enterprises controlled by me/this

partnership will not ask TCL

TECH. and its affiliated enterprises

to give more favorable conditions

than those that can be offered to an

independent third party in any fair

market transaction.IV. During the period of being the

largest shareholder of TCL TECH.the aforementioned commitment is

73Full Text of the Annual Report 2025 of TCL Technology Group Corporation

unconditional and irrevocable. If

I/this partnership violate the

aforementioned commitments

I/this partnership will make

comprehensive timely and full

compensation on a joint and

several basis for the losses to TCL

TECH. caused thereby.I/this partnership will continue to

exercise shareholders’ rights

according to laws regulations and

the Articles of Association of TCL

TECH. and maintain the

independence of TCL TECH. in

terms of assets personnel finance

business and institutions. I/this

partnership will ensure:

(I) The independence of TCL

TECH. personnel

I/this partnership promise(s) to

maintain personnel independence

with TCL TECH. TCL TECH.'s

senior management including the

general manager deputy general

manager chief financial officer

and secretary of the board of

directors shall not hold positions

other than directors and supervisors

in my/this partnership's subordinate

wholly-owned controlled or other

The largest enterprises with actual control

shareholder (hereinafter referred to as

of the listed Commitments "subordinate enterprises") andshall not be paid in my/this During the

company and on partnership's subordinate period of

its person maintaining enterprises. The financial personnel being the In

acting in the of TCL TECH. shall not work

December

largest continuous

concert (Mr. independence part-time in my/this partnership's

72018

shareholder performance

Li of listed subordinate enterprises. of the

Dongsheng company (II) The independence and integrityof TCL TECH.'s assets Company

and Jiutian 1. The independence and integrity

Liancheng) of TCL TECH.'s assets.

2. TCL TECH. does not have any

funds or assets occupied by me/this

partnership and my/this

partnership's subordinate

enterprises.(III) The financial independence of

TCL TECH.

1. TCL TECH. establishes an

independent financial department

and an independent financial

accounting system.

2. TCL TECH. has a standardized

and independent financial

accounting system.

3. TCL TECH. opens an

independent bank account and does

not share a bank account with

me/this partnership.

4. The financial personnel of TCL

TECH. shall not work part-time in

my/this partnership's subordinate

enterprises.

74Full Text of the Annual Report 2025 of TCL Technology Group Corporation

5. TCL TECH. can make

independent financial decisions

and I/this partnership shall not

interfere with the use of TCL

TECH.'s funds.(IV) The institutional independence

of TCL TECH.

1. TCL TECH. has an independent

and complete organization which

can operate independently.

2. TCL TECH.'s office and

premises for production and

operations are separated from my

subordinate enterprises/this

partnership.

3. The Board of Directors Board of

Supervisors and various functional

departments of TCL TECH.operate independently and have no

subordinate relationship with this

partnership's functional

departments.(V) The business independence of

TCL TECH.

1. I/this partnership promise(s) to

maintain the business independence

of TCL TECH. after this

transaction.

2. TCL TECH. has the assets

personnel qualifications and ability

to independently carry out business

activities and has the ability to

operate independently in the

market.If TCL TECH. suffers losses due to

the violation of commitments under

the letter of commitment by me/this

partnership or my/this partnership's

subordinate enterprises I/this

partnership will bear the

corresponding compensation

liability according to the law.

1. We will ensure the independence

of the listed company in terms of

business assets finance personnel

and organizational structure. We

will not utilize the listed company

or its subsidiaries to provide

Letter of

guarantees in violation of any

Counterparty Commitment

regulations nor will we illegally During the

(Shenzhen on

Commitments occupy the funds of the listed period of

Major Maintaining In

made during company or its subsidiaries. We March 3 being the

Industrial the continuous

asset will ensure that the listed company 2025 shareholder

Development Independence performance

restructuring maintains a sound and effective of the

Phase I Fund of

corporate governance structure and Company

Co. Ltd.) the Listed

that the general meeting the board

Company

of directors independent directors

the board of supervisors and other

corporate bodies exercise their

functions and powers

independently in accordance with

relevant laws administrative

75Full Text of the Annual Report 2025 of TCL Technology Group Corporation

regulations normative documents

and the Articles of Association of

the listed company.

2. Should we violate the

aforementioned commitments and

cause any loss to the listed

company we shall compensate the

listed company for all such losses

incurred.

1. We will perform our obligations

as a shareholder of TCL TECH. in

good faith. We will not utilize its

position to take any action

regarding related-party transactions

between TCL TECH. and us (or

other entities under our control)

nor will we deliberately cause the

general meeting or the board of

directors of TCL TECH. to pass

resolutions that infringe upon the

Letter of legitimate rights and interests of

Counterparty

Commitment TCL TECH. and its other During the

(Shenzhen

on Regulating shareholders. period of

Major In

Related-Party 2. In the event that TCL TECH. March 3 being the

Industrial continuous

Transactions must enter into any related-party 2025 shareholder

Development performance

with transaction with us or other entities of the

Phase I Fund

the Listed under our control we undertake to Company

Co. Ltd.)

Company ensure that the prices and other

contractual terms and conditions of

the aforesaid transactions are

determined on a fair and reasonable

basis equivalent to an arm's length

transaction with an independent

third party.

3. Should we violate the

aforementioned commitments and

cause any loss to TCL TECH. we

shall compensate TCL TECH. for

all such losses incurred.From the date we acquire shares of

the listed company through this

transaction we and other entities

under our control commit that we

will not seek to become the largest

shareholder controlling

Counterparty Letter of

shareholder or actual controller of During the

(Shenzhen Commitment

the listed company nor will we period of

Major on Not In

seek such status by any other March 3 being the

Industrial Seeking continuous

means including but not limited to 2025 shareholder

Development Control of performance

soliciting voting rights through of the

Phase I Fund the Listed

proxies or entering into concerted Company

Co. Ltd.) Company

action agreements or similar

arrangements with other

shareholders or their affiliates.Furthermore we will not assist or

cause any other party to seek

controlling shareholder or actual

76Full Text of the Annual Report 2025 of TCL Technology Group Corporation

controller status of the listed

company by any means.Fulfilled on

Yes

time

Specific

reasons for

failing to

fulfill

Not applicable

commitments

on time and

plans for next

steps

2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still

within the forecast period explain why the forecast has been reached

□Applicable ?Not applicable

3. Performance commitments of the Company

□Applicable ?Not applicable

Changes in performance commitments

□Applicable ?Not applicable

Commitments made by the Company’s shareholders and counterparties regarding the operating performance for the Reporting Year

□Applicable ?Not applicable

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. Explanations given by the Board of Directors regarding the Latest "Independent

Auditor's Modified Opinion" on the Financial Statements

□Applicable ?Not applicable

V. Explanations given by the Board of Directors and Independent Directors (if any) regarding

the "Independent Auditor's Modified Opinion" on the Financial Statements of the Reporting

Period

□Applicable ?Not applicable

77Full Text of the Annual Report 2025 of TCL Technology Group Corporation

VI. YoY Changes in Accounting Policies and Estimates or Correction of Material Accounting

Errors

□Applicable ?Not applicable

During the Reporting Period the Company had no YoY changes in accounting policies and estimates or correction of material

accounting errors.VII. YoY Changes to the Scope of the Consolidated Financial Statements

?Applicable □Not applicable

In 2025 41 subsidiaries (36 newly incorporated 1 added through capital increase for control and 4 acquired) were newly included in

the consolidation scope and 16 subsidiaries (7 de-registered and 9 disposed of) were excluded from the consolidation scope.VIII. Engagement and Disengagement of Independent Auditor

Current independent auditor

Name of the domestic independent auditor RSM China (LLP)

The Company's payment to the domestic independent auditor

483.1

(RMB'0000)

How many consecutive years the domestic independent auditor

2 years

has provided audit services for the Company

Names of the certified public accountants from the domestic

Chen Zefeng Xiao Mengying Chen Zhihao

independent auditor writing signatures on the auditor's report

How many consecutive years the certified public accountants

2 years 1 year 2 years

have provided audit services for the Company

Name of the foreign independent auditor (if any) Not applicable

The Company's payment to the foreign independent auditor

Not applicable

(RMB'0000) (if any)

How many consecutive years the foreign independent auditor has

Not applicable

provided audit services for the Company (if any)

Names of the certified public accountants from the foreign

independent auditor writing signatures on the auditor's report (if Not applicable

any)

How many consecutive years the certified public accountants

Not applicable

have provided audit services for the Company (if any)

Indicate whether the independent auditor was changed for the Reporting Period

□Yes ?No

Indicate whether the independent auditor was changed during the Audit Period

□Yes ?No

Independent auditor financial advisor or sponsor hired for the audit of internal control

?Applicable □Not applicable

During the Reporting Period the Company hired RSM China (LLP) to conduct an internal control audit with an audit cost of RMB

500000.

78Full Text of the Annual Report 2025 of TCL Technology Group Corporation

IX. Delisting Faced after the Disclosure of the Annual Report

□Applicable ?Not applicable

X. Insolvency and Reorganization

□Applicable ?Not applicable

XI. Significant Lawsuits and Arbitrations

□Applicable ?Not applicable

During the reporting period the Company had no significant lawsuits or arbitrations.XII. Punishments and Rectifications

□Applicable ?Not applicable

XIII. Credit Quality of the Company as well as its Controlling Shareholder and Actual

Controller

□Applicable ?Not applicable

XIV. Major Related-Party Transactions

1. Recurring Related-Party Transactions

?Applicable □Not applicable

For details of the Company's major 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 Investments

□Applicable ?Not applicable

During the Reporting Period there were no major related-party transactions regarding purchase or disposal of assets or equity

investments.

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.

79Full Text of the Annual Report 2025 of TCL Technology Group Corporation

5. Transactions with Related-party Finance Companies

□Applicable ?Not applicable

The Company had no deposits loans credit granting or other financial business with 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 EndingRelated Range of

with the ceiling balance Total deposit balance

parties interest withdrawal

Company (RMB’0000) (RMB’0000) amount in amount in (RMB’0000)

current period

(RMB’0000)

Subsidiary

of TCL

Industries 250000 0.38%-1.04% 480.55 1662420.45 1661868.13 1032.87

legal entity

Holdings

Co. Ltd.Loans

Amount incurred in the current

period

Relationship Beginning Ending

Related Loan limit Total

with the Range of interest balance Total loan balance

parties (RMB'0000) repayment

Company (RMB’0000) amount in amount in (RMB’0000)

current period

(RMB’0000)

Subsidiary

of TCL

Industries 250000 - - - - -

legal entity

Holdings

Co. Ltd.Credit or other financial business

Relationship with the Total amount Ending balance

Related parties Business type

Company (RMB'0000) (RMB’0000)

Subsidiary of TCL Related corporation Credit granting (bill The balance of

Industries Holdings discount) comprehensive credit 0

Co. Ltd. on any day shall not

Subsidiary of TCL Related legal entity Credit granting (bill exceed RMB 2.5 billion

Industries Holdings acceptance) (including loans bill

Co. Ltd. discounting and bill

20351.60

acceptance)

80Full Text of the Annual Report 2025 of TCL Technology Group Corporation

7. Other Major Related-Party Transactions

?Applicable □Not applicable

Related inquiries on the website for interim disclosure of major related-party transactions

Date of interim Website for

Title of announcement

disclosure disclosure

Announcement on the Anticipated Recurring Related-Party Transactions for 2025 April 29 2025

Announcement on the Related-Party Transactions with Shenzhen Jucai Supply Chain

April 29 2025

Technology Co. Ltd. in 2025

Report on the Execution of Recurring Related-Party Transactions in 2024 April 29 2025

Announcement on the Launch of Accounts Receivable Factoring and the Related-Party www.cninfo.com.cn

April 29 2025

Transaction

Announcement on Continuing to Provide Financial Services by TCL Technology Group

Finance Co. Ltd. to Related Parties and Renewing the Financial Services Agreement for April 29 2025

Related-Party Transactions

XV. 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 generating profits or losses accounting for 10% or more of the

net profit attributable to shareholders of the listed company.

(2) Contracting

□Applicable ?Not applicable

During the reporting period the Company had no entrusted projects generating profits or losses accounting for 10% or more of the

net profit attributable to shareholders of the listed company.

(3) Leases

□Applicable ?Not applicable

During the reporting period the Company had no entrusted projects generating profits or losses accounting for 10% or more of the

net profit attributable to shareholders of the listed company.

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)

81Full Text of the Annual Report 2025 of TCL Technology Group Corporation

Disclosure

Guarantee

date of Actual Actual Counter-

Guarantee Type of Collateral Term of Fulfilled for related

Obligor announcement occurrence guarantee guarantee

limit guarantee (if any) guarantee or not parties or

on guarantee date amount (if any)

not

limit

Shenzhen Qianhai

Sailing International Joint

March 7 With 3 days-

Supply Chain May 20 2025 76000 43778 liability / No No

2025 counter-guarantee 162 days

Management Co. guarantee

Ltd.Guangzhou Qihang Joint

November With 130 days-

International Supply May 20 2025 10000 10000 liability / No No

10 2025 counter-guarantee 162 days

Chain Co. Ltd. guarantee

Aijiexu New Guarantee in

Joint

Electronic Display April 28 proportion to 2.7-4.5

May 20 2025 35000 12373 liability / No No

Glass (Shenzhen) Co. 2020 shareholding years

guarantee

Ltd. percentage

Guarantee in

Inner Mongolia Joint

May 22 proportion to

Xinhua Bandaoti May 20 2025 58000 36400 liability / 4.4 years No No

2023 shareholding

Technology Co. Ltd. guarantee

percentage

Inner Mongolia Guarantee in

Joint

Xinhuan Silicon June 15 proportion to

May 20 2025 180000 136235 liability / 3.5 years No No

Energy Technology 2023 shareholding

guarantee

Co. Ltd. percentage

Total actual amount of

Total approved limit for such

359000 such guarantees in 94340

guarantees in Reporting Period (A1)

Reporting Period (A2)

Total actual balance

Total approved limit for such

of such guarantees at

guarantees at the end of the Reporting 359000 238785

the end of Reporting

Period (A3)

Period (A4)

Guarantees provided by the Company as the parent for its subsidiaries

Disclosure

Guarantee

date of Actual Actual

Guarantee Type of Collateral Counter-guarantee Term of Fulfilled for related

Obligor announcement occurrence guarantee

limit guarantee (if any) (if any) guarantee or not parties or

on guarantee date amount

not

limit

TCL MOKA Joint

January 29 days-90

INTERNATIONAL May 20 2025 100000 6421 liability / / No No

31 2025 days

LIMITED guarantee

Joint

Guangzhou Zhihui November

May 20 2025 30000 18360 liability / / 5.9 years No No

Shengke Co. Ltd. 29 2024

guarantee

TTE ELECTRONICS Joint

May 20 2025 10000 - 0 / / - - No

INDIA PRIVATE liability

82Full Text of the Annual Report 2025 of TCL Technology Group Corporation

LIMITED guarantee

Huizhou Moka

Joint

Technology September 56 days-

May 20 2025 20000 201 liability / / No No

Development Co. 12 2025 61 days

guarantee

Ltd.Moka Technology Joint

November 19 days-

(Guangdong) Co. May 20 2025 400000 163419 liability / / No No

24 2023 3.2 years

Ltd. guarantee

Shenzhen Zhixian Joint

Shijie Software May 20 2025 1000 - 0 liability / / - - No

Technology Co. Ltd. guarantee

Shenzhen Zhilian Joint

Shuchuang May 20 2025 1000 - 0 liability / / - - No

Technology Co. Ltd. guarantee

MOKA

TECHNOLOGY Joint

VIETNAM May 20 2025 20000 - 0 liability / / - - No

COMPANY guarantee

LIMITED

Joint

TCL Technology June 23

May 20 2025 500000 140576 liability / / 156 days No No

Investments Limited 2025

guarantee

TCL China Star Joint

December 5 days-

Optoelectronics May 20 2025 1620000 1069691 liability / / No No

22 2022 9.8 years

Technology Co. Ltd. guarantee

Guangdong Juhua Joint

Printed Display May 20 2025 5000 - 0 liability / / - - No

Technology Co. Ltd. guarantee

Guangzhou China

Joint

Star Optoelectronics June 9 20 days-

May 20 2025 950000 270615 liability / / No No

Bandaoti Display 2022 4.2 years

guarantee

Technology Co. Ltd.Guangzhou China

Joint

Star Optoelectronics

May 20 2025 1180000 - 0 liability / / - - No

Printed Display

guarantee

Technology Co. Ltd.China Star

Joint

Optoelectronics

May 20 2025 10000 - 0 liability / / - - No

International (HK)

guarantee

Limited

Huizhou China Star Joint

July 7 83 days-

Optoelectronics May 20 2025 610000 326979 liability / / No No

2023 2.7 years

Display Co. Ltd. guarantee

Shenzhen China Star May 20 2025 710000 June 15 267707 Joint / / 2.4-3.5 No No

83Full Text of the Annual Report 2025 of TCL Technology Group Corporation

Optoelectronics 2020 liability years

Bandaoti Display guarantee

Technology Co. Ltd.Suzhou China Star Joint

Optoelectronics May 20 2025 20000 - 0 liability / / - - No

Technology Co. Ltd. guarantee

Suzhou China Star Joint

August 30

Optoelectronics May 20 2025 60000 49040 liability / / 6.4 years No No

2022

Display Co. Ltd. guarantee

China Display

Joint

Optoelectronics June 6 5 days-

May 20 2025 100000 15701 liability / / No No

Technology 2025 117 days

guarantee

(Huizhou) Co. Ltd.Wuhan China Star

Joint

Optoelectronics June 29 19 days-

May 20 2025 1760000 1044530 liability / / No No

Bandaoti Display 2021 6.8 years

guarantee

Technology Co. Ltd.Wuhan China Star Joint

August 25 10 days-

Optoelectronics May 20 2025 1300000 636759 liability / / No No

2022 4.6 years

Technology Co. Ltd. guarantee

Highly (Tianjin) Joint

E-Commerce Co. May 20 2025 10000 - 0 liability / / - - No

Ltd. guarantee

Joint

Highly (Tianjin) September 7 days-

May 20 2025 61000 33154 liability / / No No

Technology Co. Ltd. 22 2025 64 days

guarantee

Joint

Mingsi Technology November

May 20 2025 20000 8435 liability / / 117 days No No

Co. Ltd. 27 2025

guarantee

Beijing Hecheng Joint

July 10

Nuoxin Technology May 20 2025 12000 12000 liability / / 191 days No No

2025

Co. Ltd. guarantee

Joint

Beijing Lingyun Data April 17 21 days-

May 20 2025 71000 14128 liability / / No No

Technology Co. Ltd. 2025 352 days

guarantee

Joint

Beijing Sunpiestore September 81 days-

May 20 2025 136000 125000 liability / / No No

Technology Co. Ltd. 4 2024 247 days

guarantee

Joint

Highly Information June 1 2 days-1.8

May 20 2025 429000 333724 liability / / No No

Industry Co. Ltd. 2024 years

guarantee

Qingdao Blue Joint

Business Consulting May 20 2025 1000 - 0 liability / / - - No

Co. Ltd. guarantee

84Full Text of the Annual Report 2025 of TCL Technology Group Corporation

Shaanxi TiTi Joint

Electronic May 20 2025 1000 - 0 liability / / - - No

Technology Co. Ltd. guarantee

Tianjin TiTi Joint

July 10

Yunchuang May 20 2025 10000 10000 liability / / 191 days No No

2025

Technology Co. Ltd. guarantee

Tianjin Wanfang Joint

July 10

Nuoxin Technology May 20 2025 10000 10000 liability / / 191 days No No

2025

Co. Ltd. guarantee

Tianjin Xincheng Joint

Pilot Technology Co. May 20 2025 1000 - 0 liability / / - - No

Ltd. guarantee

Joint

Beijing Youyi Online

May 20 2025 15000 - 0 liability / / - - No

Technology Co. Ltd.guarantee

Joint

Tianjin Printronics November

May 20 2025 53000 8346 liability / / 4.7 years No No

Circuit Corporation 17 2022

guarantee

TCL Technology Joint

August 31

Group (Tianjin) Co. May 20 2025 50000 30000 liability / / 1.7 years No No

2022

Ltd. guarantee

TCL Technology Joint

Group Finance Co. May 20 2025 150000 - 0 liability / / - - No

Ltd. guarantee

Joint

TCL Culture Media

May 20 2025 2000 - 0 liability / / - - No

(Shenzhen) Co. Ltd.guarantee

Total actual amount of

Total guarantee limit for subsidiaries such guarantees for

104390003448879

approved in the Reporting Period (B1) subsidiaries in

Reporting Period (B2)

Total balance of

Total guarantees limit for subsidiaries actual guarantees for

approved at the end of the Reporting 10439000 subsidiaries at the end 4594783

Period (B3) of the Reporting

Period (B4)

Guarantees provided between subsidiaries

Disclosure Guarantee

date of Actual ActualGuarantee Type of Collateral Counter-guarantee Term of Fulfilled for related

Obligor announcement occurrence guarantee

on guarantee limit guarantee (if any) (if any) guarantee or not parties ordate amount

limit not

Joint

Highly (Tianjin) November 92 days-

May 20 2025 20000 5950 liability / / No No

Technology Co. Ltd. 11 2025 147 days

guarantee

Techigh Circuit September Joint

May 20 2025 50000 26966 / / 7.7 years No No

Technology (Zhuhai) 9 2025 liability

85Full Text of the Annual Report 2025 of TCL Technology Group Corporation

Co. Ltd. guarantee

Huizhou China Star Joint

January

Optoelectronics May 20 2025 460000 79500 liability / / 2-2.2 years No No

162025

Display Co. Ltd. guarantee

Shenzhen China Star

Joint

Optoelectronics June 15

May 20 2025 1310000 669267 liability / / 2.4 years No No

Bandaoti Display 2020

guarantee

Technology Co. Ltd.Wuhan China Star

Joint

Optoelectronics March 24 2.2-4.8

May 20 2025 1000000 220596 liability / / No No

Bandaoti Display 2025 years

guarantee

Technology Co. Ltd.Wuhan China Star Joint

October 31 days-

Optoelectronics May 20 2025 500000 165809 liability / / No No

31 2025 5 years

Technology Co. Ltd. guarantee

Joint

TCL Moka January 28 days-

May 20 2025 29200 11584 liability / / No No

International Limited 23 2025 82 days

guarantee

Zhonghuan Energy Joint

July 21

(Inner Mongolia) Co. June 24 2017 7880 7880 liability / / 6.5 years No No

2017

Ltd. guarantee

Inner Mongolia Joint

March 22 April 30

Zhonghuan Crystal 234976 234976 liability / / 2.3 years No No

20212021

Materials Co. Ltd. guarantee

Ningxia Zhonghuan Joint

January 23 May 30

Solar Material Co. 459402 459402 liability / / 3.4 years No No

20222022

Ltd. guarantee

Inner Mongolia Joint

June 28

Zhonghuan Crystal May 26 2022 58410 58410 liability / / 3.5 years No No

2022

Materials Co. Ltd. guarantee

Tianjin Huanou New Joint

September

Energy Technology May 26 2022 66319 66319 liability / / 3.7 years No No

282022

Co. Ltd guarantee

Wuxi Zhonghuan Joint

June 30

Applied Materials May 26 2022 73164 73164 liability / / 3.5 years No No

2022

Co. Ltd. guarantee

Huansheng New Joint

September

Energy (Jiangsu) Co. May 26 2022 23170 23170 liability / / 1.7 years No No

302022

Ltd. guarantee

Huansheng New Joint

March 29

Energy (Jiangsu) Co. May 26 2022 45325 45325 liability / / 4.6 years No No

2023

Ltd. guarantee

Huansheng New February Joint

April 8 2023 69000 69000 / / 5 years No No

Energy (Tianjin) Co. 28 2024 liability

86Full Text of the Annual Report 2025 of TCL Technology Group Corporation

Ltd. guarantee

Huansheng New Joint

June 30

Energy (Inner May 16 2025 103000 54795 liability / / 5.5 years No No

2025

Mongolia) Co. Ltd. guarantee

Tianjin Huanou

Joint

Bandaoti September

May 16 2025 40000 40000 liability / / 9.8 years No No

Material&Technology 29 2025

guarantee

Co. Ltd.Joint

Tianjin Zhonghuan December

May 16 2025 9342 9342 liability / / 1 year No No

New Energy Co. Ltd. 26 2025

guarantee

Total actual amount of

Total guarantee limit for subsidiaries such guarantees for

5708900735705

approved in the Reporting Period (C1) subsidiaries in the

Reporting Period (C2)

Total balance of

Total guarantee limit for subsidiaries actual guarantees for

approved at the end of the Reporting 5708900 subsidiaries at the end 2321453

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

165069004278925

Reporting Period (A1+B1+C1) Reporting Period

(A2+B2+C2)

Total actual guarantee

Total approved guarantee limit at the

balance at the end of

end of the Reporting Period 16506900 7155020

the Reporting Period

(A3+B3+C3)

(A4+B4+C4)

Ratio of total guarantee balance (i.e. A4+B4+C4) to the

116.47%

Company’s net assets

Of which:

Balance of guarantees provided for shareholders the actual

controller and their related parties (D)

Balance of debt guarantees provided directly or indirectly for

1945674

obligors with an over 70% debt/asset ratio (E)

Amount by which the total guarantee amount exceeds 50% of

4083382

the Company’s net assets (F)

Total of the three above amounts (D+E+F) 4083382

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) During the Reporting Period the Company adjusts the guarantee limit to its controlling subsidiaries based on their demands. The

details are outlined as follows:

1. A guarantee limit of RMB 50 million previously provided by the Company to Highly Information Industry Co. Ltd. (Highly) was

87Full Text of the Annual Report 2025 of TCL Technology Group Corporation

re-allocated to Beijing Youyi Online Technology Co. Ltd which was a wholly-owned subsidiary of Highly.

2. Guarantee limits of RMB 3800 million for TCL China Star Optoelectronics Technology Co. Ltd. (TCL CSOT) and RMB 8000

million for Guangzhou China Star Optoelectronics Bandaoti Display Technology Co. Ltd. totaling RMB 11800 million were

re-allocated to Guangzhou China Star Optoelectronics Printed Display Technology Co. Ltd. a wholly-owned subsidiary of TCL

CSOT.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 2025 reviewed and approved at the 2024 Annual General Meeting held on May 20 2025.

(3) 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 6692670000. The joint guarantee has been filled in the "Company’s Guarantee for Subsidiaries" and "Guarantee Among

Subsidiaries" respectively.

(4) 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..Explanation of guarantees provided in composite forms: Not applicable

3. Entrusted Cash Asset Management

(1) Cash Entrusted for Wealth Management

?Applicable □Not applicable

Overview of cash entrusted for wealth management during the Reporting Period

Unit: RMB'0000

Impairment

allowance for

Unrecovered unrecovered

Type Funding source Amount Undue amount

overdue amount overdue amount of

wealth management

products

Bank’s wealth

management Self-funded 1415757.21 180724.69 0 0

product

Securities firm's

wealth

Self-funded 848554.14 393677.66 0 0

management

product

Trust plan Self-funded 680107.99 363807.62 0 0

Other Self-funded 626659.21 274028.68 0 0

Total Not applicable 1212238.65 0 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

Indicate whether there were any wealth management products with a single outstanding balance exceeding RMB 50 million pending

redemption at the end of the Reporting Period or any products overdue and unredeemed at the end of the Reporting Period

88Full Text of the Annual Report 2025 of TCL Technology Group Corporation

□Yes ?No □Not applicable

(2) Entrusted Loans

□Applicable ?Not applicable

During the Reporting Period the Company did not have any entrusted loans.

4. Other Major Contracts

□Applicable ?Not applicable

The Company did not have any other major contracts during the Reporting Period.XVI. Use of the Capital Raised

?Applicable □Not applicable

1. General Information about the Use of Capital Raised

?Applicable □Not applicable

Unit: RMB'0000

Utilization

rate of

Total capital Total amount of Total amount of Total Purpose Amount

Listing Total Net amountYear of Method of Used in the amount raised as at changed-purpose Total amount of changed-purpose proceeds and left idleraised

raising raising date of amount current used the end of funds during the changed-purpose funds as a % of that have location of for oversecurities raised (1) period the Reporting funds total amount not been the unused two(2) Reporting Period raised used amount years

Period (3)

=(2)/(1)

Issuance of

shares to

purchase

2025 assets and August 222025 435941.11 430099.57 430099.57 430099.57 100% Not applicable Not applicable Not applicable 0

Not

raise applicable

supporting

funds

Public

2025 issuance of Decembercorporate 29 2025 200000.00 199606.37 199606.37 199606.37 100% Not applicable Not applicable Not applicable 0

Not

applicable 0

bonds

Total -- -- 635941.11 629705.94 629705.94 629705.94 100% 0 0 0 0 -- 0

Overview of the use of capital raised: 1. With the approval of the Reply Agreeing to the Registration of TCL Technology Group

Corporation for the Issuance of Shares to Acquire Assets and Raising of Supporting Funds (CSRC Approval [2025] No. 1326) issued

by the China Securities Regulatory Commission (CSRC) the Company issued 1035489574 RMB-denominated ordinary shares

(A-shares) to specific targets in August 2025 at an issue price of RMB 4.21 per share. The total proceeds amounted to RMB

4359411106.54. After deducting issuance expenses of RMB 58415381.56 (excluding tax) the net proceeds received by the

Company totaled RMB 4300995724.98. The receipt of the aforementioned funds has been verified by RSM China CPA LLP

which issued the capital verification report RSM YZ [2025] No. 518Z0090. As of December 31 2025 the cumulative investment of

proceeds totaled RMB 4300.9957 million representing full utilization of the raised proceeds in accordance with regulations.

