TCL中环(002129) - 2025 Q2 - 季度财报

Important Notes, Table of Contents, and Definitions This section provides essential disclaimers, a detailed report directory, and definitions of key terms to ensure clear understanding Important Notes The Board of Directors, Supervisory Board, and senior management guarantee the accuracy and completeness of the semi-annual report, disclaiming forward-looking statements - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content, assuming individual and joint legal responsibility[4] - Company head Wang Yanjun, chief accountant Zhang Changxu, and head of accounting department Zhan Huimei declare that the financial report in this semi-annual report is true, accurate, and complete[4] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5] Table of Contents This section clearly lists eight main chapters, covering important notes, company profile, management discussion, corporate governance, significant matters, share changes, bond information, and financial reports Report Chapter Directory | Chapter | Title | Page | | :--- | :--- | :--- | | Section I | Important Notes, Table of Contents, and Definitions | 2 | | Section II | Company Profile and Key Financial Indicators | 7 | | Section III | Management Discussion and Analysis | 10 | | Section IV | Corporate Governance, Environment, and Society | 23 | | Section V | Significant Matters | 31 | | Section VI | Share Changes and Shareholder Information | 37 | | Section VII | Bond-Related Information | 41 | | Section VIII | Financial Report | 42 | Definitions This section defines common terms used in the report, including company names, stakeholders, key technologies, and financial units, ensuring reader comprehension - TCL Zhonghuan: TCL Zhonghuan New Energy Technology Co., Ltd[10] - 210: 12-inch ultra-large diamond wire-cut solar monocrystalline silicon square wafer, with an area of 44,096mm², a diagonal of 295mm, and a side length of 210mm, representing an 80.5% increase in area compared to traditional M2[10] - BC: Back Contact cell technology, which places both positive and negative electrodes on the back of the cell, eliminating metal electrode shading, maximizing incident light utilization, reducing optical losses, providing more effective power generation area, and offering high conversion efficiency and aesthetic appeal[10] Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, and a summary of its key financial performance and indicators for the reporting period Company Profile TCL Zhonghuan New Energy Technology Co., Ltd. (stock code: 002129) is listed on the Shenzhen Stock Exchange, with Wang Yanjun as its legal representative - Company stock abbreviation: TCL Zhonghuan, stock code: 002129[13] - The company's legal representative is Wang Yanjun[13] Contact Persons and Information This section provides detailed contact information for the company's Board Secretary Hu Wei and Securities Affairs Representative Tian Lingling, facilitating investor communication - Board Secretary: Hu Wei, contact number: 022-23789787, email: investment@tzeco.com[14] - Securities Affairs Representative: Tian Lingling, contact number: 022-23789787, email: tianlingling@tzeco.com[14] Other Information The company's registered address, office address, website, email, and information disclosure locations remained unchanged during the reporting period, as detailed in the 2024 annual report - The company's registered address, office address and postal code, website, email, etc., remained unchanged during the reporting period, as detailed in the 2024 annual report[15] - The company's securities exchange website and media name and URL for semi-annual report disclosure, and the location for semi-annual report availability, remained unchanged during the reporting period, as detailed in the 2024 annual report[16] Key Accounting Data and Financial Indicators In H1 2025, revenue decreased by 17.36% to 13.40 billion yuan, net loss attributable to shareholders widened to 4.24 billion yuan, while operating cash flow significantly increased by 308.40% to 523 million yuan Key Accounting Data and Financial Indicators (Consolidated Statements) | Indicator | Current Reporting Period/Period-End (yuan) | Prior Year/Prior Year-End (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 13,398,123,075.86 | 16,213,493,017.52 | -17.36% | | Net Profit Attributable to Listed Company Shareholders | -4,242,357,243.31 | -3,063,596,483.25 | -38.48% | | Net Cash Flow from Operating Activities | 523,173,719.73 | 128,101,783.40 | 308.40% | | Basic Earnings Per Share | -1.0624 | -0.768 | -38.33% | | Total Assets | 124,816,913,561.53 | 125,597,525,162.66 | -0.62% | | Net Assets Attributable to Listed Company Shareholders | 26,685,912,021.76 | 30,906,672,036.26 | -13.66% | Differences in Accounting Data Under Domestic and Overseas Accounting Standards The company reported no differences in net profit and net assets between international/overseas accounting standards and Chinese accounting standards during the reporting period - The company reported no differences in net profit and net assets between financial reports disclosed under international accounting standards and Chinese accounting standards during the reporting period[18] - The company reported no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese accounting standards during the reporting period[19] Non-Recurring Gains and Losses and Amounts The company's H1 2025 non-recurring gains and losses totaled 233 million yuan, primarily from government subsidies, offset by non-current asset disposal losses and income tax effects Non-Recurring Gains and Losses and Amounts | Item | Amount (yuan) | | :--- | :--- | | Disposal gains/losses of non-current assets | -17,555,129.55 | | Government grants recognized in current profit or loss | 342,573,940.82 | | Reversal of impairment provisions for individually tested receivables | 27,615,954.91 | | Other non-operating income and expenses apart from the above | -1,685,096.57 | | Less: Income tax impact | 40,266,083.20 | | Impact on minority