Full Text of the 2026 Interim Report of TCL Technology Group Corporation
TCL 科技集团股份有限公司
TCL Technology Group Corporation
INTERIM REPORT 2026
August 2026
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the "Board"), the directors and senior
management of TCL Technology Group Corporation (hereinafter referred to
as the "Company") hereby guarantee the factuality, accuracy and
completeness of the contents of this Interim Report and its summary, and shall
be jointly and severally liable for any misrepresentations, misleading
statements or material omissions therein.
Mr. Li Dongsheng, the person-in-charge of the Company, Ms. Li Jian, the
person-in-charge of financial affairs (Chief Financial Officer), and Ms. Jing
Chunmei, the person-in-charge of the financial department, hereby guarantee
that the financial statements carried in this Interim Report are factual,
accurate, and complete.
All the Company’s directors attended the Board meeting for the review of
this Interim Report and its summary.
The future plans, development strategies or other forward-looking
statements mentioned in this Report and its summary shall NOT be considered
as promises of the Company to investors. Therefore, investors are kindly
reminded to pay attention to possible investment risks.
The Company does not propose to pay interim cash dividends, issue bonus
shares or convert capital reserves into share capital for this interim period.
This Report and its summary have been prepared in both Chinese and
English. Should there be any discrepancies or misunderstandings between the
two versions, the Chinese version shall prevail.
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Table of Contents
Full Text of the 2026 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.
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Definitions
Term Refers to Definition
The “Company”, the “Group”, “TCL”,
Refers to TCL Technology Group Corporation
“TCL TECH.”, or “we”
The “Reporting Period”, “current period” Refers to The period from January 1, 2026 to June 30, 2026.
TCL CSOT Refers to TCL China Star Optoelectronics Technology Co., Ltd.
TCL Zhonghuan Renewable Energy Technology Co., Ltd., a majority-
TZE Refers to owned subsidiary of the Company listed on the Shenzhen Stock Exchange
(stock code: 002129.SZ)
Zhonghuan Advanced Refers to Zhonghuan Advanced Bandaoti Technology Co., Ltd.
Moka Technology Refers to Moka International Limited
Tianjin Printronics Circuit Corporation, a majority-owned subsidiary of the
TPC Refers to
Company listed on the Shenzhen Stock Exchange (stock code: 002134.SZ)
Highly Information Industry Co., Ltd., a holding subsidiary of the
Highly Refers to
Company listed on the National Equities Exchange and Quotations
t1 Refers to The generation 8.5 (or G8.5) TFT-LCD production line at TCL CSOT
The generation 8.5 (or G8.5) TFT-LCD (oxide) production line at TCL
t2 Refers to
CSOT
The generation 6 (or G6) LTPS-LCD panel production line at Wuhan
t3 Refers to
CSOT
The generation 6 (or G6) new LTPS-AMOLED display production line at
t4 Refers to
Wuhan CSOT Bandaoti
t5 Refers to The generation 6 (or G6) new display production line at Wuhan CSOT
The generation 11 (or G11) new TFT-LCD display production line at
t6 Refers to
Shenzhen CSOT Bandaoti
The generation 11 (or G11) new ultra high definition display production
t7 Refers to
line at Shenzhen CSOT Bandaoti
t8 Refers to The generation 8.6 (or G8.6) printed OLED production line at TCL CSOT
The generation 8.6 (or G8.6) new oxide display production line at
t9 Refers to
Guangzhou CSOT
t10 Refers to The generation 8.5 (or G8.5) TFT-LCD production line at Suzhou CSOT
The generation 8.5 (or G8.5) TFT-LCD production line at Guangzhou
t11 Refers to
CSOT
The generation 5.5 (or G5.5) printed OLED production line at Wuhan
t12 Refers to
CSOT
RMB Refers to Renminbi
Full Text of the 2026 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
Stock abbreviation before change
(if any)
Place of listing Shenzhen Stock Exchange
Company name in Chinese TCL 科技集团股份有限公司
Abbr. (if any) TCL 科技
Company name in English (if any) TCL Technology Group Corporation
Abbr. in English (if any) TCL TECH.
Legal representative Li Dongsheng
II. Contact Information
Board Secretary
Name Liao Qian
Office address
Shenzhen, Guangdong Province, China
Tel. 0755-33311666
Email address ir@tcl.com
III. Other Information
Whether the registered address, office address and their zip codes, website address and email address of the Company changed
during the Reporting Period
□Applicable Not applicable
No changes occurred to the registered address, office address and their zip codes, website address, email address and other contact
information of the Company during the Reporting Period. Please refer to the 2025 Annual Report for details.
Whether the media for information disclosure and place where this Report is lodged changed during the Reporting Period
□Applicable Not applicable
No changes occurred to the name and website of the stock exchange website and media on which the Company discloses its
Interim Report and the place for lodging such reports during the Reporting Period. Please refer to the 2025 Annual Report for
details.
Whether other information changed during the Reporting Period
□Applicable Not applicable
Full Text of the 2026 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 2026 H1 2025 Change
Operating revenue (RMB) 88,648,186,929 85,560,004,497 3.61%
Net profits attributable to the
company's shareholders 3,808,272,967 1,883,499,452 102.19%
(RMB)
Net profits attributable to the
company's shareholders after
non-recurring gains and
losses (RMB)
Net cash generated from
operating activities (RMB)
Basic earnings per share
(RMB/share)
Diluted earnings per share
(RMB/share)
Weighted average return on Increase by 2.65 percentage
equity (%) points YoY
End of the Reporting Period December 31, 2025 Change
Total assets (RMB) 365,144,968,892 372,738,314,312 -2.04%
Net assets attributable to
shareholders of the listed 63,567,789,134 61,432,756,524 3.48%
company (RMB)
V. Accounting Data Differences under Chinese Accounting Standards for Business
Enterprises (CAS), International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
□Applicable Not applicable
There is no difference in net profits and net assets between the financial statements prepared in accordance with IFRS and CAS for
the Reporting Period of the Company.
□Applicable Not applicable
There is no difference in net profits and net assets between the financial statements prepared under CAS, IFRS and Foreign
Accounting Standards for the Reporting Period of the Company.
□Applicable Not applicable
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
VI. Non-Recurring Gains and Losses
Applicable □Not applicable
Unit: RMB
Item Amount
Gains and losses on disposal of non-
current assets (inclusive of impairment 532,067,903
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, 1,225,850,236
are granted based on determined
standards, and have a continuous impact
on the Company's gains and losses)
The profits or losses generated from
changes in fair value arising from
financial assets and financial liabilities
held by non-financial enterprises and the
profits or losses from the disposal of such -59,051
financial assets and financial liabilities,
except for the effective hedging business
related to the Company’s normal business
operations
Reversal of impairment provisions for
receivables subject to individual -
impairment testing
Non-operating income and expenses other
than the above
Other gain and loss items that meet the
definition of non-recurring gains and -
losses
Less: Amount affected by income tax 288,121,804
Amount affected by equity of
minority shareholders (net of tax)
Total 668,390,650
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.
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Part III Management Discussion and Analysis
I. Main Businesses of the Company during the Reporting Period
Since the start of the year, escalating international geopolitical conflicts and surging upstream
energy prices have reignited upward pressure on inflation. Against this backdrop, the momentum
of global economic growth has weakened, with macroeconomic uncertainties increasing
substantially. In the face of external challenges, the Company focused on three key business
pillars, including displays, new energy photovoltaics, and other silicon materials. We
continuously strengthened the operations barriers characteristic of high-tech, heavy-asset, and
long-cycle industries, anchored our leading strategy, and pursued sustainable high-quality
development.
During the Reporting Period, the Company achieved operating revenue of RMB 88.65 billion,
representing a year-on-year increase of 3.6%. Net profit attributable to shareholders of the
Company amounted to RMB 3.81 billion, representing a substantial year-on-year surge of 102.2%,
while operating cash flow reached RMB 17.62 billion. As of the end of the Reporting Period, the
Company’s debt-to-asset ratio stood at 65.0%, an increase of 0.8 percentage points from the end
of the previous Reporting Period; cash and cash equivalents at the end of the Reporting Period
were RMB 22.22 billion.
II. Operations Performance of the Company's Core Businesses During the Reporting Period
The Company was deeply engaged in leading edge manufacturing industries characterized by
high technology, heavy assets, and long cycles with displays, new energy photovoltaics, and other
silicon materials at its core, and continuously promoted technological innovation and industrial
advancement supporting the strategic goals of global leadership.
(I) Display Business
Industry Development and Operating Performance
In the first half of 2026, the global display industry generally maintained stable operations.
Affected by geopolitical conflicts and rising raw material and memory prices, user-end demand
for consumer electronics came under temporary pressure, with shipments of products such as
smartphones and notebook computers posting a decline. Meanwhile, trends toward larger‑ size
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TVs, multi‑ display deployments of vehicle‑ mounted devices, and growing penetration of
high‑ end displays continued to underpin area‑ based demand for display panels. According to
third-party forecasts, the total shipment area of global display panels is expected to remain
broadly flat in 2026, while demand for TV and vehicle‑ mounted display panels is set to rise by
roughly 2% and 6% respectively. The industry is projected to follow a development pattern
characterized by “pressure on shipment volume, stable shipment area, and structural upgrading.”
The LCD industry continued to pursue an on-demand production strategy, while inefficient
overseas capacity was phased out. The trend toward larger and higher-end TVs, as well as the
expansion of applications such as commercial and vehicle-mounted displays, continued to drive
growth in demand for panel area. Leveraging its mature industrial ecosystem, significant cost
advantages, and continuous iteration capabilities, LCD further consolidated its mainstream
position in the large-sized display segment. OLED accelerated its penetration into the
medium‑ size segment, covering notebook computers, tablets, monitors, and vehicle-mounted
displays. Mini‑ LED saw accelerated adoption, while Micro‑ LED continued its exploration
toward industrialization. Against the backdrop of an evolving supply landscape, expanding
application scenarios and accelerated industrialization of new technologies, industry‑ wide
competition has shifted away from capacity expansion toward a contest of comprehensive
strength centered on technological innovation, product value, operating efficiency and cash‑ flow
quality.
During the Reporting Period, amid external pressures from rising memory prices and
diverging terminal demand, the Company remained committed to value-oriented operations,
under the core theme of “on-demand production, structural optimization, and efficiency
enhancement.” TCL CSOT achieved operating revenue of RMB 50.27 billion and net profit of
RMB 3.90 billion. Net profit attributable to shareholders of TCL TECH. amounted to RMB 3.28
billion, representing a year-on-year increase of 24.8%. The earlier acquisition of minority
interests in Shenzhen CSOT Bandaoti increased the Company’s equity interests in the core t6 and
t7 assets, thereby enhancing the contribution of these quality assets to profits attributable to
shareholders of the listed company. The acquisition of the minority interests in t9 progressed
smoothly, with the equity transfer recently completed. This transaction will further enhance the
contribution of the quality t9 asset to profits attributable to shareholders of the listed company.
(1) LCD Business Maintained Its Stable Leading Position, While IT and Vehicle-
Mounted Display Businesses Achieved Rapid Growth
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Leveraging its portfolio of large-, medium-, and small-sized production lines, the Company
continued to optimize its product and customer mix. In the large-sized display segment, the
Company capitalized on the trend toward larger and higher-end TVs. During the Reporting Period,
the average shipment size of its TV panels reached 55.3 inches, 2.9 inches above the industry
average. Through coordination across multiple production lines, improved manufacturing
efficiency and refined supply chain management, the Company further enhanced the profitability
of its LCD business.
In the medium‑ size segment, as t9 further released its capacity and strengthened capacity
coordination with t11, shipments of high‑ end products including high‑ mobility oxide displays
grew rapidly, driving t9’s net profit to more than double year‑ on‑ year. The Company
maintained its global No.1 market share in e‑ sports monitor panels. It launched the world’s first
native 1080p 1000Hz monitor. Building on its leading position in the consumer e‑ sports market,
it further forayed into the professional e‑ sports segment and became the official display for the
technology—from conventional oxide to high-mobility oxide 30 and further to ultra-high-
mobility oxide 50—and realized large-scale adoption in mainstream tablet devices. These
technological and product strengths drove market share gains against broader market headwinds.
Notebook panel shipments to leading customers ramped up smoothly and grew rapidly. In the
second quarter, the Company lifted its global notebook‑ panel ranking from fourth to second,
while retaining the world’s‑ second‑ largest market share for tablet panels. Breakthroughs in
medium‑ sized panels including notebook panels marked TCL CSOT’s successful forging of a
second growth engine for its display business. This further refined its full‑ size application
footprint and reinforced its position as a comprehensive leader in the display industry.
The vehicle-mounted devices maintained rapid growth, becoming the fastest-growing
segment of the Company’s medium-sized display business. The Company’s share of LTPS
vehicle-mounted panel shipment area has remained the largest worldwide since Q4 2025, while its
shipment volume grew by more than 50% year on year in H1 2026. The Company continued to
expand to cover high-value applications such as rear-seat displays, armrest displays, and P-HUDs,
accelerating its evolution from a supplier of stand‑ alone display products to a provider of
integrated display solutions for intelligent cockpits. Its innovative “Safe Driving Triple-Screen”
solution extended cockpit safety from passive protection to active sensing and coordinated
interaction. By capitalizing on the growth in exports by Chinese automakers and achieving
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breakthroughs with internationally renowned automakers, the Company continued to optimize the
customer and regional mix of its vehicle-mounted devices. Revenue increased by 46% year on
year, further enhancing its capabilities in serving and managing customers globally.
(2) FMM OLED Came Under Periodic Pressures, While Operating Quality Improved
Quarter by Quarter
Affected by rising memory prices and weakening smartphone demand, the FMM OLED
business came under periodic pressures and recorded greater losses. The Company sharpened its
focus on high-value-added technologies (foldable displays, LTPO, PLP, privacy displays, and
Tandem) and expanded into diverse applications such as tablets, wearables, and
vehicle‑ mounted displays. It also drove progress in material localization, yield improvement,
and cost control. In Q2, the OLED business’s operating margin improved quarter on quarter, with
operating quality rising steadily.
The Company has successfully ramped up mass production and deliveries of foldable
products to branded customers, demonstrating end‑ to‑ end capabilities across technology R&D,
customer qualification, and high‑ volume manufacturing. Looking ahead, the Company will
capitalize on market opportunities for foldable products and continue to expand its coverage of
brand customers and mass-production projects. Meanwhile, the Company has been steadily
advancing key technological iterations in areas such as panel structure, support materials, hinge
compatibility, and film-layer design. These efforts are aimed at further improving crease
performance, reliability, and display quality, thereby continuously enhancing product
competitiveness and expanding market share.
(3) Commercialization of Printed OLED and MLED Progressed in an Orderly Manner
The Company, in collaboration with MSI, has jointly launched the industry's first printed
OLED desktop monitor targeting the mainstream consumer market, marking a pivotal expansion
of printed OLED commercialization from professional-grade displays into the consumer
electronics segment. Currently, the yield and cost of the relevant products have reached the
standards required for mature mass production. The Company is advancing the validation of
printed OLED products for IT applications—including monitors and notebooks—with multiple
leading end‑ device brands, with all developments in full alignment with mainstream market
specifications. Product maturity and commercial validation results have already met the
mass‑ production requirements of tier‑ 1 customers. Leveraging the t12 production line, the
Company achieved volume production and shipment of IT e-sports products. Multiple projects
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will successively enter mass production during the year, steadily expanding customer coverage
and laying the groundwork for the large-scale production of t8. On May 8, 2026, the main
structure of the Guangzhou t8 project reached its topping-out milestone ahead of schedule, and
mass production is expected to commence in Q4 2027. Going forward, t8 will leverage its scale
manufacturing advantages to primarily serve mainstream consumer electronics, while t12 will
target differentiated, high‑ value‑ added products. This will deliver a well‑ coordinated
capacity layout with complementary functional roles.
In the MLED business, the Company completed the equity transfer of Fujian Zhaoyuan
Optoelectronics Co., Ltd. and renamed it Fuzhou Huazhao Optoelectronics Co., Ltd. The
integration of upstream LED chip technologies and capacity began to deliver results, driving a
significant improvement in operating performance. In July, the Company established Shenzhen
Huazhao Xingguang Technology Co., Ltd. to accelerate the development of advanced LED chip
and packaging capacity, further improving its vertically integrated “chip-packaging-module”
layout. Phase I of the Suzhou COB direct‑ display project has achieved full‑ capacity
production. Core equipment for Phase II began moving‑ in in May, with mass production
commenced in August. Going forward, the Company will continue to upgrade its Mini LED
backlight and direct-display products and strengthen upstream and downstream coordination in
technology, capacity, and customer development, thereby enhancing cost competitiveness and
market performance.
(4) AI Deeply Empowered the Operating System, While New Businesses Achieved
Breakthroughs on Multiple Fronts
The Company continued to advance its “AI for Real-World Applications” initiative.
Underpinned by its five-star AI architecture comprising “one data lake, one large model, and three
platforms,” it embedded AI across material R&D, product design, process optimization, quality
management, supply chains, and operating decisions, shifting R&D from an experience-driven
approach toward one powered by data and models and advancing manufacturing from automation
and digitalization toward intelligence.
New businesses achieved breakthroughs on multiple fronts, while the specialized display
business maintained rapid growth. LTPS projector products secured a top‑ two position in the
industry by market share. Following the acquisition of Hunan Chuangke Photoelectric, the
Company accelerated development of LCOS projection and 3D‑ printing light‑ engine
technologies. For its e‑ paper business, it built a dual‑ site manufacturing footprint, with a
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domestic site for medium‑ and large‑ sized products and a Vietnamese site for small‑ sized
products. The Company commenced construction of a vehicle-mounted dimming glass project,
with sample production planned for the second half of the year. XR products achieved stable
shipments to leading customers, while the development of silicon-based LED technology and
plans for mass-production lines moved forward at an accelerated pace.
(5) Declining Depreciation and an Orderly Reduction in Capital Expenditure Enhanced
Profitability and Cash Flow Quality
As certain mature production lines successively enter periods of declining depreciation, the
Company's overall depreciation expenses are expected to decrease in stages from 2026 onward.
This will unlock greater profit contributions from existing assets and enhance returns on assets.
Going forward, the Company expects its overall capital expenditure intensity to decline and will
take a disciplined approach to new capital expenditures while strengthening investment return and
capital efficiency management. Stable operating cash flow, coupled with the orderly moderation
of capital expenditures, will continue to enhance the quality of the Company’s free cash flow.
Future Development Outlook
Seizing the historic opportunities arising from AI's transformation of smart terminals,
advanced manufacturing, and compute infrastructure, the Company will leverage its display core
to advance display technology, reinvent its operating model, and expand into shared capability
areas—accelerating its shift from a global display leader to a pivotal human-machine interaction
interface and advanced manufacturing platform in the AI age.
First, redefining the value of displays. For the new generation of intelligent terminals in the
AI era, the Company will drive the transformation of displays from passive information media
into intelligent sensing and interactive interfaces. In response to the demands of AI terminals for
low power consumption, parallel multitasking, and multi-window interaction, the Company will
continue to enhance its capabilities in variable refresh rate, partitioned driving, high image quality,
low power consumption, multiple form factors, and system integration. These efforts will drive
product upgrades toward "deep adaptation of panels to AI scenarios," continuously expand the
boundaries of display applications, and increase per-screen value as well as customer stickiness.
Second, building a product portfolio spanning multiple technology cycles. In large-size
LCD, the Company will maintain on-demand production while pushing toward larger formats and
higher-end products to strengthen its earnings and cash flow base. Medium-size displays will act
as a key growth driver, rapidly penetrating IT, vehicle‑ mounted, and specialty display markets
to broaden both market presence and revenue scale. FMM OLED efforts will center on improving
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customer, product, and cost structures to lift the high-end product mix and operational quality,
while printed OLED and MLED will speed through validation, production ramp-up, and
commercial scaling. Drawing upon its strengths across multiple technology paths, including HVA,
HFS, and printed OLED, the Company will deliver differentiated solutions for various product
positioning and application scenarios, advancing from leadership in LCD alone toward
comprehensive leadership across multiple display technologies.
Third, restructuring the advanced manufacturing system with AI. The Company will
embed data, models, and AI agents throughout its operating value chain and actively explore
pathways for building “AI-native factories” and an “AI-native organization.” Since 2023, the
Company has independently developed and iterated the X-Intelligence large model, focusing on
vertical display scenarios. In relevant automated evaluations and assessments by industry experts,
its vertical-domain understanding and deep-reasoning capabilities outperformed mainstream
general-purpose overseas large models such as Gemini 3.1 Pro and GPT-5.5 high, placing it at the
forefront of the global display industry. In R&D, the Company is fostering integrated
collaboration across R&D, manufacturing, and sales to strengthen "do it right the first time"
capabilities. In manufacturing, it is pushing toward line-level autonomous perception, self-
diagnostics, and intelligent decision-making. In operations, it is evolving its models from reactive
execution to proactive insight—enhancing predictive and decision-making capabilities across the
full spectrum of scenarios. In parallel, the Company will strengthen model reliability, closed-loop
industrial data systems, AI-agent engineering capabilities, and collaboration mechanisms
involving domain experts, building core competitiveness for the intelligent era.
Fourth, unlocking a second growth space through shared foundational technologies.
Drawing on its core technological capabilities in large-size glass substrate processing, thin-film
deposition, photolithography, etching, automated handling, and smart manufacturing, the
Company is pushing forward with critical process validation for glass-based packaging. The
Company has assembled a dedicated team and is collaborating with target customers on technical
exchanges and joint R&D to address key process challenges, including TGV copper filling, stress
control in multilayer structures, and advanced glass substrate processing. It plans to exhibit
relevant samples in H2 2026 and begin preparations for a pilot R&D platform. Going forward, the
Company will coordinate the adaptation of upstream glass materials and the validation of key
equipment for processes such as through-hole formation, electroplating, and CMP polishing. It
will also conduct commercial validation focusing on functionality, reliability, mass-production
yield, and cost. Meanwhile, the Company is actively exploring opportunities in high-speed optical
interconnect and optoelectronic integration, strengthening its technology reserves in perovskites,
and pursuing technology development and validation with leading customers in response to the
visual, perceptual, and interactive demands of embodied intelligence. This creates a tiered
business architecture in which "mature businesses generate value, growth businesses improve the
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portfolio mix, and forward-looking ventures open up new horizons."
The Company will set key milestones for technology validation, customer introduction, mass-
production yield, and investment returns, committing resources in stages and making dynamic
adjustments based on validation results. While safeguarding the operational and financial security
of its core businesses, it will optimize its business portfolio and cultivate long-term growth drivers.
Moka Technology is a technology manufacturer with a global industrial footprint. It
specializes in the ODM business involving the R&D, design, and manufacture of intelligent
display terminal products such as TVs, monitors, and commercial displays, and is the world’s
largest TV ODM manufacturer. During the Reporting Period, Moka Technology achieved
operating revenue of RMB 9.48 billion. Its TV ODM business ranked first globally in shipment
volume for 15 consecutive quarters. Monitor ODM shipments increased by 7% year on year,
ranking fifth globally, while commercial display shipments grew by 37%, providing fresh impetus
to performance growth.
(II) New Energy Photovoltaics Business
The Company’s new energy photovoltaic business remained firmly focused on four priorities:
consolidating its competitiveness in crystal and wafer production, advancing its integration
strategy into a new stage, accelerating the development of the BC cell ecosystem and patent
operations, and pressing ahead with global expansion. These initiatives aimed to bolster
capabilities for navigating the industry cycle. During the Reporting Period, the new energy
photovoltaic business achieved sales revenue of RMB 11.27 billion, representing a year-on-year
increase of 6.0%, while its losses narrowed by 29.6% compared with H1 2025.
The photovoltaic materials business aligned production with actual demand and continued to
optimize its supply chain system, reducing costs and enhancing efficiency through process
improvements and tighter controls over energy consumption and workforce productivity. During
the Reporting Period, wafer shipments reached 53.9 GW, securing the industry’s largest market
share, while EBITDA improved by RMB 290 million year on year. Building on its long-standing
technological expertise and industry-chain synergies, the Company strengthened the
competitiveness of its crystal and wafer products through differentiation and premiumization.
Meanwhile, the Company capitalized on growing overseas demand by expanding its customer
base in markets such as India and Turkey. The resulting surge in overseas shipments and revenue
improved operating quality and supported a recovery in profitability.
During the Reporting Period, module shipments rose 29% year on year despite broader
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market headwinds. Operating revenue increased by approximately 47% to RMB 5.29 billion,
accompanied by year-on-year improvements in average selling prices and gross profit. The cell
and module business continued to optimize its product and customer mix, increasing both the
shipment contribution of premium products and sales in overseas markets. To address the market
demand for high power, high efficiency, high reliability, and multi-scenario applications, the
Company established a portfolio of high-efficiency products, including half-cut and multi-cut
offerings. High-efficiency products—including new BC and half-cut products—accounted for
over 15% of total shipments. The Company's overseas business also capitalized on opportunities
in key regional markets, delivering substantial shipment growth across Europe, the Middle East,
Australia and New Zealand, and Southeast Asia.
DAS Solar Co., Ltd. has been consolidated into the Company's financial statements starting
from the third quarter. Following the consolidation, the Company's production capacity stands at
and operational management systems, the Company will fully leverage the synergies between the
two entities, further enhancing its overall competitiveness. To meet the continued growth in
demand for BC products, the Company is drawing upon its established technologies, core patent
portfolio, process expertise, and customer base to accelerate the BC conversion of all its cell
capacity and 50% of its module capacity. The upgraded capacity is expected to come online
successively in the third quarter before entering the ramp-up stage. The Company is also actively
expanding into high-value market segments both domestically and internationally, and is expected
to continue gaining market share while improving profitability.
(III) Silicon Materials Business
Zhonghuan Advanced serves as the operating entity of the Company’s silicon materials
business. During the Reporting Period, Zhonghuan Advanced remained steadfast in its “Lead at
Home, Compete Globally” strategy. Focusing on the requirements of advanced-process logic
chips, advanced memory chips, and high-end power chips, it continued to advance the R&D,
customer certification, and volume introduction of relevant wafer products while optimizing its
product and customer mix. During the Reporting Period, Zhonghuan Advanced achieved
shipments of 689 MSI, representing a year-on-year increase of 17%. Of these shipments,
shipments of 12-inch products accounted for 57.8% of the total, while those of 8-inch and below
accounted for 42.2%. Certification and customer qualification with key clients proceeded as
planned. The Company recorded operating revenue of RMB 3.04 billion, of which 12-inch
products contributed RMB 1.65 billion. While the Company recorded a net loss of RMB 86
million for the period, its operational scale and profitability metrics remained at the forefront of
the domestic industry.
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Surging demand for AI and computing power has fueled growth in logic and memory chips,
while also lifting demand for related power chips. Together with the accelerating push for
domestic substitution, the industry has entered an upcycle, leading to both volume and price
increases in the silicon wafer market. To capitalize on these market opportunities, Zhonghuan
Advanced invested in the Shenzhen Project for Large Wafers Used in Integrated Circuits,
accelerating the development of 12-inch wafer capacity with a particular focus on logic and
memory applications. Together with its existing production bases in Yixing and Xuzhou, this
increased Zhonghuan Advanced’s total planned capacity for 12-inch wafers to 2.1 million pieces
per month, further optimizing its regional manufacturing footprint and strengthening supporting
services for key customers. Zhonghuan Advanced will continue to advance leading-edge
technologies and processes, deepen cooperation with key customers in China and abroad, and
accelerate the ramp-up of new capacity to ease delivery pressure, building differentiated
competitive advantages through technology, efficiency, and quality.
(IV) Non-core business
During the Reporting Period, Tianjin Printronics Circuit and Highly maintained sound
operations, while the Company’s financial and investment businesses continued to generate
earnings.
Facing a severe and complex external environment, the Company will adhere to the
development philosophy of “Strategic Leadership, Innovation-Driven, Advanced Manufacturing,
and Global Operations.” It will seize the historic opportunities presented by the upgrading of
advanced manufacturing and the transformation of the global energy structure, achieve
sustainable high-quality development, and move toward global leadership.
II. Analysis of Core Competitiveness
Since its establishment in 1981, TCL has consistently demonstrated resilience and
adaptability, successfully navigating through various market cycles. Through sustained
exploration, reform, and transformation, the Company, which is always standing firm at the
forefront and demonstrating the audacity to pioneer, has emerged as a high-tech industry group
with global competitiveness.
Strategic Leadership: Leading strategic goals and clear strategic development
philosophy
In 2018, TCL underwent its most significant corporate transformation, shifting from a
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
diversified conglomerate to a specialized business model focused on developing high-tech and
capital-intensive industries with long investment cycles. Following the delisting of Zhonghuan
Electronic in July 2020, the Company officially entered the fields of new energy photovoltaics
and silicon materials. TCL TECH. has established a business structure centered on displays, new
energy photovoltaic and other silicon materials. The Company followed a consistent logic in its
business strategy and development. With complementary business cycles and strong management
synergy across its segments, it achieved outstanding competitive strengths.
Guided by its goal of achieving global leadership, the Company is committed to its
development philosophy of "Strategic Guidance, Innovation-Driven, Leading Edge
Manufacturing, and Global Operations". It prioritizes strengthening its core competitiveness and
organizational capacity, and addresses uncertainties in the external environment with clear
strategic objectives, leading core competencies and a highly efficient management system.
Scale Leadership: Leading market position and comprehensive business layout
By the end of the Reporting Period, TCL CSOT, as a preeminent global display company
and a pioneer in domestic display manufacturing, invested over RMB 300 billion to establish 12
state-of-the-art panel lines (including the t8 line under construction) and 7 module factories,
serving a diverse range of global clients. The Company has established its leading position in
large-sized panels globally through both self-built production lines and strategic acquisitions. In
first half of 2026, the Company ranked second globally in TV panel shipments, and first globally
in terms of market share for panels sized 98 inches and above. The Company has built t9
production lines targeting high-value-added mid-sized products such as IT and commercial
displays, achieving a full-size strategic layout. In the first half of 2026, it secured the world’s
second-largest market share in MNT panels, and led globally in key segments such as e-sports
monitors and LTPS laptops. Its strategic MLED direct-display business achieved mass production
and delivery. TCL CSOT proactively positioned its high-performance and all-scenario display
solutions while bolstering its value chain ecosystem. By expanding its reach from a large-sized
display leader to a full-range provider, and transitioning from a panel manufacturer to a
comprehensive solution specialist, it successfully navigated multiple industry cycles. Evolving
from a "follower" to a "peer" and ultimately a "leader", TCL CSOT achieved sustained high-
quality development.
Leveraging its wafer business as a cornerstone, TZE expanded downstream into cells,
modules, and energy storage, steadily forging a resilient, industry-leading competitive edge. In the
photovoltaic wafer segment, TZE capitalized on its advantages in smart manufacturing,
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
technology, and product quality to meet diverse customer requirements. In the first half of 2026, it
retained its position as the global leader in terms of comprehensive wafer market share, the largest
market share for G12 wafers, and the largest total monocrystalline silicon production capacity. In
photovoltaic cells and modules, TZE drew upon its technological prowess in wafer manufacturing
to intensify innovation and R&D investment, delivering superior products and solutions to
customers. Its acquisition of DAS Solar in July 2026 comprehensively upgraded the cell and
module business across product technology, customer channels, and manufacturing capabilities.
As China’s photovoltaic industry enters a period of far‑ reaching adjustment, TZE will accelerate
its overseas expansion and industrial footprint, strengthen its product capabilities, and build
differentiated advantages to navigate industry changes from a more competitive position.
Zhonghuan Advanced remained steadfast in its “Lead at Home, Compete Globally” strategy,
establishing itself as one of China’s premier silicon materials enterprises with the most extensive
scale, diverse product portfolio, and the most leading edge technology. Serving key global and
domestic clients, its revenue from silicon wafers ranked first in China in the first half of 2026.
The Company continuously boosted its production capacity for 12-inch large wafers, leading to a
rapid surge in both production and sales volumes. In the first half of 2026, revenue from 12-inch
large wafers maintained its leading position in China. The Company will continue to diversify its
product and customer mix, and build differentiated competitive advantages around the strategic
pillars of technology leadership, efficiency enhancement, and outstanding quality.
Technological and Ecological Leadership: Spearheading innovation and fostering
extensive collaborations to secure a technological first-mover advantage
The Company has established a strategic foothold in core technologies (i.e., displays, new
energy photovoltaics and other silicon materials) by capitalizing on its subsidiaries TCL CSOT
and TZE. Through strategic partnerships with upstream and downstream industry players, the
Company has built a robust global ecosystem for technology and innovation, and is steadily
advancing its technological leadership in next-generation display technologies, G12 and N-type
photovoltaic materials, as well as BC cells. The Company has applied for over 80,000 patents,
and facilitated or participated in the establishment of more than 300 industry standards,
underscoring its status as a preeminent high-tech enterprise. The Company has applied for over
independent and controllable development of key technologies for next-generation displays. TCL
TECH. has established 32 R&D centers worldwide, and has been certified with 9 national-level
open innovation platforms and 33 provincial-level innovation platform qualifications.
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Efficiency and Cost Leadership: Navigating cycles with industry-leading efficiency and
effectiveness
Based on its scale and technological prowess, TCL TECH. has achieved efficiency and
benefits which maintain its industry leadership through continuous management changes,
digitalization upgrades, and AI applications. TCL CSOT has leveraged the synergy of its twin
factories to optimize production line planning and maximize capacity expansion. Through
management reforms and process optimizations, TCL CSOT strengthened end-to-end
collaboration, resulting in improved overall operations efficiency and cost reduction. Furthermore,
sustained investments in AI and digitalization propelled continuous advancements in product
performance, quality, and effectiveness, establishing a formidable competitive edge in
management within the industry.
While the new‑ energy photovoltaic industry continues to face numerous uncertainties
stemming from global demand and policy shifts, TZE streamlines its end‑ to‑ end business
processes through a series of management reforms. This has enabled the gradual build‑ out of
global operational capabilities and integrated solution offerings. Through AI‑ empowered
operations and smart‑ manufacturing development, the Company further elevates product
performance and quality. By retaining its industry‑ leading efficiency and cost advantages, the
Company is underpinned to smoothly navigate the industry’s significant adjustments and evolve
into a premier global provider of new‑ energy photovoltaic solutions.
In addition, the Company places great importance on developing its dual-carbon and ESG
systems. With the goal of reaching peak carbon emissions by 2030, it has established the
necessary organizational structure and launched targeted carbon-reduction initiatives covering its
factories, products, and supply chains.
Cultural Leadership: Guided by our core values of "change, innovation, accountability,
and excellence", the Company is being driven to achieve industry leadership
In 2020, the Company inaugurated its corporate culture, as laid out in its strategic document
The Path to Global Leadership. The Company has adopted a core mission centered around
"leading technology, harmonious coexistence", underpinned by the core values of "change,
innovation, accountability, and excellence". This cultural transformation has empowered TCL
employees to embrace change, drive business optimizations and upgrades through active
exploration and innovation, and guided TCL in dedicating itself to delivering superior products
and services to its valued customers through accountability and the pursuit of excellence.
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Confronting an increasingly complex and ever-changing external business environment, TCL
employees will remain steadfast in the spirit and culture of "The Path to Global Leadership".
Standing at the forefront of the industry and undeterred by challenges, we will collectively drive
the Company toward new milestones and realize our vision of global leadership.
III. Analysis of Core Businesses
Overview
The disclosure is consistent with the main businesses of the Company during the Reporting Period
Yes □ No
See the relevant contents in “I. Main Businesses of the Company during the Reporting Period”.
Year-on-year changes in key financial information
Unit: RMB
H1 2026 H1 2025 Change (%) Reason for change
Operating revenue 88,648,186,929 85,560,004,497 3.61% No significant change
Operating cost 77,240,901,594 74,082,838,353 4.26% No significant change
Sales expenses 1,208,257,980 1,163,964,526 3.81% No significant change
Administrative
expenses
Financial expenses 2,334,062,570 2,141,281,686 9.00% No significant change
Mainly due to the
recognition of deferred
Income tax expense 55,193,043 315,894,303 -82.53%
tax assets during the
Reporting Period
R&D investments 4,622,516,962 4,528,645,518 2.07% No significant change
Mainly due to the
Net cash generated increase in working
from operating 17,622,151,962 27,273,981,394 -35.39% capital occupied by
activities increased inventory
stocking
Mainly attributable to
substantial cash
Net cash generated outflows for the
from investing -10,371,018,331 -22,308,345,614 53.51% acquisition of LGD
activities Guangzhou LCD and
module manufacturing
facilities in H1 2025
Net cash generated Mainly due to the
from financing -11,568,653,590 481,996,265 -2500.15% decrease in financing
activities scale
Mainly due to the year-
on-year decrease in net
Net increase in cash
-4,347,079,003 5,695,406,206 -176.33% cash inflows from
and cash equivalents operating and financing
activities
Significant changes to the profit structure or sources of the Company during the Reporting Period
□Applicable Not applicable
No significant changes to the profit structure or sources of the Company during the Reporting Period.
Breakdown of operating revenue
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Unit: RMB
H1 2026 H1 2025
As % of total As % of total Change (%)
Amount operating revenue Amount operating revenue
(%) (%)
Total operating
revenue
By operating division
Display business 56,499,787,338 63.73% 57,550,502,531 67.26% -1.83%
New energy
photovoltaics and
other silicon
materials business
Distribution
business
Other and offsets 10,190,045 0.01% -63,137,490 -0.07% 116.14%
By product category
Display devices 56,499,787,338 63.73% 57,550,502,531 67.26% -1.83%
New energy
photovoltaics and
other silicon
materials
Distribution of
electronics
Other and offsets 10,190,045 0.01% -63,137,490 -0.07% 116.14%
By operating segment
Chinese Mainland 53,879,037,280 60.78% 54,848,748,806 64.11% -1.77%
Overseas
(including Hong 34,769,149,649 39.22% 30,711,255,691 35.89% 13.21%
Kong)
Operating division, product category, or region contributing over 10% of operating revenue or operating profit
Applicable □Not applicable
Unit: RMB
Change in Change in Change in gross
Operating Gross profit operating operating cost profit margin
Operating cost
revenue margin revenue year- year-on-year year-on-year
on-year (%) (%) (%)
By operating division
Display
business
New energy
photovoltaics
and other
silicon
materials
business
Distribution
business
By product category
Display devices 56,499,787,338 44,760,616,081 20.78% -1.83% -2.41% 0.48%
New energy
photovoltaics
and other 14,314,939,541 15,697,946,991 -9.66% 6.84% 8.92% -2.09%
silicon
materials
Distribution of 17,823,270,005 17,217,053,254 3.40% 21.46% 21.43% 0.02%
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
electronics
By operating segment
Chinese
Mainland
Overseas
(including 34,769,149,649 27,116,725,699 22.01% 13.21% 14.52% -0.89%
Hong Kong)
IV. Analysis of Non-Core Businesses
Applicable □Not applicable
Unit: RMB
Amount As % of gross profit Source Sustainability
Mainly due to the
recognition of return
on investment from
Return on investment 2,193,722,549 95.44% Yes
joint ventures and
investment returns on
financial assets, etc
Mainly due to the
movement in fair value
Gain/loss of fair-value
changes during the holding
period
Falling price of
Asset impairment -2,328,103,164 -101.29% inventory write-offs in No
line with the market
Non-operating income 19,590,137 0.85% No
Non-operating
expenses
V. Analysis of Assets and Liabilities
Unit: RMB
End of the Reporting Period December 31, 2025
Weight Main reason for
As % of total As % of total Change change
Amount Amount
assets assets
Monetary No significant
assets change
Accounts No significant
receivable change
No significant
Contract assets 380,944,305 0.10% 385,576,416 0.10% 0.00%
change
No significant
Inventories 22,977,465,760 6.29% 18,370,708,289 4.93% 1.36%
change
Investment No significant
properties change
Long-term
No significant
equity 24,224,709,984 6.63% 23,349,193,104 6.26% 0.37%
change
investments
No significant
Fixed assets 157,724,421,112 43.20% 165,003,155,646 44.27% -1.07%
change
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Construction in No significant
progress change
Right-of-use No significant
assets change
Short-term No significant
borrowings change
Contract No significant
liabilities change
Repayment of
borrowings
Long-term
borrowings Reporting
Period
No significant
Lease liabilities 3,788,754,808 1.04% 4,148,597,798 1.11% -0.07%
change
□Applicable Not applicable
Applicable □Not applicable
Unit: RMB
Impairment
Gain/loss of Cumulative
allowances Amount Amount sold
fair-value fair-value
Beginning established purchased in in the Other
Item changes in changes Ending amount
amount in the the Reporting Reporting changes
the Reporting recorded in
Reporting Period Period
Period equity
Period
Financial assets
trading financial
assets (excluding 14,473,193,131 225,797,200 - - 76,459,895,775 72,818,568,112 10,353,059 18,350,671,053
derivative
financial assets)
financial assets
financing
other equity 356,455,767 - -145,614,645 - 10,000,000 - -190,164,058 176,291,709
instruments
current financial 3,172,659,077 1,102,213,769 - - 701,100,018 447,640,281 32,705,791 4,561,038,374
assets
Subtotal of
financial assets
Total of the
above
Financial 493,524,364 70,712,460 - - 615,479,847 589,569,038 -215,305,613 374,842,020
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
liabilities
Significant changes to the measurement attributes of the major assets in the Reporting Period
□Yes No
For details, please refer to “28. Assets with Restricted Ownership or Use Rights” under “V. Notes to Consolidated Financial
Statements” in “Part VIII Financial Report.”
VI. Investments Made
Applicable □Not applicable
Total investment amount in the Total investment amount in the same
Change (%)
Reporting Period (RMB) period last year (RMB)
Applicable □Not applicable
Unit: RMB’000,000,000
Investment
Progress as gains and Index to
Date of
Name of Principal Investment Investment Shareholding Funding Investment Product of the Expected losses for Involvement in disclosed
Partner disclosure
investee activity method amount percentage source period type balance returns the litigation information
(if any)
sheet date Reporting (if any)
Period
Shenzhen China
Star
Optoelectronics
Panel Equity Self- Not Not Not Not December www.cninfo
Bandaoti production 60.45 10.7656% None Transferred No .com.cn
acquisition raised applicable applicable applicable applicable 16, 2025
Display
Technology Co.,
Ltd.
R&D,
production,
Fujian
and sales
Zhaoyuan Equity Self- Not Not Not Not December www.cninfo
of LED 4.90 80% None Transferred No .com.cn
Optoelectronics acquisition raised applicable applicable applicable applicable 27, 2025
epitaxial
Co., Ltd.
wafers and
chips
Guangzhou
China Star
Optoelectronics
Panel Equity Self- Not Not Not Not March 31, www.cninfo
Bandaoti 93.25 45% None Contracted No .com.cn
production acquisition raised applicable applicable applicable applicable 2026
Display
Technology Co.,
Ltd.
www.cninfo
DAS Solar Co., Production Equity 12.58 59.14% Self- None Not Not Contracted Not Not No March 31, .com.cn
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Ltd. of cells acquisition raised applicable applicable applicable applicable 2026
and
modules
Zhonghuan
R&D,
Advanced
production, Equity Self- Not Not Not Not May 30, www.cninfo
Bandaoti 8.45 2.37% None Transferred No .com.cn
and sales acquisition raised applicable applicable applicable applicable 2026
Technology Co.,
of wafers
Ltd.
Total -- -- 179.63 -- -- -- -- -- -- -- -- --
Note: The industrial and commercial registration of the transfer of the 45% equity interest in Guangzhou China Star
Optoelectronics Bandaoti Display Technology Co., Ltd. was completed on August 21, 2026. DAS Solar Co., Ltd. will be
included in the Company’s scope of consolidation from Q3 2026.
On September 11, 2025, the Company convened the 14th meeting of the 8th Board of Directors, at which
the Proposal on Investment in and Construction of the Generation 8.6 Printed OLED Production Line Project
was reviewed and approved. To secure a strategic position for China in the new competitive landscape of the
global display industry, drive the industry's frontier technology exploration and commercialization, and realize
the Company's industrialization of high-generation printed OLED, the Company, together with TCL CSOT, the
Guangzhou Municipal Government, and the Guangzhou Economic and Technological Development Zone
Administration, signed a project cooperation agreement. The project entails the construction of an
(substrate size: 2290mm × 2620mm).
Construction of the Generation 8.6 printed OLED production line officially commenced on October 21,
expected to officially commence production in Q4 2027.