3. 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. The net proceeds from the Sci-Tech Innovation Corporate Bonds Publicly

Offered by TCL Technology Group Corporation to Professional Investors (Digital Economy) (Phase I) in 2025 were fully received

on December 19 2025. On the date of this announcement all proceeds raised have been fully utilized and the actual use of proceeds

is consistent with the intended use as stated in the prospectus.

89Full Text of the Annual Report 2025 of TCL Technology Group Corporation

2. Promised Use of Capital Raised

?Applicable □Not applicable

Unit: RMB'0000

Whether Date

Cumulative Cumulative Whether

the Investment when the Benefits

Committed Amount amount benefits Whether a material

project Total progress as project realized

Name of Listing investment Total invested invested as achieved as expected change

Nature of has been committed of the end reaches during

financing date of projects and adjusted during the of the end of of the end benefits has

project changed investment of the its the

project securities use of excess amount (1) Reporting the of the have been occurred

(including of capital period (3) intended Reporting

raised funds Period Reporting Reporting achieved to project

partial = (2)/(1) usable Period

Period (2) Period feasibility

changes) state

Committed investment projects

issuance

and cash

payment

to Payment of

August Investment Not Not

purchase transaction and M&A No 435941.11 430099.57 430099.57 430099.57 100.00% 0 0 No

22 2025 applicable applicable

assets and consideration

raise

supporting

funds in

2025

Subtotal of committed investment projects -- 435941.11 430099.57 430099.57 430099.57 -- -- 0 0 -- --

Application of excess proceeds

Not applicable

Total -- 435941.11 430099.57 430099.57 430099.57 -- -- 0 0 -- --

Explanation by item

for failure to meet

planned progress or

expected benefits

(including reasons Not applicable. The raised funds net of intermediary fees and related taxes have been fully utilized to pay the cash consideration for the acquisition of assets

for marking "not through a combination of share issuance and cash payment.applicable" for

"whether expected

benefits have been

achieved")

Explanation for

material change in Not applicable

project feasibility

Amount purpose

and utilization

Not applicable

progress of excess

proceeds

Explanation for

unauthorized

changes to the use or

Not applicable

illegal

misappropriation of

raised capital

Explanation for Not applicable

90Full Text of the Annual Report 2025 of TCL Technology Group Corporation

changes in the

implementation

location of projects

funded by raised

capital

Explanation for

adjustments to the

implementation

Not applicable

method of projects

funded by raised

capital

Explanation for Applicable

advance investment On August 14 2025 the Company convened the 12th meeting of the 8th Board of Directors and the 8th meeting of the 8th Supervisory Committee deliberating

in projects and and approving the Proposal on the Replacement of Self-owned and Self-raised Funds Previously Used for Cash Consideration with Raised Capital. The Board of

subsequent Directors agreed to use the raised capital to replace RMB 4300.9957 million of self-owned and self-raised funds previously used for the payment of cash

replacement of consideration. Shenwan Hongyuan Financing Services Co. Ltd. (the Independent Financial Advisor) issued a verification opinion expressing no objection to this

raised capital matter. All funds were fully replaced by December 31 2025.Temporary use of

idle raised capital for

Not applicable

supplementary

working capital

Amount and reasons

for surplus capital

Not applicable

arising from project

implementation

Intended use and

destination of As of December 31 2025 the capital raised had been fully utilized in accordance with relevant regulations.unused capital

Issues or other

circumstances

regarding the use Not applicable

and disclosure of

capital raised

3. Changes in projects funded by capital raised

□Applicable ?Not applicable

No such cases in the Reporting Period.

4. Verification opinions from intermediary agencies on the deposit and use of capital raised

?Applicable □Not applicable

(1) Verification opinions from the Independent Financial Advisor

Upon verification the Independent Financial Advisor believes that the Company’s 2025 Report on the Deposit and Use of

Capital Raised was approved by the Board. The Company performed necessary procedures in compliance with laws regulations and

exchange rules. Proceeds were placed in dedicated accounts and used for designated purposes. There has been no unauthorized

changes in use of proceeds no harm to shareholder interests and no illegal use of funds.

(2) Audit Opinion from the Auditor

The 2025 Special Report on the Annual Deposit Management and Use of Capital Raised of TCL TECH. was prepared in all

material respects in accordance with the Regulatory Rules on Fundraising by Listed Companies and relevant exchange regulations

and presents fairly the actual deposit management and use of proceeds by TCL TECH. in 2025.

91Full Text of the Annual Report 2025 of TCL Technology Group Corporation

XVII. Other Significant Events

□Applicable ?Not applicable

XVIII. Significant Events of the Company’s Subsidiaries

□Applicable ?Not applicable

92Full Text of the Annual Report 2025 of TCL Technology Group Corporation

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

converted

Shares Percentage New issues Bonusshares from Others Subtotal Shares Percentagecapital

reserve

I. Restricted

Shares 679459071 3.62% 2021781680 0 0 2923455 2024705135 2704164206 13.00%

1. Shares held by

state-owned legal 0 0.00% 1268952437 0 0 0 1268952437 1268952437 6.10%

entities

2. Shares held by

other domestic 679459071 3.62% 118764844 0 0 508425 119273269 798732340 3.84%

investors

Among which:

shares held by

domestic legal 0 0.00% 89073633 0 0 0 89073633 89073633 0.43%

entities

Shares held by

domestic 679459071 3.62% 29691211 0 0 508425 30199636 709658707 3.41%

individuals

3. Shares held by

foreign investors 0 0.00% 298099761 0 0 2415030 300514791 300514791 1.44%

Among which:

shares held by

foreign legal 0 0.00% 298099761 0 0 0 298099761 298099761 1.43%

entities

Shares held by

foreign individuals 0 0.00% 0 0 0 2415030 2415030 2415030 0.01%

4. Fund wealth

management 0 0.00% 335964638 0 0 0 335964638 335964638 1.62%

product etc.II. Non-restricted

shares 18099621696 96.38% 0 0 0 -2923455 -2923455 18096698241 87.00%

RMB-denominated 18099621696 96.38% 0 0 0 -2923455 -2923455 18096698241 87.00%

ordinary shares

III. Total shares 18779080767 100.00% 2021781680 0 0 0 2021781680 20800862447 100.00%

Reasons for changes in shares

?Applicable □Not applicable

1. On June 19 2025 the Company disclosed the Voluntary Announcement on the Non-trading Transfer of Certain Shares of the

Holders under the Employee Stock Ownership Plan. The Company has completed the second non-trading transfer under the

2021-2023 Employee Stock Ownership Plan (Phase II) and the first non-trading transfer under the 2021-2023 Employee Stock

Ownership Plan (Phase III). Among them 3834401 shares were transferred to the then-serving directors supervisors and senior

managers of the Company through non-trading transfer.

2. During the Reporting Period restricted shares held by senior management increased by 508425 shares as non-restricted shares

93Full Text of the Annual Report 2025 of TCL Technology Group Corporation

decreased by the same amount.

3. During the Reporting Period with the approval of the CSRC (Approval [2025] No. 1326) the Company issued shares and paid

cash to acquire assets and raised supporting funds resulting in an increase of 2021781680 restricted tradable shares in aggregate

and the total share capital of the Company increased to 20800862447 shares.Approval of changes in shares

?Applicable □Not applicable

With the approval of the CSRC (Approval [2025] No. 1326) the Company issued 986292106 shares to Shenzhen Major Industrial

Development Phase I Fund Co. Ltd. to acquire relevant assets and issued 1035489574 shares to 16 specific investors to raise

supporting funds. The total share capital of the Company increased by 2021781680 shares from 18779080767 shares to

20800862447 shares.

Transfer of share ownership

?Applicable □Not applicable

1. On June 19 2025 the Company disclosed the Voluntary Announcement on the Non-trading Transfer of Certain Shares of Holders

under the Employee Stock Ownership Plan. The Company has completed the second non-trading transfer under the 2021-2023

Employee Stock Ownership Plan (Phase II) and the first non-trading transfer under the 2021-2023 Employee Stock Ownership Plan

(Phase III). Among them 3834401 shares were transferred to the then-serving directors supervisors and senior managers of the

Company through non-trading transfer and 29430560 shares were transferred to other holders through non-trading transfer.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

Item January - December 2025

Basic earnings per share (RMB/share) 0.2333

Diluted earnings per share (RMB/share) 0.2301

Item December 31 2025

Net assets per share attributable to ordinary shareholders of the Company (RMB) 2.9534

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

Date of

Name of restricted increased released restricted Reason for

restriction

shareholder shares at restricted shares restricted shares shares at restriction

release

period-begin of the period of the period period-end

Sales

Shenzhen Major restrictions to

Industrial New share be removed 12

0 986292106 0 986292106 months after the

Development Phase issuance listing date of

I Fund Co. Ltd. new shares

(July 10 2025).

94Full Text of the Annual Report 2025 of TCL Technology Group Corporation

UBS AG 0 243467933 0 243467933

Shenzhen Runcheng

Investment

Management Co.Ltd. - Runcheng 0 114251781 0 114251781

Jinjin No. 1 Private

Securities

Investment Fund

China International

Capital Corporation 0 106888361 0 106888361

Limited

CITIC Securities

0 65320665 0 65320665 Sales

Co. Ltd. restrictions to

GF Securities Co. be removed 6

059382422059382422

Ltd. months after the

listing date of

MORGAN new shares

STANLEY & CO. New share

0 54631828 0 54631828 (August 22issuance

INTERNATIONAL 2025); such

PLC. restrictions

were removed

Guotai Haitong

0 45130641 0 45130641 on February 24

Securities Co. Ltd. 2026.China Construction

Bank - Efund - CSI 0 35741235 0 35741235

300 ETF Initiated

Changsha Lugu

Capital

035629453035629453

Management Co.Ltd.Other shareholders

participating in the

Company’s issuance

02750452550275045255

of shares to specific

investors for raising

supporting funds

Certain shares

held by

Directors senior directors senior

management and

679459071 2923455 - 682382526 management Not applicable

others of the and other

Company persons are

locked up as

required

Total 679459071 2024705135 0 2704164206 -- --

95Full Text of the Annual Report 2025 of TCL Technology Group Corporation

II. Issuance and Listing of Securities

1. Issuance of Securities (Preferred Shares Exclusive) in the Reporting Period

?Applicable □Not applicable

Names of Aggregate

Issue

stocks and number of Transaction

price (or Listing Index to disclosed Date of

their Issue date Issue quantity shares closing

interest date information disclosure

derivative permitted to date

rate)

securities be traded

Stocks

Issuance of

A-share

stocks to

July 3 RMB 986292106 July 10 986292106 Not July 7

specific

2025 4.42/share shares 2025 shares applicable 2025

investors

for asset For details please visit

acquisition http://www.cninfo.com.cn/

Issuance of

A-share

August RMB 1035489574 August 1035489574 Not August

stocks to

15 2025 4.21/share shares 22 2025 shares applicable 19 2025

specific

investors

Convertible corporate bonds convertible corporate bonds traded separately corporate bonds

Sci-Tech

Innovation

Corporate

Bonds

(Digital

Economy)

Publicly

December

Offered by

December RMB 500.00 December RMB 500.00 June 7 19 2025

TCL 1.74% www.cninfo.com.cn

17 2025 million 29 2025 million 2026 December

Technology

262025

Group

Corporation

Professional

Investors in

2025 (Phase

I) (Type 1)

Sci-Tech

Innovation

Corporate

Bonds

(Digital

December

Economy) RMB RMB

December December December 19 2025

Publicly 2.24% 1500.00 1500.00 www.cninfo.com.cn

17 2025 29 2025 19 2028 December

Offered by million million

262025

TCL

Technology

Group

Corporation

96Full Text of the Annual Report 2025 of TCL Technology Group Corporation

Professional

Investors in

2025 (Phase

I) (Type 2)

Other derivative securities

Not

applicable

Explanation on issuance of securities (preferred shares exclusive) during the Reporting Period

(1) With the approval of the CSRC (Approval [2025] No. 1326) the Company issued 986292106 shares to Shenzhen Major

Industrial Development Phase I Fund Co. Ltd. and 1035489574 shares to 16 specific investors to raise supporting funds. Upon

completion of these issuance the Company’s total share capital increased to 20800862447 shares.

(2) The Sci-Tech Innovation Corporate Bonds (Digital Economy) Publicly Offered by TCL Technology Group Corporation to

Professional Investors in 2025 (Phase I) (Type 1) Security Code: 524602.SZ; Security Abbreviation: 25TCLDK have a total

issuance amount of RMB 500 million a coupon rate of 1.74% and a bond term of 170 days.

(3) The Sci-Tech Innovation Corporate Bonds (Digital Economy) Publicly Offered by TCL Technology Group Corporation to

Professional Investors in 2025 (Phase I) (Type 2) Security Code: 524603.SZ; Security Abbreviation: 25TCLK1 have a total

issuance amount of RMB 1.5 billion a coupon rate of 2.24% and a bond term of 3 years.

2. Changes in the Total Number of Shares Shareholder Structure and the Structure of Assets and

Liabilities

?Applicable □Not applicable

(1) For changes in the total number of shares and shareholder structure please refer to "I. Changes in Shares" in this section.

(2) During the Reporting Period the Company completed the acquisition of a 21.5311% equity interest in Shenzhen China Star

Optoelectronics Bandaoti Display Technology Co. Ltd. by issuing shares and paying cash to Shenzhen Major Industrial

Development Phase I Fund Co. Ltd. Additionally proceeds from the issuance of shares to specific targets were successfully received

resulting in a corresponding increase in the Company’s total assets and net assets.

3. Existing Staff-Held Shares

□Applicable ?Not applicable

III. Shareholders and Actual Controller

1. Total Number of Shareholders and Their Shareholdings

Unit: share

Total number of

preferred

Total number of ordinary Total number of preferred

shareholders with

ordinary shareholders at shareholders with resumed voting

resumed voting

shareholders by 582581 the month-end 582032 0 rights at the month-end prior to the 0

rights by the end

the end of the prior to the disclosure of this Report (if any)

of the reporting

Reporting Period disclosure of this (see Note 8)

period (if any)

Report

(see Note 8)

Shareholdings of ordinary shareholders with more than 5% or the top 10 shareholders of ordinary shares (excluding the lending of shares under refinancing)

97Full Text of the Annual Report 2025 of TCL Technology Group Corporation

Number of Shares in pledge marked or frozen

Number of Number of

shares held at Increase/decrease

Name of Nature of Shareholding restricted non-restricted

the end of the during the

shareholder shareholder percentage ordinary ordinary

Reporting Reporting Period Status Number

shares held shares held

Period

Li Dongsheng Not applicable 0

Ningbo Jiutian Domestic

Liancheng Equity individual/Dom

Investment 6.09% 1266680807 1333002 674839554 591841253estic general Pledge of Jiutian 169320637

Partnership legal entity Liancheng

(Limited

Partnership)

Hong Kong

Securities Foreign legal

4.96% 1031899095 137707384 0 1031899095 Not applicable 0

Clearing entity

Company Ltd.Shenzhen Major

Industrial

Public legal

Development 4.74% 986292106 986292106 986292106 0 Not applicable 0

entity

Phase I Fund Co.Ltd.Huizhou

Public legal

Investment 2.58% 535767694 0 0 535767694 Not applicable 0

entity

Holding Co. Ltd.China Securities

Domestic

Finance

general legal 1.97% 410554710 0 0 410554710 Not applicable 0

Corporation

entity

Limited

Industrial and

Commercial Bank Fund wealth

of China - management 1.65% 343431410 19237040 0 343431410 Not applicable 0

Huatai-Pinebridge product etc.CSI 300 ETF

Foreign legal

UBS AG 1.44% 299241401 209055233 243467933 55773468 Not applicable 0

entity

Wuhan Optics

Valley Industrial Public legal

1.20% 249848896 60 0 249848896 In pledge 124000000

Investment Co. entity

Ltd.China

Construction Fund wealth

Bank - Efund - management 1.18% 245825052 22190787 35741235 210083817 Not applicable 0

CSI 300 ETF product etc.Initiated

Strategic investor or general legal

Among the aforementioned shareholders Shenzhen Major Industrial Development Phase I Fund Co. Ltd. UBS AG and

entity becoming top-10 ordinary

other investors became the Company’s top 10 shareholders due to their subscription of the newly issued shares by the

shareholders due to private

Company during the Reporting Period.placement of new shares (if any)

Among the top 10 shareholders Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity Investment Partnership

(Limited Partnership) became persons acting in concert by signing the Agreement on Concerted Action. Mr. Li

Note on the above shareholders’

Dongsheng holds 899786071 shares and Ningbo Jiutian Liancheng Equity Investment Partnership (Limited Partnership)

associations or concerted actions

holds 366894736 shares representing 1266680807 shares in total and becoming the largest shareholder of the

Company.Explanation of the above

shareholders’ involvement in Not applicable

entrusting/being entrusted with

98Full Text of the Annual Report 2025 of TCL Technology Group Corporation

voting rights or waiving voting

rights

Explanation of repurchase accounts

among the top 10 shareholders (if Not applicable

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-denominated

10318990951031899095

Company Ltd. ordinary shares

Li Dongsheng

Ningbo Jiutian Liancheng Equity RMB-denominated591841253 591841253

Investment Partnership (Limited ordinary shares

Partnership)

Huizhou Investment Holding Co. RMB-denominated

535767694535767694

Ltd. ordinary shares

China Securities Finance RMB-denominated

410554710410554710

Corporation Limited ordinary shares

Industrial and Commercial Bank of

RMB-denominated

China - Huatai-Pinebridge CSI 300 343431410 343431410

ordinary shares

ETF

Wuhan Optics Valley Industrial RMB-denominated

249848896249848896

Investment Co. Ltd. ordinary shares

China Construction Bank - Efund - RMB-denominated

210083817210083817

CSI 300 ETF Initiated ordinary shares

Perseverance Asset Management

RMB-denominated

Partnership (Limited Partnership) - 206800000 206800000

ordinary shares

Gaoyi Xiaofeng No. 2 Zhixin Fund

Bank of China Limited -

RMB-denominated

Huatai-Pinebridge CSI Photovoltaic 204008040 204008040

ordinary shares

Industry ETF

Related or acting-in-concert parties

Among the top 10 shareholders with non-restricted shares Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity

among top 10 non-restricted

Investment Partnership (Limited Partnership) became persons acting in concert by signing the Agreement on Concerted

outstanding shareholders as well as

Action. Mr. Li Dongsheng holds 224946517 non-restricted shares and Ningbo Jiutian Liancheng Equity Investment

between top 10 non-restricted

Partnership (Limited Partnership) holds 366894736 non-restricted shares representing 591841253 non-restricted

outstanding shareholders and top 10

shares in total.shareholders

Explanation for the top 10 ordinary

At the end of the Reporting Period Wuhan Optics Valley Industrial Investment Co. Ltd. among the shareholders above

shareholders participating in

held certain shares of the Company through a credit security account.securities margin 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.

99Full Text of the Annual Report 2025 of TCL Technology Group Corporation

2. The Company's controlling shareholders

Explanation of the Company’s non-existence 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 1266680807 shares in total and becoming the largest shareholder

of the Company. According to the Company Law a controlling shareholder refers to a shareholder who owns over 50% of a limited

liability company’s total capital or over 50% of a joint stock company’s total share capital; or a shareholder whose capital

contribution or shareholding ratio is less than 50% but whose voting rights attributable to such capital contribution or shareholding

are sufficient to materially influence the resolution of the shareholders’s meeting. According to the definition above the Company

has no controlling shareholder.Change of the controlling shareholder in the Reporting Period

□Applicable ?Not applicable

3. Actual controller and its acting-in-concert parties

Explanation of the Company’s non-existence of actual controller

The "actual controller" refers to an entity that while not a shareholder of a company effectively controls its actions or

operations through investment relationships contractual agreements or other arrangements. According to the definition above the

Company has no actual controller.Whether there is any shareholder holding more than 10% of the shares at the ultimate control level of the Company

□Yes ?No

4. The cumulative number of shares pledged by the Company's controlling shareholder or the largest

shareholder and its acting-in-concert parties accounts for 80% of their shareholdings in the Company

□Applicable ?Not applicable

5. Other corporate shareholders with a holding percentage over 10%

□Applicable ?Not applicable

6. Limits on shareholding reduction of the Company's controlling shareholder actual controller

reorganizer and other commitment entities

□Applicable ?Not applicable

IV. Specific Implementation of Share Repurchase During the Reporting Period

Progress on any share repurchase

?Applicable □Not applicable

100Full Text of the Annual Report 2025 of TCL Technology Group Corporation

Proportion of

repurchased

shares to the

Proposed Number of underlying

Disclosure Proposed number Proportion to Proposed Purpose of

repurchase repurchased shares

date of the of shares to be total share repurchase share

amount shares involved in

plan repurchased capital period repurchase

(RMB'0000) (shares) the equity

incentive

plan (if

applicable)

Based on a

maximum share Within 12

Based on the The total

repurchase price months from

approximately amount for

of RMB 6.70 per the date of

119403000 share For the

share (inclusive) approval of

shares that can repurchase Company’s

and a maximum this share

be repurchased shall be no less employee

total repurchase repurchase

April 16 the repurchased than RMB 700 stock

amount of RMB plan at the 174747985 -

2025 shares will million ownership

800 million the 9th meeting

account for (inclusive) and plans or

estimated number of the 8th

approximately no more than equity

of shares to be Board of

0.64% of the RMB 800 incentives

repurchased is Directors of

Company’s total million

approximately the

share capital. (inclusive)

119403000 Company

Progress on reducing the repurchased shares by means of centralized bidding

□Applicable ?Not applicable

V. Preferred Shares

□Applicable ?Not applicable

During the reporting period the Company did not have preferred shares.

101Full Text of the Annual Report 2025 of TCL Technology Group Corporation

Part VII Bonds

?Applicable □Not applicable

I. Enterprise Bonds

□Applicable ?Not applicable

No enterprise bonds in the Reporting Period.II. Corporate Bonds

?Applicable □Not applicable

1. General Information on Corporate Bonds

Unit: RMB'0000

Way of

principal

Date of Outstanding Coupon Place of

Bond name Abbr. Bond code Value date Maturity repayment

issuance balance rate trading

and interest

payment

Interest

Sci-Tech Innovation

payable

Corporate Bonds (Digital

annually

Economy) Publicly Offered Shenzhen

December 17 December 19 December 19 and

by TCL Technology Group 25TCLK1 524603.SZ 150000.00 2.24% Stock

2025 2025 2028 principal

Corporation to Professional Exchange

repayable

Investors in 2025 (Phase I)

in full upon

(Type 2)

maturity

Sci-Tech Innovation

Corporate Bonds (Digital Principal

Economy) Publicly Offered and interest Shenzhen

December 17 December 19

by TCL Technology Group 25TCLDK 524602.SZ June 7 2026 50000.00 1.74% payable in Stock

20252025

Corporation to Professional a lump sum Exchange

Investors in 2025 (Phase I) at maturity

(Type 1)

Interest

Sci-Tech Innovation

payable

Corporate Bonds (Digital

annually

Economy) Publicly Offered Shenzhen

and

by TCL Technology Group 24TCLK4 148804.SZ July 4 2024 July 8 2024 July 8 2029 100000.00 2.46% Stock

principal

Corporation to Professional Exchange

repayable

Investors in 2024 (Phase III)

in full upon

(Type 2)

maturity

Interest

Sci-Tech Innovation

payable

Corporate Bonds (Digital

annually

Economy) Publicly Offered Shenzhen

July 8 2029 and

by TCL Technology Group 24TCLK3 148803.SZ July 4 2024 July 8 2024 100000.00 2.29% Stock

(Note 1) principal

Corporation to Professional Exchange

repayable

Investors in 2024 (Phase III)

in full upon

(Type 1)

maturity

102Full Text of the Annual Report 2025 of TCL Technology Group Corporation

Interest

Sci-Tech Innovation payable

Corporate Bonds (Digital annually

Shenzhen

Economy) Publicly Offered April 11 April 11 2029 and

24TCLK2 148683.SZ April 9 2024 150000.00 2.69% Stock

by TCL Technology Group 2024 (Note 2) principal

Exchange

Corporation to Professional repayable

Investors in 2024 (Phase II) in full upon

maturity

Interest

Sci-Tech Innovation payable

Corporate Bonds (Digital annually

Shenzhen

Economy) Publicly Offered January 30 February 1 February 1 and

24TCLK1 148600.SZ 150000.00 2.10% Stock

by TCL Technology Group 2024 2024 2026 (Note 3) principal

Exchange

Corporation to Professional repayable

Investors in 2024 (Phase I) in full upon

maturity

Investor eligibility (if any) For qualified investors / for professional investors; not applicable for foreign bonds

Match to trade click to trade inquire to trade bid to trade negotiate to trade; not applicable

Applicable trading mechanism

for foreign bonds

Risk of termination of listing and trading (if any) and

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.Note 3: The redemption of the Sci-Tech Innovation Corporate Bonds (Digital Economy) Publicly Offered by TCL Technology

Group Corporation to Professional Investors in 2024 (Phase I) was completed on February 1 2026.Overdue bonds

□Applicable ?Not applicable

2. Triggering and implementation of issuer or investor option clauses and investor protection clauses

?Applicable □Not applicable

During the Reporting Period 24TCLK1 triggered its coupon rate adjustment option and its put option.According to the Prospectus for the Sci-Tech Innovation Corporate Bonds (Digital Economy) Publicly Offered by TCL Technology

Group Corporation to Professional Investors in 2024 (Phase I) the bondholders of 24TCLK1 were entitled to exercise a put option

during the redemption window (December 19-23 2024) allowing them to sell all or a portion of their bonds back to the issuer at

RMB 100 per note (excluding accrued interest). Concurrently the coupon rate was reset downward from 2.64% to 2.10% for the

subsequent one-year period with settlement of the repurchased bonds scheduled for February 5 2025. According to data from the

Shenzhen Branch of China Securities Depository and Clearing Corporation Limited 2400000 units of the 24TCLK1 bonds were

repurchased during the redemption window totaling RMB 240000000.00 in principal amount (exclusive of accrued interest).

103Full Text of the Annual Report 2025 of TCL Technology Group Corporation

According to the Announcement on the Resale Results of 24TCLK1 Bonds issued by TCL Technology Group Corporation the

Company conducted the resale of the repurchased bonds from February 6 to March 5 2025 with the number of bonds for resale not

exceeding 2400000 units. A total of 2400000 units of the bonds were successfully resold in this round. Upon completion of the

resale process no residual bonds remain pending resale and the remaining outstanding number of 24TCLK1 is 15000000 units.

3. Intermediary organizations

Name of Contact of

Name of bond Name of signing

intermediary Office address intermediary Tel.project accountants

institution institution

24TCLK4

24TCLK3 Citic Office Tower Chen Tianya

24TCLK2 CITIC Securities 48 Liangmaqiao Wang Xiaohu

-0755-23835483

24TCLK1 Co. Ltd. Road Chaoyang Feng Shiyang Liu

25TCLDK District Beijing Jian

25TCLK1

27th and 28th

24TCLK4

Floors China

24TCLK3 China International Li Xiaochen Wang

World Office 2

24TCLK2 Capital Chao Chen

No. 1 - 010-65051166

24TCLK1 Corporation Xiaodong Huang

Jianguomenwai

25TCLDK Limited Kaihua

Avenue Beijing

25TCLK1

P.R. China

24TCLK4

No. 618

24TCLK3

Shangcheng Road Sun Miaoyue Wu

24TCLK2 Guotai Haitong

China (Shanghai) - Lei Li Hongyu 021-38031979

24TCLK1 Securities Co. Ltd.

