[年报]TCL科技(000100):2023年年度报告（英文版）
原标题:TCL科技:2023年年度报告（英文版） ANNUAL REPORT 2023 April 28, 2024 Amid rapids we beat the waves and sail steadily to reach far ANNUAL REPORT 2023 Chairman's Statement Amidst a tightening financial environment, intensifying geopolitical conflicts, and rapid restructuring of global supply chain, the world economy slowed down in 2023. In the wake of opportunities amid challenges, the economic restructuring brought new impetus to the transformation and upgrading of the technology industry, and the evolving global energy landscape further highlighted the importantly strategic position of the new energy industry. With the strategic goal of becoming a global leading technology conglomerate, the Company pivoted on the development of high-tech, long-cycle, and capital-intensive businesses, strengthened the leading edge of its core businesses in display and new energy photovoltaics. Under the backdrop of a complex operating environment, the Company cemented its foundation, enhanced risk management capabilities, pursued extreme cost efficiency, and drove development through technology innovation. In 2023, the Company achieved a revenue of RMB174.367 billion, up 4.69% year on year; net profits of RMB4.781 billion, up 167.37% year on year; net profit attributable to shareholders of the listed company of RMB2.215 billion, up 747.60% year on year; and net operating cash flow of RMB25.315 billion. During the Reporting Period, the sales of display at user-end market remained sluggish. On the supply side, the industry structure continued to optimize, competition tended to be benign, and the prices of major products rebounded amid stabilization. The Company's display business kept optimizing business strategies, and continued to implement the high-end strategy, with a stable growth in the market share of major products. TCL CSOT remained top 2nd globally by its market share of TV products, while its market share of e-sports monitors and LTPS tablet products ranked first globally. The t9 production line, positioned at mid-sized IT and vehicle-mounted display products, started serial production and shipments, and the proportion of OLED high-end product shipments rose quickly. During the Reporting Period, the display business achieved a revenue of RMB83.655 billion, with a year-on-year increase of 27.26%, and a net profit of negative RMB7 million, with a year-on-year improvement of RMB7.618 billion, among which a net profit of RMB3.441 billion was recorded in the second half of 2023, indicating steadily improving profitability. In 2023, the global new energy photovoltaic industry and corporate development embarked on a new pattern. Affected by the capacity centrally released alongside the industrial chain, the supply and demand was unbalanced, with significant decline of product prices, and some low-efficient capacity faced the pressure of elimination. Overall, the industry structure was expected to be optimized. During the Reporting Period, TZE recorded a revenue of RMB59.146 billion, down by 11.74% year on year. Under the influence of the decreasing product price, loss from investees, provision for impairment loss and other factors, TZE reported a year-on-year decrease of 44.88% in net profit to RMB3.899 billion throughout the year. In the face of challenges, TZE maintained its strategic resolve and strengthened its competitiveness. On the one hand, it leveraged its differentiated advantages in G12, N-type silicon wafers, shingle components and intelligent manufacturing, and accelerated industry integration through technological innovation so as to pass through industrial cycles. On the other hand, TZE actively evaluated and explored the feasibility on localized manufacturing (e.g. the United States, Europe, and the Middle East) in key countries or regions around the world, and promoted the operational improvement of Maxeon to effectively use its patented technology and unique advantages in overseas markets with entry barriers. TZE continued to facilitate its efforts to develop photovoltaic business and localized manufacturing on the international arena, seized the global opportunities for the development of the new energy industry, and achieved a sustainable growth. During the Reporting Period, the Company sustained robust operations and made steady progress in other business segments. The Company has always emphasized research and development (R&D) investments in cutting-edge technologies and commercial application, with a focus on innovation to drive business transformation and upgrading. During the Reporting Period, the Company invested RMB10.309 billion in R&D, accounted for 5.91% of the Company's revenue. In 2023, the Company filed 590 new PCT applications, in total of 15,331 applications applied. Notably, the Company ranked second globally in terms of patent applications in the field of quantum dot displays. Furthermore, through continuous technological innovation, process advancements, and a strategic shift towards Industry 4.0 manufacturing, TZE has built its unique competitive edges in large-size, thin-film, and N-type silicon wafers. To implement the technology ecosystem strategy, the Company has proactively technology ecosystem serves as a cornerstone for the Company's continued technological development. Looking ahead, with intensive integration of several promising techonologies, we will anticipate a surge of novel display applications and immersive scenarios, which will propel the growing demands in display industry. The inter-country transfer of LCD industry has gradually drawn to an end, and the competitive landscape tends to stabilize. Companies are transitioning from a scale-driven growth model to a high-quality development stage fueled by technological innovation, product upgrading, and an eco-system layout. The Company's display business aims at becoming a "world-leading provider