Subtotal of cash generated from financing activities8,612,000,000.003,810,956,000.00
Monetary assets18,648,184,663.0018,648,184,663.00
I Major Changes of Main Items in Financial Statements and Financial Indicators within theReporting Period, as well as the Reasons for the Changes
8. Earnings per share
Share capital13,528,438,719.0013,528,438,719.00
Huizhou Investment Holding Co., Ltd.878,419,747RMB-denominated ordinary stock878,419,747
8Total owners’ equity (RMB)65,853,394,66263,883,145,3403.08
Use rights assets
Lease liabilities
t3 projectThe generation 6 (or G6) LTPS-LCD panel production line of TCL CSOT
Construction in progress35,968,034,536.0033,578,289,802.00
Less: Treasury stock1,952,956,751.001,952,956,751.00
Wuhan CSOT
3. Operating profit (“-” for loss)165,214,545.001,197,088,206.00
Definitions
Unit: RMB
Top 10 unrestricted shareholders
Investment property92,622,685.0092,622,685.00
Customer deposits and interbank deposits1,355,128,509.001,355,128,509.00
Disclosure date of general meeting announcement approving derivative investment (if any)Not applicable
Financial assets purchased under resale agreements
1. Forward forex contracts1,279,23236,0871,546,09048,394-14823.480.73
TCL CSOTTCL China Star Optoelectronics Technology Co., Ltd.
Note: In April 2019, the Company completed the handover of major assets in a restructuring. Therefore, the revenue data of Q1 2020and Q1 2019 are not comparable as the former does not include the January-March 2020 revenue generated by the restructured assets,while the latter comprises the January-March 2019 such revenue. On the same basis after the restructuring, revenue would be up by
Non-operating income and expense other than the above131,273,286Not applicable
5.1.1 Changes caused by remeasurements on defined benefit pension schemes
Inventories5,677,963,123.005,677,963,123.00
Bank’s wealth management productN/ABank of China Principal-Guaranteed Wealth Management- CNYAQKF100,000At fair value through profit or loss-100,000-175100,175Held-for-trading financial assetsSelf-funded
Non-current liabilities:
Top 10 shareholders involved in securities margin trading (if any)None
Short-term borrowings5,736,238,571.006,484,481,271.00
Borrowings from the central bank573,222,113.00573,222,113.00
1. Cash flows from operating activities:
Gain on changes in fair value (“-” for loss)-205,634,246.00-55,490,496.00
Goodwill2,452,186.002,452,186.00
R&D expense
Other comprehensive income-534,081,855.00-534,081,855.00
5.1.4 Changes in the fair value of the company’s credit risks
Item31 March 202031 December 2019
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
Part I Important Notes
Bonds payable16,479,085,461.0016,479,085,461.00
Lease liabilities
Current portion of non-current liabilities1,391,848,421.001,691,963,496.00
Net proceeds from the disposal of subsidiaries and other business units
Taxes payable226,806,037.00229,237,213.002,431,176.00
Net increase in interbank loans obtained
5.1.2 Net profit from discontinued operations (“-” for net loss)
Deferred income tax assets
Interbank loans granted
Accounts receivable financing
Current assets:
Customer deposits and interbank deposits889,638,625.001,355,128,509.00
Net increase in deposits and investments of policy holders
Prepayments486,656,441.00364,422,948.00
th Meeting of the 6
Funding sourceMostly foreign-currency revenue
6.1.4 Changes in the fair value of the company’s credit risks
Item31 March 2020/ Q1 202031 December 2019/ Q1 2019Change (%)Reasons for the Changes
Payments for investments9,033,187,658.007,860,153,161.00
Bank’s wealth management productN/AICBC Wealth Management·Corporate CNY Wealth Management30,000At fair value through profit or loss30,487--32230,809Held-for-trading financial assetsSelf-funded
Short-term borrowings6,484,481,271.006,484,481,271.00
Accounts payable424,224,599.00424,224,599.00
Contractual liabilities133,818,206.00133,818,206.00
Huizhou Investment and Development Co., Ltd.State-owned legal person0.5675,504,587
7. Earnings per share