Pilot Free Trade Liu Xuanhua

25TCLDK

Zone

25TCLK1

24TCLK4

45F Century

24TCLK3

Shenwan Commercial Plaza Peng Dai Wang

24TCLK2

Hongyuan No. 989 Changle - Xueliang Rong 0755-23996949

24TCLK1

Securities Co. Ltd. Road Xuhui Heng

25TCLDK

District Shanghai

25TCLK1

24TCLK4

24TCLK3 F408 Yuanyang

24TCLK2 Beijing Jia Yuan Building 158 Wen Liangjuan

-0755-82789766

24TCLK1 Law Offices Fuxingmen Inner Wu Junchao

25TCLDK Avenue Beijing

25TCLK1

24TCLK4

Room 1101

24TCLK3 Da Hua Certified

Building 7 No. 16 Qiu Junzhou Jiang Qiu Junzhou Jiang

24TCLK2 Public Accountants

Xi Si Huan Zhong Xianmin Xiong Xianmin Xiong 010-58350087

24TCLK1 (Special General

Road Haidian Xin Xin

25TCLDK Partnership)

District Beijing

25TCLK1

25TCLDK Suite 1001-1 to Chen Zefeng Chen Chen Zefeng Chen

RSM China (LLP)

25TCLK1 1001-26 10th

0592-2528456

Zhihao Zhihao

floor Building 1

104Full Text of the Annual Report 2025 of TCL Technology Group Corporation

No. 22

Fuchengmenwai

St Xicheng Dist.Beijing China

Building 5 Galaxy

24TCLK4 SOHO

24TCLK3 No. 2 Nanzhugan

China Chengxin

24TCLK2 Hutong Yang Rui Wang

International Credit - 010-66428877

24TCLK1

Rating Co. Ltd. Chaoyangmen

25TCLDK Inner Avenue

25TCLK1 Dongcheng

District Beijing

Whether the above organizations were changed during the Reporting Period

□Yes ?No

4. Use of the Capital Raised

Unit: RMB'0000

Actual use of Whether

raised funds consistent with

(categorized by Operation of Rectification of the purpose

Agreed Actual use of

Total amount intended use Unused special illegal use of usage plan and

Bond code Abbr. purpose of Used Amount each type of

of raised funds excluding Amount fund-raising raised funds (if other

raised funds funds

temporary account (if any) any) agreements

working capital promised in the

replenishment) prospectus

Set up a

For the For the

fund-raising

repayment of repayment of

For the account to

interest-bearing interest-bearing

repayment of ensure that the

524603.SZ 25TCLK1 150000.00 150000.00 liabilities liabilities 0 None Consistent

interest-bearing funds raised are

(excluding (excluding

debts earmarked for

corporate corporate

special

bonds) bonds)

purposes

Set up a

For the For the

fund-raising

repayment of repayment of

For the account to

interest-bearing interest-bearing

repayment of ensure that the

524602.SZ 25TCLDK 50000.00 50000.00 liabilities liabilities 0 None Consistent

interest-bearing funds raised are

(excluding (excluding

debts earmarked for

corporate corporate

special

bonds) bonds)

purposes

Used to repay

interest-bearing

Used to repay Used to repay Set up a

liabilities or

interest-bearing interest-bearing fund-raising

replace

liabilities liabilities account to

self-owned

(excluding (excluding ensure that the

148804.SZ 24TCLK4 100000.00 funds that have 100000.00 0 None Consistent

corporate corporate funds raised are

been used to

bonds) or bonds) or earmarked for

repay matured

supplement supplement special

debts and to

working capital working capital purposes

supplement

working capital

105Full Text of the Annual Report 2025 of TCL Technology Group Corporation

Used to repay

interest-bearing

Used to repay Used to repay Set up a

liabilities or

interest-bearing interest-bearing fund-raising

replace

liabilities liabilities account to

self-owned

(excluding (excluding ensure that the

148803.SZ 24TCLK3 100000.00 funds that have 100000.00 0 None Consistent

corporate corporate funds raised are

been used to

bonds) or bonds) or earmarked for

repay matured

supplement supplement special

debts and to

working capital working capital purposes

supplement

working capital

Used to repay

interest-bearing

Used to repay Used to repay Set up a

liabilities or

interest-bearing interest-bearing fund-raising

replace

liabilities liabilities account to

self-owned

(excluding (excluding ensure that the

148683.SZ 24TCLK2 150000.00 funds that have 150000.00 0 None Consistent

corporate corporate funds raised are

been used to

bonds) or bonds) or earmarked for

repay matured

supplement supplement special

debts and to

working capital working capital purposes

supplement

working capital

Used to repay

interest-bearing

Used to repay Used to repay Set up a

liabilities or

interest-bearing interest-bearing fund-raising

replace

liabilities liabilities account to

self-owned

(excluding (excluding ensure that the

148600.SZ 24TCLK1 150000.00 funds that have 150000.00 0 None Consistent

corporate corporate funds raised are

been used to

bonds) or bonds) or earmarked for

repay matured

supplement supplement special

debts and to

working capital working capital purposes

supplement

working capital

5. Adjustments of credit rating results during the Reporting Period

□Applicable ?Not applicable

6. 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

Date of Outstanding Coupon Way of Place of

Bond name Abbr. Bond code Value date Maturity

issuance balance rate principal trading

repayment and

106Full Text of the Annual Report 2025 of TCL Technology Group Corporation

interest payment

2025

Sci-Tech

Innovation Interest payable

Bonds of annually and

25TCL Group MTN002 May 12 May 14 May 14 Inter-bank

TCL 102582064.IB 100000.00 2.50% principal

(Sci-Tech Innovation Bonds) 2025 2025 2030 market

Technology repayable in full

Group upon maturity

Corporation

(Phase II)

2025

Mid-Term

Notes of TCL

Technology Interest payable

Group annually and

25TCL Group MTN001B January 8 January January Inter-bank

Corporation 102580146.IB 100000.00 2.60% principal

(Sci-Tech Innovation Notes) 2025 10 2025 10 2030 market

(Phase I) repayable in full

(Sci-Tech upon maturity

Innovation

Notes) (Type

2025

Mid-Term

Notes of TCL

Technology Interest payable

Group annually and

25TCL Group MTN001A January 8 January January Inter-bank

Corporation 102580145.IB 100000.00 2.00% principal

(Sci-Tech Innovation Notes) 2025 10 2025 10 2028 market

(Phase I) repayable in full

(Sci-Tech upon maturity

Innovation

Notes) (Type

2023

Mid-Term

Notes of TCL

Interest payable

Technology

annually and

Group 23TCL Group MTN001 February February February Inter-bank

102380151.IB 150000.00 4.10% principal

Corporation (Sci-Tech Innovation Notes) 3 2023 7 2023 7 2026 market

repayable in full

(Phase I)

upon maturity

(Sci-Tech

Innovation

Notes)

Mid-term notes are issued to institutional investors in the national interbank bond

Investor eligibility (if any)

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 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

107Full Text of the Annual Report 2025 of TCL Technology Group Corporation

3. Intermediary institutions

Name of Contact of

Name of bond Name of signing

intermediary Office address intermediary Tel.project accountants

institution institution

8th Floor SPD

102582064.IB Shanghai Pudong Bank Building No.

102580146.IB Development Bank 909 Expo Avenue - Li Yansun 021-31884090

102580145.IB Co. Ltd. Pudong New Area

Shanghai

No. 69

Jianguomennei

Agricultural Bank

102380151.IB Avenue - Liu Zhaoying 010-85109688

of China

Dongcheng

District Beijing

No.55

102582064.IB Industrial and

Fuxingmennei

102580146.IB Commercial Bank - Wu Siyi 010-81012556

Avenue Xicheng

102580145.IB of China Limited

District Beijing

Floors 6-30 and

China CITIC Bank 32-42 Building 1

102582064.IB Corporation No. 10 Guanghua - Zhang Yao 010-66635950

Limited Road Chaoyang

District Beijing

No.1

Bank of China Fuxingmennei

102582064.IB - Zhang Shun 010-66595482

Limited Avenue Xicheng

District Beijing

No. 25 Finance

102582064.IB China Construction

Avenue Xicheng - Zhou Peng 010-67596478

102380151.IB Bank Corporation

District Beijing

Industrial Bank

Building No. 398

Middle Jiangbin

102580146.IB Industrial Bank Li Keyan Zhao 0755-82989325

Avenue Taijiang -

102580145.IB Co. Ltd. Zhao 0755-82989122

District Fuzhou

City Fujian

Province

102582064.IB F408 Yuanyang

102580146.IB Beijing Jia Yuan Building 158 Wen Liangjuan

-0755-82789766

102580145.IB Law Offices Fuxingmen Inner Wu Junchao

102380151.IB Avenue Beijing

Room 1101

102582064.IB Da Hua Certified

Building 7 No. 16

102580146.IB Public Accountants Jiang Xianmin Jiang Xianmin

Xi Si Huan Zhong 010-58350087

102580145.IB (Special General Xiong Xin Xiong Xin

Road Haidian

102380151.IB Partnership)

District Beijing

Suite 1001-1 to

1001-26 10th

Chen Zefeng Chen Chen Zefeng Chen

102582064.IB RSM China (LLP) floor Building 1 0592-2528456

No. 22 Zhihao Zhihao

Fuchengmenwai

St Xicheng Dist.

108Full Text of the Annual Report 2025 of TCL Technology Group Corporation

Beijing China

Building 5 Galaxy

SOHO

102582064.IB No. 2 Nanzhugan

China Chengxin

102580146.IB Hutong Yang Rui Wang

International Credit - 010-66428877

102580145.IB

Rating Co. Ltd. Chaoyangmen

102380151.IB Inner Avenue

Dongcheng

District Beijing

Whether the above organizations were changed during the Reporting Period

□Yes ?No

4. Use of the Capital Raised

Unit: RMB'0000

Whether

consistent with

Operation of Rectification the purpose

Name of bond Total amount Agreed purpose Used Unused special of illegal use usage plan and

project of raised funds of raised funds Amount Amount fund-raising of raised funds other

account (if any) (if any) agreements

promised in

the prospectus

Set up a

25TCL Group All for the fund-raising

MTN002 repayment of account to

(Sci-Tech 100000.00 loans from 100000.00 0 ensure that the None Consistent

Innovation financial funds raised are

Bonds) institutions earmarked for

special purposes

Set up a

All for the

fund-raising

25TCL Group redemption of

account to

MTN001B the issuer’s 2022

100000.00 100000.00 0 ensure that the None Consistent

(Sci-Tech Inno First Phase

funds raised are

vation Notes) Medium-Term

earmarked for

Notes

special purposes

Set up a

All for the

fund-raising

25TCL Group redemption of

account to

MTN001A the issuer’s 2022

100000.00 100000.00 0 ensure that the None Consistent

(Sci-Tech Inno First Phase

funds raised are

vation Notes) Medium-Term

earmarked for

Notes

special purposes

Set up a

All for the

fund-raising

23TCL Group repayment of

account to

MTN001 working capital

150000.00 150000.00 0 ensure that the None Consistent

(Sci-Tech Inno loans and

funds raised are

vation Notes) replenishment of

earmarked for

working capital

special purposes

The raised funds were used for construction projects

109Full Text of the Annual Report 2025 of TCL Technology Group Corporation

□Applicable ?Not applicable

The Company changed the usage of above funds raised from bonds during the Reporting Period

□Applicable ?Not applicable

5. Adjustments of credit rating results during the Reporting Period

□Applicable ?Not applicable

6. 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. Overdue Interest-Bearing Debts other than Bonds at Period End

□Applicable ?Not applicable

VII. Any Violation of Rules and Regulations during the Reporting Period

□Yes ?No

VIII. Key Accounting Data and Financial Indicators of the Company for the Past Two Years

as at the End of the Reporting Period

Unit: RMB'0000

Item End of the Reporting Period December 31 2024 Change

Current ratio 0.97 0.86 12.79%

Debt/asset ratio 64.23% 64.92% -0.69%

Quick ratio 0.68 0.61 11.48%

2025 2024 Change

Net profits attributable to the

company's shareholders after 289688 29836 870.95%

non-recurring gains and

losses

Debt-to-EBITDA ratio 16.18% 12.85% 3.32%

Interest coverage ratio 1.04 0.18 477.78%

Cash interest coverage ratio 9.47 6.45 46.96%

110Full Text of the Annual Report 2025 of TCL Technology Group Corporation

EBITDA coverage ratio 7.42 5.78 28.37%

Debt repayment ratio 100% 100% 0.00

Interest repayment ratio 100% 100% 0.00

Note: The YoY increase in net profit attributable to shareholders of the company after non-recurring gains and losses interest

coverage ratio and cash coverage ratio was primarily due to the improvement in performance during the Reporting Period.

111RSM China (LLP)

Headquarters: Suite 1001-1 to 1001-26 10th floor Building

1 No. 22 Fuchengmenwai St

Xicheng Dist. Beijing China 100037

TEL: 010-6600 1391 FAX: 010-6600 1392

E-mail:bj@rsmchina.com.cn

Auditor's Report https://www.rsm.global/china/

RCSZ [2026] No. 518Z0753

To all the shareholders of TCL Technology Group Corporation:

I. Opinion

We have audited the financial statements of TCL Technology Group (hereinafter

referred to as "TCL TECH.") which include the consolidated and parent company's

balance sheets as at December 31 2025 the consolidated and parent company's

statements on income for the year 2025 the statements on cash flows and statements

on changes in shareholders' equity for the year then ended as well as the notes to

these financial statements.In our opinion the accompanying financial statements present fairly in all

material aspects the consolidated and parent company's financial position of TCL

TECH. as at December 31 2025 and the consolidated and parent company's

operational results and cash flows for the year 2025 in accordance with the

Accounting Standards for Business Enterprises.II. Basis for Opinion

We conducted our audits in accordance with the Auditing Standards for Chinese

Certified Public Accountants. Our responsibilities under those standards are further

described in the Auditor’s Responsibilities for Audit of Financial Statements section

in the auditor's report. In accordance with the Code of Ethics for Chinese Certified

Public Accountants and the Independence Standards for Chinese Certified Public

Accountants we are independent of TCL TECH. and have complied with the

provisions of the Independence Standards applicable to the audit of financial

statements of public interest entities and have fulfilled our other responsibilities with

respect to professional ethics. We believe that the audit evidence we have obtained is

sufficient and appropriate to provide a basis for our opinions.

1III. Key Audit Matters

Key audit matters are those matters that in our professional judgment were of

most significance in our audit of the financial statements for the current period. These

matters were addressed in the context of our audit of the financial statements as a

whole and in forming our opinion thereon and we do not provide a separate opinion

on these matters.(I) Revenue Recognition

Please refer to the accounting policies as stated in 29 "Revenue Recognition Principles and

Measurement Methods" under Note III to the financial statements and 60 "Operation Revenue and

Operating Cost" under Note V to the financial statements.Key Audit Matters Audit response

The important audit procedures we carried out in respect

to revenue recognition include:

The Company's operating revenue in the

current period compared with that of * to understand and assess whether the management's

RMB 164.8 billion in the previous period design and operation of key internal controls in

accounts for approximately RMB 184.1 respect to revenue recognition are effective;

billion increasing by 11.67%. As * to understand and assess whether the management's

operating revenue is a key performance selection and implementation of the policies related

indicator for the Company there is an to revenue recognition complied with the Accounting

inherent risk that the management may Standards for Business Enterprises;

manipulate the timing of revenue

recognition to meet specific targets or * to select samples of recorded transactions with

expectations. Given the material impact of revenue for the year and examine relevant supporting

current-period revenue recognition on the documents involved during the transaction process

financial statements we have identified including outbound delivery orders customer receipt

this as a key audit matter. records sale invoices customs declarations bills of

lading and fund receipt proofs;

* to select samples of the recorded transactions with

revenue around the balance sheet date and examined

outbound delivery orders and other supporting

documents to assess whether the revenue has been

recorded for the appropriate accounting period;

* to obtain the Company's sales list for the year and go

through the analytic review procedures on the

operating revenue so as to determine how reasonable

changes in the revenue and gross profit margin for

the current period were;

* to conduct confirmation procedures with key

accounts and inquire about the sales amount and the

account receivable balance incurred for the current

period; and

* to examine whether the information in connection

with revenue was duly presented and disclosed in the

financial statements.Based on the audit work executed we believe that the Company's recognition of revenue complies

with relevant requirements of the Accounting Standards for Business Enterprises.

2III. Key Audit Matters (Continued)

(II) Measurement of fixed assets and construction in progress

Please refer to the accounting policies as stated in 19 "Fixed Assets" and 20 "Construction in

Progress" under Note III to the financial statements and 20 "Fixed Assets" and 21 "Construction

in Progress" under Note V to the consolidated financial statements.Key Audit Matters Audit response

The important audit procedures we carried out in

respect to the measurement of fixed assets and

construction in progress include:

As of December 31 2025 the total

amount of fixed assets and construction * to understand and evaluate the effectiveness of the

in progress in the Company's design of internal controls related to fixed assets and

consolidated statements was RMB 181.2 construction in progress and test the effectiveness of

billion accounting for 48.61% of the the implementation of key controls;

total assets. The fixed assets and

construction in progress mainly included * to obtain a list of new assets in the current period

machinery equipment and buildings and carry out a spot check of procurement contracts

used for display products new energy payment documents invoices and acceptance slips

photovoltaic products and other silicon for large-value assets;

materials. Matters such as the

* to obtain the new settlement statements for

recognition of assets meeting construction in the current period examine them

capitalization criteria the timing of against the amounts recorded in the books and

transferring construction-in-progress to review the accuracy and completeness of the entries;

fixed assets and commencing

depreciation as well as determining the * to discuss with the management and judge the

useful lives and residual values of accuracy of the point in time when the construction in

relevant fixed assets all involve progress is transferred to fixed assets and the

significant management judgments. As reasonableness of the expected useful life of fixed

such we have identified the assets;

measurement of fixed assets and

construction-in-progress as a key audit * to inspect the construction-in-progress site as the

matter. balance sheet date approaches assess the work

progress and verify it against the book entries;

* to obtain the ownership certificate of fixed assets and

the company inventory sheet and conduct on-site

checks of important assets;

* to obtain the statement of depreciation provision for

fixed assets and recalculate whether the depreciation

has been provisioned accurately; and

* to examine whether the information in connection

with fixed assets and construction in progress has

been duly presented and disclosed in the financial

statements.Based on the audit work executed we believe that the Company measured the fixed assets and

construction in progress in accordance with relevant requirements of the Accounting Standards

for Business Enterprises.

3III. Key Audit Matters (Continued)

(III) Related-party Transactions

Please refer to "XI. Related Parties and Related Transactions" under the notes to the financial

statements.Key Audit Matters Audit response

The important audit procedures we carried out in respect

to related transactions include:

The Company's daily related party

transactions in 2025 compared with that * to examine and evaluate the internal controls adopted

of RMB 36.2 billion in previous period by management for identifying and disclosing the

account for approximately RMB 40.3 relationships between related parties and related

billion increasing by 11.46%. transactions and review the effectiveness of the

The integrity of the disclosure of related design and implementation of the internal controls;

parties and related transactions the

authenticity of related transactions and the * to obtain management representations regarding the

fairness of transaction prices will pose an completeness of related party relationships and

important impact on the fair presentation transactions and secure the list of related party

of the financial statements. Therefore we relationships provided by the management then

identify the related balance and verify it against information obtained from other

transactions as key matters in this audit. public sources;

* to examine the customers suppliers and other

stakeholders that deal with the Company to identify

whether there are any omissions for the related

parties. to acquire the resolutions of the board of

directors and the general meeting in connection with

related transactions examine the decision-making

authority and procedures of the related transactions

judge the legality and compliance of the related

transactions and determine whether they have been

properly authorized and approved;

* to compare the prices for selling goods to the related

parties with those of similar products sold to

unrelated parties to determine the fairness of the

prices of related transactions; and

* to acquire the incurred amount and balance details of

related transactions and examine the financial

vouchers corresponding to the transactions and the

attached contracts or orders dispatch notes

statements invoices and bank documents for the

selected specific samples; and conduct confirmation

procedures for the incurred amounts and balances of

the related transactions with important related parties.Based on the audit work we've fulfilled we believe that the completeness of the disclosure of

related-party relationships by the management the authenticity of related-party transactions and the

fairness of transaction prices are reasonable.

4IV. Other Information

TCL TECH.'s management (hereinafter referred to as the "management") is

responsible for the other information. Other information includes the information

covered in the Company's Annual Report 2025 but excludes the financial statements

and our auditor's report thereon.Our opinion on the financial statements does not cover other information and we

do not express any form of assurance or conclusions thereon.As part of our audit of the financial statements we are required to read the other

information and consider whether it is materially inconsistent with the financial

statements or our audit findings or whether it otherwise appears to be materially

misstated.If based on the work we have performed we conclude that there is a material

misstatement for other information we are required to report that fact. We have

nothing to report in this regard.V. Responsibilities of Management and Those Charged with Governance

for Financial Statements

The management is responsible for the preparation of the financial statements

that provide a fair view in accordance with the Accounting Standards for Business

Enterprises and for designing implementing and maintaining such internal controls

as the management determines are necessary to enable the preparation of financial

statements that are free from material misstatement whether due to fraud or error.In preparing the financial statements the management is responsible for

assessing TCL TECH.'s ability to continue as a going concern disclosing as

applicable matters related to going concerns and using the going concerns as a basis

of accounting unless the management either intends to liquidate TCL TECH. or to

cease operations or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing TCL TECH.'s

financial reporting process.VI. Auditor's Responsibilities for Audit of Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial

statements as a whole are free from material misstatement whether due to fraud or

error and to issue an auditor's report that states our opinions. Reasonable assurance is

5a high level of assurance but it does not guarantee that an audit conducted in

accordance with auditing standards will always detect a material misstatement when

one exists. Misstatements can arise from fraud or error and are considered material if

individually or in aggregate they could reasonably be expected to influence the

economic decisions of users taken on the basis of these financial statements.As part of an audit in accordance with the auditing standards we exercise

professional judgment and maintain professional skepticism throughout the audit. We

also conduct the following works:

1．We identify and assess the risks of material misstatement in the financial

statements due to fraud or error design and perform audit procedures responsive to

those risks and obtain sufficient appropriate audit evidence to provide a basis for our

audit opinion. The risk of not detecting a material misstatement resulting from fraud is

higher than for one resulting from error as fraud may involve collusion forgery

intentional omissions misrepresentations or the overriding of internal controls.

2．We obtain an understanding of internal controls relevant to the audit in order

to design audit procedures that are appropriate to the circumstances.

3．We evaluate the appropriateness of accounting policies used and determine

how reasonable accounting estimates and related disclosures made by the

management are.

4．We conclude the appropriateness of the management's use of the going

concern assumption of accounting. Meanwhile based on the audit evidence obtained

we draw a conclusion on whether a material uncertainty exists related to events or

conditions that may cast significant doubt on TCL TECH.'s ability to continue as a

going concern. If we conclude that a material uncertainty exists auditing standards

require us to draw users' attention to the related disclosures in the financial statements

through our audit report. Where such disclosures are inadequate we are required to

express a modified opinion. Our conclusions are based on the audit evidence obtained

up to the date of our auditor's report. However future events or conditions may cause

TCL TECH. to cease to continue as a going concern.

5．We evaluate the overall presentation structure and content of the financial

statements and whether the financial statements represent the underlying transactions

and events in a manner that maintains fair presentation.

6．We obtain sufficient and appropriate audit evidence regarding the financial

6information of the entities or business activities within the TCL TECH. to express an

opinion on the financial statements. We are responsible for directing supervising and

performing the Company audits and undertaking full responsibility for audit opinions.We communicate with those charged with governance regarding among other

matters the planned scope and timing of the audit and significant audit findings

including any noteworthy deficiencies in internal controls that we identify during our

audit.We also provide the governance body with a declaration regarding compliance

with ethical requirements related to independence and communicate all relationships

and other matters that could reasonably be considered to affect our

independence—along with any applicable safeguards.From the matters communicated with those charged with governance we

determine those matters that were of most significance in the audit of the financial

statements of the current period and these therefore constitute the key audit matters.We describe these matters in our auditor's report unless prohibited by law or

regulation from making such public disclosures or in exceptional circumstances we

conclude that reporting a matter would result in consequences so adverse that they

would reasonably outweigh the public interest benefits of disclosure.(Intentionally left blank)

7(This page is intentionally left blank. This page is the signature and seal page of

the Audit Report (RCSZ [2026] No. 518Z0753) of TCL Technology Group

Corporation.)

RSM China Chinese Certified Public Accountant: _____________

(LLP) Chen Zefeng (Partner)

Chinese Certified Public Accountant: _____________

Xiao Mengying

Beijing·China Chinese Certified Public Accountant: _____________

Chen Zhihao

March 26 2026

8TCL Technology Group Corporation

Consolidated Balance Sheet

(RMB’000)

Note V December 31 2025 December 31 2024

Current assets

Cash and cash equivalents 1 30460060 23007773

Held-for-trading financial assets 2 14473193 16560971

Derivative financial assets 3 78957 172489

Notes receivable 4 480225 189853

Accounts receivable 5 22153003 22242153

Receivables financing 6 625789 831407

Prepayments 7 1909444 2090492

Other receivables 8 3500623 4723140

Inventories 9 18370708 17594133

Contract assets 10 385576 395117

Held-for-sale assets 11 363065 -

Non-current assets due within one year 12 1564945 849706

Other current assets 13 8411624 6716209

Total current assets 102777212 95373443

Non-current assets

Debt investments 14 578159 147272

Long-term receivables 15 120628 443741

Long-term equity investments 16 23349193 24595634

Investments in other equity instruments 17 356456 387851

Other non-current financial assets 18 3172659 2225200

Investment properties 19 401873 612734

Fixed assets 20 165003156 170512009

Construction in progress 21 16176848 23580503

Right-of-use assets 22 6189174 6697688

Intangible assets 23 18467310 18117467

Development expenditures 24 1204955 1831444

Goodwill 25 11409749 11159705

Long-term deferred expenses 26 2282883 2163457

Deferred income tax assets 27 2936332 2486427

Other non-current assets 28 18311727 17917341

Total non-current assets 269961102 282878473

Total assets 372738314 378251916

Person-in-ch

Person-in-charge arge of the

Legal of financial 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.

1TCL Technology Group Corporation

Consolidated Balance Sheet (Continued)

(RMB’000)

Liabilities and shareholders' equity Note V December 31 2025 December 31 2024

Current liabilities

Short-term borrowings 30 7552523 8193283

Borrowings from the Central Bank 31 29756 600926

Customer deposits and deposits from

other banks and financial institutions 32 364714 177654

Held-for-trading financial liabilities 33 235717 232406

Derivative financial liabilities 34 50435 248845

Notes payable 35 6465600 7107842

Accounts payable 36 32251944 29347615

Advances from customers 37 6823 2689

Contract liabilities 38 2009842 1969271

Employee compensation payable 39 4966488 4188237

Taxes and levies payable 40 1238334 1206098

Other payables 41 17715638 20072069

Held-for-sale liabilities 42 71510 -

Non-current liabilities due within one year 43 30909784 36224483

Other current liabilities 44 1662144 1484915

Total current liabilities 105531252 111056333

Non-current liabilities

Long-term borrowings 45 116139349 116815131

Bonds payable 46 7981874 6488620

Lease liabilities 47 4148598 6334786

Long-term payables 48 1388759 1994812

Long-term employee compensation

payable 39 21605 22424

Deferred income 49 2151176 1014891

Deferred income tax liabilities 27 1775607 1544449

Estimated liabilities 50 231480 249218

Other non-current liabilities 51 25635 27508

Total non-current liabilities 133864083 134491839

Total liabilities 239395335 245548172

Share capital 52 20800862 18779081

Capital reserves 53 14155725 10553081

Less: Treasury share 54 1503652 919322

Other comprehensive income 55 (1042359) (740459)

Surplus reserves 56 4096815 3974386

Specific reserves 57 5598 7189

General risk reserve 58 8934 8934

Retained earnings 59 24910834 21504719

Total equity attributable to shareholders of

the parent company 61432757 53167609

Non-controlling interests 71910222 79536135

Total shareholders’ equity 133342979 132703744

Total liabilities and shareholders' equity 372738314 378251916

Person-in-ch

Person-in-charge arge of the

Legal of financial 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.

2TCL Technology Group Corporation

Consolidated Income Statement

(RMB’000)

Note V 2025 2024

I. Total revenue 184210915 164962838

Including: Operating revenue 60 184063391 164822833

Interest income 61 147524 140005

Less: Operating cost 60 159857487 145722436

Interest expenditures 61 13055 22073

Taxes and levies 62 1274802 1048971

Sales expenses 63 2403614 2054073

Administrative expenses 64 4601265 4446290

R&D expenses 65 11144742 9433287

Financial expenses 66 4769706 4179270

Including: Interest expenses 4952205 5052071

Interest income 626161 687992

Add: Other income 67 2447242 1953415

Return on investment 68 2522300 1399540

Including: Return on investment in

joint ventures and associates 1720847 436920

Exchange gain 61 898 (362)

Gain on changes in fair value 69 988618 479854

Credit impairment loss 70 (76606) 1409

Asset impairment loss 71 (5543446) (6026734)

Asset disposal income 72 3125 38468

II. Operating profit 488375 (4097972)

Add: Non-operating income 73 114401 291558

Less: Non-operating expenses 74 168131 147391

III. Gross profit 434645 (3953805)

Less: Income tax expense 75 220798 202337

IV. Net profits 213847 (4156142)

(I) Classification by business continuity

1. Net profits from continuing operations 213847 (4156142)

2. Net profits from discontinued operations - -

(II) Classification by ownership

1. Net profits attributable to shareholders of

the Company 4516782 1564112

2. Net profit attributable to non-controlling

interests (4302935) (5720254)

V. Other comprehensive income net of tax 55 (306511) 182693

(I) Other comprehensive income that cannot

be subsequently reclassified into profit or loss (181244) 259224

(II) Other comprehensive income that may

subsequently be reclassified into profit or loss (125267) (76531)

upon satisfaction of prescribed conditions

VI. Total comprehensive income (92664) (3973449)

Total comprehensive income attributable to

the shareholders of the parent company 4214882 1769451

Total comprehensive income attributable to

non-controlling interests (4307546) (5742900)

VII. Earnings per share: 76

(I) Basic earnings per share (RMB yuan) 0.2333 0.0842

(II) Diluted earnings per share (RMB yuan) 0.2301 0.0833

Person-in-char

Person-in-char ge of the

Legal ge of financial accounting

representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei

The attached notes to the financial statements form an integral part of the financial statements.