of display solutions". To achieve this, we are implementing a comprehensive strategy that optimizes our business and product structure, strengthens our operational foundation, enhances operational excellence, differentiates our values, and drives continuous improvement in operational efficiency. As climate change and energy issues escalate into pressing global challenges, there's a growing consensus on the urgent need to accelerate the green and low-carbon transformation of the energy sector. The photovoltaic industry will remain at the bottom of the market cycle in the near to medium term, featuring severely unbalanced supply and demand, acceleration of product and technology transformation, and elimination of outdated production capacity driven by the Matthew effect. Taking "ranking No.1 in global silicon wafer market share and achieving comprehensive global leadership" as the strategic vision, the Company's new energy photovoltaic business sticks to technological innovation, expands the leading edge in advanced production capabilities, strategically strengthens a layout across the photovoltaic industry chain, and capacity building worldwide, so as to go through the cycle by relative competitiveness and achieve a sustainable growth. As a crucial pillar of the national economy, the manufacturing sector plays a key role in driving economic transformation and development. Technological manufacturing is especially vital for fostering economic transformation and upgrading, and nurturing new engines of growth. The Company remains focused on its core businesses in displays and new energy photovoltaics, unwavering in its pursuit of global leadership. With the courage of "venturing midstream and striving to win", embracing a culture of "relentless perseverance and decisive action", the Company guides its business units to solidify their competitive edges, ensuring steady progress and positioning the Committed to creating value for shareholders, the Company has a long-standing tradition of maintaining a prudent dividend policy. Following this commitment, the Board of Directors proposes a dividend of RMB0.80 per 10 shares for 2023, sharing the Company's growth success with all shareholders. 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! April 28, 2024 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 Ms. Jing Chunmei, the person-in-charge of the financial department, hereby guarantee that the financial statements carried in this Report are factual, accurate and complete. All the Company's directors attended the Board meeting for the review of this Report and its summary. The future plans, development strategies or other forward-looking statements mentioned in this Report and its summary shall NOT be considered as promises of the Company to investors. Therefore, investors are kindly reminded to pay attention to possible investment risks. The profit distribution plan approved by the meeting of the Board of Directors is as follows: For every 10 shares held, shareholders will receive a cash dividend of RMB0.8 (including tax) based on the total number of outstanding shares of 18,779,080,767(Any repurchased shares held by the Company upon profit distribution are exclusive of the distribution), without bonus shares or shares converted from capital reserve. 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. Content Part I Important Notes, Table of Contents and Definitions .................................... 6 Part II Corporate Information and Key Financial Information .......................... 10 Part III Management Discussion and Analysis ...................................................... 15 Part IV Corporate Governance ............................................................................... 53 Part V Environmental and Social Responsibility ................................................... 76 Part VI Significant Events ........................................................................................ 85 Part VII Changes in Shares and Information about Shareholders .................... 103 Part VIII Preferred Shares ..................................................................................... 112 Part IX Bonds .......................................................................................................... 113 Part X Financial Report…………………………………………………………..120 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
1. Shares were converted from capital reserve during the Reporting Period. The Company recalculated the basic earnings per share and diluted earnings per share in accordance with accounting standards and other regulations. 2. In accordance with the requirements of the Interpretations of Accounting Standards for Business Enterprises No. 15, Interpretations of Accounting Standards for Business Enterprises No. 16, and Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-Recurring Gain/Loss (Revised in 2023), the Company has implemented the relevant provisions. These adjustments have no material impact on the Company's financial position and operating results. The net profit before or after the deduction of non-recurring gains and losses in the latest three accounting years, whichever is lower, is negative and the audit report of the latest year shows the company's ability to continue as a going concern □Yes ?No The net profit before or after the deduction of non-recurring gains and losses, whichever is lower, is negative □Yes ?No VII. Accounting Data Differences under China's Accounting Standards for Business Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign Accounting Standards 1. Differences in Net Profit and Equity under CAS and IFRS □ Applicable ?Not Applicable There is no difference in net profit and net assets between the financial statements prepared in accordance with International Accounting Standards (IAS) and Chinese Accounting Standards (CAS) for the Reporting Period of the Company. 2. Differences in Net Profit and Equity under CAS and Foreign Accounting Standards □ Applicable ?Not Applicable There is no difference in net profit and net assets between the financial statements prepared in accordance with foreign accounting standards and Chinese Accounting Standards (CAS) for the Reporting Period of the Company. 3. Reasons for Accounting Data Differences Above □ Applicable ?Not Applicable VIII. Major Financial Indicators by Quarter Unit: RMB