Board of Directors on 19 March 2019, at which the Proposal on the Adjustment to theUpper Limit of the Share Repurchase Price. As such, the upper limit of the share repurchase price was adjusted from RMB3.80/shareto RMB5.00/share. The Company implemented the share repurchase from 14 February 2019. Up to 10 January 2020, the Companyhas cumulatively repurchased 565,333,922 shares (or 4.18% of the Company’s total share capital) in its special securities account forrepurchases by way of centralized bidding, with the highest trading price being RMB4.17/share, the lowest trading price beingRMB3.13/share, and the average trading price being RMB3.42/share. The total transaction amount was RMB1,933.5965 million(exclusive of trading fees). The share repurchase has been implemented in a process in compliance with the applicable regulationsincluding the Specific Rules of the Shenzhen Stock Exchange for Share Repurchase by Listed Companies. The actual number ofshares repurchased, repurchase price and amount used were in compliance with the repurchase plan approved at the 14
th
Payroll payable1,094,216,685.001,094,216,685.00
Subtotal of cash generated from investing activities1,376,977,331.005,597,406,348.00
Attributable to non-controlling interests-65,214,372.00177,750,862.00
V Securities Investments
Including: Interest payable
Dividends receivable4,833,542,415.004,211,824,115.00
Accounts payable441,590,603.00424,224,599.00
t2 projectThe generation 8.5 (or G8.5) TFT-LCD (including oxide semiconductor) production line of TCL CSOT
Investments in other equity instruments279,883,515.00279,883,515.00
Including: Dividends paid by subsidiaries to non-controlling interests26,392,667.0029,586,633.00
Taxes and surcharges38,902,775.00194,829,143.00
Total non-current assets116,689,362,560.00116,689,362,560.00
Huizhou Investment and Development Co., Ltd.75,504,587RMB-denominated ordinary stock75,504,587
Prepayments97,127,177.0097,127,177.00
Part II Key Corporate InformationI Key Financial Information
Reinsurance payables
Repayments of borrowings7,266,785,974.0010,215,385,719.00
Return on investment (“-” for loss)899,034,332.00351,140,692.00
Intangible assets18,336,269.0019,144,884.00
5.2.1 Net profit attributable to non-controlling interests-137,547,929.00226,989,141.00
Subtotal of cash used in investing activities1,975,291,188.001,997,683,421.00
Bank’s wealth management productN/AChina Development Bank Win-Win CNY Wealth Management Product Tranche 201766650,000At fair value through profit or loss50,753--51151,264Held-for-trading financial assetsSelf-funded
Net cash per share generated from/used in operating activities (RMB/share)0.17000.16562.66
Non-current liabilities:
Lease liabilities
Attributable to owners of the Company as the parent272,148,566.00961,759,058.00
Reinsurance payables
Current portion of non-current liabilities847,326,922.00847,326,922.00
7Total assets (RMB)172,763,657,093164,844,884,9264.80
Other receivables17,129,473,443.0017,129,473,443.00
Including: Preferred shares
VII Investments in Derivative Financial Instruments
□ Yes ■ No
6. Cash and cash equivalents, end of the period18,457,369,023.0022,968,997,607.00
Held-for-trading financial liabilities188,220,097.00188,220,097.00
Handling charge and commission expense
and venture capital and other business of the Company achieved a net profit of RMB0.44 billionand improved the profitability of the Company during the trough of the industry.The epidemic further increased the short term uncertainty of economy. Consumption and demandwere contained. And the environment of the Company deteriorated currently. The Company stuck toits strategy, reduced the cost and controlled the expenses ultimately, strictly controlled the operationrisk, guaranteed the sufficient liquidity, and comprehensively built up the competitiveness andrisk-resistance ability of the Company. In February, TCL CSOT exerted the advantages ofmanagement system and supply chain system, guaranteed t1, t2, and t6 production lines to operateat full capacity, and was the monthly shipment champion of TV panels in the world. t3 in Wuhan isthe largest LTPS single plant in the world, and t4 spent less than one year from lighting the panel ofAMOLED to mass production and shipment to brand clients, making swift improvement in thehigh-end product technology capability in a fast manner. Construction of t7 plant of the Companyproceeded smoothly.Crisis and opportunity are always together. The COVID-19 epidemic also hints the opportunities forthe semi-conductor display industry. On the demand, the life style mainly based on remoteinteraction promotes the fast development of multiple-application display terminals and contents.Video, game, education, life, office and other sub-ecologies are getting more and more mature,which foster the long term demand for household smart TV, gaming monitors, educationwhiteboards, conference whiteboards, and other contents carrier and main interactive interfaces.During the Reporting Period, the Company deepened cooperation with strategic clients, launchedlarge size “smart screen”, “wisdom screen” and other interactive products, jointly promoted the IoTecology construction of multiple scenarios with large size household screens as core application.The market share of 55-inch TV panel of the Company ranked the 1
