[年报]TCL科技(000100):2022年年度报告（英文版）
原标题:TCL科技:2022年年度报告（英文版） ANNUAL REPORT 2022 March 30, 2023 Breaking the Adversity with Strengthened Basic Competitiveness ANNUAL REPORT 2022 Chairman's Statement 2022 was a year full of opportunities and challenges. 2022 witnessed dramatic changes in the global political and economic situation, from the outbreak of the Russia-Ukraine war, rising inflation, sluggish market demand, to deteriorating trade environment, and significant economic slowdown. These multiple factors brought tremendous challenges to the development of the high-tech manufacturing industry. Due to the fluctuation of both industrial chain and supply chain, manufacturers worldwide had to shift their focus from efficiency to both efficiency and safety. The global industrial pattern was restructured. Under this background, China's high-tech manufacturing industry also faced pressure of transformation and upgrading. We have built our competitive advantages in the fields of semiconductor display and new energy photovoltaic, and will take the opportunities of global energy transition and strengthening high-tech industrial chain, actively respond to risks and turn crises into opportunities. We will continue to achieve high-quality corporate development with technological innovation and advantages of economies of scale. Facing the complex business environment of 2022, the Company maintained its strategic focus, built a solid bottom line, and advanced steadily. The Company achieved a revenue of RMB166.55 billion, an increase of 1.8%, a net profit of RMB1.79 billion, with the net profit of RMB260 million attributable to the Company’s shareholders, and net operating cash inflow of RMB18.43 billion, continuously ensured its stable operation. Affected by the global economic downturn, the demand from the end-users weakened, the prices of large-sized panels dropped significantly, and the operating performance of the semiconductor display industry hit a record low during the Reporting Period. The Company achieved a year-on-year increase in the sales area of semiconductor displays at 8.3%, and earned a revenue of RMB65.72 billion, a year-on-year decrease of 25.5%, saw a full-year loss. Facing the operational challenges, TCL CSOT upheld its bottom-line thinking, and pushed ahead with structural changes such as organizational changes and management optimization. With strengthened advantages and shored up weakness parts, TCL CSOT accelerated the adjustments to product structures, actively explored emerging areas, and promoted balanced business development. In its large-size product business, TCL CSOT has consolidated its leading position in TV panels with a high-end product strategy, and vigorously developed commercial displays such as interactive whiteboards, digital signs, and video walls. TCL CSOT ranked first in the world in the field of shipment of 8K and 120HZ high-end TV panels and interactive whiteboards. As production lines dedicated to IT products, the t9 adopted oxide semiconductor displays kicked off its SoP in Guangzhou ahead of schedule, and the G6 LTPS production line in Wuhan proceeded as planned. Small and medium-sized products further consolidated the business development, all of which would drive a new round of growth of TCL CSOT. With increasing transformation of global energy structure, the new energy industry has ushered in historic opportunities. In response to the rapid development of the new energy industry, TCL Zhonghuan continued to play its leading advantages in advanced capacity layout, technological innovation, and cost efficiency, as well as the activation effect of institutional mechanisms. In 2022, TCL Zhonghuan achieved a significant increase in its operating performance again, with a revenue of RMB67.01 billion, a year-on-year increase of 63.0%, and a net profit of RMB7.07 billion, a year-on-year increase of 59.5%. Ningxia Zhonghuan Phase VI project increased its capacity, and the wafer projects were put into production in Tianjin and Yixing successively, with the advantageous capacity rapidly increased. TCL Zhonghuan’s capacity for photovoltaic crystalline silicon was increased to 140GW, making it the world's largest silicon wafer supplier. The highly-efficient laminated tile module intelligent manufacturing projects in Jiangsu and Tianjin have been entered the SOP, with a steady increase in the market share. Through deepening collaboration with Maxeon in terms of the supply chain, production, and channels, TCL Zhonghuan has accelerated its global business layout. Affected by the economic environment, both Highly and Tianjin Printronics experienced a slight decline in their operating performance, but they maintained strong potentials for recovery. The investment business continues to focus on business layout and exploration alongside the industrial chain in support of the Company’s main businesses. The Company took product technology innovation as the core driving force, and empowered manufacturing transformation and upgrading with digitalization. The Company insisted on investing in cutting-edge technology fields such as new displays, new energy, and semiconductor materials. During the year, the Company invested RMB10.78 billion in research and development, a year-on-year increase of 22.9%. In 2022, the Company made 659 new applications for PCT patents, and 2,244 applications for patents of technologies and material in