(1) Securities Investments
Applicable □Not applicable
Unit: RMB'0,000
Gain/loss
of fair- Cumulative Amount
Amount Gain/loss
Initial Accounting Beginning value fair-value purchased Ending
Security sold in the in the Accounting Funding
Stock Code Stock Abbr. investment measurement carrying changes changes in the carrying
type Reporting Reporting title source
cost method amount in the recorded in Reporting amount
Period Period
Reporting equity Period
Period
Other non-
current Self-
Stocks 2513.HK Z.AI 8,000 Fair value 14,840 76,769 - - - 76,769 91,609
financial
funded
assets
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Other non-
current Self-
Stocks 688469.SH UNT 26,745 Fair value 31,053 16,282 15,417 - 3,234 17,157 44,977
financial
funded
assets
Measurement Self-
Debt
Bonds 240311 24 Eximbank 11 20,679 at amortized 20,809 - - - - 181 20,990
investments
cost funded
Measurement Self-
Debt
Bonds 250420 25 ADBC 20 20,027 at amortized 20,251 - - - - 176 20,070
investments
cost funded
Other non-
DK Electronic current Self-
Stocks 300842.SZ Materials, Inc.
financial
funded
assets
Measurement Self-
Nanyang Debt
Bonds XS2587421681 Commercial Bank
investments
cost funded
Other non-
current Self-
Stocks 301636.SZ Zerun New Energy 1,746 Fair value 4,562 2,182 - - - 2,182 6,744
financial
funded
assets
Held-for-
ELECTRICITE DE trading Self-
Bonds USF2941JAA81 FRANCE SA
financial
funded
assets
Held-for-
MONGOLIAN trading Self-
Bonds XS3038559129 MINING CORP
financial
funded
assets
Held-for-
trading Self-
Bonds XS1389118453 LI & FUNG LTD 972 Fair value 3,952 -25 - - - 148 3,805
financial
funded
assets
Other securities investments held at the period-end 237,481 -- 159,619 -1,462 -12,900 201,514 207,153 3,644 157,600 -- --
Total 333,762 -- 284,461 99,361 2,517 203,309 224,294 112,346 374,111 -- --
Disclosure date of the board announcement
——
approving securities investments
Date for disclosure and announcement on
approving securities investment by the ——
general meeting (if any)
(2) Investments in Derivative Financial Instruments
Applicable □Not applicable
Applicable □Not applicable
Unit: RMB'0,000
Closing contractual amount as a
Gain/loss in
Beginning amount Ending amount percentage of the closing net assets
the
Type of contract reported by the Company (%)
Reporting
Contractual Transaction Contractual Transaction Contractual
Period Transaction limit
amount limit amount limit amount
Total 4,268,834 164,989 5,582,458 217,325 -38,815 43.74 1.70
Accounting policies and specific
accounting principles for
hedging business during the
Reporting Period and a
No significant change.
description of whether there
have been significant changes
from those of the previous
Reporting Period
Description of actual profits and During the Reporting Period, profit from changes in the fair value of hedged items amounted to -RMB 508.18
losses during the Reporting million; profit from the settlement of matured forward exchange contracts amounted to RMB 185.46 million, and
Period profit from the valuation of outstanding forward exchange contracts amounted to -RMB 65.43 million.
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
During the Reporting Period, the Company's main foreign exchange risk exposures included exposures of assets
and liabilities denominated in foreign currencies arising from business such as outbound sales, raw material
Description of the hedging 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:
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;
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;
there is a risk of performance failure due to deviation arising between the actual operating results and budgets;
approvals in accordance with established procedures or to accurately, promptly, and comprehensively record
information related to financial derivative transactions may result in potential losses or missed trading
opportunities in the derivative business. Moreover, if the trading operator fails to fully understand the terms of
Analysis of risks and control
transaction contracts or product information, the Group may face legal risks and transaction losses.
measures associated with
Risk control measures:
derivative investments held in
the Reporting Period (including
risks. It is necessary for the financial derivatives business to align with the variety, size, direction, and duration of
but not limited to market risk,
spot goods, and this should not involve any speculative trading. When selecting hedging instruments, only simple
liquidity risk, credit risk,
financial derivatives that are closely related to the main business operations and comply with the requirements of
operational risk, legal risk, etc.)
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;
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.
promptly assess the risk exposure changes of invested financial derivatives, and compile reports to the board of
directors on business development;
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.
With the rapid expansion of overseas sales, the Company continued to follow the above rules in the operation of
Changes in market prices or fair
forward foreign exchange contracts, interest rate swap contracts, and currency swap contracts to avoid and hedge
value of derivative investments
against foreign exchange risks arising from operations and financing. During the Reporting Period, there were
in the Reporting Period (fair
profits and losses of -RMB 508.18 million from changes in the fair value of hedged items and RMB 120.03 million
value analysis 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 related
market, and is based on the difference between the contractual price and the forward exchange rate quoted
assumptions and parameters)
immediately on the foreign exchange market on the balance sheet date.
Legal matters involved (if
None
applicable)
Disclosure date of the board
announcement approving the March 28, 2026
derivative investments (if any)
Disclosure date of the general
meeting announcement
April 25, 2026
approving the derivative
investments (if any)
□Applicable Not applicable
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
There were no derivative investments for speculative purposes made by the Company during the Reporting Period.
Applicable □Not applicable
(1) General Information about the Use of Capital Raised
Applicable □Not applicable
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
If yes, total number of changes involving such projects Not applicable
Unit: RMB'0,000
Upon the CSRC registration approval (CSRC Approval [2025] No. 2369), the Company issued corporate bonds not exceeding RMB 10 billion to professional investors in installments. During
the Reporting Period, the net proceeds from the Sci-Tech Innovation Corporate Bonds (Digital Economy) Publicly Offered by TCL Technology Group Corporation to Professional Investors
(Phase I) (Type II) were fully received on May 22, 2026. As of the disclosure date, all proceeds raised have been fully utilized, and the actual use of proceeds is consistent with the intended use
--
Whether any project funded by capital raised has been
Not applicable
--
changed
If yes, total number of delays involving such projects Not applicable
--
Whether any project funded by capital raised has been delayed Not applicable
--
Date on which all excess capital raised was fully utilized Not applicable
--
--
Total excess capital raised for which no utilization plan has
been established and which remains idle Not applicable
(including cash management)
--
Progress in the use of excess capital raised as at the end of the
Not applicable
Reporting Period (Unit: %)
--
Total amount of excess capital raised used as at the end of the
Reporting Period Not applicable
(excluding cash management)
Total amount of excess capital raised used during the
--
Not applicable
Reporting Period
--
Total excess capital raised for which utilization plans have
been established Not applicable
(excluding cash management)
--
Amount of excess capital raised
Total surplus capital raised from completed planned projects Not applicable
--
Date on which all planned projects funded by capital raised
Not applicable
--
were completed
Whether all planned projects funded by capital raised have
Not applicable
--
been completed
--
Progress in the use of capital raised as at the end of the
Reporting Period
--
Total amount capital raised used as at the end of the Reporting
Period
--
Actual amount of capital raised
(capped at the actual net capital raised)
--
Total amount planned to be raised (subject to the amount
specified in the prospectus)
Amount left idle for over two years
Purpose and location of the unused amount Not applicable
--
Total proceeds that have not been used
Total amount of changed-purpose funds as a % of total
Not applicable
amount raised
Total amount of changed-purpose funds Not applicable
Total amount of changed-purpose funds during the Reporting
Not applicable 0
Period
Utilization rate of capital raised as at the end of the Reporting
Period (3) = (2)/(1)
Whether the Company has any excess capital raised
(3) Changes in projects funded by capital raised
Total amount used (2)
Used in the current period
No such cases in the Reporting Period.
(2) Promised Use of Capital Raised
Net amount raised
□Applicable Not applicable
□Applicable Not applicable
(1)
as stated in the prospectus.
Use of the Capital Raised:
Total amount raised
May 29,
Listing date of securities
--
□Yes No
Public issuance of
Method of raising
--
corporate bonds
Total
Year of raising
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
VII. Sale of Major Assets and Equity Investments
□Applicable Not applicable
The Company did not dispose of any major assets during the Reporting Period.
□Applicable Not applicable
VIII. Principal Subsidiaries and Joint Stock Companies
Applicable □Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the Company's net profits
Unit: RMB'0,000
Company Principal Registered Operating Operating
Company name Total assets Net assets Net profits
type activity capital revenue profit
TCL China Star
Optoelectronics RMB 33.08
Subsidiary Display 18,815,888 7,331,533 5,027,346 397,365 390,266
Technology Co., billion
Ltd.
New energy
TCL Zhonghuan
photovoltaics
Renewable
and other RMB 4.04
Energy Subsidiary 11,276,264 3,478,934 1,431,494 -361,526 -345,728
silicon billion
Technology Co.,
materials
Ltd.
business
Highly
Distribution RMB 412
Information Subsidiary 854,144 178,327 1,782,327 12,552 10,322
business million
Industry Co., Ltd.
Acquisition and disposal of subsidiaries in the Reporting Period
Applicable □Not applicable
How subsidiaries were obtained or Effects on overall operations and
Company name
disposed of in the Reporting Period operating performance
Zhengzhou Shangrong Trading Co., Ltd. Newly established No significant effect
Wuhan Titi Yunchuang Education Technology
Newly established No significant effect
Co., Ltd.
Ningbo Chengda Shangpin Technology Co.,
Newly established No significant effect
Ltd.
Shenzhen Shangpai Zhuofan Technology Co.,
Newly established No significant effect
Ltd.
Guangzhou Shangpai Zhihe Electronics
Newly established No significant effect
Technology Co., Ltd.
TCL International Supply Chain (Huizhou)
Newly established No significant effect
Co., Ltd.
Zhejiang Xingyong Electronics Co., Ltd. Newly established No significant effect
Shenzhen Zhonghuan Advanced Bandaoti
Newly established No significant effect
Materials Co., Ltd.
Shenzhen Yunqi New Materials Technology
Newly established No significant effect
Co., Ltd.
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Ningbo Dongxi Rongrui Venture Capital
Newly established No significant effect
Partnership (Limited Partnership)
Fuzhou Huazhao Optoelectronics Co., Ltd. Acquisition No significant effect
Fujian Fuzhao Bandaoti Co., Ltd. Acquisition No significant effect
Hunan Chuangke Photoelectrics Co., Ltd. Acquisition No significant effect
Yixing Zhonghuan Leading Engineering
Capital increase for controlling interest No significant effect
Management Co., Ltd.
Tianjin Jincheng Internet Technology Co., Ltd. De-registered No significant effect
Note: On April 1, 2026, Maxeon Solar Technologies, Ltd., a subsidiary of the Company’s subsidiary TZE, and its subsidiary Maxeon
Solar Pte. Ltd. voluntarily filed a joint application with the High Court of Singapore for judicial management proceedings. Now,
Maxeon Solar Technologies Ltd. and its subsidiary Maxeon Solar Pte Ltd. are under the administration of Deloitte Singapore SR&T
Restructuring Services Pte. Ltd. (“Deloitte”) and are not included in the Company’s consolidated financial statements.
Explanation of Principal Subsidiaries and Joint Stock Companies: None
IX. Structured Bodies Controlled by the Company
Applicable □Not applicable
As of the end of the Reporting Period, the Group had included four structured entities within its scope of consolidation, comprising
trust plans and securities firms’ asset management products controlled by the Group. Of these, three structured entities were added in
the current year, corresponding to entrusted wealth‑ management products arranged by financial institutions on behalf of the Group
as sole principal. For details, please refer to the section on entrusted wealth management. As the manager and an investor in the
structured entity, the Group has relevant management power over the structured entity, is exposed to variable returns, and has the
ability to use its power to influence those returns.
X. Risks and Responses
Against a backdrop of increasingly divergent global growth, persistent geopolitical tensions, mounting trade
protectionism, and accelerating regionalization, uncertainty in the global business environment remained elevated.
Meanwhile, continued volatility in global exchange rates and financial markets heightened the risks facing the
Company’s overseas operations. In response, the Company will closely monitor changes in macroeconomic
policies, establish risk monitoring and early-warning mechanisms, identify exposures arising from tariffs,
exchange-rate fluctuations, and other factors, and develop targeted contingency plans. Guided by its goal of global
leadership, the Company will remain focused on its core businesses, pursue technology-driven innovation,
strengthen its competitiveness, and enhance commercial value and returns, thereby improving its resilience to
macroeconomic volatility.
Panel prices remained volatile in 2026, while the photovoltaic industry faced intense cut‑ throat competition.
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Notwithstanding sustained industry adjustments, no material improvement was yet observed. The Company will
diligently monitor shifts in industry supply and demand and optimize capacity allocation. At the same time, it will
increase its investment in R&D to continuously raise the technological content of its products. This strategic
approach will allow the Company to expand its scale and efficiency advantages, thereby building high competitive
barriers and strengthening its market position.
Geopolitical tensions and surging AI demand continued to place pressure on the stability of global supply
chains. Rising prices for major raw materials also presented challenges to delivery reliability and pricing.
Meanwhile, amid a challenging market environment and continued price compression, some small- and medium-
sized suppliers have contracted or ceased operations, resulting in potential supply disruptions. To safeguard the
resilience and security of its global supply chain, the Company will remain committed to its globalization strategy,
deepen the development of local supply chains, and continue strengthening its ability to respond to supply-chain
risks. It will also enhance supply stability through strategic partnerships, buffer inventories, and other measures,
while establishing monitoring and early-warning mechanisms for upstream supply risks to enable their timely
identification and effective mitigation.
As the Company continues to expand its business scale and technological footprint, patent disputes have
become more frequent and intellectual property risks increasingly pronounced. To address this, the Company will
accelerate substantial R&D investments, refining our core technologies and patent portfolio through a “self-
development + ecosystem collaboration” model. The Company will continue to improve its intellectual property
management and protection mechanisms, strengthen patent risk assessments, enhance its patent risk monitoring
and early-warning systems, and comprehensively improve its ability to address intellectual property risks.
In addition, robust compliance systems are becoming increasingly important to the Company’s overseas
operations. The Company will strengthen its compliance framework by implementing a system designed to meet
the export control regulations of all key global markets. These efforts include streamlining compliance procedures,
implementing rigorous employee training programs, fostering compliance awareness and culture, and
collaborating closely with local partners to proactively manage compliance risk.
XI. Formulation and Implementation of the Rules for Market Value Management and
Valuation Enhancement Plan
Whether the Company has formulated the Rules for Market Value Management
Yes □ No
Whether the Company has disclosed the valuation enhancement plan
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
□Yes No
On December 27, 2024, the Proposal on Formulating the Rules for Market Value Management was
deliberated on and adopted at the 7th Meeting of the 8th-term Board of Directors. To strengthen the Company's
market value management, further standardize its market value management practices, effectively enhance the
Company's investment value, increase investor returns, and protect the legitimate rights and interests of the
Company, the investors and other stakeholders, the Company has formulated the Rules for Market Capitalization
Management in accordance with the Company Law, the Securities Law, the Several Opinions of the State Council
on Strengthening Regulation to Prevent Risk and Promoting the High-quality Development of the Capital Market,
the Administrative Measures for the Information Disclosure by Listed Companies, the Guidelines for the
Regulation of Listed Companies No. 10 – Market Value Management, and other related provisions.
The Company firmly upholds the principle of shareholder returns, taking measures to protect investor
interests, especially those of minority shareholders. It upholds ethical operations, regulatory compliance, and a
focused approach to core business, ensuring prudent management. By developing advanced capabilities, the
Company continuously enhances operational efficiency and quality growth. Additionally, the Company prioritizes
strong investor relations, enhancing transparency and communications to ensure investment value reflects its core
strengths, while proactively strengthening investor confidence.
During the Reporting Period, the Company reviewed and approved the Shareholder Dividend Payout Plan
for the Next Three Years (2026–2028), which stipulates that the profits distributed in cash each year shall be no
less than 30% of the net profit attributable to shareholders of the parent company for that year. During the
Reporting Period, the Company also introduced the Partner Stock Ownership Plan for management personnel.
Shares held by management under the Plan are subject to a five-year lock-up period, with their release linked to
the Company’s performance assessment. This arrangement further aligns the interests of management with those
of the Company and all its shareholders.
XII. Implementation of the "Joint Improvement of Quality and Investment Return" Action
Plan
Whether the Company has disclosed the "Joint Improvement of Quality and Investment Returns" Action Plan Announcement.
Yes □ No
To better implement the guidance on enhancing the quality and investment value of listed companies, the
Company has developed the "Joint Improvement of Quality and Investment Returns" Action Plan, which is based
on in-depth research on industry trends and careful consideration of our future business trajectory. In addition, the
Company has disclosed the progress report on the "Joint Improvement of Quality and Investment Returns" Action
Plan in combination with the implementation. For more details, please see the Notice on Promoting the Joint
Improvement of Quality and Investment Returns Action Plan and the Progress Report on the Joint Improvement of
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Quality and Investment Returns Action Plan disclosed on February 28, 2024, and May 8, 2024, respectively.
Focusing on its core businesses in displays, new energy photovoltaics, and silicon materials, the Company
remains anchored in its goal of “Global Leadership” and committed to the operating philosophy of “Strategic
Leadership, Innovation-Driven, Advanced Manufacturing, and Global Operations.” It will continue to consolidate
its industry position and pursue sustainable, high-quality development. Motivated by confidence in the
Company’s future development and a commitment to protecting the interests of all shareholders, bolstering
investor confidence, and stabilizing and enhancing the Company’s investment value, the Proposal on Repurchase
of a Portion of the Company’s Publicly Traded Shares in 2026 was approved at the 23rd meeting of the Eighth
Board of Directors on June 1, 2026. The Company planned to repurchase a portion of its publicly issued shares
through centralized bidding on the Shenzhen Stock Exchange trading system. The total amount of the repurchase
was set at no less than RMB 1.10 billion (inclusive) and no more than RMB 1.20 billion (inclusive), with a price
cap of RMB 6.51 per share (inclusive). The repurchased shares will be used for the Company’s employee stock
ownership plan and/or equity incentive plan. If the shares are not used within 36 months after the completion of
the repurchase, the unused portion will be canceled in accordance with relevant procedures.
In 2025, the Company achieved significant growth in net profit attributable to shareholders of the listed
company, with net cash flow from operating activities showing steady improvement and various tasks progressing
in an orderly manner. The Company remains committed to delivering shareholder value and adheres to a prudent
dividend policy. Under its 2025 profit distribution plan, a cash dividend of RMB 0.9 per 10 shares (tax inclusive)
will be distributed to all shareholders, enabling them to benefit from the Company’s value growth.
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Part IV Corporate Governance, Environment and Social
Responsibility
I. Changes in Directors and Senior Management
Applicable □Not applicable
Name Office title Type of change Date of change Reason for change
January 19, 2026,
Wang Cheng CEO and Director Elected Appointed and elected
April 24, 2026
Director and Vice April 24, 2026,
Zhong Wei Elected Elected
Chairman April 29, 2026
Vice Chairman of the
Zhang Zuoteng Former March 25, 2026 Resigned voluntarily
Board
II. Interim Dividend Plan and Conversion from Capital Reserves into Share Capital during
the Reporting Period
□Applicable Not applicable
The Company does not propose to pay interim cash dividends, issue bonus shares or convert capital reserves into share capital for
this interim period.
III. Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures
for Employees
Applicable □Not applicable
□Applicable Not applicable
Applicable □Not applicable
All the valid employee stock ownership plans during the Reporting Period
Total number of Proportion to
Number of shares held the total share Funding source for
Name Scope of employees Changes
employees capital of the implementing the plan
(shares) listed company
Employees' legitimate
The Company's middle
and senior No more than Not
Stock Ownership Plan 0 0% based bonus or other
management and 3,600 applicable
(Phase III) distribution permitted
outstanding key staff
by laws and regulations
Employees' legitimate
The Company's middle
income, performance-
Ownership Plan management and 3,600 applicable
distribution permitted
outstanding key staff
by laws and regulations
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Ownership Plan
(Partner Stock Employees' legitimate
Ownership Plan) The Company's middle
income, performance-
and senior No more than Applicable;
management and 3,600 see Note 1
Ownership Plan distribution permitted
outstanding key staff
(Medium- and Long- by laws and regulations
Term Employee Stock
Ownership Plan)
Employees' legitimate
income, performance-
Ownership Plan Company 60 applicable
distribution permitted
by laws and regulations
Employees' legitimate
The Company’s
middle-level No more than Not
Long-Term Employee 0; see Note 2 - based bonus or other
management and 4,700 applicable
Stock Ownership Plan distribution permitted
outstanding key staff
by laws and regulations
Note 1: On June 1, 2026, the Company convened the 23rd meeting of the Eighth Board of Directors, and on June 22, 2026, it convened the Second
Extraordinary General Meeting for 2026. At these meetings, the Proposal on Adjusting Matters Relating to the Company’s 2025 Employee Stock
Ownership Plan and related proposals were reviewed and approved. To improve its long-term incentive and restraint mechanisms and provide
differentiated, targeted incentives to employee groups with different roles and incentive objectives, the Company decided to restructure the 2025
Employee Stock Ownership Plan into two sub-plans: the 2025 Partner Stock Ownership Plan, applicable to key management personnel, and the 2025
Medium- and Long-Term Employee Stock Ownership Plan, applicable to middle management and outstanding key employees. Accordingly, the
Company formulated the following documents: the 2025 Employee Stock Ownership Plan (Partner Stock Ownership Plan) of TCL Technology Group
Corporation (Revised Draft) and its summary, and the Administrative Measures for the 2025 Employee Stock Ownership Plan (Partner Stock
Ownership Plan) of TCL Technology Group Corporation; as well as the 2025 Employee Stock Ownership Plan (Medium- and Long-Term Employee
Stock Ownership Plan) of TCL Technology Group Corporation (Revised Draft) and its summary, and the Administrative Measures for the 2025
Employee Stock Ownership Plan (Medium- and Long-Term Employee Stock Ownership Plan) of TCL Technology Group Corporation. The 2025
Medium- and Long-Term Employee Stock Ownership Plan will continue to use the dedicated securities account and trading qualifications already
established for the 2025 Employee Stock Ownership Plan. The transfer/purchase of the underlying shares for the 2025 Partner Stock Ownership Plan
has not yet been completed.
Note 2: The transfer/purchase of the underlying shares for the Plan has not yet been completed.
Note 3: During the Reporting Period, all shares held under the 2021-2023 Employee Stock Ownership Plan (Phase III) that satisfied the vesting
conditions were vested in the holders. The corresponding shares repurchased by the Company in accordance with the relevant arrangements were
recently sold in full.
Shareholdings of Directors and Senior Management under the Employee Stock Ownership Plan during the Reporting Period
Number of shares held at Number of shares held at
Proportion to the total share
Name Position the beginning of the the end of the Reporting
capital of the listed company
Reporting Period (share) Period (share)
Li Dongsheng Chairman
Wang Cheng Director and CEO
Zhao Jun Director, Senior Vice President
Director, Board Secretary and
Liao Qian
Senior Vice President About 26.47 million About 18.62 million
Li Jian CFO shares shares
Director, Senior Vice President,
Yan Xiaolin
CTO
Employee Representative
Zhu Wei
Director
Changes of asset management institutions during the Reporting Period
□Applicable Not applicable
Changes of equity caused by the holder’s disposal of shares during the Reporting Period
□Applicable Not applicable
Exercise of shareholder rights during the Reporting Period
□Applicable Not applicable
During the Reporting Period, the Company’s ESOP participants exercised their shareholder rights to receive the profit distribution for
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Other relevant information and explanations of the Employee Stock Ownership Plan during the Reporting Period.
□Applicable Not applicable
Changes in the members of the management committee for Employee Stock Ownership Plan
□Applicable Not applicable
Financial impact of the Employee Stock Ownership Plan on the Company during the Reporting Period and related accounting
treatment
Applicable □Not applicable
The financial, accounting treatment and taxation involved in the Company’s Employee Stock Ownership Plan (ESOP) shall be
implemented according to relevant laws, regulations and normative documents such as financial systems, accounting standards, and
taxation systems. Holders of the shareholding plan shall pay individual income tax arising from their participation in the plan
according to law, and may choose to have the shareholding plan sell a corresponding amount of shares to cover individual income tax,
with the remaining shares attributed to the individuals.
Termination of Employee Stock Ownership Plan during the Reporting Period
Applicable □Not applicable
During the Reporting Period, all shares held under the 2021-2023 Employee Stock Ownership Plan (Phase I), the 2021-2023
Employee Stock Ownership Plan (Phase II), and the 2021-2023 Employee Stock Ownership Plan (Phase III) that satisfied the vesting
conditions were vested in the holders. The corresponding shares repurchased by the Company as per the agreement have been fully
disposed of. The aforementioned Employee Stock Ownership Plans were fully implemented and terminated ahead of schedule. For
details, please refer to the Announcement on the Implementation Progress of the Employee Stock Ownership Plans disclosed by the
Company through designated media on July 3, 2026.
Other instructions: none
□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 in accordance with the law
No. Name of enterprise Index for environmental information disclosure report
Enterprise Environmental Information Disclosure System
https://gdee.gd.gov.cn/gdeepub/front/dal/dal/newindex
Enterprise Environmental Information Disclosure System
Shenzhen China Star Optoelectronics Bandaoti Display
Technology Co., Ltd.
https://gdee.gd.gov.cn/gdeepub/front/dal/dal/newindex
Enterprise Environmental Information Disclosure System
Guangzhou China Star Optoelectronics Bandaoti
Display Technology Co., Ltd.
https://gdee.gd.gov.cn/gdeepub/front/dal/dal/newindex
Enterprise Environmental Information Disclosure System
Guangzhou China Star Optoelectronics Technology
Co., Ltd.
https://gdee.gd.gov.cn/gdeepub/front/dal/dal/newindex
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Enterprise Environmental Information Disclosure System (Hubei)
Wuhan China Star Optoelectronics Technology Co., http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/enterpriseInfo?XT
Ltd. XH=6a15f252-dd39-40a0-b08c-
ba0387086f16&XH=1677751270208009244672&year=2024
Enterprise Environmental Information Disclosure System (Hubei)
Wuhan China Star Optoelectronics Bandaoti Display http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/enterpriseInfo?XT
Technology Co., Ltd. XH=10470c7d-faf3-4981-8a87-
e813881ef749&XH=1677751269448009244672&year=2024
Enterprise Environmental Information Disclosure System
(Jiangsu)
Suzhou China Star Optoelectronics Technology Co.,
Ltd.
webapp/web/viewRunner.html?viewId=http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
webapp/web/sps/views/yfpl/views/yfplHomeNew/index.js
Enterprise Environmental Information Disclosure System
(Jiangsu)
webapp/web/viewRunner.html?viewId=http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
webapp/web/sps/views/yfpl/views/yfplHomeNew/index.js
Enterprise Environmental Information Disclosure System (Fujian
Fuzhou Huazhao Optoelectronics Co., Ltd. (formerly
known as Fujian Zhaoyuan Optoelectronics Co., Ltd.)
http://220.160.52.213:10053/idp-province/#/home
Tianjin Zhonghuan Advanced Material&Technology Enterprise Environmental Information Disclosure System (Tianjin)
Co., Ltd. https://hjxxpl.sthj.tj.gov.cn:10800/#/gkwz/jcym
Enterprise Environmental Information Disclosure System (Inner
http://sthjj.huhhot.gov.cn/ztzl/xzzt/cxjsgc/202507/t20250717_1912456.html
Enterprise Environmental Information Disclosure System
(Jiangsu)
http://ywxt.sthjt.jiangsu.gov.cn:18181/shencai-envfacial-
web/web/view/facialDetail/facialDetail.html
Enterprise Environmental Information Disclosure System
TCL Zhonghuan Energy Technology (Jiangsu) Co., (Jiangsu)
Ltd. http://ywxt.sthjt.jiangsu.gov.cn:18181/shencai-envfacial-
web/web/view/facialDetail/facialDetail.html
Enterprise Environmental Information Disclosure System
(Jiangsu)
http://ywxt.sthjt.jiangsu.gov.cn:18181/shencai-envfacial-
web/web/view/facialDetail/facialDetail.html
Ecological Environment Statistics Business System
https://hjtj.cnemc.cn/htqy/#/login
The Online Consent Management & Monitoring System
https://apocmms.nic.in
Public information on environment-related permits from Quang
CÔNG TY TNHH CÔNG NGHỆ MOKA VIỆT NAM Ninh Economic Zone Authority
Moka Technology Vietnam Company Limited https://qeza.gov.vn/Cong-khai-Giay-phep-moi-truong-cua-Du-an-Moka-Viet-
Nam/dta/vi/10378/
Ministry of Environment and Natural Resources
Recursos Naturales | Gobierno | gob.mx
Enterprise Environmental Information Disclosure System (Tianjin)
https://hjxxpl.sthj.tj.gov.cn:10800/#/gkwz/jcym
Department of Ecology and Environment of Guangdong Province
- Enterprise Environmental Information Disclosure System
E5%92%8C%E7%94%B5%E8%B7%AF&reportType=&areaCode=&entType
=&reportDateStartStr=&reportDateEndStr=
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
V. Social Responsibility
Semi-Annual Summary of Work on Consolidating and Expanding Achievements in Poverty
Alleviation & Promoting Rural Revitalization
Rural education provides strategic support for rural revitalization. The TCL Public Welfare Foundation
launched the “TCL PV Low-Carbon Campus” project, providing green energy support to rural education by
donating rooftop photovoltaic power generation systems along with the income they generate over their 25-year
life cycle. To further advance “Project Hope in the New Era” and extend the reach of education assistance, the
Foundation partnered with the China Youth Development Foundation to implement the “TCL Project Hope PV-
enabled Low-Carbon Campus Program,” thereby continuously empowering the sustainable development of rural
education. To date, 35 “TCL PV-enabled Low-Carbon Campuses” have been donated and constructed across
China, with a total installed capacity of 2,054.65 kW. Over their 25-year life cycle, these systems are expected to
generate approximately 61.91 million kWh of electricity, equivalent to planting approximately 2.76 million trees.
During the Reporting Period, the project team conducted extensive field research in Chongqing, Henan, Hubei,
and other regions, carrying out targeted assessments of local schools and students to lay a solid foundation for the
high-quality expansion of the low-carbon campus initiative.
To advance education, the "TCL University Donation Program"—launched in 2022—has provided support to
eight universities, including South China University of Technology and Xidian University. To date, the program
has funded 54 TCL Young Scholars and 66 Science and Technology Innovation Fund projects. During the
Reporting Period, an additional 11 young scholars and 6 innovation fund projects received support. In addition,
TCL invests RMB 2 million annually in the Distinguished Speaker Series under the "SUSTech–TCL Innovation
and Entrepreneurship Lecture Program." Leading experts and scholars, including Mao Daqing and Ma Guangyuan,
were recently invited to deliver eight high-quality thematic lectures, continuing to inspire innovation among
young people.
During the Reporting Period, the TCL Public Welfare Foundation stayed firmly committed to strengthening
rural infrastructure, fostering local industries, and enhancing early childhood care and development. It disbursed
RMB 3.95 million in dedicated funding and adopted a range of measures to support rural revitalization and
integrated urban-rural development. At the implementation level, the Foundation directed funding to key regions
and priority projects, providing RMB 2 million to the Jiexi County Charity Federation, RMB 1 million to the
China Development Research Foundation’s “Sunshine Starting Line Program” in Haidong, Qinghai, RMB
also invested RMB 200,000 through the “TCL Public Welfare Ecological Forest” project to support plateau
ecological restoration in the Sanjiangyuan region. The Foundation also continued to broaden the scope of its
philanthropic activities, incubating and implementing 20 outstanding public welfare projects through the “TCL
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Rose Initiative - Public Welfare Creativity Competition.” Six of these projects were dedicated to rural
revitalization, focusing on children’s education, sports development, and environmental protection, while ensuring
that the benefits of these philanthropic initiatives reached a wider range of communities.
Full Text of the 2026 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, and other relevant parties to be fulfilled within the Reporting Period or remained overdue and unfulfilled as at the
end of the Reporting Period.
II. Occupation of the Company’s funds by the Controlling Shareholder or any of Its Related
Parties for Non-Operational Purposes
□Applicable Not applicable
No such cases in the Reporting Period.
III. Irregularities in the Provision of Guarantees
□Applicable Not applicable
No such cases in the Reporting Period.
IV. Engagement and Disengagement of Independent Auditor
Whether the interim financial report has been audited
□Yes No
The Interim Report has not been audited.
V. Explanation of the Board of Directors on the “Non-Standard Auditor’s Report” for the
Reporting Period
□Applicable Not applicable
VI. Explanation of the Board of Directors on the “Non-Standard Auditor’s Report” for the
Previous Year
□Applicable Not applicable
VII. Insolvency and Reorganization
□Applicable Not applicable
No such cases in the Reporting Period.
Full Text of the 2026 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
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.
□Applicable Not applicable
During the Reporting Period, there were certain related-party transactions regarding purchase or disposal of assets or equity
investments. Please refer to the index in Item 7 of this Section XI Major Related-Party Transactions.
□Applicable Not applicable
During the Reporting Period, there were no major related-party transactions regarding joint investments in third 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.
□Applicable Not applicable
The Company had no deposits, loans, credit granting or other financial business with the related-party finance companies.
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Applicable □Not applicable
Deposits
Amount incurred in the
current period
Relationship Daily deposit Beginning Total Ending
Related Range of Total deposit
with the ceiling balance withdrawal balance
parties interest amount in
Company (RMB’0,000) (RMB’0,000) amount in (RMB’0,000)
current
current
period
period
(RMB’0,000)
(RMB’0,000)
Subsidiary of
TCL
Related
Industries 250,000 0.38% 1032.87 144,334.34 145,367.21 0
legal entity
Holdings Co.,
Ltd.
Loans
Amount incurred in the
current period
Relationship Beginning Total Ending
Related Loan limit Range of Total loan
with the balance repayment balance
parties (RMB'0,000) interest amount in
Company (RMB’0,000) amount in (RMB’0,000)
current
current
period
period
(RMB’0,000)
(RMB’0,000)
Subsidiary of
TCL
Related
Industries 250,000 - - - - -
legal entity
Holdings Co.,
Ltd.
Credit or other financial business
Relationship with the Total amount Actual amount
Related parties Business type
Company (RMB'000,000,000) (RMB’0,000)
Subsidiary of TCL The balance of
Credit granting (bill
Industries Holdings Related legal entity comprehensive credit 0
acceptance)
Co., Ltd. on any day shall not
exceed RMB 2.5
Subsidiary of
Credit granting (bill billion (including
TCL Industries Related legal entity 0
discount) loans, bill discounting,
Holdings Co., Ltd.
and bill acceptance)
Note: At the 2024 Annual General Meeting, the Company reviewed and approved the Proposal on Continuing to Provide
Financial Services to Related Parties and Renewing the Financial Services Agreement for Related-Party Transactions. The
agreement shall remain valid from the date of its approval at the 2024 Annual General Meeting until the date on which a similar
proposal is approved at the Company’s next general meeting.
Applicable □Not applicable
Related inquiries on the website for interim disclosure of major related-party transactions
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Title of announcement Date of interim disclosure Website for disclosure
Announcement on the Anticipated
Recurring Related-Party Transactions for
Proposal on Recurring Related-Party
Leases for 2026 January 20, 2026
Announcement on the Related-Party
Transactions with Shenzhen Jucai
Supply Chain Technology Co., Ltd. in
Report on the Execution of Recurring
Related-Party Transactions in 2025
www.cninfo.com.cn
Special note on financial businesses,
including deposits and loans, relating to
related-party transactions of finance March 28, 2026
companies
Announcement on the Launch of
Accounts Receivable Factoring and the
Related-Party Transaction
Announcement on the Acquisition of
Partial Minority Equity Interests in a
May 30, 2026
Subsidiary and the Related-Party
Transaction
XII. Major Contracts and Execution thereof
(1) Entrustment
□Applicable Not applicable
During the Reporting Period, the Company had no entrusted projects that generated profits or losses representing 10% or more of the
net profit attributable to shareholders of the parent company for the Reporting Period.
(2) Contracting
□Applicable Not applicable
During the Reporting Period, the Company had no contracting projects that generated profits or losses representing 10% or more of
the net profit attributable to shareholders of the parent company for the Reporting Period.
(3) Leases
□Applicable Not applicable
During the Reporting Period, the Company had no lease projects that generated profits or losses representing 10% or more of the net
profit attributable to shareholders of the parent company for the Reporting Period.
Applicable □Not applicable
Unit: RMB'0,000
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Disclosure
Guarantee
date of Actual Actual Counter-
Guarantee Type of Collateral Term of Fulfilled for related
Obligor announcement occurrence guarantee guarantee (if
limit guarantee (if any) guarantee or not parties or
on guarantee date amount any)
not
limit
Shenzhen Qianhai Sailing
Joint With
International Supply April 25, January 30, 13 days-
Chain Management Co., 2026 2026 119 days
guarantee guarantee
Ltd.
Joint With
Qihang International April 25,
Import & Export Limited 2026
guarantee guarantee
Guangzhou Qihang Joint With
April 25,
International Supply 30,000 - 0 liability / counter- - - No
Chain Co., Ltd. guarantee guarantee
Guarantee in
Aijiexu New Electronic Joint proportion
April 25, April 28, 2.3-4
Display Glass (Shenzhen) 15,000 9,603 liability / to No No
Co., Ltd. guarantee shareholding
percentage
Guarantee in
Inner Mongolia Xinhua Joint proportion
April 25, May 22,
Bandaoti Technology 46,400 35,200 liability / to 3.9 years No No
Co., Ltd. guarantee shareholding
percentage
Guarantee in
Inner Mongolia Xinhuan Joint proportion
April 25, June 15,
Silicon Energy 136,235 119,397 liability / to 3 years No No
Technology Co., Ltd. guarantee shareholding
percentage
Total actual amount
Total approved limit for such guarantees of such guarantees in
in Reporting Period (A1) Reporting Period
(A2)
Total balance of such
Total approved limit for such guarantees guarantees at the end
at the end of the Reporting Period (A3) of Reporting Period
(A4)
Guarantees provided by the Company as the parent for its subsidiaries
Disclosure
Guarantee
date of Actual Actual Counter-
Guarantee Type of Collateral Term of Fulfilled for related
Obligor announcement occurrence guarantee guarantee (if
limit guarantee (if any) guarantee or not parties or
on guarantee date amount any)
not
limit
Joint
Highly (Tianjin) E- April 25,
Commerce Co., Ltd. 2026
guarantee
Joint
Highly (Tianjin) April 25, April 14, 1 day-51
Technology Co., Ltd. 2026 2026 days
guarantee
Joint
Mingsi Technology Co., April 25, April 13,
Ltd. 2026 2026
guarantee
Joint
Beijing Hecheng Nuoxin April 25, July 10,
Technology Co., Ltd. 2026 2025
guarantee
Joint
Beijing Lingyun Data April 25, July 16, 6 days-
Technology Co., Ltd. 2026 2025 207 days
guarantee
Joint
Beijing Sunpiestore April 25, September 4, 10 days-
Technology Co., Ltd. 2026 2024 1.2 years
guarantee
Joint
Highly Information April 25, 13 days-
Industry Co., Ltd. 2026 1.3 years
guarantee
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Joint
Tianjin TiTi Yunchuang April 25, July 10,
Technology Co., Ltd. 2026 2025
guarantee
Joint
Tianjin Wanfang Nuoxin April 25, July 10,
Technology Co., Ltd. 2026 2025
guarantee
Joint
Beijing Youyi Online April 25,
Technology Co., Ltd. 2026
guarantee
Joint
Tianjin Printronics April 25, November
Circuit Corporation 2026 17, 2022
guarantee
TCL Zhonghuan Joint
April 25,
Renewable Energy 440,000 - 0 liability / / - - No
Technology Co., Ltd. guarantee
Joint
Ningxia Zhonghuan Solar April 25,
Material Co., Ltd. 2026
guarantee
Zhonghuan Advanced Joint
April 25,
Bandaoti Technology 300,000 - 0 liability / / - - No
Co., Ltd. guarantee
Joint
April 25,
LumeTech PTE Ltd 90,000 - 0 liability / / - - No
guarantee
Joint
LumeTech Energy April 25,
S.J.S.C. 2026
guarantee
China Display
Joint
Optoelectronics April 25, March 25, 20 days-
Technology (Huizhou) 2026 2026 118 days
guarantee
Co., Ltd.
Joint
MOKA GLOBAL April 25,
LIMITED 2026
guarantee
Joint
Guangzhou Zhihui April 25, November
Shengke Co., Ltd. 2026 29, 2024
guarantee
TTE ELECTRONICS Joint
April 25,
INDIA PRIVATE 10,000 - 0 liability / / - - No
LIMITED guarantee
Huizhou Moka Joint
April 25, March 27, 76 days-
Technology Development 30,000 16 liability / / No No
Co., Ltd. guarantee
Joint
Moka Technology April 25, November 6 days-2.7
(Guangdong) Co., Ltd. 2026 24, 2023 years
guarantee
Shenzhen Zhixian Shijie Joint
April 25,
Software Technology 1,000 - 0 liability / / - - No
Co., Ltd. guarantee
Shenzhen Zhilian Joint
April 25,
Shuchuang Technology 1,000 - 0 liability / / - - No
Co., Ltd. guarantee
MOKA TECHNOLOGY Joint
April 25,
VIETNAM COMPANY 20,000 - 0 liability / / - - No
LIMITED guarantee
TCL China Star Joint
April 25, December 15 days-
Optoelectronics 2,740,000 1,089,411 liability / / No No
Technology Co., Ltd. guarantee
Guangdong Juhua Printed Joint
April 25,
Display Technology Co., 0 - 0 liability / / - - No
Ltd. guarantee
Guangzhou China Star
Joint
Optoelectronics Bandaoti April 25, June 29,
Display Technology Co., 2026 2026
guarantee
Ltd.
Huizhou China Star Joint
April 25, February 27, 81 days-
Optoelectronics Display 500,000 144,065 liability / / No No
Co., Ltd. guarantee
Shenzhen China Star
Joint
Optoelectronics Bandaoti April 25, June 15,
Display Technology Co., 2026 2020
guarantee
Ltd.
Suzhou China Star Joint
April 25, August 30,
Optoelectronics Display 50,000 47,386 liability / / 5.9 years No No
Co., Ltd. guarantee
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Wuhan China Star
Joint
Optoelectronics Bandaoti April 25, September 20 days-
Display Technology Co., 2026 28, 2021 6.3 years
guarantee
Ltd.
Wuhan China Star Joint
April 25, August 25, 17 days-
Optoelectronics 1,100,000 545,355 liability / / No No
Technology Co., Ltd. guarantee
Guangzhou China Star
Joint
Optoelectronics Printed April 25, June 29, 1.1-1.8
Display Technology Co., 2026 2026 years
guarantee
Ltd.
Joint
TCL Technology April 25, June 23,
Investments Limited 2026 2025
guarantee
Joint
TCL Technology Capital April 25,
Limited 2026
guarantee
Joint
TCL Technology Group April 25, August 31,
(Tianjin) Co., Ltd. 2026 2022
guarantee
Joint
TCL Culture Media April 25,
(Shenzhen) Co., Ltd. 2026
guarantee
Total actual amount
of such guarantees for
Total guarantee limit for subsidiaries
approved in the Reporting Period (B1)
Reporting Period
(B2)
Total balance of
Total guarantee limit for subsidiaries guarantees for
approved at the end of the Reporting 11,191,000 subsidiaries at the end 3,822,577
Period (B3) of the Reporting
Period (B4)
Guarantees provided between subsidiaries
Disclosure
Guarantee
date of Actual Actual Counter-
Guarantee Type of Collateral Term of Fulfilled for related
Obligor announcement occurrence guarantee guarantee (if
limit guarantee (if any) guarantee or not parties or
on guarantee date amount any)
not
limit
Joint
Highly (Tianjin) April 25, January 4, 4 days-33
Technology Co., Ltd. 2026 2026 days
guarantee
Techigh Circuit Joint
April 25, September 9, 88 days-
Technology (Zhuhai) Co., 87,000 35,629 liability / / No No
Ltd. guarantee
Huizhou China Star Joint
April 25, January 16, 27 days-
Optoelectronics Display 700,000 271,800 liability / / No No
Co., Ltd. guarantee
Shenzhen China Star
Joint
Optoelectronics Bandaoti April 25, June 15,
Display Technology Co., 2026 2020
guarantee
Ltd.
Wuhan China Star
Joint
Optoelectronics Bandaoti April 25, February 1, 15 days-
Display Technology Co., 2026 2024 4.3 years
guarantee
Ltd.
Wuhan China Star Joint
April 25, October 31, 59 days-
Optoelectronics 332,000 159,617 liability / / No No
Technology Co., Ltd. guarantee
Joint
Fuzhou Huazhao April 25, June 26,
Optoelectronics Co., Ltd. 2026 2026
guarantee
Joint
MOKA GLOBAL April 25, May 24, 53 days-
LIMITED 2026 2026 85 days
guarantee
Joint
MOKA GLOBAL April 25,
LIMITED 2026
guarantee
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Joint
Zhonghuan Energy (Inner July 21,
June 25, 2017 7,320 7,320 liability / / 6 years No No
Mongolia) Co., Ltd. 2017
guarantee
Inner Mongolia Joint
March 22, April 30,
Zhonghuan Crystal 189,975 189,975 liability / / 1.8 years No No
Materials Co., Ltd. guarantee
Joint
Ningxia Zhonghuan Solar January 23, May 30,
Material Co., Ltd. 2022 2022
guarantee
Inner Mongolia Joint
June 28,
Zhonghuan Crystal May 26, 2022 53,085 53,085 liability / / 3 years No No
Materials Co., Ltd. guarantee
Tianjin Huanou New Joint
September
Energy Technology Co., May 26, 2022 59,839 59,839 liability / / 3.2 years No No
Ltd guarantee
Wuxi Zhonghuan Joint
June 30,
Applied Materials Co., May 26, 2022 61,199 61,199 liability / / 3 years No No
Ltd. guarantee
Joint
Huansheng New Energy September
May 26, 2022 17,374 17,374 liability / / 1.2 years No No
(Jiangsu) Co., Ltd. 30, 2022
guarantee
Joint
Huansheng New Energy March 29,
May 26, 2022 42,550 42,550 liability / / 4.1 years No No
(Jiangsu) Co., Ltd. 2023
guarantee
Joint
Huansheng New Energy February 28,
April 8, 2023 67,275 67,275 liability / / 4.6 years No No
(Tianjin) Co., Ltd. 2024
guarantee
Huansheng New Energy Joint
June 30,
(Inner Mongolia) Co., May 16, 2025 103,000 64,724 liability / / 5 years No No
Ltd. guarantee
Tianjin Huan'ou Bandaoti Joint
September
Material&Technology May 16, 2025 38,900 38,900 liability / / 9.3 years No No
Co., Ltd. guarantee
Joint
Tianjin Zhonghuan New December
May 16, 2025 9,342 9,342 liability / / 0.5 years No No
Energy Co., Ltd. 26, 2025
guarantee
Joint
Otog Banner Huanju New April 15, May 15,
Energy Co., Ltd. 2026 2026
guarantee
Ongniud Banner Joint
April 15, May 15,
Guangrun New Energy 2,549 2,549 liability / / 13.4 years No No
Co., Ltd. guarantee
Hohhot Huanju New Joint
April 15, May 15,
Energy Development Co., 30,632 30,632 liability / / 13.4 years No No
Ltd. guarantee
TCL Zhonghuan Energy Joint
April 15,
Technology (Jiangsu) 7,886 June 1, 2026 7,886 liability / / 1 year No No
Co., Ltd. guarantee
Total actual amount
of such guarantees for
Total guarantee limit for subsidiaries
approved in the Reporting Period (C1)
Reporting Period
(C2)
Total balance of
Total guarantee limit for subsidiaries guarantees for
approved at the end of the Reporting 5,713,800 subsidiaries at the end 2,278,189
Period (C3) of the Reporting
Period (C4)
Total guarantee amount (total of the three kinds of guarantees above)
Total actual guarantee
Total guarantee limit approved in the amount in the
Reporting Period (A1+B1+C1) Reporting Period
(A2+B2+C2)
Total guarantee
Total approved guarantee limit at the end balance at the end of
of the Reporting Period (A3+B3+C3) the Reporting Period
(A4+B4+C4)
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Ratio of total guarantee balance (i.e., A4+B4+C4) to the
Company’s net assets
Of which:
Balance of guarantees provided for shareholders, the actual
controller, and their related parties (D)
Balance of debt guarantees provided directly or indirectly for
obligors with an over 70% debt/asset ratio (E)
Amount by which the total guarantee amount exceeds 50% of the
Company’s net assets (F)
Total of the three above amounts (D+E+F) 3,130,957
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 3,541.33 million. The joint guarantee has been filled in the "Company's Guarantee for Subsidiaries"
and "Guarantee Among Subsidiaries", respectively.