Trust planSelf-funded80,00070,0000
Administrative expense44,402,485.0059,858,577.00
Short-term borrowings11,187,904,691.0012,069,657,099.00
Unit: RMB’0,000
6.2.2 Changes in the fair value of investments in other debt obligations
st
Net increase in interbank loans granted
5.2.3 Other comprehensive income arising from the reclassification of financial assets
Part IV Significant Events
Repayments of borrowings4,272,903,033.007,080,956,000.00
Cash paid to and for employees56,588,057.0044,495,298.00
2. Operating profit (“-” for loss)734,606,622.0072,542,626.00
Contractual assets
Series No.ItemQ1 2020Q1 2019Change (%)
Central Huijin Asset Management Co., Ltd.206,456,500RMB-denominated ordinary stock206,456,500
5.1.5 Other
Net cash generated from/used in investing activities-9,123,262,761-6,787,262,97334.4%YoY decrease in investments withdrawn
Bank’s wealth management productN/AAgricultural Bank of China-“Huilifeng” Customized CNY Structured Deposit Product for Corporate Clients80,000At fair value through profit or loss-80,000-6080,060Held-for-trading financial assetsSelf-funded
Add: Cash and cash equivalents, beginning of the period17,637,742,929.0025,702,383,482.00
t1 projectThe generation 8.5 (or G8.5) TFT-LCD production line of TCL CSOT
6.2.5 Reserve for cash flow hedges-31,380,198.00-1,824,916.00
Total870,892767,8650
Held-for-trading financial assets9,343,312,6556,074,750,91853.8%Increase in investments in wealth management products purchased
□ Applicable ■Not applicable
Subtotal of cash used in operating activities13,377,503,542.0029,630,322,573.00
5. Net increase in cash and cash equivalents11,532,480,458.003,074,856,639.00
Owners’ equity:
Other non-current liabilities
Taxes paid8,220,063.0018,593,335.00
Attributable to non-controlling interests-202,762,301.00404,740,003.00
Board ofDirectors on 10 January 2019, at which the Proposal on the Repurchase of Certain Public Shares was approved. The Report on theRepurchase of Certain Public Shares was disclosed on 14 February 2019. In view of the trends on the secondary market of stocks, theCompany convened the 15
Credit impairment loss (“-” for loss)995.00
Income from the derecognition of financial assets at amortized cost (“-” for loss)
Tax rebates608,001,845.001,527,267,914.00
Analysis of risks and control measures associated with derivative investments held in Reporting Period (including but not limited to market risk, liquidity risk, credit risk, operational risk, legal risk, etc.)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 trend and predicting the operation (including orders and capital plans), adopts forward foreign exchange contracts, options and interest rate swaps to avoid future exchange rate and interest rate risks. As its business scale changes subsequently, the Company will adjust the exchange rate risk management strategy according to the actual market conditions and business plans. Risk analysis: 1. Market risk: the financial derivatives business carried out by the Group belongs to hedging and trading business related to main business operations, and there is a market risk of loss due to the fluctuation of underlying interest and exchange rates, which lead to the fluctuation of prices of financial derivatives; 2. Liquidity risk: the derivatives business carried out by the Group is an over-the-counter transaction operated by a financial institution, and there is a risk of loss due to paying fees to the bank for the operations of evening up or selling the derivatives below the buying prices; 3. Performance risk: the Group conducts the derivative business based on rolling budgets for risk management, and there is a risk of performance failure due to deviation between the actual operating results and budgets; 4. Other risks: in the case of specific business operations, if the operator fails to finish the prescribed procedures for report or approval, or fails to record the financial derivative business information accurately, timely and completely, it may result in loss of derivative business or
Financial assets sold under repurchase agreements
Fixed assets44,171,551,061.0045,459,070,330.00