3TCL Technology Group Corporation

Consolidated Cash Flow Statement

(RMB’000)

Note V 2025 2024

I. Net cash generated from operating activities:

Proceeds from the sale of commodities and rendering of

services 204302634 169223957

Net increase/(decrease) in deposits from customers banks

and other financial institutions 185015 (93192)

Net increase/(decrease) in borrowings from the Central

Bank (568600) (394269)

Cash received from interest handling charge and

commission 144936 139471

Tax and levy rebates 5611198 5175168

Cash generated from other operating activities 77 12004168 9568245

Sub-total of cash generated from operating activities 221679351 183619380

Payments for commodities and services (143307703) (121798739)

Net (increase)/decrease in loans and advances to customers 401071 468915

Net (increase)/decrease in deposits with the Central Bank

banks and other financial institutions (82917) 62182

Cash paid for interest service charges and commissions (19742) -

Cash paid to and for employees (13883896) (12211408)

Taxes and levies paid (5397620) (4500413)

Cash used in other operating activities 78 (15366846) (16113346)

Sub-total of cash used in operating activities (177657653) (154092809)

Net cash generated from operating activities 83 44021698 29526571

II. Cash flow generated from investing activities:

Proceeds from disinvestments 115977942 81620356

Proceeds from return on investments 3374014 3367135

Net proceeds from disposal of fixed assets intangible

assets and other long-term assets 161106 316320

Net proceeds from disposal of subsidiaries and other

business units - 35197

Cash generated from other investing activities 79 680220 825135

Sub-total of cash generated from investment activities 120193282 86164143

Payments for the acquisition and construction of fixed

assets intangible assets and other long-term assets (16278407) (23692323)

Payments for investments (117324904) (87916550)

Net payments for acquiring subsidiaries and other business

units 83 (6366180) (4447)

Cash used in other investing activities 80 (477950) (1232830)

Subtotal of cash used in investing activities (140447441) (112846150)

Net cash used in investing activities (20254159) (26682007)

Person-in-c

Person-in-charge harge of the

Legal of financial accounting

representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei

The attached notes to the financial statements form an integral part of the financial statements.

4TCL Technology Group Corporation

Consolidated Cash Flow Statement (Continued)

(RMB’000)

Note V 2025 2024

III. Cash flow generated from financing activities:

Capital contributions received 15615589 99635

Including: Capital contributions by non-controlling

interests to subsidiaries 11317763 99635

Borrowings raised 81469456 71661298

Cash received from bond issue 7240000 5000000

Cash generated from other financing activities 81 572729 1032222

Sub-total of cash generated from financing activities 104897774 77793155

Cash paid for debt repayment (100687164) (69624231)

Cash paid for distribution of dividends and profits or

the repayment of interests (6140420) (7922416)

Including: Dividend and Profit paid by subsidiaries to

non-controlling shareholders (64615) (1039878)

Cash used in other financing activities 82 (16318269) (2252450)

Subtotal of cash used in financing activities (123145853) (79799097)

Net cash generated from financing activities (18248079) (2005942)

IV. Effect of exchange rate changes on cash and cash

equivalents 185088 25818

V. Net increase in cash and cash equivalents 5704548 864440

Add: Beginning balance of cash and cash equivalents 20861255 19996815

VI. Ending balance of cash and cash equivalents 84 26565803 20861255

Person-in-ch

Person-in-charge arge of the

Legal of financial financial

representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei

The attached notes to the financial statements form an integral part of the financial statements.

5TCL Technology Group Corporation

Consolidated Statement of Changes in Shareholders’ Equity

(RMB’000)

2025

Equity attributable to shareholders of the parent company

Share capital Capital

Other

Treasury share Specific comprehensive Surplus

General

risk Retained Non-controlling

Total

reserves reserves income 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 2021781 3602644 (584330) (1591) (301900) 122429 - 3406115 (7625913) 639235

(I) Total comprehensive income - - - - (301869) - - 4516782 (4307546) (92633)

(II) Capital contributed and reduced by

shareholders 2021781 4612245 (584330) - - - - - (3205859) 2843837

1. Capital contributed by shareholders 2021781 6638908 (800000) - - - - - 11302415 19163104

2. Share-based payments included in owners'

equity - 187471 215670 - - - - - 99190 502331

3. Amount of bond issuance included in

owners' equity - - - - - - - - - -

4. Others - (2214134) - - - - - - (14607464) (16821598)

(III) Profit distribution - - - - - 122429 - (1110698) (104030) (1092299)

1. Appropriation of surplus reserves - - - - - 122429 - (122429) - -

2. Appropriation to shareholders - - - - - - - (988269) (104030) (1092299)

3. Others - - - - - - - - - -

(IV) Internal transfer of owner's equity - - - - (31) - - 31 - -

1. Transfer of capital reserve to capital (or

share capital) - - - - - - - - - -

2. Other comprehensive income transferred to

retained earnings - - - - (31) - - 31 - -

(V) Specific reserves - - - (1591) - - - - (8478) (10069)

1. Accrued in the period - - - 12929 - - - - 25498 38427

2. Specific reserves used in the current period - - - (14520) - - - - (33976) (48496)

(VI) Others - (1009601) - - - - - - - (1009601)

IV. Balance as at the end of the current period 20800862 14155725 (1503652) 5598 (1042359) 4096815 8934 24910834 71910222 133342979

Person-in-charge of financial Person-in-charge of the

Legal representative: Li Dongsheng affairs: Li Jian financial department: Jing Chunmei

The attached notes to the financial statements form an integral part of the financial statements.

6TCL Technology Group Corporation

Consolidated Statement of Changes in Shareholders’ Equity (Continued)

(RMB’000)

2024

Equity attributable to shareholders of the parent company

Capital Specific Other Surplus General TotalShare capital reserves Treasury share reserves comprehensive

Retained Non-controlling

income reserves

risk shareholders’

reserve earnings interests equity

I. Balance at the end of the prior year 18779081 10752055 (1094943) 11343 (945798) 3874006 8934 21537188 92344107 145265973

Add: Change in accounting policies - - - - - - - - - -

II. Balance at the beginning of the current

period 18779081 10752055 (1094943) 11343 (945798) 3874006 8934 21537188 92344107 145265973

III. Movement of the current period - (198974) 175621 (4154) 205339 100380 - (32469) (12807972) (12562229)

(I) Total comprehensive income - - - - 211465 - - 1564112 (5742900) (3967323)

(II) Capital contributed and reduced by

shareholders - (224909) 175621 - - - - - (6029663) (6078951)

1. Capital contributed by shareholders - - - - - - - - 99435 99435

2. Share-based payments included in owners'

equity - 240222 175621 - - - - - 26752 442595

3. Amount of bond issuance included in

owners' equity - - - - - - - - - -

4. Others - (465131) - - - - - - (6155850) (6620981)

(III) Profit distribution - - - - - 100380 - (1602707) (1021287) (2523614)

1. Appropriation of surplus reserves - - - - - 100380 - (100380) - -

2. Appropriation to shareholders - - - - - - - (1502327) (1021287) (2523614)

3. Others - - - - - - - - - -

(IV) Internal transfer of owner's equity - - - - (6126) - - 6126 - -

1. Transfer of capital reserve to capital (or

share capital) - - - - - - - - - -

2. Other comprehensive income transferred to

retained earnings - - - - (6126) - - 6126 - -

(V) Specific reserves - - - (4154) - - - - (14122) (18276)

1. Accrued in the period - - - 26412 - - - - 57023 83435

2. Specific reserves used in the current period - - - (30566) - - - - (71145) (101711)

(VI) Others - 25935 - - - - - - - 25935

IV. Balance as at the end of the current period 18779081 10553081 (919322) 7189 (740459) 3974386 8934 21504719 79536135 132703744

Person-in-charge of financial Person-in-charge of the

Legal representative: Li Dongsheng affairs: Li Jian financial department: Jing Chunmei

The attached notes to the financial statements form an integral part of the financial statements.

7TCL Technology Group Corporation

Balance Sheet of the Company

(RMB’000)

Assets Note XVI December 31 2025 December 31 2024

Current assets

Cash and cash equivalents 4414482 1551692

Held-for-trading financial

assets 8909440 11703700

Accounts receivable 1 209196 185239

Prepayments 23168 17740

Other receivables 2 9613847 9910856

Other current assets 23485 22518

Total current assets 23193618 23391745

Non-current assets

Long-term equity investments 3 95318595 81062401

Other non-current financial

assets 4 398546 723543

Investment properties 69999 73683

Fixed assets 42829 35361

Construction in progress 100922 23410

Right-of-use assets 407196 423543

Intangible assets 72133 84043

Long-term deferred expenses 19886 26603

Deferred income tax assets - 7

Other non-current assets 1583068 2600666

Total non-current assets 98013174 85053260

Total assets 121206792 108445005

Person-in-ch

Person-in-charge arge of the

Legal of financial financial

representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei

The attached notes to the financial statements form an integral part of the financial statements.

8TCL Technology Group Corporation

Balance Sheet of the Company (Continued)

(RMB’000)

Liabilities and shareholders' equity Note XVI December 31 2025 December 31 2024

Current liabilities

Short-term borrowings 400177 780798

Derivative financial liabilities - 1764

Accounts payable 23967 24762

Contract liabilities 95 -

Employee compensation payable 224501 178592

Taxes and levies payable 28093 10056

Other payables 26164087 19252413

Non-current liabilities due within one 7667893 10912982

yOetahrer current liabilities 8099 9071

Total current liabilities 34516912 31170438

Non-current liabilities

Long-term borrowings 16046784 15289799

Bonds payable 7981874 6488620

Lease liabilities 9250 16485

Long-term payables - -

Long-term employee compensation 18570 19191

pDaeyfaebrrled income 16382 55985

Total non-current liabilities 24072860 21870080

Total liabilities 58589772 53040518

Share capital 20800862 18779081

Capital reserves 22142686 16332255

Less: Treasury share 1503652 919322

Other comprehensive income (103971) 167402

Surplus reserves 3894751 3772322

Retained earnings 17386344 17272749

Total shareholders’ equity 62617020 55404487

Total liabilities and shareholders' equity 121206792 108445005

Person-in-ch

Person-in-charge arge of the

Legal of financial financial

representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei

The attached notes to the financial statements form an integral part of the financial statements.

9TCL Technology Group Corporation

Income Statement of the Company

(RMB’000)

Note XVI 2025 2024

I. Operating revenue 5 571707 946361

Less: Operating cost 5 238728 608274

Taxes and levies 19488 7883

Sales expenses 29705 32263

Administrative expenses 482108 344822

R&D expenses 92909 136815

Financial expenses 1083057 1140654

Including: Interest expenses 1417145 1583369

Interest income 307425 346977

Add: Other income 50764 2630

Return on investment 6 2212053 2018248

Including: Return on investment in joint

ventures and associates 6 1687010 1237987

Gain on changes in fair value 309650 315367

Credit impairment loss (5757) (385)

Asset disposal income 22 9

II. Operating profit 1192444 1011519

Add: Non-operating income 44783 151

Less: Non-operating expenses 12934 7863

III. Gross profit 1224293 1003807

Less: Income tax expenses - -

IV. Net profits 1224293 1003807

V. Other comprehensive income (271373) 309458

VI. Total comprehensive income 952920 1313265

Person-in-ch

Person-in-charge arge of the

Legal of financial financial

representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei

The attached notes to the financial statements form an integral part of the financial statements.

10TCL Technology Group Corporation

Cash Flow Statement of the Company

(RMB’000)

Note XVI 2025 2024

I. Net cash generated from operating activities:

Proceeds from the sale of commodities and

4838171054182

rendering of services

Tax and levy rebates - 1427

Cash generated from other operating activities 5806539 4090375

Sub-total of cash generated from operating

62903565145984

activities

Payments for commodities and services (58266) (726833)

Cash paid to and for employees (173374) (182118)

Taxes and levies paid (32923) (99611)

Cash used in other operating activities (2736538) (1042966)

Sub-total of cash used in operating activities (3001101) (2051528)

Net cash generated from operating activities 3289255 3094456

II. Cash flow generated from investing activities:

Proceeds from disinvestments 58646593 39330086

Proceeds from return on investments 1618621 2252665

Net proceeds from disposal of fixed assets

intangible assets and other long-term assets

Cash generated from other investing activities 2843455 -

Sub-total of cash generated from investment

activities 63108669 41582751

Payments for the acquisition and construction

of fixed assets intangible assets and other (95875) (33465)

long-term assets

Payments for investments (64500528) (40360868)

Cash used in other investing activities (1789) -

Subtotal of cash used in investing activities (64598192) (40394333)

Net cash (used in) from investing activities (1489523) 1188418

Person-in-charge Person-in-charge

Legal of financial of 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.

11TCL Technology Group Corporation

Cash Flow Statement of the Company (Continued)

(RMB’000)

Note XVI 2025 2024

III. Cash flow generated from financing

activities:

Capital contributions received 4297826 -

Borrowings raised 21506010 14913000

Cash received from bond issue 7240000 5000000

Cash generated from other financing activities 2087113 425625

Sub-total of cash generated from financing

activities 35130949 20338625

Cash paid for debt repayment (30033585) (21623200)

Cash paid for distribution of dividends and

profits or repayment of interests (1980684) (2669516)

Cash used in other financing activities (2069287) (1463593)

Subtotal of cash used in financing activities (34083556) (25756309)

Net cash generated from financing activities 1047393 (5417684)

IV. Effect of exchange rate changes on cash and

cash equivalents (1612) 763

V. Net increase in cash and cash equivalents 2845513 (1134047)

Add: Beginning balance of cash and cash

equivalents 1508068 2642115

VI. Ending balance of cash and cash equivalents 4353581 1508068

Person-in-ch

Person-in-charge arge of the

Legal of financial financial

representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei

The attached notes to the financial statements form an integral part of the financial statements.

12TCL Technology Group Corporation

Statement of Changes in Shareholder Equity of the Company

(RMB’000)

2025

Other

Share capital Capital reserves Treasury share comprehensive Surplus reserves Retained Total shareholders’

income 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 2021781 5810431 (584330) (271373) 122429 113595 7212533

(I) Total comprehensive income - - - (271373) - 1224293 952920

(II) Capital contributed and reduced by shareholders 2021781 6855044 (584330) - - - 8292495

1. Capital contributed by owners 2021781 6638908 (800000) - - - 7860689

2. Capital contributed by holders of other equity

instruments - - - - - - -

3. Share-based payments included in owners' equity - 216136 215670 - - - 431806

4. Amount of bond issuance included in owners'

equity - - - - - - -

5. Others - - - - - - -

(III) Profit distribution - - - - 122429 (1110698) (988269)

1. Appropriation of surplus reserves - - - - 122429 (122429) -

2. Appropriation to shareholders - - - - - (988269) (988269)

3. Others - - - - - - -

(IV) Internal transfer of owner's equity - - - - - - -

1. Transfer of capital reserve to capital (or share

capital) - - - - - - -

(V) Others - (1044613) - - - - (1044613)

IV. Balance as at the end of the current period 20800862 22142686 (1503652) (103971) 3894751 17386344 62617020

Person-in-charge of the

Legal representative: Li Dongsheng Person-in-charge of financial affairs: Li Jian financial department: Jing Chunmei

The attached notes to the financial statements form an integral part of the financial statements.

13TCL Technology Group Corporation

Statement of Changes in Shareholder Equity of the Company (Continued)

(RMB’000)

2024

Other

Share capital Capital reserves Treasury share comprehensive Surplus Retained

Total

income reserves earnings

shareholders’

equity

I. Balance at the end of the prior year 18779081 16127030 (1094943) (142055) 3671942 17871649 55212704

Add: Change in accounting policies - - - - - - -

II. Balance at the beginning of the current period 18779081 16127030 (1094943) (142055) 3671942 17871649 55212704

III. Movement of the current period - 205225 175621 309457 100380 (598900) 191783

(I) Total comprehensive income - - - 309457 - 1003807 1313264

(II) Capital contributed and reduced by

shareholders - 208766 175621 - - - 384387

1. Capital contributed by owners - - - - - - -

2. Capital contributed by holders of other equity

instruments - - - - - - -

3. Share-based payments included in owners'

equity - 208766 175621 - - - 384387

4. Amount of bond issuance included in owners'

equity - - - - - - -

5. Others - - - - - - -

(III) Profit distribution - - - - 100380 (1602707) (1502327)

1. Appropriation of surplus reserves - - - - 100380 (100380) -

2. Appropriation to shareholders - - - - - (1502327) (1502327)

3. Others - - - - - - -

(IV) Internal transfer of owner's equity - - - - - - -

1. Transfer of capital reserve to capital (or share

capital) - - - - - - -

(V) Others - (3541) - - - - (3541)

IV. Balance as at the end of the current period 18779081 16332255 (919322) 167402 3772322 17272749 55404487

Person-in-charge of the

Legal representative: Li Dongsheng Person-in-charge of financial affairs: Li Jian financial department: Jing Chunmei

The attached notes to the financial statements form an integral part of the financial statements.

14TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

I Corporate Information

TCL Technology Group Corporation (hereinafter referred to as "the Company") is a limited

liability company established in Huizhou on July 17 1997. It was changed to a limited liability

company as a whole in 2002 and was listed on the Shenzhen Stock Exchange in January 2004.Through years of new share placements private placements capital conversion share option

exercises and share repurchases and cancellations the registered capital and share capital of the

Company were RMB 20800862447 as of December 31 2025.The main business structure of the Company and its subsidiaries consists of display new energy

photovoltaic and other silicon materials industrial finance and other businesses. The relevant

information of the Company's subsidiaries is detailed in Note VIII.The registered address of the Company is: TCL TECH. Building 17 Huifeng Third Road

Zhongkai Hi-Tech Development District Huizhou City Guangdong Province.Approval and issue: These financial statements were authorized for issue by the Company’s Board

of Directors on March 26 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.

15TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 The amount of an individual item is greater than

write-off of bad debt provisions for RMB 50 million.important receivables with bad debt

provisions accrued on an individual basis

Important construction in progress The ending carrying amount of an individual

item exceeds RMB 10 billion.Important non-wholly-owned The total assets of non-wholly-owned

subsidiaries 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 The amount of an individual item exceeds 0.5%

liabilities accounts payable and other of the total assets of the Group.payables are aged for more than 1 year

Important capitalized research and The cumulative expenditure of an individual

development items item exceeds 0.5% of the total assets of the

Group.

16TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 reserve (specifically capital premium or share

premium) is adjusted first. If the balance of the capital reserve is 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.

17TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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

18TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

III Significant accounting policies and accounting estimates (continued)

7 Methods for judging control and preparing consolidated financial statements (continued)

(3) 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.

19TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 "Special 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.

20TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 and the 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 reserve (share premium). If the capital reserve is 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 reserve (share premium). If the capital

reserve is 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 reserve (share premium). If

the capital reserve is 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.

21TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 reserve (share premium) in

the consolidated financial statements. If the capital reserve is 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

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.

22TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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. Disposal Through Step-by-Step Transactions

In the consolidated financial statements it is first be 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.(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 reserve (capital premium or share premium). If

the capital reserve is insufficient to absorb the adjustment the excess is adjusted against

retained earnings.

23TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

24TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

25TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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

sell the financial asset.

26TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

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 as measured at amortized cost if it meets both of the following conditions: the

financial asset is held within a business model whose objective is to hold financial assets in order 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.

27TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

28TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

29TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

30TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

31TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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

profit or loss in the period of recovery as a reversal of impairment losses.

32TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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).

33TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

34TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

35TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

36TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

37TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

38TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 property 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.

39TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

40TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 reserve. If the capital reserve is 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 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 reserve. If the

capital reserve is 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.

41TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

III Significant accounting policies and accounting estimates (continued)

17 Long-term equity investments (continued)

(2) Recognition 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.

42TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 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.

43TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

44TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 Service Annual DepreciationLife 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.

45TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

46TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 operatingyears of the Company

Patents and non-patent 10 years or the shorter of service life beneficiary years and

technologies legally valid years

Others Beneficiary period

The Company reviews the service life and amortization method of intangible assets with limited

service life at least at the end of each year and makes adjustments if necessary.The methods for impairment testing and accrual of impairment provisions of intangible assets are

detailed in 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 reliableway.

If the above conditions cannot all be satisfied the expenditures are included in the current profit and

loss when incurred.

47TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

48TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 benefits payable"

and "Long-term employee benefits 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 staff welfare premiums or contributions on medical insurance work injury insurance and

maternity insurance housing funds union running costs and employee education costs and

short-term paid absences. During the accounting period when employees provide services the

Company recognizes the actual short-term remuneration as liabilities and includes it in current

profits and losses or related asset costs according to the beneficiaries of the services provided by

employees. Non-monetary benefits are measured at their fair value.(b) 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.

49TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

III Significant accounting policies and accounting estimates (continued)

26 Estimated liabilities

(1) Recognition standards for estimated liabilities

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 estimated liabilities

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.

50TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 reserve.* 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 reserve 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.

51TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

52TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

53TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

54TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

55TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

56TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 it is recognized as deferred income and included in the current profit and loss

or offset costs in the period in which the related costs or losses are recognized; public grants used

to compensate costs or losses incurred by the enterprise shall be directly included in current profits

and losses or offset related costs. For public grants related to the day-to-day activities of the

enterprise the R&D and VAT-related subsidies and the taxation or operation-based incentive

public subsidies are included in other income; other public grants are written off against related

costs based on the substance of economic activities. Public grants not related to daily activities of

the Company are included in the non-operating income and expenditure. For preferential loans for

policy discounts if the public finance department appropriates the discounted funds to the lending

bank the borrowing cost is accounted for according to the principal of the loan and the policy

preferential interest rate with the amount actually received as the entry value of the loan. If the

public finance department directly appropriates the interest grant funds to the Company the grants

shall offset the related borrowing costs.In case a recognized public grant is required to be returned the carrying amount of the asset is

adjusted if the carrying amount of relevant assets is offset at the initial recognition; if there is

related deferred income the book balance of deferred income is offset and the excess is included

in the current profit and loss; and in case of other circumstances it is directly included in current

profits and losses.

57TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

58TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 orevents

* 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.

59TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 specifictransactions or events (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.

60TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

61TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

62TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

63TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

64TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

65TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

66TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

67TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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

recognized in current profits and losses.

68TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 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.

69TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

III Significant accounting policies and accounting estimates (continued)

36 Changes to major accounting policies and estimates

(1) Change of accounting policies

The Company had no significant change in accounting policies during the Reporting Period.

(2) Changes to accounting estimates

The Company had no significant change in accounting estimates during the Reporting Period.

70TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 that the

public supports.According to the relevant provisions of the Announcement on the Preferential Income Tax

Policies for Small and Micro Enterprises and Self-employed Businesses (Announcement No. 6

[2023] of the Ministry of Finance and the State Taxation Administration) and the Announcement

of the Ministry of Finance and the State Taxation Administration on Tax Policies for Further

Supporting the Development of Small and Micro Enterprises and Self-employed Businesses

(Announcement No. 12 [2023] of the Ministry of Finance and the State Taxation

Administration) issued by the Ministry of Finance and the State Taxation Administration in

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 entitled to preferential tax treatment and the overseas

subsidiaries 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.

71TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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

Shenzhen Qianhai Maojia Software Technology

Co. Ltd. 15.00% High-tech enterprise

Huansheng New Energy (Tianjin) Co. Ltd. 15.00% High-tech enterprise

Tianjin Huanou New Energy Technology Co. Ltd 15.00% High-tech enterprise

Wuxi Zhonghuan Applied Materials 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. 15.00% High-tech enterprises and the Western ChinaLtd. 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

Technology Co. Ltd. 15.00%

Eligible third-party enterprises engaged in pollution

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

Ningxia Huanou New Energy Technology Co. Western China Development and the "three?year

Ltd. 9.00% exemption and three?year 50% reduction" preferentialtreatment on the local portion of enterprise income tax

72TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

IV Taxes (continued)

5 Corporate income tax (continued)

Company name Preferentialtax rate Reason

Western China Development the "three?year exemption

Ningxia Zhonghuan Solar Material Co. Ltd. 9.00% and three?year 50% reduction" preferential treatment onthe local portion of enterprise income tax and high-tech

enterprise

Shaanxi Runhuan Tianyu Technology Co. Ltd. 7.50% The "three?year exemption and three?year 50% reduction"and the Western China Development Initiative

Shaanxi Huanbo New Energy Power Engineering

Construction Co. Ltd. Tax-exempt Three?year exemption and three?year 50% reduction

Hohhot Dishengsheng New Energy Co. Ltd. Tax-exempt Three?year exemption and three?year 50% reduction

Tianjin Zhonghuan New Energy Co. Ltd. Tax-exempt Three?year exemption and three?year 50% reduction

73TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements

1 Cash and cash equivalents

December 31 2025 December 31 2024

Cash on hand 418 482

Bank deposits 26293409 20526899

Deposits with the central bank 367683 285264

Other monetary assets 3798550 2195128

3046006023007773

Note Restricted bank deposits

December 31 2025 December 31 2024

TCL Tech Finance's statutory reserve deposits with

the central bank 361827 278910

Other restricted monetary assets 3467238 1867608

38290652146518

As of December 31 2025 the Company’s bank deposits of RMB 361827000 (December 31 2024:

RMB 278910000) were statutory deposit reserves deposited with the Central Bank by TCL

Technology Group Finance Co. Ltd. a subsidiary of the Company.As of December 31 2025 the Company’s monetary assets offshore amounted to RMB 2710168000

(December 31 2024: RMB 3151386000) all of which were owned by the overseas subsidiaries of

the Company.

74TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

2 Held-for-trading financial assets

December 31 2025 December 31 2024

Financial assets classified as those measured at fair value

through profit or loss 14473193 16560971

Including: Debt instrument investments 14454252 16525080

Equity instrument investments 18941 35891

1447319316560971

3 Derivative financial assets

December 31 2025 December 31 2024

Foreign exchange forwards and foreign exchange swaps 78957 172489

4 Notes receivable

(1) Notes receivable by category

December 31 2025 December 31 2024

Bank acceptance 377126 188776

Trade acceptance 103099 1077

480225189853

75TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

4 Notes receivable (continued)

(2) Presentation of provision for bad debts on notes receivable by category

December 31 2025 December 31 2024

Bad-debt Bad-debt

Gross amount Allowance Carrying Gross amount Allowance Carrying

Amount Ratio Amount Accrual amount Amount Ratio Amount Accrual amountRatio Ratio

Notes receivable for

which the allowance for

doubtful accounts were 480225 100% - - 480225 189853 100% - - 189853

established on the

grouping basis

Including: low-risk

portfolio 480225 100% - - 480225 189853 100% - - 189853

480225100%--480225189853100%--189853

(3) As at December 31 2025 notes receivable in pledge were RMB 6169000.

(4) As at December 31 2025 endorsed or discounted notes receivable that were outstanding and not derecognized

were RMB 6077000; endorsed or discounted notes receivable that were outstanding and derecognized

amounted to RMB 266248000.