interests (after tax) | 77,243,838.51 | | Total | 233,439,747.90 | - The company has no other profit and loss items that meet the definition of non-recurring gains and losses, nor does it classify non-recurring gains and losses as recurring gains and losses[21] Management Discussion and Analysis This section analyzes the company's industry, main operations, core competitiveness, financial performance, and risks, along with management's strategies and outlook Industry Overview During the Reporting Period In H1 2025, global economic uncertainty persisted, but solar demand remained resilient, with domestic new installations growing 107% to 212.2 GW, though prices fell to historical lows - From January to June 2025, national new photovoltaic installations reached 212.2 GW, a 107% year-on-year increase[23] - Photovoltaic main chain prices rebounded at the beginning of the year, then continuously declined in May-June, gradually falling to historical lows; multiple segments of the industry chain remained in a loss-making stage[23] H1 2025 Key Financial Performance | Indicator | Amount (billion yuan) | Year-on-Year Change | | :--- | :--- | :--- | | Operating Revenue | 13.40 | -17.36% | | Net Cash Flow from Operating Activities | 0.52 | +308.40% | | Net Profit | -4.84 | -52.28% | | Net Profit Attributable to Listed Company Shareholders | -4.24 | -38.48% | - The business of the controlling subsidiary Maxeon still showed no significant improvement, and the return of module products entering the US market continued to have a significant negative impact on Maxeon's performance, leading to product backlog and decreased market share[25] Principal Businesses During the Reporting Period The company's main businesses include new energy photovoltaic materials, PV cells and modules, and other silicon materials, focusing on cost reduction, efficiency improvement, and global expansion - The company's principal businesses revolve around silicon materials, forming three major segments: new energy photovoltaic materials, photovoltaic cells and modules, and other silicon materials[27] - In the second half of 2025, the company will continue to optimize production, sales, and procurement operational strategies; simultaneously, driven by customer demand, it will enhance the competitive advantage of large-size products based on supply chain and market synergy[29] - Looking ahead to the second half of 2025, the photovoltaic industry is still at a cyclical bottom, with demand fluctuations caused by temporary rush installations; with changes such as industry "anti-involution" efforts and industry self-discipline, the company will adjust its operational strategies in a timely manner to achieve extreme cost reduction in response to market changes[33] Photovoltaic Material Business Segment In H1 2025, the PV material business strengthened cost control, optimized material structure, and achieved a 40% reduction in per-watt processing costs, maintaining industry-leading market share for 210mm large-size products - During the reporting period, through optimization of material structure, advancement of fine-line technology, supply chain management, and technological innovation, the company's cost control capabilities were further strengthened, achieving a 40% year-on-year decrease in per-watt processing costs[28] - During the reporting period, the company's comprehensive market share for photovoltaic material product shipments remained industry-leading[28] - During the reporting period, the company achieved a single-furnace cost reduction of over 20%[28] Photovoltaic Cell and Module Segment In H1 2025, the company expanded its product matrix to include stacked, half-cut, and BC cells, increased module shipments, and narrowed per-watt losses, with 24 GW of module capacity - The company gradually improved its product matrix, expanding its product lines from single products to stacked, half-cut, and BC series, and completed the construction of half-cut and BC cell capacities during the reporting period[31] - In H1 2025, the company's photovoltaic module shipment scale increased quarter by quarter, with Q2 shipments doubling quarter-on-quarter; per-watt losses narrowed quarter-on-quarter, and operational capabilities gradually improved[31] - As of the end of the reporting period, the company's module capacity reached 24 GW[31] Globalization Business The company is actively building an independent overseas supply chain and global strategy, with the Philippines positioned as a BC cell and module global base, while Maxeon faces challenges in the US market - The company actively promotes an independent and complete overseas supply chain; it firmly advances its globalization strategy, actively exploring industrial layout projects in key global countries or regions[32] - The company has systematically reviewed its Philippines capacity, positioning it as a global base for the company's BC cells, modules, and other global capacities[32] - The incident of Maxeon's US-bound modules being returned by customs had a significant negative impact on its business, supply chain, and financial stability, and the company continues to face considerable operational pressure in the short term[32] Analysis of Core Competencies TCL Zhonghuan builds core competitiveness through sustainable operations, technological innovation, focus on advanced capacity, intellectual property protection, and organizational capability enhancement - As of the end of the reporting period, TCL Zhonghuan had 10 affiliated companies certified as green factories, including 4 national-level green factories, and 9 affiliated companies certified as "zero-waste factories"[34] - During the reporting period, the company's R&D investment was 540 million yuan, accounting for 4.03% of operating revenue[35] - As of the end of the reporting period, the company's silicon wafer capacity reached 200 GW[37] - As of June 30, 2025, the company cumulatively held 4,629 valid authorized intellectual property rights, including 562 domestic invention patents, 