(3) In the table above, the Company’s guarantee balance in respect of TCL CSOT includes the relevant amounts in relation to
liquidity support provided by the Company to China Development Bank New Policy Financial Instruments Co., Ltd. and other
entities.
(4) On July 12, 2026, the Company reallocated the guarantee limits provided for its controlled subsidiaries based on their
business needs. Details are as follows: the guarantee limit of RMB 600 million provided to LumeTech Energy S.J.S.C. and the
guarantee limit of RMB 900 million provided to LumeTech PTE Ltd, totaling RMB 1.5 billion, were reallocated to their parent
company, TCL Zhonghuan Renewable Energy Technology Co., Ltd. Following the reallocation, the Company’s guarantee limit for
TZE amounts to RMB 5.9 billion, with the scope of the guarantee covering guarantees provided for its public bond issuance,
financing, and other matters.
The Company has performed internal review procedures for the above-mentioned guarantee reallocation. It’s found that they
did not violate the legal provisions on listed companies, and complied with the relevant requirements of the Announcement on
Providing Guarantees for Subsidiaries in 2026 reviewed and approved at the 2025 Annual General Meeting held on April 24, 2026.
Explanation of guarantees provided in composite forms: Not applicable
Applicable □Not applicable
Unit: RMB'0,000
Balance of entrusted wealth
Product type Risk characteristics management during the Unrecovered overdue amount
Reporting Period
Bank’s wealth management product 76,815.54 0
Securities firm’s wealth Highly secure and 0
management products liquid, with medium-to-
Trust plan low risk 465,120.49 0
Structured deposits 132,000.00 0
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Other 371,421.00 0
Total 1,580,484.46 0
Details of the Company’s role as a sole settlor in entrusting financial institutions for asset management, or its investments in high-
risk entrusted wealth management with low security and poor liquidity
Applicable □Not applicable
Unit: RMB'0,000
Actual Summary
Actual
Type of recovery of the
Name of profit or
entrusted of profit or matter and
entrusted Risk Start Investment loss
Product name institution Product type Amount End date loss during relevant
institution characteristics date of funds during the
(or the reference
(or trustee) Reporting
trustee) Reporting index (if
Period
Period any)
Haitong Caifu Fixed-
No fixed
Jiangxin 100 income
term; open
Series No. 81 Haitong Securities June assets such
Futures Medium-to- weekly; the
FOF Single- Futures firm asset 49,956.84 30, as bonds and / / /
institution low risk Company
Asset Co., Ltd. management 2026 money
may redeem
Management market
at any time
Plan instruments
No fixed Fixed-
China
FOTIC - term; the income
Foreign
Xincheng No. June Company assets such
Economy Trust Medium-to-
and Trade institution low risk
Capital Trust 2026 redemptions money
Trust Co.,
Plan from time market
Ltd.
to time instruments
No fixed
Fixed-
term; the
income
CCB Trust - Company
June assets such
Zunyu No. 20 CCB Trust Trust Medium-to- may redeem
Trust plan 69,455.97 30, as bonds and / / /
Single Fund Co., Ltd. institution low risk or terminate
Trust Plan the trust
market
plan at any
instruments
time
Total 215,077.33 -- -- -- / -- --
□Applicable Not applicable
The Company did not have any other major contracts that should be disclosed during the Reporting Period.
XIII. Record of Communications with the Investment Community, such as Research,
Inquiries, and Interviews during the Reporting Period
Applicable □Not applicable
Primary focus
Type of of the Index of the main
Time of Manner of Communication
Location communication discussion and information
reception communication party
party materials communicated
provided
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Log Sheet No. 2026-001
Annual
on Investor Relations
Conference performance
Activities dated March
March Room of Individuals, and operations
Web conferencing All investors 31, 2026 disclosed by
the Company at
in Shenzhen TECH. for
www.cninfo.com.cn on
March 31, 2026.
Log Sheet No. 2026-002
Foresight Fund,
Performance on Investor Relations
Conference Southern Asset
and operations Activities dated May 6,
May 6, Room of Management,
Web conferencing Institution of TCL 2026 disclosed by the
TECH. for Company at
in Shenzhen Insurance, CITIC
Q1, 2026 www.cninfo.com.cn on
Securities, etc.
May 7, 2026.
Log Sheet No. 2026-003
Aviva-COFCO
Recent on Investor Relations
Conference Life, BOC
operating Activities dated June 2,
June 2, Room of Investment
Web conferencing Institution performance 2026 disclosed by the
of TCL Company at
in Shenzhen An Fund, Huatai
TECH. www.cninfo.com.cn on
Securities, etc.
June 3, 2026.
Contents and
public
January - The
Investor hotline Individuals, Individuals, information,
June Company's -
(telephone) institutions, etc. institutions, etc. etc., disclosed
by the
Company
Contents and
public
January - The
Individuals, Individuals, information,
June Company's irm.cninfo.com.cn irm.cninfo.com.cn
institutions, etc. institutions, etc. etc., disclosed
by the
Company
XIV. Other Significant Events
Applicable □Not applicable
Technology Co., Ltd. through share issuance and cash payment
On March 31, 2026, the Company disclosed the Report (Draft) on Asset Purchase via Share Issuance and Cash Payment and
Raising of Supporting Funds of TCL Technology Group Corporation. The Company proposes to acquire, through share issuance and
cash payment, the 45% equity interest in Guangzhou CSOT Bandaoti held by Guangdong Hengjian Investment Holding Co., Ltd.,
Guangzhou Chengfa Xingguang Investment Partnership (Limited Partnership) and Science City (Guangzhou) Investment Group Co.,
Ltd., and to raise supporting funds concurrently.
On April 24, 2026, the Company convened the 2025 Annual General Meeting, at which the aforementioned matters were reviewed
and approved.
On April 29, 2026, the Company received the Notice on Acceptance of the Application Documents of TCL Technology Group
Corporation for Asset Purchase via Share Issuance and Raising of Supporting Funds issued by the Shenzhen Stock Exchange.
On June 1, 2026, the Board reviewed and approved the Proposal on Canceling the Raising of Supporting Funds for the Asset
Purchase via Share Issuance. Taking into account the interests of all shareholders and the sustained positive momentum in the
Company’s operations and development, the Company decided to voluntarily cancel the arrangement for raising supporting funds
for the asset purchase via share issuance. The cash consideration will instead be paid from the Company’s own or self-raised funds.
On July 24, 2026, the Merger and Acquisition Review Committee of the Shenzhen Stock Exchange approved the Company’s
acquisition of the 45% equity interest in Guangzhou CSOT Bandaoti through share issuance and cash payment.
On August 19, 2026, the Company received the Reply on Approving the Registration of TCL Technology Group Corporation’s Asset
Purchase via Share Issuance (CSRC Permit [2026] No. 2116) issued by the China Securities Regulatory Commission.
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
On August 21, 2026, the industrial and commercial registration for the transfer of the 45% equity interest in Guangzhou China Star
Optoelectronics Bandaoti Display Technology Co., Ltd. was completed. The newly issued shares will be listed on August 31, 2026.
On June 1, 2026, the Board reviewed and approved the Proposal on Adjustments to Matters Relating to the Company’s 2025
Employee Stock Ownership Plan, the Proposal on the 2026 Partner Stock Ownership Plan of TCL Technology Group Corporation
(Draft) and Its Summary, and other related proposals. To strengthen the alignment of key management personnel’s interests with the
Company’s long-term development and effectively promote shared benefits and responsibilities, the Company implemented the
Partner Stock Ownership Plan for directors, senior management, and other management personnel at specified levels. The vesting
arrangements under the Partner Stock Ownership Plan were changed from “a one-year lock-up period followed by vesting/unlocking
over two years” to “a five-year lock-up period followed by a one-time release upon expiry.” The Partner Stock Ownership Plan will
also act in concert with the Company's largest shareholder.
On June 22, 2026, the aforementioned matters were reviewed and approved at the Second Extraordinary General Meeting of 2026.
The related work is progressing in an orderly manner.
XV. Significant Events of the Company’s Subsidiaries
□Applicable Not applicable
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Part VI Changes in Shares and Information about Shareholders
I. 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
Shares
held by
public legal
entities
held by other
domestic
investors
Among
which:
shares held 89,073,633 0.43% 0 0 0 -89,073,633 -89,073,633 0 0.00%
by domestic
legal entities
Shares
held by
domestic
individuals
held by
foreign
investors
Among
which:
shares held 298,099,761 1.43% 0 0 0 -298,099,761 -298,099,761 0 0.00%
by foreign
legal entities
Shares
held by
foreign
individuals
wealth
management
product, etc.
II. Non- 18,096,698,241 87.00% 0 0 0 1,031,989,889 1,031,989,889 19,128,688,130 91.96%
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
restricted
shares
denominated
ordinary
shares
III. Total
shares
Reasons for changes in shares
Applicable □Not applicable
purchase via share issuance and cash payment and raising of supporting funds were released from trading restrictions and listed for
trading on February 24, 2026. The number of non-restricted shares increased accordingly.
number of non-restricted shares decreased accordingly.
Approval of changes in shares
□Applicable Not applicable
Transfer of share ownership
Applicable □Not applicable
Note: On July 10, 2026, the Company disclosed the Announcement on the Implementation Progress of the Employee Stock
Ownership Plans and Completion of the Non-Trading Transfer of Certain Shares Vested in the Holders. The Company completed the
second non-trading transfer under the 2021–2023 Employee Stock Ownership Plan (Phase III), involving 26,973,002 shares in total,
representing 0.13% of the Company’s total share capital. Of these, 1,985,472 shares were transferred to the Company’s directors and
senior management through non-trading transfer, and 24,987,530 shares were transferred to other holders through non-trading
transfer. The Company also completed the first non-trading transfer under the 2024 Employee Stock Ownership Plan, involving
the Company’s directors and senior management through non-trading transfer, and 42,843,541 shares were transferred to other
holders through non-trading transfer.
Progress on any share repurchase
Applicable □Not applicable
Note: On July 3, 2026, the Company disclosed the Progress Announcement on the Repurchase of Publicly Traded Shares in 2026. As
of June 30, 2026, the Company had repurchased 82,167,590 shares through centralized bidding via its dedicated securities account
for share repurchases, representing approximately 0.40% of its total share capital. The highest and lowest transaction prices were
RMB 4.93 and RMB 4.82 per share, respectively, and the total transaction amount was approximately RMB 400 million, exclusive of
transaction costs.
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
On July 18, 2026, the Company published the Announcement on the Proportion of Publicly Traded Shares Repurchased in 2026
Reaching 1% and the Completion of the Share Repurchase. From June 23 to July 17, 2026, the Company repurchased a total of
the total transaction amount was approximately RMB 1.20 billion, exclusive of transaction costs. The actual funds used for the share
repurchase reached the maximum amount specified in the repurchase plan, and the implementation of the plan was therefore
completed.
Progress on reducing the repurchased shares by means of centralized bidding
□Applicable Not applicable
Effects of changes in shares on the basic earnings per share, diluted earnings per share, net asset per share attributable to the
Company's ordinary shareholders and other financial indicators of the prior year and the prior accounting period, respectively
□Applicable Not applicable
The Company’s total share capital did not change during the Reporting Period.
Other information that the Company considers necessary or is required by the securities regulatory authorities to be disclosed
□Applicable Not applicable
Applicable □Not applicable
Unit: share
Number of Number of
Number of Number of
increased released
restricted restricted Reason for Date of restriction
Name of shareholder restricted restricted
shares at shares at restriction release
shares of shares of the
period-begin period-end
the period period
To be released
from trading
Shenzhen Major restrictions 12
Industrial New share months after the
Development Phase I issuance listing date of the
Fund Co., Ltd. newly issued
shares (July 10,
UBS AG 243,467,933 0 243,467,933 0
Shenzhen Runcheng
To be released
Investment
from trading
Management Co., Ltd.
- Runcheng Jinjin No.
months after the
listing date of the
Investment Fund
newly issued
China International New share
shares (August 22,
Capital Corporation 106,888,361 0 106,888,361 0 issuance
Limited
were releasedfrom
CITIC Securities Co.,
Ltd.
and listed for
GF Securities Co., Ltd. 59,382,422 0 59,382,422 0 trading on
MORGAN STANLEY February 24, 2026
& CO. 54,631,828 0 54,631,828 0
INTERNATIONAL
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
PLC.
Guotai Haitong
Securities Co., Ltd.
China Construction
Bank - Efund - CSI 35,741,235 0 35,741,235 0
Changsha Lugu
Capital Management 35,629,453 0 35,629,453 0
Co., Ltd.
Other shareholders
participating in the
Company’s issuance of
shares to specific
investors for raising
supporting funds
Certain shares
held by
directors,
Directors, senior senior
management and 682,382,526 3,499,685 0 685,882,211 management Not applicable
others of the Company and other
persons are
locked up as
required
Total 2,704,164,206 3,499,685 1,035,489,574 1,672,174,317 -- --
II. Issuance and Listing of Securities
Applicable □Not applicable
Aggregate
Issue
Names of stocks and number of
Issue price (or Issue Listing Transaction Index to disclosed Date of
their derivative shares
date interest quantity date closing date information disclosure
securities permitted to
rate)
be traded
Stocks
Not applicable
Convertible corporate bonds, convertible corporate bonds traded separately, corporate bonds
Sci-Tech Innovation
Corporate Bonds
(Digital Economy)
May 19,
Publicly Offered by May May
RMB 2 RMB 2 May 22, 2026
TCL Technology 20, 1.95% 29, www.cninfo.com.cn
billion billion 2029 May 28,
Group Corporation to 2026 2026
Professional Investors
in 2026 (Phase I)
(Type 2)
Other derivative securities
Not applicable
Description of securities issuances during the Reporting Period
TCL Technology Group Corporation’s 2026 Public Offering of Sci-Tech Innovation Corporate Bonds (Digital Economy) to
Professional Investors (Phase I) (Type 2), with the securities code “524812.SZ” and abbreviated securities name “26TCLK1,” had a
total issue size of RMB 2 billion, a coupon rate of 1.95%, and a term of three years.
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
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 693,135 resumed voting rights by the end of the 0
Reporting Period Reporting Period (if any)
Shareholdings of ordinary shareholders with more than 5% or the top 10 shareholders of ordinary shares (excluding the lending of shares under
refinancing)
Number of Shares in pledge, marked or
Increase/decre Number of Number of
shares held at frozen
Name of Nature of Shareholding ase during the restricted non-restricted
the end of the
shareholder shareholder percentage Reporting ordinary ordinary
Reporting Status Shares
Period shares held shares held
Period
Hong Kong
Securities Foreign legal
Clearing entity
Company Ltd.
Li Dongsheng Not applicable 0
Ningbo Jiutian
Liancheng Domestic
Equity individual/Dom Pledge of
Investment estic general Jiutian 153,100,000
Partnership legal entity Liancheng
(Limited
Partnership)
Shenzhen Major
Industrial
Public legal
Development 4.74% 986,292,106 0 986,292,106 0 Not applicable 0
entity
Phase I Fund
Co., Ltd.
Huizhou
Investment Public legal
Holding Co., entity
Ltd.
Wuhan Optics
Valley
Public legal
Industrial 1.10% 228,834,416 -21,014,480 0 228,834,416 Not applicable 0
entity
Investment Co.,
Ltd.
Abu Dhabi
Investment Foreign legal
Authority – entity
Own funds
TCL
Technology
Group Fund, wealth
Corporation - management 0.84% 174,747,985 0 0 174,747,985 Not applicable 0
Stock
Ownership Plan
Perseverance
Asset
Management
Partnership Fund, wealth
(Limited management 0.82% 171,000,000 -35,800,000 0 171,000,000 Not applicable 0
Partnership) - product, etc.
Gaoyi Xiaofeng
No. 2 Zhixin
Fund
China Foreign
Economy and
Trade Trust Co.,
Ltd. - FOTIC - Fund, wealth
Gaoyi Xiaofeng management 0.69% 144,000,000 -25,999,910 0 144,000,000 Not applicable 0
Hongyuan product, etc.
Collective
Capital Trust
Plan
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Strategic investor or general legal
entity becoming top-10 ordinary
Not applicable
shareholders due to private
placement of new shares (if any)
Mr. Li Dongsheng and his acting-in-concert parties are the Company’s largest shareholder in terms of beneficial
ownership. Hong Kong Securities Clearing Company Ltd. is the nominee holder of the Company’s shares held
Note on the above shareholders’ through the Shenzhen–Hong Kong Stock Connect.
Among the top 10 shareholders, Mr. Li Dongsheng and Ningbo Jiutian Liancheng Equity Investment Partnership
associations or concerted actions (Limited Partnership) became persons acting in concert by signing the Agreement on Concerted Action. Mr. Li
Dongsheng holds 901,265,855 shares and Ningbo Jiutian Liancheng Equity Investment Partnership (Limited
Partnership) holds 366,894,736 shares, representing 1,268,160,591 shares in total.
Explanation of the above
shareholders’ involvement in
entrusting/being entrusted with Not applicable
voting rights or waiving voting
rights
Explanation of repurchase
accounts among the top 10 Not applicable
shareholders (if any)
Shareholdings of top 10 non-restricted ordinary shareholders (excluding the lending of shares under refinancing and restricted shares held by senior
management)
Type of shares
Name of shareholder Number of non-restricted shares held at the end of the Reporting Period
Type of shares Quantity
RMB-
Hong Kong Securities Clearing
Company Ltd.
ordinary shares
Li Dongsheng
RMB-
Ningbo Jiutian Liancheng Equity 592,211,200 denominated 592,211,200
Investment Partnership (Limited ordinary shares
Partnership)
RMB-
Huizhou Investment Holding Co.,
Ltd.
ordinary shares
RMB-
Wuhan Optics Valley Industrial
Investment Co., Ltd.
ordinary shares
RMB-
Abu Dhabi Investment Authority
– Own funds
ordinary shares
TCL Technology Group RMB-
Corporation - 2025 Employee 174,747,985 denominated 174,747,985
Stock Ownership Plan ordinary shares
Perseverance Asset Management
RMB-
Partnership (Limited Partnership)
- Gaoyi Xiaofeng No. 2 Zhixin
ordinary shares
Fund
China Foreign Economy and
RMB-
Trade Trust Co., Ltd. - FOTIC -
Gaoyi Xiaofeng Hongyuan
ordinary shares
Collective Capital Trust Plan
RMB-
National Social Security Fund
Portfolio 118
ordinary shares
Related or acting-in-concert Mr. Li Dongsheng and his acting-in-concert parties are the Company’s largest shareholder in terms of beneficial
ownership. Hong Kong Securities Clearing Company Ltd. is the nominee holder of the Company’s shares held
parties among top 10 non- through the Shenzhen–Hong Kong Stock Connect.
restricted shareholders, as well as Among the top 10 shareholders with non-restricted shares, Mr. Li Dongsheng and Ningbo Jiutian Liancheng
between top 10 non-restricted Equity Investment Partnership (Limited Partnership) became persons acting in concert by signing the Agreement
on Concerted Action. Mr. Li Dongsheng holds 225,316,464 non-restricted shares and Ningbo Jiutian Liancheng
shareholders and top 10
Equity Investment Partnership (Limited Partnership) holds 366,894,736 non-restricted shares, representing
shareholders 592,211,200 non-restricted shares in total.
Explanation for the top 10
ordinary shareholders At the end of the Reporting Period, Wuhan Optics Valley Industrial Investment Co., Ltd., among the shareholders
participating in securities margin above, held certain shares of the Company through a credit security account.
trading (if any)
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Participation of shareholders holding more than 5%, the top 10 shareholders, and the top 10 non-restricted shareholders in the lending
of shares under the refinancing business
□Applicable Not applicable
Change in the top 10 shareholders and the top 10 non-restricted shareholders due to securities lending/returning under refinancing as
compared to the previous period
□Applicable Not applicable
Indicate whether any of the top 10 ordinary shareholders or the top 10 non-restricted ordinary shareholders of the Company
conducted any promissory repurchase transactions during the Reporting Period
□Yes No
No such cases in the Reporting Period.
IV. Change in Shareholdings of Directors and Senior Management
Applicable □Not applicable
Number of
Number of
restricted Number of
restricted
Number of Decrease shares restricted
shares
shares held at Increase of of shares Number of shares granted at shares
granted at
Position the beginning shares during during the held at the end of the granted
Name Position the end of
Status of the the Reporting Reporting the Reporting beginning of during the
the
Reporting Period (share) Period Period (share) the Reporting
Reporting
Period (share) (share) Reporting Period
Period
Period (share)
(share)
(share)
Li
Chairman Incumbent 899,786,071 1,479,784 0 901,265,855 0 0 0
Dongsheng
Vice Chairman of
Zhong Wei Incumbent 0 0 0 0 0 0 0
the Board
Wang
Director and CEO Incumbent 268,220 773,141 0 1,041,361 0 0 0
Cheng
Director, Senior
Zhao Jun Incumbent 1,535,941 513,494 0 2,049,435 0 0 0
Vice President
Director, Senior
Yan Xiaolin Vice President, Incumbent 3,220,040 427,164 0 3,647,204 0 0 0
CTO
Director, Board
Secretary and
Liao Qian Incumbent 2,440,829 449,150 0 2,889,979 0 0 0
Senior Vice
President
Lin Feng Director Incumbent 0 0 0 0 0 0 0
Independent
Jin Li Incumbent 0 0 0 0 0 0 0
director
Wan Independent
Incumbent 0 0 0 0 0 0 0
Liangyong director
Wang Independent
Incumbent 0 0 0 0 0 0 0
Lixiang director
Kei May Independent
Incumbent 0 0 0 0 0 0 0
LAU director
Employee
Zhu Wei Representative Incumbent 190,613 110,701 0 301,314 0 0 0
Director
Li Jian CFO Incumbent 2,606,337 708,131 0 3,314,468 0 0 0
Wang Senior Vice
Incumbent 0 0 0 0 0 0 0
Yanjun President
Zhang Vice Chairman of
Former 0 0 0 0 0 0 0
Zuoteng the Board
Total -- -- 910,048,051 4,461,565 0 914,509,616 0 0 0
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Note: The increase in the number of shares held by the Company’s directors and senior management during the Reporting Period
resulted from the non-trading transfer to their securities accounts of shares corresponding to vested interests under the 2021–2023
Employee Stock Ownership Plan (Phase III) and the 2024 Employee Stock Ownership Plan. For details, please refer to the
Announcement on the Implementation Progress of the Employee Stock Ownership Plans and Completion of the Non-Trading
Transfer of Certain Shares Vested in the Holders, published by the Company on designated media on July 10, 2026.
V. Change of the Controlling Shareholder or the Actual Controller
Change of the controlling shareholder in the Reporting Period
□Applicable Not applicable
Change of the actual controller in the Reporting Period
□Applicable Not applicable
VI Preferred Shares
□Applicable Not applicable
During the Reporting Period, the Company did not have preferred shares.
Full Text of the 2026 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
Unit: RMB'0,000
Way of
principal
Date of Outstanding Coupon repayment Place of
Bond name Abbr. Bond code Value date Maturity
issuance balance rate and trading
interest
payment
Sci-Tech
Innovation
Corporate Bonds Interest
(Digital payable
Economy) annually
Publicly Offered and Shenzhen
May 20, May 22, May 22,
by TCL 26TCLK1 524812.SZ 200,000.00 1.95% principal Stock
Technology repayable Exchange
Group in full
Corporation to upon
Professional maturity
Investors in 2026
(Phase I) (Type 2)
Sci-Tech
Innovation
Corporate Bonds Interest
(Digital payable
Economy) annually
Publicly Offered and Shenzhen
December December December
by TCL 25TCLK1 524603.SZ 150,000.00 2.24% principal Stock
Technology repayable Exchange
Group in full
Corporation to upon
Professional maturity
Investors in 2025
(Phase I) (Type 2)
Sci-Tech Interest
Shenzhen
Innovation July 8, payable
Corporate Bonds 2029 annually
Exchange
(Digital and
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Economy) principal
Publicly Offered repayable
by TCL in full
Technology upon
Group maturity
Corporation to
Professional
Investors in 2024
(Phase III) (Type
Sci-Tech
Innovation
Corporate Bonds
Interest
(Digital
payable
Economy)
annually
Publicly Offered
and Shenzhen
by TCL July 8,
Technology 2029 (Note 1)
repayable Exchange
Group
in full
Corporation to
upon
Professional
maturity
Investors in 2024
(Phase III) (Type
Sci-Tech
Innovation
Corporate Bonds Interest
(Digital payable
Economy) annually
Publicly Offered and Shenzhen
April 11, April 11,
by TCL 24TCLK2 148683.SZ April 9, 2024 150,000.00 2.69% principal Stock
Technology repayable Exchange
Group in full
Corporation to upon
Professional maturity
Investors in 2024
(Phase II)
Investor eligibility (if any) For qualified investors / for professional investors; not applicable for foreign bonds
Match to trade, click to trade, inquire to trade, bid to trade, negotiate to trade; not
Applicable trading mechanism
applicable for foreign bonds
Risk of termination of listing and trading
No
(if any) and countermeasures
Note 1: The Sci-Tech Innovation Corporate Bonds (Digital Economy) Publicly Offered by TCL Technology Group Corporation to
Professional Investors in 2024 (Phase III) (Type 1) have a term of 5 years and will expire on July 8, 2029. The bonds include the
issuer's redemption option, the option to adjust the coupon rate, and the investor's put option at the end of the third year. If the issuer's
call option or investors' put option is exercised, the maturity date of the exercised bonds shall be July 8, 2027.
Note 2: The Sci-Tech Innovation Corporate Bonds (Digital Economy) Publicly Offered by TCL Technology Group Corporation to
Professional Investors in 2024 (Phase II) have a term of 5 years and will expire on April 11, 2029. The bonds include the issuer's
redemption option, the option to adjust the coupon rate, and the investor's put option at the end of the third year. If the issuer's call
option or investors' put option is exercised, the maturity date of the exercised bonds shall be April 11, 2027.
Overdue bonds
□Applicable Not applicable
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
□Applicable Not applicable
□Applicable Not applicable
regarding debt repayment during the Reporting Period, and their impact on the equity of bond investors
□Applicable Not applicable
III. Debt Financing Instruments of Non-Financial Enterprises
Applicable □Not applicable
Unit: RMB'0,000
Way of
principal
Date of Outstanding Coupon Place of
Bond name Abbr. Bond code Value date Maturity repayment and
issuance balance rate trading
interest
payment
Short-Term
Commercial Principal and
Paper of 26TCL interest Inter-
TCL Group 200,000.00 1.47% payable in a bank
IB 2026 2026 14, 2026
Technology SCP002 lump sum at market
Group maturity
Corporation
(Phase II)
Short-Term
Commercial Principal and
Paper of 26TCL interest Inter-
TCL Group 300,000.00 1.45% payable in a bank
IB 2026 2026 2026
Technology SCP001 lump sum at market
Group maturity
Corporation
(Phase I)
Unless the
Company
Tech
Innovation
Group option to defer
Bonds of Inter-
MTN001 102680444. February 3, February 5, interest
TCL —— 100,000.00 2.35% bank
(Sci-Tech IB 2026 2026 payments,
Technology market
Innovation interest on the
Group
Bonds) Bonds is
Corporation
payable
(Phase I)
annually.
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Tech Interest
Innovation payable
Group
Bonds of annually and Inter-
MTN002 102582064. May 12, May 14, May 14,
TCL 100,000.00 2.50% principal bank
(Sci-Tech IB 2025 2025 2030
Technology repayable in market
Innovation
Group full upon
Bonds)
Corporation maturity
(Phase II)
Term Notes
of TCL Interest
Technology payable
Group
Group annually and Inter-
MTN001B 102580146. January 8, January 10, January 10,
Corporation 100,000.00 2.60% principal bank
(Sci- IB 2025 2025 2030
(Phase I) repayable in market
Tech Innova
(Sci-Tech full upon
tion Notes)
Innovation maturity
Notes)
(Type 2)
Term Notes
of TCL Interest
Technology payable
Group
Group annually and Inter-
MTN001A 102580145. January 8, January 10, January 10,
Corporation 100,000.00 2.00% principal bank
(Sci- IB 2025 2025 2028
(Phase I) repayable in market
Tech Innova
(Sci-Tech full upon
tion Notes)
Innovation maturity
Notes)
(Type 1)
The super short-term commercial papers and medium-term notes are issued to institutional
Investor eligibility (if any) investors in China’s interbank bond market (excluding those prohibited from purchasing by
national laws and regulations)
Applicable trading mechanism Negotiated transaction, request for quote, and click-to-trade
Risk of termination of listing and
No
trading (if any) and countermeasures
Overdue bonds
□Applicable Not applicable
□Applicable Not applicable
□Applicable Not applicable
regarding debt repayment during the Reporting Period, and their impact on the equity of bond investors
□Applicable Not applicable
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
IV. Convertible Corporate Bonds
□Applicable Not applicable
During the Reporting Period, the Company did not have convertible corporate bonds.
V. Consolidated loss of the Reporting Period Exceeding 10% of Net Assets of the last year-end
□Applicable Not applicable
VI. Key Accounting Data and Financial Indicators of the Company for the Past Two Years as
at the End of the Reporting Period
End of the December 31,
Item Change
Reporting Period 2025
Current ratio 0.88 0.97 -9.28%
Debt/asset ratio 65.0% 64.2% 0.82 percentage points
Quick ratio 0.57 0.68 -16.18%
H1 2026 H1 2025 Change
Net profits after deducting non-recurring gains and
losses (RMB'0,000)
Debt-to-EBITDA ratio 8.60% 7.04% 1.56 percentage points
Interest coverage ratio 2.09 1.14 83.33%
Cash interest coverage ratio 9.22 11.48 -19.69%
EBITDA interest coverage ratio 9.50 7.25 31.03%
Debt repayment ratio 100% 100% 0.00
Interest repayment ratio 100% 100% 0.00
Full Text of the 2026 Interim Report of TCL Technology Group Corporation
Part VIII Financial Report
(For the period from January 1, 2026 to June 30, 2026)
I. Auditor’s Report
Whether the 2026 interim report has been audited or not?
□ Yes √ No
The Company’s 2026 interim financial report has not yet been audited.
II. Financial Statements
The unit of the notes to the financial report is: RMB’000
TCL Technology Group Corporation
Consolidated Balance Sheet
(RMB’000)
Note V June 30, 2026 December 31, 2025
Current assets
Monetary assets 1 23,149,621 30,460,060
Held-for-trading financial assets 2 18,350,671 14,473,193
Derivative financial assets 3 25,350 78,957
Notes receivable 4 634,337 480,225
Accounts receivable 5 19,982,086 22,153,003
Receivables financing 6 528,486 625,789
Prepayments 7 2,957,963 1,909,444
Other receivables 8 2,985,983 3,500,623
Inventories 9 22,977,466 18,370,708
Contract assets 10 380,944 385,576
Held-for-sale assets - 363,065
Non-current assets due within one year 11 1,536,827 1,564,945
Other current assets 12 8,151,975 8,411,624
Total current assets 101,661,709 102,777,212
Non-current assets
Debt investments 13 574,650 578,159
Long-term receivables 14 94,730 120,628
Long-term equity investments 15 24,224,710 23,349,193
Investments in other equity instruments 16 176,292 356,456
Other non-current financial assets 17 4,561,038 3,172,659
Investment properties 18 421,250 401,873
Fixed assets 19 157,724,421 165,003,156
Construction in progress 20 18,834,204 16,176,848
Right-of-use assets 21 4,297,808 6,189,174
Intangible assets 22 17,879,484 18,467,310
Development expenditures 23 1,048,597 1,204,955
Goodwill 24 11,478,778 11,409,749
Long-term deferred expenses 25 2,676,372 2,282,883
Deferred income tax assets 26 3,273,398 2,936,332
Other non-current assets 27 16,217,528 18,311,727
Total non-current assets 263,483,260 269,961,102
Total assets 365,144,969 372,738,314
Person-in-
Person-in-charge charge of
Legal of financial the financial Jing
representative: Li Dongsheng affairs: Li Jian department: Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Consolidated Balance Sheet (Continued)
(RMB’000)
Liabilities and shareholders' equity Note V June 30, 2026 December 31, 2025
Current liabilities
Short-term borrowings 29 10,889,509 7,552,523
Borrowings from the Central Bank 30 109,722 29,756
Customer deposits and deposits from other
banks and financial institutions
Held-for-trading financial liabilities 32 237,565 235,717
Derivative financial liabilities 33 137,277 50,435
Notes payable 34 8,746,702 6,465,600
Accounts payable 35 34,428,400 32,251,944
Advances from customers 36 5,795 6,823
Contract liabilities 37 1,994,629 2,009,842
Employee compensation payable 38 4,036,787 4,966,488
Taxes and levies payable 39 1,122,967 1,238,334
Other payables 40 16,785,612 17,715,638
Held-for-sale liabilities 41 - 71,510
Non-current liabilities due within one year 42 29,402,192 30,909,784
Other current liabilities 43 6,847,431 1,662,144
Total current liabilities 114,986,882 105,531,252
Non-current liabilities
Long-term borrowings 44 103,335,672 116,139,349
Bonds payable 45 9,981,860 7,981,874
Lease liabilities 46 3,788,755 4,148,598
Long-term payables 47 1,161,439 1,388,759
Long-term employee compensation payable 38 21,295 21,605
Deferred income 48 2,443,190 2,151,176
Deferred income tax liabilities 26 1,588,589 1,775,607
Provision 49 208,709 231,480
Other non-current liabilities 50 9,003 25,635
Total non-current liabilities 122,538,512 133,864,083
Total liabilities 237,525,394 239,395,335
Share capital 51 20,800,862 20,800,862
Other equity instruments 52 997,630 -
Capital reserves 53 13,334,533 14,155,725
Less: Treasury share 54 1,506,488 1,503,652
Other comprehensive income 55 (1,000,894) (1,042,359)
Surplus reserves 56 4,096,815 4,096,815
Specific reserves 57 6,446 5,598
General risk reserve 58 8,934 8,934
Retained earnings 59 26,829,952 24,910,834
Total equity attributable to shareholders of the
parent company
Non-controlling interests 64,051,785 71,910,222
Total shareholders’ equity 127,619,575 133,342,979
Total liabilities and shareholders' equity 365,144,969 372,738,314
Person-in-
Person-in-charge charge of
Legal of financial the financial Jing
representative: Li Dongsheng affairs: Li Jian department: Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Consolidated Income Statement
(RMB’000)
Note V January - June 2026 January - June 2025
I. Total revenue 88,686,905 85,661,626
Including: Operating revenue 60 88,648,187 85,560,004
Interest income 61 38,718 101,622
Less: Operating cost 60 77,240,902 74,082,838
Interest expenditures 61 994 7,789
Taxes and levies 62 529,504 598,144
Sales expenses 63 1,208,258 1,163,965
Administrative expenses 64 2,352,226 2,200,559
R&D expenses 65 4,547,732 4,741,879
Financial expenses 66 2,334,063 2,141,282
Including: Interest expenses 2,033,917 2,555,367
Interest income 268,765 353,536
Add: Other income 67 819,234 1,238,502
Return on investment 68 2,193,723 831,296
Including: Return on investment in
joint ventures and associates
Exchange gain 61 972 207
Gain on changes in fair value 69 1,257,456 469,888
Credit impairment loss 70 (11,349) (25,391)
Asset impairment loss 71 (2,328,103) (2,798,944)
Asset disposal income 72 51,872 (3,019)
II. Operating profit 2,457,031 437,709
Add: Non-operating income 73 19,590 29,825
Less: Non-operating expenses 74 178,162 119,957
III. Gross profit 2,298,459 347,577
Less: Income tax expense 75 55,193 315,894
IV. Net profits 2,243,266 31,683
(I) Classification by business continuity
(II) Classification by ownership
the parent company
interests
(1,565,006) (1,851,817)
V. Other comprehensive income, net of tax 55 48,197 (133,902)
(I) Other comprehensive income that cannot
be subsequently reclassified into profit or loss
(II) Other comprehensive income that may
subsequently be reclassified into profit or loss 15,687 (130,560)
upon satisfaction of prescribed conditions
VI. Total comprehensive income 2,291,463 (102,219)
Total comprehensive income attributable to
the shareholders of the parent company
Total comprehensive income attributable to
non-controlling interests
(1,558,274) (1,902,367)
VII. Earnings per share: 76
(I) Basic earnings per share (RMB yuan) 0.1861 0.1014
(II) Diluted earnings per share (RMB yuan) 0.1831 0.1003
Person-in-
charge of the
Legal Person-in-charge of Financial
representative: Li Dongsheng financial affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Consolidated Cash Flow Statement
(RMB’000)
January - June January - June
Note V
I. Net cash generated from operating activities:
Proceeds from the sale of commodities and rendering of
services
Net increase/(decrease) in deposits from customers,
(122,395) 946,185
banks, and other financial institutions
Net increase/(decrease) in borrowings from the Central
Bank
Cash received from interest, handling charge and
commission
Tax and levy rebates 4,105,154 2,647,636
Other cash received relating to operating activities 77 5,393,139 8,523,407
Sub-total of cash inflows in operating activities 107,987,048 111,436,991
Cash paid for commodities and services (72,475,378) (64,763,780)
Net (increase)/decrease in loans and advances to
- (273,794)
customers
Net (increase)/decrease in deposits with the Central
Bank, banks, and other financial institutions
Cash paid for interest, service charges and commissions (1,432) -
Cash paid to and for employees (8,064,471) (7,713,812)
Taxes and levies paid (1,990,494) (2,607,678)
Other cash paid relating to operating activities 78 (7,898,936) (8,827,613)
Sub-total of cash outflows from operating activities (90,364,896) (84,163,008)
Net cash generated from operating activities 83 17,622,152 27,273,983
II. Cash flow generated from investing activities:
Proceeds from disinvestments 78,715,281 47,498,688
Proceeds from return on investments 2,116,245 1,282,593
Net proceeds from disposal of fixed assets, intangible
assets, and other long-term assets
Net proceeds from disposal of subsidiaries and other
business units
Other cash received relating to investing activities 79 266,765 182,916
Sub-total of cash inflows from investment activities 81,436,052 48,969,478
Payments for the acquisition and construction of fixed
(10,809,938) (8,313,973)
assets, intangible assets and other long-term assets
Payments for investments (78,597,560) (56,395,015)
Net payments for acquiring subsidiaries and other
business units
Cash used in other investing activities 80 (637,513) (464,253)
Subtotal of cash outflows from investing activities (91,807,069) (71,277,824)
Net cash generated from investing activities (10,371,017) (22,308,346)
Person-in-charge
Legal Person-in-charge of the Financial
representative: Li Dongsheng of financial affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Consolidated Cash Flow Statement (Continued)
(RMB’000)
January - June January - June
Note V
III. Cash flow generated from financing activities:
Capital contributions received 2,432,078 71,254
Including: Capital contributions by non-controlling
interests to subsidiaries
Borrowings raised 30,934,262 48,905,168
Cash received from bond issue 7,000,000 3,240,000
Other cash received relating to financing activities 81 236,894 544,843
Sub-total of cash inflows from financing activities 40,603,234 52,761,265
Cash paid for debt repayment (39,380,608) (40,458,985)
Cash paid for distribution of dividends and profits or the
(3,984,271) (2,718,734)
repayment of interests
Including: Dividend and profit paid by subsidiaries to
(48,023) (11,617)
minority shareholders
Other cash paid relating to financing activities 82 (8,807,007) (9,101,549)
Subtotal of cash outflows from financing activities (52,171,886) (52,279,268)
Net cash generated from financing activities (11,568,652) 481,997
IV. Effect of exchange rate changes on cash and cash
(29,562) 247,772
equivalents
V. Net increase in cash and cash equivalents (4,347,079) 5,695,406
Add: Beginning balance of cash and cash equivalents 26,565,803 20,861,255
VI. Ending balance of cash and cash equivalents 84 22,218,724 26,556,661
Person-in-
Person-in-charge charge of
Legal of financial the financial
representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Consolidated Statement of Changes in Shareholders’ Equity
(RMB’000)
January - June 2026
Equity attributable to shareholders of the parent company
Other Total
Other equity Capital Specific Surplus General risk Retained Non-controlling
Share capital Treasury share comprehensive shareholders’
instruments reserves reserves reserves reserve earnings interests
income equity
I. Balance at the end of the prior year 20,800,862 - 14,155,725 (1,503,652) 5,598 (1,042,359) 4,096,815 8,934 24,910,834 71,910,222 133,342,979
Add: Change in accounting policies - - - - - - - - - - -
II. Balance at the beginning of the current
period
III. Movement of the current period - 997,630 (821,192) (2,836) 848 41,465 - - 1,919,118 (7,858,437) (5,723,404)
(I) Comprehensive income - - - - - 24,388 - - 3,808,272 (1,558,274) 2,274,386
(II) Capital contributed and reduced by - - - - - -
shareholders
Capital contributed by shareholders - - (679,984) (400,044) - - - - - 1,880,115 800,087
Share-based payments included in owners' - - - - - - 10,449
- (65,496) 397,208 342,161
equity
Amount of bond issuance included in - - - - - - - -
owners' equity
Others - - (65,443) - - - - - - (7,897,546) (7,962,989)
(III) Profit distribution - - - - - - - - (1,872,077) (294,114) (2,166,191)
Appropriation to shareholders - - - - - - - - (1,872,077) (294,114) (2,166,191)
(IV) Internal transfer of owner's equity - - - - - 17,077 - - (17,077) - -
Other comprehensive income transferred to - - - - - 17,077 - - - -
(17,077)
retained earnings
(V) Specific reserves - - - - 848 - - - - 933 1,781
Accrued in the period - - - - 3,422 - - - - 8,364 11,786
Specific reserves used in the current period - - - - (2,574) - - - - (7,431) (10,005)
(VI) Others - - (10,269) - - - - - - - (10,269)
IV. Balance as at the end of the current period 20,800,862 997,630 13,334,533 (1,506,488) 6,446 (1,000,894) 4,096,815 8,934 26,829,952 64,051,785 127,619,575
Person-in-charge of
Legal Person-in-charge of the financial
representative: Li Dongsheng financial affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Consolidated Statement of Changes in Shareholders’ Equity
(RMB’000)
January - June 2025
Equity attributable to shareholders of the parent company
Other Total
Other equity Capital Treasury Specific Surplus General risk Retained Non-controlling
Share capital comprehensive shareholders’
instruments reserves share reserves reserves reserve earnings interests
income equity
I. Balance at the end of the prior year 18,779,081 - 10,553,081 (919,322) 7,189 (740,459) 3,974,386 8,934 21,504,719 79,536,135 132,703,744
Add: Change in accounting policies - - - - - - - - - - -
II. Balance at the beginning of the current
period
III. Movement of the current period - - (647,340) 215,670 (2,069) (83,352) - - 944,588 (3,789,084) (3,361,587)
(I) Comprehensive income - - - - - (83,310) - - 1,883,500 (1,902,367) (102,177)
(II) Capital contributed and reduced by - - - - - - -
(628,811) 215,670 (1,871,965) (2,285,106)
shareholders
Capital contributed by shareholders - - (621,898) - - - - - - 71,254 (550,644)
Share-based payments included in owners' - - - - - - - 50,426
(6,913) 215,670 259,183
equity
Amount of bond issuance included in - - - - - - - - - - -
owners' equity
Others - - - - - - - - - (1,993,645) (1,993,645)
(III) Profit distribution - - - - - - - - (938,954) (14,752) (953,706)
Appropriation to shareholders - - - - - - - - (938,954) (14,752) (953,706)
(IV) Internal transfer of owner's equity - - - - - (42) - - 42 - -
Other comprehensive income transferred to - - - - - - - - -
(42) 42
retained earnings
(V) Specific reserves - - - - (2,069) - - - - - (2,069)
Accrued in the period - - - - 3,892 - - - - - 3,892
Specific reserves used in the current period - - - - (5,961) - - - - - (5,961)
(VI) Others - - (18,529) - - - - - - - (18,529)
IV. Balance as at the end of the current period 18,779,081 - 9,905,741 (703,652) 5,120 (823,811) 3,974,386 8,934 22,449,307 75,747,051 129,342,157
Person-in-charge of
Legal Person-in-charge of the financial
representative: Li Dongsheng financial affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Balance Sheet of the Company
(RMB’000)
Assets Note XVI June 30, 2026 December 31, 2025
Current assets
Monetary assets 3,758,529 4,414,482
Held-for-trading financial assets 10,568,829 8,909,440
Accounts receivable 1 57,531 209,196
Prepayments 26,559 23,168
Other receivables 2 14,453,878 9,613,847
Non-current assets due within one year 1,500,000 -
Other current assets 24,364 23,485
Total current assets 30,389,690 23,193,618
Non-current assets
Long-term equity investments 3 88,145,008 95,318,595
Other non-current financial assets 4 797,684 398,546
Investment properties 68,156 69,999
Fixed assets 38,076 42,829
Construction in progress 176,674 100,922
Right-of-use assets 395,550 407,196
Intangible assets 65,937 72,133
Long-term deferred expenses 19,792 19,886
Other non-current assets 3,860,503 1,583,068
Total non-current assets 93,567,380 98,013,174
Total assets 123,957,070 121,206,792
Person-in-
Person-in-charge charge of
Legal of financial the financial
representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Balance Sheet of the Company (Continued)
(RMB’000)
Liabilities and shareholders' equity Note XVI June 30, 2026 December 31, 2025
Current liabilities
Short-term borrowings 2,750,379 400,177
Accounts payable 13,544 23,967
Contract liabilities 1,125 95
Employee compensation payable 200,379 224,501
Taxes and levies payable 334 28,093
Other payables 22,298,305 26,164,087
Non-current liabilities due within one 9,159,331 7,667,893
year current liabilities
Other 9,934 8,099
Total current liabilities 34,433,331 34,516,912
Non-current liabilities
Long-term borrowings 15,315,442 16,046,784
Bonds payable 9,981,860 7,981,874
Lease liabilities 4,684 9,250
Long-term employee compensation 18,259 18,570
payable income
Deferred 14,921 16,382
Total non-current liabilities 25,335,166 24,072,860
Total liabilities 59,768,497 58,589,772
Share capital 20,800,862 20,800,862
Other equity instruments 997,630 -
Capital reserves 22,028,529 22,142,686
Less: Treasury share 1,506,488 1,503,652
Other comprehensive income (75,588) (103,971)
Surplus reserves 3,894,751 3,894,751
Retained earnings 18,048,877 17,386,344
Total shareholders’ equity 64,188,573 62,617,020
Total liabilities and shareholders' equity 123,957,070 121,206,792
Person-in- Person-in-
charge charge of
Legal of financial the financial
representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Income Statement of the Company
(RMB’000)
January - June January - June
Note XVI
I. Operating revenue 5 211,187 186,466
Less: Operating cost 5 80,518 92,112
Taxes and levies 4,556 8,101
Sales expenses 27,992 13,786
Administrative expenses 259,378 188,505
R&D expenses 66,897 47,687
Financial expenses 398,659 576,905
Including: Interest expenses 551,827 768,238
Interest income 150,441 171,300
Add: Other income 5,431 1,070
Return on investment 6 3,085,173 1,274,402
Including: Return on investment in joint
ventures and associates
Gain on changes in fair value 178,088 195,528
Credit impairment loss 1 (5,378)
Asset disposal income (32) 22
II. Operating profit 2,641,848 725,014
Add: Non-operating income 61 21
Less: Non-operating expenses 107,299 8,611
III. Gross profit 2,534,610 716,424
Less: Income tax expenses - -
IV. Net profits 2,534,610 716,424
V. Other comprehensive income 28,384 (47,847)
VI. Total comprehensive income 2,562,994 668,577
Person-in- Person-in-
charge charge of
Legal of financial the financial
representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Cash Flow Statement of the Company
(RMB’000)
January - June January - June
Note XVI
I. Net cash generated from operating activities:
Proceeds from the sale of commodities and
rendering of services
Tax and levy rebates 966 -
Other cash received relating to operating activities 536,021 13,748,998
Sub-total of cash inflows in operating activities 857,656 14,059,120
Cash paid for commodities and services (200,637) (32,950)
Cash paid to and for employees (161,311) (89,531)
Taxes and levies paid (13,859) (17,353)
Other cash paid relating to operating activities (1,445,398) (1,287,859)
Sub-total of cash outflows from operating
(1,821,205) (1,427,693)
activities
Net cash generated from operating activities (963,549) 12,631,427
II. Cash flow generated from investing activities:
Proceeds from disinvestments 31,361,679 24,786,151
Proceeds from return on investments 1,827,296 875,376
Net proceeds from disposal of fixed assets,
intangible assets, and other long-term assets
Other cash received relating to investing activities - 2,894,923
Sub-total of cash inflows from investment
activities
Payments for the acquisition and construction of
fixed assets, intangible assets and other long-term (82,334) (21,658)
assets
Payments for investments (36,360,618) (38,103,002)
Cash used in other investing activities - (103,085)
Subtotal of cash outflows from investing activities (36,442,952) (38,227,745)
Net cash generated from investing activities (3,253,497) (9,671,295)
Person-in-charge Person-in-charge
Legal of financial of the financial
representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Cash Flow Statement of the Company (Continued)
(RMB’000)
January - June January - June
Note XVI
III. Cash flow generated from financing activities:
Capital contributions received 997,630 -
Borrowings raised 13,757,077 10,806,010
Cash received from bond issue 7,000,000 3,240,000
Other cash received relating to financing
activities
Sub-total of cash inflows from financing
activities
Cash paid for debt repayment (15,552,820) (12,707,110)
Cash paid for distribution of dividends and
(2,339,600) (589,567)
profits or repayment of interests
Other cash paid relating to financing
(408,074) (1,252,578)
activities
Subtotal of cash outflows from financing
(18,300,494) (14,549,255)
activities
Net cash generated from financing activities 3,615,342 (416,132)
IV. Effect of exchange rate changes on cash and
(1,758) (582)
cash equivalents
V. Net increase in cash and cash equivalents (603,465) 2,543,418
Add: Beginning balance of cash and cash
equivalents
VI. Ending balance of cash and cash equivalents 3,750,119 4,051,486
Person-in- Person-in-
charge charge of
Legal of financial the financial
representative: Li Dongsheng affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Statement of Changes in Shareholder Equity of the Company
(RMB’000)
January - June 2026
Other Total
Other equity comprehensi Surplus Retained shareholders’
Share capital instruments Capital reserves Treasury share ve income reserves earnings equity
I. Balance at the end of the prior year 20,800,862 - 22,142,686 (1,503,652) (103,971) 3,894,751 17,386,344 62,617,020
Add: Change in accounting policies - - - - - - - -
II. Balance at the beginning of the current -
period
III. Movement of the current period - 997,630 (114,157) (2,836) 28,383 - 662,533 1,571,553
(I) Comprehensive income - - - - 28,383 - 2,534,610 2,562,993
(II) Capital contributed and reduced by - 997,630 - - -
(106,855) (2,836) 887,939
shareholders
Capital contributed by shareholders - - - (400,044) - - - (400,044)
Share-based payments included in - - - - -
(106,855) 397,208 290,353
owners' equity
Amount of bond issuance included in - 997,630 - - - - -
owners' equity
(III) Profit distribution - - - - - - (1,872,077) (1,872,077)
Appropriation to shareholders - - - - - - (1,872,077) (1,872,077)
(IV) Internal transfer of owner's equity - - - - - - - -
(V) Others - - (7,302) - - - - (7,302)
IV. Balance as at the end of the current 997,630
period 20,800,862 22,028,529 (1,506,488) (75,588) 3,894,751 18,048,877 64,188,573
Person-in-charge of
Person-in-charge of the financial
Legal representative: Li Dongsheng financial affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Statement of Changes in Shareholder Equity of the Company (Continued)
(RMB’000)
January - June 2025
Other Total
Other equity comprehensi Surplus Retained shareholders’
Share capital instruments Capital reserves Treasury share ve income reserves earnings equity
I. Balance at the end of the prior year 18,779,081 - 16,332,255 (919,322) 167,402 3,772,322 17,272,749 55,404,487
Add: Change in accounting policies - - - - - - - -
II. Balance at the beginning of the current
period
III. Movement of the current period - - (38,681) 215,670 (47,847) - (222,530) (93,388)
(I) Comprehensive income - - - - (47,847) - 716,424 668,577
(II) Capital contributed and reduced by - - - - -
(40,024) 215,670 175,646
shareholders
Capital contributed by shareholders - - - - - - - -
Share-based payments included in owners' - - - - -
(40,024) 215,670 175,646
equity
Amount of bond issuance included in owners' - - - - - - - -
equity
(III) Profit distribution - - - - - - (938,954) (938,954)
Appropriation to shareholders - - - - - - (938,954) (938,954)
(IV) Internal transfer of owner's equity - - - - - - - -
(V) Others - - 1,343 - - - - 1,343
IV. Balance as at the end of the current period 18,779,081 - 16,293,574 (703,652) 119,555 3,772,322 17,050,219 55,311,099
Person-in-charge of
Person-in-charge of the financial
Legal representative: Li Dongsheng financial affairs: Li Jian department: Jing Chunmei
The attached notes to the financial statements form an integral part of the financial statements.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
I Corporate Information
TCL Technology Group Corporation (hereinafter referred to as "the Company") is a limited
liability company established in Huizhou on July 17, 1997. It was changed to a limited liability
company as a whole in 2002 and was listed on the Shenzhen Stock Exchange in January 2004.