5 Accounts receivable

December 31 2025 December 31 2024

Accounts receivable 22579657 22589419

Less: allowance for doubtful accounts 426654 347266

2215300322242153

76TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

5 Accounts receivable (continued)

(1) Accounts receivable as at December 31 2025 are classified as follows by how the doubtful debtswere provisioned:

December 31 2025 December 31 2024

Bad-debt Bad-debt

Category Gross amount Allowance Carrying Gross amount Allowance Carrying

Amount Ratio Amount Accrual amount Amount Ratio Amount Accrual amountRatio Ratio

Allowances for

bad debts

accrued on an 217809 0.96% 189792 87.14% 28017 261025 1.16% 188520 72.22% 72505

individual basis

Provision for

impairment

based on

portfolio of 22361848 99.04% 236862 1.06% 22124986 22328394 98.84% 158746 0.71% 22169648

credit risk

characteristics

22579657100%4266541.89%2215300322589419100%3472661.54%22242153

(2) The aging of accounts receivable is analyzed as follows:

December 31 2025 December 31 2024

Amount Ratio Amount Ratio

Within 1 year 20832958 92.26% 20652345 91.43%

1 to 2 years 376690 1.67% 1033212 4.57%

2 to 3 years 552656 2.45% 206083 0.91%

Over 3 years 817353 3.62% 697779 3.09%

22579657100%22589419100%

77TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

5 Accounts receivable (continued)

(3) Allowances for doubtful accounts receivable are analyzed as follows:

December 31 2025

Beginning amount 347266

New subsidiary 1084

Accrued in the period 140271

Reversal of current period (63597)

Write-off of current period (15469)

Others 17099

Ending amount 426654

(4) As at December 31 2025 the accounts receivable and contract assets of the top five balances

are as follows:

December 31 2025

Total amount of the accounts receivable and contract assets of the

top five balances 12144160

As a percentage of the total amount of accounts receivable and

contract assets 53.78%

(5) Accounts receivable derecognized due to transfer of financial assets

Methods of transfer of Amount derecognized Gain or loss

Item

financial assets for the period on derecognition

Accounts Factoring without

receivable recourse 12337240 (27546)

6 Receivables financing

December 31 2025 December 31 2024

Notes receivable financing 383247 584362

Receivable financing 242542 247045

625789831407

Note As at December 31 2025 the financing for endorsed or discounted receivables that were outstanding

and derecognized amounted to RMB 5669127000.As of December 31 2025 the Company believes that receivables financing it held did not have

significant credit risks and will not cause significant losses due to default.

78TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

7 Prepayments

(1) Prepayments are analyzed as follows:

December 31 2025 December 31 2024

Within 1 year 1363244 1807562

1-2 years 415294 209382

2-3 years 98269 67877

Over 3 years 32637 5671

19094442090492

(2) As of December 31 2025 the prepayments of the top five balances are as follows:

December 31 2025

Total amount owed by the top five 1100577

As % of total prepayments 57.64%

8 Other receivables

December 31 2025 December 31 2024

Dividends receivable 424441 675119

Other receivables 3076182 4048021

35006234723140

(1) Dividends receivable

December 31 2025 December 31 2024

Xinjiang Goens Energy Technology

Co. Ltd. 444597 698082

Less: allowance for doubtful

accounts 20156 22963

424441675119

79TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

8 Other receivables (continued)

(1) Dividends receivable (continued)

(a) Presentation of provision for bad debts on dividends receivable by category

December 31 2025 December 31 2024

Bad-debt Bad-debt

Gross amount Allowance Carrying Gross amount Allowance Carrying

Category Amount Ratio Amount Accrual amount Accrual amountRatio Amount Ratio Amount Ratio

Allowances for

bad debts

accrued on an 444597 100% 20156 4.53% 424441 698082 100% 22963 3.29% 675119

individual basis

444597100%201564.53%424441698082100%229633.29%675119

(2) Other receivables

December 31 2025 December 31 2024

Other receivables 3513209 4478337

Less: allowance for 437027 430316

doubtful accounts

30761824048021

(a) Nature of other receivables is analyzed as follows:

December 31 2025 December 31 2024

Allowance receivables 1355862 1849469

Equity transfer receivables 251016 561969

Security and deposits 584936 490401

Others 884368 1146182

30761824048021

80TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

8 Other receivables (continued)

(2) Other receivables (continued)

(b) Presentation of provision for bad debts on other receivables by category

December 31 2025 December 31 2024

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 583773 16.62% 413344 70.81% 170429 684637 15.29% 351362 51.32% 333275

individual

basis

Provisions for

bad debts

accrued on a 2929436 83.38% 23683 0.81% 2905753 3793700 84.71% 78954 2.08% 3714746

portfolio

basis

3513209100%43702712.44%30761824478337100%4303169.61%4048021

Lifetime ECL Lifetime ECL

12-month ECL (credit not (credit Total

impaired) impaired)

December 31 2024 28902 - 401414 430316

--Transfer into Stage 3 - - - -

Current accrual 10561 - 10107 20668

Addition of new

subsidiaries 53 - - 53

Reversal of current

period (7732) - (137) (7869)

Write-off of current

period (1718) - - (1718)

Others (349) - (4074) (4423)

December 31 2025 29717 - 407310 437027

81TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

8 Other receivables (continued)

(d) The aging of other receivables is analyzed as follows:

December 31 2025 December 31 2024

Carrying amount Ratio Carrying amount Ratio

Within 1 year 1638345 46.64% 2406461 53.74%

1 to 2 years 816611 23.24% 1254934 28.02%

2 to 3 years 379232 10.79% 185767 4.15%

Over 3 years 679021 19.33% 631175 14.09%

3513209100%4478337100%

(e) As of December 31 2025 the other receivables of the top five balances are as follows:

December 31 2025

Total amount owed by the top five 1870943

As % of total other receivables 53.25%

(f) On December 31 2025 there was no transfer of other receivables that did not conform to the conditions for

derecognition in the balance of this account; no transaction arrangement for asset securitization with other

receivables as the subject asset; and no financial instrument that was the subject of securitization and did not

conform to the conditions for derecognition.

82TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

9 Inventories

(1) Inventories are classified as follows:

December 31 2025 December 31 2024

Provision for Provision for

depreciation of depreciation of

inventories / inventories /

Gross provision for Carrying Gross provision for Carrying

amount impairment of amount amount impairment of amount

contract contract

performance performance

costs costs

Raw 5752757 837917 4914840 5368313 663905 4704408

materials

Work in 3473243 705587 2767656 3594152 950333 2643819

Fprinoigsrheesds

Goods 12224275 1660743 10563532 12589255 2499767 10089488

Turnover 126337 1657 124680 157865 1447 156418

materials

2157661232059041837070821709585411545217594133

As of December 31 2025 the Company had no inventory for liabilities guarantee.

(2) Provision for depreciation of inventories / provision for impairment of contract performance costs:

Accrued in Reversal andDecember 31 2024 the period write-off in the

Other

period changes

December 31 2025

Raw

materials 663905 1141017 (1006771) 39766 837917

Work in

progress 950333 1465208 (1606298) (103656) 705587

Inventory

of goods 2499767 2160067 (2966522) (32569) 1660743

Turnover

materials 1447 1099 (889) - 1657

41154524767391(5580480)(96459)3205904

83TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

10 Contract assets

(1) Contract assets are classified as follows:

December 31 2025 December 31 2024

Gross Impairment Carrying Gross Impairment Carrying

amount allowance amount amount allowance amount

Contract 422183 36607 385576 422207 27090 395117

assets

(2) Valuation allowances for contract assets are analyzed as follows:

December 31 2024 Accrued in

Reversal or Other

the period write-off in increases and December 31 2025the period decreases

Contract

assets 27090 9517 - - 36607

11 Held-for-sale assets

Item Ending Impairment Ending carrying

Estimated Estimated

balance allowance amount Fair value disposal disposalcosts timing

Held-for-sa

le assets 423091 60026 363065 363065 -

February 2026

12 Non-current assets due within one year

December 31 2025 December 31 2024

Other non-current assets due within one year 1557992 842072

Debt investments due within one year 6953 7634

1564945849706

13 Other current assets

December 31 2025 December 31 2024

VAT to be deducted to be certified etc. 8126701 6201277

Loans and advances to customers - 390720

Others 284923 124212

84116246716209

84TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

14 Debt Investments

December 31 2025 December 31 2024

Treasury bonds and corporate bonds 578159 147272

15 Long-term receivables

December 31 2025 December 31 2024

Gross Bad-debt Carrying Gross Bad-debt Carrying

amount Allowance amount amount Allowance amount

Finance lease - - - 306397 - 306397

Including:

Unrealized - - - (220030) - (220030)

financing income

Others 120628 - 120628 165145 27801 137344

120628-12062847154227801443741

16 Long-term equity investments

December 31 2025 December 31 2024

Gross Impairment Carrying Gross Impairment Carrying

amount allowance amount amount allowance amount

Associate 22966147 20022 22946125 24140271 1444 24138827

Joint venture 452571 49503 403068 506310 49503 456807

234187186952523349193246465815094724595634

As of December 31 2025 the Company made impairment allowances for long-term equity investments in

investees with poor management and insolvent assets. In addition there was no significant restriction on the

realization of investment and the repatriation of investment income for long-term equity investment.

85TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

16 Long-term equity investments (continued)

(1) Changes in long-term equity investments for the year

Increase or decrease in current period

Net profits Balance of

December 31 Increase/ or losses

Cash

Other dividends or Provision December 31 impairment

Investees 2024 decrease in adjusted Other equity 2025 provision as(carrying investment in under the comprehensive changes profit for Others (carrying of December

amount) current period equity income distribution impairment amount) 31 2025

method declared

Joint venture 456807 27836 (77806) - 1231 (5000) - - 403068 49503

Associate

Bank of Shanghai Co.Ltd. 14740146 - 1346306 (271340) (994457) (425304) - - 14395351 -

Inner Mongolia

Xinhuan Silicon

Energy Technology 1400862 - 32089 - - - - - 1432951 -

Co. Ltd.Aijiexu New

Electronic Display

Glass (Shenzhen) Co. 847664 - (4275) - - - - - 843389 -

Ltd.Others 7150155 (191176) 424533 (20002) (7274) (1080193) (18578) 16969 6274434 20022

Total of associates 24138827 (191176) 1798653 (291342) (1001731) (1505497) (18578) 16969 22946125 20022

Total 24595634 (163340) 1720847 (291342) (1000500) (1510497) (18578) 16969 23349193 69525

86TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

17 Investments in other equity instruments

December 31 2025 December 31 2024

Stocks 18427 13371

Equity of unlisted companies 338029 374480

356456387851

Recognize Amount of other

Reasons designated as

measured at fair value and

Item name d dividend Cumulative Cumulative comprehensive

revenue gains losses income transferred

whose changes are

to retained earnings included in othercomprehensive income

Being held long-term for

Stocks 599 5949 (135814) - strategic purposes

Equity of unlisted Being held long-term for

companies 185 11370 (77869) - strategic purposes

Total 784 17319 (213683) -

18 Other non-current financial assets

December 31 2025 December 31 2024

Equity investments 3172659 1924717

Debt investments - 300483

31726592225200

87TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

19 Investment property

Houses and buildings Land use rights Total

Gross amount:

December 31 2024 830496 219676 1050172

Increase during the year 11288 281 11569

Decrease during the year (338812) (111098) (449910)

December 31 2025 502972 108859 611831

Accumulated depreciation

and amortization:

December 31 2024 320055 49475 369530

Current accrual 6660 4602 11262

Other increases 12528 216 12744

Decrease during the year (164930) (19556) (184486)

December 31 2025 174313 34737 209050

Investment property net:

December 31 2025 328659 74122 402781

December 31 2024 510441 170201 680642

Impairment allowance:

Beginning amount 67908 - 67908

Decrease during the year (67000) - (67000)

Ending amount 908 - 908

Investment property net:

December 31 2025 327751 74122 401873

December 31 2024 442533 170201 612734

88TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

20 Fixed assets

Houses and Machinery Office and Transport

buildings equipment electronic ation

Power

equipment equipment stations

Others Total

Gross amount:

December 31 2024 61136545 241758804 3800411 318237 2224955 1426517 310665469

Increase during the

year

Acquisition and

other 18983 370876 125059 12131 - 4485 531534

Reclassified from

construction in 1002118 17829459 99438 52966 - 3321 18987302

progress

New subsidiary 7454336 25053523 443257 1561 - - 32952677

Other increases 377358 509086 9858 4647 258 479 901686

Decrease during the

year

Reduced

subsidiary - (1092273) (63768) - - - (1156041)

Disposals

write?offs and (1611978) (4049213) (166698) (16395) - (73) (5844357)

others

December 31 2025 68377362 280380262 4247557 373147 2225213 1434729 357038270

Accumulated

depreciation:

December 31 2024 12442980 121364569 2452682 242880 659147 334859 137497117

Increase during the

year

Accrual 2494410 23989885 395394 38812 57287 84731 27060519

New subsidiary 2858865 23726998 379770 1378 - - 26967011

Other increases 183955 293073 5457 - - 385 482870

Decrease during the

year

Reduced

subsidiary - (19174) (26405) - - - (45579)

Disposals

write?offs and (551277) (1800942) (134504) (10652) - (73) (2497448)

others

December 31 2025 17428933 167554409 3072394 272418 716434 419902 189464490

Fixed assets net:

December 31 2025 50948429 112825853 1175163 100729 1508779 1014827 167573780

December 31 2024 48693565 120394235 1347729 75357 1565808 1091658 173168352

89TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

20 Fixed assets (continued)

Houses and Machinery Office and

buildings equipment electronic

Transportation Power

equipment stations Others Totalequipment

Impairment

allowance:

December 31

202491951916013987310126662059-2656343

Current accrual - 464252 124 - 37406 - 501782

Other increases 67000 - - - - - 67000

Reduced

subsidiary - (391020) - - - - (391020)

Disposals

write?offs and (17401) (231663) (14279) (138) - - (263481)

others

December 31

202596911814429675894612899465-2570624

Fixed assets

carrying

amount:

December 31

202549979311111382886111621710060114093141014827165003156

December 31

20244777404611879283712746287509115037491091658170512009

Please refer to Item 29 of Note V for information on fixed asset pledge.Fixed assets with pending ownership certificates at the end of the current period:

Carrying amount Reasons for pending ownershipcertificates

Houses and buildings (Note) 11113937 In process

Note As of December 31 2025 the fixed assets for which the certificates of title have not been completed are mainly the houses

and buildings of Huaxing Production Bases t3 t5 and t9 as well as the houses and buildings of Inner Mongolia Zhonghuan

Crystal Materials Co. Ltd. and Tianjin Zhonghuan Advanced Material&Technology Co. Ltd.

21 Construction in progress

(1) Schedule of construction in progress

December 31 2025 December 31 2024

Construction in progress 16560203 23872805

Less: Impairment allowance 383355 292302

1617684823580503

90TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

21 Construction in progress (continued)

(2) Changes to construction in progress

Construction in Accumulated Interest

investment in Cumulative Including: capitalization

Project name Budget December 31 Increase in current progress Other December Project2024 period transferred to fixed movements 31 2025 the project progress capitalized capitalized interest rate for Funding source

assets interest in current period currentas % of budget period

t9 production line of LCD

panel 31500000 2794829 1511691 (3928464) - 378056 96%

Under Self-funded and financed

construction 395291 30220 3.0% funds

Solar power station projects 6104522 3512817 495518 (1315113) (142482) 2550740 63% Under 225415 102981 2.55%- Self-funded and raisedconstruction 3.604% funds

Large-diameter silicon

wafers for integrated circuits 5410520 3241139 77311 (1938492) (342) 1379616 98%

Under

construction 45738 5690 2.8%

Self-funded and raised

funds

Expansion project of silicon 5800260 - 570888 (457) (16519) 553912 10% Under 7970 7970 2.8% Self-funded and raisedwafers for integrated circuits construction funds

Silicon wafers for integrated

circuits 11014000 2196067 1102412 (1178753) (2697) 2117029 86%

Under

construction 439709 1618 2.6%

Self-funded and raised

funds

Highly-efficient imbricate

module G12 project 2886269 911184 215517 (774594) (28058) 324049 77%

Under

construction 10413 3835 2.9%

Self-funded and raised

funds

Production line of 8-12-inch

silicon wafers for integrated 5707172 877179 308885 (487419) (82554) 616091 93% Underconstruction 10716 2169 2.8%

Self-funded and raised

circuits funds

Others Not applicable 10047288 8058579 (9364010) (484502) 8257355 Not applicable Notapplicable Not applicable Not applicable

Not

applicable Not applicable

2358050312340801(18987302)(757154)16176848

91TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

22 Right-of-use assets

Houses and Transportation Machinery Land use

Total

buildings equipment equipment rights

Gross amount:

December 31 2024 6523967 755 906409 472917 7904048

Increase

New subsidiary 198854 9153 - - 208007

Leased in 415391 156 - 89248 504795

Other increases 10165 264 - 16796 27225

Decreases

Lease contract expiration (274222) (8835) - - (283057)

Other decreases (592883) (561) (27912) (146238) (767594)

December 31 2025 6281272 932 878497 432723 7593424

Accumulated depreciation:

December 31 2024 802000 398 294298 47409 1144105

Increase

Current accrual 385952 1243 99111 35837 522143

New subsidiary 181620 7611 - - 189231

Other increases 1441 316 - - 1757

Decreases

Lease contract expiration (274222) (8835) - - (283057)

Other decreases (245719) (28) (20007) (7028) (272782)

December 31 2025 851072 705 373402 76218 1301397

Right-of-use assets carrying

amount:

December 31 2025 5430200 227 505095 356505 6292027

December 31 2024 5721967 357 612111 425508 6759943

Impairment allowance:

December 31 2024 62255 - - - 62255

Current accrual 73243 - - - 73243

Write-off of current year (32645) - - - (32645)

December 31 2025 102853 - - - 102853

Right-of-use assets carrying

amount:

December 31 2025 5327347 227 505095 356505 6189174

December 31 2024 5659712 357 612111 425508 6697688

92TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

23 Intangible assets

Non-patent

Land use rights technology/patent Others Total

right

Gross amount:

December 31 2024 9509193 15399137 3304269 28212599

Increase

New subsidiary 902913 5972 271295 1180180

Purchase 861572 1044673 299922 2206167

Others 153572 707366 - 860938

Decreases

Disposals write-offs and

(30065)(59151)(181287)(270503)

other decreases

December 31 2025 11397185 17097997 3694199 32189381

Accumulated amortization:

December 31 2024 1519969 6851302 1564658 9935929

Increase

Accrual 288384 2734427 331325 3354136

New subsidiary 82152 5972 250092 338216

Reclassified from 19556 - - 19556

investment property

Decreases

Disposals write-offs and (264) (28617) (132758) (161639)

other decreases

December 31 2025 1909797 9563084 2013317 13486198

Intangible assets net:

December 31 2025 9487388 7534913 1680882 18703183

December 31 2024 7989224 8547835 1739611 18276670

Impairment allowance:

December 31 2024 23562 114526 21115 159203

New subsidiary 64597 - - 64597

Accrual - - 12873 12873

Others - (800) - (800)

December 31 2025 88159 113726 33988 235873

Intangible assets carrying

amount:

December 31 2025 9399229 7421187 1646894 18467310

December 31 2024 7965662 8433309 1718496 18117467

Please refer to Item 29 of Note V for information on collateralized intangible assets.

93TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

24 Development expenditures

Development expenditures are presented as follows:

December 31 2025 December 31 2024

Display 963087 1165388

New energy photovoltaics and other silicon

241868666056

materials

12049551831444

25 Goodwill

(1) Gross amount of goodwill

Increase in Decrease in

Name of investee or matter

December 31 2024 current current December 31 2025

forming goodwill

period period

TCL Technology Group

6726130--6726130

(Tianjin) Co. Ltd.Moka International Limited 1733665 - - 1733665

Xinxin Bandaoti Technology

1180005--1180005

Co. Ltd.Maxeon Solar Technologies

1556676-(101847)1454829

Ltd.Guangzhou China Star

Optoelectronics Technology - 827544 - 827544

Co. Ltd.Guangzhou China Star

Optoelectronics Display Co. - 63782 - 63782

Ltd.Others 910601 - - 910601

12107077891326(101847)12896556

94TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

25 Goodwill (continued)

(2) Goodwill impairment allowance

Increase in Decrease

current in current

Name of investee December 31 2024 period period December 31 2025

Maxeon Solar Technologies Ltd. 915394 559744 (20309) 1454829

Others 31978 - - 31978

947372559744(20309)1486807

As at December 31 2025 the recoverable amount of the goodwill-related asset groups above was determined

at the present value of the estimated future cash flows or the net amount of the fair value less the disposal

expenses. When the present value of any cash flow was estimated the cash flow in the next 5-6 years was

determined according to the financial budget approved by the management and the cash flow beyond the

budget period remained stable during the years after the budget period; the pre-tax discount rate (mainly

8.51%-15.67%) was determined with reference to comparable companies and related capital structures.

Upon measurement the Company accrued a provision for impairment of the goodwill of the asset group of

Maxeon Solar Technologies Ltd. and no provision for impairment was required for the goodwill of other

asset groups.

95TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

26 Long-term deferred expenses

Increase in

Amortization in

December 31 2024 current Others December 31 2025

the period

period

Improvement expense 567528 176743 (68556) (11551) 664164

Others 1595929 2309248 (2256197) (30261) 1618719

21634572485991(2324753)(41812)2282883

27 Deferred income tax assets and deferred income tax liabilities

(1) Un-offset deferred income tax assets

December 31 2025 December 31 2024

Deductible Deductible

Deferred tax Deferred tax

temporary temporary

assets assets

difference difference

Deductible losses 31410984 4619028 27723181 4209631

Asset impairment

27704194171632516717434196

allowances

Provisions 1628857 190566 1618959 254359

Changes in fair value 28246 4739 56219 14055

Lease liabilities 6656326 686252 6683424 858412

Others 5682436 1228711 5817857 945951

481772687146459444163576716604

96TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

27 Deferred income tax assets and deferred income tax liabilities (continued)

(2) Un-offset deferred income tax liabilities

December 31 2025 December 31 2024

Taxable Deferred Taxable Deferred

temporary income tax temporary income tax

differences liabilities differences liabilities

Depreciation of fixed assets 25700461 3908598 25279356 3855131

Increase in value of assets as

assessed in business

combination not involving 5542570 1006170 3145703 607855

entities under common

control

Changes in fair value 774485 180214 345981 70110

Right-of-use assets 6189174 748587 6697688 923022

Others 701195 142165 2654782 318508

389078855985734381235105774626

(3) There were no deferred income tax assets or liabilities presented on a net basis after offsetting

Amount subject to mutual Closing balance of

offset of deferred income tax deferred income tax

Item assets against liabilities at the assets or liabilities after

end of the period offset

Deferred income tax assets (4210127) 2936332

Deferred income tax liabilities (4210127) 1775607

Amount subject to mutual Beginning balance of

offset of deferred income tax deferred income tax

Item assets against liabilities at the assets or liabilities after

beginning of the period offset

Deferred income tax assets (4230177) 2486427

Deferred income tax liabilities (4230177) 1544449

(4) Unrecognized deferred income tax assets

December 31 2025 December 31 2024

Deductible temporary difference 4760267 5638299

Deductible losses 39311744 26169314

4407201131807613

97TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

27 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:

December 31 2025 December 31 2024

2025-332986

20261042781783029

202718041521448111

202814085401471286

2029113880269104765

2030 onwards 23668245 13029137

3931174426169314

98TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

28 Other non-current assets

December 31 2025 December 31 2024

Gross Impairment Carrying Gross Impairment Carrying

amount allowance amount amount allowance amount

Other non-current 18311727 - 18311727 17917341 - 17917341

assets

Note Other non-current assets mainly include the prepayments for engineering equipment large-amount fixed-income

certificates of deposit and fixed-term deposits etc. which are subsequently measured at amortized cost.

29 Assets with restricted ownership or use rights

December 31 2025 Reason for restriction

Gross carrying

Carrying amount

amount

Deposited in the central

Monetary assets 361827 361827

bank as the required reserve

Other monetary assets and

Monetary assets 3467238 3467238

restricted bank deposits

Endorsement and attached

Notes receivable 6169 6169

recourse and pledge

Fixed assets 82094236 57155751 As collateral for loan

Intangible assets 3403899 2927721 As collateral for loan

Held-for-trading financial

410736 410736 In pledge

assets

Construction in progress 1540477 1540477 As collateral for loan

Accounts receivable 1068864 1049751 In pledge

Contract assets 173955 158012 In pledge

9252740167077682

99TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

29 Assets with restricted ownership or use rights (continued)

December 31 2024 Reason for restriction

Gross carrying

Carrying amount

amount

Deposited in the central

Monetary assets 278910 278910

bank as the required reserve

Other monetary assets and

Monetary assets 1867608 1867608

restricted bank deposits

Endorsement and attached

Notes receivable 61787 61787

recourse and pledge

Fixed assets 126224132 87482583 As collateral for loan

Intangible assets 4664141 3891403 As collateral for loan

Held-for-trading financial assets 476385 476385 In pledge

Construction in progress 3737949 3737949 As collateral for loan

Accounts receivable 879135 879135 In pledge

Contract assets 89180 82444 In pledge

Other non-current assets 320000 320000 Mortgaged

Other non-current assets due within

20000 20000 In pledge

one year

13861922799098204

30 Short-term borrowings

December 31 2025 December 31 2024

Unsecured borrowings 7373594 8123337

Borrowings secured by pledge 151577 54888

Interests payable 27352 15058

75525238193283

As at December 31 2025 the Company’s short-term pledged loans were equivalent to RMB 151577000

pledged withheld-for-trading financial assets equivalent to RMB 410736000.As of December 31 2025 the Company does not have any short-term borrowings that have expired and have

not been repaid.

100TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

31 Borrowings from the Central Bank

As of December 31 2025 the balance of the borrowings of TCL Technology Group Finance Co. Ltd. (a

subsidiary of the Company) from the Central Bank was RMB 29756000 (December 31 2024: RMB

600926000).

32 Customer deposits and deposits from banks and other financial institutions

December 31 2025 December 31 2024

Customer deposits and deposits from other

364714177654

banks and financial institutions

Customer deposits and deposits from banks and other financial institutions are the deposits of related and

non-related enterprises absorbed by TCL Technology Group Finance Co. Ltd. a subsidiary of the Company

within the business scope approved by the regulatory authority.

33 Held-for-trading financial liabilities

December 31 2025 December 31 2024

Financial liabilities measured at fair value

235717232406

through current profits and losses

34 Derivative financial liabilities

December 31 2025 December 31 2024

Derivative financial liabilities 50435 248845

35 Notes payable

December 31 2025 December 31 2024

Bank acceptance notes 6115352 6796785

Trade acceptance notes 350248 311057

64656007107842

As of December 31 2025 the Company had no notes payable that were due but not paid.

101TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

36 Accounts payable

December 31 2025 December 31 2024

Amounts due to suppliers 32251944 29347615

As of December 31 2025 there were no significant accounts payable aged over one year.

37 Advances from customers

December 31 2025 December 31 2024

Advances from customers 6823 2689

As of December 31 2025 the Company had no significant accounts receivable aged over one year.

38 Contract liabilities

December 31 2025 December 31 2024

Advances from customers 2009842 1969271

As at December 31 2025 the Company had no significant contract liability aged over one year.

39 Employee benefits payable and long-term employee benefits payable

(1) Employee compensation payable

December 31 2025 December 31 2024

Short-term employee benefits payable 4923490 4131966

Defined contribution plans payable 7788 29005

Dismissal benefits payable 35210 27266

49664884188237

102TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

39 Employee benefits payable and long-term employee benefits payable (continued)

(1) Employee benefits payable (continued)

(a) Short-term employee benefits presented

Increase in Decrease in

December 31 2024 current period current period December 31 2025

Wages bonuses allowances

and subsidies 4026548 12475736 (11706205) 4796079

Employee services and benefits - 529011 (529011) -

Social insurance benefits 28808 376201 (377329) 27680

Including: medical insurance

premium 28368 339983 (340833) 27518

Employment injury

insurance premiums 424 23351 (23624) 151

Maternity insurance 16 12867 (12872) 11

Housing fund 17824 394831 (395948) 16707

Trade union funds and staff

education funds 56820 197219 (180102) 73937

Other employee salaries 1966 68950 (61829) 9087

413196614041948(13250424)4923490

(b) Defined contribution plans

Increase in Decrease in

December 31 2024 current period current period December 31 2025

Basic pension insurance 28856 809484 (830797) 7543

Unemployment insurance 149 31894 (31798) 245

29005841378(862595)7788

(2) Long-term employee compensation payable

December 31 2025 December 31 2024

Supplementary pension

insurance 21605 22424

2160522424

103TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

40 Taxes and levies payable

December 31 2025 December 31 2024

Corporate income tax 516085 468325

Value-added tax 52591 160729

Individual income tax 55338 35147

Urban maintenance and construction tax 228297 203667

Education surcharges 163074 145475

Others 222949 192755

12383341206098

41 Other payables

December 31 2025 December 31 2024

Dividends payable 48249 13131

Other payables 17667389 20058938

1771563820072069

(1) Dividends payable

December 31 2025 December 31 2024

Other non-controlling interests 48249 13131

4824913131

(2) Other payables

December 31 2025 December 31 2024

Payables for engineering equipment 11584251 14150023

Unpaid expenses 3077039 2796611

Security and deposits 555385 581027

Others 2450714 2531277

1766738920058938

104TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

42 Held-for-sale liabilities

December 31 2025 December 31 2024

Maxeon to sell 100% equity of its

Malaysian subsidiary SPMIY 71510 -

43 Non-current liabilities due within one year

December 31 2025 December 31 2024

Long-term borrowings due within one year (Note 1) 45 23171348 26434993

Bonds payable due within one year (Note 2) 46 3706995 7868074

Long-term payables due within one year 1270633 1187771

Interest payable due within one year 252392 374059

Lease liabilities due within one year 47 2507728 348638

Long-term employee compensation payable due

within one year 688 10948

3090978436224483

Note 1 The interest rates of the Company’s long-term borrowing due within one year ranged from 2.1% to 4.3% in

the current period (2024: from 2.1% to 4.3%).Note 2 The Company's bonds payable due within one year are mainly as follows:

1 Medium-term note 23TCL Group MTN001 (Sci-Tech Innovation Notes): Issued in February 2023

with a term of 3 years the closing balance as at December 31 2025 was RMB 1499875000.