1,786 utility model patents, 24 design patents, 248 trademarks, 35 software copyrights, and 1,974 overseas authorized patents[38] Sustainable Development Business Philosophy The company prioritizes environmental protection and stable operations, achieving smart manufacturing, low emissions, and leading ESG ratings, with 10 subsidiaries certified as green factories - TCL Zhonghuan has had 10 affiliated companies certified as green factories, including 4 national-level green factories, and 9 affiliated companies certified as "zero-waste factories"[34] - Ningxia Zhonghuan was recognized as a "National Smart Manufacturing Demonstration Factory" by the Ministry of Industry and Information Technology and other authorities[34] - International capital market mainstream ratings such as MSCI-ESG, CSA, and CDP have all reached the highest level in China's photovoltaic industry[34] Technological Innovation to Enhance Relative Competitiveness The company invested 540 million yuan in R&D in H1 2025, focusing on sustainable technology, optimizing key indicators, and building a BC cooperation ecosystem through intellectual property commercialization - During the reporting period, the company's R&D investment was 540 million yuan, accounting for 4.03% of operating revenue[35] - The company seizes opportunities for industrial technology upgrades, building a new BC cooperation ecosystem through intellectual property and patent commercialization[35] Focusing on Advanced Capacity and Products, Continuously Improving Quality, Reducing Costs, and Increasing Efficiency As a leading PV silicon wafer enterprise, the company boasts globally leading capacity, product structure, and cost, with 200 GW of silicon wafer capacity, driving large-size and N-type development - As a leading enterprise in the photovoltaic silicon wafer sector, the company's capacity scale, product structure, and costs are globally leading[36] - As of the end of the reporting period, the company's silicon wafer capacity reached 200 GW[37] Emphasizing Intellectual Property Protection and Strengthening Global Patent Layout The company prioritizes intellectual property protection, leveraging independent innovation and Know-how to build a global patent portfolio, holding 4,629 valid authorized IPs as of June 30, 2025 - The company emphasizes intellectual property protection, strengthens its global patent layout, and adheres to a philosophy of high respect for intellectual property and differentiated competition[38] - As of June 30, 2025, the company cumulatively held 4,629 valid authorized intellectual property rights, including 562 domestic invention patents, 1,786 utility model patents, 24 design patents, 248 trademarks, 35 software copyrights, and 1,974 overseas authorized patents[38] - The company owns 12 high-tech enterprises, 8 provincial-level R&D centers, 1 national-level technology center, and 1 national technology innovation demonstration enterprise[38] Enhancing Organizational Capabilities and Operational Efficiency with the Mission of 'Leading Technology, Harmonious Coexistence' Guided by its mission and core values, the company actively drives change, optimizes organizational structure, and focuses on core businesses to reduce costs, improve efficiency, and navigate industry cycles - The company adheres to the mission of "Leading Technology, Harmonious Coexistence" and the core values of "Transformation, Innovation, Accountability, Excellence"[39] - The company upholds an "entrepreneurial mindset," actively driving transformation, dynamically optimizing organizational structure, improving management system frameworks, and enhancing operational control models[39] Analysis of Principal Business In H1 2025, revenue decreased by 17.36% to 13.40 billion yuan, with PV industry revenue down 27.24% and other silicon materials up 38.18%, while sales and financial expenses increased Major Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | Year-on-Year Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 13,398,123,075.86 | 16,213,493,017.52 | -17.36% | | | Operating Cost | 14,412,073,107.88 | 16,672,398,187.03 | -13.56% | | | Selling Expenses | 292,385,285.87 | 210,028,313.11 | 39.21% | Primarily due to the addition of new subsidiaries | | Financial Expenses | 743,730,249.33 | 532,494,539.98 | 39.67% | Primarily due to increased interest expenses from growth in interest-bearing debt | | Net Cash Flow from Operating Activities | 523,173,719.73 | 128,101,783.40 | 308.40% | Primarily due to strengthened inventory and accounts receivable management in the current period | Operating Revenue Composition (by Industry) | Industry | Current Reporting Period Amount (yuan) | Proportion of Operating Revenue | Prior Year Period Amount (yuan) | Proportion of Operating Revenue | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | New Energy Photovoltaic Industry | 9,724,791,137.73 | 72.58% | 13,366,057,171.37 | 82.44% | -27.24% | | Other Silicon Materials Industry | 2,741,906,151.73 | 20.46% | 1,984,331,844.40 | 12.24% | 38.18% | Operating Revenue Composition (by Product) | Product | Current Reporting Period Amount (yuan) | Proportion of Operating Revenue | Prior Year Period Amount (yuan) | Proportion of Operating Revenue | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Photovoltaic Silicon Wafers | 5,777,307,261.02 | 43.12% | 10,432,478,394.07 | 64.34% | -44.62% | | Photovoltaic Modules | 3,845,853,516.43 | 28.70% | 2,762,492,308.31 | 17.04% | 39.22% | | Other Silicon Materials | 2,741,906,151.73 | 20.46% | 1,984,331,844.40 | 12.24% | 38.18% | Analysis of Non-Principal Business Non-principal businesses significantly impacted total profit, primarily due to 1.59 billion yuan in asset impairment losses, accounting for 33.15% of total profit Impact of Non-Principal Business on Total Profit | Item | Amount (yuan) | Proportion of Total Profit | Explanation of Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | -4,504,726.61 | 0.09% | Current investment income from long-term equity investments accounted for using the