Through years of new share placements, private placements, capital conversion, share option
exercises, and share repurchases and cancellations, the registered capital and share capital of the
Company were RMB 20,800,862,447 as of June 30, 2026.
The main business structure of the Company and its subsidiaries consists of display, new
energy photovoltaics and other silicon materials, industrial finance, and other businesses. The
relevant information of the Company's subsidiaries is detailed in Note VIII.
The registered address of the Company is: TCL TECH. Building, 17 Huifeng Third Road,
Zhongkai Hi-Tech Development District, Huizhou City, Guangdong Province.
Approval and issue: These financial statements were authorized for issue by the Company's
Board of Directors on August 27, 2026.
II Basis for the Preparation of Financial Statements
The Company prepares its financial statements on a going concern basis. The recognition and
measurement of items are based on actual transactions and events, in accordance with the
Accounting Standards for Business Enterprises and their application guidelines and
interpretations. In addition, the Company discloses relevant financial information in
compliance with the Compilation Rules for Information Disclosure by Companies Offering
Securities to the Public No. 15 — General Provisions on Financial Reports (2023 Revision)
issued by the China Securities Regulatory Commission (CSRC).
The Company has assessed its ability to continue as a going concern for the 12 months from
the end of the Reporting Period and has not identified any matters that would affect its ability
to continue as a going concern. Therefore, it is reasonable for the Company to prepare the
financial statements on a going concern basis.
III Significant accounting policies and accounting estimates
The following significant accounting policies and accounting estimates of the Company are
formulated in accordance with the Accounting Standards for Business Enterprises. The business
not mentioned shall be implemented in accordance with the relevant accounting policies in the
Accounting Standards for Business Enterprises.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
The financial statements prepared by the Company comply with the Accounting Standards for
Business Enterprises, and present truly and completely the financial position, operating results,
changes in owners' equity, and cash flows of the Company for the Reporting Period.
The Company's accounting year is from January 1 to December 31 of the Gregorian calendar.
The Company's normal operating cycle is one year.
The functional currency of the Company is Renminbi. The functional currency of its overseas
subsidiaries is the currency of the primary economic environment in which they operate. Unless
otherwise stated, the amounts in these financial statements are presented in thousands of
Renminbi (RMB'000).
Item Importance criteria
The recovery, reversal, and actual write-off The amount of an individual item is greater than
of bad debt provisions for important RMB 50 million.
receivables with bad-debt allowance is
accrued on an individual basis
Important construction in progress The ending carrying amount of an individual item
exceeds RMB 10 billion.
Important non-wholly-owned subsidiaries The total assets of non-wholly-owned subsidiaries
exceeds 10% of that of the Group, or the total
revenue of non-wholly-owned subsidiaries
exceeds 10% of that of the Group.
Important joint ventures or associates The carrying amount of long-term equity
investments in a single investee exceeds 5% of the
total assets of the Group.
Important prepayments, contract liabilities, The amount of an individual item exceeds 0.5% of
accounts payable, and other payables are the total assets of the Group.
aged for more than 1 year
Important capitalized research and The cumulative expenditure of an individual item
development items exceeds 0.5% of the total assets of the Group.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
common control
(1) Business combinations involving enterprises under common control
Assets and liabilities acquired by the Company in a business combination are measured at their
carrying amounts in the consolidated financial statements of the ultimate controlling party at the
combination date. If the accounting policies and accounting periods adopted by the combinee
differ from those of the Company prior to the business combination, adjustments are made to the
carrying amounts of the combinee's assets and liabilities based on the principle of materiality to
align with the Company's accounting policies and accounting periods. In a business combination,
if there is a difference between the carrying amount of the net assets acquired and the carrying
amount of the consideration paid, the capital reserves (specifically capital premium or share
premium) are adjusted first. If the balance of the capital reserves are insufficient to absorb the
difference, any excess is adjusted against surplus reserve and undistributed profits sequentially.
For the accounting treatment of business combinations under common control achieved through
step-by-step transactions, please refer to Note III. 7(5).
(2) Business combination not under common control
The identifiable assets and liabilities of the acquiree acquired in a business combination are
measured at fair value at the acquisition date. If the accounting policies or accounting periods
adopted by the acquiree differ from those of the Company, adjustments are made to the carrying
amounts of the acquiree's assets and liabilities based on the principle of materiality to align with
the Company's accounting policies and accounting periods. At the acquisition date, any excess of
the cost of the business combination over the net fair value of the acquiree's identifiable assets
and liabilities acquired in the combination is recognized as goodwill. If the cost of the
combination is less than the net fair value of the acquiree's identifiable assets and liabilities
acquired, a reassessment is first conducted on the cost of the combination and the fair values of
the acquiree's identifiable assets and liabilities acquired. If, after the reassessment, the cost of the
combination remains less than the fair value of the acquiree's identifiable assets and liabilities
acquired, the difference is recognized immediately in profit or loss for the current period.
For the accounting treatment of business combinations not under common control achieved
through step-by-step transactions, please refer to Note III. 7(5).
(3) Treatment of Transaction Costs in Business Combinations
Intermediary fees for audits, legal services, appraisal and consulting services, and other related
administrative expenses incurred for the purpose of a business combination are recognized in
profit or loss in the period in which they are incurred. Transaction costs for the issue of equity or
debt securities as combination consideration are included in the initial recognition amount of the
equity or debt securities.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(1) Criteria for determining control
Control means that the Company has the power over the investee, enjoys variable returns through
participation in the relevant activities of the investee, and has the ability to use its power over the
investee to influence the amount of its returns. The definition of control comprises three essential
elements: (1) the investor has the power over the investee; (2) the investor has rights to variable
returns from its involvement with the investee; and (3) the investor has the ability to use its power
over the investee to influence the amount of the investor's returns. When the three elements described
above are met with respect to the Company's investment in an investee, the investee is considered to
be controlled by the Company.
The scope of consolidation is determined on the basis of control. It includes not only subsidiaries
determined by voting rights (or similar rights) alone or in combination with other arrangements, but
also structured entities established based on one or more contractual arrangements.
A subsidiary is an entity (including an enterprise, a separable portion of an investee, and a structured
entity controlled by the Company) that is controlled by the Company. A structured entity is an entity
that is designed so that voting rights or similar rights are not the determining factor in deciding who
controls the entity (note: sometimes referred to as a special purpose entity).
(2) Methods for preparing consolidated financial statements
The Company prepares the consolidated financial statements based on the financial statements of
itself and its subsidiaries and other relevant information.
The Company prepares the consolidated financial statements in a manner that the whole Group will
be treated as an accounting entity to reflect the financial position, operating results, and cash flow of
the Group as a whole under unified accounting policies and accounting periods, in accordance with
the recognition, measurement, and presentation requirements of relevant accounting standards for
business enterprises.
① Combine the assets, liabilities, equity, income, expenses, and cash flows of the parent company
with those of its subsidiaries.
② Eliminate the carrying amount of the parent company's long-term equity investments in
subsidiaries against the parent company's portion of equity of each subsidiary.
③ Eliminate the effects of intragroup transactions between the parent company and its subsidiaries,
as well as among subsidiaries. If an intragroup transaction indicates an impairment loss on the related
assets, such loss is recognized in full.
④ Adjust special transactions from the perspective of the Group as a whole.
(3) Treatment of Changes in Subsidiaries During the Reporting Period
① Addition of Subsidiaries or Businesses
A. Subsidiaries or businesses acquired through business combinations involving enterprises under
common control
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(3) Treatment of Changes in Subsidiaries During the Reporting Period (Continued)
(a) In the preparation of the consolidated balance sheet, the opening balances and the relevant
items in the comparative financial statements are adjusted, as if the reporting entity after the
combination had existed since the time point when the ultimate controlling party obtained
control.
(b) In the preparation of the consolidated income statement, the income, expenses, and profits of
the subsidiary or business from the beginning of the period in which the combination occurred to
the end of the reporting period are included in the consolidated income statement. The related
items of the comparative financial statements are adjusted, as if the reporting entity after the
combination had been in existence since the date when the ultimate controlling party obtained
control.
(c) In the preparation of the consolidated cash flow statement, cash flows of the subsidiary or
business from the beginning of the period of combination to the end of the Reporting Period are
included in the consolidated cash flow statement, and the relevant items of the comparative
statements are adjusted, as if the reporting entity after the combination had been in existence
since the date when the ultimate controlling party obtained control.
B. Subsidiaries or business acquired through business combinations not under common control
(a) In the preparation of the consolidated balance sheet, no adjustment is made to the opening
balances of the consolidated balance sheet.
(b) In the preparation of the consolidated income statement, the income, expenses, and profits of
the subsidiary or business from the acquisition date to the end of the Reporting Period are
included in the consolidated income statement.
(c) In the preparation of the consolidated cash flow statement, cash flows of the subsidiary from
the acquisition date to the end of the Reporting Period are included.
② Disposal of subsidiaries or business
A. In the preparation of the consolidated balance sheet, no adjustment is made to the opening
balances of the consolidated balance sheet.
B. In the preparation of the consolidated income statement, the income, expenses, and profits of
the subsidiary or business from the beginning of the period to the date of disposal are included in
the consolidated income statement.
C. In the preparation of the consolidated cash flow statement, cash flows of the subsidiary or
business from the beginning of the period to the date of disposal are included in the consolidated
cash flow statement.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(4) Special Considerations in Consolidation Elimination
① If a subsidiary holds long-term equity investments in the Company, such investments are
treated as treasury shares of the Company and listed as a deduction from equity under the line
item "Less: Treasury shares" in the consolidated balance sheet.
For long-term equity investments held among subsidiaries, the investments are eliminated
against the corresponding share of the subsidiary's equity in the same manner as the elimination
of the Company's investments in its subsidiaries.
② The items "Specific reserves" and "General risk reserves" are neither paid-in capital (or share
capital) and capital reserves, nor to retained earnings and undistributed profits. After the
elimination of long-term equity investments against the equity of subsidiaries, these reserves are
reinstated to the extent of the share attributable to the owners of the parent company.
③ If the elimination of unrealized profits or losses from intragroup sales results in temporary
differences between the carrying amounts of assets and liabilities in the consolidated balance
sheet and their tax bases in the respective tax entities, deferred income tax assets or deferred tax
liabilities are recognized in the consolidated balance sheet with a corresponding adjustment
made to income tax expense in the consolidated income statement, except for deferred tax arising
from transactions or events recognized directly in equity or from business combinations.
④ Unrealized intragroup gains or losses arising from the sale of assets by the Company to its
subsidiaries are eliminated in full against "Net profit attributable to owners of the parent
company". Unrealized intragroup transaction gains or losses arising from the sale of assets by a
subsidiary to the Company are allocated and eliminated between "Net profit attributable to
owners of the parent company" and "Net profit attributable to non-controlling interests" in
proportion to the Company's interest in such subsidiary. Unrealized intragroup transaction gains
or losses arising from the sale of assets between subsidiaries are allocated and eliminated
between "Net profit attributable to owners of the parent company" and "Net profit attributable to
non-controlling interests" in proportion to the Company's interest in the selling subsidiary.
⑤ If the current losses attributable to the non-controlling shareholders of a subsidiary exceed
their interest in the equity of the subsidiary, the excess shall still be charged to the non-
controlling interests.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(5) Accounting Treatment of Special Transactions
① Acquisition of Non-controlling Interests
When acquiring equity interests in a subsidiary from non-controlling shareholders, the Company
measures the cost of the newly acquired long-term equity investment in its separate financial
statements at the fair value of the consideration paid. In the consolidated financial statements, the
difference between the cost of the long-term equity investment acquired through the purchase of
non-controlling interests andthe share of the subsidiary's net assets attributable to the additional
interest (calculated continuously from the date of acquisition or combination) shall be adjusted
against capital reserves (share premium). If the capital reserves are insufficient to absorb the
difference, the excess shall be charged against surplus reserve and retained earnings in sequence.
② Obtaining Control of a Subsidiary through Step-by-Step Transactions
A. Business Combinations under Common Control Achieved Through Step-by-Step
Transactions
On the date of combination, in the separate financial statements, the Company shall determine
the initial investment cost of the long-term equity investment based on its post-combination
share of the carrying amount of the subsidiary’s net assets as reflected in the ultimate controlling
party’s consolidated financial statements. The difference between this initial investment cost and
the sum of (i) the carrying amount of the long-term equity investment held prior to the
combination and (ii) the carrying amount of the new consideration paid for additional shares on
the date of combination shall be adjusted against capital reserves (share premium). If the capital
reserves are insufficient to absorb the difference, the excess shall be charged against surplus
reserve and retained earnings in sequence.
In the consolidated financial statements, the assets and liabilities of the acquiree acquired in the
combination are measured at their carrying amounts as reflected in the ultimate controlling
party’s consolidated financial statements at the combination date, except for adjustments arising
from differences in accounting policies or accounting periods. The difference between the
carrying amount of the net assets acquired in the combination and the sum of the carrying
amount of the investment held prior to the combination and the carrying amount of the new
consideration paid on the combination date is adjusted against capital reserves (share premium).
If the capital reserves are insufficient to absorb the adjustment, the excess is adjusted against
retained earnings.
For the equity investment held before obtaining control over the acquiree, relevant gains and
losses, other comprehensive income, and other changes in equity recognized between the later of
the date of obtaining the original equity or the date when the acquiring party and the acquired
party are under common control and the date of combination, shall be deducted from the
beginning retained earnings or the profits and losses of the comparative statement period.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(5) Accounting Treatment of Special Transactions (Continued)
B. Business Combinations not under Common Control Achieved Through Step-by-Step
Transactions
On the acquisition date, in the separate financial statements, the initial investment cost of the
long-term equity investment is the sum of the carrying amount of the previously held long-
term equity investment and the cost of the new investment made on the acquisition date.
In the consolidated financial statements, the equity interest in the acquiree held prior to the
acquisition date shall be remeasured at its fair value on the acquisition date. If the previously
held equity interest is designated as a financial asset at fair value through other
comprehensive income (FVTOCI), the difference between its fair value and carrying amount
is recognized in retained earnings, and the cumulative fair value changes previously
recognized in other comprehensive income relating to that equity interest are transferred to
retained earnings. If the previously held equity interest is a financial asset at fair value
through profit or loss (FVTPL) or a long-term equity investment accounted for using the
equity method, the difference between its fair value and carrying amount is recognized in
investment income for the current period. If the previously held equity interest involves other
comprehensive income and other changes in owners' equity (other than net profit or loss,
other comprehensive income, and profit distribution) under the equity method, the related
other comprehensive income is accounted for on the acquisition date on the same basis as
would be required if the investee had directly disposed of the related assets or liabilities, and
the related other changes in owners' equity are transferred to investment income for the
period in which the acquisition date falls.
③ The Company’s Disposal of Long-term Equity Investment in a Subsidiary Without Loss
of Control
The difference between the disposal proceeds from the partial disposal of a long-term equity
investment in a subsidiary without losing control and the share, corresponding to the long-
term equity investment disposed of, in the net assets of the subsidiary calculated continuously
from the acquisition date or combination date shall be adjusted against capital reserves (share
premium) in the consolidated financial statements. If the capital reserves are insufficient to
absorb the adjustment, the remaining amount is adjusted against retained earnings.
④ The Company’s Disposal of Long-term Equity Investment in a Subsidiary with Loss of
Control
A. A single transaction
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
In the preparation of consolidated financial statements, when the Company loses control over
the investee due to the disposal of part of the equity investment or other reasons, the excess is
re-measured at its fair value as of the date of loss of control. The difference between the sum
of the consideration from the disposal and the fair value of the remaining equity, and the sum
of the share of the original subsidiary’s net assets calculated on a continuous basis based on
the original shareholding ratio since the date of acquisition or combination and goodwill, is
recognized as investment income in the current period when control is lost.
Other comprehensive income related to the equity investment in the former subsidiary shall
be accounted for on the same basis as would be required if the relevant assets or liabilities
had been disposed of directly at the time control is lost. Other changes in owner's equity
under the equity method related to the former subsidiary are transferred to profit or loss for
the current period upon the loss of control.
III Significant accounting policies and accounting estimates (Continued)
(5) Accounting Treatment of Special Transactions (Continued)
B. Disposal Through Step-by-Step Transactions
In the consolidated financial statements, it should be first determined whether the step-by-step
transactions constitute a "package transaction".
If the step-by-step transactions do not constitute a "package transaction", in the separate
financial statements, for each transaction prior to the loss of control over the subsidiary, the
carrying amount of the long-term equity investment corresponding to the equity interest
disposed of is derecognized, and the difference between the consideration received and the
carrying amount of the long-term equity investment disposed of is recognized in investment
income for the current period. In the consolidated financial statements, such transactions are
accounted for in accordance with the relevant provisions regarding "The Company’s Disposal
of Long-term Equity Investment in a Subsidiary Without Loss of Control".
If the step-by-step transactions constitute a package transaction, the transactions are accounted
for as a single transaction of disposing of a subsidiary resulting in a loss of control. In the
separate financial statements, the difference between the consideration received and the carrying
amount of the long-term equity investment corresponding to the disposed equity interest for
each transaction prior to the loss of control is initially recognized in other comprehensive
income, and then transferred to profit or loss for the period in which control is lost. In the
consolidated financial statements, for each transaction prior to the loss of control, the difference
between the disposal consideration and the parent's share of the subsidiary's net assets
corresponding to the disposed investment is recognized in other comprehensive income, and
then transferred to profit or loss for the period in which control is lost.
When the terms, conditions, and economic influence of transactions conform to one or more of
the following, multiple transactions are usually treated as a package transaction for accounting
purposes:
(a) These transactions are made simultaneously or with consideration of influence on each
other.
(b) These transactions can only achieve a complete business outcome when they are accounted
for collectively.
(c) The occurrence of a transaction depends on the occurrence of at least one of the other
transactions.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
(d) A transaction is considered uneconomical individually, but is economical when considered
collectively with other transactions.
⑤ Dilution of Parent Company’s Equity Interest due to Capital Increase by Non-controlling
Shareholders of a Subsidiary
Other shareholders (non-controlling shareholders) of a subsidiary make capital injections into
the subsidiary, thereby diluting the parent company's equity interest in the subsidiary. In the
consolidated financial statements, the difference between parent company's share of the
subsidiary's net assets calculated based on its equity interest before the capital injection and the
parent company's share of the subsidiary's net assets calculated based on its equity interest after
the capital injection, is adjusted against capital reserves (capital premium or share premium). If
the capital reserves are insufficient to absorb the adjustment, the excess is adjusted against
retained earnings.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
A joint arrangement is an arrangement of which two or more parties have joint control. The
Company classifies its joint arrangements into joint operations and joint ventures.
(1) Joint operation
A joint operation is a joint arrangement whereby the Company has rights to the assets, and
obligations for the liabilities, relating to the arrangement.
The Company recognizes the following items in relation to the interest in a joint operation, and
carry out accounting treatment in accordance with the provisions of relevant accounting
standards for business enterprises:
① its assets, including its share of any assets held jointly;
② its liabilities, including its share of any liabilities incurred jointly;
③ its revenue from the sale of its share of the output arising from the joint operations;
④ its share of the revenue from the sale of the output by the joint operations; and
⑤ its expenses, including its share of any expenses incurred jointly.
(2) Joint venture
A joint venture is a joint arrangement whereby the Company has rights only to the net assets of
the arrangement.
The Company accounts for its investments in joint ventures in accordance with the provisions
regarding the equity method for long-term equity investments.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly
liquid investments that are readily convertible to known amounts of cash and which are subject
to an insignificant risk of changes in value. They generally have a maturity of three months or
less from the date of acquisition.
(1) Determination of exchange rates for foreign currency transactions
Foreign currency transactions are initially translated into the functional currency at the spot
exchange rate on the date of the transaction, or an exchange rate that approximates the spot
exchange rate and is determined using a systematic and reasonable method (hereinafter referred
to as the "approximate spot exchange rate").
(2) Translation of foreign currency monetary items at the balance sheet date
At the balance sheet date, foreign currency monetary items are translated using the spot
exchange rate at that date. Exchange differences arising from the difference between the spot
exchange rate at the balance sheet date and the spot exchange rate at the initial recognition or the
previous balance sheet date are recognized in profit or loss for the current period. Foreign
currency non-monetary items measured at historical cost are translated at the spot exchange rate
on the date of the transaction. For inventories measured at the lower of cost and net realizable
value, where the inventories are purchased in foreign currency and their net realizable value at
the balance sheet date is denominated in foreign currency, the net realizable value is translated
into the functional currency using the spot exchange rate on the balance sheet date and then
compared with the cost of inventories denominated in the functional currency, to determine the
carrying amount of such inventories. Foreign currency non-monetary items measured at fair
value are translated at the spot exchange rate at the date when the fair value was determined. For
financial assets measured at fair value through profit or loss, the resulting exchange differences
are recognized in profit or loss. For non-trading equity instrument investments designated as
measured at fair value through other comprehensive income, the resulting exchange differences
are recognized in other comprehensive income.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(3) Translation of foreign currency financial statements
Prior to translating the financial statements of a foreign operation, the accounting period and accounting
policies of the foreign operation are adjusted to align with those of the Company. Then, financial statements
in the corresponding currency (a currency other than the functional currency) are then prepared based on the
adjusted accounting policies and accounting period. Thereafter, the financial statements of the foreign
operation are then translated using the following methods:
① 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.
② Income and expense items in the income statement are translated at the spot exchange rates at the dates of
the transactions or an approximate spot exchange rate.
③ Foreign currency cash flows and the cash flows of foreign subsidiaries are translated at the spot exchange
rates at the dates of the cash flows or at an exchange rate that approximates the spot exchange rate. The effect
of exchange rate changes on cash is presented separately in the statement of cash flows as a reconciling item.
④ In the preparation of consolidated financial statements, the resulting foreign currency translation
differences are presented under the item "Other comprehensive income" within the owners' equity section of
the consolidated balance sheet.
Upon the disposal of a foreign operation and loss of control, the foreign currency translation differences
relating to that foreign operation presented within the owners' equity section of the balance sheet are
transferred to profit or loss for the current period, either in full or in proportion to the disposal of that foreign
operation.
Financial instruments are contracts that form a financial asset of one party and a financial liability or
equity instrument of another party.
(1) Recognition and derecognition of financial instruments
When the Company becomes a party to a financial instrument, it recognizes the related financial asset or
liability.
Financial assets are derecognized if any of the following conditions is met:
① The contractual right to receive cash flow from the financial asset is terminated;
② The financial asset has been transferred and satisfies the criteria for derecognition of financial assets
described below.
If the current obligation of a financial liability (or part thereof) has been discharged, such financial liability
(or part thereof) is derecognized. If the Company (as the borrower) enters into an agreement with a lender
to replace an original financial liability with a new one, and the terms of the new liability are substantially
different from those of the original, the original liability shall be derecognized and a new liability
recognized. If the Company makes substantial modifications to the contractual terms of an existing
financial liability (or a part thereof), the existing financial liability is derecognized and a new financial
liability is recognized in accordance with the modified terms.
Regular way purchases and sales of financial assets are recognized and derecognized on the trade date. A
regular way purchase or sale of financial assets is a purchase or sale of financial assets that requires
delivery of the assets within the timeframe established by regulations or market conventions in accordance
with the terms of the contract. The trade date is the date on which the Company commits to purchase or
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
sell the financial asset.
III Significant accounting policies and accounting estimates (Continued)
(2) Classification and measurement of financial assets
Upon initial recognition, based on the Company's business model for managing financial assets and
the contractual cash flow characteristics of the financial assets, financial assets are classified into
three categories: financial assets measured at amortized cost, financial assets measured at fair value
through profit or loss, and financial assets measured at fair value through other comprehensive
income. Financial assets are not reclassified subsequent to their initial recognition unless the
Company changes its business model for managing financial assets, in which case all affected
financial assets are reclassified on the first day of the first reporting period following the change in
the business model.
Financial assets are measured at fair value upon initial recognition. For financial assets measured at
fair value through profit or loss, transaction expenses are directly recognized in the current profit and
loss. For other financial assets, transaction expenses are included in the initial recognition amount.
For notes receivable and accounts receivable arising from the sale of goods or provision of services
that do not contain or involve a significant financing component, the Company initially measures
them at the transaction price as defined by the revenue standard.
Subsequent measurement of financial assets depends on their classification:
A financial asset is classified as measured at amortized cost if it meets both of the following
conditions: the Company's business model for managing the financial asset is to collect contractual
cash flows; and the contractual terms of the financial asset give rise on specified dates to the cash
flows are solely payments of principal and interest on the principal amount outstanding. Such
financial assets are subsequently measured at amortized cost using the effective interest method.
Gains or losses arising from derecognition, amortization using the effective interest method, or
impairment are all recognized in profit or loss for the current period.
A financial asset is classified as a financial asset measured at fair value through other comprehensive
income if it meets both of the following conditions: The business model of the Company for
managing the financial asset is to collect contractual cash flows and to sell the financial asset; and the
contractual terms of the financial asset require that, on specified dates, the cash flows are solely
payments of principal and interest on the principal amount outstanding. Such financial assets are
subsequently measured at fair value. Except for impairment losses or gains and exchange differences
recognized in profit or loss for the current period, changes in the fair value of such financial assets are
recognized in other comprehensive income. Upon derecognition of the financial asset, the cumulative
gain or loss previously recognized in other comprehensive income is reclassified to profit or loss for
the current period. However, interest income related to such financial assets calculated using the
effective interest method is recognized in profit or loss for the current period.
The Company irrevocably designates certain non-trading equity instrument investments as financial
assets measured at fair value through other comprehensive income, recognizes only the related
dividend income in profit or loss for the current period, and recognizes changes in fair value in other
comprehensive income. Upon derecognition of the financial asset, its accumulated gains or losses are
reclassified to retained earnings.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(2) Classification and measurement of financial assets (Continued)
All financial assets other than those measured at amortized cost or at fair value through other
comprehensive income are classified as measured at fair value through profit or loss. For such
financial assets, the Company measures them at fair value subsequently, and recognizes all
changes in fair value in profit or loss for the current period.
(3) Classification and measurement of financial liabilities
The Company classifies financial liabilities into: financial liabilities measured at fair value
through profit or loss, loan commitments at below-market interest rates and financial guarantee
contract liabilities, and financial liabilities measured at amortized cost.
Subsequent measurement of financial liabilities depends on their classification:
① Financial liabilities measured at fair value through profit or loss
Such financial liabilities include held-for-trading financial liabilities (including derivatives
falling under financial liabilities) and financial liabilities designated as financial liabilities
measured at fair value through profit or loss. After initial recognition, such financial liabilities
are subsequently measured at fair value. Unless they are part of a hedging relationship, gains or
losses arising therefrom (including interest expenses) are recognized in profit or loss for the
current period. However, for financial liabilities designated by the Company as measured at fair
value through profit or loss, the amount of changes in the fair value of the financial liability that
is attributable to changes in the Company's own credit risk of that liability is recognized in other
comprehensive income. When such financial liabilities are derecognized, the cumulative gains or
losses previously recognized in other comprehensive income is transferred from other
comprehensive income to retained earnings.
② Loan commitments and financial guarantee contract liabilities
A loan commitment is a commitment made by the Company to provide a loan to a customer
under specified terms and conditions during the commitment period. Provision for impairment
losses on loan commitments is recognized based on the expected credit loss model.
Financial guarantee contracts refer to contracts that require the Company to pay a specific
amount to the contract holder who has suffered losses when a specific debtor fails to pay the debt
in accordance with the original or modified terms of the debt instrument. Financial guarantee
contracts are subsequently measured at the higher of: the amount of the loss allowance
determined in accordance with the impairment principles for financial instruments, and the
amount initially recognized less, when appropriate, the cumulative amount of income recognized
in accordance with the principles of revenue recognition.
③ Financial liabilities measured at amortized cost
After initial recognition, other financial liabilities are measured at amortized cost using the
effective interest method.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(3) Classification and measurement of financial liabilities (Continued)
Except in special circumstances, financial liabilities and equity instruments are distinguished
according to the following principles:
① If the Company does not have an unconditional right to avoid delivering cash or another
financial asset to settle a contractual obligation, the obligation meets the definition of a financial
liability. Some financial instruments may not explicitly contain terms and conditions imposing
an obligation to deliver cash or another financial asset, but may indirectly establish such an
obligation through other terms and conditions.
② If a financial instrument must or may be settled in the Company's own equity instruments,
consideration is given to whether the Company's own equity instruments used for settlement are
provided as a substitute for cash or another financial asset, or to provide the holder with a
residual interest in the assets of the issuer after deducting all liabilities. If it is the former, the
instrument is a financial liability of the issuer; if it is the latter, the instrument is an equity
instrument of the issuer. In certain cases, a financial instrument contract stipulates that the
Company must or may settle the financial instrument using its own equity instruments, and the
amount of the contractual right or obligation equals the number of own equity instruments to be
received or delivered multiplied by their fair value at settlement. In such cases, regardless of
whether the amount of such contractual right or obligation is fixed, or varies in whole or in part
based on changes in variables other than the market price of the Company's own equity
instruments (for example, interest rates, prices of certain commodities, or prices of financial
instruments), the contract is classified as a financial liability.
(4) Derivative financial instruments and embedded derivatives
Derivative financial instruments are initially measured at fair value on the date the derivative
contract is entered into, and are subsequently measured at fair value. Derivatives are carried as
financial assets when the fair value is positive and as financial liabilities when the fair value is
negative.
Any gains or losses arising from changes in the fair value of derivatives are recognized directly
in profit or loss for the current period, except for the effective portion of cash flow hedges, which
is recognized in other comprehensive income and later reclassified to profit or loss when the
hedged item affects profit or loss.
For hybrid instruments containing embedded derivatives, if the host contract is a financial asset,
the hybrid instrument as a whole is subject to the relevant provisions on the classification of
financial assets. If the host contract is not a financial asset and the hybrid instrument is not
accounted for at fair value through profit or loss, the embedded derivative shall be separated
from the hybrid instrument and accounted for as a separate derivative financial instrument,
provided that the embedded derivative is not closely related to the host contract in terms of
economic characteristics and risks, and a separate instrument with the same terms would meet
the definition of a derivative. If the fair value of the embedded derivative cannot be separately
measured at the acquisition date or at a subsequent balance sheet date, the entire hybrid
instrument is designated as a financial asset or financial liability at fair value through profit or
loss.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(5) Impairment of financial instruments
The Company recognizes loss allowances based on expected credit losses for financial assets
measured at amortized cost, debt investments measured at fair value through other
comprehensive income, contract assets, lease receivables, loan commitments, and financial
guarantee contracts, etc.
① Measurement of expected credit losses
Expected credit loss refers to the weighted average of the credit losses of financial instruments
weighted by the risk of default. Credit loss refers to the difference between all contractual cash
flows discounted at the original effective interest rate and receivable according to the contract
and all cash flows expected to be collected by the Company, i.e. the present value of all cash
shortfalls. Among them, credit-impaired purchased or originated financial assets of the Company
shall be discounted at the credit-adjusted effective interest rate of such financial assets.
Lifetime expected credit losses refer to the expected credit losses that result from all possible
default events over the expected life of a financial instrument.
represent the expected credit losses that result from default events on a financial instrument that
are possible within 12 months after the balance sheet date (or a shorter period if the expected life
of the financial instrument is less than 12 months).
At each balance sheet date, the Company measures the expected credit losses for financial
instruments in different stages separately. If the credit risk on a financial instrument has not
increased significantly since initial recognition, it is classified as Stage 1, and the Company
measures the loss allowance at an amount equal to 12-month expected credit losses; if the credit
risk has increased significantly since initial recognition the financial instrument is not credit-
impaired, it is classified as Stage 2, and the Company measures the loss allowance at the amount
equal to lifetime expected credit losses; if the financial instrument has become credit-impaired
since initial recognition, it is classified as Stage 3, and the Company measures the loss allowance
at the amount equal to lifetime expected credit losses.
For financial instruments that have low credit risk at the balance sheet date, the Company
assumes that the credit risk has not increased significantly since initial recognition, and measures
the loss allowance at an amount equal to 12-month expected credit losses.
For financial instruments in Stage 1 and Stage 2, as well as those with low credit risk, the
Company calculates interest income by applying the effective interest rate to their gross carrying
amount. For financial instruments in Stage 3, the Company calculates interest income by
applying the effective interest rate to their amortized cost (i.e., gross carrying amount less loss
allowance).
For notes receivable, accounts receivable, receivables financing, and contract assets, regardless
of whether they contain a significant financing component exists, the Company measures the
loss allowance at an amount equal to lifetime expected credit losses.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(5) Impairment of financial instruments (Continued)
A. Receivables/Contract assets
For notes receivable, accounts receivable, other receivables, receivables financing, contract assets, and
long-term receivables that have objective evidence of impairment or are otherwise subject to individual
assessment, the Company performs impairment testing on an individual basis, recognizes expected credit
losses, and recognizes an individual loss allowance. For notes receivable, accounts receivable, other
receivables, receivables financing, contract assets, and long-term receivables that do not have objective
evidence of impairment, or when expected credit loss information for a single financial asset cannot be
assessed without undue cost or effort, the Company classifies such receivables into several groups based
on credit risk characteristics and calculates expected credit losses on a collective basis.
B. Debt investments and other debt investments
For debt investments and other debt investments, the Company calculates expected credit losses based
on the nature of the investments, the various types of counterparties and risk exposures, and by using the
exposure at default and the 12-month or lifetime expected credit loss rate.
② Having low credit risk
The financial instrument will be deemed to have lower credit risk under the following circumstances: the
default risk of the financial instrument is lower; the borrower has a strong capacity to fulfill its
contractual cash flow obligations in a short time; furthermore, even if there are adverse changes in the
economic situation and operating environment for a long period of time, it may not necessarily reduce
the borrower’s ability to fulfill its contractual cash flow obligations.
③ Significant increase in credit risk
To assess whether the credit risk on a financial instrument has increased significantly since initial
recognition, the Company compares the probability of a default occurring over the expected life
determined at the balance sheet date with that determined at initial recognition, so as to determine the
relative change in the probability of a default occurring over the expected life of the financial instrument.
In determining whether credit risk has increased significantly since initial recognition, the Company
considers reasonable and supportable information that is available without undue cost or effort, including
forward-looking information. The information considered by the Company includes:
A. Whether internal price indicators reflecting changes in credit risk have changed significantly;
B. Whether adverse changes in business, financial, or economic conditions are expected to cause a
significant change in the debtor's ability to meet its repayment obligations;
C. Whether the debtor's operating results have actually or expectedly changed significantly; whether the
regulatory, economic, or technological environment in which the debtor operates has changed
significantly and adversely;
D. Whether the value of collateral pledged for the debt or the quality of third-party guarantees or credit
enhancements has changed significantly. Whether these changes are expected to reduce the debtor's
economic incentive to make repayments as contractually scheduled or affect the probability of default;
E. Whether there are significant changes in the economic incentives that are expected to reduce the
debtor's willingness to make repayments as contractually scheduled;
F. Expected changes to loan agreements, including whether anticipated covenant breaches may result in
the waiver or modification of contractual obligations, the granting of interest-free periods, interest rate
step-ups, requirements for additional collateral or guarantees, or other changes to the contractual
framework of the financial instrument;
G. Whether the debtor's expected performance and repayment behavior have changed significantly;
H. Whether contract payments are overdue for more than (including) 30 days.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(5) Impairment of financial instruments (Continued)
Based on the nature of the financial instruments, the Company assesses whether credit risk has
increased significantly on an individual financial instrument basis or on a collective basis. When
assessing on a collective basis, the Company may group financial instruments based on shared
credit risk characteristics, such as past due status and credit risk ratings.
Generally, if an instrument is more than 30 days past due, the Company determines that the credit
risk on the financial instrument has increased significantly. Unless the Company has reasonable and
supportable information that is available without undue cost or effort, demonstrating that the credit
risk has not increased significantly since initial recognition even though the contractual payments
are more than 30 days past due.
④ Financial assets with depreciation of credit
At the balance sheet date, the Company assesses whether financial assets measured at amortized
cost and debt investments measured at fair value through other comprehensive income are credit-
impaired. If one or more events have adverse effects on the expected future cash flow of a financial
asset, the financial asset will become a financial asset that has suffered credit impairment. The
following observable information can be regarded as evidence of credit impairment of financial
assets:
The issuer or debtor is experiencing significant financial difficulty; the debtor is in breach of
contract, such as default or delinquency in interest or principal payments; the creditor, for economic
or contractual reasons relating to the debtor's financial difficulty, grants the debtor a concession that
the creditor would not otherwise consider; the debtor is likely to become bankrupt or undergo other
financial reorganization; the active market for the financial asset disappears due to financial
difficulties of the issuer or debtor; a financial asset is purchased or originated at a deep discount that
reflects incurred credit losses.
⑤ Presentation of expected credit loss allowance
To reflect changes in the credit risk of a financial instrument since initial recognition, the Company
remeasures expected credit losses at each balance sheet date. The resulting increase or reversal of
the loss allowance is recognized in profit or loss for the current period as impairment loss or gain.
For financial assets measured at amortized cost, the loss allowance reduces against the carrying
amount of the financial asset presented in the balance sheet. For debt investments measured at fair
value through other comprehensive income, the Company recognizes the loss allowance in other
comprehensive income and does not reduce the carrying amount of the financial asset.