the field of quantum dot electroluminescence, ranking second in the world. The semiconductor display business promoted the digitalized management in the whole production process and entire product cycle. The Company has established an industry-leading Industry 4.0 system for the new energy photovoltaic business, leading the manufacturing revolution in the industry. In the future, global economic development still faces uncertain factors, and the restructuring of the political and economic patterns will intensively affect the economic trends of China and the rest of the world. At present, China is dedicated to high-quality economic development and independent of the high-tech industry. In the face of the complex and volatile internal and external environment, the Company will focus on the pan-semiconductor industry that is “high-tech, asset-heavy, and long- term” based on its goal of leading in the world, solidly achieve the pre-set strategic objectives and business strategies, adhere to the bottom-line business thinking, ensure strong risk prevention, and break the adversity with strengthened competitiveness. The semiconductor display industry has moved downwards from the middle of 2021, and stayed at the historic bottom for a long time due to the economic slowdown. Leading enterprises increasingly focus on the supply-demand balance and industrial profits. With the industry integration, the Matthew effect is becoming more prominent, and the industrial pattern becomes healthier and more reasonable. The economy and demand are expected to stabilize in the near future, and the industry is expected to rebound. The Company, guided by the 9225 Strategy, will continue to optimize the business, product, and customer structures for its semiconductor display business. With the SoP of t9 production lines based on medium-sized display panels featuring high added value, and the orderly progress of LTPS 6-gen production line, which mainly produces medium and small-sized display panels, TCL CSOT will significantly improve its competitiveness in terms of business and product portfolio. Driven by the transformation of the global energy structure and the goal of carbon peaking and carbon neutrality, the new energy industry has entered a stage of rapid development. In terms of the new energy photovoltaic business, the Company will further expand the technological and product advantages of G12/N silicon wafers, accelerate the layout of advantageous capacity, and cooperate with global partners to expand overseas markets. TCL Zhonghuan will provide an ongoing growth engine to the Company. Several projects jointly invested by the Company and partners have been launched, including 100 thousand tons of granular silicon, silicon-based materials and 10 thousand tons of electronic polysilicon, which will further improve the Company’s layout in the new energy photovoltaic and semiconductor material industry chain and enhance the stability of the Company’s industry chain. The manufacturing industry acts as the backbone of the national economy, while high-tech industries represent national competitiveness. Being confident in the future development, we will focus on core segments and drive the healthy corporate development in support of the high-quality development of the industry and China’s manufacturing industry. I would like to express my sincere gratitude for the trust of all our shareholders, for the support from all our partners and users, as well as for the efforts of all employees! March 30, 2023 Part I Important Notes, Table of Contents and Definitions The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors, supervisors and senior management of TCL Technology Group Corporation (hereinafter referred to as the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents of this Report and its summary, and shall be jointly and severally liable for any misrepresentations, misleading statements or material omissions therein. Mr. Li Dongsheng, the Chairman of the Board, Ms. Li Jian, the person-in-charge of financial affairs (Chief Financial Officer), and Mr. Peng Pan, the person-in-charge of the financial department, hereby guarantee that the financial statements carried in this Report are factual, accurate and complete. All the Company’s directors attended the Board meeting for the review of this Report and its summary. The future plans, development strategies or other forward-looking statements mentioned in this Report and its summary shall NOT be considered as promises of the Company to investors. Therefore, investors are kindly reminded to pay attention to possible investment risks. The Board has approved a final plan for the profit distribution and conversion of the capital reserve to the share capital as follows: based on the Company’s share capital as at March 30, 2023, i.e., 17,071,891,607 shares, the capital reserve is to be converted into capital on a basis of 1 share for every 10 shares to all the shareholders. After the conversion, the total share capital of the Company will be changed to 18,779,080,767 shares. Neither cash dividends or bonus shares will be distributed this year. Where any changes occur, before the implementation of the dividend plan, to the total share capital of the Company due to any convertible bonds-to-stock programs, share repurchases, exercises of equity incentives, new share issues in refinancing, etc., the dividend will be adjusted according to the principle of “adjusting the total conversion amount under the same conversion ratio”, subject to the actual conversion amount. This Report and its summary has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail. Table of Contents Part I Important Notes, Table of Contents and Definitions ............................ 