equity method and wealth management income | Investment income accounted for using the equity method is sustainable, while wealth management income and equity disposal gains are not. | | Fair Value Change Gains/Losses | -13,927,686.64 | 0.29% | Fair value change gains/losses from financial assets held | No | | Asset Impairment | -1,592,897,559.87 | 33.15% | Inventory depreciation provision, asset impairment, etc., recognized in the current period | Yes | | Non-Operating Income | 5,575,006.97 | -0.12% | Income from liquidated damages and fines, etc. | No | | Non-Operating Expenses | 91,668,067.89 | -1.91% | Losses from disposal of non-current assets, etc. | No | Analysis of Assets and Liabilities As of the reporting period end, total assets slightly decreased by 0.62% to 124.82 billion yuan, with total liabilities at 83.05 billion yuan, and contract liabilities increasing by 31.08% due to higher advance receipts Significant Changes in Asset Composition | Item | Amount at Period-End (yuan) | Proportion of Total Assets | Amount at Prior Year-End (yuan) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 10,888,590,155.39 | 8.72% | 12,816,809,248.18 | 10.20% | -1.48% | | Accounts Receivable | 6,072,290,791.61 | 4.86% | 4,787,766,708.15 | 3.81% | 1.05% | | Construction in Progress | 13,357,569,627.25 | 10.70% | 15,230,315,139.92 | 12.13% | -1.43% | | Contract Liabilities | 1,255,391,393.47 | 1.01% | 957,709,916.72 | 0.76% | 0.25% | | Long-Term Borrowings | 45,805,133,690.92 | 36.70% | 43,302,646,180.50 | 34.48% | 2.22% | - At the end of the reporting period, contract liabilities increased by 31.08% compared to the beginning of the period, primarily due to an increase in advance receipts for goods[49] - The measurement attributes of the company's major assets did not undergo significant changes during the reporting period[53] Analysis of Investment Status The company's investment amounted to 3.47 billion yuan in the reporting period, a 34.77% decrease year-on-year, with no significant equity, non-equity, securities, or derivative investments Investment Amount During the Reporting Period | Indicator | Amount (yuan) | | :--- | :--- | | Investment amount in current reporting period | 3,465,937,138.89 | | Investment amount in prior year period | 5,313,162,630.25 | | Change (%) | -34.77% | - The company had no securities investments during the reporting period[56] - The company had no use of raised funds during the reporting period[58] Significant Asset and Equity Disposals The company did not dispose of any significant assets or equity during the reporting period - The company did not dispose of significant assets during the reporting period[59] - The company did not dispose of significant equity during the reporting period[60] Analysis of Major Holding and Participating Companies This section lists major subsidiaries significantly impacting net profit, including Inner Mongolia Zhonghuan Crystal Material, Ningxia Zhonghuan Photovoltaic Material, and Inner Mongolia Zhonghuan Photovoltaic Material, all reporting negative net profits Major Holding and Participating Companies | Company Name | Company Type | Principal Business | Registered Capital (yuan) | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Operating Profit (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Inner Mongolia Zhonghuan Crystal Material Co., Ltd. | Subsidiary | Monocrystalline silicon rods | 6,303,040,300.00 | 23,271,195,843.88 | 11,134,612,312.30 | 3,813,450,765.52 | -1,177,096,546.89 | -1,181,962,650.71 | | Ningxia Zhonghuan Photovoltaic Material Co., Ltd. | Subsidiary | Monocrystalline silicon rods | 3,500,000,000.00 | 14,058,809,563.09 | 2,947,724,575.62 | 2,074,474,596.68 | -877,569,271.49 | -846,611,099.86 | | Inner Mongolia Zhonghuan Photovoltaic Material Co., Ltd. | Subsidiary | Photovoltaic silicon wafers | 5,472,900,000.00 | 9,396,991,928.91 | 6,523,557,647.20 | 1,839,644,845.07 | -523,063,479.61 | -519,473,992.83 | - For information on the acquisition and disposal of subsidiaries during the reporting period, please refer to Section VIII Financial Report, IX. Changes in Consolidation Scope[62] Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company reported no structured entities under its control during the reporting period[62] Risks Faced by the Company and Countermeasures The company faces risks from industry policies, market competition, raw material price fluctuations, and global operations, addressed by enhancing policy analysis, technological upgrades, cost reduction, and strategic overseas expansion - The company faces industry policy risks and responds by enhancing policy analysis capabilities, proactive planning, promoting technological upgrades, strengthening product competitiveness, and diversifying industrial layouts globally[62] - The company faces market competition risks and responds by continuously enhancing core product competitiveness, actively reducing costs, improving efficiency, strengthening operational systems, and matching customer demands[63] - The company faces risks from raw material price fluctuations and responds by timely identifying customer needs, implementing diversified business models, ensuring supply chain ecosystem and stability, optimizing supply structure, and promptly adjusting procurement strategies[63] - Globalization business and Maxeon face challenges from geopolitics, energy policies, tariffs, exchange rates, local culture, and legal compliance, and Maxeon's transformation strategy still faces numerous tests for successful implementation[64] Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company adopted a Market Value Management System in April 2025 to regulate market value activities and enhance investor returns, but no valuation enhancement plan was disclosed - The company has formulated a "Market Value Management System," which was reviewed and approved at the 13th meeting of the 7th Board of Directors on April 24, 2025[65] - The company did not disclose a valuation enhancement plan[65] Implementation of the 'Quality