⑥ Write-off
If the Company cannot reasonably expect the contract cash flow of the financial asset to be fully or
partially recovered, the book balance of the gross amount will be written off directly. This write-off
constitutes the derecognition of relevant financial assets. This situation typically occurs when the
Company determines that the debtor has no assets or sources of income that could generate
sufficient cash flows to repay the amount to be written off.
If a financial asset that has been written off is subsequently recovered, the recovery is recognized in
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
profit or loss in the period of recovery as a reversal of impairment losses.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(6) Transfer of financial assets
A transfer of financial assets occurs in either of the following two situations:
A. Transferring the contractual right to receive the cash flows of the financial asset to another party;
B. Transferring the financial asset in its entirety or in part to another party, while retaining the
contractual right to receive the cash flows of the financial asset and assuming a contractual obligation
to pay the cash flows received to one or more recipients.
① Derecognition of the transferred financial asset
If the Company has transferred substantially all the risks and rewards of ownership of the financial
asset to the transferee, or if it has neither transferred nor retained substantially all the risks and rewards
of ownership of the financial asset but has not retained control of the financial asset, the financial asset
is derecognized.
In determining whether control of the transferred financial asset has been retained, the Company
considers the transferee's practical ability to sell the asset. If the transferee has the practical ability to
sell the transferred financial asset in its entirety to an unrelated third party and is able to exercise that
ability unilaterally and without needing to impose additional restrictions on the transfer, then the
Company has not retained control of the financial asset.
In assessing whether a transfer of financial assets satisfies the conditions for derecognition of financial
assets, the Company focuses on the economic substance of the transfer.
If the overall transfer of financial assets meets the conditions for derecognition, the difference between
the following two amounts shall be included in the current profits and losses:
A. The carrying amount of the transferred financial asset;
B. The sum of the consideration received for the transfer and the cumulative amount of changes in fair
value previously recognized directly in other comprehensive income that corresponds to the
derecognized portion (applicable where the transferred financial asset is one classified as measured at
fair value through other comprehensive income pursuant to Article 18 of the Accounting Standards for
Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments).
If a financial asset is partially transferred and the transferred part meets the conditions for
derecognition, the entire carrying amount of the financial asset shall be allocated between the
derecognized portion and the continuing recognized portion (in this case, the retained servicing asset
shall be regarded as part of the continuing recognized financial asset) based on their respective relative
fair values on the transfer date, and the difference between the following two amounts shall be
recognized in profit or loss for the current period:
A. The carrying amount of the derecognized portion on the derecognition date;
B. The sum of the consideration for the derecognized portion and the amount of the cumulative fair
value changes previously recognized in other comprehensive income that corresponds to the
derecognized portion (applicable where the transferred financial asset is one classified as measured at
fair value through other comprehensive income pursuant to Article 18 of the Accounting Standards for
Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments).
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(6) Transfer of financial assets (Continued)
② Continuing involvement in the transferred financial asset
If the Company has neither transferred nor retained substantially all the risks and rewards of
ownership of the financial asset and has not relinquished control over the financial asset, it shall
recognize the relevant financial asset to the extent of its continuing involvement in the transferred
financial asset, and shall correspondingly recognize the relevant liability.
The extent that it continues to be involved in the transferred financial asset refers to the extent to
which the Company bears the risks or rewards of changes in the value of the transferred financial
asset.
③ Continuing recognition of the transferred financial asset
If the Company retains substantially all the risks and rewards of ownership of the transferred
financial asset, it shall continue to recognize the transferred financial asset in its entirety and
recognize the consideration received as a financial liability.
The financial asset and the related financial liability recognized shall not be offset against each
other. In subsequent accounting periods, the Company shall continue to recognize any income (or
gain) arising on the transferred financial asset and any expense (or loss) incurred on the associated
financial liability.
(7) Offsetting of Financial Assets and Financial Liabilities
In the balance sheet, financial assets and financial liabilities shall be shown separately without
offsetting each other. However, if the following conditions are met at the same time, the net
amount after offsetting will be listed in the balance sheet:
The Company has the legal right, which is currently enforceable, to offset the confirmed amount;
The Company plans to settle on a net basis or realize the financial assets and settle the financial
liabilities at the same time.
For a transfer of a financial asset that does not meet the derecognition criteria, the transferor shall
not offset the transferred financial asset and the related liability.
(8) Determination of fair value of financial instruments
The fair value determination methods for financial assets and financial liabilities are set out in
Note III. 12.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date.
The Company measures the fair value of a relevant asset or liability using the price in the principal
market for the asset or liability, or in the absence of a principal market, the Company measures the
fair value of the relevant asset or liability using the price in the most advantageous market. The
Company uses assumptions that market participants would use when pricing the asset or liability,
assuming that market participants act in their economic best interest.
The principal market is the market with the greatest volume and level of activity for the relevant
asset or liability. The most advantageous market is the market that maximizes the amount that
would be received to sell the relevant asset or minimizes the amount that would be paid to transfer
the relevant liability, after taking into account transaction costs and transport costs.
For financial assets or financial liabilities with an active market, the Company uses quoted prices in
the active market to determine their fair value. For financial assets or financial liabilities without an
active market, the Company uses valuation techniques to determine their fair value.
A fair value measurement of a non-financial asset takes into account a market participant's ability to
generate economic benefits by using the asset in its highest and best use, or by selling it to another
market participant that would use the asset in its highest and best use.
① Valuation techniques
The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available. The valuation techniques used mainly include the market approach, the
income approach, and the cost approach. The Company measures fair value using methods
consistent with one or more of these valuation techniques. Where multiple valuation techniques are
used to measure fair value, the Company considers the reasonableness of each valuation result and
selects the amount that best represents fair value under current circumstances as the fair value.
In the application of valuation techniques, the Company prioritizes the use of relevant observable
inputs and uses unobservable inputs only when relevant observable inputs cannot be obtained or it is
impracticable to obtain them. Observable inputs are inputs that are developed using market data.
These inputs reflect the assumptions that market participants would use when pricing the relevant
asset or liability. Unobservable inputs are inputs for which market data are not available. These
inputs are developed using the best information available about the assumptions that market
participants would use when pricing the asset or liability.
② Fair value hierarchy
The Company categorizes the inputs used in fair value measurement into three levels, and prioritizes
the use of Level 1 inputs, then Level 2 inputs, and lastly Level 3 inputs. Level 1 inputs are
unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the
measurement date. Level 2 inputs are inputs other than Level 1 inputs that are observable for the
relevant asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the
relevant asset or liability.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(1) Classification of inventories
Inventories refer to, among other things, finished products or goods held by the Company for sale in its
daily activities, work in progress in production, materials, and supplies consumed in the production or
provision of labor services. Inventories mainly include but are not limited to raw materials, work in
progress, finished goods, and turnover materials.
(2) Valuation method for inventories shipped in transit
Inventories are shipped in transit by the weighted average method.
(3) Inventory system
The Company maintains a perpetual inventory system for its inventories and conducts physical
inventory counts at least once a year. Inventory overages and shortages are charged to profit or loss for
the current year.
(4) Recognition criteria and provisioning method for inventory impairment
At the balance sheet date, inventories are measured at the lower of cost and net realizable value. If the
cost of inventories exceeds their net realizable value, a provision for decline in value of inventories is
made and recognized in profit or loss for the current period.
In determining the net realizable value of inventories, the assessment is based on reliable evidence
available, taking into account factors such as the purpose for which the inventories are held and the
effects of events after the balance sheet date.
① For inventories such as finished goods, commodities, and materials for sale that are directly held for
sale, their net realizable value is determined, in the ordinary course of business, as the estimated selling
price of such inventories less the estimated costs necessary to make the sale and relevant taxes and
charges. For inventories held for the purpose of performing sales contracts or service contracts, the
contract price is used as the basis for measuring their net realizable value. If the quantity of inventories
held exceeds the quantity ordered under the sales contract, the net realizable value of the portion in
excess is measured based on general selling prices. For materials for sale, etc., market prices are used
as the basis for measuring their net realizable value.
② For material inventories that require further processing, their net realizable value is determined, in
the ordinary course of business, as the estimated selling price of the finished goods produced less the
estimated costs to completion, the estimated costs necessary to make the sale and relevant taxes and
charges. If the net realizable value of the finished goods produced using such materials is higher than
their cost, such materials are measured at cost. If a decline in material prices indicates that the net
realizable value of the finished goods is lower than their cost, such materials are measured at net
realizable value, and a provision for inventory impairment is made for the difference.
③ The Company generally makes provision for inventory impairment on an item-by-item basis. For
inventories with numerous quantities and low unit prices, the provision is made on a category basis.
(5) Amortization method of turnover materials
The Company's turnover materials are amortized by the one-time amortization method.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
The Company presents contract assets or contract liabilities in the balance sheet based on the
relationship between the Company's performance and the customer's payment. The Company
presents as contract assets the consideration it has the right to charge for goods transferred or
services rendered to customers (where such right is conditional on something other than the
passage of time). The Company presents as contract liabilities its obligation to transfer goods or
render services to customers for consideration received or receivable.
For the determination method and accounting treatment of expected credit losses on contract
assets, please refer to Note III. 11.
Contract assets and contract liabilities are presented separately in the balance sheet. Contract
assets and contract liabilities under the same contract are presented on a net basis. If the net
balance is a debit balance, it is presented under "Contract assets" or "Other non-current assets"
depending on its liquidity. Where the net balance is a credit balance, it is presented under
"Contract liabilities" or "Other non-current liabilities" depending on its liquidity. Contract assets
and contract liabilities under different contracts are not offset against each other.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
Contract costs are classified into costs to fulfill a contract and costs to obtain a contract.
Costs incurred by the Company in fulfilling a contract are recognized as an asset (contract
performance costs) only when all of the following conditions are met:
① The cost is directly related to a current or predicted contract, including the direct labor, direct
material, and manufacturing expenses (or similar expenses), the cost borne by the customer, and other
costs resulting from the contract.
② The cost increases the resources of the Company that will be used to fulfill performance
obligations in the future.
③ The cost is expected to be recovered.
If the incremental cost resulting from the Company’s acquisition of the contract is predicted to be
recovered, it shall be recognized as an asset as the contract acquisition cost.
Assets recognized for contract costs are amortized on a systematic basis that is consistent with the
transfer to the customer of the goods or services to which the assets relate. However, if the
amortization period of the costs to obtain a contract is one year or less, the Company recognizes them
in profit or loss when incurred.
The Company recognizes an impairment loss to the extent that the carrying amount of an asset related
to contract costs exceeds the difference between the following two items, and further considers
whether a provision for an onerous contract should be recognized:
① The remaining consideration expected to be received from the transfer of the goods or services to
which the asset relates; and
② The costs estimated to be incurred in transferring the related goods or services.
If the impairment loss on the above assets is subsequently reversed, the carrying amount of the asset
after reversal shall not exceed the carrying amount that would have been determined had no
impairment loss been recognized for the asset at the date of reversal.
Contract fulfillment costs recognized as assets are presented under "Inventories" if the amortization
period at initial recognition does not exceed one year or one normal operating cycle, and under "Other
non-current assets" if the amortization period at initial recognition exceeds one year or one normal
operating cycle.
Assets recognized for costs to obtain a contract are presented under "Other current assets" if the
amortization period at initial recognition does not exceed one year or one normal operating cycle, and
under "Other non-current assets" if the amortization period at initial recognition exceeds one year or
one normal operating cycle.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(1) Classification of non-current assets or disposal groups held for sale
The Company classifies a non-current asset or a disposal group as held for sale only if it meets all of the
following conditions:
① They can be sold immediately under the current status according to the practice of selling such assets or
disposal groups in similar transactions;
② The sale is highly probable, meaning that the Company has made a resolution on a disposal plan and
obtained a firm purchase commitment, and the sale is expected to be completed within one year. If
relevant regulations require approval from the Company's relevant authority or regulatory bodies before
disposal, such approval has been obtained.
When the Company acquires a non-current asset or disposal group exclusively with its view to subsequent
disposal, it classifies the non-current asset or disposal group as held for sale at the acquisition date if it
meets the requirement that "the sale is expected to be completed within one year" and it is highly probable
that the other criteria for classification as held for sale will be met within a short period (usually three
months), the Company classifies it as held for sale on the acquisition date.
If the Company is committed to a sale plan involving loss of control of a subsidiary, regardless of whether
the Company will retain a non-controlling interest in the subsidiary after the disposal, when the investment
in the subsidiary intended for disposal meets the criteria for classification as held for sale, the entire
investment in the subsidiary shall be classified as held for sale in the separate financial statements of the
parent company, and all assets and liabilities of the subsidiary are classified as held for sale in the
consolidated financial statements.
(2) Measurement of non-current assets or disposal groups held for sale
The measurement of investment properties subsequently measured using the fair value model, biological
assets measured at fair value less costs to sell, assets arising from employee compensation, deferred
income tax assets, financial assets governed by the accounting standards for financial instruments, and
rights arising from insurance contracts governed by the accounting standards for insurance contracts shall
be subject to the respective relevant accounting standards.
If, at the time of initial measurement or remeasurement at the balance sheet date, the carrying amount of a
non-current asset or disposal group held for sale exceeds its fair value less costs to sell, the carrying
amount shall be written down to fair value less costs to sell. The amount of the write-down shall be
recognized as an asset impairment loss and included in profit or loss for the current period, and an
impairment allowance for assets held for sale shall be accrued at the same time. If, at a subsequent balance
sheet date, the fair value less costs to sell of a non-current asset or disposal group held for sale increases,
the previously written-down amount is reversed, but only to the extent of the asset impairment loss
recognized after the classification as held for sale, and the amount of the reversal are recognized in profit
or loss for the current period. An impairment loss recognized for goodwill at carrying amount is not
reversed.
When a non-current asset or disposal group ceases to be classified as held for sale because it no longer
meets the criteria for classification as held for sale, or when a non-current asset is removed from a disposal
group held for sale, it is measured at the lower of the following two amounts:
① Its carrying amount before it was classified as held for sale, adjusted for any depreciation, amortization,
or impairment that would have been recognized had the asset not been classified as held for sale; and
② Its recoverable amount.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(3) Criteria for identifying discontinued operations
A discontinued operation refers to a component of the Company that can be separately distinguished
and has been disposed of or is classified as held for sale, and which meets one of the following
conditions:
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.
(4) Presentation
In the balance sheet, the Company presents, independently from other assets, the held-for-sale non-
current assets or assets in held-for-sale disposal groups, and presents, independently from other
liabilities, the liabilities in held-for-sale disposal groups. The held-for-sale non-current assets or assets
in held-for-sale disposal groups and the liabilities in held-for-sale disposal groups shall not offset
each other, but shall be presented as current assets and current liabilities, respectively.
In the income statement, the Company presents the profits and losses from going concern and the
profits and losses from discontinued operations. For the discontinued operations reported in the
current period, the Company represents in the financial statements for the current period, the
information previously presented as the profits and losses from going concern as the profits and
losses from discontinued operations for the comparable accounting period. If the discontinued
operations are no longer eligible for being classified as held-for-sale categories, the Company will
represent in the financial statements for the current period, the information previously presented as
the profits and losses from discontinued operations as the profits and losses from going concern for
the comparable accounting period.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
The Company's long-term equity investments include equity investments where the Company
exercises control over or significant influence over the investee, as well as equity investments in
joint ventures. An associate is an investee over which the Company has significant influence.
(1) Basis for determining joint control and significant influence over the investee
Joint control is the contractually agreed sharing of control of an arrangement, which exists only
when decisions about the relevant activities require the unanimous consent of the parties sharing
control. In determining whether joint control exists, the Company first assesses whether all
parties or a group of parties collectively control the arrangement. If all parties or a group of
parties must act together to decide the relevant activities of the arrangement, it is considered that
all parties or a group of parties collectively control the arrangement. Secondly, the Company
assesses whether decisions about the relevant activities of the arrangement require the
unanimous consent of the parties that collectively control the arrangement. If there are two or
more groups of parties that can collectively control the arrangement, joint control does not exist.
The Company does not consider protective rights when determining whether joint control exists.
Significant impact means the investor’s power to participate in the decision-making of the
financial and operating policies of the investee, but by which the investor cannot control or
commonly control together with other parties the formulation of the policies. In determining
whether it can exercise significant influence over the investee, the Company considers the voting
power it holds directly or indirectly by the investor in the investee, as well as the effects of
potential voting rights currently exercisable by the investor and other parties, assuming they are
converted into equity of the investee, including the effects of currently exercisable warrants,
share options, and convertible bonds issued by the investee.
When the Company directly or indirectly through subsidiaries owns 20% or more but less than
significant influence over the investee, unless it can be clearly demonstrated that under such
circumstances the Company cannot participate in the financial and operating policy decisions of
the investee and therefore does not have significant influence.
(2) Determination of initial investment cost
① For long-term equity investments arising from business combinations, the investment cost
shall be determined in accordance with the following provisions:
A. For a business combination under common control, where the combining party pays cash,
transfers non-cash assets, or assumes liabilities as the consideration for the combination, the
initial investment cost of the long-term equity investment is the share of the carrying amount of
the combined party's owners' equity in the consolidated financial statements of the ultimate
controlling party at the combination date. The difference between the initial investment cost of
the long-term equity investment and the carrying amount of the cash paid, the non-cash assets
transferred, and the liabilities assumed is adjusted against capital reserves. If the capital reserves
are insufficient to absorb the difference, retained earnings are adjusted.
B. For a business combination under common control, if the combining party issues equity
securities as the consideration for the combination, the initial investment cost of the long-term
equity investment is the share of the carrying amount of the acquiree's equity in the consolidated
financial statements of the ultimate controlling party at the combination date. The share capital is
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
recognized based on the aggregate par value of the shares issued. The difference between the
initial investment cost of the long-term equity investment and the aggregate par value of the
shares issued shall be adjusted against capital reserves are. If the capital reserves are insufficient
to absorb the difference, retained earnings are adjusted.
C. For a business combination not under common control, the combination cost, determined as
the fair value of the assets given, liabilities incurred or assumed, and equity securities issued by
the acquirer to obtain control over the acquiree at the acquisition date, is recognized as the initial
investment cost of the long-term equity investment. Intermediary expenses such as auditing,
legal services, and valuation consulting, as well as other related administrative expenses incurred
by the combining party for the business combination, are recognized in profit or loss for the
current period when incurred.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(2) Determination of initial investment cost (Continued)
② For long-term equity investments acquired through means other than business combinations,
the investment cost is determined in accordance with the following provisions:
A. For long-term equity investment acquired by cash payment, the actual acquisition price is
recognized as investment cost. The initial investment cost includes expenses, taxes, and other
necessary expenses directly related to the acquisition of the long-term equity investment.
B. For long-term equity investments acquired through the issuance of equity securities, the initial
investment cost shall be the fair value of the equity securities issued.
C. For long-term equity investments acquired through non-monetary asset exchanges, where the
exchange has commercial substance and the fair value of either the asset received or the asset
given up can be reliably measured, the initial investment cost shall be the fair value of the asset
given up plus relevant taxes and fees, and the difference between the fair value and the carrying
amount of the asset given up shall be recognized in profit or loss for the current period. Where
the non-monetary asset exchange does not simultaneously meet both of the above conditions, the
initial investment cost shall be the carrying amount of the asset given up plus relevant taxes and
fees.
D. For long-term equity investments acquired through debt restructuring, the carrying amount is
determined based on the fair value of the claim surrendered plus other costs such as taxes
directly attributable to the asset, and the difference between the fair value and the carrying
amount of the claim surrendered is recognized in profit or loss for the current period.
(3) Subsequent measurement and methods for profit or loss recognition
Long-term equity investments through which the Company is able to exercise control over the
investee are accounted for using the cost method; long-term equity investments in associates and
joint ventures are accounted for using the equity method. For the Company's equity investments
in associates, the portion held indirectly through venture capital organizations, mutual funds,
trust companies, or similar entities including unit-linked insurance funds, is measured at fair
value with changes recognized in profit or loss, and the remaining portion is accounted for using
the equity method.
① Cost method
For long-term equity investments accounted for using the cost method, the cost of the long-term
equity investment is adjusted when additional investment is made or investment is withdrawn.
Cash dividends or profits declared and distributed by the investee are recognized as investment
income for the current period.
② Equity method
For long-term equity investments accounted for using the equity method, the general accounting
treatment is as follows:
Where the initial investment cost of a long-term equity investment is greater than the Company's
share of the fair value of the investee's identifiable net assets at the time of investment, the initial
investment cost of the long-term equity investment shall not be adjusted; otherwise, the
difference shall be recognized in profit or loss for the current period, and the cost of the long-
term equity investment shall be adjusted accordingly.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(3) Subsequent measurement and methods for profit or loss recognition (Continued)
The investment income and other comprehensive income should be recognized respectively based
on the Company's share in the net profits and loss and other comprehensive income realized by the
investee, and the carrying amount of the long-term equity investment should be adjusted
accordingly; the Company's share in the profits or cash dividends declared by the investee should be
calculated, and the carrying amount of the long-term equity investment should be reduced
accordingly; the carrying amount of the long-term equity investment should be adjusted based on
changes in owners' equity of the investee other than net profits and loss, other comprehensive
income, and profit distribution, and included in owners' equity. In recognizing the share of the net
profit or loss of the investee, the net profit of the investee is adjusted and recognized based on the
fair value of the investee's identifiable net assets at the time of acquiring the investment. If the
accounting policies and accounting periods adopted by the investee are inconsistent with those of
the Company, the financial statements of the investee are adjusted to conform to the Company's
accounting policies and accounting periods, and investment income and other comprehensive
income are recognized based thereon. Any unrealized profit and loss from internal transactions
between the Company and its affiliates or joint ventures attributed to the Company based on the
Company's, will be offset, and the investment profit and loss is recognized thereon. Unrealized
losses on transactions between the Company and the investee that provide evidence of an
impairment of the transferred asset are recognized in full.
If the Company is able to exercise significant influence or joint control over the investee due to
additional investment or other reasons, but does not constitute control, the sum of the fair value of
the originally held equity investment and the cost of the additional investment shall be used as the
initial investment cost under the equity method. Where the originally held equity investment is
classified as an investment in other equity instruments, the difference between its fair value and
carrying amount as well as the cumulative gains or losses previously recognized in other
comprehensive income, shall be transferred from other comprehensive income to retained earnings
in the period the equity method is adopted.
Where the Company loses joint control or significant influence over the investee due to the disposal
of part of the equity investment or otherwise, the remaining equity investment after the disposal
shall be measured at fair value, and the difference between its fair value and carrying amount at the
date of losing joint control or significant influence shall be recognized in profit or loss for the
current period. Other comprehensive income recognized for the original equity investment
accounted for using equity method should be accounted for on the same basis as the direct disposal
of the underlying assets or liabilities by the investee when the equity method is terminated.
(4) Equity investments held for sale
Where an equity investment in an associate or a joint venture is classified in whole or in part as held
for sale, the relevant accounting treatment is set out in Note III. 16.
For any retained portion of the equity investment not classified as held for sale, the equity method is
applied.
Where an equity investment in an associate or a joint venture that has been classified as held for sale
no longer meets the criteria for classification as held for sale, the equity method is applied
retrospectively from the date of its classification as held for sale. The financial statements for the
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
periods during which the investment was classified as held for sale are adjusted accordingly.
(5) Impairment testing and provision methods for impairment losses
For investments in subsidiaries, associates, and joint ventures, the method for making provision for
asset impairment is set out in Note III. 23.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(1) Classification of investment properties
Investment properties refer to properties held to earn rentals or for capital appreciation, or both.
They mainly include:
① Land use rights that are leased out.
② Land use rights held for transfer after appreciation.
③ Buildings that are leased out.
(2) Measurement model for investment properties
The Company uses the cost model for the subsequent measurement of investment properties. For
the method of providing for asset impairment, see Note III. 23.
The Company calculates depreciation or amortization for investment properties using the straight-
line method based on cost less accumulated impairment and net residual value. The depreciation
or amortization method adopts the same policy as that applied to buildings in fixed assets and land
use rights in intangible assets.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
Fixed assets refer to tangible assets held for the purpose of producing goods, rendering services,
for rental or for operation and management, with a service life exceeding one year and a relatively
high unit value.
(1) Recognition criteria
Fixed assets are recognized at the actual cost incurred at the time of acquisition when the
following conditions are met simultaneously:
① The economic benefits associated with the fixed assets are likely to flow into the enterprise.
② The cost of the fixed asset can be measured in a reliable way.
Subsequent expenditures on fixed assets that satisfy the recognition criteria of fixed assets are
included in the cost of fixed assets; otherwise, they are recognized in profit and loss in the period
in which they arise.
(2) Depreciation methods for various categories of fixed assets
The Company accrues depreciation using the straight-line method starting from the month
following the date when the fixed asset is ready for its intended use. The depreciation period and
annual depreciation rate are determined based on the category of the fixed asset, the estimated
economic useful life, and the estimated net residual value rate as follows:
Estimated Annual
Asset Category
Service Life Depreciation Rate
Houses and buildings 20-50 years 1.8%-5%
Machinery equipment 5-15 years 6%-20%
Office and electronic equipment 2-5 years 18%-50%
Transportation equipment 3-5 years 18%-33.33%
Power stations 20-25 years 3.8%-4.75%
Others 4-5 years 18%-25%
For fixed assets for which an impairment provision has been recognized, depreciation is calculated
based on the carrying amount net of the impairment provision.
At the end of each financial year, the Company reviews the useful lives, estimated net residual
values, and depreciation methods of fixed assets. Where the estimated useful life differs from the
previous estimate, the useful life of the fixed asset shall be adjusted accordingly.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(1) Construction in progress is classified and accounted for by project.
(2) Criteria and timing for transferring construction in progress to fixed assets
Construction in progress is measured at the total expenditure incurred before the asset is ready for its
intended use, which serves as the initial cost of the fixed asset. This includes construction costs,
original cost of machinery and equipment, other necessary expenditures incurred to bring the
construction in progress to the condition ready for its intended use, as well as borrowing costs
incurred from special borrowings for the project and borrowing costs incurred from general
borrowings utilized before the asset is ready for its intended use. The Company transfers construction
in progress to fixed assets when the project installation or construction is completed and the asset is
ready for its intended use. For fixed assets that are ready for their intended use but have not yet
undergone final completion settlement, they are transferred to fixed assets at an estimated value based
on the project budget, construction cost, or actual project cost from the date they are ready for their
intended use, and depreciation is provided in accordance with the Company's fixed asset depreciation
policy. After the final completion settlement is processed, the original provisional value is adjusted to
the actual cost, but the originally accrued depreciation amount will not be adjusted.
(1) Recognition principles and capitalization period for borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction, or production of
qualifying assets are capitalized and included in the cost of the relevant assets when the following
conditions are met simultaneously:
① Expenditure on the asset has been incurred;
② Borrowing costs have been incurred;
③ The acquisition, construction, or production activities necessary to bring the assets to their intended
usable state have commenced.
Other borrowing interest, discount or premium, and exchange differences are recognized in the profit
or loss of the current period.
If the acquisition, construction, or production of a qualifying asset is abnormally interrupted and the
interruption lasts for more than three consecutive months, the capitalization of borrowing costs will be
suspended.
When an asset that meets the capitalization conditions is ready for its intended use or sale, the
capitalization of borrowing costs will be ceased and subsequent borrowing costs will be recognized as
expenses for the current period.
(2) Calculation method for capitalization rate and capitalized amount
For special borrowings obtained for the acquisition, construction, or production of qualifying assets,
the amount of interest expense actually incurred during the current period, less any interest income
earned from depositing the unused borrowing funds in a bank or investment income from temporary
investments, shall be recognized as the capitalized amount of interest expense.
Where general borrowings are utilized for the acquisition, construction, or production of qualifying
assets, the amount of interest to be capitalized shall be determined by multiplying the weighted average
of accumulated asset expenditures in excess of special borrowings by the capitalization rate of the
general borrowings utilized. The capitalization rate is determined based on the weighted average
interest rate of general borrowings.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
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
The shorter of the years of the land use rights and the operating years of
Land use rights
the Company
Patents and non-patent 10 years or the shorter of service life, beneficiary years and legally valid
technologies years
Others Beneficiary period
The Company reviews the service life and amortization method of intangible assets with limited service life
at least at the end of each year, and makes adjustments if necessary.
The methods for impairment testing and accrual of impairment provisions of intangible assets are detailed in
If the period over which an intangible asset is expected to bring economic benefits to the Company cannot
be foreseen, it is regarded as an intangible asset with an indefinite useful life. The Company reviews its
useful life in each accounting period. If evidence indicates that the useful life is finite, it is reclassified as an
intangible asset with a finite useful life. Intangible assets with indefinite useful lives are not amortized.
The expenditures of the Company's internal research and development items are classified into expenditures
in the research phase and expenditures in the development phase. Research means the original and planned
investigation undertaken for the purpose of acquiring and understanding new scientific or technical
knowledge. Development means the application of research results or other knowledge to a plan or design
for the production of new or substantially improved materials, devices, products, etc., prior to the
commencement of commercial production or use.
The expenditures in the research phase of the Company's internal research and development items are
included in the current profit and loss when incurred; expenditures in the development phase are recognized
as intangible assets only when the following conditions are all satisfied:
(1) It is technically feasible to complete the intangible asset to enable it to be used or sold;
(2) There is intent to complete the intangible asset and use or sell it;
(3) The intangible assets can bring economic benefits;
(4) There are sufficient technical, financial, and other resources to support the development of the intangible
assets as well as the ability to use or sell the intangible assets;
(5) Expenditures attributable to the development stage of the intangible asset can be measured in a reliable way.
If the above conditions cannot all be satisfied, the expenditures are included in the current profit and loss
when incurred.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
Impairment of long-term equity investments in subsidiaries, associates, and joint ventures, investment
properties measured using the cost model, fixed assets, construction in progress, right-of-use assets,
intangible assets, and goodwill (excluding inventories, investment properties measured using the fair
value model, deferred income tax assets, and financial assets) is determined in accordance with the
following methods:
At the balance sheet date, the Company assesses whether there is any indication that an asset may be
impaired. If such an indication exists, the Company estimates the recoverable amount and conducts an
impairment test. For goodwill arising from business combinations, intangible assets with indefinite
useful lives, and intangible assets not yet ready for use, an impairment test is carried out annually
regardless of whether there is any indication of impairment.
The recoverable amount is determined based on the higher of the fair value of the asset less costs of
disposal and the present value of estimated future cash flows. The Company estimates the recoverable
amount thereof based on the individual asset. If it is difficult to estimate the recoverable amount of the
individual asset, the recoverable amount of the asset is determined based on the cash-generating unit to
which the asset belongs. The identification of the cash-generating unit is based on whether the main
cash inflows generated by the cash-generating unit are independent of the cash inflows from other
assets or cash-generating units.
When the recoverable amount of an asset or cash-generating unit is lower than its carrying amount, the
carrying amount is written down to the recoverable amount, and the amount written down is recognized
in profit or loss for the current period, while a corresponding provision for asset impairment is made.
For the purpose of goodwill impairment testing, the carrying amount of goodwill arising from a
business combination is allocated to the relevant cash-generating units on a reasonable basis; if it is
difficult to allocate the goodwill to individual cash-generating units, it is allocated to the related group
of cash-generating units. A relevant cash-generating unit or group of cash-generating units refers to the
unit or group that benefits from the synergies of the business combination and is not larger than the
operating segments determined by the Company.
When conducting impairment tests, if there are indications of impairment in the cash-generating units
or groups of cash-generating units related to goodwill, the impairment test is first performed on the
cash-generating units or groups of cash-generating units excluding goodwill, calculating the
recoverable amount and recognizing the corresponding impairment loss. Then, impairment tests are
conducted on the cash-generating units or groups of cash-generating units including goodwill by
comparing their carrying amounts with their recoverable amounts. If the recoverable amount is lower
than the carrying amount, an impairment loss for goodwill is recognized.
Once an asset impairment loss is recognized, it shall not be reversed in subsequent accounting periods.
Long-term deferred expenses refer to various expenses that the Company has paid, should be amortized
over the current and future periods, and whose period of amortization is more than one year, such as
the improvement expenses incurred in renting fixed assets by operating leases. Long-term deferred
expenses are amortized on a straight-line basis within the beneficial period of the expense items.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
Employee benefits refer to various forms of remuneration or compensation provided by the Company in
exchange for services rendered by employees or for the termination of employment relationships.
Employee benefits include short-term employee benefits, post-employment benefits, termination
benefits, and other long-term employee benefits. Benefits provided by the Company to the spouses,
children, dependents, beneficiaries of deceased employees, and other beneficiaries of employees are also
considered employee benefits.
Based on liquidity, employee benefits are presented separately under "Employee compensation payable"
and "Long-term employee compensation payable" in the balance sheet.
(a) Accounting treatment for short-term employee benefits
Short-term employee benefits include employee wages or salaries, bonuses, allowances and subsidies,
employee services and benefits, premiums or contributions on medical insurance, work injury insurance
and maternity insurance, housing funds, union running costs and employee education costs, and short-
term paid absences. During the accounting period when employees provide services, the Company
recognizes the actual short-term remuneration as liabilities, and includes it in current profits and losses or
related asset costs according to the beneficiaries of the services provided by employees. Non-monetary
benefits are measured at their fair value.
(b) Accounting treatment for post-employment benefits
The Company classifies post-employment benefit plans as either defined contribution plans or defined
benefit plans. Defined contribution plans are post-employment benefit plans under which the Company
pays fixed contributions into a separate fund and will have no obligation to pay further contributions; and
defined benefit plans are post-employment benefit plans other than defined contribution plans. During
the Reporting Period, the Company’s defined contribution plans mainly include basic pensions and
unemployment insurance.
(c) Accounting treatment for termination benefits
If the Company terminates the labor relationship with an employee before the labor contract expires or
offers compensation for encouraging the employee to accept the redundancies voluntarily, the liabilities
arising from compensation for the termination of labor relations with the employee are determined, and
also included in current profits and losses at the time when the Company cannot unilaterally withdraw
the termination of the labor relationship plan or redundancies proposal or the time when the cost
associated with reorganization involving payment of termination benefits is confirmed, whichever is
earlier.
(d) Accounting treatment for other long-term employee benefits
Other long-term employee benefits refer to all employee benefits except short-term employment benefits,
post-employment benefits, and termination benefits.
For other long-term employee benefits that meet the conditions of a defined contribution plan, the
amount to be contributed shall be recognized as a liability during the accounting period when the
employee provides services to the Company, and shall be included in profit or loss for the period or the
underlying asset costs. For long-term employee benefits other than those mentioned above, on the
balance sheet date, the benefit obligations arising from the defined benefit plan shall be attributed to the
periods during which the employee provides services, and shall be included in profit or loss for the
period or the underlying asset costs.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(1) Recognition standards for provision
If an obligation relating to a contingency meets the following conditions simultaneously, the
Company recognizes it as a provision:
① The obligation is a present obligation of the Company;
② It is probable that an outflow of economic benefits will be required to settle the obligation;
③ The amount of the obligation can be reliably measured.
(2) Measurement methods for provision
A provision is initially measured at the best estimate of the expenditure required to settle the
related present obligation, taking into account factors such as risks, uncertainties, and the time
value of money associated with the contingency. The carrying amount of a provision is reviewed
at each balance sheet date. Where there is convincing evidence that the carrying amount does not
reflect the current best estimate, the carrying amount is adjusted to the current best estimate.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(1) Types of share-based payments
The Company's share-based payments include cash-settled share-based payments and equity-
settled share-based payments.
(2) Method for determining the fair value of equity instruments
① For shares granted to employees, the fair value is measured based on the market price of the
Company's shares, adjusted for the terms and conditions upon which the shares were granted
(excluding vesting conditions other than market conditions). ② For share options granted to
employees, it is often difficult to obtain their market price. If there are no traded options with
similar terms and conditions, the Company selects an appropriate option pricing model to estimate
the fair value of the options granted.
(3) Basis for determining the best estimate of the number of equity instruments expected to vest
On each balance sheet date during the vesting period, the Company makes the best estimates based
on the latest subsequent information, such as changes in the number of employees eligible for
vesting, and revises the estimated number of equity instruments expected to vest.
(4) Accounting treatment for the implementation of share-based payment plans
Cash-settled share-based payments
① For cash-settled share-based payments that are vested immediately upon grant, the fair value of
the liability assumed by the Company is recognized in the relevant costs or expenses on the grant
date, with a corresponding increase in liabilities. The fair value of the liability is remeasured at
each balance sheet date prior to settlement and on the settlement date, and changes therein are
recognized in profit or loss.
② For cash-settled share-based payments that become exercisable only after the completion of
services during the vesting period or the satisfaction of stipulated performance conditions, the
services received in the current period are recognized in the relevant costs or expenses and
corresponding liabilities at each balance sheet date during the vesting period. This is based on the
best estimate of the vesting conditions and the fair value of the liability assumed by the Company.
Equity-settled share-based payments
① For equity-settled share-based payments that vest immediately after grant in exchange for
employee services, the fair value of the equity instruments is recognized in the relevant costs or
expenses on the grant date, with a corresponding increase in capital reserves.
② For equity-settled share-based payments in exchange for employee services that become vested
only after the completion of services during the vesting period or the satisfaction of stipulated
performance conditions, the services received in the current period are recognized in the relevant
costs or expenses and capital reserves at each balance sheet date during the vesting period. This is
based on the best estimate of the number of equity instruments expected to vest and the fair value
of the equity instruments on the grant date.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(5) Accounting treatment for modifications to share-based payment plans
When the Company modifies a share-based payment plan, if the modification increases the fair
value of the equity instruments granted, the increase in the fair value of the equity instruments is
recognized as a corresponding increase in the services received. If the modification increases the
number of equity instruments granted, the fair value of the additional equity instruments is
recognized as a corresponding increase in the services received. The increase in the fair value of
the equity instruments is the difference between the fair value of the equity instruments
immediately before and after the modification, measured at the modification date. If the
modification reduces the total fair value of the share-based payment or otherwise modifies the
terms and conditions of the share-based payment plan in a manner that is unfavourable to the
employees, the Company continues to account for the services received as if the modification had
not been made, unless the Company cancels part or all of the equity instruments granted.
(6) Accounting treatment for termination of share-based payment plans
If the Company cancels or settles the granted equity instruments during the vesting period (other
than those cancelled due to failure to satisfy vesting conditions), the Company:
① Treats the cancellation or settlement as an acceleration of vesting, and immediately recognizes
the amount that would otherwise have been recognized over the remaining vesting period;
② Treats any payments made to employees upon cancellation or settlement as a repurchase of
equity interests, and recognizes any excess of the repurchase consideration over the fair value of
the equity instruments on the repurchase date as an expense in the current period.
If the Company repurchases vested equity instruments from its employees, it reduces the
Company's equity. Any excess of the repurchase consideration over the fair value of the equity
instruments on the repurchase date is recognized in profit or loss for the current period.
In respect of other financial instruments issued by the Company such as preference shares and
perpetual bonds, the Company classifies a financial instrument or its components into financial
assets, financial liabilities or equity instruments upon initial recognition, based on the contract
terms and the economic substance reflected by the financial instrument issued, rather than solely
on legal form, in conjunction with the definitions of financial assets, financial liabilities, and
equity instruments.
The Company determines the accounting treatment for interest expenses or dividend distributions
of a financial instrument based on its classification. For a financial instrument classified as an
equity instrument, regardless of whether its name includes "debt", its interest expenses or dividend
distributions are treated as profit distributions of the Company (the issuing entity), and its
repurchase or cancellation is treated as a change in equity. For a financial instrument classified as
a financial liability, regardless of whether its name includes "share", its interest expenses or
dividend distributions are treated in principle as borrowing costs, and any gains or losses arising
from its repurchase or redemption are recognized in profit or loss for the current period.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(1) General principles
Revenue represents the gross inflow of economic benefits arising from the ordinary activities of the Company,
which results in an increase in shareholders' equity and is distinct from capital contributions from
shareholders.
The Company recognizes revenue when it satisfies a performance obligation in the contract, which is when the
customer obtains control of the relevant goods or services. "Obtain the control over relevant commodities or
services" refers to the ability to completely dominate the use of commodities and obtain almost all economic
benefits.
If a contract contains two or more performance obligations, the Company allocates the transaction price to
each performance obligation in proportion to the standalone selling price of the goods or services promised
under each performance obligation at the contract inception date, and measures revenue based on the
transaction price allocated to each performance obligation.
The transaction price is the amount of consideration to which the Company expects to be entitled in exchange
for the transfer of goods or services to a customer, excluding amounts collected on behalf of third parties.
When determining the transaction price of a contract, if there is variable consideration, the Company
determines the best estimate of the variable consideration using either the expected value method or the most
likely amount method. The Company includes in the transaction price some or all of an amount of variable
consideration only to the extent that it is highly probable that a significant reversal in the amount of
cumulative revenue recognized will not occur when the related uncertainty is subsequently resolved. If a
contract contains a significant financing component, the Company determines the transaction price based on
the cash selling price that the customer would have paid when obtaining control of the goods. The difference
between the transaction price and the contractual consideration is amortized over the contract period using the
effective interest method. If the period between the transfer of control and the customer's payment does not
exceed one year, the Company does not consider the financing component in the contract.
If any of the following conditions is met, a performance obligation is satisfied over time; otherwise, it is
satisfied at a point in time:
① While fulfilling the due obligation in the Company, the customer obtains and consumes the resulting
economic benefit;
② The customer is able to control the commodities under construction during the Company’s fulfillment;
③ Commodities generated from the Company’s fulfillment possess irreplaceable purpose, and the Company
has the right to charge all fulfilled performance obligations within the whole contract period.
For performance obligations satisfied over time, the Company recognizes revenue over that period based on
the progress towards complete satisfaction of the performance obligation, except when the progress cannot be
reasonably determined. The Company determines the progress towards satisfaction of service-related
performance obligations using the input method (or the output method). If the fulfillment schedule cannot be
reasonably determined and the Company’s costs are predicted to be compensated, corresponding revenue shall
be recognized based on the specific cost amount until the fulfillment schedule can be reasonably determined.
For performance obligations satisfied at a point in time, the Company recognizes revenue when the customer
obtains control of the relevant goods. When determining whether control has transferred, the Company
considers the following indicators:
① The Company has a present right to payment for the goods or services, for which the customer has a
present obligation to pay for the goods;
② The Company has transferred legal title of the goods to the customer, for which the customer has legal title
to the goods;
③ The Company has transferred physical possession of the goods to the customer, for which the customer has
physical possession of the goods;
④ The Company has transferred the significant risks and rewards of ownership of the goods to the customer,
for which the customer has assumed the significant risks and rewards of ownership;
⑤ The customer has accepted the goods.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(1) General principles (Continued)
Sales with right of return
For sales involving a right of return, the Company recognizes revenue at the amount of consideration to
which it expects to be entitled upon transferring control of the goods to the customer, and recognizes a
refund liability for the amount expected to be refunded due to sales returns. Simultaneously, the
Company recognizes an asset for the right to recover products, measured at the carrying amount of the
goods expected to be returned less the estimated costs to recover them (including any impairment in
value). The Company recognizes cost of sales as the carrying amount of the transferred goods less the net
cost of the asset recognized above. At each balance sheet date, the Company reassesses its estimates of
expected returns and remeasures the corresponding refund liability and asset for the right to recover
products accordingly.
Warranty obligations
The Company provides warranties for goods sold and projects constructed in accordance with contractual
agreements, legal requirements, and other applicable regulations. For assurance-type warranties, which
serve to guarantee that the products meet agreed-upon specifications, the Company accounts for such
warranties in accordance with Accounting Standards for Business Enterprises No. 13 – Contingencies.
For service-type warranties that provide a service in addition to the assurance that the goods comply with
agreed-upon specifications, the Company identifies them as a separate performance obligation. The
Company allocates a portion of the transaction price to the service-type warranty based on the relative
standalone selling prices of the goods and the warranty service, and recognizes revenue when the
customer obtains control of the service. In determining whether a warranty provides a service in addition
to the assurance that the goods comply with agreed-upon specifications, the Company considers factors
such as whether the warranty is required by law, the length of the warranty period, and the nature of the
services to be performed.
Principal versus Agent
The Company determines whether it is a principal or an agent based on whether it controls the goods or
services before they are transferred to the customer. If the Company controls the goods or services before
they are transferred to the customer, the Company acts as a principal and recognizes revenue at the gross
amount of consideration received or receivable. Otherwise, the Company acts as an agent and recognizes
revenue at the net amount of any commission or fee to which it expects to be entitled. This net amount is
determined either as the total consideration received or receivable less the amounts payable to other
relevant parties, or based on a predetermined commission amount or percentage.
Consideration payable to customers
For contracts containing consideration payable to a customer, the Company accounts for such
consideration as a reduction of the transaction price unless the payment is in exchange for a distinct good
or service received from the customer. The reduction in revenue is recognized at the later of when the
related revenue is recognized or when the Company pays (or promises to pay) the consideration.
Customer’s unexercised rights
Advance payments received from customers for the sale of goods or services are initially recognized as
contract liabilities and subsequently recognized as revenue when the related performance obligations are
satisfied. When advance payments received by the Company are non-refundable and customers may
forfeit all or part of their contractual rights, if the Company expects to be entitled to the amount relating
to those forfeited rights, it shall recognize that amount as revenue in proportion to the pattern of rights
exercised by the customer. Otherwise, the Company recognizes the related balance of the liability as
revenue only when the likelihood of the customer exercising its remaining rights is remote.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(1) General principles (Continued)
Contract modifications
When a construction contract with a customer is modified:
① If the contract modification adds distinct construction services and increases the contract
consideration, and the additional consideration reflects the standalone selling price of the added
construction services, the Company accounts for the modification as a separate contract;
② If the contract modification does not fall under the circumstances described in ① above, and the
construction services already transferred and those to be transferred are distinct as of the
modification date, the Company treats it as a termination of the original contract and combines
remaining uncompleted portion of the original contract with the modification portion to account for
them as a new contract;
③ If the contract modification does not fall under the circumstances described in ① above, and the
construction services already transferred and those to be transferred are not distinct as of the
modification date, the Company accounts for the modification as a part of the existing contract. The
resulting impact on recognized revenue is recorded as an adjustment to revenue in the current
period.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(2) Specific methods
Revenue from product sales
According to the contract terms, for the selling of products subject to performance obligation
fulfillment conditions at a time point and other products, the Company shall recognize the
realization of sales revenues when the customer obtains control over relevant commodities or
services according to the delivery condition agreed in the sales contract upon signing by the
customer after commodities are received.