6 Part II Corporate Information and Key Financial Information .................. 11 Part III Management Discussion and Analysis ............................................... 16 Part IV Corporate Governance ......................................................................... 46 Part V Environmental and Social Responsibility ........................................... 70 Part VI Significant Events .................................................................................. 77 Part VII Changes in Shares and Information about Shareholders ........... 103 Part VIII Bonds .................................................................................................. 112 Part IX Financial Report .....................................................错误!未定义书签。 Documents Available for Reference (I) The financial statements signed and stamped by the person-in-charge of the Company, the Chief Financial Officer and person-in-charge of the financial department. (II) The original of the auditor’s report with the seal of the accounting firm, and signed and stamped by CPAs. (III) The originals of all company documents and announcements that were disclosed to the public during the Reporting Period. Definitions
Part II Corporate Information and Key Financial Information I. Corporate Information
The independent audit firm hired by the Company
√ Applicable □ Not applicable
□ Applicable √ Not applicable VI. Key Accounting Data and Financial Indicators Indicate whether there is any retrospectively adjusted or restated datum in the table below. √ Yes □ No Reason for retrospective adjustment or restatement: In accordance with the Interpretation No. 15 of the Accounting Standards for Business Enterprises issued by the Ministry of Finance, the Company implemented related requirements and retroactively adjusted relevant items of the financial statements as at the beginning of the year and the same period of the previous year. Such change in accounting policies has no material impact on the Company’s financial position and operating results.
is negative and the audit report of the latest year shows the company's ability to continue as a going concern □ Yes √ No The net profit before or after the deduction of non-recurring gains and losses, whichever is lower, is negative √ Yes □ No
1. Differences in Net Profit and Equity under CAS and IFRS □ Applicable √ Not applicable 2. Differences in Net Profit and Equity under CAS and Foreign Accounting Standards □ Applicable √ Not applicable 3. Reasons for Accounting Data Differences Above □ Applicable √ Not applicable VIII. Major Financial Indicators by Quarter Unit: RMB
disclosed in the Company’s quarterly or interim reports. □ Yes √ No IX. Non-Recurring Gains and Losses √ Applicable □ Not applicable Unit: RMB
□ Applicable √ Not applicable Explanation of defining the non-recurring profit and loss items that which is listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-Recurring Gain/Loss as recurring profit and loss items □ Applicable √ Not applicable Part III Management Discussion and Analysis I. Company-related industry outlook in the reporting period Since 2022, the international political and economic patterns have been restructured, protectionism and geopolitics have intensified the trend of backlash against globalization, and inflation pressures have led to tightened monetary policies in major developed economies, increasing uncertainty in global economic development. Facing increasingly severe business environment, TCL Tech has adhered to its strategic focus and maintained a stable operation. During the Reporting Period, TCL Tech achieved a revenue of RMB166.55 billion, a year-on-year increase of 1.8%; a net profit of RMB1.79 billion, a year-on-year decrease of 88.0%; and a net profit of RMB260 million attributable to the shareholders of listed companies, and net operating cash flow of RMB18.43 billion. The main reasons for the decline in the Company’s performance are: the downturn in the semiconductor display industry, a significant drop of product prices. The Company achieved a revenue of RMB65.72 billion from the semiconductor display business in 2022, a year-on-year decrease of 25.5%, with a steady increase in shipments and the market share. The Company firmly occupied the second largest TV panel market share in the world. The production line for oxide semiconductor displays positioned as IT products has been put into production in Guangzhou, supporting the accelerated growth of medium-sized product businesses. Facing the downward cycle of the industry, TCL CSOT has increased confidence in development, actively optimized its capacity structure, and improved its business portfolio, well prepared for future development. New energy photovoltaics keeps sound momentum under the policy of carbon peaking and carbon neutrality. However, industry competition was increasingly intensifying, upstream raw material prices fluctuated, and excess earnings further concentrated in enterprises with stronger comprehensive competitiveness. With the global industrial restructuring, China's