and Return Dual Enhancement' Action Plan The company is implementing its "Quality and Return Dual Enhancement" action plan, focusing on high-quality development, internal control, operational efficiency, technological innovation, and global expansion to protect investor interests - The company has disclosed its "Quality and Return Dual Enhancement" action plan announcement; for specific content, please refer to the "Announcement on Promoting the Implementation of the 'Quality and Return Dual Enhancement' Action Plan" disclosed by the company on February 28, 2024[66] - The company consistently focuses on high-quality development, improves its internal control system, strengthens standardized operations, and enhances decision-making efficiency[67] - The company actively promotes technological innovation and the transformation to Industry 4.0 manufacturing, continuously enhancing its relative competitiveness and actively pursuing globalization to drive high-quality development[67] Corporate Governance, Environment, and Society This section details changes in the company's directors and senior management, profit distribution plans, employee incentive schemes, environmental disclosures, and social responsibility initiatives Changes in Directors, Supervisors, and Senior Management During the reporting period, Wang Yanjun was elected as a director, and Hu Wei was appointed as the Board Secretary - Wang Yanjun was elected as a director on January 13, 2025, due to a shareholder meeting election[69] - Hu Wei was appointed as the company's Board Secretary on February 27, 2025, following nomination by the company's chairman and review by the Board's Nomination Committee[69] Profit Distribution and Capital Reserve Conversion to Share Capital in the Current Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[70] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans in effect during the reporting period, but three employee stock ownership plans remain active, with the 2023 plan's shares reverting to the company due to unmet performance targets - The company had no equity incentive plans implemented during the reporting period[71] - The 2023 employee stock ownership plan's shares, totaling 14,391,980 shares (17,989,975 shares after conversion), and their corresponding dividend rights and other entitlements, all reverted to the company due to the failure to meet key performance indicators[74] - The lock-up period for the 2022 employee stock ownership plan expired on September 7, 2023, and the share allocation was determined based on the achievement of company performance indicators and individual performance assessment results[78] Equity Incentives The company had no equity incentive plans implemented during the reporting period - The company had no equity incentive plans implemented during the reporting period[71] Employee Stock Ownership Plans The 2023 employee stock ownership plan's shares reverted to the company due to unmet performance targets, while the 2022 and 2021 plans' lock-up periods have expired - The 2023 employee stock ownership plan's shares, totaling 14,391,980 shares (17,989,975 shares after conversion), and their corresponding dividend rights and other entitlements, all reverted to the company due to the failure to meet key performance indicators[74] - The lock-up period for the 2022 employee stock ownership plan expired on September 7, 2023, and the share allocation was determined based on the achievement of company performance indicators and individual performance assessment results[78] - The lock-up period for the 2021 employee stock ownership plan expired on July 14, 2022[80] Implementation Status of Employee Stock Ownership Plans As of the reporting period end, the company had three active employee stock ownership plans, holding a total of 22.16 million shares, representing 0.69% of total share capital All Valid Employee Stock Ownership Plans During the Reporting Period | Scope of Employees | Number of Employees | Total Shares Held (shares) | Proportion of Listed Company's Total Share Capital | | :--- | :--- | :--- | :--- | | Including company directors (excluding independent directors), supervisors, senior management, and other employees | 815 | 2,163,478 | 0.07% | | Including company directors (excluding independent directors), supervisors, senior management, and other employees | 1,500 | 5,608,455 | 0.17% | | Including company directors (excluding independent directors), supervisors, senior management, and other employees | 1,500 | 14,391,980 | 0.45% | - Directors (excluding independent directors), supervisors, and senior management held 274,600 shares at period-end, accounting for 0.01% of the listed company's total share capital[84] Other Employee Incentive Measures The company had no other employee incentive measures during the reporting period - The company had no other employee incentive measures during the reporting period[85] Environmental Information Disclosure The company and its six major subsidiaries are listed as legally required environmental information disclosure enterprises, adhering to environmental laws and ensuring accurate information - The company and its 6 major subsidiaries are included in the list of enterprises required to disclose environmental information by law[85] - The company highly values environmental protection, strictly adheres to national and local environmental laws and regulations, conducts environmental management in accordance with laws and regulations, and orderly discloses environmental information, ensuring its truthfulness, accuracy, and completeness[86] Social Responsibility The company continuously enhances sustainable development governance, integrates sustainability into its value chain, promotes clean energy, and achieves high international ESG ratings - The company continuously improves its sustainable development governance, actively responds to the United Nations Sustainable Development Goals, and systematically conducts double materiality assessments and due diligence on