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 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 which is 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. Part III Management Discussion and Analysis I. Company-related Industry Outlook During the Reporting Period In 2023, the international political and economic situation was complex and volatile, with ongoing geopolitical conflicts. The global industrial supply chain faced a restructuring, further exacerbating economic fragmentation. Meanwhile, some economies implemented tight monetary policy, which further slowed down global economy. In response to the complicated and ever-changing challenges, the Company continued to focus on the development of display business and new energy photovoltaic business, enhance the resilience of its business, and optimize its competitive edge in pursuit of high-quality sustainable development. In 2023, TCL TECH. achieved a revenue of RMB174.367 billion, up 4.69% year-on-year; net profit of RMB4.781 billion, up 167.37% year-on-year; net profit attributable to shareholders of the listed company of RMB2.215 billion, up 747.60% year-on-year; and a net operating cash flow of RMB25.315 billion. Major factors that influenced the Company's performance included: the positive turnaround of the supply-demand relationship in the display industry, the steady price appreciation of mainstream products, the Company's proactive optimization of business strategies, improving business structure, and significantly improved profitability. During the Reporting Period, the display business achieved a revenue of RMB83.655 billion, with a year-on-year increase of 27.26%, and a net profit of negative RMB7 million, with a year-on-year reducing loss of RMB7.618 billion. The display business turned losses into profits in Q3 2023 and continued to achieve strong profitability in Q4 2023, which resulted in a total profit of RMB3.441 billion for H2 2023. Fueled by China's "Dual Carbon" strategy, demand in the new energy photovoltaic industry maintained growth. However, industry-wide supply-demand imbalances led to a decline in product pricing. Furthermore, the TZE's performance was impacted by the investee Maxeon, such as investment losses associated with the Maxeon, as well as long-term equity investments and financial assets recognized as asset impairment loss and negative fair value change, respectively. As a result, TZE reported a revenue of RMB59.146 billion for the Reporting Period, down 11.74% year-on-year; a net profit of RMB3.899 billion, reflecting a year-on-year decline of 44.88%. Leveraging technological innovation as a primary driver, the Company is poised for building a robust portfolio of proprietary and cutting-edge technologies to ensure sustained industry leadership and drive continuous industrial upgrading. During the Reporting Period, the Company invested RMB10.309 billion in R&D, and filed 590 new PCT applications, for a total of 15,331 applications applied. The Company's display business strategically amplified R&D investments in ultra-large-sized, ultra-high-resolution, high refresh rate, and flexible display technologies. Establishing new-type display technology and application innovation as its core competitivenesses, the Company strove toward the high-end of the value chain. The Company's new energy photovoltaic business focused on groundbreaking innovation in solar cell technology with independently developed intellectual property rights, and led the industry transition towards significantly improved energy conversion efficiency through its long-term technological accumulation, ultimately securing high-quality development. The Company ensured a steady and sustainable market position by fortifying core competencies and establishing a robust operational foundation, as well as optimizing production capacity and product structure. In conjunction with stable competition structure in the display industry, leading manufacturers posses an advantage in terms of economies of scale. During the Reporting Period, the Company strategically realigned its production capacity and product structure on the basis of incremental markets and continuously increased its market share, with its TV panel shipments ranking No. 2 globally, MNT panel shipments jumping to No. 3 globally, and flexible OLED shipments experiencing growth in leaps and bounds. At the end of the Reporting Period, the Company's photovoltaic materials business significantly expanded its crystal wafer production capacity to 183GW, capturing a 23.4% market share of the global market. The company accounted for 60% of the large-sized (210 series) wafer external sales market, 65% of the overseas wafer external sale market, and 36.4% of the N-type wafer segment, maintained No.1 in photovoltaic wafer external sales market share, and further consolidated the Company's leadership within the industry. The Company implemented a strategic approach focused on fortifying its core competencies and rectifying shortcomings, to bolster the competitive advantage of its core business segments, and increase both efficiency and effectiveness. The Company's display business capitalized on the technological capabilities of its high-gen production lines to actively drive demand for IT products fueled by the IT revolution, to fill the gap in its mid-sized production capacity (e.g., the t9 production