2 Corporate bond 24TCLK1: Issued in February 2024 with a term of 2 years the closing balance as at

December 31 2025 was RMB 1499747000.

3 Corporate bond 25TCLDK: Issued in December 2025 with a term of 0.5 years the closing balance as

at December 31 2025 was RMB 500000000.

4 Convertible bond 2L Note: Issued in June 2024 with a term of 3.6 years the closing balance as at

December 31 2025 was RMB 207373000. The creditors are entitled to redeem it whenever they want.

44 Other current liabilities

December 31 2025 December 31 2024

After-sales service expense (note) 1383990 1255175

Output tax to be transferred 172922 120002

Others 105232 109738

16621441484915

Note After-sales service expense expected to occur within 1 year is presented in other current liabilities.

105TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

45 Long-term borrowings

December 31 2025 December 31 2024

Borrowings secured by collateral 17359693 41035441

Borrowings secured by pledge 3072898 3239538

Unsecured borrowings 118878106 98975145

139310697143250124

Including: long-term loans due within one year (23171348) (26434993)

116139349116815131

As at December 31 2025 the long-term borrowings secured by collateral were equivalent to RMB

17359693000 (December 31 2024: RMB 41035441000) which were secured by the collateral of the land

use rights houses and buildings machinery and equipment of about RMB 61509833000 (December 31

2024: RMB 94531938000); the long-term pledged borrowings were equivalent to RMB 3072898000

(December 31 2024: RMB 3239538000) which were pledged by the accounts receivable and contract

assets of about RMB 511728000 (December 31 2024: RMB 403810000).The interest rates of the Company’s long-term borrowing ranged from 1.8% to 4.9% in the current period

(2024: from 2.1% to 5.7%).

46 Bonds payable

December 31 2025 December 31 2024

Corporate bonds 4990207 4989943

MTN 2991667 1498677

79818746488620

106TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

46 Bonds payable (continued)

(1) Movements in bonds payable

Accrued

Issued December Issued in interest Amortization RepaidBond name Par value Issue date Maturity Decemberamount 31 2024 current as per par of premium in current Others (note)period value or discount period

312025

23TCL Group MTN001

(Sci-Tech Innovation Notes) 1500000 February 3 2023 3 1500000 1498677 - 61342 - - (1498677) -

24TCLK1 1500000 January 30 2024 2 1500000 1499269 - 27620 - - (1499269) -

24TCLK2 1500000 April 9 2024 5 1500000 1496967 - 40350 1349 - - 1498316

24TCLK3 1000000 July 4 2024 5 1000000 997754 - 22900 900 - - 998654

24TCLK4 1000000 July 4 2024 5 1000000 995953 - 24600 900 - - 996853

25TCL Group MTN001A

(Sci-Tech Innovation Notes) 1000000 January 8 2025 3 1000000 - 1000000 19507 (1620) - - 998380

25TCL Group MTN001B

(Sci-Tech Innovation Notes) 1000000 January 8 2025 5 1000000 - 1000000 25359 (3221) - - 996779

25TCL Group MTN002

(Sci-Tech Innovation Bonds) 1000000 May 12 2025 5 1000000 - 1000000 15890 (3492) - - 996508

25TCLK1 1500000 December 17 2025 3 1500000 - 1500000 1197 (3616) - - 1496384

Total 11000000 11000000 6488620 4500000 238765 (8800) - (2997946) 7981874

Note Others are bonds payable within one year which are reclassified to non-current liabilities due within one year and exchange adjustment.

107TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

47 Lease liabilities

December 31 2025 December 31 2024

Total lease liabilities 6656326 6683424

Less: Lease liabilities due within one year 2507728 348638

41485986334786

48 Long-term payables

December 31 2025 December 31 2024

Finance lease 1388759 1994812

49 Deferred income

December 31 2024 Increase in Decrease incurrent period current period December 31 2025

Public grants 1014891 6155806 (5019521) 2151176

10148916155806(5019521)2151176

Items involving public grants

Written off

December 31 RecognizedIncrease in other against the Other December 312024 income cost of the changes 2025asset/expenses

Public grants related

to assets 276006 1047172 (3903) (425518) (144860) 748897

Public grants related

to income 738885 5108634 (1940522) (2449332) (55386) 1402279

10148916155806(1944425)(2874850)(200246)2151176

108TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

50 Estimated liabilities

December 31 2025 December 31 2024

After-sales service fee of products 180266 206991

Pending litigation 51214 42227

231480249218

51 Other non-current liabilities

December 31 2025 December 31 2024

Other non-current liabilities 25635 27508

109TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

52 Share capital

December 31 2024 Increase or decrease in current period December 31 2025

converted from

Amount Ratio New issues capital reserve Others Subtotal Amount Ratio

I. Restricted Shares 679458 3.62% 2021781 - 2923 2024704 2704162 13%

II. Non-restricted

shares 18099623 96.38% - - (2923) (2923) 18096700 87%

III. Total shares 18779081 100% 2021781 - - 2021781 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.

110TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

53 Capital reserves

Increase in Decrease in

December 31 2024 current period current period December 31 2025

Share capital premium 10105906 7013829 (3584470) 13535265

Other capital reserves 447175 500899 (327614) 620460

105530817514728(3912084)14155725

54 Treasury share

December 31 2024 Increase in Decrease incurrent period current period December 31 2025

Treasury share 919322 800000 (215670) 1503652

The increase in the period is mainly stock repurchases for the employee stock ownership plan or the equity

incentives of the Company. On April 15 2025 the Company held the 9th meeting of the 8th Board of

Directors to deliberate and approve the Proposal on the Repurchase of Part of the Publicly Held Shares in

2025. 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 December 31 2025 the repurchase

plan had been fully completed and the total number of shares repurchased was 174748000 shares at the

total consideration of RMB 800 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.

111TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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

20252024

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 (32575) 146177

Share of the period (32544) 152303

Previous other comprehensive income reclassified to retained (31)

earnings for the current period (6126)

2. Changes in fair value of other equity instruments (51519) (1195)

Current gain/(loss) (50377) (195)

Previous other comprehensive income reclassified to retained -

earnings for the current period -

Income tax effects recorded in other comprehensive income (1142) (1000)

3. Changes caused by re-measurement of net liabilities or net assets (97150)

of defined benefit plans (669)

Including: Amount of changes caused by re-measurement of (97150)

defined benefit plans (669)

II. Items that will be reclassified to profit or loss subsequently

1. Share of other comprehensive income of investees that will be (258798)

reclassified to profit or loss under the equity method 154776

Share of the period (258798) 155367

Income tax effects recorded in other comprehensive income - -

Less: Amount previously included in other comprehensive -

income transferred to profit or loss in the current period (591)

2. Changes in fair value of financial assets recorded in other -

comprehensive income -

Current gain/(loss) - -

3. Cash flow hedges (5) (21994)

Current gain/(loss) (5) (15627)

Previous other comprehensive income reclassified to profit for -

current period (5234)

Income tax effects recorded in other comprehensive income - (1133)

4. Differences arising from translation of foreign currency financial 133536

statements of overseas operations (94402)

5. Net income arising from disposal of overseas operations through -

profit or loss -

(306511)182693

112TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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

Changes

Share of other Differences caused by

comprehensive Financial arising from re-measure Other

Change of income of investees assets Gain/(Loss) translation of Fair valueon changes in foreign changes ment of net

comprehensi Total other

accounting that will be Gain or loss liabilities or ve income Subtotal Non-controlling comprehensive

policies reclassified to profit or on fair-value cash flow currency-deno of other equityhedges minated instruments net assets of

transferred interests income

loss under the equity changes defined to retained

method financial earningsstatements benefitplans

December 31 2023 334950 24965 (350569) 28743 (660890) (216409) - (106588) (945798) 20996 (924802)

Movement of 2024 - 300954 - (14569) (80651) 5931 (200) (6126) 205339 (22646) 182693

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)

113TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

56 Surplus reserves

Increase in Decrease in

December 31 2024 current period current period December 31 2025

Statutory surplus

reserves 3791516 122429 - 3913945

Discretionary surplus

reserves 182870 - - 182870

3974386122429-4096815

57 Specific reserves

Appropriation

December 31 2024 in current Decrease incurrent period December 31 2025period

Production safety

reserve 7189 12929 (14520) 5598

58 General risk reserve

Decrease in

Appropriation in current

December 31 2024 current period period December 31 2025

General risk reserve 8934 - - 8934

114TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

59 Retained earnings

20252024

Retained earnings at the beginning of the year 21504719 21537188

Change of accounting policies - -

Net profits for current period 4516782 1564112

Decrease in current period (1110667) (1596581)

Including: Appropriation of surplus reserves (122429) (100380)

Distributed to ordinary shareholders as dividends (988269) (1502327)

Others 31 6126

Retained earnings at the end of the period 24910834 21504719

60 Operating revenue and operating cost

20252024

Operating Operating Operating

revenue cost revenue Operating cost

Core business 179180016 156537865 160027793 142183466

Non-core business 4883375 3319622 4795040 3538970

184063391159857487164822833145722436

(1) Business by operating segment

Operating revenue Operating cost Gross profit

202520242025202420252024

Domestic

sales 116355212 109583288 106350699 102058220 10004513 7525068

Foreign

sales 67708179 55239545 53506788 43664216 14201391 11575329

1840633911648228331598574871457224362420590419100397

(2) The total revenue from the sales to the top five customers was RMB 62166135000 and RMB

56891059000 respectively for 2025 and 2024 accounting for 33.8% and 34.5% of the revenue.

115TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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:

20252024

Operating revenue 2189957 2203472

Operating cost 1810087 1757498

61 Interest income/expense and exchange gain

20252024

Interest income 147524 140005

Interest expenditures 13055 22073

Exchange gain/(loss) 898 (362)

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

20252024

Property tax 545454 438086

Urban maintenance and construction tax 264474 220955

Stamp tax 204566 181564

Education surcharges 191501 157919

Land use tax 49301 32043

Others 19506 18404

12748021048971

116TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

63 Sales expenses

20252024

Employee salaries and benefits 1263960 1003909

Promotional and marketing expenses 375768 237111

Others 763886 813053

24036142054073

64 Administrative expense

20252024

Employee salaries and benefits 2198212 2238561

Depreciation and amortization expenses 913102 836608

Expenses for hiring intermediaries 559443 535777

Others 930508 835344

46012654446290

65 R&D expenses

20252024

Depreciation and amortization expenses 5419975 4683923

Material expenses 1500313 1108938

Employee salaries and benefits 2912874 2531319

Others 1311580 1109107

111447429433287

66 Financial expenses

20252024

Interest expenditures 4952205 5052071

Interest income (626161) (687992)

Exchange loss/(gain) 325687 (293252)

Others 117975 108443

47697064179270

117TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

67 Other income

20252024

R&D subsidies 1255277 918344

VAT rebates on software 52686 61601

Over-deduction in taxable amount for VAT 411163 677519

Others 728116 295951

24472421953415

68 Return on investment

20252024

Revenue from long-term equity investment

accounted for using the equity method 1720847 436920

Net income from disposal of long-term equity

investments (43892) 151742

Return on holding of held-for-trading financial

assets 253055 659486

Return on disposal of held-for-trading financial

assets 182524 74547

Others 409766 76845

25223001399540

69 Gain on changes in fair value

20252024

Held-for-trading financial assets 854843 368782

Held-for-trading financial liabilities (15357) 32941

Derivative financial instruments 149132 78131

988618479854

118TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

70 Credit impairment loss

20252024

Loss on uncollectible accounts receivable (76674) 7525

Loss on uncollectible other receivables (12799) (10476)

Other financial assets 12867 4360

(76606)1409

71 Asset impairment loss

20252024

Inventory valuation loss (4147390) (4839570)

Impairment loss on long-term equity

investments (18614) -

Loss on impairment of goodwill (559744) (918405)

Loss on impairment of fixed assets (501782) (231500)

Others (315916) (37259)

(5543446)(6026734)

72 Asset disposal income

20252024

Income/(loss) from disposal of fixed assets 3930 14866

Income/(loss) from disposal of intangible assets - 21121

Others (805) 2481

312538468

73 Non-operating income

Amount through

2025 2024 currentnon-recurring gains

and losses

Gains on retired or damaged

non-current assets 61 159 61

Revenue from liquidated damages and

others 114340 291399 114340

114401291558114401

119TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

74 Non-operating expense

Amount through

2025 2024 currentnon-recurring gains

and losses

Losses on retired or damaged

non-current assets 24946 47210 24946

Donation 45162 30313 45162

Others 98023 69868 98023

168131147391168131

75 Income tax expenses

(1) Table of income tax expenses

20252024

Current income tax expense 986815 645228

Deferred income tax expense (766017) (442891)

220798202337

(2) Accounting profit and income tax adjustment process

20252024

Gross profit 434645 (3953805)

Income tax expense calculated at statutory/applicable

tax rate 108661 (593071)

Impact of different tax rates applied to subsidiaries 162440 626099

Impact of adjusting income tax in previous periods (31163) 12837

Impact of non-deductible costs expenses and losses 68775 75124

Impact of the use of deductible losses carried forward

without recognizing deferred income tax assets in the (92378) 71551

previous periods

Impact of unrecognized deferred income tax assets of

deductible temporary differences or deductible losses 1619612 1503530

in the current period

Tax incentives and others (1615149) (1493733)

Income tax expense 220798 202337

120TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

76 Earnings per share

(1) Basic earnings per share

20252024

Net profits attributable to shareholders of the parent company 4516782 1564112

Weighted average outstanding ordinary shares (in thousand shares) 19363767 18575877

Basic earnings per share (RMB yuan) 0.2333 0.0842

(2) Diluted earnings per share

20252024

Net profits attributable to shareholders of the parent company 4516782 1564112

Diluted weighted average outstanding ordinary shares (in thousand

shares) 19626439 18779081

Diluted earnings per share (RMB yuan) 0.2301 0.0833

77 Cash generated from other operating activities

Other cash received from operating activities in the consolidated cash flow statement was RMB 12004168000

(year-on-year: RMB 9568245000) which primarily consisted of current payments received public grants and

special appropriations etc.

78 Cash used in other operating activities

Other cash paid for other operating activities in the consolidated cash flow statement was RMB 15366846000

(year-on-year: RMB 16113346000) which primarily consisted of various expenses and current payments etc.

79 Cash generated from other investing activities

Other cash received from investing activities in the consolidated cash flow statement was RMB 680220000

(year-on-year: RMB 825135000) 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 for investing activities in the consolidated cash flow statement was RMB 477950000

(year-on-year: RMB 1232830000) which primarily consisted of the payments for foreign exchange forward

delivery etc.

121TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

81 Cash generated from other financing activities

Other cash received from financing activities in the consolidated cash flow statement was RMB 572729000 (year-on-year: RMB 1032222000) which primarily

consisted of the payment for sales of treasury shares receipt of finance leasing borrowings etc.

82 Cash used in other financing activities

The cash paid for other financing activities in the consolidated statement of cash flows of the Company amounted to RMB 16318269000 (RMB 2252450000 for

the same period of last year) mainly including payments for the repurchase of minority interests share repurchases and finance lease payments.Increase in current period Decrease in current period

Item December 31 2024 Cash Non-cash December 31 2025

movements movements Cash movements

Non-cash

movements

Dividends payable 13131 - 1072404 (1037286) - 48249

Short-term borrowings 8193283 17626139 205989 (18395460) (77428) 7552523

Long-term borrowings (including non-current liabilities

due within one year) 143328431 63843317 27772548 (77442755) (18152300) 139349241

Bonds payable (including non-current liabilities due

within one year) 14652446 7240000 355664 (10345393) - 11902717

Lease liabilities (including non-current liabilities due

within one year) 6683424 - 667708 (575121) (119685) 6656326

Long-term payables (including non-current liabilities

due within one year) 3095410 385000 184025 (1640850) (17516) 2006069

Total 175966125 89094456 30258338 (109436865) (18366929) 167515125

122TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

83 Supplementary information for the cash flow statement

(1) Reconciliation of net profits to net cash generated from/used in operating activities

20252024

Net profits 213847 (4156142)

Add: Asset impairment allowance 5620052 6025325

Depreciation of fixed assets and investment properties 27071781 25072978

Depreciation of right-of-use assets 522143 440759

Amortization of intangible assets 3354136 2441310

Amortization of long-term deferred expenses 2324753 2626845

Loss/(Gain) on disposal of fixed assets intangible assets and

other long-term assets (3125) (38468)

Loss/(Gain) on retired or damaged fixed assets 24885 47068

Loss/(Gain) on changes in fair value (988618) (479854)

Financial expenses 5290049 4781254

Return on investment (2522300) (1399540)

Decrease/(Increase) in deferred income tax assets (420228) (224267)

Increase/(Decrease) in deferred income tax liabilities 144154 (102200)

Decrease/(Increase) in inventory (4561093) (2836813)

Decrease/(Increase) in operating receivables 9608392 (1423995)

Increase/(Decrease) in operating payables 90608 (1028627)

Others (1747738) (219062)

Net cash generated from operating activities 44021698 29526571

123TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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

20252024

Payments of cash and cash equivalents made in the current period

due to business combinations incurred in the current period 13263078 736573

Less: cash and cash equivalents held by subsidiary on acquisition

date 6896898 1025486

Add: Payments of cash and cash equivalents made in the current

period due to business combinations incurred in previous periods - -

Net cash payments for acquisition of subsidiaries 6366180 (288913)

(3) Net cash proceeds from disposal of subsidiaries in the current period

20252024

Cash or cash equivalents received in current period due to disposal

of subsidiary in the current period - -

Less: Cash and cash equivalents held by subsidiary on the date

when the Company’s control over the subsidiary ceased - 86

Add: Cash or cash equivalents received in the current period due to

disposal of subsidiaries in prior periods - 35283

Net cash proceeds from the disposal of subsidiaries - 35197

(4) Breakdown of cash and cash equivalents

20252024

I. Cash 26565803 20861255

Including: Cash on hand 418 482

Bank deposits available for payment on demand 26293409 20524146

Other monetary assets are available for payment on demand 266120 330273

Deposits with the central bank available for payment 5856 6354

II. Cash equivalents - -

III. Ending balance of cash and cash equivalents 26565803 20861255

124TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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:

20252024

Payment for procurement of inventory by bank acceptance bills 1700848 4000136

Payment for procurement of long-term assets by bank acceptance bills 2817402 5003579

Right-of-use assets newly added in the current period 331117 1256742

484936710260457

84 Net changes in cash and cash equivalents

20252024

Ending balance of cash and cash equivalents 26565803 20861255

Less: Cash at the beginning of the year 20861255 19996815

Net increase in cash and cash equivalents 5704548 864440

Analysis of ending balance and cash equivalents:

Monetary assets at the end of the period 30460060 23007773

Less: Non-cash equivalents at the end of the period (note) 3894257 2146518

Ending balance of cash and cash equivalents 26565803 20861255

Note: The ending non-cash equivalents primarily included interest receivable on bank deposits the statutory reserve

deposits placed by TCL Technology Group Finance Co. Ltd. in the central bank and other monetary assets

detailed in Note V. 1.

125TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

85 Foreign currency monetary items

December 31 2025

Foreign

currency Conversion rate RMB balance

balance

Monetary assets

Including: USD 587022 7.0288 4126060

INR 2072385 0.0781 161853

EUR 3853 8.2539 31802

Other foreign

currencies 70604

Accounts receivable

Including: USD 1463630 7.0288 10287563

INR 7535736 0.0781 588541

EUR 16164 8.2539 133416

Other foreign

currencies 2589

Receivables financing

Including: USD 34507 7.0288 242542

Accounts payable

Including: USD 606184 7.0288 4260746

JPY 16647846 0.0450 749153

HKD 255212 0.9029 230431

Other foreign

currencies 86945

Other receivables

Including: USD 28192 7.0288 198156

MXN 401832 0.3903 156835

Other foreign

currencies 21520

Other payables

Including: USD 484065 7.0288 3402396

JPY 9703255 0.0450 436646

Other foreign

currencies 90122

Short-term borrowings

Including: USD 21564 7.0288 151569

Long-term borrowings

Including: USD 190000 7.0288 1335472

Long-term borrowings due

within one year

Including: USD 10245 7.0288 72010

126TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

V Notes to Consolidated Financial Statements (Continued)

86 Leases

(1) The Company acting as a lessee

In 2025 short-term lease rents low-value asset rents and income obtained from subleasing

right-of-use assets for which the Group acting as a lessee chose simplified accounting were not

significant.

(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 250551 -

Machinery equipment 3888 -

Others 2109 -

Total 256548 -

* Finance leases where the Company acts as a lessor

Income related to variable

Item Sales gains and losses Financingincome lease payments not includedin net lease investment

Finance lease - 36355 -

Total - 36355 -

Annual undiscounted lease receipts for the next five years

Annual undiscounted lease receipts

Item December 31 2025 December 31 2024

Year 1 281923 209266

Year 2 221154 182692

Year 3 195366 167400

Year 4 184634 154531

Year 5 83117 155548

Total undiscounted lease receipts

after five years 858768 1348902

127TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

VI R&D expenses

1 Presentation by nature of expenses

Item 2025 2024

Material costs 3284514 2491361

Labor costs 3355581 3064488

Depreciations and amortizations 2137692 2037990

Others 758666 1275901

Total 9536453 8869740

Including: Expensed R&D

expenses 7289297 5997436

Capitalized R&D expenses 2247156 2872304

2 Development expenditures of R&D projects eligible for capitalization

Increase in

current period Decrease in current period

Item Beginning Endingbalance Internal Recognized

development Others Included in profits

balance

as intangible Others

expenditures and lossesassets

Display 1165388 2012787 - (48809) (459122) (1707157) 963087

New

energy

photovolt

aics and 666056 234369 - (658557) - - 241868

other

silicon

materials

Total 1831444 2247156 - (707366) (459122) (1707157) 1204955

3 As of December 31 2025 the Company had no significant outsourced projects under research.

128TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

VII Changes to the Consolidation Scope

1 Business combination not under common control

(1) Acquisition of equity of Guangzhou China Star Optoelectronics Display Co. Ltd.

1 The cost of acquisition and goodwill were recognized as follows:

As at April 1 2025 (the "Acquisition Date") the Group acquired 100% equity of Guangzhou

China Star Optoelectronics Display Co. Ltd. at a cash consideration of RMB 698900000 and

included such company into the scope of consolidation.Cash consideration 698900

Less: Share of fair value of identifiable net assets acquired 635118

Goodwill amount 63782

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 7701743 7233438

Total liabilities 7066625 6949549

Net assets 635118 283889

Less: non-controlling interests - -

Net assets acquired 635118 283889

(2) Acquisition of equity of Guangzhou China Star Optoelectronics Technology Co. Ltd.

1 The cost of acquisition and goodwill were recognized as follows:

As at April 1 2025 (the "Acquisition Date") the Group acquired 100% equity of Guangzhou

China Star Optoelectronics Technology Co. Ltd. at a cash consideration of RMB 13003810000

and included such company into the scope of consolidation.Cash consideration 13003808

Less: Share of fair value of identifiable net assets acquired 12176264

Goodwill amount 827544

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 14206277 11368495

Total liabilities 2030013 1604346

Net assets 12176264 9764149

Less: non-controlling interests - -

Net assets acquired 12176264 9764149

129TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

VII Changes to Consolidation Scope (Continued)

1 Business combination not under common control (continued)

(3) Acquisition of equity of Tianjin Xuhua Industrial Park Development Co. Ltd.

* The cost of acquisition and goodwill were recognized as follows:

As at September 30 2025 (the "Acquisition Date") the Group acquired 100% equity of Tianjin Xuhua

Industrial Park Development Co. Ltd. at a cash consideration of RMB 363853000 and included such

company into the scope of consolidation.Cash consideration 363853

Less: Share of fair value of identifiable net assets acquired 363853

Goodwill amount -

* 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 832911 825791

Total liabilities 469058 467646

Net assets 363853 358145

Less: non-controlling interests - -

Net assets acquired 363853 358145

(4) Acquisition of equity of Shenzhen Pulin Gaote Circuit Co. Ltd.

* The cost of acquisition and goodwill were recognized as follows:

As at May 21 2025 (the "Acquisition Date") the Group acquired 100% equity of Shenzhen Pulin Gaote

Circuit Co. Ltd. at a cash consideration of RMB 2 and included such company into the scope of

consolidation.Assets and liabilities of the acquired party as at the acquisition date are nil.

