Full Text of the 2025 Interim Report of TCL Technology Group Corporation
TCL科技集团股份有限公司
TCL Technology Group Corporation
INTERIM REPORT 2025
August 2025
1Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Part I Important Notes Table of Contents and Definitions
The Board of Directors (or the “Board”) the Supervisory Committee as
well as the directors supervisors and senior management of TCL Technology
Group Corporation (hereinafter referred to as the “Company”) hereby
guarantee the factuality accuracy and completeness of the contents of this
Report and its summary and shall be jointly and severally liable for any
misrepresentations misleading statements or material omissions therein.Mr. Li Dongsheng the person-in-charge of the Company Ms. Li Jian the
person-in-charge of financial affairs (Chief Financial Officer) and Ms. Jing
Chunmei the person-in-charge of the financial department hereby guarantee
that the financial statements carried in this Interim Report are factual accurate
and complete.All the Company’s directors attended the Board meeting for the review of
this Interim Report and its summary.The future plans development strategies or other forward-looking
statements mentioned in this Report and its summary shall NOT be considered
as promises of the Company to investors. Therefore investors are kindly
reminded to pay attention to possible investment risks.The Company has no interim dividend plan either in the form of cash or
stock nor for the conversion of capital reserve into share capital.This Report and its summary have been prepared in both Chinese and
English. Should there be any discrepancies or misunderstandings between the
two versions the Chinese version shall prevail.
2Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Table of Contents
Part I Important Notes Table of Contents and Defin... 2
Part II Corporate Information and Key Financial In....6
Part III Management Discussion and Analysis ..........9
Part IV Corporate Governance Environment and Socia.. 30
Part V Significant Events .......................... 36
Part VI Changes in Shares and Information about Sh.. 46
Part VII Bonds ..................................... 54
Part VIII Financial Report ......................... 59
Part IX Other Data Submitted ...................... 222
3Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Documents Available for Reference
(I) The financial statements signed and stamped by the person-in-charge of the
Company the Chief Financial Officer and person-in-charge of the financial
department.(II) The originals of all company documents and announcements that were
disclosed to the public during the Reporting Period.
4Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Definitions
Term Refers to Definition
The “Company” the “Group” “TCL”
“TCL TECH.” or “we” Refers to TCL Technology Group Corporation
The “Reporting Period” “currentperiod” Refers to The period from January 1 2025 to June 30 2025.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
TPC Refers to Tianjin Printronics Circuit Corp. a majority-owned subsidiary of theCompany listed on the Shenzhen Stock Exchange (stock code: 002134.SZ)
Highly Refers to Highly Information Industry Co. Ltd. a holding subsidiary of the Companylisted 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
t4 Refers to The generation 6 (or G6) flexible LTPS-AMOLED panel production line atWuhan CSOT
t5 Refers to The generation 6 (or G6) new display production line at Wuhan CSOT
t6 Refers to The generation 11 (or G11) new TFT-LCD display production line atShenzhen CSOT
t7 Refers to The generation 11 (or G11) new ultra high definition display production line atShenzhen CSOT
t9 Refers to The generation 8.6 (or G8.6) new oxide display production line at GuangzhouCSOT
t10 Refers to The generation 8.5 (or G8.5) TFT-LCD production line at Suzhou CSOT
t11 Refers to The generation 8.5 (or G8.5) TFT-LCD production line at Guangzhou CSOT
t12 Refers to The generation 5.5 (or G5.5) printed OLED production line at Wuhan CSOT
RMB Refers to Renminbi
5Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Part II Corporate Information and Key Financial Information
I. Corporate Information
Stock name TCL TECH. Stock code 000100
Place of listing Shenzhen Stock Exchange
Company name in Chinese TCL科技集团股份有限公司
Abbr. (if any) TCL科技
Company name in English (if any) TCL Technology Group Corporation
Abbr. in English (if any) TCL TECH.Legal representative Li Dongsheng
II. Contact Information
Board Secretary
Name Liao Qian
10/F Tower G1 International E Town TCL Science Park 1001
Office address Nanshan District Shenzhen Guangdong Province China
Tel. 0755-33311666
Email address ir@tcl.com
III. Other Information
1. Contact Information of the Company
Whether the registered address office address and their zip codes website address and email address of the Company changed
during the Reporting Period
□Applicable ?Not applicable
No changes occurred to the registered address office address and their zip codes website address email address and other contact
information of the Company during the Reporting Period. Please refer to the 2024 Annual Report for details.
2. Media for Information Disclosure and Place Where This Report is Lodged
Whether the media for information disclosure and place where this Report is lodged changed during the Reporting Period
□Applicable ?Not applicable
No changes occurred to the name and website of the stock exchange website and media on which the Company discloses its Interim
Report and the place for lodging such reports during the Reporting Period. Please refer to the 2024 Annual Report for details.
3. Other Information
Whether other information changed during the Reporting Period
□Applicable ?Not applicable
6Full Text of the 2025 Interim Report of TCL Technology Group Corporation
IV. Key Accounting Data and Financial Indicators
Indicate whether there is any retrospectively adjusted or restated datum in the table below
□Yes ?No
H1 2025 H1 2024 Change
Operating revenue (RMB) 85560004497 80223736962 6.65%
Net profits attributable to the company’s shareholders 1883499452 995211533 89.26%
(RMB)
Net profits attributable to the company's shareholders 1558735448 558757061 178.96%
after non-recurring gains and losses (RMB)
Net cash generated from operating activities (RMB) 27273981394 12632721713 115.90%
Basic earnings per share (RMB/share) 0.1014 0.0535 89.53%
Diluted earnings per share (RMB/share) 0.1003 0.0530 89.25%
Weighted average return on equity (%) 3.54 1.87 Increase by 1.67percentage points YoY
End of the Reporting December 31
Change
Period 2024
Total assets (RMB) 400469462636 378251915923 5.87%
Net assets attributable to shareholders of the listed 53595104495 53167609357 0.80%
company (RMB)
V. 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
VI. Non-Recurring Gains and Losses
?Applicable □Not applicable
Unit: RMB
Item Amount
Gains and losses on disposal of non-current assets (inclusive -20061225
7Full Text of the 2025 Interim Report of TCL Technology Group Corporation
of impairment allowance write-offs)
Public grants charged to current gains and losses (except for
public grants that are closely related to the Company's daily
operations comply with national policies are granted based 633215125
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
18445711
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
27615955
been individually tested for impairment
Non-operating income and expenses other than the above 126890210
Other gain and loss items that meet the definition of non-
-
recurring gains and losses
Less: Amount affected by income tax 84753814
Amount affected by equity of minority shareholders (net
376587958
of tax)
Total 324764004
Details of other profit and loss items that meet the definition of non-recurring profits and losses:
□Applicable ?Not applicable
The Company has no other profit and loss items that meet the definition of non-recurring profits and losses.Notes on non-recurring profit and loss items that are listed in the Explanatory Announcement No. 1 on Information Disclosure for
Companies Offering Their Securities to the Public—Non-Recurring Gain/Loss shall be used to define Recurring Gain/Loss items
□Applicable ?Not applicable
The Company does not have any non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Their Securities to the Public—Non-Recurring Gain/Loss that are defined as recurring profit and
loss items.
8Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Part III Management Discussion and Analysis
I. Overall Operating Performance of the Company During the Reporting Period
Since the start of the year growing global economic uncertainties and a restructured
international trade landscape have accelerated the transformation of rules in economic globalization.Rising U.S. tariffs are increasing worldwide trade costs fueling trends toward deglobalization and
supply chain regionalization. These shifts are poised to significantly impact the development of
China's manufacturing sector. In the face of external challenges the Company adheres to the
leading strategy focusing on three key business pillars including displays new energy
photovoltaics and other silicon materials with a view to improving operational resilience and
promoting high-quality and sustainable growth.During the Reporting Period the Company realized RMB 85.6 billion in operating revenue
representing a 6.7% year-over-year increase. Net profit attributable to shareholders reached RMB
1.88 billion surging 89.3% YoY while operating cash flow grew 115.9% YoY to RMB 27.3 billion.
As of the end of the Reporting Period the Company’s debt-to-asset ratio stood at 67.7% an
increase of 2.78 percentage points from the end of the previous reporting period; cash and cash
equivalents at the end of the Reporting Period were RMB 26.56 billion. Driven by significant new
investments this year and the availability of favorable lending rates the debt-to-asset ratio has risen.The Company remains committed to maintaining this ratio within a reasonable range.II. Operating Performance of the Company’s Core Businesses During the Reporting Period
The Company focused on the development of the core business including displays new
energy photovoltaics and other silicon materials and was committed to achieving the strategic goal
of global leadership.(I) Display Business
9Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Global retail demand for LCD TVs remained stable in the first half of 2025. National subsidies
accelerated the shift toward larger screen sizes sustaining the surge in the demand area for panels.Increased supply-side production capacity concentration and an optimized industry landscape
balanced supply and demand leading to narrow price fluctuations for major products aligned with
seasonal cycles.During the Reporting Period TCL CSOT achieved an operating revenue of RMB 50.43 billion
an increase of 14.4% year-on-year; net profit was RMB 4.32 billion up 74.0% year-on-year; and
net profit attributable to shareholders of TCL TECH. was RMB 2.63 billion an increase of 51%
year-on-year. Leveraging its advantages in scale and efficiency TCL CSOT continuously optimized
its business and product structure thus significantly improving its operating performance further
solidifying its competitive edge in the display industry.The Company maintained its competitive edge in large-sized products like TVs and
commercial displays growing its market share by 4 percentage points year-on-year to 24%. Its
comprehensive competitiveness and EBITDA continued to lead globally. Competitiveness in the
small and medium-sized LCD product segment increased rapidly: during the Reporting Period the
monitor sales volume increased by 18% year-on-year; NB sales volume increased by 71% year-on-
year; vehicle-mounted display sales volume increased by 61% year-on-year; mobile phone sales
volume increased by 51% year-on-year; and sales in the specialized display market saw a
significant year-on-year growth.During the Reporting Period the Company completed the acquisition of 100% equity in LG
Display (China) Co. Ltd. and LG Display (Guangzhou) Co. Ltd. integrating and renaming them as
t11 with a production capacity of 180k pieces/month. Since the second quarter this acquisition has
become an increasingly significant contributor to the Company's operating performance. During the
same period the Company also completed the second-phase construction of the t9 project in
10Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Guangzhou. The strong industrial synergy between the t9 and t11 projects enhanced the Company's
scale and competitiveness in small and medium-sized displays. This synergy optimizes the
Company's product structure and laid a solid foundation for the sustainable development of its LCD
business.The Company's OLED business (t4 G6 line) sustained its growth trajectory with an increase
in year-over-year sales volume of 8.7% while operating revenue is up 9.2% YoY. The Company
secured the fourth position globally for flexible OLED smartphone shipments and remained a top-
three player in foldable products. This was complemented by the successful ramp-up to mass
production and shipment of its wearables line. Currently the t4 factory leads the domestic industry
in key metrics including capacity utilization rate project input-output ratio and EBITDA margin.During the Reporting Period the Company successfully completed the construction of the
G5.5 printed OLED production line (t12) with capacity increasing from 3k pieces/month to 9k
pieces/month. The t12 project continues to optimize its production processes efficiency and
product quality. The Company is also driving the industrialization of its high-generation printed
OLED projects positioning it to achieve major breakthroughs in the next-generation OLED
industry.The Company is actively expanding its presence in the Micro LED (hereinafter referred to as
“MLED”) industry. At the end of 2020 TCL CSOT and Sanan Optoelectronics jointly established a
laboratory and during the Reporting Period the first MLED production line was built in Suzhou.The Company plans to capitalize on emerging opportunities in the MLED sector by expanding
investments in product technology materials and key segments of the industry chain thereby
strengthening its competitive market position.During the Reporting Period the Company acquired a 21.53% equity stake in Shenzhen China
Star Optoelectronics Bandaoti Display Technology Co. Ltd.—operator of the G11 production lines
11Full Text of the 2025 Interim Report of TCL Technology Group Corporation
(t6 t7)—from the Shenzhen Major Industrial Development Phase I Fund. The asset transfer for this
transaction was finalized in early July 2025. This strategic acquisition is expected to boost net profit
attributable to the parent company and strengthen the contribution of the display business to the
listed company’s profitability.The Company will further improve its global industrial layout to adapt to the challenges of the
restructured global economy and trade landscape. During the Reporting Period the Company
invested in and built a module plant in Vietnam and significantly improved the operational
efficiency of its existing module plant in India each year.(II) Silicon Wafer Business
During the Reporting Period Zhonghuan Advanced achieved an operating revenue of RMB 2.74
billion growing 38.2% year-on-year and solidifying its leadership in both scale and competitiveness
within the domestic industry. The Company's products technologies processes and quality have
been further enhanced with products consistently supplied to major domestic integrated circuit
manufacturers and partial exports achieved. The Company is confident of sustaining business
growth and further strengthening its market competitiveness in the second half of the year.(III) New Energy Photovoltaics Business
During the Reporting Period TZE’s photovoltaics business achieved an operating revenue of
RMB 9.87 billion registering a year-on-year decrease of 28.0% of which crystal wafer operating
revenue was RMB 5.77 billion down 7.1% quarter-on-quarter; and cell and module operating
revenue was RMB 3.85 billion up 26.2% quarter-on-quarter.Amid a severe industry downturn and intense competition within the photovoltaics sector the
Company is implementing proactive and effective strategies to navigate the market’s challenges.Guided by the principle of “turning crisis into opportunity through development and discoveringnew paths by overcoming difficulties” the Company is not only tackling current operational
12Full Text of the 2025 Interim Report of TCL Technology Group Corporation
pressures but also strategically positioning itself for future growth. To this end it is reinforcing its
leadership in wafer technology strengthening its cell and module segments aggressively expanding
its global footprint and actively pursuing strategic mergers acquisitions and overseas investment
opportunities. The Company is confident in its ability to enhance the performance of TZE’s
photovoltaics business reinforce its competitive position and establish a strong foundation for
sustainable growth. These efforts will position the Company to successfully navigate the ongoing
industry downturn and unlock new pathways for future expansion.(IV) Non-core business
The Company’s non-core businesses satisfied its operating budgets and maintained healthy
growth. As the world's largest TV ODM provider MOKA reported operating revenue of RMB
10.39 billion during the Reporting Period representing a year-on-year increase of 16%. TV ODM
shipment volume reached 7.49 million units generating operating revenue of RMB 8.03 billion and
solidifying its position as a global leader. Meanwhile MOKA's monitor ODM business also
experienced rapid expansion with shipments rising 28% year-on-year to 4.62 million units.Additionally businesses such as Highly and TPC also achieved the goal set at the beginning of the
year and sustained healthy development.Facing a severe and complex external environment the Company will embrace the spirit of
“Embarking on the Voyage and Pressing Ahead Against All Odds.” By adhering to the operationalphilosophy of “Strategic Leadership Innovation-Driven Advanced Manufacturing and GlobalOperations” the Company will seize the historic opportunities presented by the upgrade of the
technology manufacturing industry and the transformation of the global energy structure to achieve
sustainable high-quality development and advance toward global leadership.
13Full Text of the 2025 Interim Report of TCL Technology Group Corporation
III. Analysis of Core Competitiveness
Since its establishment in 1981 TCL has consistently demonstrated resilience and adaptability
successfully navigating through various market cycles. Through sustained exploration reform and
transformation the Company has always stood firm at the forefront demonstrating the audacity to
pioneer and emerged as a globally leading high-tech industry group.In 2018 TCL underwent its most significant corporate transformation shifting from a
diversified conglomerate to a specialized business model focused on developing high-tech and
capital-intensive industries with long investment cycles. Following its rebranding to “TCL TECH.”
in 2020 the Company delisted Zhonghuan Electronic in July paving the way for its expansion into
new energy photovoltaics and silicon materials. The Company acquired Suzhou Samsung in August
2020 and achieved mass production of printed OLED in 2024. Additionally it completed the
acquisition and integration of LG’s Guangzhou LCD and module facility in 2025 reinforcing its
position as a key player in the display sector.At present TCL Tech has established a business structure centered on displays and new
energy photovoltaics. With a well-defined development roadmap efficient operations and
outstanding competitive advantages the Company has been gradually improving its core
competitiveness and sustainable development capabilities.Leading at scale: Optimizing business portfolios and building scale advantages
TCL CSOT a preeminent global display company and a pioneer in domestic display
manufacturing has cumulatively invested over RMB 280 billion. It currently operates 11 state-of-
the-art panel lines and 5 module factories serving a diverse range of global clients. The Company
has established a leading position in large-sized panels globally through both self-built production
lines and the acquisition of Suzhou Samsung. In the first half of 2025 TCL CSOT ranked second
globally in TV panel shipments. The Company has built t9 production line targeting high-value-
added mid-size products such as IT and commercial displays achieving a full-size strategic layout.In the first half of 2025 The Company secured the world’s second-largest market share in MNT
panels and ranked first in key segments such as e-sports monitors and LTPS laptops. By actively
improving the layout of the value chain and expanding the production capacity of self-built modules
TCL CSOT has further improved the Company's control and profitability in the value chain. TCL
14Full Text of the 2025 Interim Report of TCL Technology Group Corporation
CSOT has passed through several industry cycles evolving from a "follower" to a "peer" and now
a "leader". It has transformed from a large-size panel leader to an all-size display player gradually
expanding from panel manufacturing to comprehensive display solutions driving the Company's
high-quality development.TZE will continue to leverage its advantages in production capacity product offerings and
cost structure while gradually improving its relative competitiveness and establishing its leading
edge in the industry through technological innovations manufacturing transformations and
management reforms. The Company is driving ongoing improvements in its flexible photovoltaics
wafer manufacturing to strengthen its competitive edge. We are the global leader in terms of
monocrystalline silicon capacity and hold the largest worldwide market share for G12 wafers. The
international expansion continues to progress marked by the on-schedule establishment of an
overseas wafer manufacturing facility in collaboration with Saudi Arabia’s Public Investment Fund
(PIF) and Vision Industries (VI). In terms of photovoltaics modules the Company leveraged its
patented technological innovations to develop differentiated products. By actively investing in new
battery technologies the Company progressively established manufacturing strengths to provide
customers with higher-quality products.Leading in technology and ecology: Achieving leading edge technology by focusing on
core industries
The Company has established a strategic foothold in core technologies (i.e. displays and new
energy photovoltaics) by capitalizing on its subsidiaries TCL CSOT and TZE. Through strategic
partnerships with upstream and downstream industry players the Company has built a robust global
ecosystem for technology and innovation and is steadily advancing its technological leadership in
next-generation display technologies as well as G12 and N-type photovoltaics materials. The
Company has applied for over 79000 patents and facilitated or participated in the establishment of
more than 300 industry standards underscoring its status as a preeminent high-tech enterprise. The
Company has secured over 2900 patents in quantum dot display technology ranking second
globally which will ensure the independent and controllable development of key technologies for
next-generation displays. TCL Technology has established 29 R&D centers worldwide and has
been certified with 9 national-level open innovation platforms and 33 provincial-level innovation
platform qualifications.
15Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Leading in efficiency and management: navigating cycles with industry-leading
efficiency and effectiveness
Based on its scale and technological prowess TCL TECH. has achieved efficiency and
benefits which maintain its industry leadership through continuous management changes and
digitalization upgrades. TCL CSOT leverages the synergy of its twin factories to optimize
production line planning and maximize capacity expansion. By pursuing cost excellence the
Company has established an end-to-end cost advantage. Through management reforms it has
enhanced overall operational efficiency resulting in continuous improvements in product quality
and performance as well as a leading competitive position in the industry. At the same time TCL
CSOT has established proven risk management capabilities that have been honed through multiple
industry cycle fluctuations. Looking forward TCL CSOT will make use of this core competency
and will be well-poised to navigate future uncertainties and achieve global leadership.Amidst the cyclical downturn in the new energy photovoltaics industry TZE has consistently
adhered to its core business philosophy of “digging in” and comprehensively implemented Industry
4.0 intelligent manufacturing systems coupled with Operation 4.0 and Quality 4.0 management
frameworks. By continuously improving production automation operational efficiency and
management capabilities TZE is committed to successfully navigate the industry cycle and emerge
as a leading global player in the new energy photovoltaics sector.Cultural Leadership: Guided by our core values of "change innovation accountability
and excellence" the Company is being driven to achieve industry leadership
In 2020 TCL inaugurated a new phase of corporate culture as laid out in its strategic
document The Path to Global Leadership. The Company has adopted a core mission centered
around "leading technology harmonious coexistence" underpinned by the core values of "change
innovation accountability and excellence". This cultural transformation has empowered TCL
employees to embrace change drive business optimizations and upgrades through active
exploration and innovation and guided TCL in dedicating itself to delivering superior products and
services to its valued customers through accountability and the pursuit of excellence. In the face of
a complex and ever-changing external business environment TCL employees will continue to
uphold the spirit and culture of “The Path to Global Leadership”. TCL will boldly lead the way
fearlessly compete and drive the Company to effectively respond to business changes entering a
16Full Text of the 2025 Interim Report of TCL Technology Group Corporation
new stage of development.IV. Analysis of Core Businesses
Overview
See the relevant contents in “II. Main Businesses of the Company during the Reporting Period”.Year-on-year changes in key financial information
Unit: RMB
H1 2025 H1 2024 Change (%) Reason for change
Operating revenue 85560004497 80223736962 6.65% No significant change
Operating cost 74082838353 70642557593 4.87% No significant change
Sales expenses 1163964526 877396554 32.66% Mainly due to the increase in new subsidiaries
Administrative expenses 2200561949 2003839241 9.82% No significant change
Financial expenses 2141281686 2091274666 2.39% No significant change
315894303 52211560 505.03% Mainly due to the improvement in the displayIncome tax expense business
R&D investments 4528645518 4265857601 6.16% No significant change
Net cash generated from operating
27273981394 12632721713 115.90% Mainly due to the improvement in the display
activities business
Net cash used in investing
-22308345614 -17444499442 -27.88% Mainly due to the acquisition of LG’s Guangzhou
activities LCD and module facility
Net cash generated from financing 481996265 2697468234 -82.13% Mainly due to the repayment of principal and
activities interest on matured financing
Net increase in cash and cash 5695406206 -2073267407 374.71% Mainly due to the year-on-year increase in net cash
equivalents inflows from operating activities
Significant changes to the profit structure or sources of the Company during the Reporting Period
□Applicable ?Not applicable
No significant changes to the profit structure or sources of the Company during the Reporting Period.Breakdown of operating revenue
Unit: RMB
H1 2025 H1 2024
As % of total As % of total Change (%)
Amount operating Amount operating revenue
revenue (%) (%)
Total operating revenue 85560004497 100% 80223736962 100% 6.65%
By operating division
Display business 57550502531 67.26% 49877063111 62.17% 15.38%
New energy photovoltaics and
other silicon materials business 13398123076 15.66% 16213493018 20.21% -17.36%
Distribution business 14674516380 17.15% 13649332920 17.01% 7.51%
Other and offsets -63137490 -0.07% 483847913 0.61% -113.05%
By product category
Display devices 57550502531 67.26% 49877063111 62.17% 15.38%
New energy photovoltaics and
other silicon materials 13398123076 15.66% 16213493018 20.21% -17.36%
Distribution of electronics 14674516380 17.15% 13649332920 17.01% 7.51%
Other and offsets -63137490 -0.07% 483847913 0.61% -113.05%
17Full Text of the 2025 Interim Report of TCL Technology Group Corporation
By operating segment
Chinese Mainland 54848748806 64.11% 53896026672 67.18% 1.77%
Overseas Countries and Regions
(including Hong Kong) 30711255691 35.89% 26327710290 32.82% 16.65%
Note: The display business revenue mentioned above includes the revenue from TCL CSOT and Moka Technology.Operating division product category or region contributing over 10% of operating revenue or operating profit
?Applicable □Not applicable
Unit: RMB
Change in Change in
Change in gross
Operating Gross profit operating operating cost
Operating cost profit margin year-
revenue margin revenue year- year-on-year
on-year (%)
on-year (%) (%)
By operating division
Display
business 57550502531 45867436666 20.30% 15.38% 12.57% 1.99%
New energy
photovoltaics
and other
silicon 13398123076 14412073108 -7.57% -17.36% -13.57% -4.72%
materials
business
Distribution
business 14674516380 14179043978 3.38% 7.51% 7.67% -0.14%
By product category
Display devices 57550502531 45867436666 20.30% 15.38% 12.57% 1.99%
New energy
photovoltaics
and other 13398123076 14412073108 -7.57% -17.36% -13.57% -4.72%
silicon
materials
Distribution of
electronics 14674516380 14179043978 3.38% 7.51% 7.67% -0.14%
By operating segment
Chinese
Mainland 54848748806 50404964466 8.10% 1.77% 1.45% 0.29%
Overseas
Countries and
Regions 30711255691 23677873887 22.90% 16.65% 12.98% 2.51%
(including
Hong Kong)
Core business data in the recent term restated according to the changed methods of measurement that occurred in the Reporting
Period
□Applicable ?Not applicable
V. Analysis of Non-Core Businesses
?Applicable □Not applicable
Unit: RMB
Amount As % of gross profit Source Sustainability
Mainly due to the
recognition of return
Return on investment 831296321 239.17% on investment fromjoint ventures and Yes
investment returns on
financial assets etc
18Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Mainly due to the
Gain/loss of fair-value movement in fair value469888483 135.19% of financial assets Yes
changes during the holding
period
Falling price of
Asset impairment -2798944122 -805.28% inventory write-offs in No
line with the market
Non-operating income 29824684 8.58% - No
Non-operating 119957236 34.51% - No
expenses
VI. Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
End of the Reporting Period December 31 2024
Weight Main reason for
As % of total As % of total
Amount Amount Change change
assets assets
Monetary assets 28544342940 7.13% 23007772733 6.08% 1.05% No significantchange
Accounts receivable 19741951084 4.93% 22242152687 5.88% -0.95% No significantchange
Contract assets 397673182 0.10% 395116789 0.10% 0.00% No significantchange
Inventories 20535401675 5.13% 17594133395 4.65% 0.48% No significantchange
Investment property 602893409 0.15% 612733509 0.16% -0.01% No significantchange
Long-term equity 24120704984 6.02% 24595634142 6.50% -0.48% No significant
investments change
Fixed assets 172569694580 43.09% 170512009105 45.08% -1.99% No significantchange
Construction in 17808442433 4.45% 23580503161 6.23% -1.78% No significant
progress change
Right-of-use assets 6593796271 1.65% 6697687926 1.77% -0.12% No significantchange
Short-term 9228272240 2.30% 8193283100 2.17% 0.13% No significant
borrowings change
Contract liabilities 2183855081 0.55% 1969271038 0.52% 0.03% No significantchange
Long-term 128471716122 32.08% 116815131219 30.88% 1.20% No significant
borrowings change
Lease liabilities 6300595064 1.57% 6334785779 1.67% -0.10% No significantchange
2. Major Assets Overseas
□Applicable ?Not applicable
3. Assets and Liabilities at Fair Value
?Applicable □Not applicable
Unit: RMB
19Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Gain/loss of Impairment
Cumulative
fair-value allowances Amount
fair-value Amount sold in
Beginning changes in established purchased in
Item changes the Reporting Other changes Ending amount
amount the in the the Reporting
recorded in Period
Reporting Reporting Period
equity
Period Period
Financial
assets
1. Held-for-
trading
financial
assets
16560971113244722763--51848248120446417144347867631924090903881
(excluding
derivative
financial
assets)
2. Derivative
financial 172488618 195979459 - - 71100768 377103775 106260937 168726007
assets
3.
Receivables 831407255 3128218996 3959626251
financing
4.
Investments
in other 387850846 - -189028958 - 19840940 11101277 17726817 414317326
equity
instruments
5. Other
non-current
222519982340378820--778763607489659211192881182573971157
financial
assets
Subtotal of
financial 20177917655 481081042 -189028958 - 52717953435 45519578697 3350171187 31207544622
assets
Total of the
20177917655481081042-1890289585271795343545519578697335017118731207544622
above
Financial
69515997711192559--9444150861090072510-31753320528941792
liabilities
Significant changes to the measurement attributes of the major assets in the Reporting Period
□Yes ?No
4. Restricted Asset Rights as of the Period-End
Restricted assets Carrying amount(RMB’0000) Reason for restriction
Monetary assets 25524 Deposited in the central bank as the required reserve
Monetary assets 173244 Other monetary assets and restricted bank deposits
Fixed assets 9259083 As collateral for loan
Intangible assets 410626 As collateral for loan
Held-for-trading financial assets 14540 In pledge
Construction in progress 91464 As collateral for loan
20Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Accounts receivable 94542 In pledge
Contract assets 13319 In pledge
Total 10082342
VII. Investments Made
1. Total Investment Amount
?Applicable □Not applicable
Total investment amount in the Total investment amount in the same
Change (%)
Reporting Period (RMB) period last year (RMB)
225813021751501864909850.36%
2. Major Equity Investments Made in the Reporting Period
?Applicable □Not applicable
Unit: RMB’000000000
Investment
Progress
gains and Index to
Shareholdin as of the Date of
Name of Principal Investment Investmen Funding Investmen Product Expected losses for Involvement disclosed
g Partner balance disclosure
investee activity method t amount source t period type returns the in litigation information
percentage sheet (if any)
Reporting (if any)
date
Period
Producing
large-sized
LG
LCD panels Not
Display Self- Not Not Transferr Not
for TV and 100% None applicabl No
(China) raised applicable applicable ed applicable
commercial e
Co. Ltd.display Equity March 19 ( www.
137.03 cninfo.com.
products acquisition 2025 cn)
LG
Display Producing Not
Self- Not Not Transferr Not
(Guang LCD display 100% None applicabl No
raised applicable applicable ed applicable
zhou) Co. modules e
Ltd.Total -- -- 137.03 -- -- -- -- -- -- -- -- -- -- --
Note: 1. LG Display (China) Co. Ltd. has been renamed Guangzhou China Star Optoelectronics Technology Co. Ltd.; LG Display
(Guangzhou) Co. Ltd. has been renamed Guangzhou China Star Optoelectronics Display Co. Ltd.
2. The final transaction price is subject to TCL CSOT's review of the closing statements.
3. Major Non-Equity Investments Ongoing in the Reporting Period
□Applicable ?Not applicable
4. Financial Assets Investments
(1) Securities Investments
?Applicable □Not applicable
Unit: RMB'0000
21Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Gain/loss
of fair- Cumulative Amount
Initial Accounting Beginning value fair-value purchased Amount Gain/loss Ending
Security type Stock Code Stock Abbr. investment measurement carrying changes in changes in the sold in the in the Accounting Funding
cost method amount the recorded in Reporting Reporting Reporting
carrying
Period Period amount
title source
Reporting equity Period
Period
Other non-
Stocks 688469.SH UNT 26745 Fair value 24113 -1692 - - - -1692 22421 currentfinancial Self-funded
assets
Other non-
Stocks 300842.SZ DK Electronic Materials Inc. 2430 Fair value 24306 1423 - - 10609 3407 16953 currentfinancial Self-funded
assets
Bonds XS2587421681 Nanyang Commercial Bank 7083 Measurement atamortized cost 7359 - - - - 264 7328
Debt
investments Self-funded
Held-for-
Bonds USG98149AG59 WYNN MACAU LTD 623 Fair value 4978 39 - - - 173 4996 tradingfinancial Self-funded
assets
Held-for-
Bonds USG9T27HAG93 VEDANTA RESOURCES 2388 Fair value 6158 -26 - 9179 10505 3 4780 tradingfinancial Self-funded
assets
Held-for-
Bonds XS2560662541 LINK CB LTD 4455 Fair value 6075 34 - - 1832 157 4252 tradingfinancial Self-funded
assets
Held-for-
Bonds XS3038559129 MONGOLIAN MINING CORP 5680 Fair value - -122 - 6589 2313 -130 4155 tradingfinancial Self-funded
assets
Held-for-
Bonds USF2941JAA81 ELECTRICITE DE FRANCE SA 2919 Fair value 4074 -1 - - - 163 4056 tradingfinancial Self-funded
assets
Held-for-
Bonds USG84228GE26 STANDARD CHARTERED PLC 4300 Fair value 3833 -2 - 1501 1501 145 3815 tradingfinancial Self-funded
assets
Held-for-
Bonds XS1729875598 ISLAMIC REP OF PAKISTAN 2740 Fair value 2611 133 - 1010 - 232 3743 tradingfinancial Self-funded
assets
Other securities investments held at the period-end 226931 -- 140278 1473 -18792 249392 266997 3672 127694 -- --
Total 286295 -- 223786 1257 -18792 267671 293757 6393 204193 -- --
Disclosure date of the board announcement approving securities
investments April 28 2025
Date for disclosure and announcement on approving securities
investment by the general meeting (if any) May 20 2025
(2) Investments in Derivative Financial Instruments
?Applicable □Not applicable
1) Derivative investments for hedging purposes made during the Reporting Period
?Applicable □Not applicable
Unit: RMB'0000
Closing contractual amount as
a percentage of the closing net
Beginning amount Ending amount Gain/loss
assets reported by the
in the
Type of contract Company (%)
Reporting
Period
Contractual Transaction Contractual Transaction Contractual Transaction
amount limit amount limit amount limit
1. Forward forex contracts 5022555 194046 5449156 210870 42.13 1.63
42305
2. Interest rate swaps 314100 9423 0 0 0.00 0.00
Total 5336655 203469 5449156 210870 42305 42.13 1.63
Accounting policies and No significant change.specific accounting principles
22Full Text of the 2025 Interim Report of TCL Technology Group Corporation
for hedging business during
the Reporting Period and a
description of whether there
have been significant changes
from those of the previous
reporting period
Description of actual profits During the Reporting Period profit from changes in the fair value of hedged items amounted to RMB 120.41
and losses during the million; profit from the settlement of matured forward exchange contracts amounted to RMB 107.51 million and
Reporting Period profit from the valuation of outstanding forward exchange contracts amounted to RMB 195.13 million.During the Reporting Period the Company's main foreign exchange risk exposures included exposures of assets and
Description of the hedging liabilities denominated in foreign currencies arising from business such as outbound sales raw material
effect procurement and financing. The uncertain risks arising from the exchange rate fluctuations were effectively hedged
by using derivative contracts with the same purchase amounts and maturities in opposite directions.Funding source for derivative
Self-funded.investment
In order to effectively manage the exchange and interest rate risks of foreign currency assets liabilities and cash
flows the Company after fully analyzing the market trends and predicting operations (including orders and capital
plans) adopted forward foreign exchange contracts options and interest rate swaps to avoid future exchange rate
and interest rate risks. As its business scale changes the Company will adjust its exchange rate risk management
strategy according to the actual market conditions and business plans.Risk analysis:
1. Market risk: the financial derivatives business carried out by the Group is related to hedging and trading activities
associated with the main business operations. There is a market risk associated with potential losses due to
fluctuations in market prices such as underlying interest rates and exchange rates which affect the prices of
financial derivatives;
2. Liquidity risk: the derivatives business carried out by the Group is an over-the-counter transaction operated by a
financial institution and there is a risk of incurring losses due to paying fees to the bank for liquidating or selling
the derivatives below the buying prices;
3. Performance risk: the Group conducts its derivative business based on rolling budgets for risk management and
there is a risk of performance failure due to deviation arising between the actual operating results and budgets;
4. Other risks: in the case of specific business operations the failure of operational personnel to report and obtain
approvals in accordance with established procedures or to accurately promptly and comprehensively record
Analysis of risks and control information related to financial derivative transactions may result in potential losses or missed trading opportunities
measures associated with in the derivative business. Moreover if the trading operator fails to fully understand the terms of transaction
derivative investments held in contracts or product information the Group may face legal risks and transaction losses.the Reporting Period Risk control measures:
(including but not limited to 1. Basic management principles: the Group strictly follows the hedging principle mainly to fix costs and avoid risks.market risk liquidity risk It is necessary for the financial derivatives business to align with the variety size direction and duration of spot
credit risk operational risk goods and this should not involve any speculative trading. When selecting hedging instruments only simple
legal risk etc.) financial derivatives that are closely related to the main business operations and comply with the requirements of
hedge accounting should be selected. Avoid engaging in complex business activities that go beyond the established
scope of operations and involve risks and pricing that are difficult to understand;
2. The Group has formulated a special risk management regulation tailored to the risk characteristics of the financial
derivatives business covering all key aspects such as preemptive prevention in-process monitoring and post-
processing. It reasonably allocates professionals for investment decision-making business operations and risk
control as required. Personnel involved in investment are required to fully understand the risks of financial
derivatives investment and strictly implement the business operations and risk management system of derivatives.Before the holding company engages in derivative business activities the holding company must submit detailed
business reports to the competent department of the Group including information about its internal approval main
product terms operational necessity preparations risk analysis risk management strategy fair value analysis and
accounting methods. Additionally a special summary report of previously conducted operations should be
submitted. Only after obtaining the opinion of the relevant professional departments within the Group may the
holding company proceed with the operations.
3. Relevant departments should track the changes in the open market price or fair value of financial derivatives
promptly assess the risk exposure changes of invested financial derivatives and compile reports to the Board of
Directors on business development;
4. The Group will make a timely public disclosure if the combined fair value impairment of its derivatives and the
23Full Text of the 2025 Interim Report of TCL Technology Group Corporation
value change of any hedging assets results in a total loss of either 10% of the Company's most recent audited net
assets or more than RMB 10 million in absolute value.Changes in market prices or
With the rapid expansion of overseas sales the Company continued to follow the above rules in the operation of
fair value of derivative
forward foreign exchange contracts interest rate swap contracts and currency swap contracts to avoid and hedge
investments in the Reporting
against foreign exchange risks arising from operations and financing. During the Reporting Period there were
Period (fair value analysis
profits and losses of RMB 120.41 million from changes in the fair value of hedged items and RMB 302.64 million
should include the
from derivatives. The fair value of derivatives is determined by the real-time quoted price of the foreign exchange
measurement method and
market and is based on the difference between the contractual price and the forward exchange rate quoted
related assumptions and
immediately on the foreign exchange market on the balance sheet date.parameters)
Legal matters involved (if
None
applicable)
Disclosure date of the board
announcement approving the
April 28 2025
derivative investments (if
any)
Disclosure date of the general
meeting announcement
May 20 2025
approving the derivative
investments (if any)
2) Derivative investments for speculative purposes during the Reporting Period
□Applicable ?Not applicable
There were no derivative investments for speculative purposes made by the Company during the Reporting Period.
5. Use of the capital raised
□Applicable ?Not applicable
No raised capital is used during the Reporting Period.VIII. Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□Applicable ?Not applicable
The Company did not dispose of any major assets at the end of the Reporting Period.
2. Sale of Major Equity Investments
□Applicable ?Not applicable
IX. Principal Subsidiaries and Joint Stock Companies
?Applicable □Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the Company's net profits
Unit: RMB'0000
Company Type of Principal Registered Operating Operating
Company name Total assets Net assets Net profits
change activity capital revenue profit
TCL China Star Subsidiary Display RMB 33.08 5042920 447706 431627
24Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Optoelectronics billion 21364771 7808211
Technology Co.Ltd.TCL Zhonghuan New energy
Renewable photovoltaics
Energy Subsidiary and other RMB 4.04silicon billion 12481691 4176715 1339812 -471875 -483617Technology Co.Ltd. materialsbusiness
Highly
Information Subsidiary Distribution RMB 412business million 813850 160227 1467452 8562 6796Industry Co. Ltd.Acquisition and disposal of subsidiaries in the Reporting Period
?Applicable □Not applicable
How subsidiaries were
Company name obtained or disposed of Effects on overall operations and
in the Reporting Period operating performance
Zhengzhou Shangzhao Electronic Technology Co. Ltd. Newly established No significant effect
Chongqing Sunpiestore Technology Co. Ltd. Newly established No significant effect
Chongqing Shangpai Zhengcheng Technology Co. Ltd. Newly established No significant effect
Guizhou Shangpai Zhengcheng Technology Co. Ltd. Newly established No significant effect
Urumqi Shangpai Lingchuang Trading Development Co. Ltd. Newly established No significant effect
Anyang Shangyi Technology Co. Ltd. Newly established No significant effect
Chongqing Shangpai Zhengyan Technology Co. Ltd. Newly established No significant effect
Changji Shangpai Yifan Trading Co. Ltd. Newly established No significant effect
Urumqi Shangpai Zhuoyao Trading Development Co. Ltd. Newly established No significant effect
Shake Kawo (Xi'an) Technology Co. Ltd. Newly established No significant effect
Xi'an Shengkai Shangpai Technology Co. Ltd. Newly established No significant effect
Luoyang Shangyi Electronic Technology Co. Ltd. Newly established No significant effect
Zhengzhou Shangfeng Electronic Technology Co. Ltd. Newly established No significant effect
Xi'an Shake Jisu Technology Co. Ltd. Newly established No significant effect
Luoyang Shangxuan Electronic Technology Co. Ltd. Newly established No significant effect
Xi'an Shengfeng Shangpai Technology Co. Ltd. Newly established No significant effect
Chongqing Shangpai Zhengqi Technology Co. Ltd. Newly established No significant effect
Chongqing Shangpai Zhengfu Technology Co. Ltd. Newly established No significant effect
Chongqing Shangpai Zhengxin Technology Co. Ltd. Newly established No significant effect
Chongqing Shangpai Zhenghong Technology Co. Ltd. Newly established No significant effect
Chongqing Shangpai Zhengrong Technology Co. Ltd. Newly established No significant effect
Luoyang Shangwu Electronic Technology Co. Ltd. Newly established No significant effect
Zhengzhou Titi YunChuang Technology Co. Ltd. Newly established No significant effect
Guangzhou China Star Optoelectronics Technology Co. Ltd. Acquisition No significant effect
Guangzhou China Star Optoelectronics Display Co. Ltd. Acquisition No significant effect
Shenzhen Pulin Gaote Circuit Co. Ltd. Acquisition No significant effect
Maoxing Holdings Limited Capital increase forcontrolling interest No significant effect
TCL International Marketing Limited (BVI) De-registered No significant effect
Hohhot Shuguang New Energy Co. Ltd. Transferred No significant effect
Shanxi Province Loufan County Huanshuo New Energy Co.Ltd. Transferred No significant effect
25Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Xuzhou Huanneng New Energy Co. Ltd. Transferred No significant effect
Tianjin Binhai Huanxu New Energy Co. Ltd. Transferred No significant effect
Heilongjiang Huanju New Energy Co. Ltd. Transferred No significant effect
Explanation of Principal Subsidiaries and Joint Stock Companies: None
X. Structured Bodies Controlled by the Company
□Applicable ?Not applicable
XI. Risks and Responses
1. Risks from the Macro-Political and Economic Environment
Global economic growth has underperformed yet a definitive turnaround in major economies
has yet to emerge. Geopolitical conflicts and rising trade barriers are accelerating global economic
fragmentation fueling a shift toward regionalization. Moreover with persistent global inflation and
significant volatility in currency and financial markets companies face considerable operational
risks. To address these challenges the Company will continue to closely monitor macroeconomic
and geopolitical developments to identify emerging risks and develop contingency plans. Alignedwith the national strategy of “driving growth through new quality productive forces and promotinginnovation and technological breakthroughs” the Company will strengthen its focus on core
businesses uphold a technology and innovation-driven strategy to enhance competitive advantage
increase shareholder value and effectively navigate macroeconomic uncertainty.
