TZE(SZ:002129)2024-07-09 15:04TCL Zhonghuan 2024 Semi-Annual Performance Forecast This report outlines TCL Zhonghuan's preliminary financial performance for the first half of 2024, detailing a significant projected net loss and the underlying industry and company-specific factors Performance Forecast Overview The company projects a significant net loss for the first half of 2024, contrasting sharply with the prior year's profit and resulting in a shift to loss per share Comparison of 2024 Semi-Annual Performance Forecast with Prior Year | Item | Jan-Jun 2024 (Estimated) | Prior Period (Actual) | | :--- | :--- | :--- | | Net Profit Attributable to Shareholders (RMB billion) | Loss: 2.9 to 3.2 | Profit: 4.536 | | Net Profit After Non-Recurring Items (RMB billion) | Loss: 3.3 to 3.6 | Profit: 3.808 | | Basic Earnings Per Share (RMB/share) | Loss: 0.7180 to 0.7923 | Profit: 1.1288 | Pre-Audit Status The performance forecast data released has not been pre-audited by a certified public accountant - This performance forecast has not been pre-audited by a certified public accountant4 Analysis of Performance Change Reasons The shift from profit to loss is primarily due to photovoltaic industry overcapacity and price declines, yet the company maintains positive operating cash flow and strengthens its market position - Industry-wide overcapacity in photovoltaic manufacturing has intensified supply-demand imbalance, leading to significant price declines across the value chain, with the industry generally experiencing losses where costs exceed selling prices by Q2 20244 - Despite the projected net loss, the company maintains positive operating net cash flow, upholding its operational baseline4 - The company's strategy involves implementing a global leadership approach, enhancing technological innovation and Industry 4.0 manufacturing capabilities, which has increased its photovoltaic silicon wafer shipment market share to approximately 30% by June 2024, strengthening cost advantages and competitive positioning45 Other Explanations The company advises investors that this performance forecast is a preliminary estimate by the finance department and is subject to uncertainty, with final accurate financial data to be based on the officially disclosed 2024 semi-annual report - This performance forecast represents preliminary estimates by the company's finance department, with final data subject to the official semi-annual report, cautioning investors about investment risks5