2 No business combination under common control occurred in current period.

130TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

VII Changes to Consolidation Scope (continued)

3 Disposal of subsidiaries

Name of subsidiary Hohhot Shuguang New Energy Co. Ltd. Shanxi Province Loufan County Huanshuo NewEnergy Co. Ltd.Price for equity interest disposal - -

% equity interest disposed 100% 100%

Way of equity disposal Sale Sale

Time of loss of control June 30 2025 June 30 2025

Determination basis for time of loss of control The operating risk has been transferred 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 (12000) 25

relevant to the disposed equity interest

Name of subsidiary Xuzhou Huanneng New Energy Co. Ltd. Tianjin Binhai Huanxu New Energy Co. Ltd.Price for equity interest disposal - -

% equity interest disposed 100% 100%

Way of equity disposal Sale Sale

Time of loss of control June 30 2025 June 30 2025

Determination basis for time of loss of control The operating risk has been transferred 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 (2077) (1774)

relevant to the disposed equity interest

Name of subsidiary Heilongjiang Huanju New Energy Co. Ltd. Hangjinhou Banner Guangsen New Energy Co.Ltd.Price for equity interest disposal - -

% equity interest disposed 100% 100%

Way of equity disposal Sale Sale

Time of loss of control June 30 2025 December 31 2025

Determination basis for time of loss of control The operating risk has been transferred 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 (661) 1565

relevant to the disposed equity interest

Name of subsidiary Hangjinhouqi Yusheng New Energy Co. Ltd. Lumetech B.V.Price for equity interest disposal - 110513

% equity interest disposed 100% 90.1%

Way of equity disposal Sale Sale

Time of loss of control December 31 2025 April 1 2025

Determination basis for time of loss of control The operating risk has been transferred 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 - 19705

relevant to the disposed equity interest

131TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

VII Changes to Consolidation Scope (continued)

3 Disposal of subsidiaries (continued)

Name of subsidiary Guangzhou Ruixin Commercial Co.Ltd.Price for equity interest disposal 10000

% equity interest disposed 100%

Way of equity disposal Sale

Time of loss of control September 30 2025

Determination basis for time of loss of control The operating risk has been transferred

Difference between the disposal price and the Company’s share of the

subsidiary’s net assets in the consolidated financial statements relevant to the (654)

disposed equity interest

132TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

VII Changes to Consolidation Scope (continued)

4 Changes in the scope of consolidation for other reasons

Name of investee Reason for change

Zhengzhou Shangzhao Electronic Technology Co. Ltd. Newly established

Chongqing Sunpiestore Technology Co. Ltd. Newly established

Chongqing Shangpai Zhengcheng Technology Co. Ltd. Newly established

Guizhou Shangpai Zhengcheng Technology Co. Ltd. Newly established

Urumqi Shangpai Lingchuang Trading Development Co. Ltd. Newly established

Anyang Shangyi Technology Co. Ltd. Newly established

Chongqing Shangpai Zhengyan Technology Co. Ltd. Newly established

Changji Shangpai Yifan Trading Co. Ltd. Newly established

Urumqi Shangpai Zhuoyao Trading Development Co. Ltd. Newly established

Shake Kawo (Xi'an) Technology Co. Ltd. Newly established

Xi'an Shengkai Shangpai Technology Co. Ltd. Newly established

Luoyang Shangyi Electronic Technology Co. Ltd. Newly established

Zhengzhou Shangfeng Electronic Technology Co. Ltd. Newly established

Xi'an Shake Jisu Technology Co. Ltd. Newly established

Luoyang Shangxuan Electronic Technology Co. Ltd. Newly established

Xi'an Shengfeng Shangpai Technology Co. Ltd. Newly established

Chongqing Shangpai Zhengqi Technology Co. Ltd. Newly established

Chongqing Shangpai Zhengfu Technology Co. Ltd. Newly established

Chongqing Shangpai Zhengxin Technology Co. Ltd. Newly established

Chongqing Shangpai Zhenghong Technology Co. Ltd. Newly established

Chongqing Shangpai Zhengrong Technology Co. Ltd. Newly established

Luoyang Shangwu Electronic Technology Co. Ltd. Newly established

Zhengzhou TiTi Yunchuang Technology Co. Ltd. Newly established

Maoxing Holdings Limited Capital increase for controlling interest

Mingsi Technology Co. Ltd. Newly established

Guangzhou China Star Optoelectronics Printed Display Newly established

Technology Co. Ltd.Chongqing Shangpai Zhenghui Technology Co. Ltd. Newly established

Zhengzhou Shanghong Electronic Technology Co. Ltd. Newly established

Foshan Shangpai Electronic Technology Co. Ltd. Newly established

Huizhou Sunpiestore Technology Co. Ltd. Newly established

Chongqing Shangpai Zhengyu Technology Co. Ltd. Newly established

Chongqing Shangpai Zhengyin Technology Co. Ltd. Newly established

Shenzhen Shangpai Zhuoyue Technology Co. Ltd. Newly established

Guangzhou Shangpai Digital Co. Ltd. Newly established

Qingdao Shanhai Nabian Information Service Co. Ltd. Newly established

Lumetech S.A. Pte Ltd Newly established

Lumetech Energy Newly established

TCL International Marketing Limited (BVI) De-registered

Guizhou Sunpiestore Technology Co. Ltd. De-registered

133TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

VII Changes to Consolidation Scope (continued)

4 Changes in the scope of consolidation for other reasons (continued)

Name of investee Reason for change

Tianjin Xincheng Pilot Technology Co. Ltd. De-registered

StoryHold LLC De-registered

Lumetech LLC De-registered

Jiangsu Lixin Bandaoti Technology Co. Ltd. De-registered

Singapore NExcel Electronic Technology Co. Ltd. De-registered

134TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 percentage How subsidiaryregistration business of business was obtained

Direct Indirect

TCL China Star Optoelectronics Technology

Shenzhen ManufacturingCo. Ltd. and sales Shenzhen 82.21% - Incorporated

Shenzhen China Star Optoelectronics Manufacturing

Bandaoti Display Technology Co. Ltd. Shenzhen and sales Shenzhen 21.53% 62.68% Incorporated

Guangzhou China Ray Optoelectronic Research and

Materials Co. Ltd. Guangzhou development Guangzhou - 100.00% Incorporated

Wuhan China Star Optoelectronics Manufacturing

Technology Co. Ltd. Wuhan and sales Wuhan - 99.16% Incorporated

Wuhan China Star Optoelectronics Bandaoti Manufacturing

Display 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

Bermuda Investment combination notHoldings Limited holding Bermuda - 64.20% under common

control

China Display Optoelectronics Technology Manufacturing

(Huizhou) Co. Ltd. Huizhou and sales Huizhou - 100.00% Incorporated

Wuhan China Display Optoelectronics Manufacturing

Technology Co. Ltd. Wuhan and sales Wuhan - 100.00% Incorporated

Business

Suzhou China Star Optoelectronics

Suzhou ManufacturingTechnology Co. Ltd. and sales Suzhou - 100.00%

combination not

under common

control

Business

Suzhou China Star Optoelectronics Display Manufacturing combination not

Co. Ltd. Suzhou and sales Suzhou - 100.00% under common

control

Guangzhou China Star Optoelectronics

Guangzhou ManufacturingBandaoti Display Technology Co. Ltd. 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

135TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 of percentage How subsidiaryregistration business business was obtained

Direct Indirect

Business

Guangzhou China Star Optoelectronics z

Technology Co. Ltd. Guangzhou

Manufacturing

and sales Guangzhou - 100.00%

combination not

under common

control

Guangzhou China Star Optoelectronics Printed Guangzhou Manufacturing Guangzhou - 17.65% IncorporatedDisplay Technology Co. Ltd. and sales

Highly Information Industry Co. Ltd. Beijing Product Beijing 66.46% - Incorporateddistribution

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 Shenzhen Investment IncorporatedInvestment Co. Ltd. business Shenzhen 100.00% -

Ningbo TCL Equity Investment Ltd. Ningbo Investmentbusiness Shenzhen 100.00% -

Incorporated

TCL Technology Park (Huizhou) Co. Ltd. Huizhou Propertymanagement Huizhou - 100.00%

Incorporated

TCL Technology Investments Limited Hong Kong Investment Hong Kong 100.00% - Incorporatedbusiness

Business

TCL Zhonghuan Renewable Energy Technology Tianjin ManufacturingCo. Ltd. ("TZE") and sales Tianjin 2.55% 27.36%

combination not

under common

control

Business

Tianjin Printronics Circuit Corporation Tianjin Manufacturing Tianjin - 29.42% combination not("TPC") and sales under common

control

Business

Inner Mongolia Zhonghuan Crystal Materials Co. Inner Manufacturing

Ltd. Mongolia and sales Inner Mongolia - 83.96%

combination not

under common

control

Ningxia Hui Business

Ningxia Zhonghuan Solar Material Co. Ltd. Autonomous Manufacturing

Ningxia Hui

and sales Autonomous - 100.00%

combination not

Region Region under commoncontrol

Business

Tianjin Huanou Bandaoti Material&Technology Tianjin Manufacturing combination notCo. Ltd. and sales Tianjin - 100.00% under common

control

136TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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

Shareholding How subsidiary

registration business of business percentageDirect Indirect was obtained

Business

Wuxi Zhonghuan Applied Materials Co. Ltd. Jiangsu Manufacturing combination notand sales Jiangsu - 98.08% under common

control

Business

Inner Mongolia Zhonghuan Solar Material Co. Inner Mongolia Manufacturing combination notLtd. and sales Inner Mongolia - 100.00% under common

control

Business

Tianjin Huanou International Silicon Material Co.Ltd. Tianjin Sales Tianjin - 100.00%

combination not

under common

control

Business

Zhonghuan Hong Kong Holding Limited Hong Kong Import and Hong Kong - 100.00% combination notexport under common

control

Business

Zhonghuan Advanced Bandaoti Technology Co.Ltd. Jiangsu

Manufacturing

and sales Jiangsu 6.82% 32.72%

combination not

under common

control

Business

TCL Zhonghuan Energy Technology (Jiangsu)

Co. Ltd. Jiangsu

Manufacturing

and sales Jiangsu - 100.00%

combination not

under common

control

Business

Huansheng New Energy (Jiangsu) Co. Ltd. Jiangsu Manufacturing combination notand sales Jiangsu - 95.74% under common

control

Business

Huansheng New Energy (Tianjin) Co. Ltd. Tianjin Manufacturingand sales Tianjin - 87.33%

combination not

under common

control

Power

generation Business

Tianjin Zhonghuan New Energy Co. Ltd. Tianjin powertransmission Tianjin - 100.00%

combination not

under common

power supply control

(distribution)

Business

Tianjin Huanrui Electronic Technology Co. Ltd. Tianjin Purchase Tianjin - 100.00% combination notunder common

control

Business

Moka International Limited BVI Investmentholding BVI - 100.00%

combination not

under common

control

Business

Moka Technology (Guangdong) Co. Ltd. Huizhou Manufacturingand sales Huizhou - 100.00%

combination not

under common

control

137TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 17.79% 2645709 - 36952422

Co. Ltd.TCL Zhonghuan Renewable

Energy Technology Co. Ltd. 70.09% (7103124) - 31207210

Highly Information Industry

Co. Ltd. 33.54% 78153 20252 693901

138TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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:

December 31 2025 December 31 2024

Current Non-current Current Non-current Total Current Non-current Total assets Current Non-current Total

assets assets Total assets liabilities liabilities liabilities assets assets liabilities liabilities liabilities

TCL China Star

Optoelectronics

583145471441430392024575865359648762413781116010268451432621496843001948275625817206061482749119654809

Technology

Co. Ltd.TCL

Zhonghuan

Renewable

31636065863611081179971733062855048109574787381243228642793311098125597525275244125160300479127416

Energy

Technology

Co. Ltd.Highly

Information

796850620021981687256430252267676457019696000916996471299735540519212585561777

Industry Co.Ltd.

139TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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:

20252024

Operating Total Net cash generate Operating Total Net cash generate

revenue Net profits comprehensive from/used in revenue Net profits comprehensive from/used inincome operating activities income operating activities

TCL China Star

Optoelectronics 105237969 8008111 7952670 42795874 89668017 5544167 5602286 26121500

Technology Co.Ltd.TCL Zhonghuan

Renewable Energy 29050248 (9882625) (9768880) 1143747 28418504 (10806452) (10849165) 2839342

Technology Co. Ltd.Highly Information 34649080 159665 158795 437847 31465203 142774 142774 413623

Industry Co. Ltd.

140TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

VIII Interests in Other Entities (continued)

2 Transactions resulting in changes in ownership interests in a subsidiary without a loss of control

(1) Explanation of changes in the ownership interest in the subsidiary:

In 2025 with the approval of the Company’s shareholders’ meeting and the China Securities Regulatory

Commission (Z.J.X.K. [2025] No. 1326) the Company acquired a 21.5311% equity interest in Shenzhen

China Star Optoelectronics Bandaoti Display Technology Co. Ltd. held by Shenzhen Major Industrial

Development Phase I Fund Co. Ltd. through shares issuance and cash payment. The total consideration for

the transaction amounted to RMB 11562093000 (comprising RMB 7202682000 in cash and RMB

4359411000 in shares) and the share of the target company’s net assets attributable to the acquired equity

interest was RMB 10031972000. This transaction did not result in a loss of control. In accordance with the

Accounting Standards for Business Enterprises the difference of RMB 1530121000 between the

transaction consideration and the share of net assets acquired was offset against capital reserves (share

premium) in the consolidated financial statements with a corresponding decrease in non-controlling interests.

(2) Impact of the transaction on non-controlling interests and equity attributable to owners of the

parent company:

Name of subsidiary Shenzhen China Star OptoelectronicsBandaoti Display Technology Co. Ltd.Consideration paid in share issuance 4359411

Consideration paid in cash 7202682

Total consideration 11562093

Less: Share of the subsidiary’s net assets attributable to the

acquired equity interest 10031972

Deduction from capital reserve 1530121

141TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

VIII Interests in Other Entities (Continued)

3 Interests in joint ventures and associates

(1) Basic information about principal joint ventures and associates

Principal place Shareholding

Name of investee of business/place Nature of business Strategic to the Group’s percentage

of registration activities or not Direct Indirect

Associate

Bank of Shanghai Co. Ltd. Shanghai Financial Yes 5.76% -

Note: As of the date of issuance of this Report Bank of Shanghai Co. Ltd. has not announced

information on its 2025 report.

(2) The Company had no significant joint ventures in the Reporting Period.

142TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

IX Risks related to financial instruments

The purpose of the Company’s risk management is to achieve a right balance between the risk and the

benefit and maximally reduce the adverse impact of financial risks on the Company’s financial

performance. Based on such purpose the Company has established various risk management policies

to recognize and analyze possible risks to be encountered by the Company set an appropriate risk

acceptable level and design corresponding internal control procedures so as to control the Company’s

risk level. In addition the Company will regularly review these risk management policies and relevant

internal control systems in order to adapt to the market or handle various changes in the Company’s

operating activities. Meanwhile the Company’s internal audit department will also regularly or

randomly check whether the implementation of internal control system conforms to relevant risk

management policies. In fact the Company has applied proper diversified investment and business

portfolio to disperse various financial instrument risks and worked out corresponding risk management

policies to reduce the risk of concentrating on one single industry specific region or specific

counterpart.The main risks arising from the Company's financial instruments are credit risk liquidity risk and

market risk (mainly foreign exchange risk and interest rate risk).

(1) Credit risk

Credit risk refers to the risk of financial loss caused by any party of financial instruments to another

party due to the failure in fulfilling performance obligations. The Group controls the credit risk based

on the specific group classification and credit risk mainly results from bank deposits due from the

central bank notes receivable accounts receivable loans and advances to customers and other

receivables.The Group’s bank deposits and due from the central bank are mainly deposited in stated-owned banks

and other large and medium-sized listed banks. The Group considers no significant credit risk to exist

and no significant loss to be caused by the counterpart’s breach of contract.For notes receivable accounts receivable loans and advances to customers and other receivables the

Group has established relevant policies to control the credit risk exposure and will evaluate the

client’s credit qualification and determine the corresponding credit period based on the client’s

financial status the possibility of obtaining guarantees from the third party relevant credit records and

other factors (like the current market situation). In the meantime the Group will regularly monitor the

client's credit records. For any client with unfavorable credit records the Group will issue written

reminders shorten the credit period or cancel the credit period so as to keep the Group's overall credit

risk controllable.As of December 31 2025 no significant guarantee or other credit enhancements held due to the debtor

mortgage was found in the Group.

143TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 of December 31 2025 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 7649900 - - -

Borrowings from the Central

Bank 30000 - - -

Customer deposits and deposits

from other banks and financial 366602 - - -

institutions

Held-for-trading financial

liabilities 235717 - - -

Derivative financial liabilities 50435 - - -

Notes payable 6465600 - - -

Accounts payable 32251944 - - -

Other payables 17715638 - - -

Other current liabilities 1662144 - - -

Long-term borrowings 26457931 45197187 61302624 16277195

Bonds payable 3987695 191924 8363601 -

Lease liabilities 2720247 892870 614854 2923339

Long-term payables 1544624 309002 537565 452060

Total 101138477 46590983 70818644 19652594

144TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

IX Risks Related to Financial Instruments (Continued)

(3) Market risk

(a) Foreign exchange risk

The Group has carried out various economic activities around the world including manufacturing selling

investment financing etc. and corresponding interest rate fluctuation risks exist in the Group’s foreign currency

assets and liabilities and future foreign currency transactions.The Group always regards "Locking the Cost and Avoiding Possible Risks" as the foreign currency risk

management goal. Through the natural hedging of settlement currency matching with the foreign currency

liabilities signing simple derivative products closely related to the owner's operation and meeting corresponding

hedge accounting treatment requirements and applying other management methods the foreign currency risk

exposure can be controlled within a reasonable scope and the impact of interest rate fluctuations on the Group's

overall profit and loss will be reduced.As of December 31 2025 foreign-currency asset and liability items with significant exposure to exchange risk

were mainly denominated in US dollars. After management the total risk exposure of the US dollar-denominated

items had a net asset exposure of USD 588524000 equivalent to RMB 4136617000 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 atperiod-end

2025 December 31 2025

USD/RMB 7.1350 7.0288

Provided that other risk variables remained unchanged except for the exchange rate a 5%

depreciation/appreciation in RMB as a result of the changes in the exchange rate of RMB against USD would

cause an increase/decrease of RMB 206831000 in shareholders' equity and net profit respectively of the Group

on December 31 2025.The above-mentioned sensitivity analysis is made based on the assumption that the exchange rate changes on the

balance sheet date and the financial instruments held by the Group on the balance sheet date exposed to the

exchange risk are recalculated based on the changed exchange rate. The above analysis does not include

differences arising from the translation of foreign currency financial statements.(b) Interest risk

The Group's interest rate risk mainly results from interest-bearing bank borrowings adopting floating interest

rates and the Group determined the proportion of fixed interest rates and floating interest rates based on the

market environment and its risk tolerance. By December 31 2025 the Group's liabilities with floating interest

rates accounted for 84.67% of its total interest-bearing liabilities. And the Group will continuously monitor the

interest rates and make corresponding adjustments according to the specific market changes so as to avoid

interest rate risk.

(4) Offset of financial assets and financial liabilities

As at the end of the reporting period the amount offset between the financial assets and financial liabilities

recognized under executable master netting arrangements or similar agreements was RMB 7282687000.

145TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 December 31 2025

Financial assets

Item Level 1 Level 2 Level 3 Total

Held-for-trading financial assets (see

Note V. 2) 2510265 10496551 1466377 14473193

Derivative financial assets (see Note V.

3)-78957-78957

Receivables financing (see Note V. 6) - - 625789 625789

Investments in other equity instruments

(see Note V. 17) 18427 - 338029 356456

Other non-current financial assets (see

Note V. 18) 451710 - 2720949 3172659

Total assets continuously measured at

fair value 2980402 10575508 5151144 18707054

Financial liabilities

Item Level 1 Level 2 Level 3 Total

Held-for-trading financial liabilities

(see Note V. 33) - - 235717 235717

Derivative financial liabilities (see

Note V. 34) - 50435 - 50435

Others - - 207373 207373

Total liabilities continuously measured

at fair value - 50435 443090 493525

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.

146TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 and long-term payables due within one year long-term borrowings and bonds payable.

147TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

XI Related Parties and Related-Party Transactions

1 Actual controller and its acting-in-concert parties

Explanation of the Company’s non-existence 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 1266680807 shares in total

and becoming the largest shareholder of the Company.As per Article 216 of the Company Law a controlling shareholder refers to a shareholder who owns over 50% of

a limited liability company’s total capital or over 50% of a joint stock company’s total share capital; or despite

the ownership of less than 50% of a limited liability company’s total capital or less than 50% of a joint stock

company’s total number of shares who can still prevail in the resolution of a meeting of shareholders or a

general meeting of shareholders according to the voting rights corresponding to their interest in the limited

liability company’s total capital or the joint stock company’s total number of shares. According to the definition

above the Company has no controlling shareholder.

2 Related parties that do not control or are not controlled by the Company

Information about such related parties:

Company name Relationship with the Company

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

Zhonghuan Feilang (Tianjin) Technology Co. Ltd. Associate

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

LG Electronics (Huizhou) Co. Ltd. Associate

Aijiexu New Electronic Display Glass (Shenzhen) Co. Ltd. Associate

Shanghai Feilihua Shichuang Technology Co. Ltd. Associate

Zhonghuan Aineng (Beijing) Technology Co. Ltd. Associate

Inner Mongolia Xinhua Bandaoti Technology Co. Ltd. Associate

Hubei Changjiang Hezhi Equity Investment Fund Partnership (Limited Partnership) Associate

Wuhan Guochuangke Optoelectronic Equipment Co. Ltd. Associate

Ningbo Dongpeng Heli Equity Investment Partnership (Limited Partnership) Associate

China Innovative Capital Management Limited Associate

Shenzhen Qianhai Sailing International Supply Chain Management Co. Ltd. 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

148TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 Company

Jiangsu Jixin Bandaoti Silicon Material Research Institute Co. Ltd. and its subsidiaries Associate and its subsidiaries

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

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)

20252024

TCL Industries Holdings Co. Ltd. and its subsidiaries 23090794 21401268

Shenzhen Qianhai Sailing International Supply Chain Management Co. Ltd.and its subsidiaries 3059137 392145

Shenzhen Jucai Supply Chain Technology Co. Ltd. and its subsidiaries 16099 5429

Zhonghuan Feilang (Tianjin) Technology Co. Ltd. 10925 9659

TCL Microchip Technology (Guangdong) Co. Ltd. and its subsidiaries 9636 39194

Inner Mongolia Xinhuan Silicon Energy Technology Co. Ltd. 583 -

Joint ventures and subsidiaries of TCL Industries Holdings Co. Ltd. 188 -

Huizhou TCL Human Resources Service Co. Ltd. and its subsidiaries 144 12

Tianjin Qiyier Communication & Broadcasting Co. Ltd. and its subsidiaries 66 10

Inner Mongolia Huanye Material Co. Ltd. and its subsidiaries 2 -

Maxeon Solar Technologies Ltd. and its subsidiaries - 913689

Inner Mongolia Sheng’ou Electromechanical Engineering Co. Ltd. - 1997

LG Electronics (Huizhou) Co. Ltd. - 603

Purplevine Holdings Limited and its subsidiaries - 75

2618757422764081

149TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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)

20252024

Aijiexu New Electronic Display Glass (Shenzhen) Co. Ltd. 3439574 3289267

TCL Industries Holdings Co. Ltd. and its subsidiaries 2506791 2013318

Inner Mongolia Xinhuan Silicon Energy Technology Co. Ltd. 2283472 1205811

Shenzhen Jucai Supply Chain Technology Co. Ltd. and its

subsidiaries 1660886 1388622

Shenzhen Qianhai Sailing International Supply Chain

Management Co. Ltd. and its subsidiaries 970407 507219

TCL Microchip Technology (Guangdong) Co. Ltd. and its

subsidiaries 104644 68518

Inner Mongolia Xinhua Bandaoti Technology Co. Ltd. 8879 1085

Zhonghuan Feilang (Tianjin) Technology Co. Ltd. 1691 1433

Inner Mongolia Zhongjing Science and Technology Research

Institute Co. Ltd. and its subsidiaries 1410 117275

Thunderbird Innovation Technology (Shenzhen) Co. Ltd. and

its subsidiaries 654 -

Inner Mongolia Sheng’ou Electromechanical Engineering Co.Ltd. - 1456918

Inner Mongolia Huanye Material Co. Ltd. and its subsidiaries - 285603

Huaxia CPV (Inner Mongolia) Power Co. Ltd. - 116479

Purplevine Holdings Limited and its subsidiaries - 25117

1097840810476665

150TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

XI Related Parties and Related-Party Transactions (Continued)

3 Major related-party transactions (continued)

(3) Receiving funding (Note 3)

20252024

Shenzhen Qianhai Sailing International Supply Chain Management

Co. Ltd. and its subsidiaries 502001 126100

Huizhou TCL Human Resources Service Co. Ltd. and its subsidiaries 103057 79546

TCL Industries Holdings Co. Ltd. and its subsidiaries 10334 4807

TCL Microchip Technology (Guangdong) Co. Ltd. and its

subsidiaries 6848 5000

Wuxi TCL Venture Capital Partnership (Limited Partnership) and its

subsidiaries 5431 5570

Ningbo Dongpeng Weichuang Equity Investment Partnership (Limited

Partnership) and its subsidiaries 645 662

Yixing Jiangnan Tianyuan Venture Capital Company (Limited

Partnership) and its subsidiaries 577 608

Nanjing Zijin A Dynamic Investment Partnership (Limited

Partnership) and its subsidiaries 345 378

Ningbo Dongpeng Heli Equity Investment Partnership (Limited

Partnership) 33 33

Shenzhen Jucai Supply Chain Technology Co. Ltd. and its

subsidiaries - 90891

629271313595

(4) Rendering of funds (Note 3)

20252024

TCL Industries Holdings Co. Ltd. and its subsidiaries - 226

-226

151TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

XI Related Parties and Related-Party Transactions (Continued)

3 Major related-party transactions (continued)

(5) Leases

20252024

Rental income

TCL Industries Holdings Co. Ltd. and its subsidiaries 63985 62859

Aijiexu New Electronic Display Glass (Shenzhen)

Co. Ltd. 36355 53822

TCL Microchip Technology (Guangdong) Co. Ltd.and its subsidiaries 3765 4033

Zhonghuan Feilang (Tianjin) Technology Co. Ltd. 885 890

Shenzhen Jucai Supply Chain Technology Co. Ltd.and its subsidiaries 797 639

Huizhou TCL Human Resources Service Co. Ltd. and

its subsidiaries 69 198

Jiangsu Jixin Bandaoti Silicon Material Research

Institute Co. Ltd. and its subsidiaries 69 141

Shenzhen Tixiang Business Management Technology

Co. Ltd. and its subsidiaries 53 67

Inner Mongolia Huanye Material Co. Ltd. and its

subsidiaries 47 14519

Shenzhen Qianhai Sailing International Supply Chain

Management Co. Ltd. and its subsidiaries 44 14

Inner Mongolia Zhongjing Science and Technology

Research Institute Co. Ltd. and its subsidiaries - 40

106069137222

20252024

Rental expense

TCL Industries Holdings Co. Ltd. and its subsidiaries 67808 50862

Tianjin Huanyan Technology Co. Ltd. 1134 2952

TCL Microchip Technology (Guangdong) Co. Ltd.and its subsidiaries 66 689

Huaxia CPV (Inner Mongolia) Power Co. Ltd. - 2483

Shenzhen Jucai Supply Chain Technology Co. Ltd.and its subsidiaries - 737

Inner Mongolia Zhongjing Science and Technology

Research Institute Co. Ltd. and its subsidiaries - 114

6900857837

152TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

XI Related Parties and Related-Party Transactions (Continued)

3 Major related-party transactions (continued)

(6) Guarantee

The Company as a guarantor

Whether the

Guarantee Guarantee Guarantee Guarantee maturity guarantee hasamount commencement date date been

fulfilled or not

Aijiexu New Electronic

Display Glass (Shenzhen) 123725 April 28 2020 June 28 2030 No

Co. Ltd.Guangzhou Qihang

International Supply Chain 100000 November 10 2025 June 11 2026 No

Co. Ltd.Shenzhen Qianhai Sailing

International Supply Chain 437775 March 7 2025 June 11 2026 No

Management Co. Ltd.Inner Mongolia Xinhua

Bandaoti Technology Co. 364000 May 22 2023 May 22 2030 No

Ltd.Inner Mongolia Xinhuan

Silicon Energy Technology 1362348 June 15 2023 June 14 2029 No

Co. Ltd.

2387848

As of December 31 2025 there were no instances of the Company acting as the guaranteed party.

(7) Rendering or receipt of services

20252024

Rendering of services 309239 399077

Receipt of services 1981631 1943241

153TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

XI Related Parties and Related-Party Transactions (Continued)

3 Major related-party transactions (continued)

(8) Collection/Payment of interest (Note 3)

20252024

Interest received 4876 11962

Interest paid 31422 29112

(9) Remuneration of key management personnel (Note 4)

20252024

Remuneration of key management personnel 47255 62141

Note 1 Selling raw materials and finished goods to related parties

The Company sells raw materials spare parts auxiliary materials and finished goods to its joint ventures

and associates at market prices which are settled in the same way as non-related-party transactions. These

related-party transactions have no material impact on the Company’s net profits but play an important role

as to the Company’s continued operations.Note 2 Purchasing raw materials and finished goods from related parties

The Company purchases raw materials and finished goods from its joint ventures and associates at prices

similar to those paid to third-party suppliers which are settled in the same way as non-related-party

transactions. These related-party transactions have no material impact on the Company’s net profits but play

an important role as to the Company’s continued operations.Note 3 Providing funding for or receiving funding from related parties and corresponding interest received or paid

The Company set up a settlement center in 1997 and TCL Technology Group Finance Co. Ltd. in 2006

(together the "Financial Settlement Center"). The Financial Settlement Center is responsible for the

financial affairs of the Company including capital operation and allocation. The Center settles accounts

with the Company’s subsidiaries joint ventures and associates and pays the interest. It also allocates the

money deposited by the subsidiaries joint ventures and associates in it to these enterprises and charges

interest. The interest income and expense between the Company and the Center are calculated according to

the interest rates declared by the People’s Bank of China. The funding amount provided refers to the

outstanding borrowings due from the Center to related parties while the funding amount received means the

balances of related parties’ deposits in the Center.

154TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.Note 5 Maxeon Solar Technologies Ltd. was transformed from an associate to a subsidiary in August 2024 and the

transactions between Maxeon Solar Technologies Ltd. and its subsidiaries and the Group before such

transaction date are related party transactions.Note 6 The company disposed of its equity in Tianjin Qiyier Communication & Broadcasting Co. Ltd. in July

2024 and the transactions between Tianjin Qiyier Communication & Broadcasting Co. Ltd. and its

subsidiaries and the Group before such transaction date are related party transactions.Note 7 The company disposed of its equity in Inner Mongolia Sheng’ou Electromechanical Engineering Co. Ltd. in

December 2024 and the transactions between Inner Mongolia Sheng’ou Electromechanical Engineering

Co. Ltd. and the Group before such transaction date are related-party transactions.Note 8 Sunpower Energy Solutions France SAS was reclassified from a subsidiary to a related party in April 2025.Transactions between Sunpower Energy Solutions France SAS and the Group subsequent to this date are

accounted for as related party transactions.Note 9 Sunpower Systems Belgium SPRL was reclassified from a subsidiary to a related party in April 2025.Transactions between Sunpower Systems Belgium SPRL and the Group subsequent to this date are

accounted for as related party transactions.