environmental, social, and corporate governance issues, referencing the Shenzhen Stock Exchange's "Self-Regulatory Guidance No. 17 for Listed Companies – Sustainable Development Report (Trial)"[87] - As of the end of the reporting period, 11 affiliated enterprises were certified as green factories, including Tianjin Lingxian, Huanzhi New Energy, Zhonghuan Crystal, and Zhonghuan Photovoltaic which received national-level green factory certifications, and 11 affiliated enterprises were certified as "zero-waste factories"[87] - In 2024, TCL Zhonghuan's MSCI-ESG rating rose to BBB level, its CDP water security information disclosure achieved an A- leadership level, and it was selected into S&P Global's "Sustainability Yearbook 2025" with a TOP1 ranking in the photovoltaic industry[89] - As of the end of the reporting period, the company had donated and built 26 photovoltaic campuses nationwide, with a total installed capacity of 1,548.15 kW, generating approximately 17.41 million yuan in electricity revenue over twenty-five years; it has cumulatively assisted 6 photovoltaic poverty alleviation projects, covering 7,455 impoverished households with no labor capacity[90] Significant Matters This section covers commitments, related party transactions, guarantees, litigation, and other significant events during the reporting period Commitments The company reported no unfulfilled or overdue commitments from its actual controller, shareholders, related parties, acquirers, or the company itself during the reporting period - The company reported no commitments from its actual controller, shareholders, related parties, acquirers, or the company itself that were fulfilled during the reporting period or remained unfulfilled and overdue as of the end of the reporting period[93] Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties The company reported no non-operating funds occupied by controlling shareholders or other related parties during the reporting period - The company reported no non-operating funds occupied by controlling shareholders or other related parties during the reporting period[94] Irregular External Guarantees The company reported no irregular external guarantees during the reporting period - The company reported no irregular external guarantees during the reporting period[95] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[96] Board of Directors' and Supervisory Board's Explanations on 'Non-Standard Audit Report' for the Current Period The company reported no explanations from the Board of Directors or Supervisory Board regarding a "non-standard audit report" for the current period - The company reported no explanations from the Board of Directors or Supervisory Board regarding a "non-standard audit report" for the current reporting period[97] Board of Directors' Explanations on 'Non-Standard Audit Report' for the Previous Year The company reported no explanations from the Board of Directors regarding a "non-standard audit report" for the previous year - The company reported no explanations from the Board of Directors regarding a "non-standard audit report" for the previous year during the reporting period[97] Bankruptcy and Reorganization Matters The company reported no bankruptcy or reorganization matters during the reporting period - The company reported no bankruptcy or reorganization matters during the reporting period[98] Litigation Matters The company reported no significant litigation, arbitration, or other litigation matters during the current reporting period - The company had no significant litigation or arbitration matters during the current reporting period[99] - The company had no other litigation matters during the reporting period[99] Penalties and Rectification The company reported no penalties or rectification situations during the reporting period - The company reported no penalties or rectification situations during the reporting period[99] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company reported no integrity issues concerning itself, its controlling shareholder, or its actual controller during the reporting period - The company reported no integrity issues concerning itself, its controlling shareholder, or its actual controller during the reporting period[100] Significant Related Party Transactions The company had no related party transactions concerning daily operations, asset/equity acquisition/disposal, or joint investments, but engaged in financial transactions with TCL Technology Group Finance Co., Ltd - The company reported no related party transactions related to daily operations during the reporting period[100] - The company reported no related party transactions involving asset or equity acquisition/disposal during the reporting period[101] - The company reported no related party receivables or payables during the reporting period[103] Transactions with Related Financial Companies | Related Party | Related Relationship | Business Type | Beginning Balance (million yuan) | Amount Incurred in Current Period (million yuan) | Ending Balance (million yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | TCL Technology Group Finance Co., Ltd. | Under common control | Deposit business | 30.45 | Total deposits in current period: 200.22, Total withdrawals in current period: 229.57 | 1.10 | | TCL Technology Group Finance Co., Ltd. | Under common control | Loan business | 130.00 | Total loans in current period: 330.00, Total repayments in current period: 130.00 | 330.00 | | TCL Technology Group Finance Co., Ltd. | Under common control | Credit line | 3,000.00 (total) | 330.00 (actual amount incurred) | | Significant Contracts and Their Performance The company had no custody, contracting, or leasing matters, but provided significant guarantees to subsidiaries totaling 12.29 billion yuan and engaged in 5.34 billion yuan in wealth management - The company reported no custody situations during the reporting period[107] - The company reported no leasing situations during the reporting period[109] - The approved total guarantee