2. Risks from Industry Prosperity Fluctuations
The display panel industry has yet to see a significant recovery in demand for the first half of
2025 with short-term demand volatility intensified by such factors as trade frictions and
consumption stimulus policies. Meanwhile the photovoltaic industry is still grappling with a state
of oversupply which is unlikely to improve in the near term. The Company will diligently monitor
shifts in industry supply and demand and optimize capacity allocation. At the same time it will
enhance its investment in R&D to continuously enhance the technological content of products. This
strategic approach will allow the Company to expand its scale and efficiency advantages thereby
building high competitive barriers and strengthening its market position.
3. Risks from Global Supply Chain Volatility
Due to geopolitical friction and volatile raw material prices global supply chain security and
26Full Text of the 2025 Interim Report of TCL Technology Group Corporation
costs are facing considerable uncertainty. To mitigate these risks the Company remains committed
to its globalization strategy by deepening localized operations and optimizing its global supply
chain layout aiming to build a more resilient risk-response capability. Furthermore the Company
will establish long-term stable strategic partnerships with its suppliers through collaboration and
other means which will strengthen its ability to monitor identify and respond to upstream supply
risks.
4. Intellectual Property and Compliance Risks
Amid intensified competition in the display and new energy materials industries the
expanding business and technology footprint of the Company has led to more frequent patent
disputes and higher IP risks. To address this the Company will accelerate substantial R&Dinvestments refining our core technologies and patent portfolio through a “self-development +ecosystem collaboration” model. To further fortify our IP defense the Company is forging strategic
partnerships with leading professional agencies. These collaborations will strengthen our
investigation of at-risk patents and enhance our patent risk early-warning systems effectively
mitigating litigation threats and elevating our overall IP risk management.Meanwhile growing trade protectionism underscores the critical importance of robust
compliance management in overseas operations. The Company will strengthen its compliance
framework by implementing a system designed to meet the export control regulations of all key
global markets. These efforts include streamlining compliance procedures implementing rigorous
employee training programs fostering a culture of awareness and collaborating closely with local
partners to proactively manage compliance risk.XII. Formulation and Implementation of the Rules for Market Value Management and
Valuation Enhancement Plan
Whether the Company has formulated the Rules for Market Value Management
?Yes □No
Whether the Company has disclosed the valuation enhancement plan
□Yes ?No
On December 27 2024 the Proposal on Formulating the Rules for Market Value Management was deliberated on and adopted
at the 7th Meeting of the 8th-term Board of Directors. To strengthen the Company's market value management further standardize its
market value management practices effectively enhance the Company's investment value increase investor returns and protect the
27Full Text of the 2025 Interim Report of TCL Technology Group Corporation
legitimate rights and interests of the Company the investors and other stakeholders the Company has formulated the Rules for
Market Capitalization Management in accordance with the Company Law the Securities Law the Several Opinions of the State
Council on Strengthening Regulation to Prevent Risk and Promoting the High-quality Development of the Capital Market the
Administrative Measures for the Information Disclosure by Listed Companies the Guidelines for the Regulation of Listed Companies
No. 10 – Market Value Management and other related provisions.The Company firmly upholds the principle of shareholder returns taking measures to protect investor interests especially those
of minority shareholders. It upholds ethical operations regulatory compliance and a focused approach to core business ensuring
prudent management. By developing advanced capabilities the Company continuously enhances operational efficiency and quality
growth. Additionally the Company prioritizes strong investor relations enhancing transparency and communications to ensure
investment value reflects its core strengths while proactively strengthening investor confidence.XIII. Implementation of the "Joint Improvement of Quality and Investment Return" Action
Plan
Whether the Company has disclosed the "Joint Improvement of Quality and Investment Returns" Action Plan Announcement.?Yes □No
To better implement the guidance on enhancing the quality and investment value of listed companies the Company has
developed the "Joint Improvement of Quality and Investment Returns" Action Plan which is based on in-depth research on industry
trends and careful consideration of our future business trajectory. In addition the Company has disclosed the progress report on the
"Joint Improvement of Quality and Investment Returns" Action Plan in combination with the implementation. For more details
please see the Joint Improvement of Quality and Investment Returns Action Plan and the progress report on the Joint Improvement of
Quality and Investment Returns Action Plan disclosed on February 28 2024 and May 8 2024 respectively.Anchored in its core display and new energy photovoltaic businesses the Company leverages its operating principles—
"Strategic Leadership Innovation-Driven Advanced Manufacturing and Global Operations"—to reinforce its industry leadership
and accelerate a future of sustainable high-quality growth. Motivated by confidence in the Company’s future development and a
commitment to protecting the interests of all shareholders the Proposal on Repurchase of a Portion of the Company’s Publicly
Traded Shares in 2025 was approved at the ninth meeting of the Eighth Board of Directors on April 15 2025. The Company planned
to repurchase a portion of its publicly issued shares through centralized bidding on the Shenzhen Stock Exchange trading system. The
total amount of the repurchase was set at no less than RMB 700 million (inclusive) and no more than RMB 800 million (inclusive)
with a price cap of RMB 6.70 per share (inclusive). The repurchased shares will be used for the Company’s employee stock
ownership plan or equity incentive program. If the shares are not used within 36 months after the completion of the repurchase the
unused portion will be canceled in accordance with relevant procedures. As of July 25 2025 the 2025 share repurchase plan has
28Full Text of the 2025 Interim Report of TCL Technology Group Corporation
been fully implemented.At the 2024 Annual General Meeting held on May 20 2025 the Company approved the Proposal for the Company’s 2024
Profit Distribution Plan: Based on the total existing share capital of 18779080767 shares a cash dividend of RMB 0.5 (tax
inclusive) shall be distributed to all shareholders for every 10 shares with a total distributed profit of RMB 938954038.35. The
remaining undistributed profit will be carried forward for future distribution. As of July 18 2025 the aforementioned dividend
distribution plan has been fully implemented.
29Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Part IV Corporate Governance Environment and Social
Responsibility
I. Change of Directors Supervisors and Senior Management
?Applicable □Not applicable
Name Office title Type of change Date of change Reason for change
Yan Xiaolin Director Elected January 13 2025 Elected
II. Interim Dividend Plan and Conversion from Capital Reserves into Share Capital
during the Reporting Period
□Applicable ?Not applicable
The Company has no interim dividend plan for profit distribution or conversion of capital reserve fund into share capital.III. Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures
for Employees
?Applicable □Not applicable
1. Equity Incentives
□Applicable ?Not applicable
2. Implementation of Employee Stock Ownership Plan
?Applicable □Not applicable
All the valid employee stock ownership plans during the Reporting Period
Proportion to
Total number of
Number of total share capital Funding source for
Name Scope of employees shares held Changes
employees of listed implementing the plan
(share)
companies
Employees' legitimate
2021-2023 The Company's
income performance-based
Employee Stock middle and senior Less than Not
38955827 0.21% bonus or other distribution
Ownership Plan management and 3600 applicable
permitted by laws and
(Phase III) outstanding key staff
regulations
Employees' legitimate
The Company's
2024 Employee income performance-based
middle and senior Less than Not
Stock Ownership 117993100 0.63% bonus or other distribution
management and 3600 applicable
Plan permitted by laws and
outstanding key staff
regulations
Note: By the end of the reporting period 2025 Employee Stock Ownership Plan (Draft) and other related matters have been deliberated and approved
by the Board of Directors. On July 17 2025 the plan was deliberated and approved by the general meeting. The underlying shares have not been
transferred/purchased.Shareholdings of Directors Supervisors and Senior Management under the Employee Stock Ownership Plan during the Reporting
30Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Period
Number of shares held at the Number of shares held at
Proportion to total share
Name Position beginning of the Reporting the end of the Reporting
capital of the Company
Period (share) Period (share)
Li
Chairman CEO
Dongsheng
Zhao Jun Director Senior Vice President
Director Board Secretary and Senior
Liao Qian About 17.97 million shares About 8.94 million shares 0.05%
Vice President
Li Jian CFO
Yan Xiaolin Senior Vice President CTO
Zhu Wei Employee Representative Supervisor
Changes of asset management institutions during the Reporting Period
□Applicable ?Not applicable
Changes of equity caused by the holder’s disposal of shares during the Reporting Period
□Applicable ?Not applicable
Exercise of shareholder rights during the Reporting Period
□Applicable ?Not applicable
During the reporting period the Company’s Employee Stock Ownership Plans did not participate in voting at the general meeting or
exercise other shareholder rights.Other relevant information and explanations of the Employee Stock Ownership Plan during the Reporting Period
□Applicable ?Not applicable
Changes in the members of the management committee for Employee Stock Ownership Plan
□Applicable ?Not applicable
Financial impact of the Employee Stock Ownership Plan on the Company during the Reporting Period and related accounting
treatment
?Applicable □Not applicable
The financial accounting treatment and taxation involved in the Company’s Employee Stock Ownership Plan (ESOP) shall be
implemented according to relevant laws regulations and normative documents such as financial systems accounting standards
taxation systems etc. The participants of the ESOP shall pay the personal income tax arising from their participation in accordance
with the law and can choose to have the plan sell a corresponding amount of shares to offset the personal income tax with the
remaining shares then allocated to them.Termination of Employee Stock Ownership Plan during the Reporting Period
?Applicable □Not applicable
Based on the relevant provisions of the 2021-2023 Employee Stock Ownership Plan (Phase I) (Revised Draft) and the 2021-2023
Employee Stock Ownership Plan (Phase II) (Draft) during the Reporting Period all plan shares attributable to employees under the
aforementioned two plans have been fully vested and the sales and transfer of such shares have been completed.
31Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Other instructions: none
3. Other Employee Incentives
□Applicable ?Not applicable
IV. Environmental Information Disclosure
Whether the listed company and its major subsidiaries are included in the list of enterprises required to disclose environmental
information in accordance with laws
?Yes □No
Number of enterprises included in the list of
enterprises that disclose environmental information 20
in accordance with the law
No. Name of enterprise Index for environmental information disclosure report
Enterprise Environmental Information Disclosure System (Hubei)
Wuhan China Star Optoelectronics http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/enterpriseInfo
Technology Co. Ltd. XTXH=6a15f252-dd39-40a0-b08c-
ba0387086f16&XH=1677751270208009244672&year=2024
Enterprise Environmental Information Disclosure System (Hubei)
Wuhan China Star Optoelectronics http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/enterpriseInfo
Bandaoti Display Technology Co. Ltd. XTXH=10470c7d-faf3-4981-8a87-
e813881ef749&XH=1677751269448009244672&year=2024
Department of Ecology and Environment of Guangdong Province -
Enterprise Environmental Information Disclosure System
Guangzhou China Star Optoelectronics
3 https://www-
Bandaoti Display Technology Co. Ltd.app.gdeei.cn/gdeepub/front/dal/report/listentName=&reportType=temp&ar
eaCode=440100&entType=&reportDateStartStr=&reportDateEndStr=
Department of Ecology and Environment of Guangdong Province -
Enterprise Environmental Information Disclosure System
TCL China Star Optoelectronics
4 https://www-
Technology Co. Ltd.app.gdeei.cn/gdeepub/front/dal/report/listentName=&reportType=temp&ar
eaCode=440100&entType=&reportDateStartStr=&reportDateEndStr=
Department of Ecology and Environment of Guangdong Province -
Enterprise Environmental Information Disclosure System
Shenzhen China Star Optoelectronics
5 https://www-
Bandaoti Display Technology Co. Ltd.app.gdeei.cn/gdeepub/front/dal/report/listentName=&reportType=temp&ar
eaCode=440100&entType=&reportDateStartStr=&reportDateEndStr=
Enterprise Environmental Information Disclosure System (Jiangsu)
Suzhou China Star Optoelectronics http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
6
Technology Co. Ltd. webapp/web/viewRunner.htmlviewId=http://ywxt.sthjt.jiangsu.gov.cn:1818
1/spsarchive-webapp/web/sps/views/yfpl/views/yfplHomeNew/index.js
Enterprise Environmental Information Disclosure System (Jiangsu)
Suzhou China Star Optoelectronics http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
7
Display Co. Ltd. webapp/web/viewRunner.htmlviewId=http://ywxt.sthjt.jiangsu.gov.cn:1818
1/spsarchive-webapp/web/sps/views/yfpl/views/yfplHomeNew/index.js
Department of Ecology and Environment of Guangdong Province -
Enterprise Environmental Information Disclosure System
Guangzhou China Star Optoelectronics
8 https://www-
Technology Co. Ltd.app.gdeei.cn/gdeepub/front/dal/report/listentName=&reportType=temp&ar
eaCode=440100&entType=&reportDateStartStr=&reportDateEndStr=
Inner Mongolia Zhonghuan Solar Enterprise Environmental Information Disclosure System (Inner Mongolia)
9
Material Co. Ltd. http://111.56.142.62:40010/support-yfpl-
32Full Text of the 2025 Interim Report of TCL Technology Group Corporation
web/web/viewRunner.htmlviewId=http://111.56.142.62:40010/support-
yfpl-
web/web/sps/views/yfpl/views/yfplHomeNew/index.js&cantonCode=15000
0
Enterprise Environmental Information Disclosure System (Jiangsu)
Wuxi Zhonghuan Applied Materials
10 http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
Co. Ltd. webapp/web/viewRunner.htmlviewId=http://ywxt.sthjt.jiangsu.gov.cn:1818
1/spsarchive-webapp/web/sps/views/yfpl/views/yfplHomeNew/index.js
Tianjin Zhonghuan Advanced
11 Enterprise Environmental Information Disclosure System (Tianjin)
Material&Technology Co. Ltd. https://hjxxpl.sthj.tj.gov.cn:10800/#/gkwz/jcym
Tianjin Huanzhi New Energy
12 Enterprise Environmental Information Disclosure System (Tianjin)
Technology Co. Ltd. https://hjxxpl.sthj.tj.gov.cn:10800/#/gkwz/jcym
Enterprise Environmental Information Disclosure System (Jiangsu)
Zhonghuan Advanced Bandaoti http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
13
Technology Co. Ltd. webapp/web/viewRunner.htmlviewId=http://ywxt.sthjt.jiangsu.gov.cn:1818
1/spsarchive-webapp/web/sps/views/yfpl/views/yfplHomeNew/index.js
Enterprise Environmental Information Disclosure System (Jiangsu)
http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
14 Huansheng Solar (Jiangsu) Co. Ltd.
webapp/web/viewRunner.htmlviewId=http://ywxt.sthjt.jiangsu.gov.cn:1818
1/spsarchive-webapp/web/sps/views/yfpl/views/yfplHomeNew/index.js
Moka Technology (Guangdong) Co. Ecological Environment Statistics Business System
15
Ltd. https://hjtj.cnemc.cn/htqy/#/login
Central Pollution Control Board India
16 TTE Electronics India Pvt Ltd.
https://eprplastic.cpcb.gov.in/
Industrial Park Management of the Department of Natural Resources and
C?NG TY TNHH C?NG NGH? Environment (Vietnam)
17
MOKA VI?T NAM https://www.quangninh.gov.vn/So/sonongnghiepptnt/Trang/ChiTietTinTuc.a
spxnid=8846
Ministry of Environment and Natural Resources
18 TCL Moka Manufacturing S.A de C.V Leyes y Normas del Sector Medio Ambiente | Secretaría de Medio Ambiente
y Recursos Naturales | Gobierno | gob.mx
Enterprise Environmental Information Disclosure System (Tianjin)
19 Tianjin Printronics Circuit Corporation
http://111.33.173.33:10800/#/gkwz/jcym
Department of Ecology and Environment of Guangdong Province -
Techigh Circuit Technology (Huizhou)
20 Enterprise Environmental Information Disclosure System
Co. Ltd.https://www-app.gdeei.cn/gdeepub/front/dal/report/list
The Company places a high priority on environmental protection by strictly adhering to national and local
environmental laws and regulations conducting environmental management in full compliance with legal and
regulatory requirements and disclosing relevant information in an orderly fashion to ensure its truthfulness
accuracy and completeness.V. Social Responsibility
Consolidating and Expanding Poverty Alleviation Achievements and Rural Revitalization
TCL TECH. is actively fulfilling its social responsibilities with a sustained commitment to public welfare.Drawing on its industrial advantages the TCL Public Welfare Foundation has donated photovoltaic power
generation systems to rural schools forging a new green and sustainable model for educational support. It has also
advanced its smart education initiatives by expanding interconnected smart classroom networks between rural and
33Full Text of the 2025 Interim Report of TCL Technology Group Corporation
urban regions and extending cross-regional online teaching reach—efforts that foster equitable access to quality
educational resources. Simultaneously the Foundation has fortified its university innovation support system. The
Foundation has deepened strategic collaborations with leading institutions optimized mechanisms for nurturing
young scholars and technological innovation projects and boosted the academic impact of its innovation and
entrepreneurship lectures. Additionally the Foundation has comprehensively advanced its in-depth rural
revitalization initiative prioritizing the implementation of localized projects in Huizhou—such as green energyinfrastructure development and rural education quality enhancement. This year the “TCL Rose Action -Employee Public Welfare Creativity Competition” will be upgraded to further promote sustainable public welfare
contributions.Semi-Annual Summary of Work on Consolidating and Expanding Achievements in Poverty
Alleviation & Promoting Rural Revitalization
Rural education is a pivotal pillar of rural revitalization. To support this the TCL Public Welfare Foundation
in collaboration with TZE donated rooftop photovoltaic (PV) power generation systems and their 25-year
electricity generation revenue to rural schools in need. The project not only utilizes green and clean energy
aligning with national policies on energy conservation and environmental protection and the dual carbon goals
but also generates income for the schools to improve their teaching environment and support students. To further
broaden the reach of this educational aid model and deepen the implementation of the “New Era Hope Project” in
support of rural education the TCL Public Welfare Foundation collaborated with the China Youth Development
Foundation to donate rooftop photovoltaic systems to Hope Primary Schools nationwide. The project has already
reached rural areas carrying out filed studies and visits in places like Shaanxi to understand the conditions and
needs of local schools and students.To promote the balanced development of education between urban and rural areas and facilitate the
interconnection and sharing of educational resources the TCL Public Welfare Foundation in collaboration with
TCL Commercial Information Technology (Huizhou) Co. Ltd. TCL Communication Technology Holdings
Limited and other partners has established TCL Smart Classrooms in schools across urban and rural regions.Leveraging next-generation technology these classrooms form a “1+N” smart classroom network equipped with
TCL's advanced educational tools including smart interactive blackboards educational tablets and eye-protection
lighting systems. This initiative enables the sharing of high-quality educational resources and promotes equity in
education. In the first half of the year the program organized six interdisciplinary classes enabling over 700
urban and rural students from diverse regions to learn and grow alongside one another through the smart
34Full Text of the 2025 Interim Report of TCL Technology Group Corporation
classroom network. To date the project has benefited more than 7700 students. The “TCL Smart Classroom”
initiative continued to empower balanced urban-rural education making the “zero-distance” sharing of quality
educational resources a reality.The TCL Public Welfare Foundation continued to advance its university donation series to advance
educational development foster innovative talent and promote breakthroughs in frontier technologies. In the first
half of 2025 the "TCL University Donation System" awarded RMB 6.5 million in funding to eight partner
universities including South China University of Technology Nankai University Xidian University and
Huazhong University of Science and Technology. The initiative also recognized five TCL Young Scholars and
selected five projects for the TCL Technology Innovation Fund. The selection process for these awards will
continue in the second half of the year. The “SUSTech-TCL Innovation and Entrepreneurship Lecture Series” also
continued with a donation of RMB 1 million in the first half of 2025. The series featured nine themed lectures
delivered by distinguished experts such as Tao Jingzhou an independent arbitrator at the Paris Court and a
member of the Expert Committee of the China International Commercial Court of the Supreme People’s Court
and Xie Kechang former Vice President and Academician of the Chinese Academy of Engineering and a Foreign
Academician of the U.S. National Academy of Engineering.In addition the TCL Public Welfare Foundation continued to deepen its targeted assistance through measures
such as infrastructure construction rural development support and educational quality improvement which helps
consolidate poverty alleviation achievements and promote urban-rural integration. In 2025 the Foundationprioritized three local public welfare projects in Huizhou: donating RMB 1 million to construct a smart “PV-Storage-Charging” integrated charging station in Xintang Village to advance the development of green energy
infrastructure in rural areas; allocating RMB 1 million to support Huizhou’s rural revitalization project
specifically for improving local educational and living conditions; and granting RMB 150000 to fund an open
reading space at Huizhou Zhongkai High-Tech Zone No. 6 Middle School enhancing the campus culturalenvironment and improving youth literacy. Concurrently the Foundation continued to organize the “TCL RoseAction - Employee Public Welfare Creativity Competition” encouraging employees to launch innovative projects
with social value and engage in community assistance at multiple levels.
35Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Part V Significant Events
I. Commitments fulfilled during the reporting period and outstanding commitments as of the
end of the reporting period by the Company’s actual controller shareholders related parties
acquirers the Company itself and other relevant commitment parties
□Applicable ?Not applicable
During the Reporting Period there were no commitments that were made by the Company its actual controller shareholders related
parties acquirers amd other relevant parties to be fulfilled within the reporting period or remained overdue and unfulfilled as at the
end of the reporting period.II. Occupation of the Company’s funds by the Controlling Shareholder or any of Its Related
Parties for Non-Operational Purposes
□Applicable ?Not applicable
No such cases in the Reporting Period.III. Irregularities in the Provision of Guarantees
□Applicable ?Not applicable
No such cases in the Reporting Period.IV. Engagement and Disengagement of Independent Auditor
Whether the interim financial report has been audited
□Yes ?No
The Interim Report has not been audited.V. Explanation of the Board of Directors and Supervisory Committee on the “Non-StandardAuditor’s Report” for the Reporting Period
□Applicable ?Not applicable
VI. Explanation of the Board of Directors on the “Non-Standard Auditor’s Report” for the
Previous Year
□Applicable ?Not applicable
VII. Insolvency and Reorganization
□Applicable ?Not applicable
No such cases in the Reporting Period.
36Full Text of the 2025 Interim Report of TCL Technology Group Corporation
VIII. Lawsuits
Significant lawsuits and arbitrations
□Applicable ?Not applicable
No such cases in the Reporting Period.IX. Punishments and Rectifications
□Applicable ?Not applicable
No significant punishments or rectifications in the Reporting Period.X. Credit Quality of the Company as well as its Controlling Shareholder and Actual
Controller
□Applicable ?Not applicable
XI. Major Related-Party Transactions
1. Recurring Related-Party Transactions
?Applicable □Not applicable
For the Company's recurring related-party transactions during the Reporting Period please refer to the related announcements
disclosed on www.cninfo.com.cn.
2. Related-Party Transactions Regarding Purchase or Disposal of Assets or Equity Interests
□Applicable ?Not applicable
During the Reporting Period there were no major related-party transactions regarding purchase or disposal of assets or equity
interests.
3. Related-Party Transactions Regarding Joint Investments in Third Parties
□Applicable ?Not applicable
There were no related-party transactions regarding joint investments in third parties during the Reporting Period.
4. Amounts Due to and from Related Parties
?Applicable □Not applicable
Indicate whether there were any amounts due to and from related parties for non-operating purposes
□Yes ?No
During the Reporting Period the Company had no amounts due to and from related parties for non-operating purposes.
5. Transactions with Related Finance Companies
□Applicable ?Not applicable
The Company had no deposits loans credit granting or other financial business with the related finance companies and related
parties.
37Full Text of the 2025 Interim Report of TCL Technology Group Corporation
6. Transactions with Related Parties by Finance Companies Controlled by the Company
?Applicable □Not applicable
Deposits
Amount incurred in the
current period
Beginning
Relationship Daily deposit Total
Related Range of balance Total deposit Ending balance
with the ceiling withdrawal
parties interest (RMB’000 amount in (RMB’0000)
Company (RMB’0000) amount in
0) current current
period
period
(RMB’0000)
(RMB’0000)
Subsidiary of
TCL
Related
Industries 250000.00 0.61%-1.04% 480.55 766542.63 686293.56 80729.62
corporation
Holdings
Co. Ltd.Loans
Amount incurred in the
current period
Relationship Beginning Total
Related Loan limit Range of Total loan repayment Ending balancewith the balance
parties (RMB'0000) interest amount in (RMB’0000)
Company (RMB’0000) amount incurrent
current
period
period
(RMB’0000)
(RMB’0000)
Subsidiary of
TCL
Related
Industries 250000.00 - - - - -
corporation
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 The balance of
Credit granting (notes
Industries Holdings Related corporation comprehensive credit on 67486.47
discount)
Co. Ltd. any day shall not exceed
Subsidiary of TCL RMB 2.5 billion
Industries Holdings Credit granting (notes (including loans notesRelated corporation 56279.19
Co. Ltd. acceptance) discounting and notes
acceptance)
7. Other Major Related-Party Transactions
?Applicable □Not applicable
Related inquiries on the website for temporary disclosure of major related-party transactions
Date of
Title of announcement announcement Website for disclosure
disclosure
Announcement on the Anticipated Recurring Related-Party Transactions
April 29 2025 http://www.cninfo.com.cn
for 2025
38Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Announcement on the Related-Party Transactions with Shenzhen Jucai
Supply Chain Technology Co. Ltd. in 2025
Report on the Execution of Recurring Related-Party Transactions in
2024
Special note on financial businesses including deposits and loans
relating to related-party transactions of finance companies
Announcement on Continuing to Provide Financial Services by TCL
Technology Group Finance Co. Ltd. to Related Parties and Renewing
the Financial Services Agreement for Related-Party Transactions
Announcement on the Launch of Accounts Receivable Factoring and the
Related-Party Transaction
XII. Major Contracts and Execution thereof
1. Entrustment Contracting and Leases
(1) Entrustment
□Applicable ?Not applicable
During the reporting period the Company had no entrustment projects that brought profit or loss of more than 10% of the Company's
total profit in the reporting period.
(2) Contracting
□Applicable ?Not applicable
During the reporting period the Company had no contracting projects that brought profit or loss of more than 10% of the Company's
total profit in the reporting period.
(3) Leases
□Applicable ?Not applicable
During the reporting period the Company had no lease projects that brought profit or loss of more than 10% of the Company's total
profit in the reporting period.
2. Major Guarantees
?Applicable □Not applicable
Unit: RMB'0000
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Disclosure date
of Actual Counter- Guarantee for
Guarantee Actual occurrence Type of Collateral (if Term of Fulfilled or
Obligor announcement guarantee guarantee (if related parties
limit date guarantee any) guarantee not
on guarantee amount any) or not
limit
Shenzhen Qianhai
Joint
Sailing International With counter-
May 20 2025 76000 January 8 2025 48585 liability / 8-250 days No No
Supply Chain guarantee
guarantee
Management Co. Ltd.Guangzhou Qihang Joint
With counter-
International Supply May 20 2025 10000 - 0 liability / - - No
guarantee
Chain Co. Ltd. guarantee
Aijiexu New Electronic Joint Guarantee in
Display Glass May 20 2025 35000 April 28 2020 15934 liability / proportion to 3.3-5 years No No
(Shenzhen) Co. Ltd. guarantee shareholding
39Full Text of the 2025 Interim Report of TCL Technology Group Corporation
percentage
Guarantee in
Inner Mongolia Xinhua Joint
proportion to
Bandaoti Technology May 20 2025 58000 May 22 2023 38000 liability / 4.9 years No No
shareholding
Co. Ltd. guarantee
percentage
Guarantee in
Inner Mongolia Joint
proportion to
Xinhuan Silicon Energy May 20 2025 180000 June 15 2023 153074 liability / 4 years No No
shareholding
Technology Co. Ltd. guarantee
percentage
Total actual amount of
Total approved limit for such guarantees
359000 such guarantees in 50585
in Reporting Period (A1)
Reporting Period (A2)
Total actual balance of
Total approved limit for such guarantees
359000 such guarantees at the end 255593
at the end of the Reporting Period (A3)
of Reporting Period (A4)
Guarantees provided by the Company as the parent for its subsidiaries
Disclosure date
of Actual Counter- Guarantee for
Guarantee Actual occurrence Type of Collateral (if Term of Fulfilled or
Obligor announcement guarantee guarantee (if related parties
limit date guarantee any) guarantee not
on guarantee amount any) or not
limit
TCL MOKA Joint
INTERNATIONAL May 20 2025 100000 May 31 2023 10016 liability / / 320-336 days No No
LIMITED guarantee
Joint
Guangzhou Zhihui
May 20 2025 30000 November 29 2024 14965 liability / / 6.4 years No No
Shengke Co. Ltd.guarantee
TTE ELECTRONICS Joint
INDIA PRIVATE May 20 2025 10000 - 0 liability / / - - No
LIMITED guarantee
Huizhou Moka Joint
Technology May 20 2025 20000 - 0 liability / / - - No
Development Co. Ltd. guarantee
Joint
Moka Technology 22 days-3.7
May 20 2025 400000 November 24 2023 127211 liability / / No No
(Guangdong) Co. Ltd. years
guarantee
Shenzhen Zhixian Shijie Joint
Software Technology May 20 2025 1000 - 0 liability / / - - No
Co. Ltd. guarantee
Shenzhen Zhilian Joint
Shuchuang Technology May 20 2025 1000 - 0 liability / / - - No
Co. Ltd. guarantee
MOKA
Joint
TECHNOLOGY
May 20 2025 20000 - 0 liability / / - - No
VIETNAM
guarantee
COMPANY LIMITED
Joint
TCL Technology 14 days-340
May 20 2025 500000 July 14 2020 357930 liability / / No No
Investments Limited days
guarantee
TCL China Star Joint
21 days-7.5
Optoelectronics May 20 2025 2000000 December 22 2022 392350 liability / / No No
years
Technology Co. Ltd. guarantee
Guangdong Juhua Joint
Printed Display May 20 2025 5000 - 0 liability / / - - No
Technology Co. Ltd. guarantee
40Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Guangzhou China Star
Joint
Optoelectronics 21 days-4.7
May 20 2025 1750000 May 19 2022 855049 liability / / No No
Bandaoti Display years
guarantee
Technology Co. Ltd.China Star
Joint
Optoelectronics
May 20 2025 10000 - 0 liability / / - - No
International (HK)
guarantee
Limited
Huizhou China Star Joint
71 days-3.7
Optoelectronics Display May 20 2025 610000 March 23 2021 456578 liability / / No No
years
Co. Ltd. guarantee
Shenzhen China Star
Joint
Optoelectronics 301 days-4
May 20 2025 710000 April 28 2018 485671 liability / / No No
Bandaoti Display years
guarantee
Technology Co. Ltd.Suzhou China Star Joint
Optoelectronics May 20 2025 20000 - 0 liability / / - - No
Technology Co. Ltd. guarantee
Suzhou China Star Joint
Optoelectronics Display May 20 2025 60000 August 30 2022 50695 liability / / 6.9 days No No
Co. Ltd. guarantee
China Display
Joint
Optoelectronics
May 20 2025 100000 December 24 2024 14824
4 days-189
liability / / days No NoTechnology (Huizhou)
guarantee
Co. Ltd.Wuhan China Star
Joint
Optoelectronics 21 days-7.3
May 20 2025 1760000 June 29 2021 1386042 liability / / No No
Bandaoti Display years
guarantee
Technology Co. Ltd.Wuhan China Star Joint
21 days-5.2
Optoelectronics May 20 2025 1300000 August 25 2022 940488 liability / / No No
years
Technology Co. Ltd. guarantee
Joint
Highly (Tianjin) E-
May 20 2025 10000 May 23 2025 5331 liability / / 4-11 days No No
Commerce Co. Ltd.guarantee
Joint
Highly (Tianjin)
May 20 2025 61000 March 27 2025 37176 liability / / 11-134 days No No
Technology Co. Ltd.guarantee
Joint
Mingsi Technology Co.May 20 2025 20000 - 0 liability / / - - No
Ltd.guarantee
Beijing Hecheng Joint
Nuoxin Technology May 20 2025 12000 February 27 2025 12000 liability / / 1.2 years No No
Co. Ltd. guarantee
Joint
Beijing Lingyun Data
May 20 2025 71000 July 19 2024 19592 liability / / 9-284 days No No
Technology Co. Ltd.guarantee
Joint
Beijing Sunpiestore 66 days-1.2
May 20 2025 136000 September 10 2023 108000 liability / / No No
Technology Co. Ltd. years
guarantee
Joint
Highly Information
May 20 2025 434000 June 1 2024 287109 liability / / 1 day-2 years No No
Industry Co. Ltd.guarantee
Joint
Qingdao Blue Business
May 20 2025 1000 - 0 liability / / - - No
Consulting Co. Ltd.guarantee
Shaanxi TiTi Electronic May 20 2025 1000 - 0 Joint / / - - No
41Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Technology Co. Ltd. liability
guarantee
Joint
Tianjin TiTi Yunchuang
May 20 2025 10000 February 27 2025 10000 liability / / 1.2 years No No
Technology Co. Ltd.guarantee
Tianjin Wanfang Joint
Nuoxin Technology May 20 2025 10000 February 27 2025 10000 liability / / 1.2 years No No
Co. Ltd. guarantee
Joint
Tianjin Xincheng Pilot
May 20 2025 1000 - 0 liability / / - - No
Technology Co. Ltd.guarantee
Joint
Beijing Youyi Online
May 20 2025 10000 May 23 2025 6491 liability / / 1-25 days No No
Technology Co. Ltd.guarantee
Joint
Tianjin Printronics
May 20 2025 53000 November 17 2022 8625 liability / / 5.2 years No No
Circuit Corporation
guarantee
Joint
TCL Technology Group
May 20 2025 50000 August 31 2022 40000 liability / / 2.2 years No No
(Tianjin) Co. Ltd.guarantee
Joint
TCL Technology Group
May 20 2025 150000 - 0 liability / / - - No
Finance Co. 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
104390001836302
approved in the Reporting Period (B1) subsidiaries in Reporting
Period (B2)
Total balance of actual
Total guarantees limit for subsidiaries
guarantees for
approved at the end of the Reporting 10439000 5636143
subsidiaries at the end of
Period (B3)
the Reporting Period (B4)
Guarantees provided between subsidiaries
Disclosure date
of Actual Counter- Guarantee for
Guarantee Actual occurrence Type of Collateral (if Term of Fulfilled or
Obligor announcement guarantee guarantee (if related parties
limit date guarantee any) guarantee not
on guarantee amount any) or not
limit
Techigh Circuit Joint
Technology (Huizhou) May 20 2025 5100 July 25 2024 350 liability / / 24-56 days No No
Co. Ltd. guarantee
Techigh Circuit Joint
Technology (Zhuhai) May 20 2025 50000 April 23 2024 19769 liability / / 8.7 years No No
Co. Ltd. guarantee
Shenzhen China Star
Joint
Optoelectronics
May 20 2025 1310000 April 28 2018 1214179 liability / / 0.8-3 years No No
Bandaoti Display
guarantee
Technology Co. Ltd.Huizhou China Star Joint
Optoelectronics Display May 20 2025 460000 January 16 2025 82500 liability / / 2.5-2.7 years No No
Co. Ltd. guarantee
Joint
TCL Moka International
May 20 2025 80000 January 23 2025 1133 liability / / 26-87 days No No
Limited
guarantee
42Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Zhonghuan Energy Joint
(Inner Mongolia) Co. June 24 2017 8440 July 21 2017 8440 liability / / 7.1 years No No
Ltd. guarantee
Inner Mongolia Joint
Zhonghuan Crystal March 22 2021 279977 April 30 2021 279977 liability / / 2.8 years No No
Materials Co. Ltd. guarantee
Joint
Ningxia Zhonghuan January 23
526500 May 30 2022 526500 liability / / 3.9 years No No
Solar Material Co. Ltd. 2022
guarantee
Inner Mongolia Joint
Zhonghuan Crystal May 26 2022 63735 June 28 2022 63735 liability / / 4 years No No
Materials Co. Ltd. guarantee
Tianjin Huanou New Joint
Energy Technology Co. May 26 2022 69749 September 28 2022 69749 liability / / 4.2 years No No
Ltd guarantee
Wuxi Zhonghuan Joint
Applied Materials Co. May 26 2022 85129 June 30 2022 85129 liability / / 4 years No No
Ltd. guarantee
Joint
Huansheng New Energy
May 26 2022 28965 September 30 2022 28965 liability / / 2.2 years No No
(Jiangsu) Co. Ltd.guarantee
Joint
Huansheng New Energy
May 26 2022 56575 March 29 2023 56575 liability / / 4.7 years No No
(Jiangsu) Co. Ltd.guarantee
Joint
Huansheng New Energy
April 8 2023 104600 February 28 2024 69000 liability / / 5.7 years No No
(Tianjin) Co. Ltd.guarantee
Huansheng New Energy Joint
(Inner Mongolia) Co. April 26 2025 140000 June 30 2025 40700 liability / / 8 years No No
Ltd. guarantee
Total actual amount of
Total guarantee limit for subsidiaries such guarantees for
5708900213199
approved in the Reporting Period (C1) subsidiaries in the
Reporting Period (C2)
Total balance of actual
Total guarantee limit for subsidiaries
guarantees for
approved at the end of the Reporting 5708900 2546700
subsidiaries at the end of
Period (C3)
the Reporting Period (C4)
Total guarantee amount (total of the three kinds of guarantees above)
Total actual guarantee
Total guarantee limit approved in the
16506900 amount in the Reporting 2100086
Reporting Period (A1+B1+C1)
Period (A2+B2+C2)
Total actual guarantee
Total approved guarantee limit at the end balance at the end of the
165069008438436
of the Reporting Period (A3+B3+C3) Reporting Period
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets 157.45%
Of which:
Balance of guarantees provided for shareholders the actual controller and
0
their related parties (D)
Balance of debt guarantees provided directly or indirectly for obligors with an
2244669
over 70% debt/asset ratio (E)
Amount by which the total guarantee amount exceeds 50% of the Company’s 5758681
43Full Text of the 2025 Interim Report of TCL Technology Group Corporation
net assets (F)
Total of the three above amounts (D+E+F) 5758681
Joint liability already borne or possibly borne with evidence in the Reporting
-
Period for outstanding guarantees (if any)
Guarantees provided in breach of prescribed procedures (if any) -
Note: (1) The guarantee period in the above table is the remaining guarantee period of the principal debt. The actual guarantee is valid for two or three years
from the expiration date of the principal debt which is subject to the single contract.
(2) In the table above Shenzhen China Star Optoelectronics Bandaoti Display Technology Co. Ltd. a subsidiary controlled by the Company was jointly
guaranteed by the Company and its subsidiary TCL China Star Optoelectronics Technology Co. Ltd. in an external syndicated loan in which the Company
provided a certain percentage of guarantee while TCL China Star Optoelectronics Technology Co. Ltd. provided full guarantee. As at the end of the Reporting
Period the debt portion under joint guarantee amounted to RMB 12141.79 million. The joint guarantee has been filled in the "Company’s Guarantee for
Subsidiaries" and "Guarantee Among Subsidiaries" respectively.
3. Entrusted Wealth Management
?Applicable □Not applicable
Unit: RMB'0000
Impairment
allowance for
unrecovered
Unrecovered
Type Funding source Amount Undue amount overdue amount of
overdue amount
wealth
management
products
Bank’s wealth
management Self-funded 1152862.21 535057.21 0 0
product
Securities firm's
wealth
Self-funded 526354.14 526354.14 0 0
management
product
Trust plan Self-funded 629750.00 629750.00 0 0
Other Self-funded 626659.21 261943.69 0 0
Total 2935625.56 1953105.04 0 0
The specific situation of high-risk entrusted wealth management with a large single amount or low security and poor liquidity
□Applicable ?Not applicable
Situation in which the Company fails to recover its principal for entrusted wealth management products or other situations that may
result in impairment
□Applicable ?Not applicable
4. Other Major Contracts
□Applicable ?Not applicable
The Company did not have any other major contracts that should be disclosed during the reporting period.XIII. Other Significant Events
□Applicable ?Not applicable
There are no other significant events that need to be explained for the Reporting Period.
44Full Text of the 2025 Interim Report of TCL Technology Group Corporation
XIV. Significant Events of the Company’s Subsidiaries
□Applicable ?Not applicable
45Full Text of the 2025 Interim Report 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
Shares
converted
New Bonus
Shares Percentage from Others Subtotal Shares Percentage
issues shares
capital
reserve
I. Restricted
6794590713.62%000287580028758006823348713.63%
Shares
1. Shares held by
state-owned legal 0 0.00% 0 0 0 0 0 0 0.00%
entities
2. Shares held by
other domestic 679459071 3.62% 0 0 0 2875800 2875800 682334871 3.63%
investors
Among which:
shares held by
00.00%0000000.00%
domestic legal
entities
Shares held by
domestic 679459071 3.62% 0 0 0 2875800 2875800 682334871 3.63%
individuals
3. Shares held by
00.00%0000000.00%
foreign investors
Among which:
shares held by
00.00%0000000.00%
foreign legal
entities
Shares held by
foreign 0 0.00% 0 0 0 0 0 0 0.00%
individuals
II. Non-restricted
1809962169696.38%000-2875800-28758001809674589696.37%
shares
1. RMB-
denominated 18099621696 96.38% 0 0 0 -2875800 -2875800 18096745896 96.37%
ordinary shares
III. Total shares 18779080767 100.00% 0 0 0 0 0 18779080767 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
46Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Holders under the Employee Stock Ownership Plan. The Company has completed the second non-trading transfer under the 2021-
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 current 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 2875800 shares as non-restricted shares
decreased by the same amount.Approval of changes in shares
□Applicable ?Not applicable
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 current directors supervisors and senior managers of the
Company through non-trading transfer and 29430560 shares were transferred to other holders through non-trading transfer.Progress on any share repurchase
?Applicable □Not applicable
1. During the Reporting Period the Company disclosed the progress of its share repurchase by the third trading day of each month.
For more details please refer to the relevant announcements released on May 7 2025 and June 4 2025 on designated information
disclosure media.