Revenue from technical services
If revenues are recognized within a certain period based on the technical service contract,
corresponding revenues shall be recognized according to the performance schedule.
Royalty income
Accounted for according to the time and method of charging as stipulated in the relevant contract or
agreement.
Revenue from photovoltaic power stations
Centralized power stations: Power stations are connected to the power grid. Revenue is recognized
based on power supply documentation provided by the Company’s business departments, upon
meeting the continuous and fault-free operation period stipulated by the power grid company.
Distributed power stations: These stations are connected to the grid. Revenue is recognized based on
settlement documents provided by the Company’s business departments.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(1) Types of public grants
Public grants are transfers of monetary or non-monetary assets from the public to the Group at nil
consideration. According to the grant targets stipulated in the relevant public documents, public
grants are classified into public grants related to assets and public grants related to income.
(2) Recognition of public grants
If a public grant is a monetary asset, it is measured at the amount received or receivable. If a
public grant is a non-monetary asset, it is measured at fair value. If the fair value cannot be
obtained in a reliable way, there are measured at the nominal amount (RMB 1). Public grants
measured at nominal amounts are recognized directly in the current profits and losses.
(3) Accounting treatment for public grants
Public grants related to assets offset the carrying amount of the underlying assets.
If the public grants related to income are used to compensate related costs or losses in the
subsequent period, they are recognized as deferred income and included in the current profit and
loss or offset costs in the period in which the related costs or losses are recognized; public grants
used to compensate costs or losses incurred by the enterprise shall be directly included in current
profits and losses or offset related costs. For public grants related to the day-to-day activities of the
enterprise, the R&D and VAT-related subsidies and the taxation, or operation-based incentive
public subsidies are included in other income; other public grants are written off against related
costs based on the substance of economic activities. Public grants not related to daily activities of
the Company are included in the non-operating income and expenditure. For preferential loans for
policy discounts, if the public finance department appropriates the discounted funds to the lending
bank, the borrowing cost is accounted for according to the principal of the loan and the policy
preferential interest rate, with the amount actually received as the entry value of the loan. If the
public finance department directly appropriates the interest grant funds to the Company, the grants
shall offset the related borrowing costs.
In case a recognized public grant is required to be returned, the carrying amount of the asset is
adjusted if the carrying amount of relevant assets is offset at the initial recognition; if there is
related deferred income, the book balance of deferred income is offset, and the excess is included
in the current profit and loss; and in case of other circumstances, it is directly included in current
profits and losses.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
Deferred income tax assets and deferred income tax liabilities are recognized and measured for
the income tax effects of taxable temporary differences or deductible temporary differences,
using the balance sheet liability method, based on the temporary differences between the
carrying amounts of assets and liabilities and their tax bases at the balance sheet date. Deferred
income tax assets and deferred tax liabilities are not discounted.
(1) Recognition of deferred income tax assets
Deferred income tax assets are recognized for the income tax effects of deductible temporary
differences, unused tax losses, and tax credits carried forward, measured at the tax rates expected
to apply in the periods in which the temporary differences are expected to reverse, but only to
the extent that it is probable that future taxable profits will be available against which the
deductible losses, unused tax losses, and tax credits can be utilized.
Deferred tax assets are not recognized for the income tax effects of deductible temporary
differences arising from the initial recognition of an asset or liability in a transaction or event
that simultaneously meets the following criteria:
A. The transaction is not a business combination;
B. At the time of the transaction, it affects neither accounting profit nor taxable profit (or
deductible losses).
However, the initial recognition exemption does not apply to single transactions that
simultaneously meet the above two conditions and where the initial recognition of assets and
liabilities gives rise to equal taxable and deductible temporary differences. For taxable and
deductible temporary differences arising from the initial recognition of assets and liabilities in
such transactions, the Company recognizes the corresponding deferred tax liabilities and
deferred income tax assets, respectively, at the time the transaction occurs.
Deferred tax assets are recognized for deductible temporary differences related to investments in
subsidiaries, associates, and joint ventures only when both of the following conditions are met:
① It is probable that the temporary differences will reverse in the foreseeable future; and
② It is probable that sufficient taxable profits will be available against which the deductible
temporary differences can be utilized;
At the balance sheet date, the Company reassesses unrecognized deferred income tax assets and
recognizes such assets to the extent that it has become probable that future taxable profit will be
available to utilize the deductible temporary differences.
At the balance sheet date, the carrying amount of deferred tax assets is reviewed. Deferred
income tax assets are reduced to the extent that it is no longer probable that sufficient taxable
profits will be available to reduce the carrying amount of the deferred income tax assets. Any
such reduction is reversed when it becomes probable that sufficient taxable profits will be
available.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(2) Recognition of deferred income tax liabilities
All taxable temporary differences of the Company are measured at the tax rates expected to
apply in the periods in which the temporary differences are expected to reverse, and the related
income tax effects are recognized as deferred tax liabilities, except in the following cases:
①Deferred tax liabilities are not recognized for taxable temporary differences arising from the
following transactions or events:
A. Initial recognition of goodwill;
B. The initial recognition of an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, does not affect accounting profit or taxable profit
(or deductible losses).
② Deferred tax liabilities are generally recognized for taxable temporary differences related to
investments in subsidiaries, joint ventures, and associates, except when both of the following
conditions are met:
A. The Company can control the timing of the reversal of the temporary differences;
B. It is probable that the temporary differences will not reverse in the foreseeable future.
(3) Recognition of deferred tax assets and deferred tax liabilities for specific transactions or events
① deferred income tax assets and deferred tax liabilities related to business combinations
For taxable and deductible temporary differences arising from business combinations not under
common control, the corresponding deferred income tax expense (or income) typically adjusts
the goodwill recognized in the business combination.
② Items directly recognized in owners' equity
Current and deferred taxes related to transactions or events that are directly recognized in equity
are also recognized in owners' equity. Transactions or events for which the income tax effects of
temporary differences are recognized in owners' equity include: other comprehensive income
arising from changes in fair value of other debt investments; adjustments to the opening balance
of retained earnings resulting from the retrospective application of a change in accounting policy
or the retrospective restatement to correct a (material) prior period error; the initial recognition of
compound financial instruments containing both liability and equity components.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
Recognition of deferred income tax assets and deferred tax liabilities for specific transactions or
(3)
events (Continued)
③ Unused tax losses and tax credits carried forward
A. Unused tax losses and tax credits arising from the Company’s own operations
Deductible losses refer to losses determined in accordance with tax laws that are allowed to be
utilized against taxable profits in future periods. Deductible losses and tax credits carried forward in
accordance with tax regulations are treated as deductible temporary differences. Deferred tax assets
are recognized to the extent that it is probable that sufficient taxable profits will be available in future
periods against which the unused tax losses or tax credits can be utilized, with a corresponding
reduction in current income tax expense.
B. Unused tax losses of the acquiree arising from business combinations
In a business combination, the acquiree's deductible temporary differences acquired from the acquiree
are not recognized as deferred tax assets at the acquisition date if they do not meet the recognition
criteria. If, within 12 months after the acquisition date, new or further information is obtained
indicating that facts and circumstances existed at the acquisition date, and it is expected that the
economic benefits of the acquiree's deductible temporary differences at the acquisition date will be
realized, the related deferred income tax assets are recognized with a corresponding reduction to
goodwill. If the carrying amount of goodwill is reduced to zero, any remaining amount is recognized
in profit or loss for the current period. In all other cases, deferred income tax assets recognized in
connection with a business combination are recognized in profit or loss for the current period.
④ Temporary differences arising from consolidation eliminations
In preparing the consolidated financial statements, temporary differences arising from the elimination
of unrealized gains or losses on intra-group transactions, which result in differences between the
carrying amounts of assets and liabilities in the consolidated balance sheet and their tax bases in the
respective taxable entities, are recognized as deferred tax assets or deferred tax liabilities in the
consolidated balance sheet, with a corresponding adjustment to income tax expense in the
consolidated income statement, except for deferred taxes related to transactions or events recognized
directly in equity or arising from business combinations.
⑤ Equity-settled share-based payments
If tax laws permit tax deductions for expenses related to share-based payments, during the period in
which the costs or expenses are recognized in accordance with accounting standards, the Company
determines the tax base and the resulting temporary differences based on the estimated deductible
amount using information available at the end of the reporting period. Related deferred tax is
recognized if the recognition criteria are met. To the extent that the estimated deductible amount in
future periods exceeds the cost or expense recognized for share-based payments under accounting
standards, the income tax effects of the excess are recognized directly in owner's equity.
(4) The basis for presenting deferred income tax assets and deferred tax liabilities on a net basis
Deferred income tax assets and liabilities of the Company are presented on a net basis after the
following conditions are met:
① The Company has the legal right to settle current income tax assets and liabilities on a net basis;
② Deferred income tax assets and liabilities relate to income taxes levied by the same taxing
authority on either the same taxable entity or different taxable entities that intend to either settle
current tax assets and liabilities on a net basis, or to realize the assets and settle the liabilities
simultaneously, in each future period in which significant amounts of deferred tax assets or liabilities
are reversed.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(1) Identification of leases
At the commencement date of a contract, the Company assesses whether the contract is, or contains, a
lease. A contract is, or contains, a lease if one party transfers the right to control the use of one or
more identified assets for a period of time in exchange for consideration. To determine whether the
contract transfers the right to control the use of an identified asset for a period of time, the company
assesses whether the customer has the right to obtain substantially all of the economic benefits from
the use of the identified asset during the period and the right to direct the use of the identified asset
throughout the period.
(2) Identification of separate leases
If a contract contains multiple single leases at the same time, the Company will split the contract, and
conduct accounting treatment of each single lease respectively. The right to use an identified asset
constitutes a separate lease if both of the following conditions are met: ① the lessee can benefit from
the use of the underlying asset either on its own or together with readily available resources; and ②
the underlying asset is not highly dependent on or highly interrelated with other assets in the contract.
(3) Accounting treatment with the Company as lessee
At the commencement date, the Company classifies leases with a lease term of 12 months or less and
without a purchase option as short-term leases; leases of individual underlying assets that are new and
have a value below RMB 40,000 when the new underlying assets are classified as leases of low-value
assets. If the Company subleases or expects to sublease an underlying asset, the head lease does not
qualify as a lease of a low-value asset.
For all short-term leases and leases of low-value assets, the Company recognizes lease payments over
the lease term on a straight-line basis or using another systematic and rational method, allocating
them to the cost of the related asset or to current profit or loss.
Except for the short-term leases and leases of low-value assets for which the simplified approach is
applied, the Company recognizes a right-of-use asset and a lease liability at the commencement date
of the lease.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(3) Accounting treatment with the Company as lessee (Continued)
① Right-of-use assets
Right-of-use assets refer to the lessee’s right to use the leased assets over the lease term.
At the commencement date of the lease, right-of-use assets are initially measured at cost. The cost
comprises:
A. The initial measurement amount of lease liabilities;
B. Lease payments made on or before the commencement date of the lease term (if a lease
incentive exists, net of the amount related to the lease incentive already taken);
C. Initial direct costs incurred by the lessee;
D. Costs expected to be incurred by the lessee to disassemble and remove the leased asset(s),
restore the premises where the leased asset(s) is/are located, or restore the leased asset(s) to the
condition agreed upon under the terms of the lease. The Company recognizes and measures these
costs in accordance with the recognition and measurement criteria for provisions, as detailed in
Note III. 26. The above costs incurred for the production of inventories are included in the cost of
inventories.
Right-of-use assets are depreciated on a straight-line basis over their useful lives by category. For
leases in which it is reasonably certain that ownership of the underlying asset will transfer to the
lessee at the end of the lease term, depreciation is recognized over the estimated remaining useful
life of the underlying asset, based on the category of the right-of-use asset and its estimated net
residual value. For leases in which it is not reasonably certain that ownership of the underlying
asset will transfer to the lessee at the end of the lease term, depreciation is recognized over the
shorter of the lease term and the estimated remaining useful life of the underlying asset, based on
the category of the right-of-use asset.
② Lease liabilities
Lease liabilities are initially measured at the present value of the lease payments that are not paid
at the commencement date of the lease. Lease payments comprise the following five components:
A. Fixed payments, including in-substance fixed payments, less any lease incentives receivable;
B. Variable lease payments that depend on indexation or ratio;
C. The exercise price of a purchase option, if the lessee is reasonably certain to exercise that
option;
D. Amounts expected to be payable under a termination option, if the lease term reflects that the
lessee is reasonably certain to exercise that option;
E. The estimated amount payable is based on the secured residual value provided by the lessee.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(3) Accounting treatment with the Company as lessee (Continued)
The present value of lease payments is discounted using the interest rate implicit in the lease. If the
interest rate implicit in the lease cannot be readily determined, the Company uses its incremental
borrowing rate as the discount rate. The difference between the lease payments and their present
value is recognized as unrecognized finance charges. Interest expense is recognized in current
profits and losses over the lease term using the discount rate used to measure the present value of
lease payments. Variable lease payments not included in the measurement of lease liabilities are
recognized in current profits and losses. when incurred.
After the commencement date, if there are changes in in-substance fixed payments, expected
amounts payable under residual value guarantees, indices or rates used to determine lease
payments, or changes in the assessment or exercise of purchase, extension, or termination options,
the Company remeasures the lease liability based on the present value of the revised lease
payments and adjusts the carrying amount of the right-of-use asset accordingly.
(4) Accounting treatment with the Company as lessor
At the commencement date of the lease, leases that transfer substantially all the risks and rewards
incidental to ownership of the leased asset are classified as finance leases by the Company, with
all other leases classified as operating leases.
① Operating leases
For each period of the lease term, the Company adopts the straight-line method to recognize the
lease receipts of the operating lease as rental income; the Company capitalizes the initial direct
expenses, amortizes them over the lease term on the same basis as that for the recognition of the
rental income, and includes them in current profits and losses. by stage. Variable lease payments
relating to operating leases that are not included in lease receivables are recognized in current
profits and losses when received.
② Finance lease
At the commencement date of the lease, the Company recognizes finance lease receivables at the
net investment in the lease, which is the sum of the present value of lease payments not yet
received at the commencement date and any unguaranteed residual value, discounted using the
interest rate implicit in the lease, and derecognizes the leased asset. Over the lease term, the
Company calculates and recognizes interest income based on the interest rate implicit in the lease.
Variable lease payments not included in the measurement of the net investment in the lease are
recognized in current profits and losses when received.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(5) Accounting treatment for lease modifications
① Lease modification treated as a separate lease
If a lease is modified and both of the following conditions are met, the Company accounts for the
modification as a separate lease: A. The modification increases the scope of the lease by adding
the right to use one or more additional assets; B. The increase in consideration is commensurate
with the stand-alone price for the increase in scope, adjusted for the terms of the contract.
② Lease modification not treated as a separate lease
A. The Company acting as a lessee
On the effective date of the modification, the Company determines the lease term of the modified
lease and remeasures the lease liability by discounting the revised lease payments using a revised
discount rate. The present value of the modified lease payments is discounted using the interest
rate implicit in the lease for the remaining lease term. If the interest rate implicit in the lease for
the remaining term cannot be determined, the Company uses its incremental borrowing rate at the
effective date of the modification.
The effect of the above lease liability adjustment is accounted for as follows:
If the lease modification decreases the scope of the lease or shortens the lease term, the carrying
amount of the right-of-use asset is reduced, and any gain or loss arising from partial or full
termination of the lease is recognized in profit or loss.
For other lease modifications, the carrying amount of the right-of-use asset is adjusted
accordingly.
B. The Company acting as a lessor
For modifications of operating leases, the Company accounts for the lease as a new lease from the
effective date of the modification. Any lease payments received or receivable related to the
original lease are treated as payments under the new lease.
For modifications of finance leases not treated as separate leases, the Company accounts for the
modified lease as follows: If the lease would have been classified as an operating lease had the
modification been in effect at the lease commencement date, the Company treats it as a new lease
from the effective date of the modification and uses the net investment in the lease immediately
before the modification as the carrying amount of the underlying asset. If the lease would have
been classified as a finance lease had the modification been in effect at the lease commencement
date, the Company accounts for it in accordance with the accounting policies for lease
modifications or renegotiated contracts.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(6) Sale and leaseback
The Company assesses whether the transfer of an asset in a sale and leaseback transaction
qualifies as a sale in accordance with Note III. 29.
①The Company as seller (lessee)
If the transfer of the asset in a sale and leaseback transaction does not qualify as a sale, the
Company will continue to recognize the transferred asset and recognizes a financial liability equal
to the transfer proceeds. The financial liability is accounted for in accordance with Note III. 11. If
the asset transfer is a sale, the Company will measure the right-of-use assets formed by the sale
and leaseback based on the portion of the original asset’s carrying amount that is related to the use
right acquired by the leaseback, and recognize related gains or losses only for the right transferred
to the lessor.
② The Company as buyer (lessor)
If the transfer of the asset in a sale and leaseback transaction does not qualify as a sale, the
Company will not recognize the transferred asset but recognizes a financial asset equal to the
transfer proceeds. The financial asset is accounted for in accordance with Note III. 11. If the
transfer of the asset qualifies as a sale, the company accounts for the purchase of the asset in
accordance with other applicable accounting standards and accounts for the lease of the asset.
If one party controls, commonly controls or exerts a significant influence on the other party, and
two or more parties are under the control, common control or significant influence of the other
party, they constitute related parties. Enterprises that are solely controlled by the state and do not
have any other related party relationship shall not be deemed as related parties.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(1) Classification of hedges
The Company classifies hedges into fair value hedges, cash flow hedges, and hedges of net
investments in foreign operations.
① A fair value hedge is a hedge of the exposure to changes in the fair value of a recognized asset
or liability, an unrecognized firm commitment, or an identified component of such items. The
change in fair value arises is attributable to a specific risk and will affect the Company’s profit or
loss or other comprehensive income.
② A cash flow hedge is a hedge of the exposure to variability in cash flows. The variability in
cash flows is attributable to a specific risk associated with a recognized asset or liability, a highly
probable forecast transaction, or a component of such items, and will affect the Company’s profit
or loss.
③ A hedge of a net investment in a foreign operation is a hedge of the foreign exchange exposure
arising from a net investment in a foreign operation. The hedged risk in a hedge of a net
investment in a foreign operation is the foreign currency translation difference between the
functional currency of the foreign operation and that of the parent company.
(2) Hedging instruments and hedged items
Hedging instruments are financial instruments designated by the Company for hedging, whose
changes in fair value or cash flows are expected to offset changes in the fair value or cash flows of
the hedged items, including:
① Derivatives measured at fair value through profit or loss, except written options. Written
options can only be designated as hedging instruments when hedging purchased options, including
purchased options embedded in a hybrid contract. A derivative embedded in a hybrid contract that
has not been separated cannot be designated as a separate hedging instrument.
② Non-derivative financial assets or financial liabilities measured at fair value through profit or
loss, except for liabilities designated at fair value through profit or loss whose fair value changes
due to changes in the Company’s own credit risk are recognized in other comprehensive income.
Own equity instruments are neither financial assets nor financial liabilities and cannot be
designated as hedging instruments.
Hedged items are items that expose the Company to changes in fair value or cash flows, which are
designated as being hedged and can be reliably measured. The Company designates the following
individual items, groups of items, or portions thereof as hedged items:
① Recognized assets or liabilities.
② Unrecognized firm commitments. A firm commitment is a legally binding agreement to
exchange a specified quantity of resources at a predetermined price on a future date or over a
future period.
③ Highly probable forecast transactions. A forecast transaction is a transaction that has not yet
been committed to but is expected to occur.
④ Net investments in foreign operations.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(2) Hedging instruments and hedged items (Continued)
A component of the above items refers to parts smaller than the overall changes in fair value or
cash flows of the item. The Company designates the following components or combinations
thereof as hedged items:
① A component of the overall changes in fair value or cash flows of an item that is only
attributable to one or more specific risks (risk components). Based on an assessment in a specific
market environment, such risk components must be separately identifiable and reliably
measurable. Risk components also include components of the hedged item’s fair value or cash
flow changes that occur only above or below a specified price or other variable.
② One or more selected contractual cash flows.
③ A component of the nominal amount of an item refers to specified parts of the overall amount
or quantity of the item, which may be a certain proportion of the overall item (a proportionate
component) or a specified layer of the overall item (a layer component). If a layer component
includes a prepayment option and the fair value of the prepayment option is affected by changes in
the hedged risk, the layer must not be designated as a hedged item in a fair value hedge, except
where the effect of the prepayment option is already included in the measurement of the hedged
item’s fair value.
(3) Hedge relationship assessment
At the inception of a hedge relationship, the Company formally designates the hedge relationship
and prepares formal written documentation of the hedge relationship, risk management objectives,
how the Company will assess whether the hedging relationship meets the hedge effectiveness
requirements. The documentation specifies the hedging instrument, the hedged item, the nature of
the hedged risk, and the Company’s method for assessing hedge effectiveness. Hedge
effectiveness refers to the extent to which changes in the fair value or cash flows of the hedging
instrument offset changes in the fair value or cash flows of the hedged item arising from the
hedged risk. Such hedges are assessed on an ongoing basis to determine whether they continue to
meet the hedge effectiveness requirements at the initial designation date and in subsequent
periods.
If the hedging instrument expires or is sold, terminated or exercised (unless the rollover or
replacement of the hedging instrument is part of the documented hedging strategy), or if changes
in risk management objectives result in the hedge relationship no longer meeting the risk
management objectives, or if the economic relationship between the hedged item and the hedging
instrument ceases to exist, or if credit risk becomes the dominant factor in changes in the value of
the economic relationship between the hedged item and the hedging instrument, or if the hedge no
longer meets other conditions for hedge accounting, the Company discontinues the use of hedge
accounting.
If a hedge relationship no longer meets hedge effectiveness requirements due to the hedge ratio,
but the risk management objectives for which the hedge was designated remain unchanged, the
Company rebalances the hedge relationship.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(4) Recognition and measurement
When the conditions for applying hedge accounting are met, the following treatments are applied:
① Fair value hedge
Gain or loss on the hedging instrument shall be recognized in current profits and losses. If the hedging
instrument hedges a non-trading equity instrument (or a component thereof) that the Company has
designated to be measured at fair value through other comprehensive income, the hedging gain or loss
generated by the hedging instrument shall be recognized in other comprehensive income. Gain or loss
generated by the hedged item due to the hedged risk exposure shall be recognized in profit or loss and shall
adjust the carrying amount of the recognized hedged item that is not measured at fair value. If the hedged
item is a non-trading equity instrument (or a component thereof) designated at fair value through other
comprehensive income, gains or losses arising from the hedged risk shall be recognized in other
comprehensive income. Since the carrying amount of the hedged item is already measured at fair value, no
adjustment is required.
For a fair value hedge of a financial instrument (or a component thereof) measured at amortized cost,
adjustments to the carrying amount of the hedged item shall be amortized using the effective interest rate
recalculated at the commencement date of amortization and recognized in current profits and losses. This
amortization can commence from the adjustment date, but not later than the time when the hedging gain or
loss adjustment is made for the termination of the hedged item. If the hedged item is a financial asset (or a
component thereof) measured at fair value through other comprehensive income, the cumulative recognized
hedging gain or loss shall be amortized in the same manner and recognized in the profit or loss, but the
carrying amount of the financial asset (or a component thereof) shall not be adjusted.
When a hedged item represents a defined commitment that has not been unrecognized (or a component
thereof), the cumulative change in the fair value of the hedged item subsequent to its designation caused by
the hedge relationship is recognized as an asset or a liability with a gain or loss recognized in current profits
and losses. When a defined commitment is made to acquire an asset or assume a liability, the initial carrying
amount of the asset or the liability should be adjusted to include the cumulative change in the fair value of
the hedged item that has been recognized.
② Cash flow hedges
The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge shall be
recognized in other comprehensive income as a cash flow hedge reserve, while the portion is determined to
be an ineffective hedge (i.e., other gain or loss after deducting that recognized in other comprehensive
income) shall be recognized in current profits and losses. The amount of cash flow hedging reserves shall be
determined based on the lower of the absolute amount of the following two items: 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.
If a hedged forecast transaction subsequently results in the recognition of a non-financial asset or non-
financial liability, or a hedged forecast transaction for a non-financial asset or non-financial liability
becomes a defined commitment for which fair value hedge accounting is applied, the amount previously
recognized in the cash flow hedge reserve in other comprehensive income shall be reclassified and included
in the initial cost of the asset or liability. For cash flow hedges other than those covered above, the amount in
the cash flow hedge reserve previously recognized in other comprehensive income shall be reclassified to
profit or loss in the same period or in the period in which the hedged expected future cash flows affect profit
or loss.
③ Hedges of a net investment in a foreign operation
For hedges of a net investment in a foreign operation, the portion of the gain or loss on the hedging
instrument that is determined to be an effective hedge shall be recognized in other comprehensive income.
The portion of the gain or loss on the hedging instrument that is determined to be an ineffective hedge shall
be recognized in current profits and losses. Upon disposal of all or part of the foreign operation, the gain or
loss on the hedging instrument recognized in other comprehensive income shall be reclassified and
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
recognized in current profits and losses.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
The Company continuously evaluates the significant accounting estimates and key assumptions
used, based on historical experience and other factors, including reasonable expectations of future
events. The significant accounting estimates and key assumptions that could result in a material
adjustment to the carrying amounts of assets and liabilities in the next financial year are as
follows:
Measurement of expected credit losses on accounts receivable
The Company measures expected credit losses on accounts receivable based on the exposure at
default and the expected loss rate, the latter of which is determined based on the probability of
default and loss given default. In determining the expected loss rate, the Company uses internal
historical credit loss experience and other data, adjusted for current conditions and forward-
looking information. When considering forward-looking information, the Company takes into
account indicators such as the risk of economic downturn, changes in external market conditions,
technological environment, and customer circumstances. The Company regularly monitors and
reviews the assumptions related to the calculation of expected credit losses.
Provision for depreciation of inventories
Provision for depreciation of inventories is recognized based on the estimated net realizable value
of inventories. The assessment of this provision involves management judgment and estimation. If
actual circumstances or future expectations differ from the original estimates, the resulting
difference will affect the carrying amount of the inventories and the reversal/write-off of the
provision in the period in which the estimate is revised.
Development expenditures
When determining the amount to be capitalized, management must make assumptions regarding
the generation of future cash flows to be generated by the asset, the discount rate adopted, and the
expected useful life.
Goodwill impairment
The Company assesses goodwill for impairment at least annually. This requires an estimation of
the value in use of the cash-generating units to which goodwill has been allocated. In estimating
the value in use, the Company estimates the future cash flows derived from the cash-generating
units and discounts them using an appropriate discount rate to calculate the present value of those
cash flows.
Deferred income tax assets
Deferred income tax assets are recognized for all unused tax losses to the extent that it is probable
that sufficient taxable profits will be available to utilize those losses. This requires significant
management judgment to estimate the timing and amount of future taxable profits, combined with
tax planning strategies, to determine the amount of deferred tax assets to be recognized.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
III Significant accounting policies and accounting estimates (Continued)
(1) Change in accounting policies
(a) Impact of Adopting Interpretation No. 19 on Accounting Standards for Business Enterprises
On December 5, 2025, the Ministry of Finance (MOF) issued Interpretation No. 19 on Accounting
Standards for Business Enterprises (Caikuai [2025] No. 32, "Interpretation No. 19"), which took
effect on January 1, 2026. The Company adopted Interpretation No. 19 effective January 1, 2026.
The adoption of this interpretation had no material impact on the Company's financial statements
for the Reporting Period.
(b) Impact of Adopting Interpretation No. 20 on Accounting Standards for Business Enterprises
On June 4, 2026, the MOF issued Interpretation No. 20 on Accounting Standards for Business
Enterprises (Caikuai [2026] No. 7, "Interpretation No. 20"), which took effect upon issuance. For
new transactions or events specified in this Interpretation occurring between January 1, 2026 and
the effective date of Interpretation No. 20, enterprises shall make adjustments in accordance with
this Interpretation. The Company adopted Interpretation No. 20 on June 4, 2026 (the "Effective
Date"), and made retrospective adjustments for new relevant transactions or events occurring
between January 1, 2026 and the Effective Date. The adoption of this interpretation had no
material impact on the Company's financial statements for the Reporting Period.
(2) Changes to accounting estimates
The Company had no significant change in accounting estimates during the Reporting Period.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
IV Taxes
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.
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.
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.
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.
According to Article 28 of the Enterprise Income Tax Law of the People's Republic of China, a
reduced corporate income tax rate of 15% is applied to important high-tech enterprises requiring
state supports.
According to the relevant provisions of the Announcement on the Preferential Income Tax
Policies for Small and Micro Enterprises and Self-employed Businesses (Announcement No. 6
[2023] of the Ministry of Finance and the State Taxation Administration) and the Announcement
of the Ministry of Finance and the State Taxation Administration on Tax Policies for Further
Supporting the Development of Small and Micro Enterprises and Self-employed Businesses
(Announcement No. 12 [2023] of the Ministry of Finance and the State Taxation
Administration), issued by the Ministry of Finance and the State Taxation Administration in
profit enterprises not exceeding RMB 1 million will be included in the taxable income at a
reduced rate of 25%, and the enterprise income tax will be paid at the rate of 20%.
Except for the following subsidiaries entitling to preferential tax treatment and the overseas
subsidies that adopt local applicable tax rate, other entities under the Company are subject to the
applicable tax rate of 25%, or the preferential tax rate for small and micro enterprises.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
IV Taxes (Continued)
Subsidiaries entitled to tax preferences:
Preferential
Company name Reason
tax rate
TCL China Star Optoelectronics Technology Co.,
Ltd.
Wuhan China Star Optoelectronics Technology
Co., Ltd.
Shenzhen China Star Optoelectronics Bandaoti
Display Technology Co., Ltd.
Wuhan China Star Optoelectronics Bandaoti
Display Technology Co., Ltd.
Guangzhou China Star Optoelectronics Bandaoti
Display Technology Co., Ltd.
Suzhou China Star Optoelectronics Technology
Co., Ltd.
Guangzhou China Star Optoelectronics
Technology Co., Ltd.
China Display Optoelectronics Technology
(Huizhou) Co., Ltd.
Shenzhen TCL High-Tech Development Co., Ltd. 15.00% High-tech enterprise
TCL Financial Technology (Shenzhen) Co., Ltd. 15.00% High-tech enterprise
Tianjin Huanou New Energy Technology Co., Ltd 15.00% High-tech enterprise
Tianjin Huanzhi New Energy Technology Co., Ltd. 15.00% High-tech enterprise
Huansheng New Energy (Jiangsu) Co., Ltd. 15.00% High-tech enterprise
Tianjin Zhonghuan Advanced
Material&Technology Co., Ltd.
Zhonghuan Advanced Bandaoti Technology Co.,
Ltd.
Zhonghuan Advanced (Xuzhou) Bandaoti Material
Co., Ltd.
Tianjin Huanbo Science and Technology Co., Ltd. 15.00% High-tech enterprise
Techigh Circuit Technology (Huizhou) Co., Ltd. 15.00% High-tech enterprise
Tianjin Printronics Circuit Corporation 15.00% High-tech enterprise
Inner Mongolia Zhonghuan Crystal Materials Co., High-tech enterprises and the Western China
Ltd. Development Initiative
Inner Mongolia Zhonghuan Solar Material Co., High-tech enterprises and the Western China
Ltd. Development Initiative
Inner Mongolia Zhonghuan Advanced Bandaoti High-tech enterprises and the Western China
Material Co., Ltd. Development Initiative
Suzhou China Star Environmental Protection Eligible third-party enterprises engaged in pollution
Technology Co., Ltd. prevention and control
Dangxiong Youhao New Energy Development
Co., Ltd.
Shaanxi Huanshuo Green New Energy Co., Ltd. 15.00% Western China Development Initiative
Western China Development Initiative and the
Ningxia Huanou New Energy Technology Co.,
Ltd. preferential treatment on the local portion of enterprise
income tax
Western China Development Initiative, the "three‑ year
Ningxia Zhonghuan Solar Material Co., Ltd. 9.0% exemption and three‑ year 50% reduction" preferential
treatment on the local portion of enterprise income tax,
and high-tech enterprise
Shaanxi Runhuan Tianyu Technology Co., Ltd. 7.5% The "three‑ year exemption and three‑ year 50%
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
reduction" and the Western China Development Initiative
Shenzhen Zhixian Shijie Software Technology Co., The "two-year exemption and three-year 50% reduction"
Tax-exempt
Ltd. policy for software enterprises
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
IV Taxes (Continued)
Preferential
Company name Reason
tax rate
Tianjin Huan'ou Bandaoti Material&Technology High-tech enterprise
Co., Ltd.
Sunite Left Banner Huanxin New Energy Co., Ltd. 15.00% Western China Development Initiative
Tuquan County Guanghuan New Energy Co., Ltd. 15.00% Western China Development Initiative
The "three-year exemption and three-year 50%
Ningxia Hongyuan New Energy Co., Ltd. Tax-exempt reduction" policy and the Western China Development
Initiative
Zhangjiakou Shengming New Energy Co., Ltd. Tax-exempt Three‑ year exemption and three‑ year 50% reduction
Shaanxi Huanbo New Energy Power Engineering Three‑ year exemption and three‑ year 50% reduction
Tax-exempt
Construction Co., Ltd.
Hohhot Dishengsheng New Energy Co., Ltd. Tax-exempt Three‑ year exemption and three‑ year 50% reduction
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements
June 30, 2026 December 31, 2025
Cash on hand 553 418
Bank deposits 21,082,668 26,293,409
Deposits with the central bank 301,918 367,683
Other monetary assets 1,764,482 3,798,550
Note Monetary assets with restricted use rights
June 30, 2026 December 31, 2025
TCL Tech Finance's statutory reserve deposits with
the central bank
Other restricted monetary assets 629,108 3,467,238
As at June 30, 2026, the Company’s bank deposits of RMB 296,012,000 (December 31, 2025: RMB
Group Finance Co., Ltd., a subsidiary of the Company.
As at June 30, 2026, the Company’s monetary assets offshore amounted to RMB 3,044,649,000
(December 31, 2025: RMB 2,710,168,000), all of which were owned by the overseas subsidiaries of
the Company.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
June 30, 2026 December 31, 2025
Financial assets classified as those measured at fair value
through profit or loss
Including: Debt instrument investments 18,341,096 14,454,252
Equity instrument investments 9,575 18,941
June 30, 2026 December 31, 2025
Foreign exchange forwards and foreign exchange swaps 25,350 78,957
(1) Notes receivable by category
June 30, 2026 December 31, 2025
Bank acceptance 634,287 377,126
Trade acceptance 50 103,099
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
(2) Presentation of bad-debt allowance for notes receivable by category
June 30, 2026 December 31, 2025
Bad-debt Bad-debt
Gross amount Allowance Carrying Gross amount Allowance Carrying
Accrual amount Accrual amount
Amount Ratio Amount Amount Ratio Amount
Ratio Ratio
Notes receivable for
which bad-debt allowance
were established on the
grouping basis
Including: low-risk
portfolio
(3) As at June 30, 2026, notes receivable in pledge were RMB 100,000.
June 30, 2026 December 31, 2025
Accounts receivable 20,351,042 22,579,657
Less: Bad-debt allowance 368,956 426,654
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
Accounts receivable classified by loss allowance provision method as at June 30, 2026 are as
(1)
follows:
June 30, 2026 December 31, 2025
Bad-debt Bad-debt
Gross amount Allowance Carrying Gross amount Allowance Carrying
Category
Accrual amount Accrual amount
Amount Ratio Amount Amount Ratio Amount
Ratio Ratio
Allowances
for bad debts
accrued on an 163,916 0.81% 151,145 92.21% 12,771 217,809 0.96% 189,792 87.14% 28,017
individual
basis
Provision for
impairment
based on
portfolio of 20,187,126 99.19% 217,811 1.08% 19,969,315 22,361,848 99.04% 236,862 1.06% 22,124,986
credit risk
characteristic
s
(2) Aging analysis of accounts receivable is as follows:
June 30, 2026 December 31, 2025
Amount Ratio Amount Ratio
Within 1 year 18,600,004 91.40% 20,832,958 92.26%
Over 3 years 1,140,329 5.60% 817,353 3.62%
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
(3) Bad-debt allowances for accounts receivable are analyzed as follows:
June 30, 2026
Beginning amount 426,654
New subsidiary 25,187
Accrued in the period 63,854
Reversal of current period (70,482)
Write-off of current period (75,403)
Others (854)
Ending amount 368,956
(4) As at June 30, 2026, the accounts receivable and contract assets of the top five balances are as
follows:
June 30, 2026
Total amount of the accounts receivable and contract assets of the
top five balances
As a percentage of the total amount of accounts receivable and
contract assets
(5) Accounts receivable derecognized due to transfer of financial assets
Methods of transfer of Amount derecognized for Gain or loss
Item
financial assets the period on derecognition
Accounts Factoring without
receivable recourse
June 30, 2026 December 31, 2025
Notes receivable financing 182,602 383,247
Receivable financing 345,884 242,542
As at June 30, 2026, the receivables financing that had been endorsed or discounted, remained outstanding,
and was derecognized amounted to RMB 6,398,449,000.
As at June 30, 2026, the Company considers that the receivables financing did not have material credit risk
and would not result in material losses due to default.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
(1) Prepayments are analyzed as follows:
June 30, 2026 December 31, 2025
Within 1 year 2,414,040 1,363,244
Over 3 years 125,574 32,637
(2) As at June 30, 2026, the prepayments of the top five balances are as follows:
June 30, 2026
Total amount owed by the top five 1,452,415
As % of total prepayments 49.10%
June 30, 2026 December 31, 2025
Dividends receivable 18,464 424,441
Other receivables 2,967,519 3,076,182
(1) Dividends receivable
June 30, 2026 December 31, 2025
Xinjiang Goens Energy Technology
- 444,597
Co., Ltd.
Others 18,464 -
Less: Bad-debt allowance - 20,156
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
(1) Dividends receivable (Continued)
(a) Presentation of bad-debt allowance for dividends receivable by category
June 30, 2026 December 31, 2025
Bad-debt Bad-debt
Gross amount Allowance Carrying Gross amount Allowance Carrying
Accrual amount Accrual amount
Category Amount Ratio Amount Amount Ratio Amount
Ratio Ratio
Allowances for
bad debts
accrued on an
individual basis
(2) Other receivables
June 30, 2026 December 31, 2025
Other receivables 3,370,569 3,513,209
Less: Bad-debt allowance 403,050 437,027
(a) Nature of other receivables is analyzed as follows:
June 30, 2026 December 31, 2025
Security and deposits 786,302 584,936
Subsidy receivables 511,955 1,355,862
Equity transfer receivables 235,950 251,016
Others 1,433,312 884,368
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
(2) Other receivables (Continued)
(b) Presentation of bad-debt allowance for other receivables by category
June 30, 2026 December 31, 2025
Bad-debt Bad-debt
Gross amount Allowance Carrying Gross amount Allowance Carrying
Category
Accrual amount Accrual amount
Amount Ratio Amount Amount Ratio Amount
Ratio Ratio
Allowances
for bad debts
accrued on 470,327 13.95% 375,590 79.86% 94,737 583,773 16.62% 413,344 70.81% 170,429
an individual
basis
Allowances
for bad debts
accrued on a 2,900,242 86.05% 27,460 0.95% 2,872,782 2,929,436 83.38% 23,683 0.81% 2,905,753
portfolio
basis
(c) Allowance for doubtful other receivables is analyzed as follows:
Lifetime ECL Lifetime ECL
impaired) impaired)
December 31, 2025 29,717 - 407,310 437,027
Current accrual 9,602 - - 9,602
Addition of new
subsidiaries
Reversal of current
(6,454) - - (6,454)
period
Write-off of current
(76) - (12,872) (12,948)
period
Others (24) - (32,895) (32,919)
June 30, 2026 33,882 - 369,168 403,050
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
(d) The aging of other receivables is analyzed as follows:
June 30, 2026 December 31, 2025
Carrying amount Ratio Carrying amount Ratio
Within 1 year 1,909,993 56.67% 1,638,345 46.64%
Over 3 years 769,504 22.83% 679,021 19.33%
(e) As at June 30, 2026, the other receivables of the top five balances are as follows:
June 30, 2026
Total amount owed by the top five 1,423,823
As % of total other receivables 42.24%
(f) As at June 30, 2026, there was no transfer of other receivables that did not conform to the conditions for
derecognition in the balance of this account; no transaction arrangement for asset securitization with other
receivables as the subject asset; and no financial instrument that was the subject of securitization and did not
conform to the conditions for derecognition.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
(1) Inventories are classified as follows:
June 30, 2026 December 31, 2025
Provision for Provision for
depreciation depreciation
of inventories of inventories
Gross / provision for Carrying Gross / provision for Carrying
amount impairment of amount amount impairment of amount
contract contract
performance performance
costs costs
Raw
materials
Work in
progress
Finished
Goods
Turnover
materials
As at June 30, 2026, the Company had no inventory for liabilities guarantee.
(2) Provision for depreciation of inventories/provision for impairment of contract performance costs:
Reversal and
Accrued in Other
December 31, 2025 write-off in the June 30, 2026
the period changes
period
Raw
materials
Work in
progress
Inventory of
goods
Turnover
materials
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
(1) Contract assets are classified as follows:
June 30, 2026 December 31, 2025
Gross Impairment Carrying Gross Impairment Carrying
amount allowance amount amount allowance amount
Contract
assets
(2) Valuation allowances for contract assets are analyzed as follows:
Reversal or
Accrued in Other increases
December 31, 2025 write-off in June 30, 2026
the period and decreases
the period
Contract
assets
June 30, 2026 December 31, 2025
Other non-current assets due within one year 1,530,000 1,557,992
Debt investments due within one year 6,827 6,953
June 30, 2026 December 31, 2025
VAT to be deducted, to be certified, etc. 7,756,622 8,126,701
Others 395,353 284,923
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
June 30, 2026 December 31, 2025
Treasury bonds and corporate bonds 574,650 578,159
June 30, 2026 December 31, 2025
Gross Bad-debt Carrying Gross Bad-debt Carrying
amount Allowance amount amount Allowance amount
Others 94,730 - 94,730 120,628 - 120,628
June 30, 2026 December 31, 2025
Gross Impairment Carrying Gross Impairment Carrying
amount allowance amount amount allowance amount
Associate 23,858,537 19,968 23,838,569 22,966,147 20,022 22,946,125
Joint venture 435,644 49,503 386,141 452,571 49,503 403,068
As at June 30, 2026, the Company made impairment allowances for long-term equity investments in
investees with poor management and insolvent assets. In addition, there was no significant restriction on the
realization of investment and the remittance of return on long-term equity investment.
For January - June 2026, the movement in provision for impairment of long-term equity investments of the
Group arose from the effect of foreign currency translation.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
(1) Changes in long-term equity investments for the year
Net profits Balance of
Increase/d Cash
or losses Other Provisio impairment
December 31, ecrease in dividends or June 30, 2026
adjusted comprehens Other equity n for provision as
Investees 2025 (carrying investment profit Others (carrying
under the ive changes impairm of June 30,
amount) in current distribution amount)
equity income ent 2026
period declared
method
Joint venture 403,068 345 (13,736) - 493 (4,029) - - 386,141 49,503
Associate
Inner Mongolia
Xinhuan Silicon
Energy Technology
Co., Ltd.
Aijiexu New
Electronic Display
Glass (Shenzhen) Co.,
Ltd.