limit for subsidiaries at the end of the reporting period was 17.24 billion yuan, and the actual outstanding guarantee balance for subsidiaries was 12.29 billion yuan, accounting for 46.05% of the company's net assets[112] - Of these, the debt guarantee balance provided directly or indirectly to guaranteed entities with an asset-liability ratio exceeding 70% was 6.65 billion yuan[113] Custody, Contracting, and Leasing Matters The company reported no custody, contracting, or leasing situations during the reporting period - The company reported no custody situations during the reporting period[107] - The company reported no contracting situations during the reporting period[108] - The company reported no leasing situations during the reporting period[109] Significant Guarantees The company provided significant joint liability guarantees to subsidiaries, with an approved total of 17.24 billion yuan and an actual outstanding balance of 12.29 billion yuan, representing 46.05% of net assets Company Guarantees to Subsidiaries | Name of Guaranteed Entity | Guarantee Limit (million yuan) | Actual Guarantee Amount (million yuan) | Guarantee Period | Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Zhonghuan Energy (Inner Mongolia) Co., Ltd. | 8,440 | 8,440 | 7.1 years | No | | Inner Mongolia Zhonghuan Crystal Material Co., Ltd. | 279,976.91 | 279,976.91 | 2.8 years | No | | Ningxia Zhonghuan Photovoltaic Material Co., Ltd. | 526,500 | 526,500 | 3.9 years | No | | Huansheng New Energy (Tianjin) Co., Ltd. | 104,600 | 69,000 | 5.7 years | No | | Huansheng New Energy (Inner Mongolia) Co., Ltd. | 140,000 | 40,700 | 8.0 years | No | - The approved total guarantee limit for subsidiaries at the end of the reporting period was 17.24 billion yuan, and the actual outstanding guarantee balance for subsidiaries was 12.29 billion yuan, accounting for 46.05% of the company's net assets[112] - Of these, the debt guarantee balance provided directly or indirectly to guaranteed entities with an asset-liability ratio exceeding 70% was 6.65 billion yuan[113] Wealth Management The company engaged in 5.34 billion yuan in wealth management during the reporting period, with 3.47 billion yuan outstanding and no overdue or impaired amounts Wealth Management Status | Specific Type | Source of Wealth Management Funds | Amount of Wealth Management Incurred (million yuan) | Unexpired Balance (million yuan) | Overdue Unrecovered Amount (million yuan) | | :--- | :--- | :--- | :--- | :--- | | Bank wealth management products | Own funds | 533,480 | 347,300 | 0 | - No situations where wealth management is expected to be unrecoverable or may lead to impairment: None[114] Other Significant Contracts The company reported no other significant contracts during the reporting period - The company reported no other significant contracts during the reporting period[114] Explanation of Other Significant Matters The company reported no other significant matters requiring explanation during the reporting period - The company reported no other significant matters requiring explanation during the reporting period[115] Significant Matters of Company Subsidiaries The company reported no significant matters concerning its subsidiaries during the reporting period - The company reported no significant matters concerning its subsidiaries during the reporting period[116] Share Changes and Shareholder Information This section details changes in share capital, securities issuance, shareholder numbers, and holdings, as well as changes in directors', supervisors', and senior management's shareholdings Share Capital Changes The company's total share capital remained unchanged, with a minor decrease in restricted shares due to executive transfers and a corresponding increase in unrestricted shares Share Capital Changes | Item | Number Before This Change (shares) | Increase/Decrease in This Change (±) Subtotal (shares) | Number After This Change (shares) | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 3,101,977 | -25,997 | 3,075,980 | | II. Unrestricted Shares | 4,040,013,796 | 25,997 | 4,040,039,793 | | III. Total Shares | 4,043,115,773 | 0 | 4,043,115,773 | - Reason for share change: According to relevant laws and regulations, directors, supervisors, and senior management of the company may not transfer more than 25% of their total shares in the company annually during their tenure. During the reporting period, executive restricted shares decreased by a total of 25,997 shares[119] Share Capital Changes The company's total share capital remained unchanged, with a minor decrease in restricted shares due to executive transfers and a corresponding increase in unrestricted shares, having no material impact on financial indicators - The company's total share capital remained unchanged, with a minor decrease in restricted shares due to executive transfers and a corresponding increase in unrestricted shares, having no material impact on financial indicators[119] - The share changes had no significant impact on basic and diluted earnings per share, or net assets per share attributable to common shareholders for the most recent year and period[121] Changes in Restricted Shares During the reporting period, the total number of restricted shares decreased by 25,997 to 3,075,980, all of which are executive restricted shares with no specific release date Changes in Restricted Shares | Shareholder Name | Restricted Shares at Period-Beginning (shares) | Shares Released from Restriction in Current Period (shares) | Shares Added to Restriction in Current Period (shares) | Restricted Shares at Period-End (shares) | Reason for Restriction | Release Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Other | 3,101,977 | 25,997 | 0 | 3,075,980 | Executive restricted shares | Not applicable | Securities Issuance and Listing The company reported no securities issuance or listing activities during the reporting period - The company reported no securities issuance or listing activities during the reporting period[123] Shareholder Numbers