2. On July 26 2025 the Company disclosed the Announcement on the Completion of the 2025 Repurchase of Publicly Traded Shares
and the Results of the Repurchase (Announcement No.: 2025-069). From July 18 2025 to July 25 2025 the Company repurchased
a total of 174747985 shares of the Company through centralized bidding from the special securities account for repurchase
accounting for 0.88% of the total share capital of the Company. The highest and lowest trading prices were RMB 4.67 per share and
RMB 4.49 per share respectively and the total payment approximated to RMB 800 million (excluding transaction fees).Progress on reducing the repurchased shares by means of centralized bidding
□Applicable ?Not applicable
Effects of changes in shares on the basic earnings per share diluted earnings per share net asset per share attributable to the
Company's ordinary shareholders and other financial indicators of the prior year and the prior accounting period respectively
?Applicable □Not applicable
47Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Item January - December 2024 January - June 2025
Basic earnings per share (RMB/share) 0.0842 0.1014
Diluted earnings per share (RMB/share) 0.0833 0.1003
Item December 31 2024 June 30 2025
Net assets per share attributable to ordinary
shareholders of the Company (RMB) 2.8312 2.8540
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 released increased Reason for
restricted shares restricted shares restriction
shareholder restricted shares restricted shares restriction
at period-begin at period-end release
of the period of the period
Part of the
shareholding of
Directors
directors
supervisors and
senior 679459071 - 2875800
supervisors and
682334871 Not applicable
senior
management of
management is
the Company
locked as
stipulated
Total 679459071 - 2875800 682334871 -- --
II. Issuance and Listing of Securities
□Applicable ?Not applicable
III. Total Number of Shareholders and Their Shareholdings
Unit: share
Total number of ordinary Total number of preferred shareholders with
shareholders by the end of the 686366 resumed voting rights by the end of the reporting 0
Reporting Period period
Shareholdings of ordinary shareholders with more than 5% or the top 10 shareholders of ordinary shares (excluding the lending of shares under
refinancing)
Number of Shares in pledge marked or
Number of Number of non-
shares held at Increase/decrease frozen
Name of Nature of Shareholding restricted restricted
the end of the during the
shareholder shareholder percentage ordinary ordinary shares
Reporting Reporting Period
shares held held Status Number
Period
Domestic Not
Li Dongsheng 0
individual/ applicable
Ningbo Jiutian Domestic 6.75% 1266680807 1333002 674839554 591841253
Liancheng general legal In pledge 169320637
Equity entity
48Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Investment
Partnership
(Limited
Partnership)
Hong Kong
Securities Foreign legal Not
4.55%854042356-4014935508540423560
Clearing entity applicable
Company Ltd.Huizhou
Investment Public legal Not
2.85%535767694005357676940
Holding Co. entity applicable
Ltd.China Securities
Domestic
Finance Not
general legal 2.19% 410554710 0 0 410554710 0
Corporation applicable
entity
Limited
Industrial and
Commercial
Fund wealth
Bank of China - Not
management 1.78% 334564770 10370400 0 334564770 0
Huatai- applicable
product etc.Pinebridge CSI
300 ETF
Wuhan Optics
Valley
Public legal
Industrial 1.33% 249848896 60 0 249848896 In pledge 124000000
entity
Investment Co.Ltd.China
Construction Fund wealth
Not
Bank - Efund - management 1.27% 238502265 14868000 0 238502265 0
applicable
CSI 300 ETF product etc.Initiated
Bank of China
Limited -
Fund wealth
Huatai- Not
management 1.16% 218720170 43122200 0 218720170 0
Pinebridge CSI applicable
product etc.Photovoltaic
Industry ETF
Perseverance
Asset
Management
Partnership Fund wealth
Not
(Limited management 1.10% 206800000 7000020 0 206800000 0
applicable
Partnership) - product etc.Gaoyi Xiaofeng
No. 2 Zhixin
Fund
Strategic investor or general
legal entity becoming top-10
shareholders due to private Not applicable
placement of new shares (if
any) (see Note 3)
Among the top 10 shareholders Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity Investment Partnership
Note on the above (Limited Partnership) became persons acting in concert by signing the Agreement on Concerted Action. Mr. Li
shareholders’ associations or Dongsheng holds 899786071 shares and Ningbo Jiutian Liancheng Equity Investment Partnership (Limited
concerted actions Partnership) holds 366894736 shares representing 1266680807 shares in total and becoming the largest
shareholder of the Company.
49Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Explain if any of the
shareholders above was
involved in entrusting/being Not applicable
entrusted with voting rights or
waiving voting rights
Explanation of repurchase
accounts among the top 10
Not applicable
shareholders (if any) (see Note
11)
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
854042356854042356
Company Ltd. ordinary shares
Li Dongsheng
Ningbo Jiutian Liancheng RMB-denominated
591841253591841253
Equity Investment Partnership ordinary shares
(Limited Partnership)
Huizhou Investment Holding RMB-denominated
535767694535767694
Co. Ltd. ordinary shares
China Securities Finance RMB-denominated
410554710410554710
Corporation Limited ordinary shares
Industrial and Commercial
RMB-denominated
Bank of China - Huatai- 334564770 334564770
ordinary shares
Pinebridge CSI 300 ETF
Wuhan Optics Valley RMB-denominated
249848896249848896
Industrial Investment Co. Ltd. ordinary shares
China Construction Bank - RMB-denominated
238502265238502265
Efund - CSI 300 ETF Initiated ordinary shares
Bank of China Limited -
RMB-denominated
Huatai-Pinebridge CSI 218720170 218720170
ordinary shares
Photovoltaic Industry ETF
Perseverance Asset
Management Partnership RMB-denominated
206800000206800000
(Limited Partnership) - Gaoyi ordinary shares
Xiaofeng No. 2 Zhixin Fund
Related or acting-in-concert
Among the top 10 shareholders with non-restricted shares Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity
parties among top 10 non-
Investment Partnership (Limited Partnership) became persons acting in concert by signing the Agreement on
restricted shareholders as well
Concerted Action. Mr. Li Dongsheng holds 224946517 non-restricted shares and Ningbo Jiutian Liancheng Equity
as between top 10 non-
Investment Partnership (Limited Partnership) holds 366894736 non-restricted shares representing 591841253 non-
restricted shareholders and top
restricted shares in total.
10 shareholders
Explanation for the top 10
ordinary shareholders
At the end of the Reporting Period Wuhan Optics Valley Industrial Investment Co. Ltd. among the shareholders
participating in securities
above held certain shares of the Company through a credit security account.margin trading (if any) (see
Note 4)
Participation of shareholders holding more than 5% the top 10 shareholders and the top 10 non-restricted shareholders in the lending
of shares under the refinancing business
□Applicable ?Not applicable
Change in the top 10 shareholders and the top 10 non-restricted shareholders due to securities lending/returning under refinancing as
compared to the previous period
50Full Text of the 2025 Interim Report of TCL Technology Group Corporation
□Applicable ?Not applicable
Indicate whether any of the top 10 ordinary shareholders or the top 10 non-restricted ordinary shareholders of the Company
conducted any promissory repurchase transactions during the Reporting Period
□Yes ?No
No such cases in the Reporting Period.IV. Change in Shareholdings of Directors Supervisors and Senior Management
?Applicable □Not applicable
Number of
Number of
restricted Number of
restricted
Number of Decrease shares restricted
Number of shares
shares held at Increase of of shares granted at shares
shares held at granted at
Position the beginning shares during during the the granted
Name Position the end of the the end of
Status of the the reporting reporting beginning during the
Reporting the
Reporting period (share) period of the reporting
Period (share) reporting
Period (share) (share) reporting period
period
period (share)
(share)
(share)
Li Chairman
Incumbent 898453069 1333002 - 899786071 - - -
Dongsheng CEO
Zhang Vice Chairman
Incumbent - - - - - - -
Zuoteng of the Board
Director
Board
Liao Qian Secretary and Incumbent 1726619 714210 - 2440829 - - -
Senior Vice
President
Director
Zhao Jun Senior Vice Incumbent 1271538 264403 - 1535941 - - -
President
Director
Yan Xiaolin Senior Vice Incumbent 2810558 409482 - 3220040 - - -
President CTO
Non-Executive
Lin Feng Incumbent - - - - - - -
Director
Independent
Jin Li Incumbent - - - - - - -
director
Wan Independent
Incumbent - - - - - - -
Liangyong director
Wang Independent
Incumbent - - - - - - -
Lixiang director
Chairman of
the
Supervisory
Wu Zhiming Committee Incumbent - - - - - - -
Shareholder
Representative
Supervisor
Zhuang Shareholder
Incumbent - - - - - - -
Weidong Representative
51Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Supervisor
Employee
Zhu Wei Representative Incumbent 107704 82909 - 190613 - - -
Supervisor
Li Jian CFO Incumbent 1575942 1030395 - 2606337 - - -
Wang Senior Vice
Incumbent - - - - - - -
Yanjun President
Total -- -- 905945430 3834401 - 909779831 - - -
Note: 1. The increase in the number of shares held by the Company's directors supervisors and senior management during the
Reporting Period was due to the non-trading transfer of shares corresponding to holders' shares under the 2021-2023 Employee
Stock Ownership Plan (Phase II) and the 2021-2023 Employee Stock Ownership Plan (Phase III) to employees’ securities accounts.For details please refer to the Voluntary Announcement on the Non-Trading Transfer of Certain Shares of the Holders under the
Employee Stock Ownership Plan published by the Company on the designated media on June 19 2025.
2. On August 28 2025 the Company held the 13th meeting of the Eighth Board of Directors and the ninth meeting of the Eighth
Supervisory Committee. They reviewed and approved the Proposal on Canceling the Supervisory Committee and Amending the
Articles of Association and its Attachments according to which the Company plans to cancel the Supervisory Committee and
supervisors and revise the Articles of Association and its attachments accordingly. The proposal is still subject to approval by the
Company’s general meeting.V. Change of the Controlling Shareholder or the Actual Controller
Explanation on the absence of a controlling shareholder or actual controller:
Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity Investment Partnership (Limited Partnership) became persons acting
in concert by signing the Agreement on Concerted Action holding 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 despite the ownership of less than 50% of a
limited liability company’s total capital or less than 50% of a joint stock company’s total number of shares who can still prevail in
the resolution of a meeting of shareholders according to the voting rights corresponding to their interest in the limited liability
company’s total capital or the joint stock company’s total number of shares. According to the definition above the Company has no
controlling shareholder.The "actual controller" refers to an entity that while not a shareholder of a company effectively controls its actions or
operations through investment relationships contractual agreements or other arrangements. According to the definition above the
Company has no actual controller.Change of the controlling shareholder in the Reporting Period
□Applicable ?Not applicable
Change of the actual controller in the Reporting Period
52Full Text of the 2025 Interim Report of TCL Technology Group Corporation
□Applicable ?Not applicable
VI Preferred Shares
□Applicable ?Not applicable
During the reporting period the Company did not have preferred shares.
53Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Part VII Bonds
?Applicable □Not applicable
I. Enterprise Bonds
□Applicable ?Not applicable
No enterprise bonds in the Reporting Period.II. Corporate Bonds
?Applicable □Not applicable
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
July 4 July 8 July 8 and
by TCL Technology Group 24TCLK4 148804.SZ 100000.00 2.46% Stock
2024 2024 2029 principal
Corporation to Professional Exchange
repayable
Investors in 2024 (Phase 3)
in full upon
(Type 2)
maturity
Interest
Sci-Tech Innovation
payable
Corporate Bonds (Digital
annually
Economy) Publicly Offered July 8 Shenzhen
July 4 July 8 and
by TCL Technology Group 24TCLK3 148803.SZ 2029 (Note 100000.00 2.29% Stock
2024 2024 principal
Corporation to Professional 1) Exchange
repayable
Investors in 2024 (Phase 3)
in full upon
(Type 1)
maturity
Interest
Sci-Tech Innovation payable
Corporate Bonds (Digital annually
April 11 Shenzhen
Economy) Publicly Offered April 9 April 11 and
24TCLK2 148683.SZ 2029 (Note 150000.00 2.69% Stock
by TCL Technology Group 2024 2024 principal
2) Exchange
Corporation to Professional repayable
Investors in 2024 (Phase 2) in full upon
maturity
Sci-Tech Innovation February 1 Interest ShenzhenJanuary 30 February 1
Corporate Bonds (Digital 24TCLK1 148600.SZ 2026 (Note 150000.00 2.10%2024 2024 payable
Stock
Economy) Publicly Offered 3) annually Exchange
54Full Text of the 2025 Interim Report of TCL Technology Group Corporation
by TCL Technology Group and
Corporation to Professional principal
Investors in 2024 (Phase 1) repayable
in full upon
maturity
Investor eligibility (if any) For qualified investors / for professional investors; not applicable for foreign bonds
Match to trade click to trade inquire to trade bid to trade negotiate to trade; not applicable
Applicable trading mechanism
for foreign bonds
Risk of termination of listing and trading (if any) and
No
countermeasures
Note 1: The Sci-Tech Innovation Corporate Bonds (Digital Economy) Publicly Offered by TCL Technology Group Corporation to
Professional Investors in 2024 (Phase 3) (Type 1) have a term of 5 years and will expire on July 8 2029. The bonds include the
issuer's redemption option the option to adjust the coupon rate and the investor's put option at the end of the third year. If the issuer's
call option or investors' put option is exercised the maturity date of the exercised bonds will be July 8 2027.Note 2: The Sci-Tech Innovation Corporate Bonds (Digital Economy) Publicly Offered by TCL Technology Group Corporation to
Professional Investors in 2024 (Phase 2) have a term of 5 years and will expire on April 11 2029. The bonds include the issuer's
redemption option the option to adjust the coupon rate and the investor's put option at the end of the third year. If the issuer's call
option or investors' put option is exercised the maturity date of the exercised bonds will be April 11 2027.Note 3: The Sci-Tech Innovation Corporate Bonds (Digital Economy) Publicly Offered by TCL Technology Group Corporation to
Professional Investors in 2024 (Phase 1) disbursed the repurchase funds on February 5 2025 based on the exercise results of
investors' put options and resold the repurchased bonds from February 6 2025 to March 5 2025. After the resale has been
completed the outstanding balance is RMB 1.5 billion and the maturity date will be February 1 2026.Overdue bonds
□Applicable ?Not applicable
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 1) the bondholders of 24TCLK1 were entitled to exercise a put option
during the redemption window (December 19-23 2024) allowing them to sell all or a portion of their bonds back to the issuer at
RMB 100 per note (excluding accrued interest). Concurrently the coupon rate was reset downward from 2.64% to 2.10% for the
subsequent one-year period with settlement of the repurchased bonds scheduled for February 5 2025. According to data from the
Shenzhen Branch of China Securities Depository and Clearing Corporation Limited 2400000 units of the 24TCLK1 bonds were
repurchased during the redemption window totaling RMB 240000000.00 in principal amount (exclusive of accrued interest).According to the Announcement on the Resale Results of Bonds for 24TCLK1 Bonds issued by TCL Technology Group Corporation
the Company conducted the resale of the repurchased bonds from February 6 to March 5 2025 with the number of resold bonds not
exceeding 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 custody volume of 24TCLK1 is 15000000 units.
3. Adjustments of credit rating results during the Reporting Period
□Applicable ?Not applicable
4. The implementation and changes of guarantees debt repayment plans and other safeguard measures
regarding debt repayment during the Reporting Period and their impact on the equity of bond investors
□Applicable ?Not applicable
55Full Text of the 2025 Interim Report of TCL Technology Group Corporation
III. Debt Financing Instruments of Non-Financial Enterprises
?Applicable □Not applicable
1. General information on debt financing instruments of non-financial enterprises
Unit: RMB'0000
Way of
principal
Date of Value Outstanding Coupon Place of
Bond name Abbr. Bond code Maturity repayment
issuance date balance rate trading
and interest
payment
Interest
25TCL payable
2025 Sci-Tech Innovation Group annually
Bonds of TCL Technology MTN002 May 12 May 14 May 14 and Inter-bank
102582064.IB 100000.00 2.50%
Group Corporation (Phase (Sci-Tech 2025 2025 2030 principal market
2) Innovation repayable
Bonds) in full upon
maturity
Interest
25TCL
payable
2025 Mid-Term Notes of Group
annually
TCL Technology Group MTN001B
January 8 January January and Inter-bank
Corporation (Phase 1) (Sci- (Sci- 102580146.IB 100000.00 2.60%
2025 10 2025 10 2030 principal market
Tech Innovation Notes) Tech Innov
repayable
(Type 2) ation Notes
in full upon
)
maturity
Interest
25TCL
payable
2025 Mid-Term Notes of Group
annually
TCL Technology Group MTN001A
January 8 January January and Inter-bank
Corporation (Phase 1) (Sci- (Sci- 102580145.IB 100000.00 2.00%
2025 10 2025 10 2028 principal market
Tech Innovation Notes) Tech Innov
repayable
(Type 1) ation Notes
in full upon
)
maturity
Interest
23TCL
payable
Group
2023 Mid-Term Notes of annually
MTN001
TCL Technology Group February February February and Inter-bank
(Sci- 102380151.IB 150000.00 4.10%
Corporation (Phase 1) (Sci- 3 2023 7 2023 7 2026 principal market
Tech Innov
Tech Innovation Notes) repayable
ation Notes
in full upon
)
maturity
22TCL Interest
Group
2022 Mid-Term Notes of payable
MTN003
TCL Technology Group July 4 July 6 July 6 annually Inter-bank
(Sci- 102281474.IB 200000.00 3.45%
Corporation (Phase 3) (Sci- 2022 2022 2025 and market
Tech Innov
Tech Innovation Notes) principal
ation Notes repayable
) in full upon
56Full Text of the 2025 Interim Report of TCL Technology Group Corporation
maturity
Mid-term notes are issued to institutional investors in the national interbank bond market
Investor eligibility (if any)
(excluding those prohibited from purchasing by national laws and regulations)
Applicable trading mechanism Transaction inquiry request for quotation and click to trade
Risk of termination of listing and trading (if any) and
No
countermeasures
Overdue bonds
□Applicable ?Not applicable
2. Triggering and implementation of issuer or investor option clauses and investor protection clauses
□Applicable ?Not applicable
3. Adjustments of credit rating results during the Reporting Period
□Applicable ?Not applicable
4. The implementation and changes of guarantees debt repayment plans and other safeguard measures
regarding debt repayment during the Reporting Period and their impact on the equity of bond investors
□Applicable ?Not applicable
IV. Convertible Corporate Bonds
□Applicable ?Not applicable
During the reporting period the Company did not have convertible corporate bonds.V. Consolidated loss of the Reporting Period Exceeding 10% of Net Assets of the last year-end
□Applicable ?Not applicable
VI. Key Accounting Data and Financial Indicators of the Company for the Past Two Years as
at the End of the Reporting Period
Item End of the Reporting Period December 31 2024 Change
Current ratio 0.93 0.86 8.14%
Debt/asset ratio 67.70% 64.92% 2.78%
Quick ratio 0.66 0.61 8.20%
H1 2025 H1 2024 Change
Net profits attributable to the
company's shareholders after 155874 55876 178.96%
non-recurring gains and
losses (RMB'0000)
Debt-to-EBITDA ratio 7.04% 6.97% 0.07%
Interest coverage ratio 1.14 0.73 56.16%
57Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Cash coverage ratio 11.48 5.79 98.27%
EBITDA coverage ratio 7.25 6.43 12.75%
Debt repayment ratio 100% 100% 0.00
Interest payment ratio 100% 100% 0.00
Note: The significant YoY increase in the net profits attributable to the Company’s shareholders after non-recurring gains and losses
interest coverage ratio and cash coverage ratio was primarily attributable to the improved operational performance of the display
business compared to the prior-year period.
58Part VIII Unaudited Financial Report
(For the period from January 1 2025 to June 30 2025)
I. Auditor’s Report
Whether the 2025 interim report has been audited or not
□ Yes √ No
The Company’s 2025 interim financial report has not yet been audited.II. Financial Statements
The unit of the notes to the financial report is: RMB’000
No. Table of Contents Page
1 Consolidated Balance Sheet 1-2
2 Consolidated Income Statement 3
3 Consolidated Cash Flow Statement 4-5
Consolidated Statement of Changes in
Shareholders’ Equity
5 Balance Sheet of the Parent Company 8-9
6 Income Statement of the Parent Company 10
7 Cash Flow Statement of the Parent Company 11-12
Statement of Changes in Shareholder Equity
of the Parent Company
9 Notes to Financial Statements 15-163TCL Technology Group Corporation
Consolidated Balance Sheet
___________(RMB’000)_____________
Note V June 30 2025 December 31 2024
Current assets
Monetary assets 1 28544343 23007773
Held-for-trading financial assets 2 24090904 16560971
Derivative financial assets 3 168726 172489
Notes receivable 4 174115 189853
Accounts receivable 5 19741951 22242153
Receivables financing 6 3959626 831407
Prepayments 7 2024654 2090492
Other receivables 8 3926955 4723140
Inventories 9 20535402 17594133
Contract assets 10 397673 395117
Non-current assets due within one
year 11 1765934 849706
Other current assets 12 8768522 6716209
Total current assets 114098805 95373443
Non-current assets
Debt investments 13 176057 147272
Long-term receivables 14 416754 443741
Long-term equity investments 15 24120705 24595634
Investments in other equity
instruments 16 414317 387851
Other non-current financial assets 17 2573971 2225200
Investment property 18 602893 612734
Fixed assets 19 172569695 170512009
Construction in progress 20 17808444 23580503
Right-of-use assets 21 6593796 6697688
Intangible assets 22 18963082 18117467
Development expenditures 23 1769474 1831444
Goodwill 24 11973732 11159705
Long-term deferred expenses 25 2515800 2163457
Deferred income tax assets 26 2787120 2486427
Other non-current assets 27 23084818 17917341
Total non-current assets 286370658 282878473
Total assets 400469463 378251916
Person-in-charge
Legal Person-in-charge of the financial Jing
representative: Li Dongsheng of financial affairs: Li Jian department: Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
1TCL Technology Group Corporation
Consolidated Balance Sheet (Continued)
___________(RMB’000)_____________
Liabilities and shareholders' equity Note V June 30 2025 December 31 2024
Current liabilities
Short-term borrowings 28 9228272 8193283
Borrowings from the Central Bank 29 1002386 600926
Customer deposits and deposits from
other banks and financial institutions 30 1126234 177654
Held-for-trading financial liabilities 31 242097 232406
Derivative financial liabilities 32 85376 248845
Notes payable 33 6735401 7107842
Accounts payable 34 34590168 29347615
Advances from customers 35 737 2689
Contract liabilities 36 2183855 1969271
Employee compensation payable 37 3773305 4188237
Taxes and levies payable 38 1433018 1206098
Other payables 39 19249289 20072069
Non-current liabilities due within
one year 40 41636768 36224483
Other current liabilities 41 1517077 1484915
Total current liabilities 122803983 111056333
Non-current liabilities
Long-term borrowings 42 128471716 116815131
Bonds payable 43 6482694 6488620
Lease liabilities 44 6300595 6334786
Long-term payables 45 1636141 1994812
Long-term employee compensation
payable 37 22113 22424
Deferred income 46 3067628 1014891
Deferred income tax liabilities 26 2096870 1544449
Estimated liabilities 47 213233 249218
Other non-current liabilities 48 32333 27508
Total non-current liabilities 148323323 134491839
Total liabilities 271127306 245548172
Share capital 49 18779081 18779081
Capital reserves 50 9905741 10553081
Less: Treasury share 51 703652 919322
Other comprehensive income 52 (823811) (740459)
Surplus reserves 53 3974386 3974386
Specific reserves 54 5120 7189
General risk reserve 55 8934 8934
Retained earnings 56 22449307 21504719
Total equity attributable to shareholders
of the parent company 53595106 53167609
Non-controlling interests 75747051 79536135
Total shareholders’ equity 129342157 132703744
Total liabilities and shareholders' equity 400469463 378251916
Person-in-charge
Legal Person-in-charge of the financial
representative: Li Dongsheng of financial affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
2TCL Technology Group Corporation
Consolidated Income Statement
___________(RMB’000)_____________
Note V January - June 2025 January - June 2024
I. Total revenue 85661626 80303409
Including: Operating revenue 57 85560004 80223737
Interest income 58 101622 79672
Less: Operating cost 57 74082838 70642558
Interest expenditures 58 7789 14885
Taxes and levies 59 598144 500128
Sales expenses 60 1163965 877397
Administrative expenses 61 2200559 2003836
R&D expenses 62 4741879 4401567
Financial expenses 63 2141282 2091275
Including: Interest expenses 2555367 2472976
Interest income 353536 381577
Add: Other income 64 1238502 1135393
Return on investment 65 831296 421758
Including: Return on investment in
joint ventures and associates 582521 (49289)
Exchange gain 58 207 (116)
Gain on changes in fair value 66 469888 132946
Credit impairment loss 67 (25391) (7269)
Asset impairment loss 68 (2798944) (2059648)
Asset disposal income 69 (3019) 39940
II. Operating profit 437709 (565233)
Add: Non-operating income 70 29825 227436
Less: Non-operating expenses 71 119957 78140
III. Gross profit 347577 (415937)
Less: Income tax expense 72 315894 52212
IV. Net profits 31683 (468149)
(I) Classification by business continuity
1. Net profits from continuing operations 31683 (468149)
2. Net profits from discontinued operations - -
(II) Classification by ownership
1. Net profits attributable to shareholders of
the Company 1883500 995213
2. Net profit attributable to non-controlling
interests (1851817) (1463362)
V. Other comprehensive income net of tax 52 (133902) 174996
(I) Other comprehensive income that cannot
be subsequently reclassified into profit or loss (3342) 122012
(II) Other comprehensive income that may
subsequently be reclassified into profit or loss (130560) 52984
upon satisfaction of prescribed conditions
VI. Total comprehensive income (102219) (293153)
Total comprehensive income attributable to
the shareholders of the parent company 1800148 1173410
Total comprehensive income attributable to
non-controlling interests (1902367) (1466563)
VII. Earnings per share: 73
(I) Basic earnings per share (RMB yuan) 0.1014 0.0535
(II) Diluted earnings per share (RMB yuan) 0.1003 0.0530
Person-in-charge
Legal Person-in-charge of of the accounting
representative: Li Dongsheng financial affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
3TCL Technology Group Corporation
Consolidated Cash Flow Statement
___________(RMB’000)_____________
Note V January - June 2025 January - June 2024
I. Net cash generated from operating activities:
Proceeds from the sale of commodities and rendering of 98832510 79229089
services
Net increase/(decrease) in deposits from customers 946185 95348
banks and other financial institutions
Net increase/(decrease) in borrowings from the Central 400659 (186534)
Bank
Cash received from interest handling charge and 86594 63657
commission
Tax and levy rebates 2647636 2678607
Cash generated from other operating activities 74 8523407 3396202
Sub-total of cash generated from operating activities 111436991 85276369
Payments for commodities and services (64763780) (58121474)
Net (increase)/decrease in loans and advances to (273794) 143975
customers
Net (increase)/decrease in deposits in the central bank 23669 (51978)
and in interbank loans granted
Cash paid to and for employees (7713812) (6676204)
Taxes and levies paid (2607678) (2603937)
Cash used in other operating activities 75 (8827613) (5334029)
Sub-total of cash used in operating activities (84163008) (72643647)
Net cash generated from operating activities 80 27273983 12632722
II. Cash flow generated from investing activities:
Proceeds from disinvestments 47498688 35100021
Proceeds from return on investments 1282593 1844013
Net proceeds from disposal of fixed assets intangible 5281 316506
assets and other long-term assets
Cash generated from other investing activities 76 182916 352014
Sub-total of cash generated from investment activities 48969478 37612554
Payments for the acquisition and construction of fixed (8313973) (12401270)
assets intangible assets and other long-term assets
Payments for investments (56395015) (42087664)
Net payments for acquiring subsidiaries and other 80 (6104583) (4284)
business units
Cash used in other investing activities 77 (464253) (563835)
Subtotal of cash used in investing activities (71277824) (55057053)
Net cash used in investing activities (22308346) (17444499)
Person-in-charge
Legal Person-in-charge of the accounting
representative: Li Dongsheng of financial affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
4TCL Technology Group Corporation
Consolidated Cash Flow Statement (Continued)
___________(RMB’000)_____________
Note V January - June 2025 January - June 2024
III. Cash flow generated from financing activities:
Capital contributions received 71254 2000
Including: Capital contributions by non-controlling 71254 2000
interests to subsidiaries
Borrowings raised 48905168 38491832
Cash received from bond issue 3240000 3000000
Cash generated from other financing activities 78 544843 422120
Sub-total of cash generated from financing activities 52761265 41915952
Cash paid for debt repayment (40458985) (32904575)
Cash paid for distribution of dividends and profits or (2718734) (4383419)
the repayment of interests
Including: Dividend and Profit paid by subsidiaries (11617) (71763)
to minority shareholders
Cash used in other financing activities 79 (9101549) (1930490)
Subtotal of cash used in financing activities (52279268) (39218484)
Net cash generated from financing activities 481997 2697468
IV. Effect of exchange rate changes on cash and cash
equivalents 247772 41042
V. Net increase in cash and cash equivalents 5695406 (2073267)
Add: Beginning balance of cash and cash equivalents 20861255 19996815
VI. Ending balance of cash and cash equivalents 80 26556661 17923548
Person-in-charge
Legal Person-in-charge of the financial
representative: Li Dongsheng of financial affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
5TCL Technology Group Corporation
Consolidated Statement of Changes in Shareholders’ Equity
___________(RMB’000)_____________
January - June 2025
Equity attributable to shareholders of the parent company
Share capital Other equity Capital reserves Treasury Specific
Other General Non- Total
instruments share reserves comprehensive
Surplus
reserves risk
Retained
earnings controlling shareholders’income reserve interests equity
I. Balance at the end of the prior year 18779081 - 10553081 (919322) 7189 (740459) 3974386 8934 21504719 79536135 132703744
Add: Change in accounting policies - - - - - - - - - - -
II. Balance at the beginning of the current
period 18779081 - 10553081 (919322) 7189 (740459) 3974386 8934 21504719 79536135 132703744
III. Movement of the current period - - (647340) 215670 (2069) (83352) - - 944588 (3789084) (3361587)
(I) Total comprehensive income - - - - - (83310) - - 1883500 (1902367) (102177)
(II) Capital contributed and reduced by
shareholders - - (628811) 215670
-----(1871965)(2285106)
Capital contributed by shareholders - - (621898) - - - - - - 71254 (550644)
Share-based payments included in
owners' equity - - (6913) 215670
-----50426259183
Others - - - - - - - - - (1993645) (1993645)
(III) Profit distribution - - - - - - - - (938954) (14752) (953706)
Appropriation to shareholders - - - - - - - - (938954) (14752) (953706)
(IV) Internal transfer of owner's equity - - - - - (42) - - 42 - -
Other comprehensive income transferred - - - - - - - - -to retained earnings (42) 42
(V) Specific reserves - - - - (2069) - - - - - (2069)
Accrued in the period - - - - 3892 - - - - - 3892
Specific reserves used in the current - - - - (5961) - - - - -period (5961)
(VI) Others - - (18529) - - - - - - - (18529)
IV. Balance as at the end of the current
period 18779081 - 9905741 (703652) 5120 (823811) 3974386 8934 22449307 75747051 129342157
Legal Person-in-charge of Person-in-charge of the
representative: Li Dongsheng financial affairs: Li Jian financial department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
6TCL Technology Group Corporation
Consolidated Statement of Changes in Shareholders’ Equity (Continued)
___________(RMB’000)_____________
January - June 2024
Equity attributable to shareholders of the parent company
Share Other equity Capital Treasury Specific Other Generalcomprehensive Surplus risk Retained
Non- Total
capital instruments reserves share reserves reserves controlling shareholders’income 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 - - (402691) 175621 3660 178197 - - (507113) (6477457) (7029783)
(I) Total comprehensive income - - - - - 178197 - - 995213 (1466563) (293153)
(II) Capital contributed and reduced by
shareholders - - (392181) 175621 - - - - - (4208043) (4424603)
Capital contributed by shareholders - - - - - - - - - (3878546) (3878546)
Share-based payments included in
owners' equity - - 96276 696104 - - - - - 109652 902032
Others - - (488457) (520483) - - - - (439149) (1448089)
(III) Profit distribution - - - - - - - - (1502326) (802851) (2305177)
Appropriation to shareholders - - - - - - - - (1502326) (802851) (2305177)
(IV) Internal transfer of owner's equity - - - - - - - - - - -
(V) Specific reserves - - - - 3660 - - - - - 3660
Accrued in the period - - - - 17674 - - - - - 17674
Specific reserves used in the current
period - - - - (14014) - - - - - (14014)
(VI) Others - - (10510) - - - - - - - (10510)
IV. Balance as at the end of the current
period 18779081 - 10349364 (919322) 15003 (767601) 3874006 8934 21030075 85866650 138236190
Legal Person-in-charge of Person-in-charge of the
representative: Li Dongsheng financial affairs: Li Jian financial department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
7TCL Technology Group Corporation
Balance Sheet of the Company
___________(RMB’000)_____________
Assets Note XVII June 30 2025 December 31 2024
Current assets
Monetary assets 4104523 1551692
Held-for-trading financial
assets 17090460 11703700
Accounts receivable 1 48746 185239
Prepayments 12216 17740
Other receivables 2 10492989 9910856
Other current assets 22440 22518
Total current assets 31771374 23391745
Non-current assets
Long-term equity investments 3 83606889 81062401
Other non-current financial
assets 4 586824 723543
Investment property 71840 73683
Fixed assets 35171 35361
Construction in progress 38584 23410
Right-of-use assets 416866 423543
Intangible assets 78332 84043
Long-term deferred expenses 22804 26603
Deferred income tax assets 7 7
Other non-current assets 8764309 2600666
Total non-current assets 93621626 85053260
Total assets 125393000 108445005
Person-in-
Person-in-charge charge of the
Legal of financial financial
representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
8TCL Technology Group Corporation
Balance Sheet of the Company (Continued)
___________(RMB’000)_____________
Liabilities and shareholders' equity Note XVII June 30 2025 December 31 2024
Current liabilities
Short-term borrowings 300000 780798
Derivative financial liabilities - 1764
Accounts payable 15954 24762
Contract liabilities 4284 -
Employee compensation payable 197083 178592
Taxes and levies payable 13610 10056
Other payables 35042259 19252413
Non-current liabilities due within one 11237050 10912982
yOetahrer current liabilities 1872 9071
Total current liabilities 46812112 31170438
Non-current liabilities
Long-term borrowings 16689499 15289799
Bonds payable 6482694 6488620
Lease liabilities 14506 16485
Long-term payables 5268 -
Long-term employee compensation 18880 19191
pDaeyfaebrrled income 58942 55985
Total non-current liabilities 23269789 21870080
Total liabilities 70081901 53040518
Share capital 18779081 18779081
Capital reserves 16293574 16332255
Less: Treasury share 703652 919322
Other comprehensive income 119555 167402
Surplus reserves 3772322 3772322
Retained earnings 17050219 17272749
Total shareholders’ equity 55311099 55404487
Total liabilities and shareholders' equity 125393000 108445005
Person-in-
Person-in-charge charge of the
Legal of financial financial
representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
9TCL Technology Group Corporation
Income Statement of the Company
___________(RMB’000)_____________
Note XVII January - June 2025 January - June 2024
I. Operating revenue 5 186466 699303
Less: Operating cost 5 92112 449606
Taxes and levies 8101 4191
Sales expenses 13786 18060
Administrative expenses 188505 164415
R&D expenses 47687 51723
Financial expenses 576905 500159
Including: Interest expenses 768238 777950
Interest income 171300 194975
Add: Other income 1070 1179
Return on investment 6 1274402 895659
Including: Return on investment in joint
ventures and associates 6 865987 505600
Gain on changes in fair value 195528 211802
Credit impairment loss (5378) (3811)
Asset disposal income 22 11
II. Operating profit 725014 615989
Add: Non-operating income 21 18
Less: Non-operating expenses 8611 9
III. Gross profit 716424 615998
IV. Net profits 716424 615998
V. Other comprehensive income (47847) 143295
VI. Total comprehensive income 668577 759293
Person-in-
Person-in-charge charge of
Legal of financial the financial
representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
10TCL Technology Group Corporation
Cash Flow Statement of the Company
___________(RMB’000)_____________
Note XVII January - June 2025 January - June 2024
I. Net cash generated from operating activities:
Proceeds from the sale of commodities and
310122805134
rendering of services
Tax and levy rebates - 1427
Cash generated from other operating activities 13748998 5677470
Sub-total of cash generated from operating
140591206484031
activities
Payments for commodities and services (32950) (505721)
Cash paid to and for employees (89531) (84865)
Taxes and levies paid (17353) (61246)
Cash used in other operating activities (1287859) (322436)
Sub-total of cash used in operating activities (1427693) (974268)
Net cash generated from operating activities 12631427 5509763
II. Cash flow generated from investing activities:
Proceeds from disinvestments 24786151 17413365
Proceeds from return on investments 875376 1327458
Net proceeds from disposal of fixed assets
--
intangible assets and other long-term assets
Cash generated from other investing activities 2894923 -
Sub-total of cash generated from investment
2855645018740823
activities
Payments for the acquisition and construction of
fixed assets intangible assets and other long-term (21658) (1146)
assets
Payments for investments (38103002) (22881623)
Cash used in other investing activities (103085) -
Subtotal of cash used in investing activities (38227745) (22882769)
Net cash used in investing activities (9671295) (4141946)
Person-in-charge Person-in-charge
Legal of financial of the financial
representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
11TCL Technology Group Corporation
Cash Flow Statement of the Company (Continued)
___________(RMB’000)_____________
Note XVII January - June 2025 January - June 2024
III. Cash flow generated from financing
activities:
Borrowings raised 10806010 8630000
Cash received from bond issue 3240000 3000000
Cash generated from other financing
activities 87113 425625
Sub-total of cash generated from
financing activities 14133123 12055625
Cash paid for debt repayment (12707110) (10397600)
Cash paid for distribution of dividends
and profits or repayment of interests (589567) (2178628)
Cash used in other financing activities (1252578) (812165)
Subtotal of cash used in financing
activities (14549255) (13388393)
Net cash generated from financing
activities (416132) (1332768)
IV. Effect of exchange rate changes on cash
and cash equivalents (582) 293
V. Net increase in cash and cash equivalents 2543418 35342
Add: Beginning balance of cash and cash
equivalents 1508068 2642115
VI. Ending balance of cash and cash
equivalents 4051486 2677457
Person-in-
Person-in-charge charge of the
Legal of financial financial
representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
12TCL Technology Group Corporation
Statement of Changes in Shareholder Equity of the Company
___________(RMB’000)_____________
January - June 2025
Other Total
Other equity Capital Treasury comprehensive Surplus Retained shareholders’
Share capital instruments reserves share income reserves earnings equity
I. Balance at the end of the prior year 18779081 - 16332255 (919322) 167402 3772322 17272749 55404487
Add: Change in accounting policies - - - - - - - -
II. Balance at the beginning of the current
period 18779081 - 16332255 (919322) 167402 3772322 17272749 55404487
III. Movement of the current
period - - (38681) 215670 (47847) - (222530) (93388)
(I) Total comprehensive income - - - - (47847) - 716424 668577
(II) Capital contributed and reduced by
shareholders - - (40024) 215670 - - - 175646
Share-based payments included in
owners' equity - - (40024) 215670 - - - 175646
(III) Profit distribution - - - - - - (938954) (938954)
Appropriation to shareholders - - - - - - (938954) (938954)
(IV) Internal transfer of owner's equity - - - - - - - -
(V) Others - - 1343 - - - - 1343
IV. Balance as at the end of the current
period 18779081 - 16293574 (703652) 119555 3772322 17050219 55311099
Person-in-charge of
Person-in-charge of the financial
Legal representative: Li Dongsheng financial affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
13TCL Technology Group Corporation
Statement of Changes in Shareholder Equity of the Company (Continued)
___________(RMB’000)_____________
January - June 2024
Other Total
Other equity Capital Treasury comprehensive Surplus Retained shareholders’
Share capital instruments reserves share income reserves earnings equity
I. Balance at the end of the prior year 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 - - 63386 175621 143294 - (886328) (504027)
(I) Total comprehensive income - - - - 143294 - 615998 759292
(II) Capital contributed and reduced by
shareholders - - 63406 175621 - - - 239027
Share-based payments included in
owners' equity - - 63406 696104 - - - 759510
Others - - - (520483) - - - (520483)
(III) Profit distribution - - - - - - (1502326) (1502326)
Appropriation to shareholders - - - - - - (1502326) (1502326)
(IV) Internal transfer of owner's equity - - - - - - - -
(V) Others - - (20) - - - - (20)
IV. Balance as at the end of the current
period 18779081 - 16190416 (919322) 1239 3671942 16985321 54708677
Person-in-charge of
Person-in-charge of the financial
Legal representative: Li Dongsheng financial affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
14TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
I Corporate Information
TCL Technology Group Corporation (hereinafter referred to as "the Company") is a limited
liability company established in Huizhou on July 17 1997. It was changed to a limited liability
company as a whole in 2002 and was listed on the Shenzhen Stock Exchange in January 2004.Through years of new share placements private placements capital conversion share option
exercises and share repurchases and cancellations the registered capital and share capital of the
Company were RMB 18779080767 as of June 30 2025.The main business structure of the Company and its subsidiaries consists of display new
energy photovoltaic and other silicon materials industrial finance and other businesses. The
relevant information of the Company's subsidiaries is detailed in Note VIII.The registered address of the Company is: TCL TECH. Building 17 Huifeng Third Road
Zhongkai Hi-Tech Development District Huizhou City Guangdong Province.Approval and issue: These financial statements were authorized for issue by the Company’s
Board of Directors on August 28 2025.II Basis for the Preparation of Financial Statements
1 Basis for the preparation
The preparation of financial statements of the Company is based on the actual transactions and
events in accordance with the Accounting Standards for Business Enterprises - Basic Standards
published by the Ministry of Finance and specific Accounting Standards for Business
Enterprises application guidelines for Accounting Standards for Business Enterprises
Accounting Standards for Business Enterprises interpretations and other relevant regulations
(hereinafter collectively referred to as "Accounting Standards for Business Enterprises") for
confirmation and measurement combining the provisions of Regulations on Information
Disclosure and Compilation of Companies Offering Securities to the Public No. 15 - General
Provisions on Financial Reports (revised in 2023) published by CSRC.
2 Going concern basis
The Company has evaluated the ability to continue as a going concern for 12 months from the
end of the Reporting Period and has not identified any issues or circumstances that result in
significant doubts about its ability to continue as a going concern. Therefore the financial
statements have been prepared on a going concern basis.III Significant accounting policies and accounting estimates
The following significant accounting policies and accounting estimates of the Company are
formulated in accordance with the Accounting Standards for Business Enterprises. The business
not mentioned shall be implemented in accordance with the relevant accounting policies in the
Accounting Standards for Business Enterprises.
15TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
1 Statement of compliance with Accounting Standards for Business Enterprises
The financial statements are in compliance with the requirements of the Accounting Standards
for Business Enterprises and truly and completely reflect the financial position operating
results cash flow and other relevant information of the Company during the Reporting Period.