Others 20,669,785 (60,433) 1,391,986 28,380 (11,471) (448,979) - (1,131) 21,568,137 19,968
Total of associates 22,946,125 (60,433) 1,386,078 28,380 (11,471) (448,979) - (1,131) 23,838,569 19,968
Total 23,349,193 (60,088) 1,372,342 28,380 (10,978) (453,008) - (1,131) 24,224,710 69,471
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
June 30, 2026 December 31, 2025
Stocks 13,754 18,427
Equity of unlisted companies 162,538 338,029
Reasons designated as
Amount of other
Recognize measured at fair value and
Cumulative Cumulative comprehensive
Item name d dividend whose changes are
gains losses income transferred
revenue included in other
to retained earnings
comprehensive income
Being held long-term for
(44) 3,517 (191,035) -
Stocks strategic purposes
Equity of unlisted Being held long-term for
- 156,787 (173,397) -
companies strategic purposes
Total (44) 160,304 (364,432) -
June 30, 2026 December 31, 2025
Equity investments 4,561,038 3,172,659
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
Houses and buildings Land use rights Total
Gross amount:
December 31, 2025 502,972 108,859 611,831
Increase during the year 35,196 - 35,196
Decrease during the year - (281) (281)
June 30, 2026 538,168 108,578 646,746
Accumulated depreciation
and amortization:
December 31, 2025 174,313 34,737 209,050
Current accrual 14,067 1,117 15,184
Other increases 354 - 354
June 30, 2026 188,734 35,854 224,588
Investment properties,
net:
June 30, 2026 349,434 72,724 422,158
December 31, 2025 328,659 74,122 402,781
Impairment allowance:
Beginning amount 908 - 908
Ending amount 908 - 908
Investment properties,
net:
June 30, 2026 348,526 72,724 421,250
December 31, 2025 327,751 74,122 401,873
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
Office and
Houses and Machinery Transportation Power
electronic Others Total
buildings equipment equipment stations
equipment
Gross amount:
December 31, 2025 68,377,362 280,380,262 4,247,557 373,147 2,225,213 1,434,729 357,038,270
Increase during the
year
Acquisition and
other
Reclassified from
construction in 146,530 3,647,641 50,830 6,018 - 5,718 3,856,737
progress
New subsidiary 2,565,938 2,275,645 9,967 1,883 - 540,032 5,393,465
Other increases 51,582 1,168,229 92,954 9 4,587 41,907 1,359,268
Decrease during the
year
Reduced
(205,811) (532,929) (246,921) - - - (985,661)
subsidiary
Disposals,
write‑ offs, and (392,603) (2,858,074) (31,078) (10,160) - - (3,291,915)
others
June 30, 2026 70,544,411 284,905,235 4,183,053 373,367 2,229,800 2,026,972 364,262,838
Accumulated
depreciation:
December 31, 2025 17,428,933 167,554,409 3,072,394 272,418 716,434 419,902 189,464,490
Increase during the
year
Accrual 1,286,498 12,205,188 165,584 20,181 27,510 48,195 13,753,156
New subsidiary 241,263 995,506 8,136 958 - 198,521 1,444,384
Other increases 20,578 628,689 3,768 6 - - 653,041
Decrease during the
year
Reduced
(11,249) (26,245) (192,057) - - - (229,551)
subsidiary
Disposals,
write‑ offs, and (20,640) (754,685) (28,202) (5,632) - (166) (809,325)
others
June 30, 2026 18,945,383 180,602,862 3,029,623 287,931 743,944 666,452 204,276,195
Fixed assets, net:
June 30, 2026 51,599,028 104,302,373 1,153,430 85,436 1,485,856 1,360,520 159,986,643
December 31, 2025 50,948,429 112,825,853 1,175,163 100,729 1,508,779 1,014,827 167,573,780
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
Office and
Houses and Machinery Transportation Power
electronic Others Total
buildings equipment equipment stations
equipment
Impairment
allowance:
December 31, 2025 969,118 1,442,967 58,946 128 99,465 - 2,570,624
Current accrual 244,947 - - - - - 244,947
Other increases - 100,861 77 - - 36,604 137,542
Reduced subsidiary (155,524) (506,297) (29,070) - - - (690,891)
June 30, 2026 1,058,541 1,037,531 29,953 128 99,465 36,604 2,262,222
Fixed assets,
carrying amount:
June 30, 2026 50,540,487 103,264,842 1,123,477 85,308 1,386,391 1,323,916 157,724,421
December 31, 2025 49,979,311 111,382,886 1,116,217 100,601 1,409,314 1,014,827 165,003,156
Please refer to Note V.28 for information on fixed assets pledge.
Fixed assets with pending ownership certificates at the end of the current period:
Reasons for pending ownership
Carrying amount
certificates
Houses and buildings
(Note) 9,740,968 In process
N As at June 30, 2026, the fixed assets for which the certificates of title have not been completed are mainly the houses and
ot buildings of Huaxing Production Bases t3 and t5, as well as the houses and buildings of Inner Mongolia Zhonghuan
e Advanced Bandaoti Material Co., Ltd., Inner Mongolia Zhonghuan Crystal Materials Co., Ltd. and Tianjin Zhonghuan
Advanced Material&Technology Co., Ltd.
(1) Schedule of construction in progress
June 30, 2026 December 31, 2025
Construction in progress 19,275,805 16,560,203
Less: Impairment allowance 441,601 383,355
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
___________(RMB’000)_____________
V Notes to Consolidated Financial Statements (Continued)
(2) Changes to construction in progress
Construction in Accumulated Including: Interest
investment in the Cumulative
December 31, Increase in current progress Other Project capitalized capitalization
Project name Budget June 30, 2026 project capitalized Funding source
interest
assets as % of budget current period period
t9 production line of LCD Under Self-funded and raised
panel construction funds
Phase I project of generation
Under
construction
production line at TCL CSOT
Under Self-funded and raised
Solar power station projects 6,948,950 2,550,740 296,584 (24,071) - 2,823,253 65% 288,129 76,962 2.55%-3.60%
construction funds
Large-diameter silicon wafers Under Self-funded and raised
for integrated circuits construction funds
Expansion project of silicon Under Self-funded and raised
wafers for integrated circuits construction funds
Silicon wafers for integrated Under Self-funded and raised
circuits construction funds
Highly-efficient imbricate Under Self-funded and raised
module G12 project construction funds
Production line of 8-12-inch
Under Self-funded and raised
silicon wafers for integrated 5,862,432 616,091 47,601 (352,756) (10,120) 300,816 93% 11,116 401 2.8%
construction funds
circuits
Others Not applicable 7,602,528 2,380,364 (2,792,226) 918,939 8,109,605 Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
Houses and Transportation Machinery
Land use rights Total
buildings equipment equipment
Gross amount:
December 31, 2025 6,281,272 932 878,497 432,723 7,593,424
Increase
New subsidiary 13,068 - 15,357 - 28,425
Leased in 109,001 178 - 52,729 161,908
Other increases 8,619 - - 24,242 32,861
Decreases
Lease contract expiration (11,570) - - - (11,570)
Other decreases (2,424,817) (53) (19,823) - (2,444,693)
June 30, 2026 3,975,573 1,057 874,031 509,694 5,360,355
Accumulated depreciation:
December 31, 2025 851,072 705 373,402 76,218 1,301,397
Increase
Current accrual 131,455 136 55,645 30,106 217,342
New subsidiary 1,958 - 4,618 - 6,576
Decreases
Lease contract expiration (11,570) - - - (11,570)
Other decreases (451,166) (32) - - (451,198)
June 30, 2026 521,749 809 433,665 106,324 1,062,547
Right-of-use assets, carrying
amount:
June 30, 2026 3,453,824 248 440,366 403,370 4,297,808
December 31, 2025 5,430,200 227 505,095 356,505 6,292,027
Impairment allowance:
December 31, 2025 102,853 - - - 102,853
Current accrual - - - - -
Write-off of current year (102,853) - - - (102,853)
June 30, 2026 - - - - -
Right-of-use assets, carrying
amount:
June 30, 2026 3,453,824 248 440,366 403,370 4,297,808
December 31, 2025 5,327,347 227 505,095 356,505 6,189,174
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
Non-patent
Land use rights technology/ Others Total
patent right
Gross amount:
December 31, 2025 11,397,185 17,097,997 3,694,199 32,189,381
Increase
New subsidiary 170,232 1,635 189,392 361,259
Purchase 121,349 140,942 27,319 289,610
Others 281 105,863 46,457 152,601
Decreases
Disposals, write-offs, and
(362,306) (49,321) (28,887) (440,514)
other decreases
June 30, 2026 11,326,741 17,297,116 3,928,480 32,552,337
Accumulated amortization:
December 31, 2025 1,909,797 9,563,084 2,013,317 13,486,198
Increase
Accrual 153,605 658,245 170,575 982,425
New subsidiary 15,298 12 24,820 40,130
Decreases
Disposals, write-offs, and (48,717) (21,431) (534) (70,682)
other decreases
June 30, 2026 2,029,983 10,199,910 2,208,178 14,438,071
Intangible assets, net:
June 30, 2026 9,296,758 7,097,206 1,720,302 18,114,266
December 31, 2025 9,487,388 7,534,913 1,680,882 18,703,183
Impairment allowance:
December 31, 2025 88,159 113,726 33,988 235,873
Others - (1,091) - (1,091)
June 30, 2026 88,159 112,635 33,988 234,782
Intangible assets, carrying
amount:
June 30, 2026 9,208,599 6,984,571 1,686,314 17,879,484
December 31, 2025 9,399,229 7,421,187 1,646,894 18,467,310
Please refer to Note V.28 for information on collateralized intangible assets.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
Development expenditures are presented as follows:
June 30, 2026 December 31, 2025
Display 756,800 963,087
New energy photovoltaics and other silicon
materials
(1) Gross amount of goodwill
Increase in Decrease in
Name of investee or matter
December 31, 2025 current current June 30, 2026
forming goodwill
period period
TCL Technology Group
(Tianjin) Co., Ltd.
Moka International Limited 1,733,665 - - 1,733,665
Xinxin Bandaoti Technology
Co., Ltd.
Maxeon Solar Technologies,
Ltd.
Guangzhou China Star
Optoelectronics Technology 827,544 - - 827,544
Co., Ltd.
Fuzhou Huazhao
- 26,425 - 26,425
Optoelectronics Co., Ltd.
Hunan Chuangke Photoelectrics
- 42,604 - 42,604
Co., Ltd.
Others 974,383 - - 974,383
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
(2) Goodwill impairment allowance
Increase in
current Decrease in
Name of investee December 31, 2025 period current period June 30, 2026
Maxeon Solar Technologies, Ltd. 1,454,829 - (1,454,829) -
Others 31,978 - - 31,978
Increase in
Amortization in
December 31, 2025 current Others June 30, 2026
the period
period
Improvement expense 664,164 176,164 (99,400) 442 741,370
Others 1,618,719 1,204,410 (871,135) (16,992) 1,935,002
(1) Un-offset deferred income tax assets
June 30, 2026 December 31, 2025
Deductible Deductible
Deferred tax Deferred tax
temporary temporary
assets assets
difference difference
Deductible losses 27,850,797 3,967,743 31,410,984 4,619,028
Asset impairment
allowances
Provisions 4,306,868 661,920 1,628,857 190,566
Changes in fair value 107,834 23,900 28,246 4,739
Lease liabilities 3,985,217 457,143 6,656,326 686,252
Others 7,066,312 1,240,583 5,682,436 1,228,711
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
(2) Un-offset deferred income tax liabilities
June 30, 2026 December 31, 2025
Taxable Deferred Taxable Deferred
temporary income tax temporary income tax
differences liabilities differences liabilities
Depreciation of fixed assets 22,157,383 3,371,830 25,700,461 3,908,598
Increase in value of assets as
assessed in business
combination not involving
entities under common control
Right-of-use assets 4,297,808 499,952 6,189,174 748,587
Changes in fair value 1,470,342 350,481 774,485 180,214
Others 125,593 16,450 701,195 142,165
(3) Deferred income tax assets or liabilities presented on a net basis after offsetting
Amount subject to mutual offset of Closing balance of
Item deferred income tax assets against deferred income tax assets
liabilities at the end of the period or liabilities after offset
Deferred income tax assets (3,452,290) 3,273,398
Deferred income tax
(3,452,290) 1,588,589
liabilities
Amount subject to mutual offset of
deferred income tax assets against Beginning balance of
Item
liabilities at the beginning of the deferred income tax assets
period or liabilities after offset
Deferred income tax assets (4,210,127) 2,936,332
Deferred income tax
(4,210,127) 1,775,607
liabilities
(4) Unrecognized deferred income tax assets
June 30, 2026 December 31, 2025
Deductible temporary difference 4,213,183 4,760,267
Deductible losses 37,126,193 39,311,744
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
Deductible losses in respect of unrecognized deferred income tax assets will expire in the
(5)
following years
June 30, 2026 December 31, 2025
June 30, 2026 December 31, 2025
Impairment Carrying Impairment Carrying
Gross amount allowance amount Gross amount allowance amount
Other non-current
assets
Note Other non-current assets mainly include prepayments for equity, prepayments for engineering equipment, large-
amount fixed-income certificates of deposit and fixed-term deposits, etc., which are subsequently measured at
amortized cost.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
June 30, 2026 Reason for restriction
Gross carrying amount Carrying amount
Deposited in the central
Monetary assets 296,012 296,012 bank as the required
reserve
Other monetary assets
Monetary assets 629,108 629,108 and restricted bank
deposits
Notes receivable 100 100 In pledge
Fixed assets 56,567,654 34,758,632 As collateral for loan
Intangible assets 2,771,053 2,209,425 As collateral for loan
Held-for-trading
financial assets
Construction in progress 820,274 820,274 As collateral for loan
Accounts receivable 1,027,953 1,007,254 In pledge
Receivable financing 28,719 28,719 In pledge
Contract assets 173,955 156,292 In pledge
June 30, 2026 December 31, 2025
Unsecured borrowings 10,712,259 7,373,594
Borrowings secured by
pledge
Interests payable 12,548 27,352
As at June 30, 2026, the Company’s short-term pledged loans were equivalent to RMB 164,702,000, pledged
with held-for-trading financial assets equivalent to RMB 214,747,000.
As at June 30, 2026, the Company does not have any short-term borrowings that have expired and have not
been repaid.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
As of June 30, 2026, the balance of the borrowings of TCL Technology Group Finance Co., Ltd. (a subsidiary
of the Company) from the Central Bank was RMB 109,722,000 (December 31, 2025: RMB 29,756,000).
June 30, 2026 December 31, 2025
Customer deposits and deposits from other
banks and financial institutions
Customer deposits and deposits from banks and other financial institutions are the deposits of related and non-
related enterprises absorbed by TCL Technology Group Finance Co., Ltd., a subsidiary of the Company,
within the business scope approved by the regulatory authority.
June 30, 2026 December 31, 2025
Financial liabilities measured at fair value
through current profits and losses 237,565 235,717
June 30, 2026 December 31, 2025
Derivative financial liabilities 137,277 50,435
June 30, 2026 December 31, 2025
Bank acceptance notes 8,222,883 6,115,352
Trade acceptance notes 523,819 350,248
As at June 30, 2026, the Company had no notes payable that were due but not paid.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
June 30, 2026 December 31, 2025
Amounts due to suppliers 34,428,400 32,251,944
As at June 30, 2026, there were no significant accounts payable aged over one year.
June 30, 2026 December 31, 2025
Advances from customers 5,795 6,823
As at June 30, 2026, the Company had no significant advances from customers with an aging of more than
one year.
June 30, 2026 December 31, 2025
Advances from customers 1,994,629 2,009,842
As at June 30, 2026, the Company had no significant contract liability aged over one year.
(1) Employee compensation payable
June 30, 2026 December 31, 2025
Short-term employee benefits payable 4,003,385 4,923,490
Defined contribution plans payable 6,951 7,788
Dismissal benefits payable 26,451 35,210
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
(1) Employee compensation payable (Continued)
(a) Short-term employee benefits presented
Increase in Decrease in
December 31, 2025 current period current period June 30, 2026
Wages, bonuses,
allowances, and subsidies
Employee services and
- 274,599 (274,599) -
benefits
Social insurance benefits 27,680 212,454 (214,108) 26,026
Including: medical insurance
premium
Employment
injury insurance premiums
Maternity
insurance
Housing fund 16,707 207,447 (208,125) 16,029
Trade union funds and staff
education funds
Other employee salaries 9,087 7,986 (7,563) 9,510
(b) Defined contribution plans
Increase in Decrease in
current current
December 31, 2025 period period June 30, 2026
Basic pension insurance 7,543 431,180 (431,980) 6,743
Unemployment insurance 245 17,771 (17,808) 208
(2) Long-term employee compensation payable
June 30, 2026 December 31, 2025
Supplementary pension
insurance
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
June 30, 2026 December 31, 2025
Corporate income tax 359,733 516,085
Urban maintenance and construction tax 141,166 228,297
Value-added tax 134,879 52,591
Education surcharges 101,271 163,074
Individual income tax 47,181 55,338
Others 338,737 222,949
June 30, 2026 December 31, 2025
Dividends payable 282,143 48,249
Other payables 16,503,469 17,667,389
(1) Dividends payable
June 30, 2026 December 31, 2025
Other non-controlling interests 282,143 48,249
(2) Other payables
June 30, 2026 December 31, 2025
Payables for engineering equipment 10,150,908 11,584,251
Unpaid expenses 3,553,556 3,077,039
Security and deposits 320,782 555,385
Others 2,478,223 2,450,714
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
June 30, 2026 December 31, 2025
Maxeon to sell 100% equity of its
- 71,510
Malaysian subsidiary SPMIY
June 30, 2026 December 31, 2025
Long-term borrowings due within one year
(Note 1)
Bonds payable due within one year 45 - 3,706,995
Long-term payables due within one year 554,618 1,270,633
Interest payable due within one year 138,714 252,392
Lease liabilities due within one year 46 196,462 2,507,728
Long-term employee compensation payable due
within one year
Note 1 The interest rates of the Company’s long-term borrowing due within one year ranged from 2.1% to 3.0% in
the current period (2025: from 2.1% to 4.3%).
June 30, 2026 December 31, 2025
Short-term bonds 4,998,987 -
After-sales service fee of products (note) 1,396,148 1,383,990
Output tax to be transferred 149,058 172,922
Others 303,238 105,232
Note After-sales service expense expected to occur within 1 year is presented in other current liabilities.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
June 30, 2026 December 31, 2025
Borrowings secured by collateral 14,541,514 17,359,693
Borrowings secured by pledge 3,845,853 3,072,898
Unsecured borrowings 113,460,015 118,878,106
Including: long-term loans due within one year (28,511,710) (23,171,348)
As at June 30, 2026, the long-term borrowings secured by collateral were equivalent to RMB
land use rights, houses and buildings, machinery and equipment of about RMB 37,462,210,000 (December
(December 31, 2025: RMB 3,072,898,000), which were pledged by the accounts receivable and contract
assets of about RMB 494,961,000 (December 31, 2025: RMB 511,728,000).
The interest rates of the Company’s long-term borrowing ranged from 1.80% to 4.87% in the current period
(2025: from 1.80% to 4.90%).
June 30, 2026 December 31, 2025
Corporate bonds 6,989,004 4,990,207
MTN 2,992,856 2,991,667
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
(1) Movements in bonds payable
Issued in Amortization
Issued Interest accrual
Bond name Par value Issue date Maturity December 31, 2025 current of premium or June 30, 2026
amount based on par value
period discount
May 20,
April 9,
July 4,
July 4,
Tech Innovation Notes) 2025
Tech Innovation Notes) 2025
Tech Innovation Bonds) 2025
December
Total 10,000,000 10,000,000 7,981,874 2,000,000 99,708 (14) 9,981,860
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
June 30, 2026 December 31, 2025
Total lease liabilities 3,985,217 6,656,326
Less: Lease liabilities due within one year 196,462 2,507,728
June 30, 2026 December 31, 2025
Finance lease 871,340 1,388,759
Others 290,099 -
Increase in Decrease in
December 31, 2025 June 30, 2026
current period current period
Public grants 2,151,176 2,370,285 (2,078,271) 2,443,190
Items involving public grants
Written off
Recognized against the
December 31, Other June 30,
Increase in other cost of the
income asset/
expenses
Public grants
related to assets
Public grants
related to income
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
June 30, 2026 December 31, 2025
After-sales service fee of products 164,370 180,266
Pending litigation 44,339 51,214
June 30, 2026 December 31, 2025
Other non-current liabilities 9,003 25,635
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
December 31, 2025 Increase or decrease in current period June 30, 2026
Shares
converted from
Amount Ratio New issues capital reserve Others Subtotal Amount Ratio
I. Restricted shares 2,704,162 13% - - (1,031,990) (1,031,990) 1,672,172 8%
II. Non-restricted
shares
III. Total shares 20,800,862 100% - - - - 20,800,862 100%
Except for Chairman of the Board Mr. Li Dongsheng who holds restricted shares subscribed for in a private placement, none of the other incumbent directors,
supervisors, or senior management hold any restricted shares from a split-share structure reform or a private placement. The shares held by these personnel will stay
partially frozen as per the Rules on the Management of Shares Held by the Directors, Supervisors, and Senior Management Officers of the Company and the Changes
thereof. The trading and information disclosure in relation to these shares shall be in strict compliance with the applicable laws, regulations, and rules.
(1)As at June 30, 2026, the basic information of the Company's outstanding perpetual bonds and other financial instruments is as follows:
Outstanding Financial Issuance Interest Maturity Date or Conversion Conversion
Instruments Date Rate Issue Price Quantity Amount Renewal Terms Conditions Status
Tech Innovation Bonds) 2026 per note notes applicable
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
(2) Principal Terms
Pursuant to the Notice of Acceptance of Registration (ZSXZ [2025] TDFI No. 17) issued by the National
Association of Financial Market Institutional Investors (NAFMII), TCL Technology Group Corporation
issued the first tranche of its 2026 Sci-Tech Innovation Bonds ("26 TCL Group MTN001 (Sci-Tech
Innovation Bonds)", bond code: 102680444) to qualified institutional investors in the interbank market from
February 3 to 4, 2026. With the value date being February 5, 2026, the bonds registers an aggregate issuance
value of RMB 1.0 billion at par value of RMB 100 per note, totaling 10 million notes.
The initial tenor of 26TCL Group MTN001 (Sci-Tech Innovation Bonds) is 3 years, with each 3 interest-
bearing years constituting one cycle. At the end of the initial tenor and at the end of each subsequent renewal
cycle, the Company is entitled to exercise its renewal option to extend the term by one cycle based on the
agreed initial term, or elect to redeem and terminate the bonds in full upon the expiry of that cycle. The
coupon rate of 26TCL Group MTN001 (Sci-Tech Innovation Bonds) remains fixed during the first cycle and
is reset at the beginning of each subsequent cycle. The coupon rate for the initial cycle is the initial benchmark
interest rate plus the initial spread. The coupon rate for subsequent cycles will be reset to the then-prevailing
benchmark interest rate plus the initial spread, with an additional step-up of 300bps. 26TCL Group MTN001
(Sci-Tech Innovation Bonds) includes an option for the issuer to defer interest payments. Unless a mandatory
interest payment event occurs (including the distribution of dividends to ordinary shareholders and the
reduction of registered capital), the Company may, at its sole discretion on each interest payment date, defer
the payment of the interest then due as well as all previously deferred interest and interest thereon to the next
interest payment date, without limitation on the number of deferrals.
As at June 30, 2026, the actual aggregate issuance amount of 26TCL Group MTN001 (Sci-Tech Innovation
Bonds) was RMB 1 billion. The Company considers that this renewable corporate bond does not meet the
definition of a financial liability, and accordingly, the net proceeds of the bond issuance, after deducting
underwriting fees and other related transaction costs, have been recognized as other equity instruments.
(3) Movements in Outstanding Perpetual Bonds and Other Financial Instruments
December 31, 2025 Increase in current period Decrease in current period June 30, 2026
Outstanding Financial
Instruments Carrying Carrying Carrying Carrying
Quantity Quantity Quantity Quantity
amount amount amount amount
(Sci-Tech Innovation - - 997,630 - - 997,630
notes notes
Bonds)
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
Increase in Decrease in
December 31, 2025 current period current period June 30, 2026
Share premium 13,535,265 1,827,761 (2,598,291) 12,764,735
Other capital reserves 620,460 287,327 (337,989) 569,798
Increase in Decrease in
December 31, 2025 June 30, 2026
current period current period
Treasury share 1,503,652 400,044 (397,208) 1,506,488
The increase in the period is mainly stock repurchases for the employee stock ownership plan or the equity
incentives of the Company. As at June 1, 2026, the Company held the 23rd meeting of the 8th Board of
Directors to deliberate and approve the Proposal on the Repurchase of Part of the Publicly Held Shares in
used for employee stock ownership plans or equity incentives. As of June 30, 2026, the total number of
shares repurchased was 82,168,000 shares at the total consideration of RMB 400 million.
The decrease in the year is mainly caused by the non-trading transfer and sale of the employee portion of the
employee stock ownership plan.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
(1) Other comprehensive income items, income tax effects and reclassifications to profit or loss
January - June
January - June 2026
I. Items that cannot be reclassified to profit or loss subsequently
(22,071) (10,208)
reclassified to profit or loss under the equity method
Share of the period (22,071) (10,166)
Previous other comprehensive income reclassified to retained
- (42)
earnings for the current period
Current gain/(loss) (2,688) 7,619
Income tax effects recorded in other comprehensive income 188 (753)
of defined benefit plans
Previous other comprehensive income reclassified to retained
earnings for the current period
II. Items that will be reclassified to profit or loss subsequently
reclassified to profit or loss under the equity method
Share of the period 50,451 (37,685)
Current gain/(loss) (4,703) -
(30,061) (92,857)
statements of overseas operations
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
(2) Changes in other comprehensive income items
Equity attributable to shareholders of the parent company
Share of
other
Differences Changes
comprehensi
arising from caused by re- Other
ve income of Financial Fair value
Gain/(Loss) translation of measurement comprehensi
Change in investees that assets changes Non- Total other
on changes in foreign of net ve income
accounting will be Gain or loss of other Subtotal controlling comprehensi
cash flow currency- liabilities or transferred to
policies reclassified on fair-value equity interests ve income
hedges denominated net assets of retained
to profit or changes instruments
financial defined earnings
loss under
statements benefit plans
the equity
method
December 31, 2024 334,950 325,919 (350,569) 14,174 (741,541) (210,478) (200) (112,714) (740,459) (1,650) (742,109)
Movement of 2025 - (291,343) - (1) 47,186 (40,838) (16,873) (31) (301,900) (4,611) (306,511)
December 31, 2025 334,950 34,576 (350,569) 14,173 (694,355) (251,316) (17,073) (112,745) (1,042,359) (6,261) (1,048,620)
Movement January -
- 28,367 - (838) (641) (2,500) - 17,077 41,465 6,732 48,197
June 2026
June 30, 2026 334,950 62,943 (350,569) 13,335 (694,996) (253,816) (17,073) (95,668) (1,000,894) 471 (1,000,423)
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
Increase in Decrease in
December 31, 2025 current period current period June 30, 2026
Statutory surplus reserves 3,913,945 - - 3,913,945
Discretionary surplus
reserves
Appropriation Decrease in
December 31, 2025 in current current June 30, 2026
period period
Production safety reserve 5,598 3,422 (2,574) 6,446
Appropriation in Decrease in
December 31, 2025 current period current period June 30, 2026
General risk reserve 8,934 - - 8,934
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
January - June 2026 January - June 2025
Retained earnings at the beginning of the year 24,910,834 21,504,719
Net profits for current period 3,808,272 1,883,500
Decrease in current period (1,889,154) (938,912)
Including: Appropriation of surplus reserves - -
Distributed to ordinary shareholders as dividends (1,872,077) (938,954)
Others (17,077) 42
Retained earnings at the end of the period 26,829,952 22,449,307
January - June 2026 January - June 2025
Operating Operating Operating
Operating cost
revenue cost revenue
Core business 86,140,918 75,505,935 82,687,265 71,815,128
Non-core business 2,507,269 1,734,967 2,872,739 2,267,710
(1) Business by operating segment
Operating revenue Operating cost Gross profit
January - June January - June January - June January - June January - June January - June
Domestic
sales
Foreign
sales
(2) The total revenue from the sales to the top five customers was RMB 26,905,942,000 and RMB
and 33.4% of the operating revenue, respectively.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
(3) Revenue and costs generated from the Company's trial sales are as follows:
January - June 2026 January - June 2025
Operating revenue 516,150 1,705,918
Operating cost 357,142 1,422,185
January - June 2026 January - June 2025
Interest expenditures 994 7,789
Interest income 38,718 101,622
Exchange gain 972 207
The interest income, interest expense and exchange gain/(loss) above occurred with the Company's
subsidiary TCL Technology Group Finance Co., Ltd., which are presented separately herein as
required for a financial enterprise.
January - June January - June
Property tax 298,789 263,577
Stamp tax 88,610 96,737
Urban maintenance and construction tax 61,024 108,427
Education surcharges 44,949 79,276
Land use tax 32,194 36,926
Others 3,938 13,201
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
January - June 2026 January - June 2025
Employee salaries and benefits 619,996 639,773
Promotional and marketing expenses 185,078 156,472
Others 403,184 367,720
January - June 2026 January - June 2025
Employee salaries and benefits 1,053,205 1,184,868
Depreciation and amortization expenses 444,190 468,934
Expenses for hiring intermediaries 223,988 150,691
Others 630,843 396,066
January - June 2026 January - June 2025
Depreciation and amortization expenses 1,596,062 2,185,468
Employee salaries and benefits 1,532,448 1,423,147
Material expenses 788,078 626,942
Others 631,144 506,322
January - June 2026 January - June 2025
Interest expenditures 2,033,917 2,555,367
Interest income (268,765) (353,536)
Exchange loss/(gain) 528,011 (120,413)
Others 40,900 59,864
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
January - June 2026 January - June 2025
R&D subsidies 463,307 743,047
Over-deduction in taxable amount for VAT 267,047 259,376
VAT rebates on software 8,633 17,519
Others 80,247 218,560
January - June 2026 January - June 2025
Revenue from long-term equity investment
accounted for using the equity method
Net income from disposal of long-term equity
investments
Return on holding of held-for-trading financial
assets
Return on disposal of held-for-trading financial
assets
Others 170,530 138,701
January - June 2026 January - June 2025
Held-for-trading financial assets 1,328,011 285,102
Derivative financial instruments (66,289) 189,924
Others (4,266) (5,138)
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
January - June 2026 January - June 2025
Loss on uncollectible accounts receivable 6,629 (6,362)
Loss on uncollectible other receivables (3,148) (7,257)
Impairment loss on notes receivable (14,836) -
Other financial assets 6 (11,772)
(11,349) (25,391)
January - June 2026 January - June 2025
Inventory valuation loss (2,078,582) (2,793,810)
Loss on impairment of fixed assets (244,947) (87)
Others (4,574) (5,047)
(2,328,103) (2,798,944)
January - June 2026 January - June 2025
Income/(loss) from disposal of fixed assets 4,839 (763)
Income/(loss) from disposal of intangible assets 43,584 (3,321)
Others 3,449 1,065
Amount through
January - June January - June current non-
losses
Gains on retired or damaged non-
current assets
Revenue from liquidated damages and
others
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
Amount through
January - June January - June current non-
losses
Losses on retired or damaged non-current
assets 3,409
Donation 53,994 17,415 53,994
Others 123,788 99,133 123,788
(1) Table of income tax expenses
January - June 2026 January - June 2025
Current income tax expense 519,413 665,481
Deferred income tax expense (464,220) (349,587)
(2) Accounting profit and income tax adjustment process
January - June 2026 January - June 2025
Gross profit 2,298,459 347,577
Income tax expense calculated at statutory/applicable
tax rate
Impact of different tax rates applied to subsidiaries (279,218) 500,690
Impact of adjusting income tax in previous periods (101,638) (66,236)
Impact of non-deductible costs, expenses, and losses 10,039 36,393
Impact of the use of deductible losses carried forward
without recognizing deferred income tax assets in the (9,533) 116,387
previous periods
Impact of unrecognized deferred income tax assets of
deductible temporary differences or deductible losses 753,489 752,156
in the current period
Tax incentives and others (892,561) (1,075,633)
Income tax expense 55,193 315,894
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
(1) Basic earnings per share
January - June 2026 January - June 2025
Net profits attributable to shareholders of the parent company 3,808,272 1,883,500
Weighted average outstanding ordinary shares (in thousand shares) 20,464,154 18,573,423
Basic earnings per share (RMB yuan) 0.1861 0.1014
(2) Diluted earnings per share
January - June 2026 January - June 2025
Net profits attributable to shareholders of the parent company 3,808,272 1,883,500
Diluted weighted average outstanding ordinary shares (in thousand
shares)
Diluted earnings per share (RMB yuan) 0.1831 0.1003
Other cash received relating to operating activities in the Company's consolidated cash flow statement was RMB
payments received, public grants, and special appropriations.
Other cash paid relating to operating activities in the Company's consolidated cash flow statement was RMB
expenses and current payments.
Other cash received relating to investing activities in the Company's consolidated cash flow statement was RMB
deposits received, finance lease payments received, and other receivables and payables.
Other cash paid relating to investing activities in the Company's consolidated cash flow statement was RMB
payments for foreign exchange forward delivery.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
Other cash received relating to financing activities in the Company's consolidated cash flow statement was RMB 236,894,000 (the same period of the previous
year: RMB 544,843,000), which primarily consisted of the payment for sales of treasury shares, and receipt of finance leasing borrowings.
Other cash paid relating to financing activities in the Company's consolidated statement of cash flows amounted to RMB 8,807,007,000 (RMB 9,101,549,000 for the same
period of last year), which primarily consisted of payments for the repurchase of minority interests, share repurchases, and finance lease payments.
(1)Changes in liabilities arising from financing activities:
Increase in current period Decrease in current period
Item December 31, 2025 Cash Non-cash Non-cash June 30, 2026
Cash movements
movements movements movements
Dividends payable 48,249 - 2,124,142 (1,890,248) - 282,143
Short-term borrowings 7,552,523 15,067,479 345,718 (12,076,211) - 10,889,509
Long-term borrowings (including non-current liabilities
due within one year)
Bonds payable (including non-current liabilities due
within one year)
Lease liabilities (including non-current liabilities due
within one year)
Long-term payables (including non-current liabilities due
within one year)
Other current liabilities - 5,000,000 - - (1,013) 4,998,987
Total 167,515,125 37,991,926 5,493,378 (44,599,967) (3,037,374) 163,367,088
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
(1) Reconciliation of net profits to net cash generated from/used in operating activities
January - June 2026 January - June 2025
Net profits 2,243,266 31,683
Add: Asset impairment allowances 2,339,452 2,824,335
Depreciation of fixed assets and investment properties 13,768,340 13,375,276
Depreciation of right-of-use assets 217,342 255,297
Amortization of intangible assets 982,425 1,397,225
Amortization of long-term deferred expenses 970,535 1,054,605
Loss/(Gain) on disposal of fixed assets, intangible assets,
(51,872) 3,019
and other long-term assets
Loss/(Gain) on retired or damaged fixed assets 318 3,235
Loss/(Gain) on changes in fair value (1,257,456) (469,888)
Financial expenses 2,561,950 2,442,536
Return on investment (2,193,723) (831,296)
Decrease/(Increase) in deferred income tax assets (337,066) (271,016)
Increase/(Decrease) in deferred income tax liabilities (187,018) 465,418
Decrease/(Increase) in inventory (6,271,840) (5,379,161)
Decrease/(Increase) in operating receivables 1,684,030 8,496,334
Increase/(Decrease) in operating payables 190,109 3,717,554
Others 2,963,360 158,837
Net cash generated from operating activities 17,622,152 27,273,983
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
(2) Net cash payments for acquisition of subsidiaries in the current period
January - June 2026 January - June 2025
Payments of cash and cash equivalents made in current period
due to business combinations incurred in current period
Less: cash and cash equivalents held by subsidiary on acquisition
date
Net cash payments for acquisition of subsidiaries 1,762,058 6,104,583
(3) Net cash proceeds from disposal of subsidiaries in the current period
January - June 2026 January - June 2025
Cash or cash equivalents received in current period due to
disposal of subsidiary in the current period
Less: Cash and cash equivalents held by subsidiary on the date
when the Company’s control over the subsidiary ceased
Net cash proceeds from the disposal of subsidiaries 17,499 -
(4) Breakdown of cash and cash equivalents
January - June 2026 January - June 2025
I. Cash 22,218,724 26,556,661
Including: Cash on hand 553 497
Bank deposits available for payment on demand 21,082,668 26,267,546
Other monetary assets are available for payment on
demand
Deposits with the central bank available for payment 5,906 6,387
II. Cash equivalents - -
III. Ending balance of cash and cash equivalents 22,218,724 26,556,661
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
(5) Description of other major activities
Major operation or investment activities in no connection with cash receipts and payments:
January - June January - June
Payment for procurement of inventory by bank acceptance bills 1,389,900 653,438
Payment for procurement of long-term assets by bank acceptance bills 219,851 1,154,167
Right-of-use assets newly added in the current period 194,769 144,044
January - June January - June
Ending balance of cash and cash equivalents 22,218,724 26,556,661
Less: Cash at the beginning of the year 26,565,803 20,861,225
Net increase in cash and cash equivalents (4,347,079) 5,695,406
Analysis of ending balance of cash and cash equivalents:
Monetary assets at the end of the period 23,149,621 28,544,343
Less: Non-cash equivalents at the end of the period (note) 930,897 1,987,682
Ending balance of cash and cash equivalents 22,218,724 26,556,661
Note: The ending non-cash equivalents primarily included the statutory reserve deposits placed by TCL
Technology Group Finance Co., Ltd. in the central bank, and other monetary assets, detailed in Note V. 1.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
June 30, 2026
Foreign currency
Conversion rate RMB balance
balance
Monetary assets
Including: USD 770,952 6.8109 4,774,114
INR 3,607,542 0.0722 260,465
HKD 54,896 0.8683 47,666
Other foreign
currencies
Accounts receivable
Including: USD 1,332,949 6.8109 9,078,582
INR 8,411,544 0.0722 607,313
Other foreign
currencies
Accounts payable
Including: USD 666,980 6.8109 4,542,734
JPY 13,906,685 0.0420 584,081
HKD 380,676 0.8683 330,541
Other foreign
currencies
Other receivables
Including: USD 28,129 6.8109 191,584
MXN 413,109 0.3893 160,823
Other foreign
currencies
Other payables
Including: USD 353,750 6.8109 2,409,356
JPY 8,426,912 0.0420 353,930
Other foreign currencies 169,901
Short-term borrowings
Including: USD 24,183 6.8109 164,708
Long-term borrowings
Including: USD 175,000 6.8109 1,191,908
Long-term borrowings due
within one year
Including: USD 25,000 6.8109 170,273
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
V Notes to Consolidated Financial Statements (Continued)
(1) The Company acting as a lessee
In 2026, short-term lease rents, low-value asset rents, and income obtained from subleasing right-
of-use assets, for which the Group, acting as a lessee, chose simplified accounting, were not
significant.
(2) The Company acting as a lessor
①Operating 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 110,903 -
Machinery equipment 6,359 -
Others 113 -
Total 117,375 -
②Undiscounted lease receipts to be received in each of the next five years
Annual undiscounted lease receipts
Item June 30, 2026 December 31, 2025
Year 1 117,773 281,923
Year 2 113,770 221,154
Year 3 109,658 195,366
Year 4 85,858 184,634
Year 5 65,535 83,117
Total undiscounted lease receipts
after five years
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
VI R&D expenses
Item January - June 2026 January - June 2025
Material costs 1,358,552 1,260,357
Labor costs 1,775,851 1,611,007
Depreciations and amortizations 903,158 1,045,187
Others 584,956 612,095
Total 4,622,517 4,528,646
Including: Expensed R&D expenses 3,587,368 3,339,314
Capitalized R&D expenses 1,035,149 1,189,332
Increase in current period Decrease in current period
December Internal June 30,
Item Recognized as an Included in profits
intangible asset and losses
expenditures
Display 963,087 926,900 - (47,543) (148,528) (937,116) 756,800
New energy
photovoltaics and
other silicon
materials
Total 1,204,955 1,035,149 - (105,863) (148,528) (937,116) 1,048,597
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
VII Changes to the Consolidation Scope
(1) Acquisition of equity of Fuzhou Huazhao Optoelectronics Co., Ltd.
As at February 28, 2026 (the "Acquisition Date"), the Group acquired 80% equity of Fuzhou
Huazhao Optoelectronics Co., Ltd. at a cash consideration of RMB 489,729,000, and included
such company into the scope of consolidation.
Cash consideration 489,729
Less: Share of fair value of identifiable net assets acquired 463,304
Goodwill amount 26,425
Fair value as at the Carrying amount as
acquisition date at the acquisition date
Total assets 1,907,494 1,849,650
Total liabilities 1,295,304 1,295,304
Net assets 612,190 554,346
Less: non-controlling interests 148,886 140,054
Net assets acquired 463,304 414,292
(2) Acquisition of equity of Hunan Chuangke Photoelectrics Co., Ltd.
As at March 31, 2026 (the "Acquisition Date"), the Group acquired a 21% equity interest in Hunan
Chuangke Photoelectrics Co., Ltd. at a cash consideration of RMB 17,000,000, and made a cash
capital contribution of RMB 63,000,000 to the same company. Upon completion of the
aforementioned equity acquisition and capital injection, the Group held a 56% equity interest in
Hunan Chuangke Photoelectrics Co., Ltd., obtaining effective control over the company and
including it in the scope of consolidation.
Cash consideration 80,000
Less: Share of fair value of identifiable net assets acquired 37,396
Goodwill amount 42,604
Fair value as at the Carrying amount as at
acquisition date the acquisition date
Total assets 166,233 165,957
Total liabilities 99,455 99,455
Net assets 66,778 66,502
Less: non-controlling interests 29,382 29,261
Net assets acquired 37,396 37,241
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
VII Changes to Consolidation Scope (Continued)
Name of subsidiary Maxeon Solar Technologies, Ltd
Price for equity interest disposal -
% equity interest disposed 59%
Way of equity disposal Takeover by the bankruptcy administrator
Time of loss of control April 9, 2026
Determination basis for time of loss of control The operating risk has been transferred
Difference between the disposal price and the
Company’s share of the subsidiary’s net assets in the
consolidated financial statements relevant to the
disposed equity interest
Name of investee Reason for change
Zhengzhou Shangrong Trading Co., Ltd. Newly established
Wuhan Titi Yunchuang Education Technology Co., Ltd. Newly established
Ningbo Chengda Shangpin Technology Co., Ltd. Newly established
Shenzhen Shangpai Zhuofan Technology Co., Ltd. Newly established
Guangzhou Shangpai Zhihe Electronics Technology Co., Ltd. Newly established
TCL International Supply Chain (Huizhou) Co., Ltd. Newly established
Zhejiang Xingyong Electronics Co., Ltd. Newly established
Shenzhen Zhonghuan Advanced Bandaoti Materials Co., Ltd. Newly established
Ningbo Dongxi Rongrui Venture Capital Partnership (Limited Newly established
Partnership)
Shenzhen Yunqi New Materials Technology Co., Ltd. Newly established
Yixing Zhonghuan Leading Engineering Management Co., Ltd. Capital increase for controlling interest
Tianjin Jincheng Internet Technology Co., Ltd. De-registered
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
VIII Interests in Other Entities
(1) Composition of the enterprise group
Shareholding
Place of Nature of Principal place of How subsidiary
Name of investee percentage
registration business business was obtained
Direct Indirect
Manufacturing
TCL China Star Optoelectronics Technology Co., Ltd. Shenzhen Shenzhen 82.82% - Incorporated
and sales
Shenzhen China Star Optoelectronics Bandaoti Display Manufacturing
Shenzhen Shenzhen - 94.97% Incorporated
Technology Co., Ltd. and sales
Guangzhou China Ray Optoelectronic Materials Co., Research and
Guangzhou Guangzhou - 100.00% Incorporated
Ltd. development
Wuhan China Star Optoelectronics Technology Co., Manufacturing
Wuhan Wuhan - 99.16% Incorporated
Ltd. and sales
Wuhan China Star Optoelectronics Bandaoti Display Manufacturing
Wuhan Wuhan - 62.38% Incorporated
Technology Co., Ltd. and sales
China Star Optoelectronics International (HK) Limited Hong Kong Sales Hong Kong - 100.00% Incorporated
Business
China Display Optoelectronics Technology Holdings Investment combination not
Bermuda Bermuda - 64.20%
Limited holding under common
control
China Display Optoelectronics Technology (Huizhou) Manufacturing
Huizhou Huizhou - 100.00% Incorporated
Co., Ltd. and sales
Wuhan China Display Optoelectronics Technology Co., Manufacturing
Wuhan Wuhan - 100.00% Incorporated
Ltd. and sales
Business
Suzhou China Star Optoelectronics Technology Co., Manufacturing combination not
Suzhou Suzhou - 100.00%
Ltd. and sales under common
control
Business
Manufacturing combination not
Suzhou China Star Optoelectronics Display Co., Ltd. Suzhou Suzhou - 100.00%
and sales under common
control
Guangzhou China Star Optoelectronics Bandaoti Manufacturing
Guangzhou Guangzhou - 55.00% Incorporated
Display Technology Co., Ltd. and sales
Business
Guangzhou China Star Optoelectronics Display Co., Manufacturing combination not
Guangzhou Guangzhou - 100.00%
Ltd. and sales under common
control
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
VIII Interests in Other Entities (Continued)
(1) Composition of the enterprise group (Continued)
Shareholding
Place of Nature of Principal place of How subsidiary
Name of investee percentage
registration business business was obtained
Direct Indirect
Business
Guangzhou China Star Optoelectronics Manufacturing combination not
Guangzhou Guangzhou - 100.00%
Technology Co., Ltd. and sales under common
control
Guangzhou China Star Optoelectronics Printed Manufacturing Incorporated
Guangzhou Guangzhou - 21.00%
Display Technology Co., Ltd. and sales
Product Incorporated
Highly Information Industry Co., Ltd. Beijing Beijing 66.46% -
distribution
Beijing Sunpiestore Technology Co., Ltd. Beijing Sales Beijing - 53.45% Incorporated
Beijing Lingyun Data Technology Co., Ltd. Beijing Sales Beijing - 60.00% Incorporated
TCL Technology Group Finance Co., Ltd. Huizhou Financial Huizhou 82.00% 18.00% Incorporated
Shenzhen Dongxi Jiashang Entrepreneurship Investment Incorporated
Shenzhen Shenzhen 100.00% -
Investment Co., Ltd. business
Investment Incorporated
Ningbo TCL Equity Investment Ltd. Ningbo Shenzhen 100.00% -
business
Property Incorporated
TCL Technology Park (Huizhou) Co., Ltd. Huizhou Huizhou - 100.00%
management
Investment Incorporated
TCL Technology Investments Limited Hong Kong Hong Kong 100.00% -
business
Business
TCL Zhonghuan Renewable Energy Manufacturing combination not
Tianjin Tianjin 2.55% 27.36%
Technology Co., Ltd. ("TZE") and sales under common
control
Business
Tianjin Printronics Circuit Corporation Manufacturing combination not
Tianjin Tianjin - 29.42%
("TPC") and sales under common
control
Business
Inner Mongolia Zhonghuan Crystal Materials Manufacturing combination not
Inner Mongolia Inner Mongolia - 83.96%
Co., Ltd. and sales under common
control
Business
Ningxia Hui Ningxia Hui
Manufacturing combination not
Ningxia Zhonghuan Solar Material Co., Ltd. Autonomous Autonomous - 100.00%
and sales under common
Region Region
control
Business
Tianjin Huan'ou Bandaoti Manufacturing combination not
Tianjin Tianjin - 100.00%
Material&Technology Co., Ltd. and sales under common
control
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
VIII Interests in Other Entities (Continued)
(1) Composition of the enterprise group (Continued)
Shareholding
Place of Nature of Principal place percentage How subsidiary was
Name of investee
registration business of business Direct Indirect obtained
Business combination
Manufacturing
Wuxi Zhonghuan Applied Materials Co., Ltd. Jiangsu Jiangsu - 98.08% not under common
and sales
control
Business combination
Inner Manufacturing
Inner Mongolia Zhonghuan Solar Material Co., Ltd. Inner Mongolia - 100.00% not under common
Mongolia and sales
control
Business combination
Tianjin Huanou International Silicon Material Co.,
Tianjin Sales Tianjin - 100.00% not under common
Ltd.
control
Business combination
Import and
Zhonghuan Hong Kong Holding Limited Hong Kong Hong Kong - 100.00% not under common
export
control
Business combination
Zhonghuan Advanced Bandaoti Technology Co., Manufacturing
Jiangsu Jiangsu 9.19% 32.72% not under common
Ltd. and sales
control
Business combination
TCL Zhonghuan Energy Technology (Jiangsu) Co., Manufacturing
Jiangsu Jiangsu - 100.00% not under common
Ltd. and sales
control
Business combination
Manufacturing
Huansheng New Energy (Jiangsu) Co., Ltd. Jiangsu Jiangsu - 95.74% not under common
and sales
control
Business combination
Manufacturing
Huansheng New Energy (Tianjin) Co., Ltd. Tianjin Tianjin - 87.33% not under common
and sales
control
Power
generation, Business combination
power
Tianjin Zhonghuan New Energy Co., Ltd. Tianjin Tianjin - 100.00% not under common
transmission,
power supply control
(distribution)
Business combination
Tianjin Huanrui Electronic Technology Co., Ltd. Tianjin Purchase Tianjin - 100.00% not under common
control
Business combination
Investment
Moka International Limited BVI BVI - 100.00% not under common
holding
control
Business combination
Manufacturing
Moka Technology (Guangdong) Co., Ltd. Huizhou Huizhou - 100.00% not under common
and sales
control
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
VIII Interests in Other Entities (Continued)
(1) Composition of the enterprise group (Continued)
Basis for determining that the Company controls an investee even if it holds half or less of the
voting rights, and does not control an investee even if it holds more than half of the voting rights:
The operating activities of the above subsidiaries, including the purchase of materials, equipment
or services, production and sales of products, establishment of internal control systems,
development and application of information systems, financing activities, investment activities,
research and development activities, and fund management, are all substantively managed and
controlled by the Company.