semiconductor industry has ushered in a golden opportunity of transformation and upgrading. TCL Zhonghuan gives its leading advantages in product and process technologies into full play, accelerates industrial transformation, takes a lead in the innovation and upgrading of the manufacturing industry and boosts high-quality development of China's economy. During the reporting period, TCL Zhonghuan achieved a revenue of RMB67.01 billion, a year-on-year increase of 63.0%, and a net profit of RMB7.07 billion, a year-on-year increase of 59.5%. The Company has always been committed to the manufacturing industry based on its strategy, and has gradually built long-term strategic planning and management capabilities, operating capabilities across cycles, and core competitiveness for global operations. Strengthening the competitiveness based on core businesses, optimizing competitive strategies and seeking business improvement, and promoting the healthy and sustainable development of the industry. In the face of economic downturn and intensified industrial competition, the Company upheld the bottom-line business thinking. During the Reporting Period, operating cash inflow was RMB18.43 billion, and the capital structure remained stable. Facing fluctuations in demands for semiconductor displays, the Company emphasizes industry supply-demand balance and corporate profitability to continuously optimize competitive strategies and improve economic efficiency. In the fields of new energy photovoltaic and semiconductors, the Company will continue to give play to the advantages of its advanced capacity and the Industry 4.0 platform, and continue to lead the high-quality development of the industry. Technological innovation driven by forward-looking research and development, comprehensively promoting the digital and intelligent transformation, and committed to high-quality corporate development. The Company focuses on technological productivity and prospective investment. In 2022, the Company invested RMB10.78 billion in R&D, a year-on-year increase of 22.9%. The Company filed 659 new international applications for patents under the PCT, a total of 14,741 applications filed. The Company demonstrates world-leading technological capacity in the fields such as semiconductor display, new energy photovoltaic and semiconductor materials. The number of its applications for patents of technologies and material in the field of quantum dot electroluminescence has reached 2,244, ranking second in the world. The export market share of its G12 large-sized and highly efficient N-type silicon wafers ranked first in the world. The Company continues to lead the photovoltaic industry in terms of the process and technology upgrading of thinning and thin wiring. The Company has deeply integrated digitalization and advanced manufacturing, achieved dynamic management throughout the full production process of semiconductor displays and the entire life cycle of products. The Company takes a lead in the industry in terms of flexible manufacturing capabilities and quality consistency of new energy photovoltaics, and continues to promote comprehensive upgrading of industry digitization and intelligence. Based on the “dual circulation” strategy, actively exploring overseas markets, and integrating localized operations into the global industrial chain. Facing adjustments and restructuring of the global supply chain, the Company has strengthened its market operations in China, while actively exploring overseas markets. From exporting products to exporting industrial capabilities, the Company has built a global layout of industrial chains and supply chains. In the field of semiconductor displays, the India Factory of TCL CSOT has been put into operation, and will continue to strengthen its global strategy in the production, marketing, and research process in the future. In the field of new energy photovoltaics, TCL Zhonghuan actively expands its global presence. cell and module factories built in Malaysia, the Philippines, Mexico, and other places. In a new round of technological reform and industrial upgrading, the digital economy keeps growing around the world, the "Carbon Peaking and Carbon Neutrality" trend accelerates the new energy transformation, the semiconductor industry continues to see an increase of localization, and China's technology industry ushers in a golden opportunity of rapid development. Facing the opportunities, the Company will adhere to the bottom line of business, drive development with innovation, and actively improve the global industrial layout. TCL Tech will continue to focus on the national strategic industry that emphasizes high technology, heavy assets, and a long cycle. With the mission and vision of “leading technology and mutually beneficial cooperation”, TCL Tech will meet the requirements of "improving operational quality and efficiency, enhancing strengths to shore up weaknesses and accelerating global expansion as well as innovation-driven development” to take a lead in the world. II. Main businesses of the Company during the reporting period Based on the semiconductor display business, new energy photovoltaic and semi-conductor materials as the main business, the Company will continue to optimize its business structure, and further focus on its main businesses, to achieve the strategic goal of global leadership in its two core industries. （未完）  |