stin the world while the market shares of 65-inch and 75-inchproducts ranked 2
Other current liabilities
General reserve360,766.00360,766.00
Less: Corporate income tax63,414,374Not applicable
Long-term borrowings2,110,000,000.002,110,000,000.00
Dividends receivable4,211,824,115.004,211,824,115.00
Notes receivable22,514,486.0022,514,486.00
Assets classified as held for sale
Bank’s wealth management productSelf-funded648,948625,9210
Capital contributions received
Less: Cost of sales186,288,369.00336,142,776.00
Legal matters involved (if applicable)Not applicable
Current portion of non-current liabilities1,691,963,496.001,691,963,496.00
Contractual liabilities141,702,747.00
□ Applicable ■Not applicable
Including: Preferred shares
Unit: RMB
Current portion of non-current liabilities963,448,166.00847,326,922.00
China InnovativeChina Innovative Capital Management Limited
3Net profit attributable to the listed company’s shareholders (RMB)Note408,125,802779,088,389-47.61
4Basic earnings per share (RMB/share)0.03160.0578-45.33
Current portion of non-current assets
Long-term borrowings5,320,000,000.002,110,000,000.00
Less: Treasury stock1,952,956,751.001,952,956,751.00
OtherSelf-funded26,94426,9440
Accounts receivable510,818,457.00445,089,599.00
Administrative expense321,790,541900,923,674-64.3%Asset restructuring
Net increase in customer deposits and interbank deposits-465,489,884.00-260,489,195.00
Expenditure on policy dividends
Other equity instruments
Indicate whether there is any retrospectively restated datum in the table below.
Settlement reserve
Net cash generated from/used in financing activities4,169,336,448.00-4,244,207,936.00
Reinsurance premium expense
Total equity attributable to owners of the Company as the parent30,111,946,237.0030,111,946,237.00
Oil and gas assets
7. Total comprehensive income69,386,265.001,366,499,061.00
Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs)270,735,649Not applicable
Non-current assets:
Other receivables3,568,442,598.002,750,041,514.00
Accounts payable11,321,827,555.0011,549,133,141.00
Deferred income51,561,600.0051,561,600.00
Payables for acting trading of securities
Highly
8.2 Diluted earnings per share0.03020.0576
Bank’s wealth management productN/AAgricultural Bank of China “Anxin Deli” Directional RMB Wealth Management Product20,000At fair value through profit or loss20,321-20720,528Held-for-trading financial assetsSelf-funded
Current liabilities:
Part IV Significant Events ...... 17
Share capital13,528,438,719.0013,528,438,719.00
Gain on changes in fair value-205,634,246-55,490,496270.6%Changes in the fair value of financial instruments
R&D expense971,078,8411,548,470,972-37.3%Transfer-out due to reaching the intended use in the Current Period
Capital reserves5,716,667,384.005,716,667,384.00
5. Net profit (“-” for net loss)270,577,873.001,006,077,530.00
Finance costs269,483,384.00174,605,997.00
Other non-current financial assets1,540,912,643.001,540,912,643.00
Long-term payroll payable23,017,619.0023,017,619.00
Star Century Enterprises LimitedForeign legal person0.6790,532,34790,532,347
Explanation of why the Company reclassifies as recurrent a non-recurring gain/loss item defined or listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-Recurring Gain/Loss
Other comprehensive income56,064,337.0056,064,337.00
Investments in other debt obligations
7.2 Diluted earnings per share0.06460.0060
Item31 March 202031 December 2019
Bonds payable16,479,085,461.0016,479,085,461.00
Tax rebates332,021.00
Oil and gas assets
Including: Preferred shares
(I) Semi-conductor Display and Material BusinessDuring the Reporting Period, TCL CSOT overcame difficulties and challenges, deployed themanagement advantages, and kept on expanding the market share. CSOT achieved sales area of 7.1million square meters, up by 53% year-on-year, achieved revenue of RMB9.14 billion, up by 25.3%year-on-year, and EBITDA was RMB2.19 billion, up by 6.15% year-on-year. The prices of largesize panel saw an increase but were still low in the cycle. Combined with impact of the COVID-19,TCL COST had a deficit of RMB0.174 billion during the Reporting Period.The large size panel production lines of TCL COST are all in Shenzhen, which are less affected byCOVID-19. With the excellent management ability and the supply chain system, t1, t2 and t6production lines kept operating at full capacity, achieved sales area of 6.88 million square meters,up by 58% year-on-year, along with the sales volume as 11.912 million pieces, up by 27%year-on-year. The sales volume and area of LCD TV panels in February were the 1