line) and product layout. To enhance its operational efficiency, the small-sized OLED business has implemented a high-end, differentiated product strategy. Relying on its advantages in leading G12 and N-type wafer technology, Industry 4.0 and flexible manufacturing processes, the Company's new energy photovoltaic business played a synergistic role across the entire photovoltaic value chain, and ultimately shored up the relative advantages in cost efficiency. Promoting globalization strategy, the Company transitioned from product export to industry capacity export, building a global industrial ecosystem. The Company's display business improved its layout in its panel module plant in India and overseas business platform, to strengthen its capacity to serve global customers and partners and satisfy the incremental needs of emerging markets worldwide. Due to the increasing complexity of the global economic and political landscape, the Company's new energy photovoltaic business prudently and steadfastly implemented its globalization strategy, where it actively evaluated and explored potential industrial projects in key global markets, such as the United States, Europe, and the Middle East. Various projects were rolled out, such as comprehensive project planning, strategic partner negotiation, and thorough feasibility studies. Concurrently, the business collaborated with strategic partners to expand its photovoltaic cell and module business in Malaysia, the Philippines, and other regions, further cementing its global competitiveness within the new energy photovoltaic sector. II. Main Businesses of the Company During the Reporting Period The Company focused on the development of the core business of displays and new energy photovoltaics and other silicon materials, and was committed to achieving the strategic goal of global leadership. (I) Display business In 2023, the user-end demand for displays products remained sluggish globally, and it showed seasonal fluctuation. However, the trend towards larger TV panels drove display area demand, while a just-in-time (“JIT”) production strategy bacame a consensus among major enterprises, fostering healthy industry development amid an increasingly favorable competitive landscape. Large-sized panel prices exhibited a seasonal pattern with significant peak-season recovery and a slight decline in the off-season, while mid-sized panel prices stabilized at low levels and small-sized panels experienced structural price increases in the second half of the year. By leveraging its strengths in terms of scale and efficiency, TCL CSOT has consistently optimized its business and product mix, insisted on JIT production, and accelerated their business cycle. This, coupled with favorable price increases for key products, has significantly boosted operating performance. During the Reporting Period, the display business achieved a revenue of RMB83.655 billion, with a year-on-year increase of 27.26%, and a net profit of negative RMB7 million, with a year-on-year reducing loss of RMB7.618 billion while recorded a profit of RMB3.441 billion in H2 2023. The display business achieved a net cash flow from operating activities of RMB20.12 billion. In its large-sized products business, TCL CSOT leveraged its advantages in terms of high-gen production lines and synergy with the industry chain, and led the upgrading and high-end development of large-sized TV panels while actively developing commercial displays, such as interactive whiteboards, digital signage, and splicing screens. Capitalizing on the manufacturing efficiency and process advantages of its G8.5 and G11 high-gen production lines, TCL CSOT collaborated with strategic customers to enhance the penetration of large-sized TVs in the market and elevate the value of key segments alongside the industry chain. The Company consolidated its No. 2 position in terms of global market share of TV panels. 79% of the shipment area for products above 55 inches, 51% of the shipment area for products above 65 inches; while 55-inch and 75-inch products ranked No. 1 in the world, the market share of 65-inch products ranked No. 2 globally. In commercial markets such as interactive whiteboards, digital signage, and splicing screens, the Company ranked among the top three in terms of global market share. In its medium-sized product business, TCL CSOT accelerated its capacity construction in and optimizing customer structure to create a new engine for business growth. Dedicated to mid-sized displays for IT, vehicle-mounted devices and other business, the t9 production line (phase I) is now running at full capacity, propelling the Company to being ranked third globally in terms of display shipments. In this segment, the Company occupies the largest share in the global e-sports monitors market, while its laptop and vehicle-mounted devices are on track for branded customer introductions and gradual production increases. With the steady increase in 6th-gen LTPS capacity, the Company ranks No. 2 in LTPS laptop panels globally and No. 1 in LTPS tablets globally; and vehicle-mounted LTPS displays rank fifth worldwide. TCL CSOT's mid-sized business increased to 21% of its revenue, making it a key driver of future growth. In the small-sized display segment, TCL CSOT is targeting the mid-to-high-end market with a portfolio of LTPS and flexible OLED production lines, driving continuous improvements in product competitiveness and market share. TCL CSOT ranked No. 3 in the world in terms of LTPS mobile panel shipments from the t3 production line. The independently developed 1512 PPI Mini-led LCD-VR screens achieved start of production (SoP) and shipment. The Company's t4 flexible OLED production line has experienced a significant ramp-up in both utilization rate and shipments. This operational excellence secured the Company's position as the fourth-largest supplier （未完）  |