and Shareholding Status As of the reporting period end, the company had 242,408 common shareholders, with TCL Technology Group (Tianjin) Co., Ltd. as the largest shareholder, holding 27.36% - Total number of common shareholders at period-end: 242,408 accounts[124] Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio | Number of Shares Held at Period-End (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | | TCL Technology Group (Tianjin) Co., Ltd. | Domestic non-state-owned legal person | 27.36% | 1,106,278,267 | 1,106,278,267 | | Hong Kong Securities Clearing Company Limited | Overseas legal person | 2.78% | 112,577,011 | 112,577,011 | | TCL Technology Group Co., Ltd. | Domestic non-state-owned legal person | 2.55% | 102,999,833 | 102,999,833 | | Industrial and Commercial Bank of China Co., Ltd. - Huatai-PineBridge CSI 300 ETF | Other | 1.43% | 57,671,455 | 57,671,455 | | National Social Security Fund 118 Portfolio | Other | 1.12% | 45,445,667 | 45,445,667 | - The company's top 10 common shareholders and top 10 unrestricted common shareholders did not engage in agreed repurchase transactions during the reporting period[126] Changes in Shareholdings of Directors, Supervisors, and Senior Management The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period, as detailed in the 2024 annual report - The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period, as detailed in the 2024 annual report[127] Changes in Controlling Shareholder or Actual Controller The company reported no changes in its controlling shareholder or actual controller during the reporting period - The company's controlling shareholder did not change during the reporting period[128] - The company's actual controller did not change during the reporting period[128] Preferred Share Information The company reported no preferred shares during the reporting period - The company had no preferred shares during the reporting period[129] Bond-Related Information The company reported no bond-related information during the reporting period - The company reported no bond-related information during the reporting period[131] Financial Report This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity for both consolidated and parent company levels Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[133] Financial Statements This section provides the company's H1 2025 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity Consolidated Balance Sheet Major Data | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Total Assets | 124,816,913,561.53 | 125,597,525,162.66 | | Total Liabilities | 83,049,765,840.31 | 79,127,416,102.65 | | Total Owners' Equity Attributable to Parent Company | 26,685,912,021.76 | 30,906,672,036.26 | Consolidated Income Statement Major Data | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 13,398,123,075.86 | 16,213,493,017.52 | | Net Profit | -4,836,171,176.06 | -3,175,764,300.96 | | Net Profit Attributable to Parent Company Shareholders | -4,242,357,243.31 | -3,063,596,483.25 | | Basic Earnings Per Share | -1.0624 | -0.768 | Consolidated Cash Flow Statement Major Data | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 523,173,719.73 | 128,101,783.40 | | Net Cash Flow from Investing Activities | -5,196,077,768.90 | -5,492,524,081.76 | | Net Cash Flow from Financing Activities | 2,627,496,966.68 | 2,887,430,778.57 | | Net Increase in Cash and Cash Equivalents | -2,018,078,563.75 | -2,483,541,919.63 | Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were 124.82 billion yuan, with total liabilities of 83.05 billion yuan and equity attributable to parent company owners of 26.69 billion yuan Consolidated Balance Sheet Major Data | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Total Assets | 124,816,913,561.53 | 125,597,525,162.66 | | Total Liabilities | 83,049,765,840.31 | 79,127,416,102.65 | | Total Owners' Equity Attributable to Parent Company | 26,685,912,021.76 | 30,906,672,036.26 | | Minority Interests | 15,081,235,699.46 | 15,563,437,023.75 | Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were 56.26 billion yuan, with total liabilities of 27.55 billion yuan and total owners' equity of 28.70 billion yuan Parent Company Balance Sheet Major Data | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Total Assets | 56,255,983,031.13 | 57,463,001,003.33 | | Total Liabilities | 27,551,723,940.68 | 28,509,417,613.89 | | Total Owners' Equity | 28,704,259,090.45 | 28,953,583,389.44 | Consolidated Income Statement In H1 2025, consolidated total operating revenue was 13.40 billion yuan, a 17.36% decrease, resulting in a net loss of 4.84 billion yuan and a net loss attributable to parent company shareholders of 4.24 billion yuan Consolidated Income Statement Major Data | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 13,398,123,075.86 | 16,213,493,017.52 | | Total Operating Costs | 16,726,406,188.96 | 18,527,425,513.75 | | Net Profit | -4,836,171,176.06 | -3,175,764,300.96 | | Net Profit Attributable to Parent Company Shareholders | -4,242,357,243.31 | -3,063,596,483.25 | | Basic Earnings Per Share | -1.0624 | -0.768 | Parent Company Income Statement In H1 2025, the parent company's operating revenue was 185 million yuan, a 10.0% decrease, resulting in a net loss of 252 million yuan, an expansion of the previous year's loss Parent Company Income Statement Major Data | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Operating Revenue | 184,702,083.79 | 205,112,852.94 | | Operating Profit | -245,984,032.37 | -152,351,788.24 | | Net Profit | -251,502,888.85 | -172,552,139.57 | | Basic Earnings Per Share | -0.0241 | -0.015 | Consolidated Cash Flow Statement In H1 2025, consolidated net cash flow from operating activities was 523 million yuan, a 308.40% increase, while net cash used in investing activities was 5.20 billion yuan Consolidated Cash Flow Statement Major Data | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 523,173,719.73 | 128,101,783.40 | | Net Cash Flow from Investing Activities | -5,196,077,768.90 | -5,492,524,081.76 | | N