2 Accounting period
The Company adopts the calendar year as an accounting period and its fiscal year is from January
1 to December 31 of the Gregorian calendar.
3 Operations cycle
An operations cycle refers to a period from the purchase of assets by an enterprise for processing
to the realization of cash or cash equivalents. The Company takes a 12-months’ period as an
operations cycle and takes the operating cycle as the criteria for liquidity classification of assets
and liabilities.
4 Functional currency for bookkeeping
The Company uses RMB as its functional currency. Its overseas subsidiaries use the currencies
of the main economic environment in which they operate as their respective functional
currencies and their financial statements are converted into RMB and presented in RMB
thousands unless otherwise specified.
5 Method and selection basis for determining importance criteria
Item Importance criteria
The recovery reversal and actual write-off The amount of an individual item is greater than
of bad debt provisions for important RMB 50 million.receivables with bad debt provisions
accrued on an individual basis
Important construction in progress The ending carrying amount of an individual item
exceeds RMB 10 billion.Important non-wholly-owned subsidiaries The total assets of non-wholly-owned subsidiaries
exceeds 10% of that of the Group or the total
revenue of non-wholly-owned subsidiaries
exceeds 10% of that of the Group.Important joint ventures or associates The carrying amount of long-term equity
investments in a single investee exceeds 5% of the
total assets of the Group.Important prepayments contract liabilities The amount of an individual item exceeds 0.5% of
accounts payable and other payables are the total assets of the Group.aged for more than 1 year
Important capitalized research and The cumulative expenditure of an individual item
development items exceeds 0.5% of the total assets of the Group.
16TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
6 Accounting treatments for business combinations involving enterprises under and not under
common control
(1) Multiple transactions that are part of a business combination achieved in stages are accounted for as a
package transaction if the terms conditions and economic effects of these individual transactions
meet one or more of the following criteria:
(a) These transactions are made simultaneously or with consideration of influence on each other;
(b) These transactions can only achieve a complete business outcome when they are accounted forcollectively;
(c) The occurrence of a transaction depends on the occurrence of at least one of the other transactions;
(d) A transaction is uneconomical individually but is economical when considered collectively withother transactions.
(2) Business combinations involving enterprises under common control
A combination of enterprises that are ultimately controlled by the same party or parties before and
after the combination on a non-temporary basis constitutes a business combination under common
control.Assets and liabilities acquired by the Company in a business combination are measured at their
carrying amounts in the consolidated financial statements of the ultimate controlling party on the
combination date. (including the goodwill resulting from the ultimate controlling party's acquisition
of the acquiree). The difference between the carrying amount of net assets acquired in the
combination and that of the consideration paid for the combination (or the total par value of shares
issued) is used to adjust the share capital premium in the capital reserve and when the share capital
premium in the capital reserve is insufficient for offset it is used to adjust the retained earnings. If
there is a contingent consideration and it is necessary to confirm estimated liabilities or assets the
difference between the amounts of the estimated liabilities or assets and the settlement amount of
subsequent contingent consideration is used to adjust the capital reserve (capital premium or share
capital premium) and when the capital reserve is insufficient it is used to adjust the retained
earnings.For a business combination that is ultimately realized through multiple transactions if it is a package
transaction each transaction is treated as a transaction that acquires control; if it is not a package
transaction on the date of acquisition of control the difference between the initial cost of long-term
equity investments and the carrying amount of long-term equity investments before the combination
plus the carrying amount of the newly paid considerations on the date of combination is used to
adjust the capital reserve; and when the capital reserve is insufficient for offset it is used to adjust the
retained earnings. For equity investments held prior to the date of combination no accounting
treatment is carried out for other comprehensive gains recognized by equity accounting or financial
instrument confirmation and measurement standards and up to the disposal of the investment the
accounting treatment shall be based on the same basis as the direct disposal of the assets or liabilities
of the invested entity; other changes in the owner’s equity other than net profits or loss other
comprehensive income or profit distribution of net assets of the invested company recognized as
equity are not subject to accounting and will be transferred to the current profit and loss until
disposal of the investment.
(3) Business combination not under common control
A combination of enterprises that are not ultimately controlled by the same party or parties before and
after the combination constitutes a business combination not under common control.
17TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
6 Accounting treatments for business combinations involving enterprises under and not undercommon control (continued)
(3) Business combination not under common control (continued)
Assets transferred and liabilities incurred or assumed by the Company as consideration for the
business combination are measured at fair value on the date of purchase and the difference
between the fair value and their carrying amount is recognized in current profits and losses.The excess of the cost of the business combination over the Company's share of the fair value of
the acquiree's identifiable net assets is recognized as goodwill. If the cost of the business
combination is less than the Company's share of the fair value of the acquiree's identifiable net
assets the Company first reassesses the measurement of the fair values of the acquiree's
identifiable assets liabilities and contingent liabilities as well as the measurement of the cost of
the combination. If after this reassessment the cost of the combination is still less than the
Company's share of the fair value of the acquiree's identifiable net assets the difference is
recognized in the current period's profit or loss.In the case where a business combination not under common control is realized through multiple
exchanges and transactions if it is a package transaction each transaction will be accounted for
as a transaction for acquiring control; in the case it is not a package transaction if the equity
investment held before the date of combination is accounted for using equity method the sum of
the carrying amount of equity investments of the acquired party held before the date of
acquisition plus the new investment cost on the date of acquisition will be recognized as the
initial cost of the investment; the remaining comprehensive income recognized in equity
investments using equity method before the date of acquisition will be recorded when the
investment is disposed of on the same basis as those the investee adopted directly to dispose of
the relevant assets or liabilities. If the equity investment held before the date of combination is
accounted for by financial instrument recognition and measurement criteria the sum of the fair
value of the equity investment on the date of combination plus the new investment cost is taken
as the initial investment cost on the date of combination. The difference between the fair value
and the carrying amount of the original equity and the accumulated fair value changes originally
included in other comprehensive income should be transferred to return on investment in the
current period which matches the combination date.
(4) Expenses incurred from combination
The intermediary fees paid for audits legal services assessments and consultations and other
directly related expenses incurred in the business combination are recognized in profit or loss
during the period in which they are incurred. Transaction costs for the issuance of equity
securities for the business combination that may be directly attributed to equity transactions can
be deducted from equity.
18TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
7 Methods for judging control and preparing consolidated financial statements
(1) Criteria for judging control
Control means having the power of control over the investee enjoying variable returns by
participating in the relevant activities of the investee and having the ability to use the power
over the investee to influence the amount of returns.The Company judges whether it controls the investee based on comprehensive consideration of
all relevant facts and circumstances. Once any change in relevant facts and circumstances causes
the relevant elements involved in the definition of control to be changed the Company will
conduct a reassessment. The relevant facts and circumstances mainly include:
* The purpose for which the investee is established;
* The relevant activities of the investee and how to make decisions on such activities;
* Whether the rights of the investor give it the current ability to direct the relevant activities of
the investee;
* Whether the investor is exposed to or has rights to variable returns from its involvement
with the investee;
* Whether the investor has the ability to exercise its power over the investee to affect the
amount of return;
* The relationship between the investor and other parties.
(2) Consolidation scope
The scope of consolidation of the Company’s consolidated financial statements is determined on
the basis of control and all subsidiaries (including separate entities controlled by the Company)
are included into the consolidated financial statements.
(3) Consolidation procedure
The Company prepares the consolidated financial statements based on the financial statements of
itself and its subsidiaries and other relevant information. In preparing the consolidated financial
statements the Company treats the whole group as a single accounting entity to reflect the
financial position operating results and cash flow of the group as a whole under unified
accounting policies in accordance with the recognition measurement and presentation
requirements of relevant accounting standards for business enterprises.
19TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
The accounting policies and accounting periods adopted by all subsidiaries included in the
consolidated financial statements are consistent with those of the Company. If the accounting
policies or accounting periods adopted by the subsidiaries are inconsistent with those of the
Company necessary adjustments will be made in accordance with the Company's accounting
policies and accounting periods when preparing consolidated financial statements.
20TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
7 Methods for judging control and preparing consolidated financial statements (continued)
(3) Consolidation procedure (continued)
In preparing the consolidated financial statements the effects of intracompany transactions between the
Company and its subsidiaries and among subsidiaries are eliminated from the consolidated balance sheet
consolidated income statement consolidated cash flow statement and consolidated statement of changes
in shareholders' equity. Where a transaction is recognized by the Company or its subsidiaries as the
transaction subject which is different from that under the consolidated financial statement of the group
the transaction should be adjusted at the group level.If the current losses shared by the minority shareholders of a subsidiary exceed the share enjoyed by the
minority shareholder in the initial owners' equity of the subsidiary the balance will still be used to offset
the equity of minority interests.During the Reporting Period if a subsidiary or business is added due to the business combination
involving enterprises under common control the beginning balances of the consolidated balance sheet are
adjusted; the income expenses and profits of the subsidiary or business as from the beginning of the
period of combination to the end of the Reporting Period are included in the consolidated income
statement; the cash flows of the subsidiary or business as from the beginning of the period of combination
to the end of the Reporting Period are included in the consolidated cash flow statement and the relevant
items of the comparative statements are adjusted as if the reporting entity after the combination had
existed since the time point when the ultimate controller began to control.If the Company is able to exercise control over the investee under common control due to additional
investment or for other reasons it shall be deemed that the parties participating in the combination had
made adjustments based on their current state when the ultimate controller began to control. For an equity
investment in the acquiree held prior to the business combination any related profit or loss other
comprehensive income and other changes in net assets that were recognized during the period from the
later of i) the date the original equity interest was acquired and ii) the date the combining parties came
under common control up to the date of the business combination are reversed against the opening
balance of retained earnings in the comparative financial statements or against the current period's profit or
loss respectively.During the Reporting Period if a subsidiary or business is added due to a business combination involving
enterprises under non-common control the beginning balance of the consolidated balance sheet is not
adjusted; the income expenses and profits of the subsidiary or business from the date of acquisition to the
end of the Reporting Period are included in the consolidated income statement; the cash flow of the
subsidiary or business from the date of acquisition to the end of the Reporting Period is included in the
consolidated cash flow statement.If the Company is able to exercise control over the investee not under common control due to additional
investment or for other reasons the Company shall remeasure the equity of the purchased party held
before the purchase date at its fair value as at the purchase date and the difference between the fair value
and its carrying amount shall be recognized in the return on investment of the current period. If the equity
of the purchased party held before the purchase date involves other comprehensive income accounted for
under the equity method and other changes in owner’s equity other than net profits and loss other
comprehensive income and profit distribution the relevant other comprehensive income and other
changes in owner’s equity shall be converted into the return on investment of the current period which
matches the purchase date except for other comprehensive income arising from the investee’s
remeasurement of the changes in net liabilities or net assets of defined benefit plans.During the Reporting Period if the Company disposes of a subsidiary or business the income expenses
and profits of the subsidiary or business for the period from the beginning of the period to the disposal date
are included in the consolidated income statement; and the cash flow of the subsidiary or business for the
period from the beginning of the reporting period to the disposal date is included in the consolidated cash
flow statement.
21TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
7 Methods for judging control and preparing consolidated financial statements (continued)
(3) Consolidation procedure (continued)
When the Company loses control over the invested party due to disposal of part of the equity investment
or other reasons the remaining equity investment after disposal will be re-measured based on its fair value
by the Company on the date of loss of control. The difference of the sum of the consideration obtained
from the disposal of the equity and the fair value of the remaining equity less the sum of the share of net
assets and goodwill of the original subsidiary that should be enjoyed in accordance with the original share-
holding ratio since the date of acquisition or combination is accounted for the return on investment in the
current period of loss of control. Other comprehensive income or net profits and losses related to the
original subsidiary's equity investment other comprehensive income and other changes in owners' equity
other than profit distribution will be converted into current return on investment when control is lost
except for other comprehensive gains arising from the re-measurement of net liabilities of the Benefit Plan
made by the invested party or changes in net assets.When the equity investment in a subsidiary is disposed of step by step through multiple transactions until
the loss of control when the terms conditions and economic influence of the transactions of the equity
investment in the subsidiary conform to one or more of the following it usually indicates that the multiple
transaction items shall be accounted for as a transaction package:
* These transactions are made simultaneously or with consideration of influence on each other;
* These transactions can only achieve a complete business outcome when they are accounted for
collectively;
* The occurrence of a transaction depends on the occurrence of at least one of the other transactions;
* A transaction is uneconomical individually but is economical when considered collectively with other
transactions.If transactions through which the equity investment in a subsidiary is disposed of until the loss of control
constitute a transaction package the Company will account for such transactions as one transaction
through which the subsidiary is disposed of with the loss of control over it; provided that the difference
between the price for each disposal and the share in the net asset of the subsidiary corresponding to the
investment disposed of before the loss of control is recognized as other comprehensive income in the
consolidated financial statements and is transferred to the profits and losses of the current period in which
the loss of control occurs.When transactions through which the equity investment in a subsidiary is disposed of until the loss of
control do not constitute a transaction package such transactions shall be accounted for i) before the loss
of control in accordance with the relevant policies for partial disposal of an equity investment in a
subsidiary without losing control; and ii) upon the loss of control in accordance with the general
accounting method for disposing of a subsidiary.The difference between the long-term equity investment obtained by the Company through the purchase
of minority interests and the share in the net asset of the subsidiary calculated continuously from the
purchase date (or combination date) based on the new shareholding percentage shall be used to adjust i)
the share capital premium under the capital reserve in the consolidated balance sheet or ii) the retained
earnings if the share capital premium under the capital reserve is insufficient to offset.The difference between the disposal price obtained from the partial disposal of a long-term equity
investment in a subsidiary without losing control and the share corresponding to the long-term equity
investment disposed of in the net asset of the subsidiary calculated continuously from the purchase date or
combination date shall be used to adjust i) the share capital premium under the capital reserve in the
consolidated balance sheet or ii) the retained earnings if the share capital premium under the capital
reserve is insufficient to offset.
22TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
8 Classification of joint arrangements and accounting treatment method for joint operations
(1) Classification of joint arrangements
The Company classifies a joint arrangement as a joint operation or a joint venture according to factors
such as the structure and legal form of the joint arrangement the terms agreed in the joint
arrangement other relevant facts and circumstances.Joint arrangements not reached through independent entities are classified as joint operations; joint
arrangements reached through independent entities are usually classified as joint ventures; however a
joint arrangement that is indicated by conclusive evidence of meeting any of the following conditions
and meeting the provisions of relevant laws and regulations is classified as a joint operation:
* The legal form of the joint arrangement shows that the parties have rights to the assets and
obligations for the liabilities relating to the arrangement.* The contractual terms of the joint arrangement stipulates that the parties have rights to the assets
and obligations for the liabilities relating to the arrangement.* Other relevant facts and circumstances show that the parties have rights to the assets and
obligations for the liabilities relating to the arrangement. For example the parties enjoy all the output
substantially related to the joint arrangement and the repayment of the liabilities relating to the
arrangement continues relying on the support of the parties.
(2) Accounting treatment for joint operation
The Company shall recognize the following items in relation to interest in the joint operation and
carry out accounting treatment in accordance with the provisions of relevant accounting standards for
business enterprises:
* 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.If investing or selling assets (except those that constitute a business) etc. into or to the joint
operation the Company shall only recognize the part of the profit and loss arising from the
transaction attributable to other participants in the joint operation before the assets etc. are sold to a
third party by the joint operation. The Company will recognize in full the asset impairment loss
arising if the assets invested or sold are impaired in compliance with the Accounting Standards for
Business Enterprises No. 8 - Asset Impairment etc.If purchasing assets (except those that constitute a business) etc. from the joint operation the
Company shall only recognize the part of the profit and loss arising from the transaction attributable
to other participants in the joint operation before the assets etc. are sold to a third party by the
Company. The Company will recognize its share of the asset impairment loss arising if the assets
purchased are impaired in compliance with the Accounting Standards for Business Enterprises No. 8
- Asset Impairment etc.The Company does not enjoy joint control over the joint operations. If the Company has rights to the
assets and obligations for the liabilities relating to the joint operation it shall still be accounted for
by the above principles; otherwise it shall be accounted for by the relevant accounting standards for
business enterprises.
23TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
9 Criteria for determining cash and cash equivalents
In the preparation of the cash flow statement the Company recognizes cash holdings and
deposits that can be used for payment at any time as cash.The Company recognizes cash that is easily converted into a known amount with a short holding
period (generally due within three months from the date of purchase) and strong liquidity and
investments with a low risk of changes in value (including investments in bonds which due
within three months while excluding equity investments) as cash equivalents.
10 Foreign currency business and translation of foreign currency statements
(1) Foreign currency transactions
Foreign currency transactions between the Company and its subsidiaries are translated into base
currency at the spot exchange rate on the transaction date.Foreign currency monetary items are translated at the spot exchange rate on the balance sheet
date and the exchange differences resulted therefrom except that the exchange differences
arising from special foreign currency loans related to the acquisition and construction of assets
eligible for capitalization should be treated in accordance with the principle of capitalization of
borrowing costs are all included in the current profit and loss. Foreign currency non-monetary
items measured at historical cost are still translated at the spot exchange rate on the transaction
date and the amount of base currency for bookkeeping is not changed.Foreign currency non-monetary items measured at fair value are translated at the spot exchange
rates on the date when the fair value is determined and the exchange differences resulted
therefrom are included in current profits and losses as a change in fair value. In the case of
foreign currency non-monetary items that are at fair value through other comprehensive income
the exchange differences incurred are included in other comprehensive income.
(2) Translation of foreign currency financial statement
When the Company translates the financial statements of overseas operations the assets and
liabilities in the balance sheet are translated at the spot exchange rate on the balance sheet date.The owner’s equity items except for the "Retained earnings" item are translated at the spot
exchange rate at the time of occurrence of the items. All the incurred items in the income
statement are translated at the current average exchange rate of the period in which transactions
occur. The translation differences of foreign currency financial statements arising from the above
translation are included in other comprehensive income.When disposing of an overseas operation the translation differences in the foreign currency
financial statements related to the overseas operation listed in other comprehensive income in the
balance sheet are transferred from the other comprehensive income to the profit and loss. When
the disposal of a portion of the equity investment or otherwise causes a decrease in the
proportion of equity held in the overseas operation without losing control over the overseas
operation the translation differences in the foreign currency statements related to the part of the
overseas operation disposed of will be attributed to minority interests rather than to the current
profits and losses. When the overseas operation disposes of a portion of the equity of an
associate or joint venture the translation difference of the foreign statements related to the
overseas operation should be transferred to the profit or loss for the period in proportion to the
disposal of the overseas operation.
24TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
11 Financial instruments
When the Company becomes a party to a financial instrument it recognizes a financial asset or
liability.The effective interest method refers to the method of calculating the amortized cost of financial
assets or liabilities and allocating interest income or interest expenses into each accounting
period.The effective interest rate refers to the interest rate used to discount the estimated future cash
flow of a gross amount or financial liability during its expected duration to the book balance of
the gross amount or the amortized cost of the financial liability. When determining the effective
interest rate the expected cash flow is estimated on the basis of considering all contract terms of
financial assets or liabilities (such as prepayment extension call options or other similar
options) but the expected credit loss is not considered.The amortized cost of a financial asset or financial liability is the accumulated amortization
amount formed by deducting the repaid principal from the initial recognition amount of the
financial asset or financial liability adding or subtracting the difference between the initial
recognition amount and the maturity amount by using the effective interest method and then
deducting the accumulated accrued loss reserve (only applicable to financial assets).
(1) Classification and measurement of financial assets
According to the business model of the financial assets under management and the contractual
cash flow characteristics of the financial assets the Company divides the financial assets into the
following three categories:
(a) Financial assets are measured at amortized cost.(b) Financial assets are measured at fair value through other comprehensive income.(c) Financial assets are measured at fair value through profit or loss.Financial assets are measured at fair value when initially recognized but if the accounts or notes
receivable arising from the sale of goods or the provision of services do not contain significant
financing components or do not consider financing components for no more than one year the
initial measurement shall be made at the transaction price.For financial assets measured at fair value through profit or loss transaction expenses are
directly recognized in the current profit and loss. For other financial assets transaction expenses
are included in the initial recognition amount.Subsequent measurement of financial assets depends on their classification. All related financial
assets affected will be reclassified when and only when the Company changes its business model
of managing financial assets.(a) Financial assets are classified as those measured at amortized cost
The contract terms of a financial asset stipulate that the cash flow generated on a specific date is
only the payment of the principal and the interest on the amount of outstanding principal and the
business model for managing the financial asset is to collect the contractual cash flow then the
Company classifies the financial asset as measured at amortized cost. Financial assets of the
Company that are classified as those measured at amortized cost include monetary assets notes
receivable accounts receivable other receivables long-term receivables debt investments etc.
25TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
11 Financial instruments (continued)
(1) Classification and measurement of financial assets (continued)
(a) Financial assets classified as those measured at amortized cost (continued)
The Company recognizes interest income from such financial assets with the effective interest
method and carries out subsequent measurement at amortized cost. Gains or losses arising from
impairment or derecognition or modification are included in current profits and losses. The
Company calculates and determines the interest income based on the book balance of financial
assets multiplied by the effective interest rate except for the following circumstances:
* For purchased or originated credit-impaired financial assets the Company calculates and
determines their interest income at the amortized cost of the financial assets and the credit-
adjusted effective interest rate since the initial recognition.* For financial assets not credit-impaired at the time of being purchased or originated but in the
subsequent period the Company calculates and determines their interest income at the amortized
cost and the effective interest rate of the financial assets in the subsequent period. If the financial
instrument is no longer credit-impaired due to the improvement of its credit risk in the
subsequent period the Company calculates and determines the interest income by multiplying
the effective interest rate by the book balance of the gross amount.(b) Financial assets are classified as those measured at fair value through other comprehensiveincome
The contract terms of a financial asset stipulate that the cash flow generated on a specific date is
only the payment of the principal and the interest on the amount of outstanding principal and the
business model for managing the financial assets is both to collect contractual cash flow and for
its sale then the Company classifies the financial assets as measured at fair value through other
comprehensive income.The Company recognizes interest income from such financial assets with the effective interest
method. Except that the interest income impairment loss and exchange difference are
recognized as the current profit and loss other changes in fair value are included in other
comprehensive income. When the financial asset is derecognized the accumulated gains or
losses previously included in other comprehensive income are transferred out and included in
current profits and losses.Notes and accounts receivable measured at fair value through other comprehensive income are
reported as receivables financing and such other financial assets are reported as other debt
investments. Among them other debt investments maturing within one year from the balance
sheet date are reported as the current portion of non-current assets and other debt investments
maturing within one year are reported as other current assets.
26TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
11 Financial instruments (continued)
(1) Classification and measurement of financial assets (continued)
(c) Financial assets designated as measured at fair value through other comprehensive income
At the time of initial recognition the Company may irrevocably designate non-trading equity
instrument investments as financial assets measured at fair value through other comprehensive
income on the basis of individual financial assets.Changes in the fair value of such financial assets are included in other comprehensive income
without allowance for impairment. When the financial asset is derecognized the accumulated
gains or losses previously included in other comprehensive income are transferred out and
included in the retained earnings. During the investment period when the Company holds the
equity instrument the dividend income is recognized and included in the current profit and loss.When the Company's right to receive dividends has been established the economic benefits
related to dividends are likely to flow into the Company and the amount of dividends can be
measured reliably. The Company reports such financial assets under the item of investments in
other equity instruments.An investment in equity instruments is a financial asset measured at fair value through current
profits and losses when it is obtained mainly for recent sale or is part of the identifiable portfolio
of financial assets centrally managed when initially recognized and objective evidence exists for
a short-term profit model in the near future or is a derivative (except for derivatives defined as
financial guarantee contracts and designated as effective hedging instruments).(d) Financial assets classified as those measured at fair value through profit or loss
If failing to be classified as those measured at amortized cost or at fair value through other
comprehensive income or not designated as measured at fair value through other comprehensive
income financial assets are all classified as those measured at fair value through profit or loss.The Company carries out subsequent measurement of such financial assets at fair value and
includes gains or losses arising from changes in fair value as well as dividends and interest
income associated with such financial assets into current profits and losses.The Company reports such financial assets as held-for-trading financial assets and other non-
current financial assets according to their liquidity.
27TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
11 Financial instruments (continued)
(1) Classification and measurement of financial assets (continued)
(e) Financial assets designated as measured at fair value through current profits and losses
At the time of initial recognition the Company may irrevocably designate financial assets as
measured at fair value through current profits and losses on the basis of individual financial
assets in order to eliminate or significantly reduce accounting mismatches.If the mixed contract contains one or more embedded derivative instruments and its main
contract is not any financial asset as above the Company may designate the whole of the mixed
contract as a financial instrument measured at fair value through current profits and losses.Except under the following circumstances:
* Embedded derivatives do not significantly change the cash flow of mixed contracts.* When determining initially whether similar mixed contracts need to be split it is substantially
clear that embedded derivatives contained in them should not be split without analysis. If the
prepayment right embedded in a loan allows the holder to prepay the loan at an amount close to
the amortized cost the prepayment right does not need to be split.The Company carries out subsequent measurement of such financial assets at fair value and
includes gains or losses arising from changes in fair value as well as dividends and interest
income associated with such financial assets into current profits and losses.The Company reports such financial assets as held-for-trading financial assets and other non-
current financial assets according to their liquidity.
28TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
11 Financial instruments (continued)
(2) Classification and measurement of financial liabilities
The Company classifies a financial instrument or its components into financial liabilities or
equity instruments upon initial recognition according to the contract terms and the economic
substance reflected by the financial instrument issued rather than only in legal form in
combination with the definitions of financial liabilities and equity instruments. Financial
liabilities are classified at initial recognition as measured at fair value through profit or loss or
other financial liabilities or derivatives designated as effective hedging instruments.Financial liabilities are measured at fair value upon initial recognition. For financial liabilities
measured at fair value through current profits and losses relevant transaction expenses are
directly included in current profits and losses; for other categories of financial liabilities relevant
transaction expenses are included in the initial recognition amount.Subsequent measurement of financial liabilities depends on their classification:
(a) Financial liabilities measured at fair value through current profits and losses
Such financial liabilities include held-for-trading financial liabilities (including derivatives
falling under financial liabilities) and financial liabilities designated as measured at fair value
upon initial recognition and through current profits and losses.A financial liability is a held-for-trading financial liability if it is mainly undertaken for recent
sale or repurchase or is part of the identifiable portfolio of financial instruments centrally
managed and there is objective evidence that the enterprise has recently employed a short-term
profit model or is a derivative instrument except for derivatives designated as effective hedging
instruments and derivatives conforming to financial guarantee contracts. Held-for-trading
financial liabilities (including derivatives falling under financial liabilities) are subsequently
measured at fair value. All changes in fair values except for hedging accounting are included in
current profits and losses.The Company irrevocably designates financial liabilities as measured at fair value through
current profits and losses at the time of initial recognition in order to provide more relevant
accounting information provided:
* Such financial liabilities can eliminate or significantly reduce accounting mismatches.* The financial liability portfolio or the portfolio of financial assets and liabilities is managed
and evaluated for performance on the basis of fair value according to the enterprise risk
management or investment strategy stated in the official written documents and is reported to
key management personnel within the enterprise on this basis.The Company subsequently measures such financial liabilities at fair value. Apart from changes
in fair value that are brought about by changes in the Company’s own credit risk and included in
other comprehensive income other changes in fair value are included in current profits and
losses. Unless including such changes in other comprehensive income will cause or expand
accounting mismatch in profit or loss the Company will include all changes in fair value
(including the amount affected by changes in its own credit risk) in current profits and losses.
29TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
11 Financial instruments (continued)
(2) Classification and measurement of financial liabilities (continued)
(b) Other financial liabilities
The Company classifies financial liabilities except for the following items as measured at
amortized cost. Such financial liabilities are recognized by the effective interest method and
subsequently measured at amortized cost. Gains or losses arising from derecognition or amortization
are included in current profits and losses:
* Financial liabilities measured at fair value through current profits and losses.* Financial liabilities resulting from the transfer of financial assets that do not meet the conditions
for derecognition or continue to be involved in the transferred financial assets.* Financial guarantee contracts that do not fall under the first two categories hereof and loan
commitments that do not fall under category (1) hereof and lend at a below-market interest rate.Financial guarantee contracts refer to contracts that require the issuer to pay a specific amount to the
contract holder who has suffered losses when a specific debtor fails to pay the debt in accordance
with the original or modified terms of the debt instrument. Financial guarantee contracts that are not
financial liabilities designated as measured at fair value through profit or loss are measured after
initial recognition according to the loss reserve amount and the initial recognition amount less the
accumulated amortization amount during the guarantee period whichever is higher.
(3) Derecognition of financial assets and liabilities
(a) Financial assets are derecognized i.e. written off from their account and balance sheet if any of thefollowing conditions is met:
* The contractual right to receive cash flow from the financial asset is terminated; or
* The financial asset has been transferred which meets the requirements for derecognition of
financial assets.(b) Conditions for derecognition of financial liabilities
If the current obligation of a financial liability (or part thereof) has been discharged such financial
liability (or part thereof) is derecognized.The existing financial liability is derecognized with a new one recognized and the difference
between the carrying amount and the consideration paid (including transferred non-cash assets or
assumed liabilities) is included in current profits and losses if an agreement is signed between the
Company and the lender to replace the existing financial liability by assuming a new one and the
contract terms of these two financial liabilities are substantially different or the contract terms of
the existing financial liability (or part thereof) are substantially modified.If the Company repurchases part of a financial liability the carrying amount of the financial liability
shall be distributed according to the proportion of the fair value of the continuing recognition
portion and the derecognition portion to the overall fair value on the repurchase date. The difference
between the carrying amount allocated to the derecognized portion and the consideration paid
(including transferred non-cash assets or liabilities assumed) shall be included in current profits and
losses.
30TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
11 Financial instruments (continued)
(4) Recognition basis and measurement method of financial asset transfer
When a financial asset is transferred the Company evaluates the risks and rewards retained of the
financial asset ownership:
(a) If almost all the risks and rewards of the financial asset ownership are transferred such financial
asset shall be derecognized and the rights and obligations generated or retained in the transfer shall
be separately recognized as assets or liabilities.(b) If risks and rewards of the financial asset ownership are substantially retained such financial assetshall continue to be recognized.(c) In circumstances where the Company neither transfers nor retains risks and rewards of the financial
asset ownership substantially (i.e. circumstances other than * and * of this article) based on
whether it retains control over such financial asset:
* The financial asset shall be derecognized and the rights and obligations generated or retained in
the transfer shall be separately recognized as assets or liabilities if such control is not retained; or
* The relevant financial asset shall continue to be recognized to the extent that it continues to be
involved in the transferred financial asset and the relevant liabilities shall be recognized
accordingly if such control is retained. The extent that it continues to be involved in the transferred
financial asset refers to the extent the Company bears the risks or rewards of changes in the value of
the transferred financial asset.When judging whether the transfer of financial assets meets the above conditions for derecognition
of financial assets the principle of substance over form shall be adopted. The Company divides the
transfer of financial assets into overall transfer and partial transfer.(a) If the overall transfer of financial assets meets the conditions for derecognition the differencebetween the following two amounts shall be included in the current profits and losses:
* The carrying amount of the transferred gross amount on the date of derecognition.* The sum of the consideration received for the transfer of financial assets and the amount of the
respective derecognized portion of the accumulated changes in fair value originally included in
other comprehensive income directly (the financial assets involved in the transfer are financial
assets at fair value through other comprehensive income).(b) If the financial asset is partially transferred and the transferred part meets the conditions for
derecognition the carrying amount of the gross amount before transfer shall be allocated between
the derecognition portion and the continuing recognition portion (in this case the retained service
asset shall be regarded as the continuing recognition part of the financial asset) according to the
respective relative fair values on the transfer date and the difference between the following two
amounts shall be included in the current profits and losses:
* The carrying amount of the derecognized portion on the derecognition date.* The sum of the consideration received for the derecognized portion and the amount of the
corresponding derecognized portion of the accumulated changes in fair value originally included in
other comprehensive income (the financial assets involved in the transfer are financial assets at fair
value through other comprehensive income).
31TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
11 Financial instruments (continued)
(4) Recognition basis and measurement method of financial asset transfer (continued)
If the transfer of a financial asset does not meet the conditions for derecognition the financial
asset shall continue to be recognized and the consideration received shall be recognized as a
financial liability.
(5) Determination of fair value of financial assets and liabilities
The fair value of a financial asset or liability with an active market shall be determined by the
quoted price in the active market unless the financial asset has a sell-off period for the asset itself.For the financial assets restricted for the assets themselves the compensation amount demanded
by market participants due to the risk of not being able to sell the financial assets on the open
market within the specified period shall be deducted from the quoted price in the active market.Quoted prices in the active market include those for related assets or liabilities that can be easily
and regularly obtained from exchanges dealers brokers industry groups pricing or regulatory
agencies and can represent actual and recurring market transactions on the basis of fair trade.Financial assets initially acquired or derived or financial liabilities assumed shall be determined on
the basis of market transaction price.The fair value of financial assets or liabilities without an active market shall be determined by
valuation techniques. At the time of valuation the Company adopts valuation techniques that are
applicable under the current circumstances and are supported by sufficient available data and other
information selects input values consistent with the characteristics of relevant assets or liabilities
considered by market participants in the transactions thereof and gives priority to the use of
relevant observable input values whenever possible. If the relevant observable input value cannot
be obtained or be feasibly obtained the unobservable input value shall be used.Based on the expected credit loss the Company conducts impairment accounting of financial
assets classified as those measured at amortized cost financial assets classified as those measured
at fair value through other comprehensive income and financial guarantee contracts and
recognizes loss reserves.
32TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
11 Financial instruments (continued)
(6) Impairment of financial instruments
Expected credit loss refers to the weighted average of the credit losses of financial instruments
weighted by the risk of default. Credit loss refers to the difference between all contractual cash
flows discounted at the original effective interest rate and receivable according to the contract and
all cash flows expected to be collected by the Company i.e. the present value of all cash shortfalls.Among them credit-impaired purchased or originated financial assets of the Company shall be
discounted at the credit-adjusted effective interest rate of such financial assets.For receivables arising from transactions regulated by the income criteria the Company uses the
simplified measurement method to measure the loss reserve according to the amount equivalent to
the expected credit loss during the entire duration.For credit-impaired purchased or originated financial assets only the accumulated changes in the
expected credit losses during the entire duration since the initial recognition are recognized as loss
reserves on the balance sheet date. On each balance sheet date the amount of change in the
expected credit loss during the entire duration is included in the current gains and losses as
impairment loss or gains. Even if the expected credit loss during the entire duration on the balance
sheet date is less than that reflected in the estimated cash flow upon initial recognition the
favorable change in the expected credit loss is recognized as impairment gains.In addition to other financial assets adopting the above simplified measurement method and other
than the credit-impaired purchased or originated ones the Company evaluates whether the credit
risk of relevant financial instruments has increased significantly since the initial recognition
measures its loss reserves and recognizes the expected credit loss and its changes respectively
according to the following circumstances on each balance sheet date:
(a) If the credit risk of the financial instrument has not increased significantly since its initial
recognition it is in the first stage and its loss reserve shall be measured according to an amount
equivalent to its expected credit loss over the next 12 months and the interest income shall be
calculated according to the book balance and the effective interest rate.(b) If the credit risk of the financial instrument has increased significantly since initial recognition but
no credit impairment has occurred it is in the second stage and its loss reserve shall be measured
according to an amount equivalent to its expected credit loss throughout its life and the interest
income shall be calculated according to the book balance and the effective interest rate.(c) If the financial instrument is credit-impaired since its initial recognition it is in the third stage and
the Company shall measure its loss reserve according to an amount equivalent to its expected
credit loss throughout its life and calculate the interest income at the amortized cost and the
effective interest rate.The increase or reversed amount of the credit loss reserve for financial instruments shall be
included in the current profits and losses as impairment loss or gains. Except for financial assets
classified as those measured at fair value through other comprehensive income the credit loss
reserve will offset the carrying amount of the financial assets. For financial assets classified as
those measured at fair value through other comprehensive income the Company recognizes its
credit loss reserve in other comprehensive income without reducing its carrying amount presented
in the balance sheet.
33TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
11 Financial instruments (continued)
(6) Impairment of financial instruments (continued)
In the previous accounting period the Company measured the loss reserve the amount equivalent
to the expected credit loss of the financial instruments throughout their life. However on the
balance sheet date of the current period the financial instrument no longer conforms to the
situation of significant increase in credit risk since initial confirmation; on the balance sheet date
of the current period the Company has measured the loss reserve of the financial instruments the
amount equivalent to the expected credit loss in the next 12 months and the reversed amount of
the loss reserve thus formed is included in current profits and losses as impairment profit.(a) Significant increase in credit risk
In order to determine whether the credit risk of financial instruments has increased significantly
since the initial recognition the Company uses the available reasonable and based forward-
looking information and compares the risk of default of financial instruments on the balance sheet
date with the risk of default on the initial confirmation date. When the Company applies
provisions on depreciation of financial instruments to financial guarantee contracts the initial
recognition date shall be regarded as the date when the Company becomes a party to make
irrevocable commitments.For the assessment of whether the credit risk has increased significantly the Company will
consider the following factors:
* According to whether the actual or expected debtor's operations results have changed
significantly;
* Whether the regulatory economic or technological environment of the debtor has undergone
significant adverse changes;
* Whether the following items have changed significantly: the value of collateral as debt
mortgage or the guarantee provided by a third party or the quality of credit enhancement; these
changes will reduce the debtor’s economic motivation to repay the loan within the time limit
stipulated in the contract and could impact the probability of default;
* Whether the debtor's expected performance and repayment behavior have changed
significantly;
* Whether the Company's credit management methods for financial instruments have changed
etc.If on the balance sheet date the credit risk of the financial instrument is judged to be low by the
Company the Company assumes that the credit risk of the financial instrument has not increased
significantly since the initial recognition. The financial instrument will be deemed to have lower
credit risk under the following circumstances: the default risk of the financial instrument is lower;
the borrower has a strong capacity to fulfill its contractual cash flow obligations in a short time;
furthermore even if there are adverse changes in the economic situation and operating
environment for a long period of time it may not necessarily reduce the borrower’s ability to
fulfill its contractual cash flow obligations.
34TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
11 Financial instruments (continued)
(6) Impairment of financial instruments (continued)
(b) Financial assets with depreciation of credit
If one or more events have adverse effects on the expected future cash flow of a financial asset the
financial asset will become a financial asset that has suffered credit impairment. The following
observable information can be regarded as evidence of credit impairment of financial assets:
* The issuer or debtor is in serious financial difficulty;
* The debtor breaches the contract such as default or overdue payment of interest or principal etc.;
* The creditor gives concessions to the debtor due to economic or contractual considerations related to
the debtor's financial difficulties; the concessions will not be made under any other circumstances;
* There is a great possibility of bankruptcy or other financial restructuring of the debtor;
* The issuer or debtor has financial difficulties resulting in the disappearance of the active market for
the financial assets;
* Purchasing or generating a financial asset with a large discount which reflects the fact of credit loss.Credit impairment of financial assets may not be caused by separately identifiable events but may be
caused by the combined effect of multiple events.(c) Determination of expected credit loss
The expected credit losses of financial instruments are assessed individually and collectively. During the
assessment of the expected credit losses the Company will take into account reasonable and reliable
information about past events the current situation and the future economic situation forecast.The Company divides financial instruments into different combinations on the basis of common credit
risk characteristics. Common credit risk characteristics adopted by the Company include: financial
instrument type credit risk rating aging combination overdue aging combination contract settlement
cycle debtor's industry etc. To understand the individual evaluation criteria and combined credit risk
characteristics of relevant financial instruments please refer to the accounting policies of relevant
financial instruments for details.The Company adopts the following methods to determine the expected credit losses of relevant financial
instruments:
* In terms of financial assets credit loss is equivalent to the present value of the difference between the
contract cash flow that the Company shall receive and the expected cash flow.* In terms of the financial guarantee contract credit loss is equal to the expected amount of payment
made by the Company to the holder of the contract for credit loss incurred less the present value of the
difference between the amount expected to be collected from the holder of the contract the debtor or
any other party.* If on the balance sheet date a financial asset has suffered credit impairment but one does not
purchase or generate a financial asset that has suffered credit impairment the credit loss is equivalent to
the difference between the book balance of the gross amount and the present value of the estimated
future cash flow discounted at the original actual interest rate.Factors reflected in the Company's method of predicting credit losses by quantitative finance tools
include: unbiased probability weighted average amount determined by evaluating a series of possible
results; time value of money; reasonable and reliable information about past events current situation and
future economic situation forecast that can be obtained on the balance sheet date without unnecessary
extra costs or efforts.
35TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
11 Financial instruments (continued)
(6) Impairment of financial instruments (continued)
(d) Write-off of financial assets
If the Company cannot reasonably expect the contract cash flow of the financial asset to be fully or
partially recovered the book balance of the gross amount will be written off directly. This write-off
constitutes the derecognition of relevant financial assets.
(7) Offset of financial assets and financial liabilities
In the balance sheet financial assets and financial liabilities are shown separately without offsetting
each other. However if the following conditions are met at the same time the net amount after
offset will be listed in the balance sheet:
(a) The Company has the legal right which is currently enforceable to offset the confirmed amount;
(b) The Company plans to settle on a net basis or realize the financial assets and settle the financialliabilities at the same time.
12 Notes receivable
For the determination method and accounting treatment method of the Company's expected credit
loss on notes receivable please refer to 11(6) of Note III Impairment of financial instruments.If sufficient evidence of expected credit loss cannot be evaluated at a reasonable cost at the level of
a single instrument the Company will refer to the experience of historical credit loss combine the
current situation and judgment on the future economic situation divide notes receivable into several
combinations according to the characteristics of credit risk and calculate expected credit loss on the
basis of combinations.
13 Accounts receivable
For the determination method and accounting treatment method of the Company's expected credit
loss on accounts receivable please refer to 11(6) of Note III Impairment of financial instruments.As for the accounts receivable if there is objective evidence that the Company will not be able to
recover the money according to the original terms of the accounts receivable the Company will
separately determine its credit loss.If sufficient evidence of expected credit loss cannot be assessed at a reasonable cost at the level of
single instrument the Company will divide the accounts receivable into several combinations
according to the credit risk characteristics and calculate the expected credit loss on the basis of the
combinations (with reference to the experience of historical credit loss and in combination with the
current situation with the judgment of the future economic situation)
36TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
14 Receivables financing
Accounts receivable classified as those measured at fair value through other comprehensive
income with a maturity of i) less than one year (including one year) from the initial recognition
date are listed as receivables financing; or ii) more than one year from the initial recognition date
are listed as other debt investments. For the relevant accounting policies please refer to 11(6) of
Note III Impairment of financial instruments.