(2) Subsidiaries with substantial non-controlling interests
Profit or loss Dividends
Shareholding ratio attributable to distributed to Balance of minority
Name of subsidiary of minority minority minority interests at the end of
shareholders shareholders in shareholders in the period
current period current period
TCL China Star Optoelectronics
Technology Co., Ltd.
TCL Zhonghuan Renewable
Energy Technology Co., Ltd.
Highly Information Industry
Co., Ltd.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
VIII Interests in other entities (Continued)
(2) Subsidiaries with substantial non-controlling interests (Continued)
The key financial information of the above subsidiaries is as follows:
June 30, 2026 December 31, 2025
Current Non-current Current Non-current Total Current Non-current Total assets Current Non-current Total
Total assets
assets assets liabilities liabilities liabilities assets assets liabilities liabilities liabilities
TCL China
Star
Optoelectronic 52,015,994 136,142,891 188,158,885 63,502,198 51,341,357 114,843,555 58,314,547 144,143,039 202,457,586 53,596,487 62,413,781 116,010,268
s Technology
Co., Ltd.
TCL
Zhonghuan
Renewable
Energy
Technology
Co., Ltd.
Highly
Information
Industry Co.,
Ltd.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
VIII Interests in other entities (Continued)
(2) Subsidiaries with substantial non-controlling interests (Continued)
The key financial information of the above subsidiaries is as follows:
January - June 2026 January - June 2025
Total Net cash generate Total Net cash generate
Operating Operating
Net profits comprehensive from/used in Net profits comprehensive from/used in
revenue revenue
income operating activities income operating activities
TCL China Star
Optoelectronics
Technology Co.,
Ltd.
TCL Zhonghuan
Renewable Energy 14,314,940 (3,457,279) (3,474,023) 320,770 13,398,123 (4,836,171) (4,890,135) 523,174
Technology Co., Ltd.
Highly Information
Industry Co., Ltd.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
VII Interests in other entities (Continued)
I
(1) Basic information about principal joint ventures and associates
Principal place of Strategic to the Shareholding
Nature of percentage
Name of investee business/place of Group’s activities or
business
registration not Direct Indirect
Associate
Bank of Shanghai Co.,
Shanghai Financial Yes 5.76%
Ltd.
(2) The Company had no significant joint ventures in the Reporting Period.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
IX Risks Related to Financial Instruments
The purpose of the Company’s risk management is to achieve a right balance between the risk and the
benefit and maximally reduce the adverse impact of financial risks on the Company’s financial
performance. Based on such purpose, the Company has established various risk management policies
to recognize and analyze possible risks to be encountered by the Company, set an appropriate risk
acceptable level and design corresponding internal control procedures so as to control the Company’s
risk level. In addition, the Company will regularly review these risk management policies and relevant
internal control systems in order to adapt to the market or handle various changes in the Company’s
operating activities. Meanwhile, the Company’s internal audit department will also regularly or
randomly check whether the implementation of internal control system conforms to relevant risk
management policies. In fact, the Company has applied proper diversified investment and business
portfolio to disperse various financial instrument risks and worked out corresponding risk management
policies to reduce the risk of concentrating on one single industry, specific region or specific
counterpart.
The main risks arising from the Company's financial instruments are credit risk, liquidity risk, and
market risk (mainly foreign exchange risk and interest rate risk).
(1) Credit risk
Credit risk refers to the risk of financial loss caused by any party of financial instruments to another
party due to the failure in fulfilling performance obligations. The Group controls the credit risk based
on the specific group classification, and credit risk mainly results from bank deposits, due from the
central bank, notes receivable, accounts receivable, loans and advances to customers and other
receivables.
The Group’s bank deposits and due from the central bank are mainly deposited in stated-owned banks
and other large and medium-sized listed banks. The Group considers no significant credit risk to exist,
and no significant loss to be caused by the counterpart’s breach of contract.
For notes receivable, accounts receivable, loans and advances to customers, and other receivables, the
Group has established relevant policies to control the credit risk exposure, and will evaluate the
client’s credit qualification and determine the corresponding credit period based on the client’s
financial status, the possibility of obtaining guarantees from the third party, relevant credit records and
other factors (like the current market situation). In the meantime, the Group will regularly monitor the
client's credit records. For any client with unfavorable credit records, the Group will issue written
reminders, shorten the credit period or cancel the credit period so as to keep the Group's overall credit
risk controllable.
As at June 30, 2026, no significant guarantee or other credit enhancements held due to the debtor
mortgage was found in the Group.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
IX Risks Related to Financial Instruments (Continued)
(2) Liquidity risk
Liquidity risk refers to the risk of capital shortage the Company encounters when the Company is
fulfilling the obligation of settlement in the form of cash or other financial assets. Various subsidiaries
under the Group shall be responsible for predicting their own cash flow. The financial department of
the headquarters shall firstly summarize predictions on the cash flow of various subsidiaries and then
continuously monitor the short-term and long-term fund demand at the Group's level so as to maintain
sufficient cash reserves and negotiable securities that can be realized at any time; meanwhile, special
efforts shall also be made to continuously monitor whether provisions stated in the loan agreement are
observed and to make major financial institutions promise to provide sufficient reserve funds so as to
satisfy short-term and long-term capital demand.
As at June 30, 2026, the Group’s financial liabilities by maturity are as follows:
Item Within 1 year 1-2 years 2-5 years Over 5 years
Short-term borrowings 10,989,178 - - -
Borrowings from the Central - - -
Bank
Customer deposits and deposits - - -
from other banks and financial 246,532
institutions
Held-for-trading financial - - -
liabilities
Derivative financial liabilities 137,277 - - -
Notes payable 8,746,702 - - -
Accounts payable 34,428,400 - - -
Other payables 16,785,612 - - -
Other current liabilities 6,883,309 - - -
Long-term borrowings 30,218,060 48,164,616 48,404,828 13,795,326
Bonds payable 342,197 1,212,962 9,309,396 -
Lease liabilities 399,481 746,896 495,138 2,848,503
Long-term payables 517,404 463,032 505,975 405,240
Total 110,041,793 50,587,506 58,715,337 17,049,069
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
IX Risks Related to Financial Instruments (Continued)
(3) Market risk
(a) Foreign exchange risk
The Group has carried out various economic activities around the world, including manufacturing, selling,
investment, financing etc., and corresponding interest rate fluctuation risks exist in the Group’s foreign
currency assets and liabilities and future foreign currency transactions.
The Group always regards "Locking the Cost and Avoiding Possible Risks" as the foreign currency risk
management goal. Through the natural hedging of settlement currency, matching with the foreign currency
liabilities, signing simple derivative products closely related to the owner's operation and meeting
corresponding hedge accounting treatment requirements and applying other management methods, the
foreign currency risk exposure can be controlled within a reasonable scope and the impact of interest rate
fluctuations on the Group's overall profit and loss will be reduced.
As at June 30, 2026, foreign-currency asset and liability items with significant exposure to exchange risk
were mainly denominated in US dollars. The post-control total risk exposure of the US dollar-denominated
items had a net asset exposure of USD 148,431,000, equivalent to RMB 1,010,946,000 based on the spot
exchange rate on the balance sheet date. The differences arising from the translation of foreign currency
financial statements were not included.
The Group applies the following exchange rate of USD against RMB:
Average exchange rate Exchange rate at period-end
January - June 2026 June 30, 2026
USD/RMB 6.8836 6.8109
Assuming that all other risk variables remain constant, a 5% depreciation/appreciation of RMB against
USD as at June 30, 2026 would result in an increase/decrease in both shareholders' equity and net profit of
the Group by RMB 50,547,000.
The above-mentioned sensitivity analysis is made based on the assumption that the exchange rate changes
on the balance sheet date, and the financial instruments held by the Group on the balance sheet date
exposed to the exchange risk are recalculated based on the changed exchange rate. The above analysis does
not include differences arising from the translation of foreign currency financial statements.
(b) Interest risk
The Group's interest rate risk mainly results from interest-bearing bank borrowings carrying floating
interest rates, and the Group determined the proportion of fixed interest rates and floating interest rates
based on the market environment and its risk tolerance. By June 30, 2026, the Group's liabilities with
floating interest rates accounted for 82.51% of its total interest-bearing liabilities. And the Group will
continuously monitor the interest rates and make corresponding adjustments according to the specific
market changes so as to avoid interest rate risk.
(4) Offsetting of Financial Assets and Financial Liabilities
As at the end of the reporting period, the amount offset between the financial assets and financial liabilities
recognized under enforceable master netting arrangements or similar agreements was RMB 9,544,657,000.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
X Fair value disclosures
The level within which the fair value measurement is categorized is determined by the lowest level
of input that is significant to the overall fair value measurement.
Level 1: the unadjusted quotation of the same type of assets or liabilities in active markets.
Level 2: the directly or indirectly observable input of a financial asset or liability that does not
belong to level 1.
Level 3: unobservable inputs for the related asset or liability.
Financial assets
Item Level 1 Level 2 Level 3 Total
Held-for-trading financial assets (see
Note V. 2)
Derivative financial assets (see Note V.
Receivables financing (see Note V. 6) - - 528,486 528,486
Investments in other equity instruments
(see Note V. 16) 13,754 - 162,538 176,292
Other non-current financial assets (see
Note V. 17) 585,333 - 3,975,705 4,561,038
Total assets continuously measured at
fair value
Financial liabilities
Item Level 1 Level 2 Level 3 Total
Held-for-trading financial liabilities
(see Note V. 32) - - 237,565 237,565
Derivative financial liabilities (see
Note V. 33) - 137,277 - 137,277
Total liabilities continuously measured
at fair value - 137,277 237,565 374,842
For financial instruments traded in active markets, the Company determines their fair value based
on the quotation in active markets. For financial instruments not traded in active markets, the
Company determines their fair value using valuation techniques. The valuation models primarily
used include discounted cash flow models and market comparable company models. Key inputs for
the valuation techniques mainly include risk-free interest rates, benchmark rates, exchange rates,
credit spreads, liquidity premiums, and discounts for lack of liquidity.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
X Fair Value disclosures (Continued)
The Company adopts the active market quotation as the fair value of a level 1 financial asset.
Items measured at recurring and non-recurring level 2 fair value adopt the following valuation
techniques and parameters (nature and quantity)
Derivative financial assets and liabilities are multiple IRS and CCS signed between the Group and
financial institutions. The Company adopts the quotations provided by the financial institution in
valuation.
Items measured at recurring and non-recurring level 3 fair value adopt the following valuation
techniques and parameters (nature and quantity):
Other non-current financial assets measured at continuous level 3 fair value are mainly unlisted
equity investments held by the Company. In measuring the fair value, the Company mainly adopts
the valuation technique of comparison with listed companies, taking into account the price of
similar securities and liquidity discount.
Held-for-trading financial assets measured at continuous level 3 fair value are mainly wealth
management products held by the Company. In the valuation of the fair value, the Company adopts
the method of discounting future cash flows based on the agreed expected yield rate.
The Company’s receivables financing was bank acceptance notes and trade acceptance notes, of
which the market prices were determined based on the transfer or discounted amounts.
The Company’s financial assets and financial liabilities measured at amortized cost primarily
include: cash and cash equivalents, notes receivable, accounts receivable, other receivables, debt
investments, short-term borrowings, notes payable, accounts payable, other payables, long-term
borrowings due within one year and long-term payables, long-term borrowings, and bonds payable.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XI Related Parties and Related-Party Transactions
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 1,268,160,591 shares in total
and becoming the largest shareholder of the Company.
As per Article 216 of the Company Law, a "controlling shareholder" refers to a shareholder whose capital
contribution accounts for 50% or more of the total capital of a limited liability company, or whose shares
account for 50% or more of the total share capital of a company limited by shares; or a shareholder whose capital
contribution or shareholding ratio is less than 50%, but whose voting rights corresponding to such capital
contribution or shares held are sufficient to exert a significant impact on the resolutions of the shareholders'
meeting or the shareholders' general meeting. According to the definition above, the Company has no controlling
shareholder.
Information about such related parties:
Company name Relationship with the Group
Huaxia CPV (Inner Mongolia) Power Co., Ltd. Joint venture
Tianjin Huanyan Technology Co., Ltd. Joint venture
TCL Microchip Technology (Guangdong) Co., Ltd. and its subsidiaries Joint venture and its subsidiary
Huizhou TCL Human Resources Service Co., Ltd. and its subsidiaries Joint venture and its subsidiary
Tianjin Zhonghuan Haihe Intelligent Manufacturing Fund Partnership
Associate
(Limited Partnership)
Inner Mongolia Xinhuan Silicon Energy Technology Co., Ltd. Associate
Inner Mongolia Sheng’ou Electromechanical Engineering Co., Ltd. Associate
Aijiexu New Electronic Display Glass (Shenzhen) Co., Ltd. Associate
Shanghai Feilihua Shichuang Technology Co., Ltd. Associate
Zhonghuan Aineng (Beijing) Technology Co., Ltd. Associate
Inner Mongolia Xinhua Bandaoti Technology Co., Ltd. Associate
Zhonghuan Feilang (Tianjin) Technology Co., Ltd. Associate
Wuhan Guochuangke Optoelectronic Equipment Co., Ltd. Associate
Ningbo Dongpeng Heli Equity Investment Partnership (Limited
Associate
Partnership)
China Innovative Capital Management Limited Associate
Huizhou TCL Kaichuang Enterprise Management Co., Ltd. Associate
Shenzhen Qianhai Sailing International Supply Chain Management Co.,
Associate and its subsidiaries
Ltd. and its subsidiaries
Inner Mongolia Huanye Material Co., Ltd. and its subsidiaries Associate and its subsidiaries
Inner Mongolia Zhongjing Science and Technology Research Institute
Associate and its subsidiaries
Co., Ltd. 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
Associate and its subsidiaries
its subsidiaries
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XIX Related Parties and Related-Party Transactions (Continued)
Company name Relationship with the Group
Wuxi TCL Venture Capital Partnership (Limited Partnership) and its
subsidiaries Associate and its subsidiaries
Ningbo Dongpeng Weichuang Equity Investment Partnership (Limited
Partnership) and its subsidiaries Associate and its subsidiaries
Yixing Jiangnan Tianyuan Venture Capital Company (Limited Partnership) and
its subsidiaries Associate and its subsidiaries
Nanjing Zijin A Dynamic Investment Partnership (Limited Partnership) and its
subsidiaries Associate and its subsidiaries
Purplevine Holdings Limited and its subsidiaries Associate and its subsidiaries
Shenzhen Tixiang Business Management Technology Co., Ltd. and its
subsidiaries Associate and its subsidiaries
Ningbo Jiutian Matrix Investment Management Co., Ltd. and its subsidiaries Associate and its subsidiaries
TCL Industries Holdings Co., Ltd. and its subsidiaries Other relationships
Thunderbird Innovation Technology (Shenzhen) Co., Ltd. and its subsidiaries Other relationships
Joint ventures and subsidiaries of TCL Industries Holdings Co., Ltd. Other relationships
(1) Selling raw materials and finished goods (Note 1)
January - June January - June
TCL Industries Holdings Co., Ltd. and its subsidiaries 11,712,024 9,933,434
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Shenzhen Jucai Supply Chain Technology Co., Ltd. and its
subsidiaries
TCL Microchip Technology (Guangdong) Co., Ltd. and its
subsidiaries
Zhonghuan Feilang (Tianjin) Technology Co., Ltd. 5,487 6,130
Joint ventures and subsidiaries of TCL Industries Holdings Co.,
Ltd.
Inner Mongolia Xinhuan Silicon Energy Technology Co., Ltd. 56 203
Inner Mongolia Huanye Material Co., Ltd. and its subsidiaries 8 2
Huizhou TCL Human Resources Service Co., Ltd. and its
subsidiaries -
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XI Related Parties and Related-Party Transactions (Continued)
(2) Purchasing raw materials and finished products (Note 2)
January - June 2026 January - June 2025
Aijiexu New Electronic Display Glass (Shenzhen) Co., Ltd. 1,667,013 1,816,831
Inner Mongolia Xinhuan Silicon Energy Technology Co., Ltd. 1,174,677 1,054,199
TCL Industries Holdings Co., Ltd. and its subsidiaries 996,157 1,200,340
Shenzhen Jucai Supply Chain Technology Co., Ltd. and its
subsidiaries
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Inner Mongolia Xinhua Bandaoti Technology Co., Ltd. 39,967 8,879
Inner Mongolia Zhongjing Science and Technology Research
Institute Co., Ltd. and its subsidiaries
TCL Microchip Technology (Guangdong) Co., Ltd. and its
- 32,783
subsidiaries
(3) Receiving funding (Note 3)
January - June 2026 January - June 2025
Shenzhen Qianhai Sailing International Supply Chain Management
Co., Ltd. and its subsidiaries
Huizhou TCL Human Resources Service Co., Ltd. and its subsidiaries 98,409 110,826
Wuxi TCL Venture Capital Partnership (Limited Partnership) and its
subsidiaries
Ningbo Dongpeng Weichuang Equity Investment Partnership (Limited
Partnership) and its subsidiaries
Yixing Jiangnan Tianyuan Venture Capital Company (Limited
Partnership) and its subsidiaries
Nanjing Zijin A Dynamic Investment Partnership (Limited
Partnership) and its subsidiaries
TCL Industries Holdings Co., Ltd. and its subsidiaries - 807,296
Shenzhen Jucai Supply Chain Technology Co., Ltd. and its
- 253,330
subsidiaries
TCL Microchip Technology (Guangdong) Co., Ltd. and its
- 1
subsidiaries
(4) Rendering of funds (Note 3)
January - June January - June
TCL Industries Holdings Co., Ltd. and its subsidiaries 226 194,623
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XI Related Parties and Related-Party Transactions (Continued)
(5) Leases
January - June January - June
Rental income
TCL Industries Holdings Co., Ltd. and its subsidiaries 31,425 32,037
Inner Mongolia Huanye Material Co., Ltd. and its
subsidiaries
Shenzhen Jucai Supply Chain Technology Co., Ltd.
and its subsidiaries
Zhonghuan Feilang (Tianjin) Technology Co., Ltd. 439 -
Aijiexu New Electronic Display Glass (Shenzhen)
Co., Ltd.
Purplevine Holdings Limited and its subsidiaries 72 -
TCL Microchip Technology (Guangdong) Co., Ltd.
and its subsidiaries
Huizhou TCL Human Resources Service Co., Ltd. and
its subsidiaries
Shenzhen Tixiang Business Management Technology
Co., Ltd. and its subsidiaries
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Jiangsu Jixin Bandaoti Silicon Material Research
- 69
Institute Co., Ltd. and its subsidiaries
January - June January - June
Rental expense
TCL Industries Holdings Co., Ltd. and its subsidiaries 18,814 23,549
Tianjin Huanyan Technology Co., Ltd. 2,269 1,134
TCL Microchip Technology (Guangdong) Co., Ltd.
and its subsidiaries
Huaxia CPV (Inner Mongolia) Power Co., Ltd. 18 -
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XI Related Parties and Related-Party Transactions (Continued)
(6) Guarantee
The Company as a guarantor
Guarantee Whether the
Guarantee Guarantee
Guarantee commencement guarantee has been
amount maturity date
date fulfilled or not
Aijiexu New Electronic
Display Glass (Shenzhen) 96,026 April 28, 2020 June 28, 2030 No
Co., Ltd.
Shenzhen Qianhai Sailing
International Supply Chain 443,817 January 30, 2026 October 27, 2026 No
Management Co., Ltd.
Inner Mongolia Xinhua
Bandaoti Technology Co., 352,000 May 22, 2023 May 22, 2030 No
Ltd.
Inner Mongolia Xinhuan
Silicon Energy Technology 1,193,967 June 15, 2023 June 14, 2029 No
Co., Ltd.
As of June 30, 2026, there were no instances of the Company acting as the guaranteed party.
(7) Rendering or receipt of services
January - June January - June
Rendering of services 178,851 165,446
Receipt of services 1,051,635 963,539
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XI Related Parties and Related-Party Transactions (Continued)
(8) Collection/Payment of interest (Note 3)
January - June January - June
Interest received 175 2,818
Interest paid 12,530 11,033
(9) Remuneration of key management personnel (Note 4)
January - June January - June
Remuneration of key management personnel 8,300 6,250
Note Selling raw materials and finished goods to related parties
The Company sells raw materials, spare parts, auxiliary materials, and finished goods to its joint ventures and
associates at market prices, which are settled in the same way as non-related-party transactions. These related-
party transactions have no material impact on the Company’s net profits but play an important role as to the
Company’s continued operations.
Note Purchasing raw materials and finished goods from related parties
The Company purchases raw materials and finished goods from its joint ventures and associates at prices
similar to those paid to third-party suppliers, which are settled in the same way as non-related-party
transactions. These related-party transactions have no material impact on the Company’s net profits but play
an important role as to the Company’s continued operations.
Note 3 Providing funding for or receiving funding from related parties and corresponding interest received or paid
The Company set up a settlement center in 1997 and TCL Technology Group Finance Co., Ltd. in 2006
(together, the "Financial Settlement Center"). The Financial Settlement Center is responsible for the financial
affairs of the Company, including capital operation and allocation. The Center settles accounts with the
Company’s subsidiaries, joint ventures, and associates and pays the interest. It also allocates the money
deposited by the subsidiaries, joint ventures and associates in it to these enterprises and charges interest. The
interest income and expense between the Company and the Center are calculated according to the interest rates
declared by the People’s Bank of China. The funding amount provided refers to the outstanding borrowings
due from the Center to related parties, while the funding amount received means the balances of related
parties’ deposits in the Center.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XI Related Parties and Related-Party Transactions (Continued)
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.
(1) Accounts receivable
June 30, 2026 December 31, 2025
TCL Industries Holdings Co., Ltd. and its subsidiaries 4,169,935 5,802,990
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Shenzhen Jucai Supply Chain Technology Co., Ltd. and
its subsidiaries
Zhonghuan Feilang (Tianjin) Technology Co., Ltd. 3,644 1,698
TCL Microchip Technology (Guangdong) Co., Ltd. and
its subsidiaries
Tianjin Zhonghuan Haihe Intelligent Manufacturing Fund
Partnership (Limited Partnership)
Inner Mongolia Huanye Material Co., Ltd. and its
subsidiaries
Joint ventures and subsidiaries of TCL Industries
Holdings Co., Ltd.
Inner Mongolia Zhongjing Science and Technology
Research Institute Co., Ltd. and its subsidiaries
Thunderbird Innovation Technology (Shenzhen) Co., Ltd.
- 2
and its subsidiaries
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XI Related Parties and Related-Party Transactions (Continued)
(2) Receivables financing
June 30, 2026 December 31, 2025
Shenzhen Qianhai Sailing International Supply Chain
- 315
Management Co., Ltd. and its subsidiaries
- 315
(3) Accounts payable
June 30, 2026 December 31, 2025
TCL Industries Holdings Co., Ltd. and its subsidiaries 1,712,445 1,205,551
Aijiexu New Electronic Display Glass (Shenzhen) Co., Ltd. 1,170,298 905,023
Shenzhen Jucai Supply Chain Technology Co., Ltd. and its
subsidiaries
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
TCL Microchip Technology (Guangdong) Co., Ltd. and its
subsidiaries
Inner Mongolia Zhongjing Science and Technology Research
Institute Co., Ltd. and its subsidiaries
Inner Mongolia Huanye Material Co., Ltd. and its
subsidiaries
Inner Mongolia Xinhua Bandaoti Technology Co., Ltd. 34,975 -
Tianjin Huanyan Technology Co., Ltd. 1,609 -
Joint ventures and subsidiaries of TCL Industries Holdings
Co., Ltd.
Huizhou TCL Human Resources Service Co., Ltd. and its
subsidiaries
Inner Mongolia Sheng’ou Electromechanical Engineering
Co., Ltd.
Zhonghuan Feilang (Tianjin) Technology Co., Ltd. 183 207
Wuhan Guochuangke Optoelectronic Equipment Co., Ltd. 158 -
Shanghai Feilihua Shichuang Technology Co., Ltd. 9 9
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XI Related Parties and Related-Party Transactions (Continued)
Related Parties and Related-Party Transactions (Continued)
(4) Other receivables
June 30, 2026 December 31, 2025
TCL Industries Holdings Co., Ltd. and its subsidiaries 150,501 151,182
TCL Microchip Technology (Guangdong) Co., Ltd. and
its subsidiaries
Inner Mongolia Xinhuan Silicon Energy Technology Co.,
Ltd.
Inner Mongolia Zhongjing Science and Technology
Research Institute Co., Ltd. and its subsidiaries
Shenzhen Jucai Supply Chain Technology Co., Ltd. and
its subsidiaries
Inner Mongolia Huanye Material Co., Ltd. and its
subsidiaries
Ningbo Jiutian Matrix Investment Management Co., Ltd.
and its subsidiaries
Huizhou TCL Kaichuang Enterprise Management Co.,
Ltd.
Joint ventures and subsidiaries of TCL Industries
Holdings Co., Ltd.
Huizhou TCL Human Resources Service Co., Ltd. and its
subsidiaries
Shanghai Chuangxiang Investment Management Co.,
Ltd.
Tianjin Huanyan Technology Co., Ltd. 10 10
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Zhonghuan Aineng (Beijing) Technology Co., Ltd. 2 4
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XI Related Parties and Related-Party Transactions (Continued)
X
(5) Other payables
June 30, 2026 December 31, 2025
TCL Industries Holdings Co., Ltd. and its subsidiaries 332,089 355,955
Shenzhen Jucai Supply Chain Technology Co., Ltd. and its
subsidiaries
Huizhou TCL Human Resources Service Co., Ltd. and its
subsidiaries
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Wuxi TCL Venture Capital Partnership (Limited
Partnership) and its subsidiaries
Aijiexu New Electronic Display Glass (Shenzhen) Co., Ltd. 9,317 9,317
Wuhan Guochuangke Optoelectronic Equipment Co., Ltd. 2,990 5,450
TCL Microchip Technology (Guangdong) Co., Ltd. and its
subsidiaries
Purplevine Holdings Limited and its subsidiaries 692 500
Ningbo Dongpeng Weichuang Equity Investment
Partnership (Limited Partnership) and its subsidiaries
Yixing Jiangnan Tianyuan Venture Capital Company
(Limited Partnership) and its subsidiaries
Joint ventures and subsidiaries of TCL Industries Holdings
Co., Ltd.
Nanjing Zijin A Dynamic Investment Partnership (Limited
Partnership) and its subsidiaries
Inner Mongolia Zhongjing Science and Technology
Research Institute Co., Ltd. and its subsidiaries
China Innovative Capital Management Limited 43 43
Inner Mongolia Sheng’ou Electromechanical Engineering
Co., Ltd.
Shenzhen Tixiang Business Management Technology Co.,
Ltd. and its subsidiaries
Tianjin Zhonghuan Haihe Intelligent Manufacturing Fund
- 428,100
Partnership (Limited Partnership)
Thunderbird Innovation Technology (Shenzhen) Co., Ltd.
- 584
and its subsidiaries
Inner Mongolia Huanye Material Co., Ltd. and its
- 187
subsidiaries
Ningbo Dongpeng Heli Equity Investment Partnership
- 33
(Limited Partnership)
Tianjin Huanyan Technology Co., Ltd. - 9
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XI Related Parties and Related-Party Transactions (Continued)
(6) Non-current liabilities due within one year
June 30, 2026 December 31, 2025
TCL Industries Holdings Co., Ltd. and its subsidiaries 17,548 20,699
(7) Prepayments
June 30, 2026 December 31, 2025
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Inner Mongolia Huanye Material Co., Ltd. and its
subsidiaries
TCL Industries Holdings Co., Ltd. and its subsidiaries 10,757 4,769
Shenzhen Jucai Supply Chain Technology Co., Ltd. and
its subsidiaries
Inner Mongolia Xinhuan Silicon Energy Technology Co.,
Ltd.
Huizhou TCL Human Resources Service Co., Ltd. and its
subsidiaries
Tianjin Huanyan Technology Co., Ltd. 1,147 2,588
Purplevine Holdings Limited and its subsidiaries 13 -
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XI Related Parties and Related-Party Transactions (Continued)
(8) Advances from customers
June 30, 2026 December 31, 2025
TCL Industries Holdings Co., Ltd. and its subsidiaries 416 404
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
(9) Contract liabilities
June 30, 2026 December 31, 2025
TCL Industries Holdings Co., Ltd. and its subsidiaries 93,667 53,277
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Joint ventures and subsidiaries of TCL Industries Holdings
Co., Ltd.
(10) Lease liabilities
June 30, 2026 December 31, 2025
TCL Industries Holdings Co., Ltd. and its subsidiaries 25,696 31,917
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XI Related Parties and Related-Party Transactions (Continued)
(11) Deposits from related parties (note)
June 30, 2026 December 31, 2025
Shenzhen Qianhai Sailing International Supply Chain
Management Co., Ltd. and its subsidiaries
Huizhou TCL Human Resources Service Co., Ltd. and
its subsidiaries
TCL Industries Holdings Co., Ltd. and its subsidiaries - 10,334
TCL Microchip Technology (Guangdong) Co., Ltd. and
- 6,848
its subsidiaries
Note: These deposits are made by related parties in the Company’s subsidiary TCL Technology Group Finance Co.,
Ltd.
(12) Other non-current assets
June 30, 2026 December 31, 2025
Purplevine Holdings Limited and its subsidiaries 243,339 35,333
TCL Industries Holdings Co., Ltd. and its subsidiaries 140,150 114,830
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XII Share-based Payments
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
Total amount of the Company’s equity instruments that expired in the current
period
Range of exercise prices of the Company’s stock options outstanding and
remaining contract term at the end of the period
Range of exercise prices of the Company’s other equity instruments outstanding
and remaining contract term at the end of the period
(1) Employee Stock Ownership Plan (Phase III) 2021-2023
According to the Proposal on the Management Measures of the Company’s Employee Stock Ownership Plan
(Phase III) 2021-2023 deliberated and adopted at the Second Extraordinary General Meeting of 2023, and the
Proposal on the Company’s Employee Stock Ownership Plan (Phase III) 2021-2023 (Draft) adopted by the
resolution of the 32nd Meeting of the Seventh-term Board of Directors and the 21st Meeting of the Seventh-term
Board of Supervisors, 64,990,000 shares were granted to no more than 3,600 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 55,640,000 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, 27,210,000 shares were released from lock-up restrictions in 2025. Of these shares,
(2) Employee Stock Ownership Plan 2024
According to the Second Meeting of the Eighth-term Board of Directors, the Second Meeting of the Eighth-term
Board of Supervisors, and the First Extraordinary General Meeting 2024, the Proposal on the Employee Stock
Ownership Plan 2024 of TCL Technology Group Corporation (Draft) was deliberated on, and 117.99 million
shares were granted to no more than 3,600 awardees. Of these shares, 57,720,000 shares were released from
lock-up restrictions during January - June 2026.
(3) Employee Stock Ownership Plan 2025
According to the 11th meeting of the 8th Board of Directors, the 7th meeting of the 8th Board of Supervisors,
and the 3rd extraordinary general meeting of 2025, the Proposal on the 2025 Employee Stock Ownership Plan of
TCL Technology Group Corporation (Draft) was reviewed and approved. Under this plan, the total fund shall
not exceed RMB 920,000,000 and shall be granted to no more than 3,600 eligible participants.
(4) Employee Stock Ownership Plan 2026
Pursuant to the Proposal on the 2026 Medium and Long-term Employee Stock Ownership Plan of TCL
Technology Group Corporation (Draft) and Its Summary, as reviewed and approved at the second extraordinary
general meeting of 2026, the total fund for this Employee Stock Ownership Plan shall not exceed RMB
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XII Share-based Payments (Continued)
(a) Equity-settled share-based payments
The Group determined the fair value of equity
Method of determining the fair value of
instruments on the grant date based on the fair value of
equity instruments on the date of grant
the shares.
On each balance sheet date within the vesting period, the
Group determines the best estimate based on the latest
Basis for determining the number of
number of employees eligible to exercise their options,
exercisable equity instruments
and revise the estimated number of exercisable equity
instruments.
Reasons for significant differences
None
between current and previous estimates
Accumulated amount of equity-settled
share-based payment included in capital RMB 475,090,000
reserves
Total expense recognized for equity-settled
RMB 287,722,000
share-based payments in the current period
(b) The Company has no cash-settled share-based payments.
(c) The Company has no share-based payment modification or termination.
(a) Overview of share-based payments
Total amount of each equity instrument granted by the Company in the current
period
Total amount of each equity instrument exercised by the Company in the current
period
Total amount of the Company’s equity instruments that expired in the current
period
Range of exercise prices of the Company’s stock options outstanding and
remaining contract term at the end of the period
Range of exercise prices of the Company’s other equity instruments outstanding
and remaining contract term at the end of the period
(b) Equity-settled share-based payments
Method of determining the fair value of equity In accordance with the relevant provisions of
instruments on the date of grant Accounting Standards for Business Enterprises No. 11
– Share-based Payment and Accounting Standards for
Business Enterprises No. 22 – Financial Instruments:
Recognition and Measurement, the Company has
adopted the Black-Scholes model to determine the fair
value of equity instruments.
Key parameters of the fair value of equity Historical volatility, risk-free interest rate, and
instruments on the grant date dividend yield
Basis for determining the number of exercisable Estimated based on the performance conditions for
equity instruments each vesting period and the assessment results of the
grantees.
Reasons for significant differences between
None
current and previous estimates
Accumulated amount of equity-settled share-
RMB 2,713,000
based payment included in capital reserves
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
Total expense recognized for equity-settled
RMB 429,000
share-based payments in the current period
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XIII Commitments and Contingencies
Capital commitments
June 30, 2026
Contracted but not provisioned Note 1 15,800,305
Approved by the Board but not contracted Note 2 12,968,364
Note 1 The capital commitments under contractual obligations but not provided for in the current period primarily
consisted of such commitments for construction of investment projects and external investments.
Note 2 The capital commitments approved by the Board of Directors but not under contractual obligations in the
current period primarily consist of such commitments for display business projects.
As of June 30, 2026, apart from the disclosures above, there were no other major commitments that are
required to be disclosed.
As of June 30, 2026, the Company had no material contingent events requiring disclosure.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XIV Events after the Balance Sheet Date
Optoelectronics Bandaoti Display Technology Co., Ltd. held in aggregate by Guangdong Hengjian
Investment Holding Co., Ltd., Guangzhou Chengfa Xingguang Investment Partnership (Limited
Partnership) and Science City (Guangzhou) Investment Group, by way of share issuances and cash
payments. Following the completion of the Transaction, the Group’s total equity interest in Guangzhou
China Star Optoelectronics Bandaoti Display Technology Co., Ltd. increased from 55% to 100%. On
August 19, 2026, the Company received the Reply on Approving the Registration of TCL Technology
Group Corporation’s Asset Purchase via Share Issuance (CSRC Permit [2026] No. 2116) issued by the
China Securities Regulatory Commission. As of the date of disclosure of this report, the underlying asset has
been registered and transferred to the name of the Company, while the newly issued shares have not yet
been listed.
Innovation Corporate Bonds (Digital Economy) (Phase II) (the "Current Bonds") to professional investors.
Tranche 1 of the Current Bonds has a tenor of 3 years, with an issuance size of RMB 1.0 billion and a
coupon rate of 1.85%; Tranche 2 has a tenor of 5 years, with an issuance size of RMB 1.0 billion and a
coupon rate of 2.10%. The issue price is RMB 100 per note.
stipulated in the transaction documents executed by the parties have been satisfied or waived, and the equity
closing was completed on the same date. The relevant proxy voting rights arrangement also took effect
concurrently with the closing. Starting from the third quarter of 2026, the Company will consolidate DAS
Solar into its consolidated financial statements.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XV Other Important Matters
(I) Segment reporting
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:
Display business mainly includes the research and development, manufacturing, and sales of display panels and
(1)
display modules, as well as complete display processing.
New energy photovoltaics and other silicon materials business: mainly includes
(2) the R&D, production and sales of monocrystalline silicon ingots and silicon wafers, cells and modules, and
other silicon materials and devices; the development and operation of photovoltaic power stations.
(3) Distribution business: mainly includes the sales of computers, software, tablet computers, mobile phones, and
other electronic products.
(4) Other businesses: other businesses besides the above, including industrial finance and investment business,
technology development services, and patent maintenance services provided by the company, etc.
Segment assets include all current assets such as tangible assets, intangible assets, other long-term assets, and
receivables attributable to each segment. Segment liabilities include payables, bank loans, and other long-term
liabilities attributable to each segment.
Segment operating results refer to the income generated by each segment (including external transactions
income and inter-segment transaction income), net of expenses incurred by each segment, depreciation,
amortization and impairment loss of assets attributable to each segment, gains or losses from changes in fair
value, return on investment, non-operating income and income tax expenses. Transfer pricing of inter-segment
income is calculated on terms similar to other foreign transactions.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XV Other Important Matters (Continued)
(I) Segment reporting (Continued)
For the six-month period ending June 30, 2026
New energy Other
Display photovoltaics and Distribution businesses and
Total
business other silicon business internally offset
materials business accounts
Operating revenue 56,499,787 14,314,940 17,823,270 10,190 88,648,187
Net profits 4,099,136 (3,457,279) 103,218 1,498,191 2,243,266
Total assets 194,005,508 112,762,644 8,541,435 49,835,382 365,144,969
Total liabilities 117,449,814 77,973,301 6,758,168 35,344,111 237,525,394
Depreciation and
amortization 11,122,524 4,724,988 26,088 65,041 15,938,641
expenses
Capital expenditure 7,297,732 2,618,614 737 892,855 10,809,938
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 57,550,503 13,398,123 14,674,516 (63,138) 85,560,004
Net profits 4,613,425 (4,836,171) 67,956 186,473 31,683
Total assets 220,928,986 124,816,914 8,138,505 46,585,058 400,469,463
Total liabilities 140,268,533 83,049,766 6,512,614 41,296,393 271,127,306
Depreciation and
amortization 11,641,845 4,407,930 23,168 9,460 16,082,403
expenses
Capital expenditure 4,764,762 3,295,997 1,606 251,608 8,313,973
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XVI Notes to the key items presented in the financial statements of the Company
June 30, 2026 December 31, 2025
Bad-debt Accrual Bad-debt Accrual
Amount Ratio Amount Ratio
Allowance Ratio Allowance Ratio
Within 1
year
June 30, 2026 December 31, 2025
Dividends receivable 50,000 -
Other receivables 14,403,878 9,613,847
(1) Dividends receivable
June 30, 2026 December 31, 2025
Shenzhen Dongxi Jiashang
Entrepreneurship Investment Co., Ltd.
(2) Other receivables
(a) Nature of other receivables is analyzed as follows:
June 30, 2026 December 31, 2025
Equity transfer receivables 4,925,128 610
Security and deposits 2,464 2,474
Others 9,476,286 9,610,763
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XVI Notes to Financial Statements of the Parent Company (Continued)
(b) Allowance for doubtful other receivables is analyzed as follows:
Lifetime ECL
Lifetime ECL
(credit impaired)
impaired)
December 31, 2025 1,462 38,685 40,147
Reversal of current
(1) - - (1)
period
June 30, 2026 1,461 - 38,685 40,146
(c) The aging of other receivables is analyzed as follows:
June 30, 2026 December 31, 2025
Amount Ratio Amount Ratio
Within 1 year 11,404,788 78.96% 7,371,233 76.35%
Over 3 years 150,863 1.04% 126,303 1.31%
The outstanding other receivables were mostly current accounts with related parties.
The top five other receivables of the Company amounted to approximately RMB 13,001,202,000 (December
(December 31, 2025: 91.08%).
June 30, 2026 December 31, 2025
Gross Impairment Carrying Gross Impairment Carrying
amount allowance amount amount allowance amount
Associates and joint
ventures (1)
Subsidiaries (2) 70,136,712 - 70,136,712 78,289,037 - 78,289,037
As at June 30, 2026, there are no major restrictions on the realization of investment and the remittance of
return on long-term equity investments.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XVI Notes to Financial Statements of the Parent Company (Continued)
(1) Associates and joint ventures
Increase or decrease in current period
Increase/decrease Investment gains and Other
December 31, Other equity Declared cash dividends or
in investment in losses recognized by comprehensive June 30, 2026
current period equity method income adjustment
Joint
venture
Associate 16,798,128 141,503 1,062,467 28,383 (7,794) (229,548) 17,793,139
Total 17,029,558 141,503 1,049,730 28,383 (7,301) (233,577) 18,008,296
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XVI Notes to Financial Statements of the Parent Company (Continued)
(2) Subsidiary
Decrease in
December 31, Increase in
current June 30, 2026
period
TCL China Star Optoelectronics
Technology Co., Ltd.
TCL Technology Group (Tianjin) Co.,
Ltd.
Shenzhen China Star Optoelectronics
Bandaoti Display Technology Co., Ltd.
TCL Technology Investments Limited 3,465,562 - - 3,465,562
Tianjin Silica Material Technology Co.,
Ltd.
Headquarters of TCL Zhonghuan
Renewable Energy Technology Co., 1,929,733 - - 1,929,733
Ltd.
Headquarters of Zhonghuan Advanced
Bandaoti Technology Co., Ltd.
TCL Technology Group Finance Co.,
Ltd.
Others 3,598,615 2,795,393 (498,972) 5,895,036
For the registered capital of subsidiaries and the Company’s equity interests in the subsidiaries, see Note VIII.
June 30, 2026 December 31, 2025
Equity investments 797,684 398,546
January - June 2026 January - June 2025
Operating revenue Operating cost Operating revenue Operating cost
Core business 10,038 - 10,227 2,288
Non-core business 201,149 80,518 176,239 89,824
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XVI Notes to Financial Statements of the Parent Company (Continued)
January - June January - June
Share of return on investment in joint ventures and associates 1,049,730 865,987
Net income from disposal of long-term investments 528,761 -
Return on holding of held-for-trading financial assets 35,035 82,655
Return on disposal of held-for-trading financial assets 14,736 (2,133)
Dividends from subsidiaries 1,456,911 327,893
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XVII Supplementary Information
January - June 2026 January - June 2025
Gain or loss on disposal of non-current assets (inclusive of
impairment allowance write-offs)
Public grants charged to current profits and losses (except for
public grants that are closely related to the Company's daily
operations, comply with national policies, are granted based on 1,225,850 633,215
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
(59) 18,446
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
- 27,616
been individually tested for impairment
Non-operating income and expenses other than the above 162,932 126,891
Income tax effects (288,122) (84,754)
Non-controlling interests effects (964,278) (376,588)
Non-recurring gains and losses attributable to ordinary
shareholders of the parent company
According to the relevant provisions of the Interpretative Announcement No. 1 on Information Disclosure by
Companies Issuing Securities to the Public - Non-recurring Profits and Losses (Revised in 2023)(Z.J.H.G.G. [2023]
No.65), public grants closely related to the Company’s normal business operations, in compliance with national
policies, enjoyed according to determined criteria, and with a continuous impact on the Company’s profits and losses
shall be presented as recurring profits and losses.
TCL Technology Group Corporation
Notes to the Financial Statements for the Period from January 1 to June 30, 2026
(RMB’000)
XVII Supplementary Information (Continued)
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)
Weighted
attributable to the
average
Item parent company Basic earnings Diluted earnings
return on
during the per share per share
equity
Reporting Period
Net profits attributable to ordinary
shareholders of the Company 3,808,272 6.19% 0.1861 0.1831
Net profits attributable to ordinary
shareholders of the Company after
non-recurring gains and losses 3,139,881 5.11% 0.1534 0.1509
Company Name: TCL Technology Group Corporation
Date: August 27, 2026