6.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method
Gain equal to the amount by which investment costs for the Company to obtain subsidiaries, associates and joint ventures are lower than the Company’s enjoyable fair value of identifiable net assets of investees when making investments--
Cash used in other investing activities
5.1.1 Net profit from continuing operations (“-” for net loss)270,577,873.001,006,077,530.00
Notes payable1,802,949,640.001,720,401,552.00
Other current assets5,911,827,639.005,911,827,639.00
Bonds payable19,475,871,500.0016,479,085,461.00
Less: Income tax expense25,846,940.00213,340,303.00
Contractual amountActual amountContractual amountActual amountContractual amountActual amount
Fully diluted earnings per share based on the latest total share capital above:
China Ray
Other payables16,329,492,284.009,347,609,813.00
The total share capital at the end of the last trading session before the disclosure of this Report:
Cash generated from other financing activities
Total current liabilities17,292,826,752.0017,292,826,752.00
Financial assets sold under repurchase agreements
Total current assets48,155,522,366.0048,155,522,366.00
Non-current assets:
Less: Non-operating expense7,636.00
Non-recurring gains and losses:
Monetary assets15,532,031,977.003,966,899,016.00
Retained earnings8,119,832,872.008,119,832,872.00
Total liabilities and owners’ equity79,511,089,549.0066,126,950,291.00
Goodwill
Total owners’ equity31,044,533,661.0030,170,458,859.00
ItemQ1 2020Note
Non-controlling interests35,459,445,026.0033,771,199,103.00
HighlyHighly Information Industry Co., Ltd., a majority-owned subsidiary of the Company listed on the National Equities Exchange and Quotations (stock code: 835281)
Situation where the principal is expectedly irrecoverable or an impairment may be incurred:
4. Effect of foreign exchange rate changes on cash and cash equivalents-3,131,768.00-30,210,032.00
rdin the world. As for the t4 production line, after the foldable screen wasshipped to international brand clients, the double-curved perforated screen was mass produced andshipped to the world famous phone makers for their flagship products.Looking forward, the influence of the overseas epidemic situation is uncertain, which will causesome impact on the demand of the industry. However, the epidemic also accelerates the exit ofinefficient production capacity of the industry, and generates new demands. In the long run, therestructuring and integration of the global industry will speed up, and industry concentration willfurther increase. With the resumption of the household large screen market and the fast growth ofcommercial display, the supply and demand of the industry will gradually resume its balance, with agood long term development prospect. In 2020, the large size panel business of TCL CSOT willcontinue to improve product positioning and market share in addition to maintaining leadership inscale, technology and efficiency. In the small and mid-size panel business, LTPS will continue togrow by new customers and products to optimize the business. The flexible AMOLED will be massproduced, and the breakthrough will be made in new business model and high-end products. TCLCSOT will keep on promoting ultimate cost reduction and profit increase, improve efficiency,further optimize product and customer structure, actively develop video interaction and commercialproduct business, increase operating profit, and guarantee strong growth in sales area and revenue.(II) Industrial Finance and Investment BusinessTCL Financial mainly includes the Company’s finance and the supply chain finance. As theoperation of the business was affected by the COVID-19, the finance business focused on theliquidity, currency risk and active management of assets. The supply chain finance business tookfully advantage of Internet platform, and continuously provided high quality and convenientreceivables financing services with preferential prices for small and medium enterprise partnersaffected by the epidemic. The industrial finance business will stick to the service concept of“partner finance”, focus on real industrial needs, and constantly enrich and deepen service.TCL Capital seeks investment opportunities in key fields of technological industries, including new
Provisions
6.1.3 Changes in the fair value of investments in other equity instruments-24,540,407.00