15 Other receivables
For the determination method and accounting treatment method of the Company's expected credit
loss of other receivables please refer to 11(6) of Note III Impairment of financial instruments.For other receivables for which there is objective evidence that the Company will not be able to
recover the amount according to the original terms of the receivables the Company will separately
determine its credit loss.If sufficient evidence of expected credit loss cannot be evaluated at a reasonable cost at the level
of a single instrument the Company will refer to the experience of historical credit loss combine
the current situation and judgment on the future economic situation divide other receivables into
several combinations according to the characteristics of credit risk and calculate expected credit
loss on the basis of combinations.
16 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
When acquired inventory is initially measured at cost including purchase costs processing costs
and other costs. Inventories are shipped in transit by the weighted average method.
37TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
16 Inventories (continued)
(3) Basis for determining the net realizable value of inventories and accrual method for inventoryvaluation allowance
After conducting a comprehensive counting at the end of the period inventory valuation
allowance shall be accrued or adjusted based on whichever is lower of the cost and net realizable
value of the inventories. For inventories of goods directly used for sale such as finished goods
merchandise inventories and materials for sale in the normal production and operations process
the net realizable value is determined by the amount of the estimated Sales expenses of the
inventory less the estimated sales cost and relevant taxes and fees; for material inventories that
need to be processed in the normal production and operations process the net realizable value is
determined by the amount of the estimated selling expenses of finished products produced less the
estimated cost occurred at the time of completion the estimated selling expenses and related taxes;
for inventories held for the execution of sales contracts or labor contracts the net realizable value
is calculated on the basis of the contract price and if the quantity of inventories held is more than
the quantity specified in sales contracts the net realizable value of excess inventories is calculated
based on the general sales price.At the end of the period inventory valuation allowance is accrued according to individual
inventory items; but for a large number of inventories with lower unit prices inventory valuation
allowance is accrued according to inventory category; for inventories related to the product series
produced and sold in the same region with the same or similar end use or purpose which is
difficult to measure separately from other items thus inventory valuation allowance is accrued and
combined with other items.If the influencing factors of the write-down of inventory value have disappeared the amount
written-down is recovered and reversed to the amount of inventory valuation allowance already
accrued and the amount reversed is included in current profits and losses.
(4) Inventory system
The Company adopts a perpetual inventory system for inventory management.
(5) Amortization method of turnover materials
The Company's turnover materials are amortized by the one-time amortization method.
17 Contract assets
A contract asset shall be recognized if the Company has transferred the goods to the customer and
has the right to receive a consideration depending on other factors than the passage of time. The
right of the Company to unconditionally receive the considerations from customers (i.e. only
depending on the passage of time) is listed independently as receivables.For the determination method and accounting treatment method of the Company’s expected credit
loss on contract assets please refer to 11(6) of Note III Impairment of financial instruments.
38TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
18 Held-for-sale non-current assets or disposal groups
(1) Criteria for classification as being held for sale
The Company recognizes non-current assets or disposal groups that meet both of the following
conditions as components held for sale:
* 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 likely to occur that is the Company has made a resolution on the sale plan obtained
the approval from the regulatory authorities (if applicable) and obtained a confirmed purchase
commitment that the sale is expected to be completed in one year.The confirmed purchase commitment refers to a legally binding purchase agreement concluded by
and between the Company and another party which contains important terms such as transaction
price time and sufficiently severe penalty for breach of contract so that there will be little possibility
of major adjustments to or cancellation of the agreement.
(2) Accounting treatment for held-for-sale assets
The Company shall not depreciate or amortize non-current assets or disposal groups held for sale. If
the carrying amount is higher than the amount of fair value net of selling expenses the former shall
be written down to the latter. The amount written down shall be recognized as asset impairment loss
and included in the current profit and loss and the impairment allowance for assets held for sale shall
be accrued at the same time.The non-current asset or disposal group classified as being held for sale on the date of acquisition
shall be initially measured at whichever initially measured amount is lower under the assumption that
it is not classified as being held for sale and the amount of fair value net of selling expenses.The above principles are applicable to all non-current assets except Investment property
subsequently measured by the fair value model biological assets measured by the amount of fair
value net of selling expenses assets formed by employee compensation deferred income tax assets
financial assets regulated by the relevant accounting standards of financial instruments and rights
arising from insurance contracts regulated by the relevant accounting standards of insurance
contracts.
19 Debt Investments
For the determination method and accounting treatment methods of the Company’s expected
credit loss of debt investments please refer to 11(6) "Impairment of financial instruments" under
Note III.
20 Long-term receivables
For the determination method and accounting treatment method of the Company's expected credit
loss on long-term receivables please refer to 11(6) of Note III Impairment of financial instruments.If sufficient evidence of expected credit loss cannot be evaluated at a reasonable cost at the level of a
single instrument the Company will refer to the experience of historical credit loss combine the
current situation and judgment on future economic situations divide long receivables into several
combinations according to the characteristics of credit risk and calculate expected credit loss on the
basis of combinations.
39TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
21 Long-term equity investments
(1) Recognition of initial investment cost
(a) Long-term equity investment formed by business combination
For details on accounting policies please refer to "6 accounting treatments for business
combinations involving enterprises under and not under common control" under Note III.(b) Long-term equity investment acquired by other means
For long-term equity investment acquired by cash payment the actual acquisition price is
recognized as initial investment cost. The initial investment cost includes expenses taxes and
other necessary expenses directly related to the acquisition of the long-term equity investment.For long-term equity investment acquired by issuing equity securities the fair value of equity
securities issued is recognized as the initial investment cost; the transaction costs arising from
issuing or acquiring the own equity instruments of the acquirer will be offset from the equity in
directly attributable transactions.Provided that the non-monetary asset exchange contains commercial substance and the fair value
of the assets received or assets surrendered can be reliably measured the initial investment cost
of the long-term equity investment received with non-monetary assets is determined based on the
fair value of the assets surrendered except that there is conclusive evidence that indicates that
the fair value of assets received is more reliable. For non-monetary assets that do not satisfy the
above condition the carrying amount of assets surrendered and related taxes and fees payable are
recognized as the initial investment cost of the long-term equity investment.The initial investment cost of a long-term equity investment acquired by debt restructuring is
determined on the basis of fair value.For methods of impairment test and accrual of provision for impairment for long-term equity
investments please refer to "28 Impairment on long-term assets" under Note III.
40TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
21 Long-term equity investments (continued)
(2) Subsequent measurement and recognition of profit and loss
(a) Cost method
The long-term equity investment by which the Company exercises control over the investee is
accounted for by the cost method and measured at the initial investment cost. When the long-term
equity investment is added or recovered its cost should be adjusted thereby.In addition to the actual payment or the cash dividends or profits included in the consideration that
have been declared but not yet paid when acquiring the investment the Company recognizes the
investment income for the period the investee's cash dividends or profits attributable to the Company
will be recorded in gains from investment for the period.(b) Equity method
The long-term equity investments made by the Company in affiliates and joint ventures are accounted
for using the equity method. Among them the portion of equity investments in affiliates held
indirectly through venture capital mutual funds trusts or similar entities including investment-
linked insurance funds are measured at fair value through profit or loss.The difference between the higher initial cost of the long-term equity investment and the fair value
share of identifiable net assets of the investee enjoyed in the investment is not used to adjust the
initial investment cost of the long-term investment; the difference between the lower initial
investment cost and the higher fair value share of identifiable net assets of the investee enjoyed at the
time of conducting the investment is included in current profits and losses.After the Company acquires a long-term equity investment the investment income and other
comprehensive income should be recognized respectively based on the Company's share in the net
profits and loss and other comprehensive income realized by the investee and the carrying amount of
the long-term equity investment should be adjusted accordingly; the Company's share in the profits or
cash dividends declared by the investee should be calculated and the carrying amount of the long-
term equity investment should be reduced accordingly; the carrying amount of the long-term equity
investment should be adjusted based on changes in owners' equity of the investee other than net
profits and loss other comprehensive income and profit distribution and included in owners' equity.Before the Company recognizes its share in the net profits and loss of the investee the net profits of
the investee are adjusted based on the fair value of the identifiable assets of the investee as at the
acquisition of the investment. Any unrealized profit and loss from internal transactions between the
Company and its affiliates or joint ventures attributed to the Company based on the Company's will
be offset and the investment profit and loss is recognized thereon.When the Company recognizes its share in the losses incurred by the investee the Company should
firstly offset the carrying amount of the long-term equity investment. Then if the carrying amount of
the long-term equity investment is insufficient for the offset the investment loss continues to be
recognized and the carrying amount of long-term receivable items is offset subject to other carrying
amounts of the long-term equity constituting the net investment in the investee. Finally after the
above-mentioned treatment if the Company still bears additional obligations in accordance with the
investment contract or agreement the provisions are recognized according to the estimated liabilities
and included in the current investment losses.If the investee realizes profit in the future period the Company shall after deducting the unconfirmed
loss share conduct the process in the reverse order of the above to write down the book balance of
the recognized estimated liabilities and recover other long-term equity that substantially constitutes
net investment of the investee and the carrying amount of the long-term equity and then recover the
recognition of the profit as return on investment.
41TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
21 Long-term equity investments (continued)
(3) Conversion accounting treatment of long-term the equity investments
(a) Accounting treatment for the transfer from fair value measurement to equity method
For an equity investment originally held by the Company without control joint control or significant impact
on the investee that is accounted for based on the financial instrument recognition and measurement standards
if as a result of additional investment or otherwise the equity investment enables the Company to exercise
significant impact on or joint control (rather than control) over the investee the sum of the fair value of the
originally held equity investment determined under the Accounting Standards for Business Enterprises No. 22
- Recognition and Measurement of Financial Instruments and the new investment cost should be deemed as
the initial cost of the investment accounted for using equity method.The difference between the lower initial investment cost accounted for using the equity method and the higher
share of the fair value of the identifiable net assets of the investee as at the date of the additional investment
calculated based on the new shareholding percentage (%) after the additional investment is made shall be
used to adjust the carrying amount of the long-term equity investment and included in the non-operating
income for the period.(b) Transfer from fair value measurement or equity method to cost method
For an equity investment originally held by the Company without control joint control or significant impact
on the investee that is accounted for based on the financial instrument recognition and measurement standards
or a long-term equity investment originally held by the Company in an affiliate or joint venture if as a result
additional investment or for other reasons the investment enables the Company to exercise control over an
investee that is not under the common control with Company the sum of the carrying amount of the originally
held equity investment and the new investment cost should be should be the initial cost of the investment
accounted for using cost method in preparation of the individual financial statements of the Company.The other comprehensive income recognized in equity investments using the equity method before the date of
acquisition is accounted for when the investment is disposed of on the same basis as those the investee
adopted directly to dispose of the underlying assets or liabilities.If the equity investment held before the acquisition date is subject to the accounting treatment under the
relevant provisions of the Accounting Standards for Business Enterprises No. 22 - Recognition and
Measurement of Financial Instruments the cumulative changes in fair value originally included in other
comprehensive income should be transferred to the profit or loss for the period when the investment is
accounted for using the cost method.(c) Transfer from equity method to fair value measurement
If the Company loses joint control or significant impact on the investee due to the disposal of part of the
equity investment or otherwise the equity remaining after the disposal should be accounted for under the
Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial
Instruments and the difference between the fair value and carrying amount as at the date of losing the joint
control or significant impact should be included in current profits and losses.Other comprehensive income recognized for the original equity investment accounted for using equity method
should be accounted for on the same basis as the direct disposal of the underlying assets or liabilities by the
investee when the equity method is terminated.(d) Transfer from cost method to equity method
Where the Company loses control over the investee due to the disposal of part of the equity investment or
otherwise if the equity remaining after the disposal by which the Company can exercise joint control or
significant impact on the investee in preparation of the individual financial statements of the Company the
investment will be accounted for using the equity method and such remaining equity will be adjusted as if it
were accounted for using the equity method from the time when it is acquired.
42TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
21 Long-term equity investments (continued)
(3) Conversion accounting treatment of long-term equity investments (continued)
(e) Transfer from cost method to fair value measurement
If the Company loses control over the investee due to the disposal of part of the equity investment
or otherwise the equity remaining after the disposal by which the Company cannot exercise joint
control or significant impact on the investee should be accounted for based on the Accounting
Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial
Instruments in preparation of the individual financial statements of the Company and the
difference between the fair value and carrying amount as at the date of losing the control should be
included in current profits and losses.
(4) Disposal of long-term equity investments
When a long-term equity investment is disposed of the difference between the carrying amount of
the long-term equity investment and the actual acquisition price shall be included in current profits
and losses. For a long-term equity investment accounted for using the equity method when the
investment is disposed of the part originally included in other comprehensive income should be
accounted for in the corresponding proportion and on the same basis as the direct disposal of the
underlying assets or liabilities by the investee.When the terms conditions and economic influence of transactions of the equity investment of the
subsidiary conform to one or more of the following accounting for multiple transactions is treated
as a package transaction:
(a) These transactions are made simultaneously or with consideration of influence on each other;
(b) These transactions can only achieve a complete business outcome when they are accounted for
collectively;
(c) The occurrence of a transaction depends on the occurrence of at least one of the other transactions;
(d) A transaction is uneconomical individually but is economical when considered collectively with
other transactions.When an enterprise loses control over the original subsidiary due to disposal of part of the equity
investment or other reasons if the transactions do not belong to a package transaction the
accounting treatment of individual financial statements and consolidated financial statements should
be distinguished as follows:
(a) In the individual financial statements the disposed equity should be accounted for in accordance
with the Accounting Standards for Business Enterprises No. 2 - Long-Term Equity Investment;
meanwhile the remaining equity should be recognized as long-term equity or other related financial
assets based on its carrying amount. If the remaining equity after disposal can be used to exercise
common control or significant influence on the original subsidiary it shall be accounted for in
accordance with the relevant provisions on the conversion of the cost method into the equity
method.
43TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
21 Long-term equity investments (continued)
(4) Disposal of long-term equity investments (continued)
(b) In the consolidated financial statements the remaining equity should be remeasured in accordance with
its fair value on the date of loss of control. The difference between the sum of the consideration acquired
from the disposal of the equity and the fair value of the remaining equity less the share of net assets of
the original subsidiary that should be enjoyed in accordance with the original shareholding ratio from the
date of acquisition is included in the current profit and loss of the period in which loss of control
occurred. Other comprehensive income related to the original subsidiary's equity investment should be
converted into current return on investment when control is lost. The Company shall disclose in the notes
the fair value of the remaining equity after disposal on the date of loss of control and the amount of
relevant gains or losses arising from the disposal remeasured based on the fair value.If the transactions of disposal of equity investment in a subsidiary until the loss of control are a package
transaction the accounting treatment of individual financial statements and consolidated financial
statements should be distinguished as follows:
(a) In the individual financial statements the difference between each disposal price and the carrying
amount of the long-term equity investment corresponding to the disposed equity before the loss of
control is recognized as other comprehensive income and transferred to the current profit and loss of the
period in which the loss of control occurred;
(b) In the consolidated financial statements the difference between each disposal price and the disposal of
investment corresponding to the share of the net assets of the subsidiary before the loss of control is
recognized as other comprehensive income and transferred to the current profit and loss of the period in
which the loss of control occurred.
(5) Criteria for judgment of joint control and significant impact
If the Company exerts joint control over an arrangement with other participants in accordance with the
relevant agreement and decision on activities that has a significant impact on the return of the
arrangement requires the unanimous consent of the participants sharing the control the Company and
other participants will be deemed to have joint control over the arrangement - a joint venture
arrangement.If a joint venture arrangement is entered into through an independent entity and the Company has rights
over the net assets of the independent entity based on the relevant agreements the independent entity
shall be deemed as a joint venture and accounted for using the equity method. If based on the relevant
agreement the Company does not have rights to the net assets of the individual entity the individual
entity shall be deemed as a joint operation and the items related to the share of interests in the joint
operation should be recognized and accounted for in accordance with the provisions of relevant
Accounting Standards for Business Enterprises.Significant impact means the investor’s power to participate in the decision-making of the financial and
operating policies of the investee but by which the investor cannot control or commonly control together
with other parties the formulation of the policies. Significant impact on the investee will be determined
based on one or more of the cases with reference to all facts and conditions:
1) Assigning a representative to the board of directors or similar authority of the investee;
2) Participating in formulation of the financial and operational policies of the investee;
3) Entering into a significant transaction with the investee;
4) Assigning an officer to the investee; or
5) Providing key technical information to the investee.
44TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
22 Investment property
The Company's investment property means the property held for the purpose of earning rent or
capital appreciation or both including the land use rights that have been leased the land use
rights that are held for transfer upon appreciation and the leased buildings. In addition for the
vacant buildings held by the Company for the purpose of leases if the Board of Directors makes a
written resolution that expressly indicates that the buildings will be used for leases and the
intention of holding will not change in a short-term the building will also be reported as
investment property.An investment property of the Company will be recorded at its cost that comprises i) in case of a
purchased investment property the purchase price relevant taxes and other expenses directly
attributable to the asset; or ii) in case of a self-constructed investment property the necessary
expenses incurred before the asset is constructed to reach its intended serviceable state.The Company adopts the cost model for subsequent measurement of investment property. For the
purpose of depreciation or amortization method the same amortization policy adopted for
buildings as fixed assets and land use rights as intangible assets is used.When the purpose of an investment property is changed to self-use the Company shall convert the
investment property into a fixed asset or intangible asset from the date of change. When the
purpose of a self-used property is changed to earning rent or capital appreciation the Company
will convert the fixed asset or intangible asset into an investment property from the date of change.When such a conversion occurs the carrying amount before the conversion shall be used as the
recorded value after the conversion.When an investment property is disposed of or when it permanently withdraws from use and no
economic benefit is expected to be obtained from the disposal of it the investment property shall
be derecognized. The disposal income from the sale transfer scrapping or damage of an
investment property net of its carrying amount and related taxes and fees is recognized in current
profits and losses.For methods of impairment test and accrual of provision for impairment of investment property
please refer to "28 Impairment on long-term assets" under Note III.
45TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
23 Fixed assets
(1) Recognition criteria for fixed assets
Fixed assets mean tangible assets held for the purpose of producing goods rendering services leases or
operation management whose service life is more than one fiscal year. Fixed assets satisfying the
following conditions are recognized:
(a) The economic benefits associated with the fixed assets are likely to flow into the enterprise;
(b) The cost of the fixed asset can be measured in a reliable way.The Company's fixed assets are classified into buildings machinery and equipment office and
electronic equipment transportation vehicles and fixed assets renovation in line with capitalization
conditions. Where each component of a fixed asset with a different service life provides economic
benefits to the Company in different ways and applies different depreciation rates it is recognized as a
single fixed asset.Fixed assets are initially measured at cost. The cost of purchasing fixed assets includes the purchase
price related taxes and other expenses attributable to the fixed asset before it is ready for the intended
use such as the expenses on transportation handling installation and professional services etc. When
determining the cost of fixed assets discard expenses should be considered. Subsequent expenditures
related to fixed assets that satisfy the recognition criteria of fixed assets are included in the cost of fixed
assets; otherwise they are recognized in profit and loss in the period in which they arise.Fixed assets are depreciated by the straight-line method. The depreciation rate of various fixed assets is
determined according to the estimated service life and estimated residual value (the estimated residual
value is 0-10% of the gross amount). The depreciation rate of classified fixed assets is as follows:
Asset Category Estimated Service AnnualLife Depreciation Rate
Houses and buildings 20-50 years 1.8%-5%
Machinery equipment 5-15 years 6%-20%
Office and electronic equipment 2-5 years 18%-50%
Transportation equipment 3-5 years 18%-33.33%
Power stations 20-25 years 3.8%-4.75%
Others 4-5 years 18%-25%
Fixed assets renovation is amortized evenly over the benefit period.All fixed assets are subject to depreciation except for fixed assets that have been fully depreciated and
continue to be used and the land that is priced and recorded separately. Fixed assets are depreciated on
a monthly basis. Fixed assets added are not depreciated in the current month when being added but
from the following month; fixed assets reduced are still depreciated in the current month when being
reduced and no depreciation is made from the following month. Fixed assets that are not profitable for
the Company or not used temporarily (other than seasonally deactivated) are recognized as idle fixed
assets. The estimated life expectancy and depreciation rate of idle fixed assets should be reestimated
and depreciation is directly included in the current profit and loss.The methods for impairment testing and accrual of impairment provisions of fixed assets are detailed in
28 "Long-term Asset Impairment" under Note III.
46TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
24 Construction in progress
Construction in progress refers to the necessary expenses incurred by the Company for the purchase and
construction of fixed assets or investment property before being ready for the expected usable status
including engineering materials costs labor costs related taxes and fees borrowing costs that should be
capitalized and indirect costs that should be apportioned. Construction in progress is accounted for
separately according to individual projects.After the construction in progress is ready for its intended use it must be transferred to fixed assets or
investment property whether the final accounting procedures are completed or not.The methods for impairment testing and accrual of impairment provisions of construction in progress are
detailed in 28 "Long-term Asset Impairment" under Note III.
25 Borrowing costs
Borrowing costs refer to interest and other related costs incurred by the Company as a result of borrowings
including interest on borrowings amortization of discounts or premiums ancillary expenses and exchange
differences arising from foreign currency borrowings.Borrowing costs that can be directly attributable to the acquisition construction or production of assets
eligible for capitalization are capitalized and included in the relevant asset cost. Other borrowing costs are
recognized as expenses in the period in which they are incurred and are included in the current profit and
loss. Assets eligible for capitalization refer to fixed assets investment property inventories and other assets
that require a substantial period of acquisition construction or production activities to get ready for the
intended use or sale status.Borrowing costs become capitalized when:
The asset expenditure has occurred including expenditure incurred in the form of cash payments transfer of
(1) non-cash assets or assuming interest-bearing debts for the purpose of acquisition construction or
production of assets that are eligible for capitalization;
(2) Borrowing costs have occurred;
(3) The acquisition construction or production activities necessary to enable the assets to be ready for theintended usable or saleable state have commenced.
When an asset that satisfied the capitalization conditions is abnormally interrupted during the process of
acquisition construction or production and the interruption period lasts for more than three months the
capitalization of the borrowing costs is suspended and recognized as the current expenses until the
acquisition construction or production of the assets starts again. When an asset that satisfied the
capitalization conditions is ready for its intended use or sale the capitalization is stopped and the borrowing
costs incurred in the future are included in the current profit and loss.The period of capitalization refers to the period from the time when the borrowing costs start to be
capitalized to the point when the capitalization is stopped and the period in which the borrowing costs are
suspended for capitalization is not included. During the period of capitalization if special borrowings are
made for the acquisition construction or production of assets eligible for capitalization the amount of the
interest expenses actually incurred during the current period of the special borrowings less the amount of
interest income earned by depositing unused borrowing funds in a bank or investment income earned by
temporary investment is recognized as the amount of capitalization. When a general loan is occupied for the
purpose of purchasing constructing or producing assets that satisfied the capitalization conditions the
amount of capitalization is determined according to the weighted average of the accumulated asset
expenditure exceeding the special loan portion multiplied by the capitalization rate of the general loan
occupied; the capitalization rate is determined based on the weighted average interest rate of general
borrowings.
47TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
26 Right-of-use assets
The Company initially measures right-of-use assets at cost. Such costs include:
(1) The initial measurement amount of lease liabilities;
(2) Lease payments made on or before the commencement date of the lease term (if a lease incentive
exists net of the amount related to the lease incentive already taken);
(3) Initial direct costs incurred by the Company;
(4) Costs expected to be incurred by the Company to disassemble and remove the leased asset(s)
restore the premises where the leased asset(s) is/are located or restore the leased asset(s) to the
condition agreed upon under the terms of the lease (excluding costs incurred to produce
inventory).After the commencement date of the lease term the Company uses the cost model for subsequent
measurement of right-of-use assets.If it is reasonably certain that ownership of the leased asset(s) will be obtained at the end of the
lease term the Company depreciates the leased asset(s) over its/their remaining service life. If it is
not reasonably certain that ownership of the leased asset(s) will be obtained at the end of the lease
term the Company depreciates the leased asset(s) over the lease term or the remaining service life
of the leased asset(s) whichever is shorter. Right-of-use assets for which impairment reserves
have been accrued are depreciated in future periods at their carrying amount net of impairment
reserves with reference to the above principles.In accordance with the provisions of Accounting Standards for Business Enterprises No. 8 - Asset
Impairment the Company determines whether right-of-use assets have been impaired and
accounts for the recognized impairment loss as detailed in 28 "Long-term Asset Impairment"
under Note III.
48TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
27 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 28 "Long-term Asset Impairment" under Note III.If an intangible asset is foreseen as unable to bring economic benefits to the Company it is regarded as
an intangible asset with an indefinite service life which will be reviewed in each accounting period. If
evidence indicates that the service life of the intangible asset is limited then it is converted to an
intangible asset with a limited service life. Intangible assets with indefinite service lives are not
amortized.The expenditures of the Company's internal research and development items are classified into
expenditures in the research phase and expenditures in the development phase. Research means an
original planned survey of acquiring and understanding new scientific or technical knowledge.Development means the application of research results or other knowledge to a plan or design to
produce new or substantially improved materials devices products etc. prior to commercial
production or use.The expenditures in the research phase of the Company's internal research and development items are
included in the current profit and loss when incurred; expenditures in the development phase are
recognized as intangible assets only when the following conditions are all satisfied:
(1) It is technically feasible to complete the intangible asset to enable it to be used or sold;
(2) There is intent to complete the intangible asset and use or sell it;
(3) The intangible assets can bring economic benefits;
(4) There are sufficient technical financial and other resources to support the development of the
intangible assets as well as the ability to use or sell the intangible assets;
(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.
49TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
28 Impairment of long-term assets
The Company determines whether there is any sign of possible impairment of the long-term assets on
the balance sheet date. If there is any sign of impairment in a long-term asset the Company estimates
the recoverable amount thereof based on the individual asset. If it is difficult to estimate the
recoverable amount of the individual asset the recoverable amount of the asset is determined based on
the asset group to which the asset belongs.The recoverable amount of an asset is determined based on the net amount of the fair value of the asset
less the disposal expenses or the present value of estimated future cash flows of the asset whichever is
higher.If the measurement results of the recoverable amount indicate that the recoverable amount of the long-
term investment is lower than its carrying amount the carrying amount of the long-term investment is
written off to the recoverable amount and the amount written by is recognized as asset impairment
loss which is included in current profits and losses while provision for asset impairment is made.Once the asset impairment loss is confirmed it cannot be reversed in the future accounting period.After the asset impairment loss is recognized the depreciation or amortization expense of the impaired
assets will be adjusted accordingly in the future periods so that the adjusted carrying amount of the
asset (deducting the expected net residual value) will be systematically amortized over the remaining
service life of the asset.For the goodwill formed by business combination and the intangible assets with indefinite service life
an impairment test is carried out every year regardless of whether there is any indication of
impairment.In the impairment test of goodwill the carrying amount of goodwill is apportioned to the asset group or
asset group portfolio expected to benefit from the synergy of the business combination. When
impairment tests are conducted on underlying asset groups or asset group portfolios that contain
goodwill impairment tests will be first conducted on the asset groups or asset group portfolios that do
not contain goodwill provided there is any sign of impairment in the asset groups or asset group
portfolios related to the goodwill and the recoverable amount will be calculated and compared with the
relevant carrying amount to recognize the corresponding impairment loss. Further impairment tests will
be conducted on asset groups or asset group portfolios that contain goodwill by comparing the
carrying amount of such underlying asset groups or asset group portfolios (including the part of the
carrying amount of the allocated goodwill) with their recoverable amount. If the recoverable amount of
the underlying asset group or asset group portfolio is lower than its carrying amount the impairment
loss shall be recognized for goodwill.
29 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.
30 Contract liabilities
The Company recognizes as contract liabilities the part of the obligation to transfer the goods to the
customer due to received or receivable consideration from the customer.
50TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
31 Employee benefits
Employee benefits include short-term employee benefits post-employment benefits termination
benefits and other long-term employee benefits provided in various forms of consideration in
exchange for service rendered by employees or compensation for the termination of employment
relationships.(a) Short-term employee benefits
Short-term employee benefits include employee wages or salaries bonuses allowances and
subsidies staff welfare premiums or contributions on medical insurance work injury insurance and
maternity insurance housing funds union running costs and employee education costs and short-
term paid absences. During the accounting period when employees provide services the Company
recognizes the actual short-term remuneration as liabilities and includes it in current profits and
losses or related asset costs according to the beneficiaries of the services provided by employees.Non-monetary benefits are measured at their fair value.(b) Post-employment benefits
The Company classifies post-employment benefit plans as either defined contribution plans or
defined benefit plans. Defined contribution plans are post-employment benefit plans under which
the Company pays fixed contributions into a separate fund and will have no obligation to pay further
contributions; and defined benefit plans are post-employment benefit plans other than defined
contribution plans. During the Reporting Period the Company’s defined contribution plans mainly
include basic pensions and unemployment insurance.(c) Termination benefits
If the Company terminates the labor relationship with an employee before the labor contract expires
or offers compensation for encouraging the employee to accept the redundancies voluntarily the
liabilities arising from compensation for the termination of labor relations with the employee are
determined and also included in current profits and losses at the time when the Company cannot
unilaterally withdraw the termination of the labor relationship plan or redundancies proposal or the
time when the cost associated with reorganization involving payment of termination benefits is
confirmed whichever is earlier.(d) Other long-term employee benefits
Other long-term employee benefits refer to all employee benefits except short-term employment
benefits post-employment benefits and termination benefits.For other long-term employee benefits that meet the conditions of a defined contribution plan the
amount to be contributed shall be recognized as a liability during the accounting period when the
employee provides services to the Company and shall be included in profit or loss for the period or
the underlying asset costs. For long-term employee benefits other than those mentioned above on
the balance sheet date the benefit obligations arising from the defined benefit plan shall be
attributed to the periods during which the employee provides services and shall be included in profit
or loss for the period or the underlying asset costs.
51TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
32 Estimated liabilities
(1) Recognition standards for estimated liabilities
An obligation related to product quality assurance loss contracts restructuring and other
contingencies shall be recognized as a provision if i) it is a current obligation of the Company ii)
the fulfillment of this obligation is likely to result in an outflow of economic benefits and iii) the
amount of this obligation can be reliably measured.
(2) Measurement methods for estimated liabilities
The estimated liabilities of the Company are initially measured on the basis of the best estimate of
the expenditure required to perform the relevant current obligations.When determining the best estimate the Company considers factors such as risks uncertainties
and time value of money related to contingent events. Where the time value of money has a
significant impact the best estimate is determined by discounting the relevant future cash
outflows.The best estimates are handled as follows:
In case there is a continuous range (or interval) of required expenditures within which the
possibility of occurrence of various results is the same the best estimate is determined by the
average of the middle value of the range that is the average of the upper and lower limits.In case there is no continuous range (or interval) of required expenditures or there is a continuous
range but the possibility of various results in the range is different if the contingency involves a
single item the best estimate is determined based on the most probable amount; if a contingency
involves multiple items the best estimate is determined based on various possible outcomes and
associated probabilities.If all or part of the expenses required by the Company to settle the estimated liabilities are
expected to be compensated by a third party the compensation amount is separately recognized as
an asset when it is basically confirmed to be received and the recognized compensation amount
should not exceed the carrying amount of the estimated liabilities.
52TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
33 Lease liabilities
The Company initially measures lease liabilities at the present value of the lease payments
outstanding on the commencement date of the lease term. When calculating the present value of
lease payments the Company uses the interest rate implicit in the lease as the rate of discount. If
the implicit interest rate of the lease cannot be determined the incremental loan interest rate of the
Company shall be used as the discount rate. Lease payments include:
(a) The amount of fixed payments net of amounts related to lease incentives and the amount ofsubstantive fixed payments;
(b) Variable lease payments that depend on indexation or ratio;
(c) The exercise price of the purchase option when applicable if the Company is reasonably certainthat the option will be exercised;
(d) The amount required to be paid to exercise the option to terminate the lease if the lease term
reflects that the Company will exercise the option to terminate the lease;
(e) The estimated amount payable is based on the secured residual value provided by the Company.The Company calculates the interest expenses of lease liabilities for each period within the lease
term at a fixed rate of discount and includes them in profit or loss for the current period or cost of
the related assets.Variable lease payments that are not included in the measurement of lease liabilities should be
included in profit or loss for the current period or cost of the related assets when they are actually
incurred.
34 Share-based payments
The share-based payments of the Company are mainly equity-settled share-based payments and
are only allow to be exercised by employees after the completion of their services in the waiting
period. On each balance sheet date in the waiting period based on the best estimate of the number
of vesting equity instruments the services obtained in the current period are included in the
relevant costs or expenses and capital reserve based on the fair value at the grant date of the equity
instruments.The fair value of equity instruments is determined by the external appraiser or management based
on the binomial distribution method. The best estimate of the vesting equity instrument is
determined by the management based on historical statistics on the vesting weights and turnover
rates on the balance sheet date.Equity-settled share-based payments are measured based on the fair value of the equity
instruments granted to employees. In case the vesting right is available immediately after the
grant it is included in the relevant cost or expense based on the fair value of the equity instrument
on the grant date and the capital reserve is increased accordingly. In case the vesting right is
available after the completion of services in the waiting period or satisfaction of stipulated
performance conditions on each balance sheet day during the waiting period the services
acquired in the current period are included into the relevant costs or expenses and capital reserve
on the basis of the best estimate of the number of feasible equity instruments and at the fair value
of the date on which the equity instruments are granted. No adjustments are made to the identified
related costs or expenses or total owners' equity after the vesting date.
53TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
35 Revenue recognition
(1) General principles applied to revenue recognition
The Company shall recognize the revenue according to the transaction price assigned to the
performance obligation when any due performance obligation is fulfilled (namely when the client
obtains control over relevant commodities or services). Performance Obligation means that under
the contract the Company promises to transfer commodities or services that can be clearly
distinguished to the client. "Obtain the control over relevant commodities or services" refers to the
ability to completely dominate the use of commodities and obtain almost all economic benefits.From the contract’s effectiveness date the Company shall evaluate the contract recognize each
single performance obligation included and determine whether each performance obligation is
fulfilled within a certain period or at a time point.When any of the following conditions is met for a performance obligation to be fulfilled within a
certain period the Company shall recognize corresponding revenue within the period according to
the performance schedule:
(a) While fulfilling the due obligation in the Company the client obtains and consumes the resultingeconomic benefit;
(b) The client is able to control the commodities under construction during the Company’s fulfillment;
(c) Commodities generated from the Company’s fulfillment possess irreplaceable purpose and the
Company has the right to charge all fulfilled performance obligations within the whole contract
period; otherwise the Company shall recognize corresponding revenue when the client obtains
control over relevant commodities or services.For any performance obligation with a certain period the Company shall apply the output
method/input method to determine the appropriate fulfillment schedule based on the specific nature
of commodities and services. The output method is to determine the fulfillment schedule according
to the value of commodities transferred to the client (while the input method is to determine the
fulfillment schedule according to the Company’s input to fulfill the performance obligation). If the
fulfillment schedule cannot be reasonably determined and the Company’s costs are predicted to be
compensated corresponding revenue shall be recognized based on the specific cost amount until the
fulfillment schedule can be reasonably determined.
54TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
35 Revenue recognition (continued)
(2) Specific revenue recognition method
(a) Product sales contract
According to the contract terms for the selling of products subject to performance obligation fulfillment
conditions at a time point and other products the Company shall recognize the realization of sales revenues
when the client obtains control over relevant commodities or services according to the delivery condition
agreed in the sales contract upon signing by the client after commodities are received.(b) Technical service contract
If revenues are recognized within a certain period based on the technical service contract corresponding
revenues shall be recognized according to the performance schedule.(c) Royalty income
Accounted for according to the time and method of charging as stipulated in the relevant contract or
agreement.(d) Revenue from photovoltaic power stations
a. Centralized power stations: Power stations are connected to the grid. The revenue is recognized based on
the documents on power supply provided by the business departments of the Company after the duration of
continuous and trouble-free operation specified by the electric power company is met. b. Distributed power
stations: Power stations are connected to the grid. The revenue is recognized based on the documents on
settlement provided by the business departments of the Company.
(3) Principles of handling revenues from specific transactions
(a) When the client obtains the control over relevant commodities corresponding revenue shall be recognized
according to the consideration amount (excluding the amount predicted to be returned due to sales return)
predicted to be duly charged from transferring commodities to the client and corresponding liabilities shall be
recognized based on the amount predicted to be returned due to sales return. Meanwhile when commodities
are sold the balance through deducting the predicted cost for taking back commodities from the carrying
amount of commodities predicted to be returned (including the impairment of value of returned commodities)
shall be accounted for under "Returned Commodities Cost Receivable".(b) For the contract containing the quality assurance article: it’s required to evaluate whether the quality assurance
involves any separable service except for the promise (to the client) that commodities conform to established
standards. If the Company provides additional service it shall be deemed as a single performance obligation
and subject to the accounting treatment according to relevant revenue criteria provisions; otherwise the
quality assurance liability shall be subject to the accounting treatment according to the accounting criteria
provisions on Contingency.(c) For the sales contract containing the client’s additional purchase option: the Company shall evaluate whether
the option provides the client with any significant right. If any it shall be deemed as a single performance
obligation and the transaction price shall be apportioned to the performance obligation and corresponding
revenues shall be recognized when the client executes the purchase option right and obtains the control over
relevant commodities in the future or when the option becomes invalid. If the separable selling price applied to
the client’s additional purchase option right cannot be directly observed it’s required to comprehensively
consider the difference in discounts between the client’s execution of option right and the client’s non-
execution of option right and analyze the possibility for the client to execute the option right and other relevant
information. Then a corresponding reasonable estimate shall be made.
55TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
35 Revenue recognition (continued)
(3) Principles of handling revenues from specific transactions (continued)
(d) The contract licenses the IP right to the client: It’s required to evaluate whether the IP right license
constitutes any single performance obligation; if any it is necessary to determine whether the
performance obligation fulfillment is fulfilled within a certain period or at a time point. If any IP
right license is granted to the client and royalties are charged based on the client’s actual sales or
usage corresponding revenues shall be recognized at a later time between the following dates: the
day when the client’s subsequent selling or usage occurs; the day when the Company fulfills
relevant performance obligations.(e) Major responsible person and agent: Based on whether the Company has control over the goods or
service before transferring it to the customer it is determined whether the Company is the major
responsible person or an agent in the transactions. If the Company is able to control the goods or
service before transferring it to the customer the Company shall be deemed as major responsible
person and the revenue shall be recognized at the total amount of the consideration received or
receivable; otherwise the Company shall be deemed as an agent and the revenue shall be
recognized at the amount of the commission or handling fee to which it expects to be entitled. The
amount of the commission or handling fee is determined by deducting the amount payable to other
relevant parties from the total amount of consideration received or receivable.
36 Contract costs
(1) Contract performance cost
For the cost resulting from performing the contract which is not included in other ASBE except
the revenue standards and meets the following conditions the Company shall recognize it as an
asset:
(a) The cost is directly related to a current or predicted contract including the direct labor direct
material. and manufacturing expenses (or similar expenses) the cost borne by the client and other
costs resulting from the contract;
(b) The cost adds various resources that can be applied by the Company to fulfill due performanceobligations; and
(c) The cost is predicted to be recovered.The asset shall be presented and reported in inventory or other non-current assets which depends
on whether the amortization period exceeds a normal operating cycle during the initial recognition.
(2) Contract acquisition cost
If the incremental cost resulting from the Company’s acquisition of the contract is predicted to be
recovered it shall be recognized as an asset as the contract acquisition cost. Increment Cost refers
to the cost that only results from the contract acquisition like the sales commission. If the
amortization period is less than one year it shall be included in current profit and loss.
(3) Contract cost amortization
The asset related to the contract cost shall by adopting the same basis for the recognition of
commodities or services revenues related to the asset be amortized during the period of fulfilling
the performance obligation or according to the fulfillment schedule and be included into current
profit and loss.
56TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
36 Contract costs (continued)
(4) Impairment of contract costs
For the asset related to the contract cost as mentioned above if the carrying amount is higher than
the difference between the residual consideration predicted to be obtained from the Company’s
transfer of commodities related to the asset and the cost to be incurred due to such transfer
depreciation reserves shall be calculated and withdrawn for the surplus which shall also be
recognized as the asset impairment loss.After the provision for impairment is made if changes in depreciation factors during previous
periods have made the above difference higher than the asset’s carrying amount it shall be
restituted to previously established asset impairment allowances and included in current profit and
loss. However the carrying amount of restituted assets shall not exceed the carrying amount of the
asset on the date of restitution without establishing impairment allowances.
37 Public grants
(1) Type of change
Public grants are transfers of monetary or non-monetary assets from the public to the Group at nil
consideration. According to the grant targets stipulated in the relevant public documents public
grants are classified into public grants related to assets and public grants related to income.
(2) Recognition of public grants
If a public grant is a monetary asset it is measured at the amount received or receivable. If a
public grant is a non-monetary asset it is measured at fair value. If the fair value cannot be
obtained in a reliable way there are measured at the nominal amount (RMB 1). Public grants
measured at nominal amounts are recognized directly in the current profits and losses.
(3) Accounting treatment
Public grants related to assets offset the carrying amount of the underlying assets.If the public grants related to income are used to compensate related costs or losses in the
subsequent period it is recognized as deferred income and included in the current profit and loss
or offset costs in the period in which the related costs or losses are recognized; public grants used
to compensate costs or losses incurred by the enterprise shall be directly included in current profits
and losses or offset related costs. For public grants related to the day-to-day activities of the
enterprise the R&D and VAT-related subsidies and the taxation or operation-based incentive
public subsidies are included in other income; other public grants are written off against related
costs based on the substance of economic activities. Public grants not related to daily activities of
the Company are included in the non-operating income and expenditure. For preferential loans for
policy discounts if the public finance department appropriates the discounted funds to the lending
bank the borrowing cost is accounted for according to the principal of the loan and the policy
preferential interest rate with the amount actually received as the entry value of the loan. If the
public finance department directly appropriates the interest grant funds to the Company the grants
shall offset the related borrowing costs.In case a recognized public grant is required to be returned the carrying amount of the asset is
adjusted if the carrying amount of relevant assets is offset at the initial recognition; if there is
related deferred income the book balance of deferred income is offset and the excess is included
in the current profit and loss; and in case of other circumstances it is directly included in current
profits and losses.
57TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
38 Deferred income tax assets and deferred income tax liabilities
Deferred income tax assets and deferred income tax liabilities shall be recognized based on the
difference (temporary difference) between the tax basis and carrying amount of the underlying
assets or liabilities. On the balance sheet date the deferred income tax assets and deferred
income tax liabilities are measured based on the tax rate applicable during the period when it is
expected to recover the assets or pay off the liabilities.