4 Receivables and payables of related parties

(1) Accounts receivable

December 31 2025 December 31 2024

TCL Industries Holdings Co. Ltd. and its subsidiaries 5802990 5317484

Shenzhen Qianhai Sailing International Supply Chain Management Co.Ltd. and its subsidiaries 241577 164421

Tianjin Zhonghuan Haihe Intelligent Manufacturing Fund Partnership

(Limited Partnership) 16855 2408

Shenzhen Jucai Supply Chain Technology Co. Ltd. and its subsidiaries 12051 96

TCL Microchip Technology (Guangdong) Co. Ltd. and its subsidiaries 2174 7829

Zhonghuan Feilang (Tianjin) Technology Co. Ltd. 1698 2448

Inner Mongolia Zhongjing Science and Technology Research Institute

Co. Ltd. and its subsidiaries 80 102

Inner Mongolia Huanye Material Co. Ltd. and its subsidiaries 66 2684

Joint ventures and subsidiaries of TCL Industries Holdings Co. Ltd. 31 -

Thunderbird Innovation Technology (Shenzhen) Co. Ltd. and its

subsidiaries 2 -

Inner Mongolia Xinhuan Silicon Energy Technology Co. Ltd. - 98

Jiangsu Jixin Bandaoti Silicon Material Research Institute Co. Ltd. and

its subsidiaries - 20

60775245497590

155TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

XI Related Parties and Related-Party Transactions (Continued)

4 Receivables and payables of related parties (continued)

(2) Receivables financing

December 31 2025 December 31 2024

Shenzhen Qianhai Sailing International Supply Chain

Management Co. Ltd. and its subsidiaries 315 -

TCL Microchip Technology (Guangdong) Co. Ltd. and

its subsidiaries - 151

315151

(3) Accounts payable

December 31 2025 December 31 2024

TCL Industries Holdings Co. Ltd. and its subsidiaries 1205551 1708430

Aijiexu New Electronic Display Glass (Shenzhen) Co. Ltd. 905023 956561

Shenzhen Jucai Supply Chain Technology Co. Ltd. and its

subsidiaries 586882 287678

Shenzhen Qianhai Sailing International Supply Chain

Management Co. Ltd. and its subsidiaries 126650 215975

TCL Microchip Technology (Guangdong) Co. Ltd. and its

subsidiaries 61424 27786

Inner Mongolia Zhongjing Science and Technology Research

Institute Co. Ltd. and its subsidiaries 19091 46986

Inner Mongolia Huanye Material Co. Ltd. and its

subsidiaries 6907 -

Joint ventures and subsidiaries of TCL Industries Holdings

Co. Ltd. 775 2331

Zhonghuan Feilang (Tianjin) Technology Co. Ltd. 207 87

Huizhou TCL Human Resources Service Co. Ltd. and its

subsidiaries 74 57

Shanghai Feilihua Shichuang Technology Co. Ltd. 9 9

Inner Mongolia Sheng’ou Electromechanical Engineering

Co. Ltd. - 11265

29125933257165

156TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

XI Related Parties and Related-Party Transactions (Continued)

Related Parties and Related-Party Transactions (Continued)

4 Receivables and payables of related parties (continued)

(4) Other receivables

December 31 2025 December 31 2024

TCL Industries Holdings Co. Ltd. and its subsidiaries 151182 143339

TCL Microchip Technology (Guangdong) Co. Ltd. and

its subsidiaries 10000 2584

Shenzhen Jucai Supply Chain Technology Co. Ltd. and

its subsidiaries 7196 4233

Inner Mongolia Xinhuan Silicon Energy Technology

Co. Ltd. 6806 -

Inner Mongolia Huanye Material Co. Ltd. and its

subsidiaries 1419 3265

Joint ventures and subsidiaries of TCL Industries

Holdings Co. Ltd. 25 -

Huizhou TCL Human Resources Service Co. Ltd. and

its subsidiaries 23 104

Shenzhen Qianhai Sailing International Supply Chain

Management Co. Ltd. and its subsidiaries 14 7051

Tianjin Huanyan Technology Co. Ltd. 10 -

Zhonghuan Aineng (Beijing) Technology Co. Ltd. 4 3053

Aijiexu New Electronic Display Glass (Shenzhen) Co.Ltd. - 3382

Inner Mongolia Zhongjing Science and Technology

Research Institute Co. Ltd. and its subsidiaries - 916

Thunderbird Innovation Technology (Shenzhen) Co.Ltd. and its subsidiaries - 900

Jiangsu Jixin Bandaoti Silicon Material Research

Institute Co. Ltd. and its subsidiaries - 38

176679168865

157TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

XI Related Parties and Related-Party Transactions (Continued)

4 Receivables and payables of related parties (continued)

(5) Other payables

December 31 2025 December 31 2024

Tianjin Zhonghuan Haihe Intelligent Manufacturing Fund

Partnership (Limited Partnership) 428100 428100

TCL Industries Holdings Co. Ltd. and its subsidiaries 355955 249033

Shenzhen Qianhai Sailing International Supply Chain

Management Co. Ltd. and its subsidiaries 208277 102196

Shenzhen Jucai Supply Chain Technology Co. Ltd. and its

subsidiaries 119698 55442

Huizhou TCL Human Resources Service Co. Ltd. and its

subsidiaries 105148 84285

Aijiexu New Electronic Display Glass (Shenzhen) Co. Ltd. 9317 9317

Wuhan Guochuangke Optoelectronic Equipment Co. Ltd. 5450 1714

Wuxi TCL Venture Capital Partnership (Limited Partnership)

and its subsidiaries 5431 5570

TCL Microchip Technology (Guangdong) Co. Ltd. and its

subsidiaries 3479 2938

Joint ventures and subsidiaries of TCL Industries Holdings Co.Ltd. 1000 502

Ningbo Dongpeng Weichuang Equity Investment Partnership

(Limited Partnership) and its subsidiaries 645 662

Thunderbird Innovation Technology (Shenzhen) Co. Ltd. and its

subsidiaries 584 359

Yixing Jiangnan Tianyuan Venture Capital Company (Limited

Partnership) and its subsidiaries 577 608

Purplevine Holdings Limited and its subsidiaries 500 100

Nanjing Zijin A Dynamic Investment Partnership (Limited

Partnership) and its subsidiaries 345 378

Inner Mongolia Huanye Material Co. Ltd. and its subsidiaries 187 60

Inner Mongolia Zhongjing Science and Technology Research

Institute Co. Ltd. and its subsidiaries 80 60

China Innovative Capital Management Limited 43 57

Ningbo Dongpeng Heli Equity Investment Partnership (Limited

Partnership) 33 66

Tianjin Huanyan Technology Co. Ltd. 9 1785

Shenzhen Tixiang Business Management Technology Co. Ltd.and its subsidiaries 5 16

Hubei Changjiang Hezhi Equity Investment Fund Partnership

(Limited Partnership) - 345430

Jiangsu Jixin Bandaoti Silicon Material Research Institute Co.Ltd. and its subsidiaries - 13

Inner Mongolia Sheng’ou Electromechanical Engineering Co.Ltd. - 12

12448631288703

158TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

XI Related Parties and Related-Party Transactions (Continued)

4 Receivables and payables of related parties (continued)

(6) Non-current liabilities due within one year

December 31 2025 December 31 2024

TCL Industries Holdings Co. Ltd. and its subsidiaries 20699 21695

2069921695

(7) Prepayments

December 31 2025 December 31 2024

Shenzhen Qianhai Sailing International Supply Chain

Management Co. Ltd. and its subsidiaries 30214 1342

TCL Industries Holdings Co. Ltd. and its subsidiaries 4769 23535

Shenzhen Jucai Supply Chain Technology Co. Ltd. and

its subsidiaries 4735 2715

Tianjin Huanyan Technology Co. Ltd. 2588 4857

Huizhou TCL Human Resources Service Co. Ltd. and its

subsidiaries 2020 136

Inner Mongolia Xinhuan Silicon Energy Technology Co.Ltd. 717 1766

Inner Mongolia Huanye Material Co. Ltd. and its

subsidiaries 64 74626

45107108977

159TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

XI Related Parties and Related-Party Transactions (Continued)

4 Receivables and payables of related parties (continued)

(8) Advances from customers

December 31 2025 December 31 2024

TCL Industries Holdings Co. Ltd. and its subsidiaries 404 312

Shenzhen Jucai Supply Chain Technology Co. Ltd. and its

subsidiaries - 110

404422

(9) Contract liabilities

December 31 2025 December 31 2024

TCL Industries Holdings Co. Ltd. and its subsidiaries 53277 28727

Shenzhen Qianhai Sailing International Supply Chain

Management Co. Ltd. and its subsidiaries 22392 210

Joint ventures and subsidiaries of TCL Industries Holdings

Co. Ltd. 97 -

7576628937

(10) Lease liabilities

December 31 2025 December 31 2024

TCL Industries Holdings Co. Ltd. and its subsidiaries 31917 33441

3191733441

160TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

XI Related Parties and Related-Party Transactions (Continued)

4 Receivables and payables of related parties (continued)

(11) Deposits from related parties (note)

December 31 2025 December 31 2024

Shenzhen Qianhai Sailing International Supply Chain

Management Co. Ltd. and its subsidiaries 341094 73428

TCL Industries Holdings Co. Ltd. and its subsidiaries 10334 4808

TCL Microchip Technology (Guangdong) Co. Ltd. and

its subsidiaries 6848 5000

Huizhou TCL Human Resources Service Co. Ltd. and

its subsidiaries 4985 2385

Shenzhen Jucai Supply Chain Technology Co. Ltd. and

its subsidiaries - 90941

363261176562

Note: These deposits are made by related parties in the Company’s subsidiary

TCL Technology Group Finance Co. Ltd.

(12) Other non-current assets

December 31 2025 December 31 2024

TCL Industries Holdings Co. Ltd. and its subsidiaries 114830 21823

Purplevine Holdings Limited and its subsidiaries 35333 71711

15016393534

161TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 RMB 800000000

Total amount of each equity instrument exercised by the Company in the current

period 42962000 shares

Total amount of the Company’s equity instruments that expired in the current

period 11039000 shares

Range of exercise prices of the Company’s stock options outstanding and

remaining contract term at the end of the period -

Range of exercise prices of the Company’s other equity instruments outstanding

and remaining contract term at the end of the period -

(1) Employee Stock Ownership Plan (Phase II) 2021-2023

According to the Proposal on the Management Measures of the Company’s Employee Stock Ownership Plan

(Phase II) 2021--2023 deliberated and adopted at the Second Extraordinary General Meeting 2022 and the

Proposal on the Company’s Employee Stock Ownership Plan (Phase II) 2021--2023 (Draft) adopted by the

resolution of the 19th Meeting of the Seventh-term Board of Directors and the 14th Meeting of the Seventh-term

Board of Supervisors 32.6211 million shares were granted to no more than 3600 awardees at the price of RMB

4.35 on July 22 2022.

On May 31 2023 the Management Committee of the Phase II Shareholding Plan approved the vesting of a total

of approximately 30650000 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 14330000 shares were released from lock-up restrictions in 2024 and a

further 15750000 shares were released in 2025.

(2) Employee Stock Ownership Plan (Phase III) 2021-2023

According to the Proposal on the Management Measures of the Company’s Employee Stock Ownership Plan

(Phase III) 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 64.99 million 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.

(3) Employee Stock Ownership Plan 2024

According to the Second Meeting of the Eighth-term Board of Directors the Second Meeting of the Eighth-term

Board of Supervisors and the First Extraordinary General Meeting 2024 the Proposal on the Employee Stock

Ownership Plan 2024 of TCL Technology Group Corporation (Draft) was deliberated on and 117.99 million

shares were granted to no more than 3600 awardees.

(4) 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 800 million and shall be granted to no more than 3600 eligible participants.

162TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 instruments

equity instruments on the date of grant on the grant date based on the fair value of the 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 options andrevise 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 399140000

reserve

Total expense recognized for equity-settled

share-based payments in the current period RMB 422933000

(b)The Company has no cash-settled share-based payments.(c)The Company has no share-based payment modification or termination.

2 Share-based payments by the controlling subsidiary TZE

（1）Overview of share-based payments

(a) Employee stock ownership plan

On August 30 2022 the Company held its second extraordinary general meeting of 2022 where the Proposal on

the Employee Stock Ownership Plan (Draft) and Its Summary for 2022 (hereinafter referred to as the "2022

Employee Stock Ownership Plan") were deliberated and adopted. The Company held the 22nd Meeting of the

6th-term Board of Directors on January 11 2022 where it deliberated on and adopted the Proposal on

Repurchasing the Company's Shares. The Company repurchased a total of 9515263 shares through the special

securities account for repurchasing shares by means of centralized bidding with an average transaction price of

RMB 41.09. 9492797 of these shares were used for the 2022 Employee Stock Ownership Plan. In addition the

Company held the 13th Meeting of the 6th-term Board of Directors on June 20 2021 where it deliberated on

and adopted the Proposal on the Plan for Repurchasing the Company's Shares. The remaining unused 161615

repurchased shares in 2021 were also used for the 2022 Employee Stock Ownership Plan. In summary a total of

9654412 shares were used for the Employee Stock Ownership Plan. On June 30 2023 the 2022 Employee

Stock Ownership Plan Management Committee based on the achievement of the Company's performance

assessments indicators and the results of individual performance assessment determined that the stock quota

would be granted on July 1 2023 and calculated the corresponding target stock quota of the holders to grant

them to the relevant holders by means of internal registration and confirmation. The lock-up period of the 2022

Employee Stock Ownership Plan expired on September 7 2023. As of the end of the Reporting Period the

equity of the relevant stock quota of the second batch of the 2022 Employee Stock Ownership Plan was

transferred to the relevant holders on a non-trading basis.

163TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

XII Share-based Payments (Continued)

2 Share-based payments by the controlling subsidiary TZE (Continued)

（2） Equity-settled share-based payments

Method of determining the fair value of equity instruments on the Share options: The Black-Scholes option pricing model is

date of grant used to measure the fair value of the Company’s share

options.Key parameters of the fair value of equity instruments on the grant Employee stock ownership plan: The shares granted were all

date repurchased from the secondary market through the

Company’s designated securities account. The fair value of

the shares granted under the employee stock ownership plan

is determined based on the closing market price of the

outstanding shares on the grant date less the grant price.Reasons for significant differences between current and previous

estimates None

Accumulated amount of equity-settled share-based payment included

in capital reserve RMB 729789000

Total expense recognized for equity-settled share-based payments in

the current period RMB 33150000

（3） TZE has no cash-settled share-based payments.

（4） Payment of TZE for shares in current period

For the year ended December 31 2025 the cost and expenses recognized under the 2022 Employee Stock Ownership Plan amounted to

RMB 33150000 (2024: RMB 195804000).

3 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 691000 shares

Total amount of each equity instrument vested by the Company in the current period 1968000 shares

Total amount of the Company’s equity instruments that expired in the current period 26000 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 -

(b) Equity-settled share-based payments

Method of determining the fair value of equity instruments on the In accordance with the relevant provisions of Accounting

date of grant 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 instruments on the grant Historical volatility risk-free interest rate and dividend

date yield

Basis for determining the number of exercisable equity instruments Estimated based on the performance conditions for 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 reserve RMB 2605000

Total expense recognized for equity-settled share-based payments in

the current period RMB 987000

164TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

XIII Commitments and Contingencies

1. Significant commitments

Capital commitments

December 31 2025

Contracted but not provisioned Note 1 16933571

Approved by the Board but not contracted Note 2 2958791

19892362

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 at December 31 2025 apart from the disclosures above there were no other major commitments that are

required to be disclosed.

2 Contingencies

Significant contingent matters existing at the balance sheet date:

Contingent liabilities arising from guarantees provided to other entities and their financial impact

As at December 31 2025 the guarantee provided by the Company for the related party’s bank loans

commercial drafts letters of credit etc. was RMB 2387848000 which is listed in details as below:

Obligor Actual guarantee Type of Actual occurrence Remaining term of Fulfilledamount guarantee date guarantee or not

Aijiexu New Electronic Display Glass Joint liability

(Shenzhen) Co. Ltd. 123725 guarantee April 28 2020 2.7-4.5 years No

Shenzhen Qianhai Sailing International Joint liability

Supply Chain Management Co. Ltd. 437775 guarantee March 7 2025 3 days-162 days No

Guangzhou Qihang International Supply 100000 Joint liabilityChain Co. Ltd. guarantee November 10 2025 130 days-162 days No

Inner Mongolia Xinhua Bandaoti 364000 Joint liabilityTechnology Co. Ltd. guarantee May 22 2023 4.4 years No

Inner Mongolia Xinhuan Silicon Energy

Technology Co. Ltd. 1362348

Joint liability

guarantee June 15 2023 3.5 years No

2387848

As at December 31 2025 the amount of credit granted by the Group for the note discounting note acceptance

and non-financing guarantees of related parties was RMB 209516000.

165TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

XIV Events after the Balance Sheet Date

1 In January 2026 the Company’s controlled subsidiary TCL China Star Optoelectronics Technology Co.

Ltd. acquired a 10.7656% equity interest in Shenzhen China Star Optoelectronics Bandaoti Display

Technology Co. Ltd. from Shenzhen Major Industrial Development Phase I Fund Co. Ltd. for RMB 6045

million in cash. Following the completion of this transaction the Company’s total equity interest in

Shenzhen China Star Optoelectronics Bandaoti increased from 84.2105% to 94.9761%.

2 On February 5 2026 TCL Technology completed the issuance of the first tranche of 2026 Technology

Innovation Bonds which began accruing interest from February 5 2026. The issuance size was RMB 1000

million with a term of 3+N years and an interest rate of 2.35%.

3 In October 2025 the Company’s controlled subsidiary Zhonghuan Advanced entered into an equity

repurchase agreement with the Administrative Committee of Yixing Economic and Technological

Development Zone and Yixing Entrepreneurship Park Technology Development Co. Ltd.Under the agreement Zhonghuan Advanced would repurchase 88.9898% of the equity interest in Yixing

Zhonghuan Advanced Engineering Management Co. Ltd. held by Yixing Entrepreneurship Park

Technology Development Co. Ltd. for a consideration of RMB 1453493000.On December 9 2025 Zhonghuan Advanced paid a delisting deposit of RMB 145349000 to Wuxi

Property Exchange Co. Ltd. On January 7 2026 Zhonghuan Advanced paid the remaining RMB

1308144000 through Wuxi Property Exchange with the December 2025 deposit applied toward the total

consideration resulting in a total payment of RMB 1453493000. On January 8 2026 Yixing Zhonghuan

Advanced Engineering Management Co. Ltd. completed the industrial and commercial registration changes

and was included into the Company’s scope of consolidation.

4 On January 24 2026 the Company’s controlled subsidiary Maxeon Solar Technologies Ltd. ("Maxeon")

through its wholly-owned subsidiary SUN POWER TECHNOLOGY LTD. ("SPT") proposed to sell 100%

equity interest of its wholly-owned Malaysian subsidiary SunPower Malaysia Manufacturing Sdn. Bhd.("SPMY" or the "Target") to MFS Technology (S) Pte Ltd ("MFSS") a wholly-owned subsidiary of Victory

Giant Technology (Huizhou) Co. Ltd. (listed on the Shenzhen Stock Exchange stock code 300476) for a

total consideration not exceeding USD 51 million. The final transaction price will be determined in

accordance with the transaction documents. On February 13 2026 Maxeon’s subsidiary SPT completed all

delivery procedures for the sale of 100% equity interest of SPMY to the buyer MFSS. SPMY is no longer

included in the consolidated financial statements of the Company and Maxeon.

5 In February 2026 the Company's subsidiary Maxeon Solar Technologies Ltd. through its wholly-owned

subsidiary Maxeon Solar Pte. Ltd. ("MSPL") signed a Patent License Agreement ("License Agreement")

with Shanghai Aiko Solar Energy Co. Ltd. ("Aiko"). Under the agreement MSPL will grant Aiko a license

to use patents related to "back-contact" solar cells and modules worldwide (excluding the United States) for

a term of five years from the signing date with a total license fee of RMB 1650000000 payable in

installments over five years in accordance with the agreement.

6 According to the 2025 Profit Distribution Proposal deliberated on and adopted by the Board of Directors of

the Company it is proposed to distribute a cash dividend of RMB 0.90 (including tax) per 10 shares to all

shareholders based on the total share capital of 20800862447 shares that can participate in profit

distribution on March 23 2026 (if the Company repurchased treasury shares during equity distribution such

shares would not be eligible for the profit distribution) with no bonus shares issued by converting capital

reserves into share capital resulting in a total profit distribution of RMB 1872077000.

166TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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.

New energy photovoltaic and other silicon materials business: mainly includes

(2) the 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.

167TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

XV Other Important Matters (Continued)

(I) Segment reporting (continued)

2 Financial information of reporting segments

For the 12 months ending on December 31 2025

Other

New energy

businesses

Display photovoltaics and Distribution

and internally Total

business other silicon business

offset

materials business

accounts

Operating revenue 120720415 29050248 34649080 (356352) 184063391

Net profits 8712559 (9882625) 159665 1224248 213847

Total assets 208657120 117997173 8168725 37915296 372738314

Total liabilities 119116678 78738124 6457019 35083514 239395335

Depreciation and

amortization 24129008 8887939 50518 205348 33272813

expenses

Capital expenditure 9918779 5378958 2337 978333 16278407

For the 12 months ending on December 31 2024

Other

New energy

businesses

Display photovoltaics and Distribution

and internally Total

business other silicon business

offset

materials business

accounts

Operating revenue 104254497 28418504 31465203 684629 164822833

Net profits 6227792 (10806452) 142774 279744 (4156142)

Total assets 220608687 125597525 7129973 24915731 378251916

Total liabilities 142874494 79127416 5561777 17984485 245548172

Depreciation and

amortization 22256794 8048406 59272 217421 30581893

expenses

Capital expenditure 15767244 6951852 5677 967550 23692323

168TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

XVI Notes to the key items presented in the financial statements of the Company

1 Accounts receivable

December 31 2025 December 31 2024

Amount Ratio Bad-debt Accrual Bad-debt AccrualAllowance Ratio Amount Ratio Allowance Ratio

Within 1

year 207984 99.42% 6 0.00% 185375 100% 136 0.07%

1 to 2 years 1218 0.58% - - - - - -

2 Other receivables

December 31 2025 December 31 2024

Other receivables 9613847 9910856

96138479910856

(a) Nature of other receivables is analyzed as follows:

December 31 2025 December 31 2024

Equity transfer receivables 610 610

Security and deposits 2474 3110

Others 9610763 9907136

96138479910856

(b) Allowance for doubtful other receivables is analyzed as follows:

12-month ECL Lifetime ECL (credit Lifetime ECL (creditnot impaired) impaired) Total

December 31 2024 1503 - 32767 34270

--Transfer into Stage 3 - - - -

Accrued in the period - - 5918 5918

Reversal of current

period (32) - - (32)

Write-off of current

period (9) - - (9)

December 31 2025 1462 - 38685 40147

169TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

XVI Notes to Financial Statements of the Parent Company (Continued)

2 Other receivables (continued)

December 31 2025 December 31 2024

Amount Ratio Amount Ratio

Within 1

year 7371233 76.35% 8311481 83.57%

1 to 2

years 1491285 15.45% 824092 8.29%

2 to 3

years 665173 6.89% 461602 4.64%

Over 3

years 126303 1.31% 347951 3.50%

9653994100%9945126100%

The outstanding other receivables were mostly current accounts with related parties.The top five other receivables of the Company amounted to approximately RMB 8792957000 (December

31 2024: RMB 9779966000) accounting for 91.08% of the total other receivables of the Company

(December 31 2024: 98.34%).

3 Long-term equity investments

December 31 2025 December 31 2024

Impairment Carrying Gross Impairment Carrying

Gross amount allowance amount amount allowance amount

Associates and joint

ventures (1) 17029558 - 17029558 17281616 - 17281616

Subsidiaries (2) 78289037 - 78289037 63780785 - 63780785

95318595-9531859581062401-81062401

As of December 31 2025 there are no major restrictions on the realization of investment and the remittance

of return on long-term equity investments.

170TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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

Increase/decrease Investment gains Other

December 31 2024 in investment in and losses comprehensive Other equity

Declared cash Other

recognized by income changes dividends or increases and December 31 2025current period equity method adjustment profits decreases

Joint venture 283595 27836 (76234) - 1231 (5000) 2 231430

Associate

Bank of Shanghai Co. Ltd. 14740146 - 1346306 (271340) (994457) (425304) - 14395351

Others 2257875 (87319) 416938 (33) (51277) (153753) 20346 2402777

Total of associates 16998021 (87319) 1763244 (271373) (1045734) (579057) 20346 16798128

Total 17281616 (59483) 1687010 (271373) (1044503) (584057) 20348 17029558

171TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

XVI Notes to Financial Statements of the Parent Company (Continued)

3 Long-term equity investments (continued)

(2) Subsidiaries

December Increase in current Decrease December

31 2024 period in currentperiod 31 2025

TCL China Star Optoelectronics Technology Co. Ltd. 34317653 1369066 - 35686719

TCL Technology Group Finance Co. Ltd. 1256003 - - 1256003

TCL Technology Group (Tianjin) Co. Ltd. 16200000 - - 16200000

TCL Zhonghuan Renewable Energy Technology Co.Ltd. 1929733 - - 1929733

TCL Culture Media (Shenzhen) Co. Ltd. 78000 - - 78000

Shenzhen Dongxi Jiashang Entrepreneurship

Investment Co. Ltd. 200000 - - 200000

Guangdong TCL Juxiang Technology Co. Ltd. 110000 - - 110000

Highly Information Industry Co. Ltd. 107296 - - 107296

TCL Communication Equipment (Huizhou) Co. Ltd. 79500 - - 79500

TCL Medical Radiological Technology (Beijing) Co.Ltd. 58497 - - 58497

Shenzhen TCL Strategic Equity Investment Fund

Partnership (Limited Partnership) 55664 - (184) 55480

TCL Industrial Technology Research Institute Ltd.

(Europe) 20000 - - 20000

Wuhan TCL Industrial Technology Research Institute

Ltd. 20000 - - 20000

Shenzhen TCL High-Tech Development Co. Ltd. 20000 - - 20000

Huizhou Hongsheng Science and Technology

Development Co. Ltd. 1000 - - 1000

Tianjin Silica Material Technology Co. Ltd. 2800000 - - 2800000

Xiamen TCL Technology Industrial Investment Co.Ltd. 633897 46800 - 680697

TCL Internet Technology (Shenzhen) Co. Ltd. 15000 26349 - 41349

Ningbo TCL Equity Investment Ltd. 300000 - - 300000

TCL Technology Investments Limited 3348778 116784 - 3465562

Huizhou Dongshen Jia’an Equity Investment

Partnership (Limited Partnership) 221000 627000 - 848000

TCL Financial Technology (Shenzhen) Co. Ltd. 15036 - - 15036

Zhonghuan Advanced Bandaoti Technology Co. Ltd. 1790312 - - 1790312

Shenzhen China Star Optoelectronics Bandaoti Display

Technology Co. Ltd. - 11562093 - 11562093

Chongqing Trust · Yuanyu Hengxin Collective Fund

Trust Plan - 500000 - 500000

Equity incentives of subsidiaries 203416 260344 - 463760

6378078514508436(184)78289037

For the registered capital of subsidiaries and the Company’s equity interests in the subsidiaries see

Note VIII.

172TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

XVI Notes to Financial Statements of the Parent Company (Continued)

4 Other non-current financial assets

December 31 2025 December 31 2024

Equity investments 398546 423060

Debt investments - 300483

398546723543

5 Operating revenue and operating cost

20252024

Operating Operating Operating

Operating cost

revenue cost revenue

Core business 14677 - 432501 417726

Non-core business 557030 238728 513860 190548

571707238728946361608274

6 Return on investment

20252024

Share of return on investment in joint ventures and associates 1687010 1237987

Net income from disposal of long-term investments 1291 145253

Return on holding of held-for-trading financial assets 195884 353128

Return on disposal of held-for-trading financial assets - 45551

Gain on disposal of derivative financial assets/liabilities (26) (15775)

Dividends from subsidiaries 327894 252104

22120532018248

173TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(RMB’000)

XVII Supplementary Information

1. Details of non-recurring gains and losses for the period

20252024

Gain or loss on disposal of non-current assets (inclusive of

(62541)143159

impairment allowance write-offs)

Public grants charged to current profits and losses (exclusive of

public grants closely related to the Company’s normal business

operations in compliance with national policies enjoyed according 2226112 2614019

to determined criteria and with a continuous impact on the

Company’s profits and losses)

The profits or losses generated from changes in fair value arising

from financial assets and financial liabilities held by non-financial

enterprises and the profits or losses from the disposal of such

175044833

financial assets and financial liabilities except for the effective

hedging business related to the company’s normal business

operations

Reversal of provision for impairment of receivables that have been

2783162762

individually tested for impairment

Non-operating income and expenses other than the above 591664 857485

Income tax effects (357990) (507097)

Non-controlling interests effects (822676) (1909407)

Non-recurring gains and losses attributable to ordinary shareholders

16199041265754

of the parent company

According to the relevant provisions of the Interpretative Announcement No. 1 on Information Disclosure by

Companies Issuing Securities to the Public - Non-recurring Profits and Losses (Revised in 2023)(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.

174TCL Technology Group Corporation

Notes to the Financial Statements for the Year 2025

(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 Earnings per share (RMB: yuan)

attributable to

Weighted

the parent

average

Item company

return on Basic earnings Diluted earnings

during the

equity per share per share

Reporting

Period

Net profits attributable to ordinary

shareholders of the Company 4516782 7.98% 0.2333 0.2301

Net profits attributable to ordinary

shareholders of the Company

before non-recurring gains and

losses 2896878 5.12% 0.1496 0.1476

Company Name: TCL Technology Group Corporation

Date: March 26 2026

175

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