(1) Basis for recognition of deferred income tax assets
The Company recognizes deferred income tax assets arising from deductible temporary
differences to the extent that it is likely to acquire taxable income that can be used to offset the
deductible temporary differences deductible losses that can be carried forward to future years
and tax credits. However deferred income tax assets arising from the initial recognition of assets
or liabilities in a transaction with all the following characteristics shall not be recognized: (1) the
transaction is not a business combination; and (2) the occurrence of the transaction does not
affect accounting profits or taxable income or deductible losses.For a deductible temporary difference related to investments in affiliates the corresponding
deferred income tax asset will be recognized if the following criteria are met simultaneously: the
temporary difference is likely to be reversed in the foreseeable future and it is likely to obtain
taxable income that can be used to offset the deductible temporary difference in the future.
(2) Basis for recognition of deferred income tax liabilities
The Company recognizes the taxable temporary differences that should be paid but are not paid
for the current and previous periods as deferred income tax liabilities. But deferred tax liabilities
do not include:
(a) Temporary differences arising from the initial recognition of goodwill;
Temporary differences arising from transactions or events that are not formed by a business
(b) combination and do not affect accounting profits or taxable income (or deductible losses) upon
their occurrence;
For taxable temporary differences related to investments in subsidiaries and associates the
(c) timing of the reversal of the temporary differences can be controlled and the temporary
differences are unlikely to be reversed in the foreseeable future.
(3) Deferred income tax assets and liabilities are presented on a net basis after the followingconditions are met:
(a) An enterprise has the legal right to settle current income tax assets and liabilities on a net basis;
Deferred income tax assets and liabilities relate to income taxes levied by the same taxing
authority on either the same taxable entity or different taxable entities that intend to either settle
(b) current tax assets and liabilities on a net basis or to realize the assets and settle the liabilities
simultaneously in each future period in which significant amounts of deferred tax assets or
liabilities are reversed.
58TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
39 Leases
From the effective date of a contract the Company assesses whether the contract is a lease or includes
any lease. If a party to the contract transfers the right allowing the control over the use of one or more
assets that have been identified within a certain period in exchange for a consideration such a
contract is a lease or includes a lease.
(1) Lease contract split
If a contract contains multiple single leases at the same time the Company will split the contract and
conduct accounting treatment of each single lease respectively.If a contract contains both lease and non-lease parts at the same time the Company will split the lease
and non-lease parts conduct accounting treatment of the lease part in accordance with the accounting
standards governing leases and conduct accounting treatment of the non-lease part in accordance with
other applicable Accounting Standards for Business Enterprises.
(2) Lease contract combination
With regard to two or multiple contracts containing leases concluded by the Company with the same
counterparty or its related parties at the same or a similar time when any of the following conditions
is met the contracts are combined into one contract for accounting treatment:
Two or multiple contracts are concluded based on an overall business purpose and constitute a
(a) package deal and if they are not considered as a whole the overall business purpose cannot be
understood.(b) The consideration amount of one contract among the two or multiple contracts depends on the pricingor performance of other contracts.(c) The rights to use assets transferred by the two or multiple contracts constitute one single lease.
(3) Accounting treatment with the Company as lessee
On the commencement date of the lease term the Company recognises the right-of-use assets and
lease liabilities for the lease unless it is a simplified short-term lease or low-value asset lease.(a) Short-term leases and low-value asset leases
A short-term lease refers to a lease that does not include a purchase option and whose lease term does
not exceed 12 months. A low-value asset lease refers to a lease where the value will be low when a
single leased asset is a new asset.The Company does not recognize the right-of-use assets or lease liabilities for the following short-
term leases and low-value asset leases. In each period within the lease term the relevant lease
payments are included in the cost of the related assets or profit or loss for the current period on a
straight line basis or according to other systemic and reasonable methods.Item Simplified leased asset type
Short-term lease A lease whose lease term does not exceed 12 months from the commencement
date of the lease term
Low-value asset An asset lease with a value of less than RMB 40000 or its foreign currency
lease equivalents
59TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
39 Leases (continued)
(3) Accounting treatment with the Company as lessee (continued)
The Company recognizes the right-of-use assets and lease liabilities for short-term leases and low-value
asset leases other than those mentioned above.(b) The accounting policies for right-of-use assets and lease liabilities are detailed in Note III. 26 and Note III.33.
(4) Accounting treatment with the Company as lessor
(a) Lease classification:
The Company classifies leases into finance leases and operating leases at the inception of leases. A finance
lease refers to a lease where almost all the risks and rewards related to the ownership of the leased asset(s)
are substantially transferred regardless of whether the ownership is transferred eventually. An operating
lease refers to all leases other than finance leases.Usually the Company classifies a lease that meets any one or more of the following conditions as a finance
lease:
1) Upon expiry of the lease term the ownership of the leased asset(s) is transferred to the lessee.
2) The lessee has the option to purchase the leased assets. As the agreed purchase price is low enough
compared with the fair value of the leased asset(s) at the time the option is expected to be exercised it can
be reasonably determined at the inception of the lease that the lessee will exercise the option.
3) Although the ownership of the asset(s) is not transferred the lease term accounts for the majority of the
service life of the leased asset(s).
4) At the inception of the lease the present value of the lease payments receivable is almost equal to the fair
value of the leased asset(s).
5) The leased asset(s) is/are special in nature and can be only used by the lessee unless there is a large
alteration.The Company may also classify a lease that falls under any one or more of the following circumstances as a
finance lease:
1) If the lessee cancels the lease losses to the lessor caused by the cancellation will be borne by the lessee.
2) Gains or losses arising from fluctuations in the fair value of the residual value of the leased asset(s) are
borne by the lessee.
3) The lessee is able to renew the lease with a rental far lower than the market level for the next term.
(b) Accounting treatment of finance leases
On the commencement date of the lease term the Company recognizes the finance lease receivables for the
finance lease and derecognizes the leased asset(s) of the finance lease.In the initial measurement of finance lease receivables the sum of the unsecured residual value and the
present value of the lease payments receivable not yet received on the commencement date of the lease term
discounted at the interest rate implicit in the lease is the entry value of the finance lease receivables. Lease
payments receivable include:
1) The amount of fixed payments net of amounts related to lease incentives and the amount of substantive
fixed payments;
2) Variable lease payments that depend on indexation or ratios;
3) The exercise price of the purchase option when applicable if it is reasonably certain that the lessee will
exercise the purchase option;
4) The amount required to be paid by the lessee to exercise the option to terminate the lease if the lease term
reflects that the lessee will exercise the option to terminate the lease;
5) Secured residual value provided to the lessor by the lessee a party related to the lessee or an independent
third party that has the financial ability to perform the security provision obligation.The received variable lease payments that are not included in the measurement of the net investment in the
lease are included in profits and losses for the current period when they are actually incurred.
60TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
39 Leases (continued)
(4) Accounting treatment with the Company as lessor (continued)
(c) Accounting treatment of operating leases
For each period of the lease term the Company adopts the straight-line method or other systematic
and reasonable methods to recognize the lease receipts of the operating lease as rental income; the
Company capitalizes the initial direct expenses incurred in connection with the operating lease
amortizes them over the lease term on the same basis as that for the recognition of the rental
income and includes them in the current profit and loss by stage; the Company includes the
variable lease payments obtained in connection with the operating lease that are not included in
the lease receipts in current profits and losses when they are actually incurred.
(5) Sale and leaseback
(a) The Company as seller and lessee
If the asset transfer in a sale and leaseback transaction is a sale the Company will measure the
right-of-use assets formed by the sale and leaseback based on the portion of the original asset’s
carrying amount that is related to the use right acquired by the leaseback and recognize related
gains or losses only for the right transferred to the lessor. If the fair value of the sales
consideration is different from the fair value of the asset or if the lessor does not charge the rent at
the market price the Company will conduct accounting treatment with the sales consideration
amount below the market price as the prepaid rent or the amount above the market price as the
additional financing provided by the lessor to the lessee; at the same time the relevant sales gains
or losses will be adjusted based on the fair value.If the asset transfer in a sale and leaseback transaction is not a sale the Company will continue to
recognize the transferred asset and at the same time recognize a financial liability equivalent to the
transfer income.(b) The Company as buyer and lessor
If the asset transfer in a sale and leaseback transaction is a sale the Company will conduct
corresponding accounting treatment for asset purchase and apply the accounting standards
governing leases to the accounting treatment of the asset lease. If the fair value of the sales
consideration is different from the fair value of the asset or if the Company does not charge the
rent at the market price the Company will conduct accounting treatment with the sales
consideration amount below the market price as the pre-collected rent or the amount above the
market price as the additional financing provided by the Company to the lessee; at the same time
the rental receipt will be adjusted based on the market price.If the asset transfer in a sale and leaseback transaction is not a sale the Company will recognize a
financial asset equivalent to the transfer income.
40 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.
61TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
41 Discontinued operations
The Company will recognize a component that meets one of the following conditions has been
disposed of or classified as being held for sale and can be separately identified as a component of
discontinued operation:
(1) This component represents an independent main business or a separate main operation region.
(2) This component is part of a related plan to dispose of an independent main business or a separate
main operation region.
(3) This component is a subsidiary acquired for the sole purpose of resale.
Operating profit and loss such as impairment loss for discontinued operations and the amount
reversed and disposal profit and loss are presented in the income statement as profit and loss of
discontinued operations.In the balance sheet the Company presents independently from other assets the held-for-sale non-
current assets or assets in held-for-sale disposal groups and presents independently from other
liabilities the liabilities in held-for-sale disposal groups. The held-for-sale non-current assets or
assets in held-for-sale disposal groups and the liabilities in held-for-sale disposal groups shall not
offset each other but shall be presented as current assets and current liabilities respectively. In the
income statement the Company presents the profits and losses from going concern and the profits
and losses from discontinued operations. For the discontinued operations reported in the current
period the Company represents in the financial statements for the current period the information
previously presented as the profits and losses from going concern as the profits and losses from
discontinued operations for the comparable accounting period. If the discontinued operations are
no longer eligible for being classified as held-for-sale categories the Company will represent in the
financial statements for the current period the information previously presented as the profits and
losses from discontinued operations as the profits and losses from going concern for the
comparable accounting period.
42 Hedge Accounting
Hedge is classified as a fair value hedge cash flow hedge or net foreign investment hedge based
on the hedging relationship.
(1) A hedging relationship qualifies for hedge accounting only if all of the following criteria are met
(a) The hedging relationship consists only of eligible hedging instruments and eligible hedged items.(b) At the inception of the hedging relationship there is formal designation of hedging instruments
and hedged items and documentation of the hedging relationship and the Company’s risk
management strategies and objectives for undertaking the hedge have been prepared.
62TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
42 Hedge Accounting (Continued)
(1) A hedging relationship qualifies for hedge accounting only if all of the following criteria are met
(Continued)
(c) The hedging relationship meets the hedge effectiveness requirements.The hedging relationship meets the hedge effectiveness requirements only if all of the following
criteria are met:
1) There is an economic relationship between the hedged item and the hedging instrument. This
economic relationship causes opposite changes in the value of the hedging instrument and the hedged
item in the face of the identical hedged risk.
2) The effect of credit risk does not dominate the value changes that result from that economic
relationship.
3) The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the
hedged item that the Company actually hedges and the quantity of the hedging instrument that the
Company actually uses to hedge that quantity of hedged item. However that designation shall not
reflect an imbalance between the weightings of the hedged item and the hedging instrument that would
create hedge ineffectiveness that could result in an accounting outcome that would be inconsistent with
the purpose of hedge accounting.
(2) Fair value hedge accounting
(a) Gain or loss on the hedging instrument shall be recognized in profit or loss. If the hedging instrument
hedges a non-trading equity instrument (or a component thereof) that the Company has elected to be
measured at fair value through other comprehensive income the hedging gain or loss generated by the
hedging instrument shall be recognized in other comprehensive income.(b) Gain or loss generated by the hedged item due to the hedged risk exposure shall be recognized in profit
or loss and shall adjust the carrying amount of the recognized hedged item that is not measured at fair
value. If the hedged item is a financial asset (or a component thereof) measured at fair value through
other comprehensive income the hedging gain or loss on the hedged item shall be recognized in profit
or loss and will not be required for adjustment since the carrying amount has been measured at fair
value. However if the hedged item is a non-trading equity instrument (or a component thereof) that the
Company has elected to be measured at fair value through other comprehensive income the hedging
gain or loss on the hedged item shall be recognized in other comprehensive income and will not be
required for adjustment since the carrying amount has been measured at fair value.When a hedged item represents a defined commitment that has not been unrecognized (or a component
thereof) the cumulative change in the fair value of the hedged item subsequent to its designation
caused by the hedge relationship is recognized as an asset or a liability with a corresponding gain or
loss recognized in profit or loss. When a defined commitment is made to acquire an asset or assume a
liability the initial carrying amount of the asset or the liability is adjusted to include the cumulative
change in the fair value of the hedged item that has been recognized.(c) If the hedged item is a financial instrument (or a component thereof) measured at amortized cost the
adjustment made to the carrying amount of the hedged item shall be amortized based on the effective
interest rate recalculated on the amortization commencement date and recognized in current profits and
losses. This amortization can commence from the adjustment date but not later than the time when the
hedging gain or loss adjustment is made for the termination of the hedged item. If the hedged item is a
financial asset (or a component thereof) measured at fair value through other comprehensive income
the cumulative recognized hedging gain or loss shall be amortized in the same manner and recognized
in the profit or loss but the carrying amount of the financial asset (or a component thereof) shall not be
adjusted.
63TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
42 Hedge Accounting (Continued)
(3) Accounting treatment of cash flow hedges
(a) The portion of the gain or loss on the hedging instrument that is determined to be an effective
hedge (i.e. the portion that is offset by the change in the cash flow hedge reserve) shall be
recognized in other comprehensive income. The amount of cash flow hedging reserves shall be
determined based on the lower of the absolute amount of the following two items:
1) The cumulative gain or loss on the hedging instrument since the commencement of the hedge;
2) The cumulative change in the present value of expected future cash flows of the hedged item
since the commencement of the hedge. The amount of cash flow hedging reserves recognized in
other comprehensive income for each period is the change in cash flow hedging reserves for the
period.(b) The portion of the gain or loss on the hedging instrument that is determined to be an ineffective
hedge (i.e. other gain or loss after deducting that recognized in other comprehensive income) shall
be recognized in current profits and losses.(c) The amount that has been accumulated in the cash flow hedge reserve shall be accounted for as
follows:
1) If any hedged item is an expected transaction and the expected 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 a non-financial liability becomes a defined commitment for
which fair value hedge accounting treatment is applied the Company shall remove that amount
from the cash flow hedge reserve previously recognized in other comprehensive income and
include it in the initial cost of the asset or the liability.
2) For cash flow hedges other than those covered by 1) that amount from the cash flow hedge
reserve previously recognized in other comprehensive income shall be reclassified from the cash
flow hedge reserve to current profits and losses in the same period or the period during which the
hedged expected future cash flows affect profit or loss.
3) However if that amount from the cash flow hedge reserve previously recognized in other
comprehensive income is a loss and the Company expects that all or a portion of that loss will not
be recovered in one or more future periods it shall immediately reclassify the amount that is not
expected to be recovered from other comprehensive income to current profits and losses.
(4) Hedges of a net investment in a foreign operation
Hedges of a net investment in a foreign operation including a hedge of a monetary item that is
accounted for as part of the net investment shall be accounted for similarly to cash flow hedges:
(a) The portion of the gain or loss on the hedging instrument that is determined to be an effective
hedge shall be recognized in other comprehensive income.When disposing of all or part of the foreign operation the gain or loss on the hedging instrument
recognized in other comprehensive income shall be correspondingly transferred out and
recognized in current profits and losses.(b) The portion of the gain or loss on the hedging instrument that is determined to be an ineffective
hedge shall be recognized in current profits and losses.
64TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
42 Hedge Accounting (Continued)
(5) Termination of hedge accounting
Hedge accounting will be terminated if one of the following situations occurs:
(a) The hedging relationship no longer meets the risk management objectives due to changes in risk
management objectives.(b) The hedging instrument has expired or been sold or the contract has been terminated or has been
exercised.(c) The economic relationship no longer exists between the hedged item and the hedging instrument
or the effect of credit risk starts to dominate the value changes that result from that economic
relationship.(d) The hedging relationship no longer meets other conditions for applying hedging accounting
stipulated in this standard. In case the rebalancing of the hedging relationship is applied the
Company shall first consider the rebalancing of the hedging relationship and then evaluate
whether the hedging relationship meets the conditions for applying hedging accounting stipulated
in this standard.Termination of hedge accounting may affect the whole or a portion of the hedging relationship
and when only a portion thereof is affected hedge accounting remains applicable to the remaining
unaffected portion.
(6) Fair value selection of credit risk exposure
When credit derivative instruments measured at fair value through current profits and losses are
used to manage the credit risk exposure of a financial instrument (or a component thereof) the
financial instrument (or a component thereof) can be designated as a financial instrument
measured at fair value through current profits and losses during its initial recognition subsequent
measurement or when not yet recognized with written records made simultaneously provided
that the following criteria are met:
(a) The subject (such as the borrower or the loan commitment holder) of the credit risk exposure of
the financial instrument is consistent with the subject involved in the credit derivative;
(b) The reimbursement level of the financial instrument is consistent with that of the instrument
required to be delivered under the terms of the credit derivative.
65TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
III Significant accounting policies and accounting estimates (continued)
43 Changes to major accounting policies and estimates
(1) Change of accounting policies
(a) Reclassification of guarantee-based warranty expenses
Based on the Interpretation of Accounting Standards for Business Enterprises No. 18 promulgated
on December 6 2024 by the Ministry of Finance the guarantee-based warranty expenses shall be
included in operating cost. From January 2024 the Company started implementing such
provision and included the guarantee-based warranty expenses in operating cost. The
implementation of such an accounting treatment provision had no impact on the retained earnings
of the earliest financial statements at the beginning of the prior reporting period. The adjustments
to relevant items in the January-June 2024 (consolidated) comparative financial statements are as
follows:
Item of the income January - June 2024
statement Before change Cumulativeimpacted amount After change
Operating cost 70384382 258176 70642558
Sales expenses 1135573 (258176) 877397
(2) Changes to accounting estimates
No significant change occurred to the major accounting estimates in the Reporting Period.
44 Correction of previous accounting errors
No previous accounting errors were identified and corrected in the Reporting Period.
66TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 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 entitling to preferential tax treatment and the overseas
subsidies that adopt local applicable tax rate other entities under the Company are subject to the
applicable tax rate of 25% or the preferential tax rate for small and micro enterprises.
67TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
IV Taxes (continued)
5 Corporate income tax (continued)
Subsidiaries entitled to tax preferences:
Company name Preferential tax rate Reason
TCL Financial Technology (Shenzhen) Co. Ltd. 15.00% High-tech enterprise
Shenzhen TCL High-Tech Development Co. Ltd. 15.00% High-tech enterprise
China Display Optoelectronics Technology
(Huizhou) Co. Ltd. 15.00% High-tech enterprise
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
Huizhou Kedate Smart Display Technology Co.Ltd. 15.00% High-tech enterprise
Shenzhen Qianhai Maojia Software Technology
Co. Ltd. 15.00% High-tech enterprise
Tianjin Huanbo Science and Technology Co. Ltd. 15.00% High-tech enterprise
Tianjin Printronics Circuit Corporation 15.00% High-tech enterprise
Techigh Circuit Technology (Huizhou) Co. Ltd. 15.00% High-tech enterprise
Tianjin Huanzhi New Energy Technology Co.Ltd. 15.00% High-tech enterprise
Inner Mongolia Zhonghuan Solar Material Co.Ltd. 15.00% High-tech enterprise
Tianjin Zhonghuan Advanced
Material&Technology Co. Ltd. 15.00% High-tech enterprise
Huansheng New Energy (Jiangsu) Co. Ltd. 15.00% High-tech enterprise
Zhonghuan Advanced Bandaoti Technology Co.Ltd. 15.00% High-tech enterprise
Wuxi Zhonghuan Applied Materials Co. Ltd. 15.00% High-tech enterprise
Huansheng New Energy (Tianjin) Co. Ltd. 15.00% High-tech enterprise
Tianjin Huanou New Energy Technology Co. Ltd 15.00% High-tech enterprise
Shaanxi Huanshuo Green New Energy Co. Ltd. 15.00% Encouraged business in West China
Suzhou China Star Environmental Protection Eligible third-party enterprises engaged in
Technology Co. Ltd. 15.00% pollution prevention and control
Inner Mongolia Zhonghuan Advanced Bandaoti 15.00% High-tech enterprise and encouragedMaterial Co. Ltd. business in West China
Inner Mongolia Zhonghuan Crystal Materials Co. 15.00% High-tech enterprise and encouragedLtd. business in West China
Ningxia Zhonghuan Solar Material Co. Ltd. 9.00% High-tech enterprise and encouragedbusiness in West China
Ningxia Huanou New Energy Technology Co.Ltd. 9.00% Encouraged business in West China
68TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
IV Taxes (continued)
5 Corporate income tax (continued)
Company name Preferential tax rate Reason
Dangxiong Youhao New Energy Development
Co. Ltd. 15.00%
State-supported public infrastructure item
and encouraged business in West China
Hohhot Shuguang New Energy Co. Ltd. 12.50% State-supported public infrastructure itemand encouraged business in West China
Shaanxi Runhuan Tianyu Technology Co. Ltd. 7.50% State-supported public infrastructure itemand encouraged business in West China
Xuzhou Huanneng New Energy Co. Ltd. Tax-exempt State-supported public infrastructure item
Tianjin Binhai Huanxu New Energy Co. Ltd. Tax-exempt State-supported public infrastructure item
A 50% reduction in
Tianjin Zhonghuan New Energy Co. Ltd. the first phase andfull exemption in the State-supported public infrastructure item
second phase
Hohhot Dishengsheng New Energy Co. Ltd. Tax-exempt State-supported public infrastructure item
Shaanxi Huanbo New Energy Power Engineering State-supported public infrastructure item
Construction Co. Ltd. Tax-exempt
69TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements
1 Monetary assets
June 30 2025 December 31 2024
Cash on hand 497 482
Bank deposits 26336769 20526899
Deposits with the central bank 261628 285264
Other monetary assets 1945449 2195128
2854434323007773
Note Monetary assets with restricted use rights
June 30 2025 December 31 2024
TCL Tech Finance's statutory reserve deposits with
the central bank 255241 278910
Other restricted monetary assets 1732441 1867608
19876822146518
As of June 30 2025 the Company’s bank deposits of RMB 255241000 (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 June 30 2025 the Company’s monetary assets offshore amounted to RMB 6847602000
(December 31 2024: RMB 3151386000) all of which were owned by the overseas subsidiaries of
the Company.
70TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
2 Held-for-trading financial assets
June 30 2025 December 31 2024
Financial assets classified as those measured at fair value
through profit or loss 24090904 16560971
Including: Debt instrument investments 24086112 16525080
Equity instrument investments 4792 35891
2409090416560971
3 Derivative financial assets
June 30 2025 December 31 2024
Foreign exchange forwards and foreign exchange swaps 168726 172489
168726172489
4 Notes receivable
(1) Notes receivable by category
June 30 2025 December 31 2024
Bank acceptance notes 172633 188776
Trade acceptance notes 1482 1077
174115189853
71TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
4 Notes receivable (continued)
(2) Presentation of provision for bad debts on notes receivable by category
June 30 2025 December 31 2024
Gross amount Bad-debt Allowance Gross amount Bad-debt Allowance
Amount Ratio Amount Accrual Carrying Amount Ratio Amount Accrual CarryingRatio amount Ratio amount
Notes receivable for
which the allowance for
doubtful accounts were 174115 100% - - 174115 189853 100% - - 189853
established on the
grouping basis
Including: low-risk
portfolio 174115 100% - - 174115 189853 100% - - 189853
174115100%--174115189853100%--189853
(3) As at June 30 2025 the Company had no notes receivable in pledge.
(4) As at June 30 2025 endorsed or discounted notes receivable that were outstanding and derecognized amounted
to RMB 2787000 and endorsed or discounted notes receivable that were outstanding and not derecognized
were RMB 51162.
5 Accounts receivable
June 30 2025 December 31 2024
Accounts receivable 20113028 22589419
Less: allowance for doubtful accounts 371077 347266
1974195122242153
72TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
5 Accounts receivable (continued)
(1) Accounts receivable as at June 30 2025 are classified as follows by how the doubtful debts wereprovisioned:
June 30 2025 December 31 2024
Gross amount Bad-debt Allowance Gross amount Bad-debt Allowance
Category Amount Ratio Amount Accrual CarryingRatio amount Amount Ratio) Amount
Accrual Carrying
Ratio amount
Allowances
for bad debts
accrued on an 247803 1.23% 189668 76.54% 58135 261025 1.16% 188520 72.22% 72505
individual
basis
Provision for
impairment
based on
portfolio of 19865225 98.77% 181409 0.91% 19683816 22328394 98.84% 158746 0.71% 22169648
credit risk
characteristic
s
20113028100%3710771.84%1974195122589419100%3472661.54%22242153
(2) The aging of accounts receivable is analyzed as follows:
June 30 2025 December 31 2024
Amount Ratio Amount Ratio
Within 1 year 18136412 90.17% 20652345 91.43%
1 to 2 years 784797 3.90% 1033212 4.57%
2 to 3 years 425782 2.12% 206083 0.91%
Over 3 years 766037 3.81% 697779 3.09%
20113028100.00%22589419100%
73TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
5 Accounts receivable (continued)
(3) Allowances for doubtful accounts receivable are analyzed as follows:
June 30 2025
Beginning amount 347266
Accrued in the period 51648
Reversal of current period (45286)
Write-off of current period (200)
Others 17649
Ending amount 371077
(4) As at June 30 2025 the accounts receivable and contract assets of the top five balances are as
follows:
June 30 2025
Total amount of the accounts receivable and contract assets of the
top five balances 8759272
As a percentage of the total amount of accounts receivable and
contract assets 42.64%
(5) Accounts receivable derecognized due to transfer of financial assets
Item Methods of transfer of Amount derecognized Gain or lossfinancial assets for the period on derecognition
Accounts Factoring without
receivable recourse 4474785 (3879)
6 Receivables financing
June 30 2025 December 31 2024
Notes receivable financing 852499 584362
Receivable financing 3107127 247045
3959626831407
As at June 30 2025 the financing for endorsed or discounted receivables that were outstanding and
derecognized amounted to RMB 17832121000.As of June 30 2025 the Company believes that receivables financing it held did not have significant credit
risks and will not cause significant losses due to default.
74TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
7 Prepayments
(1) Prepayments are analyzed as follows:
June 30 2025 December 31 2024
Within 1 year 1356151 1807562
1-2 years 463717 209382
2-3 years 167059 67877
Over 3 years 37727 5671
20246542090492
(2) As of June 30 2025 the prepayments of the top five balances are as follows:
June 30 2025
Total amount owed by the top five 1112296
As % of total prepayments 54.94%
8 Other receivables
June 30 2025 December 31 2024
Dividends receivable 680027 675119
Other receivables 3246928 4048021
39269554723140
(1) Dividends receivable
June 30 2025 December 31 2024
Xinjiang Goens Energy Technology
Co. Ltd. 698082 698082
Others 4908 -
Less: allowance for doubtful
accounts 22963 22963
680027675119
75TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
8 Other receivables (continued)
(1) Dividends receivable (continued)
(a) Presentation of provision for bad debts on dividends receivable by category
June 30 2025 December 31 2024
Bad-debt Bad-debt
Gross amount Allowance Gross amount Allowance
Category Amount Ratio Amount Accrual CarryingRatio amount Amount Ratio Amount
Accrual Carrying
Ratio amount
Allowances for
bad debts
accrued on an
individual basis 702990 100% 22963 3.27% 680027 698082 100% 22963 3.29% 675119
702990100%229633.27%680027698082100%229633.29%675119
(2) Other receivables
June 30 2025 December 31 2024
Other receivables 3679801 4478337
Less: allowance for
doubtful accounts 432873 430316
32469284048021
(a) Nature of other receivables is analyzed as follows:
June 30 2025 December 31 2024
Subsidy receivables 1012909 1849469
Equity transfer receivables 505369 561969
Security and deposits 495753 490401
Others 1232897 1146182
32469284048021
76TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
8 Other receivables (continued)
(2) Other receivables (continued)
(b) Presentation of provision for bad debts on other receivables by category
June 30 2025 December 31 2024
Bad-debt Bad-debt
Category Gross amount Allowance Carrying Gross amount Allowance Carrying
Amount Ratio Amount AccrualRatio amount Amount Ratio Amount
Accrual
Ratio amount
Allowances
for bad debts
accrued on an 509007 13.83% 349181 68.60% 159826 684637 15.29% 351362 51.32% 333275
individual
basis
Provisions for
bad debts
accrued on a
portfolio 3170794 86.17% 83692 2.64% 3087102 3793700 84.71% 78954 2.08% 3714746
basis
3679801100%43287311.76%32469284478337100%4303169.61%4048021
(c) Allowance for doubtful other receivables is analyzed as follows:
12-month Lifetime ECL
ECL (credit not
Lifetime ECL
impaired) (credit impaired)
Total
December 31 2024 28902 - 401414 430316
Current accrual 2422 - 6980 9402
Reversal of current
period (1837) - (308) (2145)
Write-off of current
period (41) - - (41)
Others 72 - (4731) (4659)
June 30 2025 29518 - 403355 432873
77TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
8 Other receivables (continued)
(d) The aging of other receivables is analyzed as follows:
June 30 2025 December 31 2024
Carrying amount Ratio Carrying amount Ratio
Within 1 year 1785264 48.51% 2406461 53.74%
1 to 2 years 639397 17.38% 1254934 28.02%
2 to 3 years 631399 17.16% 185767 4.15%
Over 3 years 623741 16.95% 631175 14.09%
3679801100%4478337100%
(e) As of June 30 2025 the other receivables of the top five balances are as follows:
June 30 2025
Total amount owed by the top five 1626628
As % of total other receivables 44.20%
(f) On June 30 2025 there was no transfer of other receivables that did not conform to the conditions for
derecognition in the balance of this account; no transaction arrangement for asset securitization with other
receivables as the subject asset; and no financial instrument that was the subject of securitization and did not
conform to the conditions for derecognition.
78TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
9 Inventories
(1) Inventories are classified as follows:
June 30 2025 December 31 2024
Provision for Provision for
depreciation depreciation
of inventories of inventories
Gross / provision for Carrying Gross / provision for Carrying
amount impairment of amount amount impairment of amount
contract contract
performance performance
costs costs
Raw
materials 5791120 646039 5145081 5368313 663905 4704408
Work in
progress 4341266 864599 3476667 3594152 950333 2643819
Finished
Goods 14020072 2304277 11715795 12589255 2499767 10089488
Turnover
materials 211337 13478 197859 157865 1447 156418
2436379538283932053540221709585411545217594133
As of June 30 2025 the Company had no inventory for liabilities guarantee.
(2) Provision for depreciation of inventories/provision for impairment of contract performance costs:
December 31 2024 Accrued in Reversal and write- Otherthe period off in the period changes June 30 2025
Raw
materials 663905 611717 (625842) (3741) 646039
Work in
progress 950333 1151033 (1150481) (86286) 864599
Inventory
of goods 2499767 1501840 (1685767) (11563) 2304277
Turnover
materials 1447 168 (223) 12086 13478
41154523264758(3462313)(89504)3828393
79TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
10 Contract assets
(1) Contract assets are classified as follows:
June 30 2025 December 31 2024
Gross Impairment Carrying Gross Impairment Carrying
amount allowance amount amount allowance amount
Contract
assets 429810 32137 397673 422207 27090 395117
(2) Valuation allowances for contract assets are analyzed as follows:
Reversal or
December 31 2024 Accrued in write-off in Other increasesthe period and decreases June 30 2025the period
Contract
assets 27090 5047 - - 32137
11 Non-current assets due within one year
June 30 2025 December 31 2024
Other non-current assets due within one year 1765934 842072
Debt investments due within one year - 7634
1765934849706
12 Other current assets
June 30 2025 December 31 2024
VAT to be deducted to be certified etc. 7006759 6201277
Loans and advances to customers 851126 390720
Others 910637 124212
87685226716209
80TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
13 Debt Investments
June 30 2025 December 31 2024
Treasury bonds and corporate bonds 176057 147272
14 Long-term receivables
June 30 2025 December 31 2024
Gross Bad-debt Carrying Gross Bad-debt Carrying
amount Allowance amount amount Allowance amount
Finance lease 300891 - 300891 306397 - 306397
Including:
Unrealized (207690) - (207690) (220030) - (220030)
financing income
Others 143664 27801 115863 165145 27801 137344
4445552780141675447154227801443741
15 Long-term equity investments
June 30 2025 December 31 2024
Gross Impairment Carrying Gross Impairment Carrying
amount allowance amount amount allowance amount
Associate 23683207 1422 23681785 24140271 1444 24138827
Joint venture 488423 49503 438920 506310 49503 456807
241716305092524120705246465815094724595634
As of June 30 2025 the Company made impairment allowances for long-term equity investments in
investees with poor management and insolvent assets. In addition there was no significant restriction on the
realization of investment and the remittance of return on long-term equity investment.
81TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
15 Long-term equity investments (continued)
(1) Changes in long-term equity investments for the year
Increase or decrease in current period
Additional Reductions in Net profits or losses Cash dividends
Investees December 31 investments investments adjusted
Other Other or profit
2024 or or under the equity comprehensive equity distribution Others June 30 2025
transfers-in transfers-out method income changes declared
Joint venture 456807 27833 - (46873) - 1153 - - 438920
Associate
Bank of Shanghai Co. Ltd. 14740146 - - 738558 (47923) 17 (179937) - 15250861
Hubei Changjiang Hezhi Equity Investment
Fund Partnership (Limited Partnership) 1050189 - (53385) (13979) - - (643506) - 339319
Inner Mongolia Xinhuan Silicon Energy
Technology Co. Ltd. 1400862 - - (101522) - - - - 1299340
Others 6947630 60000 (171868) 6337 31 1326 (45683) (5508) 6792265
Total of associates 24138827 60000 (225253) 629394 (47892) 1343 (869126) (5508) 23681785
Total 24595634 87833 (225253) 582521 (47892) 2496 (869126) (5508) 24120705
82TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
15 Long-term equity investments (continued)
(2) Impairment allowances for long-term equity investments
December 31 2024 Increase in Decrease in Othercurrent period current period changes June 30 2025 Note
Pride Telecom Limited 1444 - - (22) 1422 Note 1
Huaxia CPV (Inner
Mongolia) Power Co. Ltd. 49503 - - - 49503 Note 1
50947--(22)50925
Note 1 Provisions for impairment were accrued for the long-term equity investments in these investees at
recoverable amounts because continuous operations losses occurred to these investees with poor management.
16 Investments in other equity instruments
June 30 2025 December 31 2024
Stocks 20326 13371
Equity of unlisted companies 393991 374480
414317387851
Amount of other Reasons designated asRecognized Cumulative Cumulative comprehensive measured at fair value andItem name dividend whose changes are
revenue gains losses income transferredto retained earnings included in othercomprehensive income
Being held long-term for
Stocks - 6005 (193923) - strategic purposes
Equity of unlisted Being held long-term for
companies - 11196 (12307) - strategic purposes
Total - 17201 (206230) -
17 Other non-current financial assets
June 30 2025 December 31 2024
Equity investments 2357816 1924717
Debt investments 216155 300483
25739712225200
83TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
18 Investment property
Houses and buildings Land use rights Total
Gross amount:
December 31 2024 830496 219676 1050172
Increase 5863 3150 9013
Reclassified from fixed assets and 5684 - 5684
intangible assets
Other increases 179 3150 3329
Decreases (1433) (3924) (5357)
Other decreases (1433) (3924) (5357)
June 30 2025 834926 218902 1053828
Accumulated depreciation and
amortization:
December 31 2024 320055 49475 369530
Increase 13272 2451 15723
Accrued in the period 9863 2451 12314
Reclassified from fixed assets and 3409 - 3409
intangible assets
Decreases (2167) (59) (2226)
Other decreases (2167) (59) (2226)
June 30 2025 331160 51867 383027
Investment property net:
June 30 2025 503766 167035 670801
December 31 2024 510441 170201 680642
Impairment allowance:
December 31 2024 67908 - 67908
June 30 2025 67908 - 67908
Investment property net:
June 30 2025 435858 167035 602893
December 31 2024 442533 170201 612734
84TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
19 Fixed assets
Houses and Machinery Office and
buildings equipment electronic
Transportation Power
equipment equipment stations
Others Total
Gross amount:
December 31 2024 61136545 241758804 3800411 318237 2224955 1426517 310665469
Increase 7278351 35972244 632363 38517 - 8135 43929610
New subsidiary 6685127 24955842 543758 1561 - - 32186288
Acquisition and other 44890 597541 56850 8338 - 2713 710332
Reclassified from
construction in 548334 10418861 31755 28618 - 5422 11032990
progress
Decreases (644438) (1235281) (140162) (8528) - - (2028409)
Written down with - (22246) - - - - (22246)
public grants
Reclassified to (5684) - - - - - (5684)
investment property
Decrease due to
disposal of (38751) (95183) (64585) - - - (198519)
subsidiaries
Other decreases (600003) (1117852) (75577) (8528) - - (1801960)
Exchange adjustment (1810) (3006) 465 39 - 501 (3811)
June 30 2025 67768648 276492761 4293077 348265 2224955 1435153 352562859
Accumulated
depreciation:
December 31 2024 12442980 121364569 2452682 242880 659147 334859 137497117
Increase 3989923 35764568 666688 21587 41520 42473 40526759
New subsidiary 2801716 23629474 480115 1378 - - 26912683
Accrual 1184764 11888563 185433 20209 41520 42473 13362962
Other increases 3443 246531 1140 - - - 251114
Decreases (82643) (517135) (95768) (7248) - - (702794)
Reclassified to (3409) - - - - - (3409)
investment property
Decrease due to
disposal of (32901) (13104) (26440) - - - (72445)
subsidiaries
Other decreases (46333) (504031) (69328) (7248) - - (626940)
Exchange adjustment 762 (613) 706 74 - 344 1273
June 30 2025 16351022 156611389 3024308 257293 700667 377676 177322355
Fixed assets net:
June 30 2025 51417626 119881372 1268769 90972 1524288 1057477 175240504
December 31 2024 48693565 120394235 1347729 75357 1565808 1091658 173168352
85TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
19 Fixed assets (continued)
Houses and Machinery Office and Transportation Power
buildings equipment electronic Others Totalequipment equipment stations
Impairment allowance:
December 31 2024 919519 1601398 73101 266 62059 - 2656343
Accrued in the period - - 87 - - - 87
Write-off of current period (705) (6549) (372) (100) - - (7726)
Other changes 2297 19635 173 - - - 22105
June 30 2025 921111 1614484 72989 166 62059 - 2670809
Fixed assets carrying
amount:
June 30 2025 50496515 118266888 1195780 90806 1462229 1057477 172569695
December 31 2024 47774046 118792837 1274628 75091 1503749 1091658 170512009
Please refer to Item 82 of Note V for information on fixed assets pledge.Fixed assets with pending ownership certificates at the end of the current period:
Carrying amount Reasons for pending ownershipcertificates
Houses and buildings
(Note) 18693220 In process
Note As of June 30 2025 the fixed assets for which the certificates of title have not been completed are mainly the houses
and buildings of Huaxing Production Bases t3 t5 and t9 as well as the houses and buildings of Inner Mongolia
Zhonghuan Crystal Materials Co. Ltd. and Ningxia Huan'ou New Energy Technology Co. Ltd..
20 Construction in progress
(1) Schedule of construction in progress
June 30 2025 December 31 2024
Construction in progress 18074486 23872805
Less: Impairment allowance 266042 292302
1780844423580503
86TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
20 Construction in progress (continued)
(2) Changes to construction in progress
Accumulated
Increase in Construction in investment in Cumulative Including: Interest
Project name Budget December 31 2024 current progress Other June 30 2025 the project Project capitalized capitalization
period transferred to movements progress
capitalized
interest interest in rate for current
Funding source
fixed assets as % of current period period
budget
t9 production line of
LCD panel 31500000 2794829 1551680 (3661806) (361) 684342 91%
Under Self-funded and
construction 395291 30220 3.2% financed funds
Solar power station 5460156 3512817 388305 (241165) (9311) 3650646 10% Under 183496 64902 3.06%-3.604% Self-funded andprojects construction financed funds
Large-diameter silicon
wafers for integrated 11210780 3241139 287338 (832314) (342) 2695821 49% Under Self-funded and
circuits construction
48264 8216 2.95% financed funds
Silicon wafers for
integrated circuits 10500000 2196067 352023 (420175) (696) 2127219 81%
Under
construction 438513 - 2.56%
Self-funded and
financed funds
Highly-efficient
imbricate module G12 2886269 911184 350578 (22247) (183) 1239332 7% Underconstruction 8932 2354 0.13%
Self-funded and
project financed funds
Production line of 8-
12-inch silicon wafers 5707172 877179 110442 (60909) (26594) 900118 95% Under 9885 1339 3.35% Self-funded and
for integrated circuits construction financed funds
Others Not 10047288 2732662 (5794374) (474610) 6510966 Not Not Notapplicable applicable applicable applicable Not applicable Not applicable Not applicable
235805035773028(11032990)(512097)17808444
87TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
21 Right-of-use assets
Houses and Transportation Machinery Land use
buildings equipment equipment rights Total
Gross amount:
December 31 2024 6523967 755 906409 472917 7904048
Increase 128972 13370 - 87845 230187
New subsidiary 73183 12960 - - 86143
Leased in 54414 162 - 73214 127790
Other increases 1375 248 - 14631 16254
Decreases (107377) (253) (4864) (1172) (113666)
Reduction due to
contract revision (17653) - - - (17653)
Other decreases (89724) (253) (4864) (1172) (96013)
Exchange adjustment 14430 52 - - 14482
June 30 2025 6559992 13924 901545 559590 8035051
Accumulated
depreciation:
December 31 2024 802000 398 294298 47409 1144105
Increase 251982 11586 50634 14181 328383
New subsidiary 55949 10610 - - 66559
Accrual 189998 484 50634 14181 255297
Other increases 6035 492 - - 6527
Decreases (68883) (42) (2822) - (71747)
Other decreases (68883) (42) (2822) - (71747)
Exchange adjustment 4148 29 - - 4177
June 30 2025 989247 11971 342110 61590 1404918
Right-of-use assets
carrying amount:
June 30 2025 5570745 1953 559435 498000 6630133
December 31 2024 5721967 357 612111 425508 6759943
Impairment allowance:
December 31 2024 62255 - - - 62255
Decreases (25918) - - - (25918)
Write-off of current year (25918) - - - (25918)
June 30 2025 36337 - - - 36337
Right-of-use assets
carrying amount:
June 30 2025 5534408 1953 559435 498000 6593796
December 31 2024 5659712 357 612111 425508 6697688
88TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
22 Intangible assets
Land use Non-patent
rights technology/ Others Totalpatent right
Gross amount:
December 31 2024 9509193 15399137 3304269 28212599
Increase 1141344 1145022 366974 2653340
New subsidiary 822003 5972 271302 1099277
Purchase 7828 996386 95672 1099886
Reclassified from development
expenditures - 142664 - 142664
Others 311513 - - 311513
Decreases (185) (10495) (30885) (41565)
Disposal and others (185) (10495) (30885) (41565)
Exchange adjustment (441) 967 755 1281
June 30 2025 10649911 16534631 3641113 30825655
Accumulated amortization:
December 31 2024 1519969 6851302 1564658 9935929
Increase 260040 1105474 410718 1776232
Accrual 136759 1099502 160964 1397225
New subsidiary 123222 5972 249754 378948
Others 59 - - 59
Decreases (31) (4326) (4084) (8441)
Disposal and others (31) (4326) (4084) (8441)
Exchange adjustment (6) (459) 264 (201)
June 30 2025 1779972 7951991 1971556 11703519
Intangible assets net:
June 30 2025 8869939 8582640 1669557 19122136
December 31 2024 7989224 8547835 1739611 18276670
Impairment allowance:
December 31 2024 23562 114526 21115 159203
Exchange adjustment - (149) - (149)
June 30 2025 23562 114377 21115 159054
Intangible assets carrying amount:
June 30 2025 8846377 8468263 1648442 18963082
December 31 2024 7965662 8433309 1718496 18117467
Please refer to Item 82 of Note V for information on collateralized intangible assets.
89TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
23 Development expenditures
Development expenditures are presented as follows:
June 30 2025 December 31 2024
Display 1142061 1165388
New energy photovoltaics and other silicon
materials 627413 666056
17694741831444
24 Goodwill
(1) Gross amount of goodwill
Name of investee or matter forming Increase in Decrease
goodwill December 31 2024 current in current June 30 2025period period
TCL Technology Group (Tianjin) Co.Ltd. 6726130 - - 6726130
Moka International Limited 1733665 - - 1733665
Xinxin Bandaoti Technology Co. Ltd. 1180005 - - 1180005
Maxeon Solar Technologies Ltd. 1556676 - (77299) 1479377
Guangzhou China Star Optoelectronics
Technology Co. Ltd. - 827544 - 827544
Guangzhou China Star Optoelectronics
Display Co. Ltd. - 63782 - 63782
Others 910601 - - 910601
12107077891326(77299)12921104
90TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
24 Goodwill (continued)
(2) Goodwill impairment allowance
Increase in Decrease
current in current
Name of investee December 31 2024 period period June 30 2025
Maxeon Solar Technologies Ltd. 915394 - - 915394
Others 31978 - - 31978
947372--947372
91TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
25 Long-term deferred expenses
Increase in
December 31 2024 current Amortizationin the period Others June 30 2025period
Improvement expense on
leased fixed assets 567528 19542 (35612) (11549) 539909
Others 1595929 1426192 (1018993) (27237) 1975891
21634571445734(1054605)(38786)2515800
26 Deferred income tax assets and deferred income tax liabilities
(1) Un-offset deferred income tax assets
June 30 2025 December 31 2024
Deductible Deductible
temporary Deferred tax Deferred tax
difference assets
temporary
difference assets
Deductible losses 25423751 3915482 27723181 4209631
Asset impairment
allowances 2406499 426799 2516717 434196
Provisions 3903713 609360 1618959 254359
Changes in fair value 60338 14604 56219 14055
Lease liabilities 6665956 673426 6683424 858412
Others 7709143 1253567 5817857 945951
461694006893238444163576716604
92TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
26 Deferred income tax assets and deferred income tax liabilities (continued)
(2) Un-offset deferred income tax liabilities
June 30 2025 December 31 2024
Taxable
temporary Deferred tax
Taxable Deferred
liabilities temporary income taxdifferences differences liabilities
Depreciation of fixed assets 25405441 4016701 25279356 3855131
Increase in value of assets
as assessed in business
combination not involving 5100360 1109985 3145703 607855
entities under common
control
Changes in fair value 803082 191199 345981 70110
Right-of-use assets 6593796 732760 6697688 923022
Others 1961318 152343 2654782 318508
398639976202988381235105774626
(3) Deferred income tax assets or liabilities presented on a net basis after offsetting
Amount subject to mutual offset of Closing balance of deferred
Item deferred income tax assets against income tax assets or liabilities
liabilities at the end of the period after offset
Deferred income tax assets (4106118) 2787120
Deferred income tax liabilities (4106118) 2096870
Amount subject to mutual offset of Beginning balance of deferred
Item deferred income tax assets against income tax assets or liabilities
liabilities at the beginning of the period after offset
Deferred income tax assets (4230177) 2486427
Deferred income tax liabilities (4230177) 1544449
(4) Unrecognized deferred income tax assets
June 30 2025 December 31 2024
Deductible temporary difference 5510842 5638299
Deductible losses 24822728 26169314
3033357031807613
93TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
26 Deferred income tax assets and deferred income tax liabilities (continued)
(5) Deductible losses in respect of unrecognized deferred income tax assets will expire in thefollowing years
June 30 2025 December 31 2024
2025321132332986
2026830617783029
202718344381448111
202813402071471286
202972032429104765
2030 onwards 13293092 13029137
2482272826169314
94TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
27 Other non-current assets
June 30 2025 December 31 2024
Impairment Carrying Gross Impairment Carrying
Gross amount allowance amount amount allowance amount
Other non-current -
assets 23084818 23084818
-
1791734117917341
23084818-2308481817917341-17917341
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.
28 Short-term borrowings
June 30 2025 December 31 2024
Unsecured borrowings 9116706 8123337
Borrowings secured by pledge 111326 54888
Interests payable 240 15058
92282728193283
As at June 30 2025 the Company’s short-term pledged loans were equivalent to RMB 111326000 pledged
with held-for-trading financial assets equivalent to RMB 145404000.As of June 30 2025 the Company does not have any short-term borrowings that have expired and have not
been repaid.
95TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
29 Borrowings from the Central Bank
As of June 30 2025 the balance of the borrowings of TCL Technology Group Finance Co. Ltd. (a subsidiary
of the Company) from the Central Bank was RMB 1002386000 (December 31 2024: RMB 600926000).
30 Customer deposits and deposits from banks and other financial institutions
June 30 2025 December 31 2024
Customer deposits and deposits from other
banks and financial institutions 1126234 177654
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.
31 Held-for-trading financial liabilities
June 30 2025 December 31 2024
Financial liabilities measured at fair value
through current profits and losses 242097 232406
32 Derivative financial liabilities
June 30 2025 December 31 2024
Derivative financial liabilities 85376 248845
33 Notes payable
June 30 2025 December 31 2024
Bank acceptance notes 6273165 6796785
Trade acceptance notes 462236 311057
67354017107842
As of June 30 2025 the Company had no notes payable that were due but not paid.
96TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
34 Accounts payable
June 30 2025 December 31 2024
Amounts due to suppliers 34590168 29347615
As of June 30 2025 there were no significant accounts payable aged over one year.
35 Advances from customers
June 30 2025 December 31 2024
Advances from customers 737 2689
As of June 30 2025 the Company had no significant accounts receivable aged over one year.
36 Contract liabilities
June 30 2025 December 31 2024
Advances from customers 2183855 1969271
As at June 30 2025 the Company had no significant contract liability aged over one year.
37 Employee benefits payable and long-term employee benefits payable
(1) Employee compensation payable
June 30 2025 December 31 2024
Short-term employee benefits payable 3761339 4131966
Defined contribution plans payable 10024 29005
Dismissal benefits payable 1942 27266
37733054188237
97TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
37 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 June 30 2025
Wages bonuses
allowances and subsidies 4026548 6267555 (6653356) 3640747
Employee services and
benefits - 252904 (252904) -
Social insurance benefits 28808 182598 (183523) 27883
Including: medical insurance
premium 28368 165147 (165713) 27802
Employment
injury insurance 424 11212 (11564) 72
premiums
Maternity
insurance 16 6239 (6246) 9
Housing fund 17824 190010 (187459) 20375
Trade union funds and staff
education funds 56820 89318 (93813) 52325
Other employee salaries 1966 25386 (7343) 20009
41319667007771(7378398)3761339
(b) Defined contribution plans
Increase in Decrease in
December 31 2024 current period current period June 30 2025
Basic pension insurance 28856 405069 (424046) 9879
Unemployment insurance 149 14889 (14893) 145
29005419958(438939)10024
(2) Long-term employee compensation payable
June 30 2025 December 31 2024
Supplementary pension insurance 22113 22424
2211322424
98TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
38 Taxes and levies payable
June 30 2025 December 31 2024
Corporate income tax 459522 468325
Value-added tax 75317 160729
Individual income tax 128203 35147
Urban maintenance and construction tax 237110 203667
Education surcharges 169305 145475
Others 363561 192755
14330181206098
39 Other payables
June 30 2025 December 31 2024
Dividends payable 946382 13131
Other payables 18302907 20058938
1924928920072069
(1) Dividends payable
June 30 2025 December 31 2024
Other non-controlling interests 946382 13131
94638213131
(2) Other payables
June 30 2025 December 31 2024
Payables for engineering equipment 11755366 14150023
Unpaid expenses 3052429 2796611
Security and deposits 507831 581027
Others 2987281 2531277
1830290720058938
99TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
40 Non-current liabilities due within one year
June 30 2025 December 31 2024
Long-term borrowings due within one year
(Note 1) 42 31295515 26434993
Bonds payable due within one year (Note 2) 43 7347758 7868074
Long-term payables due within one year 2336103 1187771
Interest payable due within one year 273358 374059
Lease liabilities due within one year 44 365361 348638
Long-term employee compensation payable due
within one year 18673 10948
4163676836224483
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 Corporate bond TKHB.SG: Issued in July 2020 with a term of 5 years the closing balance as at June
30 2025 was RMB 2147396000.
2 Medium-term note 22TCL Group MTN003 (Sci-Tech Innovation Notes): Issued in July 2022 with a
term of 3 years the closing balance as at June 30 2025 was RMB 1999974000.
3 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 June 30 2025 was RMB 1499271000.
4 Corporate bond 24TCLK1: Issued in February 2024 with a term of 2 years the closing balance as at
June 30 2025 was RMB 1499648000.
5 Convertible bond 2L Note: Issued in June 2024 with a term of 3.6 years the closing balance as at June
30 2025 was RMB 201469000. The creditors are entitled to redeem it whenever they want.
41 Other current liabilities
June 30 2025 December 31 2024
After-sales service expense (note) 1272278 1255175
Output tax to be transferred 141901 120002
Others 102898 109738
15170771484915
Note After-sales service expense expected to occur within 1 year is presented in other current liabilities.
100TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
42 Long-term borrowings
June 30 2025 December 31 2024
Borrowings secured by collateral 29416490 41035441
Borrowings secured by pledge 3847043 3239538
Unsecured borrowings 126503698 98975145
159767231143250124
Including: long-term loans due within one year (31295515) (26434993)
128471716116815131
As at June 30 2025 the long-term borrowings secured by collateral were equivalent to RMB 29416490000
(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 73315173000 (December 31 2024: RMB
94531938000); the long-term pledged borrowings were equivalent to RMB 3847043000 (December 31
2024: RMB 3239538000) which were pledged by the accounts receivable and contract assets of about
RMB 381900000 (December 31 2024: RMB 403810000).The interest rates of the Company’s long-term borrowing ranged from 2.1% to 5.7% in the current period
(2024: from 2.1% to 5.7%).
43 Bonds payable
June 30 2025 December 31 2024
Corporate bonds 3492235 4989943
MTN 2990459 1498677
64826946488620
101TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
43 Bonds payable (continued)
(1) Movements in bonds payable
Accrued
Bond name Par value Issue date Maturity Issued
Issued in interest Amortization Repaid Others
amount December 312024 currentperiod as per par
of premium or in current (note) June 302025
value discount period
23TCL Group MTN001 (Sci-
Tech Innovation Notes) 1500000 February 3 2023 3 1500000 1498677 - 30339 - - (1498677) -
ZQYWKJ2402010102-24TCLK1 1500000 January 30 2024 2 1500000 1499269 - 14281 - - (1499269) -
ZQYWKJ2404120002-24TCLK2 1500000 April 9 2024 5 1500000 1496967 - 20009 669 - 1497636
ZQYWKJ2407090002-24TCLK3 1000000 July 4 2024 5 1000000 997754 - 11356 446 - 998200
ZQYWKJ2407090003-24TCLK4 1000000 July 4 2024 5 1000000 995953 - 12199 446 - 996399
25TCL Group MTN001A (Sci-
Tech Innovation Notes) 1000000 January 8 2025 3 1000000 - 1000000 9425 (2023) 997977
25TCL Group MTN001B (Sci-
Tech Innovation Notes) 1000000 January 8 2025 5 1000000 - 1000000 12252 (3623) 996377
25TCL Group MTN002 (Sci-Tech
Innovation Bonds) 1000000 May 12 2025 5 1000000 - 1000000 3288 (3895) 996105
Total 9500000 9500000 6488620 3000000 113149 (7980) - (2997946) 6482694
Note Others are bonds payable within one year which are reclassified to non-current liabilities due within one year and exchange adjustment.
102TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
44 Lease liabilities
June 30 2025 December 31 2024
Total lease liabilities 6665956 6683424
Less: Current portion of lease liabilities 365361 348638
63005956334786
45 Long-term payables
June 30 2025 December 31 2024
Finance lease 1636141 1994812
46 Deferred income
December 31 2024 Increase in Decrease incurrent period current period June 30 2025
Public grants 1014891 4039760 (1987023) 3067628
10148914039760(1987023)3067628
Items involving public grants
Recognized Written off
December 312024 Increase in other against the Other
income cost of the changes
June 302025
asset/expenses
Public grants
related to 276006 809488 (1650) (236553) (13441) 833850
assets
Public grants
related to 738885 3230272 (924921) (793064) (17394) 2233778
income
10148914039760(926571)(1029617)(30835)3067628
103TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
47 Estimated liabilities
June 30 2025 December 31 2024
After-sales service fee of products 164389 206991
Pending litigation 48844 42227
213233249218
48 Other non-current liabilities
June 30 2025 December 31 2024
Other non-current liabilities 32333 27508
104TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
49 Share capital
December 31 2024 Increase or decrease in current period June 30 2025
Shares
converted from
Amount Ratio New issues capital reserve Others Subtotal Amount Ratio
I. Restricted shares 679458 3.62% - - 2876 2876 682334 3.63%
II. Non-restricted
shares 18099623 96.38% - - (2876) (2876) 18096747 96.37%
III. Total shares 18779081 100% - - - - 18779081 100.00%
Except for Chairman of the Board Mr. Li Dongsheng who holds restricted shares subscribed for in a private placement none of the other incumbent directors
supervisors or senior management hold any restricted shares from a split-share structure reform or a private placement. The shares held by these personnel will stay
partially frozen as per the Rules on the Management of Shares Held by the Directors Supervisors and Senior Management Officers of the Company and the Changes
thereof. The trading and information disclosure in relation to these shares shall be in strict compliance with the applicable laws regulations and rules.
105TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
50 Capital reserves
Increase in Decrease in
December 31 2024 current period current period June 30 2025
Share capital premium 10105906 - (623557) 9482349
Other capital reserves 447175 168996 (192779) 423392
10553081168996(816336)9905741
51 Treasury share
December 31 2024 Increase in Decrease incurrent period current period June 30 2025
Treasury share 919322 - (215670) 703652
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.
106TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
52 Other comprehensive income
(1) Other comprehensive income items income tax effects and reclassifications to profit or loss
January - June 2025 January - June 2024
I. Items that cannot be reclassified to profit or loss
subsequently
1. Share of other comprehensive income of investees that will
be reclassified to profit or loss under the equity method (10208) 122166
Share of the period (10166) 122166
Previous other comprehensive income reclassified to
retained earnings for the current period (42) -
2. Changes in fair value of other equity instruments 6866 (154)
Current gain/(loss) 7619 119
Income tax effects recorded in other comprehensive income (753) (273)
II. Items that will be reclassified to profit or loss subsequently
1. Share of other comprehensive income of investees that will
be reclassified to profit or loss under the equity method (37685) 21228
Share of the period (37685) 21228
2. Cash flow hedges - 1877
Current gain/(loss) - (13059)
Previous other comprehensive income reclassified to profit
for current period - 16073
Income tax effects recorded in other comprehensive income - (1137)
3. Differences arising from translation of foreign currency
financial statements of overseas operations (92875) 29879
4. Net income arising from disposal of overseas operations
through profit or loss - -
(133902)174996
107TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
52 Other comprehensive income (continued)
(2) Changes in other comprehensive income items
Equity attributable to shareholders of the parent company
Share of other Differences Changes
comprehensive Financial arising from caused by re- Other
Change of income of investees assets Gain/(Loss) translation of
Fair value
changes measurement comprehensiveon changes in foreign of net income Non- Total otheraccounting that will be Gain or loss cash flow currency- of other liabilities or transferred to Subtotal controlling comprehensivepolicies reclassified to profit on fair-value hedges denominated equity net assets of retained interests incomeor loss under the changes financial instrumentsequity method defined earningsstatements benefit plans
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 from January to
June 2025 - (47852) - - (42324) 6866 - (42) (83352) (50550) (133902)
June 30 2025 334950 278067 (350569) 14174 (783865) (203612) (200) (112756) (823811) (52200) (876011)
108TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
53 Surplus reserves
Increase in Decrease in
December 31 2024 current period current period June 30 2025
Statutory surplus reserves 3791516 - - 3791516
Discretionary surplus
reserves 182870 - - 182870
3974386--3974386
54 Specific reserves
December 31 2024 Appropriation in Decrease incurrent period current period June 30 2025
Production safety
reserve 7189 3892 (5961) 5120
55 General risk reserve
Appropriation in Decrease in
December 31 2024 current period current period June 30 2025
General risk reserve 8934 - - 8934
109TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
56 Retained earnings
January - June 2025 January - June 2024
Retained earnings at the beginning of the year 21504719 21537188
Change of accounting policies - -
Net profits for current period 1883500 995213
Decrease in current period (938912) (1502326)
Including: Appropriation of surplus reserves - -
Distributed to ordinary shareholders as dividends (938954) (1502326)
Others 42 -
Retained earnings at the end of the period 22449307 21030075
57 Operating revenue and operating cost
January - June 2025 January - June 2024
Operating Operating Operating
revenue cost revenue Operating cost
Core business 82687265 71815128 77594877 68551088
Non-core business 2872739 2267710 2628860 2091470
85560004740828388022373770642558
(1) Business by operating segment
Operating revenue Operating cost Gross profit
January - June January - June January - June January - June January - June January - June
202520242025202420252024
Domestic
sales 54848749 53896028 50404964 49684377 4443785 4211651
Foreign
sales 30711255 26327709 23677874 20958181 7033381 5369528
85560004802237377408283870642558114771669581179
(2) The total revenue from the sales to the top five customers was RMB 28582114000 and RMB
27053817000 respectively for January-June 2025 and January-June 2024 accounting for 33.4%
and 33.7% of the revenue.
110TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
57 Operating revenue and operating cost (continued)
(3) Revenue and costs generated from the Company's trial sales are as follows:
January - June 2025 January - June 2024
Operating revenue 1705918 255217
Operating cost 1422185 225302
58 Interest income/expense and exchange gain
January - June 2025 January - June 2024
Interest income 101622 79672
Interest expenditures 7789 14885
Exchange gain/(loss) 207 (116)
The interest income interest expense and exchange gain/(loss) above occurred with the Company's
subsidiary TCL Technology Group Finance Co. Ltd. which are presented separately herein as
required for a financial enterprise.
59 Taxes and levies
January - June 2025 January - June 2024
Property tax 263577 190296
Stamp tax 96737 94293
Urban maintenance and construction tax 108427 110639
Education surcharges 79276 68213
Land use tax 36926 15703
Others 13201 20984
598144500128
111TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
60 Sales expenses
January - June 2025 January - June 2024
Employee salaries and benefits 639773 415185
Promotional and marketing expenses 156472 109593
Others 367720 352619
1163965877397
61 General and administrative expense
January - June 2025 January - June 2024
Employee salaries and benefits 1184868 945366
Depreciation and amortization expenses 468934 389201
Expenses for hiring intermediaries 150691 260367
Others 396066 408902
22005592003836
62 R&D expenses
January - June 2025 January - June 2024
Depreciation and amortization expenses 2185468 2359818
Material expenses 626942 555016
Employee salaries and benefits 1423147 1140394
Others 506322 346339
47418794401567
63 Financial expenses
January - June 2025 January - June 2024
Interest expenditures 2555367 2472976
Interest income (353536) (381577)
Exchange loss/(gain) (120413) (127718)
Others 59864 127594
21412822091275
112TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
64 Other income
January - June 2025 January - June 2024
R&D subsidies 743047 217272
VAT rebates on software 17519 17952
Over-deduction in taxable amount for VAT 259376 586905
Others 218560 313264
12385021135393
65 Return on investment
January - June 2025 January - June 2024
Revenue from long-term equity investment
accounted for using the equity method 582521 (49289)
Net income from disposal of long-term equity
investments (50647) 36917
Return on holding of held-for-trading financial
assets 125922 337556
Return on disposal of held-for-trading financial
assets 34799 23552
Others 138701 73022
831296421758
66 Gain on changes in fair value
January - June 2025 January - June 2024
Held-for-trading financial assets 285102 47309
Held-for-trading financial liabilities (5138) (5672)
Derivative financial instruments 189924 91309
469888132946
113TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
67 Credit impairment loss
January - June 2025 January - June 2024
Loss on uncollectible accounts receivable (6362) (8589)
Loss on uncollectible other receivables (7257) (2279)
Other financial assets (11772) 3599
(25391)(7269)
68 Asset impairment loss
January - June 2025 January - June 2024
Inventory valuation loss (2793810) (1998171)
Loss on impairment of fixed assets (87) (56770)
Others (5047) (4707)
(2798944)(2059648)
69 Asset disposal income
January - June 2025 January - June 2024
Income/(loss) from disposal of fixed assets (763) 17926
Income/(loss) from disposal of intangible assets (3321) 21683
Others 1065 331
(3019)39940
70 Non-operating income
Amount through current
January - June 2025 January - June 2024 non-recurring gains and
losses
Gains on retired or damaged
non-current assets 174 6 174
Revenue from liquidated
damages and others 29651 227430 29651
2982522743629825
114TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
71 Non-operating expense
Amount through current
non-recurring gains and
January - June 2025 January - June 2024 losses
Losses on retired or
damaged non-current assets 3409 29203 3409
Donation 17415 23741 17415
Others 99133 25196 99133
11995778140119957
72 Income tax expenses
(1) Table of income tax expenses
January - June 2025 January - June 2024
Current income tax expense 665481 350489
Deferred income tax expense (349587) (298277)
31589452212
(2) Accounting profit and income tax adjustment process
January - June 2025 January - June 2024
Gross profit 347577 (415937)
Income tax expense calculated at
statutory/applicable tax rate 52137 (62391)
Impact of different tax rates applied to subsidiaries 500690 437578
Impact of adjusting income tax in previous periods (66236) 77334
Impact of non-taxable income (1036609) (751090)
Impact of non-deductible costs expenses and
losses 36393 58962
Impact of the use of deductible losses carried
forward without recognizing deferred income tax 116387 29348
assets in the previous periods
Impact of unrecognized deferred income tax assets
of deductible temporary differences or deductible 752156 368522
losses in the current period
Others (39024) (106051)
Income tax expense 315894 52212
115TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
73 Earnings per share
(1) Basic earnings per share
January - June 2025 January - June 2024
Net profits attributable to shareholders of the parent company 1883500 995213
Weighted average outstanding ordinary shares (in thousand shares) 18573423 18588572
Basic earnings per share (RMB yuan) 0.1014 0.0535
(2) Diluted earnings per share
January - June 2025 January - June 2024
Net profits attributable to shareholders of the parent company 1883500 995213
Diluted weighted average outstanding ordinary shares (in
thousand shares) 18779081 18779081
Diluted earnings per share (RMB yuan) 0.1003 0.0530
74 Cash generated from other operating activities
Other cash received from operating activities in the consolidated cash flow statement was RMB 8523407000
(year-on-year: RMB 3396202000) which primarily consisted of current payments received public grants etc.
75 Cash used in other operating activities
Other cash paid for other operating activities in the consolidated cash flow statement was RMB 8827613000
(year-on-year: RMB 5334029000) which primarily consisted of various expenses and current payments etc.
76 Cash generated from other investing activities
Other cash received from investing activities in the consolidated cash flow statement was RMB 182916000
(year-on-year: RMB 352014000) which primarily consisted of receipts from current accounts and proceeds
from the maturity of time deposits.
77 Cash used in other investing activities
Other cash paid for investing activities in the consolidated cash flow statement was RMB 464253000 (year-on-
year: RMB 563835000) which primarily consisted of the payments for foreign exchange forward delivery time
deposits etc.
116TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
78 Cash generated from other financing activities
Other cash received from financing activities in the consolidated cash flow statement was RMB 544843000
(year-on-year: RMB 422120000) which primarily consisted of the payment for sales of treasury shares
receipt of finance leasing payments etc.
79 Cash used in other financing activities
Other cash paid for financing activities in the consolidated cash flow statement was RMB 9101549000
(year-on-year: RMB 1930490000) primarily consisting of the payments for the repurchase of minority
interests financial lease payments etc.
80 Supplementary information for the cash flow statement
(1) Reconciliation of net profits to net cash generated from/used in operating activities
January - June 2025 January - June 2024
Net profits 31683 (468149)
Add: Asset impairment allowance 2824335 2066917
Depreciation of fixed assets 13375276 12514781
Depreciation of right-of-use assets 255297 238081
Amortization of intangible assets 1397225 1041749
Amortization of long-term deferred expenses 1054605 1303364
Loss/(Gain) on disposal of fixed assets intangible assets and
other long-term assets 3019 (39940)
Loss/(Gain) on retired or damaged fixed assets 3235 29197
Loss/(Gain) on changes in fair value (469888) (132946)
Financial expenses 2442536 2360259
Return on investment (831296) (421758)
Decrease/(Increase) in deferred income tax assets (271016) (126228)
Increase/(Decrease) in deferred income tax liabilities 465418 (170047)
Decrease/(Increase) in inventory (5379161) (3698344)
Decrease/(Increase) in operating receivables 8496334 477841
Increase/(Decrease) in operating payables 3717544 (2605556)
Others 158837 263501
Net cash generated from operating activities 27273983 12632722
117TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
80 Supplementary information for the cash flow statement (continued)
(2) Net cash payments for acquisition of subsidiaries in the current period
January - June 2025 January - June 2024
Payments of cash and cash equivalents made in current period due
to business combinations incurred in current period 12999145 23312
Less: cash and cash equivalents held by subsidiary on acquisition
date 6894562 19028
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 6104583 4284
(3) Breakdown of cash and cash equivalents
June 30 2025 December 31 2024
I. Cash 26556661 20861255
Including: Cash on hand 497 482
Bank deposits available for payment on demand 26267546 20524146
Other monetary assets are available for payment on
demand 282231 330273
Deposits with the central bank available for payment 6387 6354
II. Cash equivalents - -
III. Ending balance of cash and cash equivalents 26556661 20861255
118TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
80 Supplementary information for the cash flow statement (continued)
(4) Description of other major activities
Major operation or investment activities in no connection with cash receipts and payments:
January - June 2025 January - June 2024
Payment for procurement of inventory by bank acceptance
bills 653438 5331707
Payment for procurement of long-term assets by bank
acceptance bills 1154167 2538897
18076057870604
81 Net changes in cash and cash equivalents
January - June 2025 January - June 2024
Ending balance of cash and cash equivalents 26556661 17923548
Less: Cash at the beginning of the year 20861255 19996815
Net increase in cash and cash equivalents 5695406 (2073267)
Analysis of ending balance and cash equivalents:
Monetary assets at the end of the period 28544343 19587500
Less: Non-cash equivalents at the end of the period (note) 1987682 1663952
Ending balance of cash and cash equivalents 26556661 17923548
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.
119TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
82 Assets with restricted ownership or use rights
June 30 2025 Reason for restriction
Gross carrying Carrying
amount amount
Deposited in the central
Monetary assets 255241 255241 bank as the required
reserve
Other monetary assets
Monetary assets 1732441 1732441 and restricted bank
deposits
Fixed assets 143644455 92590825 As collateral for loan
Intangible assets 4972674 4106262 As collateral for loan
Held-for-trading financial assets 145404 145404 In pledge
Construction in progress 914637 914637 As collateral for loan
Accounts receivable 956989 945420 In pledge
Contract assets 143762 133185 In pledge
152765603100823415
Note: In the current period the subsidiary Wuhan China Star Optoelectronics Bandaoti Display Technology
Co. Ltd. prepaid bank loans amounting to RMB 2438000000. The pledged fixed assets of RMB
20774673000 were released from restrictions in August 2025.
83 Foreign currency monetary items
June 30 2025
Foreign currency
balance Conversion rate RMB balance
Monetary assets
Including: USD 1149873 7.1586 8231481
HKD 66848 0.9119 60959
INR 1737284 0.0837 145411
EUR 14351 8.3899 120403
PLN 47 1.9786 93
JPY 879022 0.0496 43599
KRW 950394 0.0053 5016
SGD 966 5.6159 5425
MXN 33896 0.3803 12891
VND 18270172 0.0003 5015
CAD 2 5.2272 10
PHP 89034 0.1269 11298
THB 19 0.2200 4
120TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
83 Foreign currency monetary items (continued)
June 30 2025
Foreign currency
balance Conversion rate RMB balance
Accounts receivable
Including: USD 1453550 7.1586 10405383
HKD 2971 0.9119 2709
INR 12497711 0.0837 1046058
EUR 34263 8.3899 287463
JPY 40360 0.0496 2002
VND 11496309 0.0003 3156
Accounts payable
Including: USD 668955 7.1586 4788781
HKD 267897 0.9119 244295
INR 2782322 0.0837 232880
EUR 3012 8.3899 25270
PLN 10 1.9786 20
JPY 17092217 0.0496 847774
AUD 17 4.6767 80
VND 116561779 0.0003 31996
Other receivables
Including: USD 75244 7.1586 538642
HKD 9667 0.9119 8815
INR 92197 0.0837 7717
EUR 2332 8.3899 19565
PLN 950 1.9786 1880
JPY 27697 0.0496 1374
KRW 99165 0.0053 523
SGD 98 5.6159 550
MXN 20859 0.3803 7933
VND 7706360 0.0003 2115
121TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
83 Foreign currency monetary items (continued)
June 30 2025
Foreign currency
balance Conversion rate RMB balance
Other payables
Including: USD 503988 7.1586 3607848
HKD 69525 0.9119 63400
INR 1300398 0.0837 108843
EUR 281 8.3899 2358
PLN 464 1.9786 918
JPY 14367167 0.0496 712611
KRW 692706 0.0053 3656
SGD 152 5.6159 854
MXN 26326 0.3803 10012
TWD 17 0.2461 4
AUD 11 4.6767 51
VND 92431003 0.0003 25372
Short-term borrowings
Including: USD 215552 7.1586 1543051
PHP 97500 0.1269 12373
84 Leases
(1) The Company acting as a lessee
From January to June 2025 short-term lease rents low-value asset rents and income obtained from
subleasing right-of-use assets for which the Group acting as a lessee chose simplified accounting
were not significant.
122TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
84 Leases (continued)
(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 121230 -
Machinery equipment 3646 -
Others 354 -
Total 125230 -
* 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 - 12767 -
Total - 12767 -
Annual undiscounted lease receipts for the next five years
Annual undiscounted lease receipts
Item June 30 2025 December 31 2024
Year 1 210491 209266
Year 2 182892 182692
Year 3 165097 167400
Year 4 157732 154531
Year 5 156389 155548
Total undiscounted lease receipts
after five years 1347393 1348902
123TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
VI R&D expenses
1 Presentation by nature of expenses
Item January - June 2025 January - June 2024
Material costs 1260357 1120205
Labor costs 1611007 1356702
Depreciations and amortizations 1045187 1229349
Others 612095 559602
Total 4528646 4265858
Including: Expensed R&D expenses 3339314 2868939
Capitalized R&D expenses 1189332 1396919
2 Development expenditures of R&D projects eligible for capitalization
Increase in current
period Decrease in current period
Item Beginning Endingbalance Internal development balance
expenditures Others
Recognized as Included in profits
intangible assets and losses Others
Display 1165388 1085311 - - (112228) (996410) 1142061
New
energy
photovolt
aics and 666056 104021 - (142664) - - 627413
other
silicon
materials
Total 1831444 1189332 - (142664) (112228) (996410) 1769474
3 As of June 30 2025 the Company had no significant outsourced projects under research.
124TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
VII Changes to the Consolidation Scope
1 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 7584667 7233438
Total liabilities 6949549 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 Carrying amount as
the acquisition at the acquisition
date date
Total assets 13780610 11368495
Total liabilities 1604346 1604346
Net assets 12176264 9764149
Less: non-controlling interests - -
Net assets acquired 12176264 9764149
2 No business combination under common control occurred in current period.
125TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
VII Changes to Consolidation Scope (continued)
3 Disposal of subsidiaries
Name of subsidiary Hohhot Shuguang New Energy Shanxi Province Loufan CountyCo. Ltd. Huanshuo New Energy Co. Ltd.Price for equity interest disposal - -
% equity interest disposed 100% 100%
Way of equity disposal Sale Sale
Time of loss of control June 30 2025 June 30 2025
Determination basis for time of loss The operating risk has been
of control 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 Tianjin Binhai Huanxu New EnergyCo. Ltd. Co. Ltd.Price for equity interest disposal - -
% equity interest disposed 100% 100%
Way of equity disposal Sale Sale
Time of loss of control June 30 2025 June 30 2025
Determination basis for time of loss The operating risk has been
of control 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.Price for equity interest disposal -
% equity interest disposed 100%
Way of equity disposal Sale
Time of loss of control June 30 2025
Determination basis for time of loss of control The operating risk has been transferred
Difference between the disposal price and the Company’s share of the
subsidiary’s net assets in the consolidated financial statements relevant to the (661)
disposed equity interest
126TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
VII Changes to Consolidation Scope (continued)
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
Shenzhen Pulin Gaote Circuit Co. Ltd. Acquisition
Maoxing Holdings Limited Capital increase for controlling interest
TCL International Marketing Limited (BVI) De-registered
127TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
VIII Interests in Other Entities
1 Interests in subsidiaries
(1) Principal subsidiaries
Name of investee Place of Nature of Principal place
Shareholding How
registration business of business percentage subsidiary wasDirect Indirect obtained
TCL China Star Optoelectronics Technology
Co. Ltd. Shenzhen
Manufacturing
and sales Shenzhen 82.21% - Incorporated
Shenzhen China Star Optoelectronics Bandaoti Manufacturing
Display Technology Co. Ltd. Shenzhen and sales Shenzhen - 62.68% Incorporated
Guangzhou China Ray Optoelectronic Materials
Co. Ltd. Guangzhou
Research and
development Guangzhou - 100.00% Incorporated
Wuhan China Star Optoelectronics Technology
Wuhan ManufacturingCo. Ltd. and sales Wuhan - 98.22% 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 Investment combination not
Holdings Limited Bermuda holding Bermuda - 64.20% under common
control
China Display Optoelectronics Technology
Huizhou Manufacturing(Huizhou) Co. Ltd. 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 Technology
Suzhou ManufacturingCo. Ltd. and sales Suzhou - 100.00%
combination not
under common
control
Business
Suzhou China Star Optoelectronics Display Co.Suzhou Manufacturing Suzhou - 100.00% combination notLtd. and sales 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
128TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
VIII Interests in Other Entities (Continued)
1 Interests in subsidiaries (Continued)
(1) Composition of key subsidiaries (Continued)
Place of Nature of Principal Shareholding HowName of investee registration business place of percentage subsidiary wasbusiness Direct Indirect obtained
Business
Guangzhou China Star Optoelectronics Guangzhou Manufacturing Guangzhou 100.00% combination notTechnology Co. Ltd. and sales under common
control
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
Shenzhen Investment Shenzhen 100.00% - IncorporatedEntrepreneurship Investment Co. Ltd. business
Ningbo TCL Equity Investment Ltd. Ningbo Investment Shenzhen 100.00% - Incorporatedbusiness
TCL Technology Park (Huizhou) Co. Ltd. Huizhou Property Incorporatedmanagement Huizhou - 100.00%
TCL Technology Investments Limited Hong Kong Investmentbusiness Hong Kong 100.00% -
Incorporated
Business
TCL Zhonghuan Renewable Energy
Tianjin ManufacturingTechnology Co. Ltd. and sales Tianjin 2.55% 27.36%
combination not
under common
control
Business
Tianjin Printronics Circuit Corporation Tianjin Manufacturing combination notand sales Tianjin - 29.50% under common
control
Business
Inner Mongolia Zhonghuan Crystal Inner Manufacturing
Materials Co. Ltd. Mongolia and sales Inner Mongolia - 83.96%
combination not
under common
control
Business
Ningxia Zhonghuan Solar Material Co. Ningxia Hui Ningxia Hui
Ltd. Autonomous
Manufacturing
and sales Autonomous - 100.00%
combination not
Region Region under commoncontrol
Business
Tianjin Huan'ou Bandaoti Manufacturing combination not
Material&Technology Co. Ltd. Tianjin and sales Tianjin - 100.00% under common
control
129TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
VIII Interests in Other Entities (Continued)
1 Interests in subsidiaries (Continued)
(1) Composition of key subsidiaries (Continued)
Name of investee Place of
Principal Shareholding
registration Nature of business place of percentage
How subsidiary was
business Direct Indirect obtained
Wuxi Zhonghuan Applied Manufacturing and Business combination
Materials Co. Ltd. Jiangsu sales Jiangsu - 98.08% not under commoncontrol
Inner Mongolia Zhonghuan Solar Inner Manufacturing and Inner Business combination
Material Co. Ltd. Mongolia sales Mongolia - 100.00% not under commoncontrol
Tianjin Huanou International Business combination
Silicon Material Co. Ltd. Tianjin Sales Tianjin - 100.00% not under commoncontrol
Zhonghuan Hong Kong Holding Business combination
Limited Hong Kong Import and export Hong Kong - 100.00% not under commoncontrol
Zhonghuan Advanced Bandaoti Business combination
Technology Co. Ltd. Jiangsu
Manufacturing and not under common
sales Jiangsu 7.35% 35.30% control
Huansheng Solar (Jiangsu) Co. Business combination
Jiangsu Manufacturing andLtd. sales Jiangsu - 100.00%
not under common
control
Huansheng New Energy (Jiangsu) Business combination
Jiangsu Manufacturing andCo. Ltd. sales Jiangsu - 95.74%
not under common
control
Huansheng New Energy (Tianjin) Business combination
Tianjin Manufacturing andCo. Ltd. sales Tianjin - 87.33%
not under common
control
Power generation
Tianjin Zhonghuan New Energy Business combinationpower transmission
Co. Ltd. Tianjin Tianjin - 100.00% not under commonpower supply
(distribution) control
Tianjin Huanrui Electronic Business combination
Technology Co. Ltd. Tianjin Purchase Tianjin - 100.00% not under commoncontrol
Business combination
Moka International Limited BVI Investment holding BVI - 100.00% not under common
control
Moka Technology (Guangdong) Business combinationManufacturing and
Co. Ltd. Huizhou not under commonsales Huizhou - 100.00% control
130TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
VIII Interests in Other Entities (Continued)
1 Interests in subsidiaries (Continued)
(2) Subsidiaries with substantial non-controlling interests
Profit or loss
Shareholding ratio attributable to Dividends distributed Balance of
Name of subsidiary of minority minority to minority minority interests
shareholders shareholders in shareholders in current at the end of the
current period period period
TCL China Star
Optoelectronics Technology 17.79% 1684010 - 41348425
Co. Ltd.TCL Zhonghuan Renewable
Energy Technology Co. Ltd. 70.09% (3563668) - 32372525
Highly Information Industry
Co. Ltd. 33.54% 30563 14752 628657
131TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
VIIIInterests in Other Entities (Continued)
1 Interests in subsidiaries (Continued)
(2) Subsidiaries with substantial non-controlling interests (continued)
The key financial information of the above subsidiaries is as follows:
June 30 2025 December 31 2024
Current Non-current
assets assets Total assets
Current Non-current Total Current Non-current Total Current Non-current Total
liabilities liabilities liabilities assets assets assets liabilities liabilities liabilities
TCL China
Star
Optoelectron 63970399
ics 149677315 213647714 62324600 73241006 135565606
451432621496843001948275625817206061482749119654809
Technology
Co. Ltd.TCL
Zhonghuan
Renewable 34266638 90550275 124816913 29041880 54007886 83049766 32286427 93311098 125597525 27524412 51603004 79127416Energy
Technology
Co. Ltd.Highly
Information 7961506
Industry Co. 176999 8138505 6512614 23617 6536231
696000916996471299735540519212585561777
Ltd.
132TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
VIIIInterests in Other Entities (Continued)
1 Interests in subsidiaries (Continued)
(2) Subsidiaries with substantial non-controlling interests (continued)
The key financial information of the above subsidiaries is as follows:
January - June 2025 January - June 2024
Operating Total Net cash generate Operating Total Net cash generate
revenue Net profits comprehensive from/used in Net profits comprehensive from/used inincome operating activities revenue income operating activities
TCL China Star
Optoelectronics 50429196 4316269 4236220 26413752 44096058 2479923 2566892 14129920
Technology Co.Ltd.TCL Zhonghuan
Renewable Energy 13398123 (4836171) (4890135) 523174 16213493 (3175764) (3175713) 128102
Technology Co. Ltd.Highly Information 14674516 67956 67247 (452670) 13649333 62945 62945 (611454)
Industry Co. Ltd.
133TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
VII Interests in Other Entities (Continued)
I
2 Interests in joint ventures and associates
(1) Basic information about principal joint ventures and associates
Shareholding
Principal place Strategic to the percentage
Name of investee ofbusiness/place Nature of business Group’s activities or
of registration 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 H1 2025 report.
(2) The Company had no significant joint ventures in the Reporting Period.
134TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
IX Risks Related to Financial Instruments
The purpose of the Company’s risk management is to achieve a right balance between the risk and the
benefit and maximally reduce the adverse impact of financial risks on the Company’s financial
performance. Based on such purpose the Company has established various risk management policies to
recognize and analyze possible risks to be encountered by the Company set an appropriate risk acceptable
level and design corresponding internal control procedures so as to control the Company’s risk level. In
addition the Company will regularly review these risk management policies and relevant internal control
systems in order to adapt to the market or handle various changes in the Company’s operating activities.Meanwhile the Company’s internal audit department will also regularly or randomly check whether the
implementation of internal control system conforms to relevant risk management policies. In fact the
Company has applied proper diversified investment and business portfolio to disperse various financial
instrument risks and worked out corresponding risk management policies to reduce the risk of concentrating
on one single industry specific region or specific counterpart.The main risks arising from the Company's financial instruments are credit risk liquidity risk and market
risk (mainly foreign exchange risk and interest rate risk).
(1) Credit risk
Credit risk refers to the risk of financial loss caused by any party of financial instruments to another party
due to the failure in fulfilling performance obligations. The Group controls the credit risk based on the
specific group classification and credit risk mainly results from bank deposits due from the central bank
notes receivable accounts receivable loans and advances to customers and other receivables.The Group’s bank deposits and due from the central bank are mainly deposited in stated-owned banks and
other large and medium-sized listed banks. The Group considers no significant credit risk to exist and no
significant loss to be caused by the counterpart’s breach of contract.For notes receivable accounts receivable loans and advances to customers and other receivables the
Group has established relevant policies to control the credit risk exposure and will evaluate the client’s
credit qualification and determine the corresponding credit period based on the client’s financial status the
possibility of obtaining guarantees from the third party relevant credit records and other factors (like the
current market situation). In the meantime the Group will regularly monitor the client's credit records. For
any client with unfavorable credit records the Group will issue written reminders shorten the credit period
or cancel the credit period so as to keep the Group's overall credit risk controllable.As of June 30 2025 no significant guarantee or other credit enhancements held due to the debtor mortgage
was found in the Group.
(2) Liquidity risk
Liquidity risk refers to the risk of capital shortage the Company encounters when the Company is fulfilling
the obligation of settlement in the form of cash or other financial assets. Various subsidiaries under the
Group shall be responsible for predicting their own cash flow. The financial department of the headquarters
shall firstly summarize predictions on the cash flow of various subsidiaries and then continuously monitor
the short-term and long-term fund demand at the Group's level so as to maintain sufficient cash reserves and
negotiable securities that can be realized at any time; meanwhile special efforts shall also be made to
continuously monitor whether provisions stated in the loan agreement are observed and to make major
financial institutions promise to provide sufficient reserve funds so as to satisfy short-term and long-term
capital demand.As of June 30 2025 the Group had no liquidity risk events.
135TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
IX Risks Related to Financial Instruments (Continued)
(3) Market risk
(a) Foreign exchange risk
The Group has carried out various economic activities around the world including manufacturing selling
investment financing etc. and corresponding interest rate fluctuation risks exist in the Group’s foreign
currency assets and liabilities and future foreign currency transactions.The Group always regards "Locking the Cost and Avoiding Possible Risks" as the foreign currency risk
management goal. Through the natural hedging of settlement currency matching with the foreign currency
liabilities signing simple derivative products closely related to the owner's operation and meeting
corresponding hedge accounting treatment requirements and applying other management methods the
foreign currency risk exposure can be controlled within a reasonable scope and the impact of interest rate
fluctuations on the Group's overall profit and loss will be reduced.(a) As at June 30 2025 foreign-currency asset and liability items with significant exposure to exchange risk
were mainly denominated in US dollars. After management the total risk exposure of the US dollar-
denominated items had a net asset exposure of USD 712668000 equivalent to RMB 5101706000 based
on the spot exchange rate on the balance sheet date. The differences arising from the translation of foreign
currency financial statements were not included.The Group applies the following exchange rate of USD against RMB:
Average exchange Exchange rate at
rate period-end
January - June 2025 June 30 2025
USD/RMB 7.1778 7.1586
Provided that other risk variables remained unchanged except for the exchange rate a 5%
depreciation/appreciation in RMB as a result of the changes in the exchange rate of RMB against USD
would cause an increase/decrease of RMB 255085000 in shareholders' equity and net profit respectively
of the Group on June 30 2025.The above-mentioned sensitivity analysis is made based on the assumption that the exchange rate changes
on the balance sheet date and the financial instruments held by the Group on the balance sheet date
exposed to the exchange risk are recalculated based on the changed exchange rate. The above analysis does
not include differences arising from the translation of foreign currency financial statements.(b) Interest risk
The Group's interest rate risk mainly results from interest-bearing bank borrowings adopting floating
interest rates and the Group determined the proportion of fixed interest rates and floating interest rates
based on the market environment and its risk tolerance. By June 30 2025 the Group's liabilities with
floating interest rates accounted for 78.89% of its total interest-bearing liabilities. And the Group will
continuously monitor the interest rates and make corresponding adjustments according to the specific
market changes so as to avoid interest rate risk.
(4) Offset of financial assets and financial liabilities
As at the end of the reporting period the amount offset between the financial assets and financial liabilities
recognized under executable master netting arrangements or similar agreements was RMB 4283269000.
136TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
X Classification of Financial Instruments and Fair Value
Fair value of financial instruments and levels
1 Fair value is divided into the following levels in measurement and disclosure:
Level 1 refers to the (unadjusted) quotation of the same type of assets or liabilities on the active
market; and the Company mainly adopts the closing price as the value of a financial asset. Financial
instruments of level 1 mainly include exchange-listed stocks and bonds.Level 2 refers to the directly or indirectly observable input of a financial asset or liability that does
not belong to level 1.Level 3 refers to the input of a financial asset or liability determined based on variables other than
the observable market data (non-observable input).
2 Basis for determining the market value of items measured at continuous 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 continuous level 2 fair value adopt the following valuation techniques andparameters:
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 continuous level 3 fair value adopt the following valuation techniques andparameters (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.
137TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
X Classification of Financial Instruments and Fair Value (Continued)
5 Financial instruments measured in three levels of fair value
Financial assets
Item Level 1 Level 2 Level 3 Total
Held-for-trading financial assets (see Note
V. 2) 1012691 19980783 3097430 24090904
Derivative financial assets (see Note V. 3) - 168726 - 168726
Receivables financing (see Note V. 6) - - 3959626 3959626
Investments in other equity instruments
(see Note V. 16) 20326 - 393991 414317
Other non-current financial assets (see
Note V. 17) 399029 187520 1987422 2573971
Total assets continuously measured at fair
value 1432046 20337029 9438469 31207544
Financial liabilities
Item Level 1 Level 2 Level 3 Total
Held-for-trading financial liabilities
(see Note V. 31) - 7497 234600 242097
Derivative financial liabilities (see
Note V. 32) - 85376 - 85376
Others - - 201469 201469
Total liabilities continuously measured
at fair value - 92873 436069 528942
138TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions
1 Actual controller and its acting-in-concert parties
Explanation of The Company’s Absence of Controlling Shareholders
Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity Investment Partnership (Limited Partnership) became persons acting
in concert by signing the Agreement on Concerted Action holding 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
Zhonghuan Feilang (Tianjin) Technology Co. Ltd. Joint venture
Huaxia CPV (Inner Mongolia) Power Co. Ltd. Joint venture
Tianjin Huanyan Technology Co. Ltd. Joint venture
TCL Microchip Technology (Guangdong) Co. Ltd. and its subsidiaries Joint venture and its subsidiary
Huizhou TCL Human Resources Service Co. Ltd. and its subsidiaries Joint venture and its subsidiary
Tianjin Zhonghuan Haihe Intelligent Manufacturing Fund Partnership
(Limited Partnership) Associate
Inner Mongolia Xinhuan Silicon Energy Technology Co. Ltd. Associate
LG Electronics (Huizhou) Co. Ltd. Associate
Aijiexu New Electronic Display Glass (Shenzhen) Co. Ltd. Associate
Shanghai Feilihua Shichuang Technology Co. Ltd. Associate
Zhonghuan Aineng (Beijing) Technology Co. Ltd. Associate
Inner Mongolia Xinhua Bandaoti Technology Co. Ltd. Associate
Hubei Changjiang Hezhi Equity Investment Fund Partnership (Limited
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
Jiangsu Jixin Bandaoti Silicon Material Research Institute Co. Ltd. and its
subsidiaries Associate and its subsidiaries
139TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XIX Related Parties and Related-Party Transactions (Continued)
2 2 The nature of related parties without control relationship (continued)
Company name Relationship with the Company
Wuxi TCL Venture Capital Partnership (Limited Partnership) and its subsidiaries Associate and its subsidiaries
Ningbo Dongpeng Weichuang Equity Investment Partnership (Limited Partnership)
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
Shanghai Gen Auspicious Venture Capital Partnership (Limited Partnership) and its
subsidiaries Associate and its subsidiaries
TCL Industries Holdings Co. Ltd. and its subsidiaries Other relationships
Thunderbird Innovation Technology (Shenzhen) Co. Ltd. and its subsidiaries Other relationships
Joint ventures and subsidiaries of TCL Industries Holdings Co. Ltd. Other relationships
3 Major related-party transactions
(1) Selling raw materials and finished goods (Note 1)
January - June 2025 January - June 2024
TCL Industries Holdings Co. Ltd. and its subsidiaries 9933434 10125470
Shenzhen Qianhai Sailing International Supply Chain
Management Co. Ltd. and its subsidiaries 823936 98112
Shenzhen Jucai Supply Chain Technology Co. Ltd. and its
subsidiaries 6979 4065
Zhonghuan Feilang (Tianjin) Technology Co. Ltd. 6130 4674
TCL Microchip Technology (Guangdong) Co. Ltd. and its
subsidiaries 554 26751
Inner Mongolia Xinhuan Silicon Energy Technology Co. Ltd. 203 -
Inner Mongolia Huanye Material Co. Ltd. and its subsidiaries 2 -
Maxeon Solar Technologies Ltd. and its subsidiaries - 726047
LG Electronics (Huizhou) Co. Ltd. - 589
Purplevine Holdings Limited and its subsidiaries - 71
Tianjin Qiyier Communication & Broadcasting Co. Ltd. and its
subsidiaries - 10
1077123810985789
140TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
3 Major related-party transactions (continued)
(2) Purchasing raw materials and finished products (Note 2)
January - June 2025 January - June 2024
Aijiexu New Electronic Display Glass (Shenzhen) Co. Ltd. 1816831 2320232
TCL Industries Holdings Co. Ltd. and its subsidiaries 1200340 918178
Inner Mongolia Xinhuan Silicon Energy Technology Co. Ltd. 1054199 572585
Shenzhen Jucai Supply Chain Technology Co. Ltd. and its
subsidiaries 765742 680552
Shenzhen Qianhai Sailing International Supply Chain
Management Co. Ltd. and its subsidiaries 542826 254202
TCL Microchip Technology (Guangdong) Co. Ltd. and its
subsidiaries 32783 42112
Inner Mongolia Xinhua Bandaoti Technology Co. Ltd. 8879 -
Inner Mongolia Zhongjing Science and Technology Research
Institute Co. Ltd. and its subsidiaries 990 72702
Inner Mongolia Sheng’ou Electromechanical Engineering Co.Ltd. - 152875
Inner Mongolia Huanye Material Co. Ltd. and its subsidiaries - 111848
Purplevine Holdings Limited and its subsidiaries - 11615
Zhonghuan Feilang (Tianjin) Technology Co. Ltd. - 779
54225905137680
141TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
3 Major related-party transactions (continued)
(3) Receiving funding (Note 3)
January - June 2025 January - June 2024
TCL Industries Holdings Co. Ltd. and its subsidiaries 807296 79134
Shenzhen Jucai Supply Chain Technology Co. Ltd. and its
subsidiaries 253330 211045
Huizhou TCL Human Resources Service Co. Ltd. and its
subsidiaries 110826 63758
Shenzhen Qianhai Sailing International Supply Chain
Management Co. Ltd. and its subsidiaries 79720 114904
Wuxi TCL Venture Capital Partnership (Limited Partnership)
and its subsidiaries 5548 5533
Ningbo Dongpeng Weichuang Equity Investment Partnership
(Limited Partnership) and its subsidiaries 649 1486
Yixing Jiangnan Tianyuan Venture Capital Company (Limited
Partnership) and its subsidiaries 606 614
Nanjing Zijin A Dynamic Investment Partnership (Limited
Partnership) and its subsidiaries 377 391
TCL Microchip Technology (Guangdong) Co. Ltd. and its
subsidiaries 1 2
Ningbo Dongpeng Heli Equity Investment Partnership (Limited
Partnership) - 34
Shanghai Gen Auspicious Venture Capital Partnership (Limited
Partnership) and its subsidiaries - 11
1258353476912
(4) Rendering of funds (Note 3)
January - June 2025 January - June 2024
TCL Industries Holdings Co. Ltd. and its subsidiaries 194623 226
194623226
142TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
3 Major related-party transactions (continued)
(5) Leases
January - June 2025 January - June 2024
Rental income
TCL Industries Holdings Co. Ltd. and its subsidiaries 32037 31185
Aijiexu New Electronic Display Glass (Shenzhen) Co. Ltd. 12767 22810
TCL Microchip Technology (Guangdong) Co. Ltd. and its
subsidiaries 1887 2996
Shenzhen Jucai Supply Chain Technology Co. Ltd. and its
subsidiaries 363 282
Jiangsu Jixin Bandaoti Silicon Material Research Institute
Co. Ltd. and its subsidiaries 69 72
Shenzhen Tixiang Business Management Technology Co.Ltd. and its subsidiaries 37 23
Huizhou TCL Human Resources Service Co. Ltd. and its
subsidiaries 34 101
Shenzhen Qianhai Sailing International Supply Chain
Management Co. Ltd. and its subsidiaries 12 7
Inner Mongolia Huanye Material Co. Ltd. and its
subsidiaries - 11519
Zhonghuan Feilang (Tianjin) Technology Co. Ltd. - 517
4720669512
January - June 2025 January - June 2024
Rental expense
TCL Industries Holdings Co. Ltd. and its subsidiaries 23549 27110
Tianjin Huanyan Technology Co. Ltd. 1134 2214
TCL Microchip Technology (Guangdong) Co. Ltd. and its
subsidiaries 30 1379
Huaxia CPV (Inner Mongolia) Power Co. Ltd. - 4732
Inner Mongolia Zhongjing Science and Technology
Research Institute Co. Ltd. and its subsidiaries - 1673
Shenzhen Jucai Supply Chain Technology Co. Ltd. and its
subsidiaries - 123
2471337231
(6) Rendering or receipt of services
January - June 2025 January - June 2024
Rendering of services 165446 163883
Receipt of services 963539 946617
143TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
3 Major related-party transactions (continued)
(7) Collection/Payment of interest (Note 3)
January - June 2025 January - June 2024
Interest received 2818 7806
Interest paid 11033 10358
(8) Remuneration of key management personnel (Note 4)
January - June 2025 January - June 2024
Remuneration of key management personnel 6250 6146
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.
144TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
3 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.
4 Receivables and payables of related parties
(1) Accounts receivable
June 30 2025 December 31 2024
TCL Industries Holdings Co. Ltd. and its subsidiaries 4402213 5317484
Shenzhen Qianhai Sailing International Supply Chain
Management Co. Ltd. and its subsidiaries 125249 164421
Shenzhen Jucai Supply Chain Technology Co. Ltd. and
its subsidiaries 10073 96
Tianjin Zhonghuan Haihe Intelligent Manufacturing
Fund Partnership (Limited Partnership) 9572 2408
Zhonghuan Feilang (Tianjin) Technology Co. Ltd. 3460 2448
TCL Microchip Technology (Guangdong) Co. Ltd. and
its subsidiaries 1730 7829
Inner Mongolia Huanye Material Co. Ltd. and its
subsidiaries 513 2684
Inner Mongolia Xinhuan Silicon Energy Technology
Co. Ltd. 69 98
Inner Mongolia Zhongjing Science and Technology
Research Institute Co. Ltd. and its subsidiaries 65 102
Jiangsu Jixin Bandaoti Silicon Material Research
Institute Co. Ltd. and its subsidiaries - 20
45529445497590
145TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
4 Receivables and payables of related parties (continued)
(2) Receivables financing
June 30 2025 December 31 2024
TCL Microchip Technology (Guangdong) Co. Ltd. and
its subsidiaries - 151
-151
(3) Accounts payable
June 30 2025 December 31 2024
TCL Industries Holdings Co. Ltd. and its subsidiaries 1954552 1708430
Aijiexu New Electronic Display Glass (Shenzhen) Co.Ltd. 1323707 956561
Shenzhen Jucai Supply Chain Technology Co. Ltd. and
its subsidiaries 680576 287678
Shenzhen Qianhai Sailing International Supply Chain
Management Co. Ltd. and its subsidiaries 578753 215975
Inner Mongolia Zhongjing Science and Technology
Research Institute Co. Ltd. and its subsidiaries 69880 46986
TCL Microchip Technology (Guangdong) Co. Ltd. and
its subsidiaries 60479 27786
Inner Mongolia Huanye Material Co. Ltd. and its
subsidiaries 9069 -
Joint ventures and subsidiaries of TCL Industries
Holdings Co. Ltd. 6523 2331
Huizhou TCL Human Resources Service Co. Ltd. and
its subsidiaries 887 57
Purplevine Holdings Limited and its subsidiaries 420 -
Inner Mongolia Xinhua Bandaoti Technology Co. Ltd. 280 -
Zhonghuan Feilang (Tianjin) Technology Co. Ltd. 101 87
Shanghai Feilihua Shichuang Technology Co. Ltd. 9 9
Inner Mongolia Sheng’ou Electromechanical
Engineering Co. Ltd. - 11265
46852363257165
146TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
Related Parties and Related-Party Transactions (Continued)
4 Receivables and payables of related parties (continued)
(4) Other receivables
June 30 2025 December 31 2024
TCL Industries Holdings Co. Ltd. and its subsidiaries 157834 143339
TCL Microchip Technology (Guangdong) Co. Ltd. and its
subsidiaries 6625 2584
Inner Mongolia Zhongjing Science and Technology
Research Institute Co. Ltd. and its subsidiaries 5457 916
Inner Mongolia Xinhuan Silicon Energy Technology Co.Ltd. 4486 -
Shenzhen Qianhai Sailing International Supply Chain
Management Co. Ltd. and its subsidiaries 3989 7051
Shenzhen Jucai Supply Chain Technology Co. Ltd. and its
subsidiaries 3717 4233
Aijiexu New Electronic Display Glass (Shenzhen) Co. 3242 3382
Ltd.Zhonghuan Aineng (Beijing) Technology Co. Ltd. 3103 3053
Inner Mongolia Huanye Material Co. Ltd. and its
subsidiaries 2209 3265
Purplevine Holdings Limited and its subsidiaries 500 -
Jiangsu Jixin Bandaoti Silicon Material Research Institute
Co. Ltd. and its subsidiaries 38 38
Huizhou TCL Human Resources Service Co. Ltd. and its
subsidiaries 31 104
Joint ventures and subsidiaries of TCL Industries Holdings
Co. Ltd. 3 -
Thunderbird Innovation Technology (Shenzhen) Co. Ltd.and its subsidiaries - 900
191234168865
147TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
X
4 Receivables and payables of related parties (continued)
(5) Other payables
June 30 2025 December 31 2024
Tianjin Zhonghuan Haihe Intelligent Manufacturing Fund
Partnership (Limited Partnership) 428100 428100
TCL Industries Holdings Co. Ltd. and its subsidiaries 272718 249033
Huizhou TCL Human Resources Service Co. Ltd. and its
subsidiaries 117374 84285
Shenzhen Jucai Supply Chain Technology Co. Ltd. and its
subsidiaries 84420 55442
Shenzhen Qianhai Sailing International Supply Chain
Management Co. Ltd. and its subsidiaries 66360 102196
Aijiexu New Electronic Display Glass (Shenzhen) Co.Ltd. 9317 9317
Wuxi TCL Venture Capital Partnership (Limited
Partnership) and its subsidiaries 5548 5570
Wuhan Guochuangke Optoelectronic Equipment Co. Ltd. 2025 1714
Tianjin Huanyan Technology Co. Ltd. 1134 1785
TCL Microchip Technology (Guangdong) Co. Ltd. and its
subsidiaries 848 2938
Ningbo Dongpeng Weichuang Equity Investment
Partnership (Limited Partnership) and its subsidiaries 649 662
Yixing Jiangnan Tianyuan Venture Capital Company
(Limited Partnership) and its subsidiaries 606 608
Joint ventures and subsidiaries of TCL Industries Holdings
Co. Ltd. 500 502
Thunderbird Innovation Technology (Shenzhen) Co. Ltd.and its subsidiaries 483 359
Nanjing Zijin A Dynamic Investment Partnership (Limited
Partnership) and its subsidiaries 377 378
China Innovative Capital Management Limited 57 57
Inner Mongolia Zhongjing Science and Technology
Research Institute Co. Ltd. and its subsidiaries 50 60
Ningbo Dongpeng Heli Equity Investment Partnership
(Limited Partnership) 33 66
Shenzhen Tixiang Business Management Technology Co.Ltd. and its subsidiaries 16 16
Jiangsu Jixin Bandaoti Silicon Material Research Institute
Co. Ltd. and its subsidiaries 13 13
Hubei Changjiang Hezhi Equity Investment Fund
Partnership (Limited Partnership) - 345430
Purplevine Holdings Limited and its subsidiaries - 100
Inner Mongolia Huanye Material Co. Ltd. and its
subsidiaries - 60
Inner Mongolia Sheng’ou Electromechanical Engineering
Co. Ltd. - 12
9906281288703
148TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
4 Receivables and payables of related parties (continued)
(6) Non-current liabilities due within one year
June 30 2025 December 31 2024
TCL Industries Holdings Co. Ltd. and its subsidiaries 21611 21695
2161121695
(7) Prepayments
June 30 2025 December 31 2024
TCL Industries Holdings Co. Ltd. and its subsidiaries 16099 23535
Tianjin Huanyan Technology Co. Ltd. 4857 4857
Shenzhen Jucai Supply Chain Technology Co. Ltd. and
its subsidiaries 4572 2715
Inner Mongolia Huanye Material Co. Ltd. and its
subsidiaries 2656 74626
Inner Mongolia Xinhuan Silicon Energy Technology Co.Ltd. 888 1766
Huizhou TCL Human Resources Service Co. Ltd. and its
subsidiaries 22 136
Shenzhen Qianhai Sailing International Supply Chain
Management Co. Ltd. and its subsidiaries 7 1342
29101108977
149TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
4 Receivables and payables of related parties (continued)
(8) Advances from customers
June 30 2025 December 31 2024
TCL Industries Holdings Co. Ltd. and its subsidiaries 202 312
Shenzhen Jucai Supply Chain Technology Co. Ltd. and its
subsidiaries 110 110
312422
(9) Contract liabilities
June 30 2025 December 31 2024
TCL Industries Holdings Co. Ltd. and its subsidiaries 227156 28727
Shenzhen Qianhai Sailing International Supply Chain
Management Co. Ltd. and its subsidiaries 30436 210
25759228937
(10) Lease liabilities
June 30 2025 December 31 2024
TCL Industries Holdings Co. Ltd. and its subsidiaries 25928 33441
2592833441
150TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XI Related Parties and Related-Party Transactions (Continued)
4 Receivables and payables of related parties (continued)
(11) Deposits from related parties (note)
June 30 2025 December 31 2024
TCL Industries Holdings Co. Ltd. and its subsidiaries 807357 4808
Shenzhen Jucai Supply Chain Technology Co. Ltd. and
its subsidiaries 253667 90941
Shenzhen Qianhai Sailing International Supply Chain
Management Co. Ltd. and its subsidiaries 60805 73428
Huizhou TCL Human Resources Service Co. Ltd. and its
subsidiaries 2742 2385
TCL Microchip Technology (Guangdong) Co. Ltd. and
its subsidiaries 1 5000
1124572176562
Note: These deposits are made by related parties in the Company’s subsidiary TCL Technology Group Finance
Co. Ltd.
(12) Other non-current assets
June 30 2025 December 31 2024
Purplevine Holdings Limited and its subsidiaries 49573 71711
TCL Industries Holdings Co. Ltd. and its subsidiaries 20460 21823
7003393534
151TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 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 -
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 10492000 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 Purchase Plan (Phase II) 2021--2023 (Draft) adopted by the resolution of the 19th Meeting of the Seventh-
term Board of Directors and the 14th Meeting of the Seventh-term Board of Supervisors 32.6211 million shares were
granted to no more than 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 June 2024 and a further 15750000 shares were released in
June 2025.
(2) Employee Stock Ownership Plan (Phase III) 2021-2023
According to the Proposal on the Management Measures of the Company’s Employee Stock Ownership Plan (Phase III)
2021-2023 deliberated and adopted at the Second Extraordinary General Meeting of 2023 and the Proposal on the
Company’s Employee Stock Purchase Plan (Phase III) 2021-2023 (Draft) adopted by the resolution of the 32nd Meeting of
the Seventh-term Board of Directors and the 21st Meeting of the Seventh-term Board of Supervisors 64.99 million shares
were granted to no more than 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 June 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.
On May 30 2025 the Management Committee of the 2024 Shareholding Plan approved the vesting of a total of 117.99
million shares to the holders of the current phase shareholding plan based on the company's performance the performance
of its subordinate operating units and the achievement of individual performance targets.The vesting arrangement of the restricted stock granted under the above incentive plan is shown in the following table:
Number of Vesting period and ratio
times
After 12 months from the date of vesting of the holder's respective quota of the underlying shares
First non-trade the Shareholding Plan may decide whether to sell 50% of the shares or to transfer 50% of the
transfer or sale holder's respective shares to the account of the holder of the Shareholding Plan provided that suchtransfer and sales are then supported by the systems of SZSE and the Registration and Settlement
Corporation;
After 24 months from the date of vesting of the holder’s respective quota of the underlying shares
Second non- the Shareholding Plan may decide whether to sell 50% of the shares or to transfer 50% of the
trade transfer or holder’s respective shares to the account of the holder of the Shareholding Plan provided that such
sale transfer and sales are then supported by the systems of SZSE and the Registration and Settlement
Corporation.
152TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XII Share-based Payments (Continued)
2 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 277293000
reserve
Total expense recognized for equity-settled
share-based payments in the current period RMB 155980000
3 The Company has no cash-settled share-based payments.
4 The Company has no share-based payment modification or termination.
5 Share-based payments by the controlling subsidiary TZE
（1）Stock option
No stock option matters occurred during H1 2025.
（2）Employee stock ownership plan
On August 30 2022 TZE held its second extraordinary general meeting of 2022 where the Proposal on the
Employee Stock Ownership Plan (Draft) and Its Summary for 2022 (hereinafter referred to as the "2022
Employee Stock Ownership Plan") were deliberated and adopted. TZE held the 22nd Meeting of the 6th-term
Board of Directors on January 11 2022 where it deliberated on and adopted the Proposal on Repurchasing the
Company's Shares. The Company repurchased a total of 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 TZE 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.The lock-up period of TZE’s 2023 Employee Stock Ownership Plan expired on June 8 2024. Due to the failure
of key performance indicators according to the provisions of the 2023 Employee Stock Ownership Plan the
shares of 14391980 shares of the target stock corresponding to the 2023 Employee Stock Ownership Plan (the
total number of shares after the implementation of the capital increase in 2022 was 17989975 shares) and all
the corresponding dividends and other rights and interests were owned by TZE no longer by the holders. The
current Employee Stock Ownership Plan Management Committee chose an opportunity to sell before the
expiration of the 2023 Employee Stock Ownership Plan and the sold equity was attributable to TZE.
153TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XII Share-based payments (continued)
5 Share-based payments by the controlling subsidiary TZE (continued)
（2）Employee stock ownership plan (continued)
TZE held the 43rd Meeting of the 6th-term Board of Directors on October 25 2023 where it deliberated on and
adopted the Proposal on Repurchasing the Company's Shares. The Company repurchased a cumulative number
of 4999968 shares by means of centralized bidding through the special securities account for repurchasing
shares using them to implement the employee stock ownership plan or equity incentive.
（3）Equity-settled share-based payments
Key parameters of the fair value of equity instruments
on the grant date Stock Price
On each balance sheet date during the waiting
period the best estimates were made according
to the latest subsequent information such as
Basis for determining the number of exercisable equity changes in the number of employees with
instruments exercisable stock options and the completion of
performance indicators and the estimated
number of equity instruments with exercisable
stock options was revised.Reasons for significant differences between current and
previous estimates None
Accumulated amount of equity-settled share-based
payment included in capital reserve RMB 753594000
Total expense recognized for equity-settled share-based
payments in the current period RMB 56955000
（4）TZE has no cash-settled share-based payments.
（5）Payment of TZE for shares in current period
In 2023 the key performance indicators of the employee stock ownership plan were not achieved and
the shares were not granted for which costs and expenses were not recognized; in January-June 2025
the costs and expenses recognized for the employee stock ownership plan in 2022 amounted to RMB
56955000 (2024: RMB 195804000; 2023: RMB 150559000; 2022: None).
（6）Payment of Tianjin Printronics for shares in current period
On June 12 2025 Tianjin Printronics received the Securities Transfer Registration Confirmation
Notice issued by the Shenzhen Branch of China Securities Depository and Clearing Corporation
Limited confirming the completion of the first non-trading transfer of certain shares of holders under
the 2023 Employee Stock Ownership Plan. A total of 757141 shares were transferred representing
0.31% of the company's total share capital. This included non-trading transfers of 193350 shares to
the company's directors supervisors and senior management and 563791 shares to other holders.
154TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XIII Commitments
1 Capital commitments
June 30 2025
Contracted but not provisioned Note 1 18268566
Approved by the Board but not contracted Note 2 480745
18749311
Note The capital commitments under contractual obligations but not provided for in the current period primarily
1 consisted of such commitments for construction of investment projects and external investments.
Note The capital commitments approved by the Board of Directors but not under contractual obligations in the
2 current period primarily consist of such commitments for display business projects.
As of June 30 2025 apart from the disclosures above there were no other major commitments that are
required to be disclosed.XIV Contingencies
Guarantees Provided for External Parties
As of June 30 2025 the guarantee provided by the Company for the related party’s bank loans commercial
drafts letters of credit etc. was RMB 2555934000 which is listed in details as below:
Obligor Actual guarantee Type of Actual occurrence
Remaining Fulfilled
amount guarantee date term ofguarantee or not
Aijiexu New Electronic Joint
Display Glass (Shenzhen) 159344 liability April 28 2020 3.3-5 years No
Co. Ltd. guarantee
Shenzhen Qianhai Sailing Joint
International Supply Chain 485850 liability January 8 2025 8-250 days No
Management Co. Ltd. guarantee
Inner Mongolia Xinhua Joint
Bandaoti Technology Co. 380000 liability May 22 2023 4.9 years No
Ltd. guarantee
Inner Mongolia Xinhuan Joint
Silicon Energy Technology 1530740 liability June 15 2023 4 years No
Co. Ltd. guarantee
2555934
As of June 30 2025 the amount of credit granted by the Group for the note discounting note acceptance and non-
financing guarantees of related parties was RMB 1237657000.
155TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XV Events after the Balance Sheet Date
1 Pursuant to the Reply on Approving TCL Technology Group Corporation's Issuance of Shares to Purchase
Assets and Raise Supporting Funds (CSRC Permit [2025] No. 1326) issued and approved by the China
Securities Regulatory Commission (CSRC) the CSRC has permitted the company's application to issue
986292106 shares to Shenzhen Major Industrial Development Phase I Fund Co. Ltd. (hereinafter referred
to as the "Major Industry Fund") for the purchase of related assets and to raise supporting funds of up to
RMB 4359411108.52 through the share issuance.As of August 22 2025 the company completed the issuance of 986292106 shares to the Major Industry
Fund to acquire its 21.5311% equity interest in Shenzhen China Star Optoelectronics Bandaoti Display
Technology Co. Ltd. and raised supporting funds of up to RMB 4359411106.54 through the issuance of
1035489574 shares.
2 On July 1 2025 TCL Tech completed the issuance of the Phase III of Sci-Tech Innovation Bonds in 2025
with an issue size of RMB 2 billion a term of 181 days and an issue interest rate of 1.7% per annum with
interest accruing from 2 July 2025.XVI Other Important Matters
(I) Segment reporting
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 the R&D production and sales
(2) of monocrystalline silicon ingots and silicon wafers cells and modules and other silicon materials and devices;
the development and operation of photovoltaic power stations.
(3) Distribution business: mainly includes the sales of computers software tablet computers mobile phones and
other electronic products.
(4) Other businesses: other businesses besides the above including industrial finance and investment business
technology development services and patent maintenance services provided by the company etc.Segment assets include all current assets such as tangible assets intangible assets other long-term assets and
receivables attributable to each segment. Segment liabilities include payables bank loans and other long-term
liabilities attributable to each segment.Segment operating results refer to the income generated by each segment (including external transactions
income and inter-segment transaction income) net of expenses incurred by each segment depreciation
amortization and impairment loss of assets attributable to each segment gains or losses from changes in fair
value return on investment non-operating income and income tax expenses. Transfer pricing of inter-segment
income is calculated on terms similar to other foreign transactions.
156TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XVI Other Important Matters (Continued)
(I) Segment reporting (continued)
2 Financial information of reporting segments
For the six-month period ending June 30 2025
New energy Other
Display photovoltaics and Distribution businesses and
Total
business other silicon business internally offset
materials business accounts
Operating revenue 57550503 13398123 14674516 (63138) 85560004
Net profits 4613425 (4836171) 67956 186473 31683
Total assets 220928986 124816914 8138505 46585058 400469463
Total liabilities 140268533 83049766 6512614 41296393 271127306
Depreciation and
amortization 11641845 4407930 23168 9460 16082403
expenses
Capital expenditure 4764762 3295997 1606 251608 8313973
For the six-month period ending June 30 2024
New energy Other
Display photovoltaics and Distribution businesses and
Total
business other silicon business internally offset
materials business accounts
Operating revenue 49877063 16213493 13649333 483848 80223737
Net profits 2696011 (3175764) 62945 (51341) (468149)
Total assets 221429601 125196373 7801619 27905947 382333540
Total liabilities 146688074 69260983 6310452 21837841 244097350
Depreciation and
amortization 11058768 3973499 33097 32611 15097975
expenses
Capital expenditure 8363469 3450381 4473 582947 12401270
157TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XVII Notes to the key items presented in the financial statements of the Company
1 Accounts receivable
June 30 2025 December 31 2024
Amount Ratio Bad-debt AccrualAllowance Ratio Amount Ratio
Bad-debt Accrual
Allowance Ratio
Within 1
year 48882 100% 136 0.28% 185375 100% 136 0.07%
2 Other receivables
June 30 2025 December 31 2024
Other receivables 10492989 9910856
104929899910856
(a) Nature of other receivables is analyzed as follows:
June 30 2025 December 31 2024
Equity transfer receivables 610 610
Security and deposits 2820 3110
Others 10489559 9907136
104929899910856
(b) Allowance for doubtful other receivables is analyzed as follows:
12-month Lifetime ECL (credit Lifetime ECL (credit
ECL not impaired) impaired) Total
December 31 2024 1503 - 32767 34270
Accrued in the
period - - 5396 5396
Reversal of current
period (18) - - (18)
Write-off of current
period (10) - - (10)
June 30 2025 1475 - 38163 39638
158TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XVII Notes to Financial Statements of the Parent Company (Continued)
2 Other receivables (continued)
(c) The aging of other receivables is analyzed as follows:
June 30 2025 December 31 2024
Amount Ratio Amount Ratio
Within 1 year 9089515 86.30% 8311481 83.57%
1 to 2 years 1244115 11.81% 824092 8.29%
2 to 3 years 55056 0.52% 461602 4.64%
Over 3 years 143942 1.37% 347951 3.50%
10532628100%9945126100%
The outstanding other receivables were mostly current accounts with related parties.The top five other receivables of the Company amounted to approximately RMB 9403152000 (December
31 2024: RMB 9779966000) accounting for 89.28% of the total other receivables of the Company
(December 31 2024: 98.34%).
3 Long-term equity investments
June 30 2025 December 31 2024
Gross Impairment Carrying Gross Impairment Carrying
amount allowance amount amount allowance amount
Associates and joint
ventures (1) 17842845 - 17842845 17281616 - 17281616
Subsidiaries (2) 65764044 - 65764044 63780785 - 63780785
83606889-8360688981062401-81062401
As of June 30 2025 there are no major restrictions on the realization of investment and the remittance of
return on long-term equity investments.
159TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XVII Notes to Financial Statements of the Parent Company (Continued)
3 Long-term equity investments (continued)
(1) Associates and joint ventures
Increase or decrease in current period
Increase/ Investment gains Other Other
December 31 decrease in and losses comprehensive Other Declared cash increases
2024 investment in recognized by income equity dividends or June 30 2025
current period equity method adjustment changes profits
and
decreases
Joint venture 283595 27835 (46097) - 1153 - - 266486
Associate
Bank of Shanghai Co. Ltd. 14740146 - 738558 (47923) 17 (179937) - 15250861
Others 2257875 (70431) 173526 76 175 (35723) - 2325498
Total of associates 16998021 (70431) 912084 (47847) 192 (215660) - 17576359
Total 17281616 (42596) 865987 (47847) 1345 (215660) - 17842845
160TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XVII Notes to Financial Statements of the Parent Company (Continued)
3 Long-term equity investments (continued)
(2) Subsidiaries
December 31 Increase in Decrease
2024 current period in current June 30 2025period
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 55664 - (184) 55480
Partnership)
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 40000 - 673897
TCL Internet Technology (Shenzhen) Co.Ltd. 15000 - - 15000
Ningbo TCL Equity Investment Ltd. 300000 - - 300000
TCL Technology Investments Limited 3348778 116784 - 3465562
Huizhou Dongshen Jia’an Equity
Investment Partnership (Limited 221000 424000 - 645000
Partnership)
TCL Financial Technology (Shenzhen)
Co. Ltd. 15036 - - 15036
Zhonghuan Advanced Bandaoti
Technology Co. Ltd. 1790312 - - 1790312
Equity incentives of subsidiaries 203416 33593 - 237009
637807851983443(184)65764044
For the registered capital of subsidiaries and the Company’s equity interests in the subsidiaries see Note VIII.
161TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XVII Notes to Financial Statements of the Parent Company (Continued)
4 Other non-current financial assets
June 30 2025 December 31 2024
Equity investments 399303 423060
Debt investments 187521 300483
586824723543
5 Operating revenue and operating cost
January - June 2025 January - June 2024
Operating Operating Operating Operating
revenue cost revenue cost
Core business 10227 2288 386446 380021
Non-core business 176239 89824 312857 69585
18646692112699303449606
6 Return on investment
January - June 2025 January - June 2024
Revenue from long-term equity investment accounted for
using the equity method 865987 580697
Net income from disposal of long-term investments - 51495
Return on holding of held-for-trading financial assets 82655 176467
Return on disposal of held-for-trading financial assets (2133) -
Revenue from long-term equity investment accounted for
using the cost method 327893 87000
1274402895659
XVIII Comparative Figures
Certain comparative data have been reclassified to comply with the presentation of the current period.
162TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XIX Non-recurring profit and loss items and amount
January - June 2025 January - June 2024
Gain or loss on disposal of non-current assets (inclusive of
impairment allowance write-offs) (20061) 48439
Public subsidies charged to current profits and losses (exclusive of
public grants closely related to the Company’s normal business
operations in compliance with national policies enjoyed according 633215 972603
to determined criteria and with a continuous impact on the
Company’s profits and losses)
The profits or losses generated from changes in fair value arising
from financial assets and financial liabilities held by non-financial
enterprises and the profits or losses from the disposal of such
financial assets and financial liabilities except for the effective 18446 (3310)
hedging business related to the company’s normal business
operations
Reversal of provision for impairment of receivables that have been
individually tested for impairment 27616 30500
Non-operating income and expenses other than the above 126891 258631
Income tax effects (84754) (156219)
Non-controlling interests effects (376588) (714189)
Non-recurring gains and losses attributable to ordinary shareholders
of the parent company 324765 436455
According to the relevant provisions of the Interpretative Announcement No. 1 on Information Disclosure by
Companies Issuing Securities to the Public - Non-recurring Profits and Losses (Revised in 2023) public grants
closely related to the Company’s normal business operations in compliance with national policies enjoyed
according to determined criteria and with a continuous impact on the Company’s profits and losses shall be
presented as recurring profits and losses.
163TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30 2025
___________(RMB’000)_____________
XX Weighted Average Return on Equity (ROE) and Earnings per Share (EPS)
The Company calculates the ROE and EPS as follows in accordance with the Compilation Rules No. 9 for
Information Disclosure of Companies Offering Securities to the Public-Calculation and Disclosure of Return on
Equity and Earnings per Share (Revised in 2010) issued by the China Securities Regulatory Commission and
relevant provisions of accounting standards:
Net profits Earnings per share (RMB: yuan)
attributable to
the parent Weighted
Item company average
during the return on Basic earnings Diluted earnings
Reporting equity per share per share
Period
Net profits attributable to ordinary
shareholders of the Company 1883500 3.54% 0.1014 0.1003
Net profits attributable to ordinary
shareholders of the Company
before non-recurring gains and 1558735 2.93% 0.0839 0.0830
losses
164Full Text of the 2025 Interim Report of TCL Technology Group Corporation
Part IX Other Data Submitted
I. Other Major Social and Security Issues
Whether there were any other major social and security issues involving the listed company and its subsidiaries
□Yes □No ?Not applicable
Whether there were any administrative penalties imposed during the Reporting Period
□Yes □No ?Not applicable
The Company was not subject to any significant administrative penalties during the Reporting Period.II. Record of Communications with the Investment Community such as Research Inquiries
and Interviews during the Reporting Period
?Applicable □Not applicable
Type of Primary focus of
Time of Manner of Communica Index of the main information
Location communication the discussion and
reception communication tion party communicated
party materials provided
Conference
Annual Log Sheet No. 2025-001 on Investor
Room of
April 29 Individuals All performance and Relations Activities dated April 29 2025
TCL Web conferencing
2025 institutions etc. investors operations of TCL disclosed by the Company at
TECH. in
TECH. for 2024 www.cninfo.com.cn on April 29 2025.Shenzhen
Contents and
January - The Individuals
Investor hotline Individuals public information
June Company's institutions -
(telephone) institutions etc. etc. disclosed by
2025 office etc.
the Company
Contents and
January - The Individuals
Individuals public information
June Company's irm.cninfo.com.cn institutions irm.cninfo.com.cn
institutions etc. etc. disclosed by
2025 office etc.
the Company
III. Capital Transactions between the Listed Company and its Controlling Shareholder and
Other Related Parties
?Applicable □Not applicable
For more details please refer to the section "Transactions Between the Financial Company Controlled by the Company and Related
Companies" in this Report and the Summary Table of Non-Operating Fund Occupancy and Other Related-Party Fund Transactions
for the First Half of 2025 disclosed on the same day as this Report.No occupation of the Company's funds by the controlling shareholder or any of its related parties for non-
operation purposes during the Reporting Period.TCL Technology Group Corporation
August 28 2025
222
沪公网安备31011802005267号
