TCL科技：2022年年度报告摘要(英文版)

Stock Code: 000100 Stock Abbreviation: TCL TECH. Announcement No.: 2023-010

TCL科技集团股份有限公司

TCL Technology Group Corporation

ANNUAL REPORT 2022 (Summary)

March 30, 2023

Breaking the Adversity with Strengthened Basic Competitiveness

ANNUAL REPORT 2022 Chairman's Statement2022 was a year full of opportunities and challenges. 2022 witnessed dramatic changes in theglobal 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-techmanufacturing 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. Theglobal industrial pattern was restructured. Under this background, China's high-tech manufacturingindustry also faced pressure of transformation and upgrading. We have built our competitiveadvantages in the fields of semiconductor display and new energy photovoltaic, and will take theopportunities of global energy transition and strengthening high-tech industrial chain, activelyrespond to risks and turn crises into opportunities. We will continue to achieve high-quality corporatedevelopment 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 RMB166.55billion, an increase of 1.8%, a net profit of RMB1.79 billion, with the net profit of RMB260 millionattributable 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 pricesof large-sized panels dropped significantly, and the operating performance of the semiconductordisplay industry hit a record low during the Reporting Period. The Company achieved a year-on-yearincrease in the sales area of semiconductor displays at 8.3%, and earned a revenue of RMB65.72billion, 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 asorganizational changes and management optimization. With strengthened advantages and shored upweakness parts, TCL CSOT accelerated the adjustments to product structures, actively exploredemerging areas, and promoted balanced business development. In its large-size product business, TCLCSOT has consolidated its leading position in TV panels with a high-end product strategy, andvigorously developed commercial displays such as interactive whiteboards, digital signs, and videowalls. TCL CSOT ranked first in the world in the field of shipment of 8K and 120HZ high-end TVpanels and interactive whiteboards. As production lines dedicated to IT products, the t9 adopted oxidesemiconductor 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 furtherconsolidated the business development, all of which would drive a new round of growth of TCLCSOT.With increasing transformation of global energy structure, the new energy industry has usheredin historic opportunities. In response to the rapid development of the new energy industry, TCLZhonghuan continued to play its leading advantages in advanced capacity layout, technologicalinnovation, 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 revenueof 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 waferprojects were put into production in Tianjin and Yixing successively, with the advantageous capacityrapidly increased. TCL Zhonghuan’s capacity for photovoltaic crystalline silicon was increased to140GW, making it the world's largest silicon wafer supplier. The highly-efficient laminated tilemodule intelligent manufacturing projects in Jiangsu and Tianjin have been entered the SOP, with asteady increase in the market share. Through deepening collaboration with Maxeon in terms of thesupply chain, production, and channels, TCL Zhonghuan has accelerated its global business layout.Affected by the economic environment, both Highly and Tianjin Printronics experienced a slightdecline in their operating performance, but they maintained strong potentials for recovery. Theinvestment business continues to focus on business layout and exploration alongside the industrialchain in support of the Company’s main businesses.The Company took product technology innovation as the core driving force, and empoweredmanufacturing transformation and upgrading with digitalization. The Company insisted on investingin 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 2,244applications for patents of technologies and material in the field of quantum dot electroluminescence,ranking second in the world. The semiconductor display business promoted the digitalizedmanagement in the whole production process and entire product cycle. The Company has establishedan industry-leading Industry 4.0 system for the new energy photovoltaic business, leading themanufacturing revolution in the industry.

In the future, global economic development still faces uncertain factors, and the restructuring ofthe political and economic patterns will intensively affect the economic trends of China and the restof the world. At present, China is dedicated to high-quality economic development and independentdevelopment of high-level technologies, which brings significant opportunities for the development

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 andbusiness strategies, adhere to the bottom-line business thinking, ensure strong risk prevention, andbreak the adversity with strengthened competitiveness.The semiconductor display industry has moved downwards from the middle of 2021, and stayedat the historic bottom for a long time due to the economic slowdown. Leading enterprises increasinglyfocus on the supply-demand balance and industrial profits. With the industry integration, the Mattheweffect 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 torebound. 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 linesbased on medium-sized display panels featuring high added value, and the orderly progress of LTPS6-gen production line, which mainly produces medium and small-sized display panels, TCL CSOTwill 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 andcarbon neutrality, the new energy industry has entered a stage of rapid development. In terms of thenew energy photovoltaic business, the Company will further expand the technological and productadvantages of G12/N silicon wafers, accelerate the layout of advantageous capacity, and cooperatewith global partners to expand overseas markets. TCL Zhonghuan will provide an ongoing growthengine to the Company. Several projects jointly invested by the Company and partners have beenlaunched, including 100 thousand tons of granular silicon, silicon-based materials and 10 thousandtons of electronic polysilicon, which will further improve the Company’s layout in the new energyphotovoltaic and semiconductor material industry chain and enhance the stability of the Company’sindustry chain.The manufacturing industry acts as the backbone of the national economy, while high-techindustries represent national competitiveness. Being confident in the future development, we willfocus on core segments and drive the healthy corporate development in support of the high-qualitydevelopment 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 supportfrom all our partners and users, as well as for the efforts of all employees!

March 30, 2023

Part I Important Notes

This summary is based on the full text of the 2022 Annual Report of TCL Technology GroupCorporation. To obtain a full picture of the operating results, financial position and futuredevelopment plans of the Company, investors should carefully read through the annual report releasedon the media designated by the China Securities Regulatory Commission.

All the Company’s directors attended the Board meeting for the review of this Report and itssummary.

This Report and its summary have been prepared in both Chinese and English. Should there beany discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.Independent auditor’s modified opinion

□ Applicable √ Not applicable

Board-approved final cash and/or stock dividend plan for ordinary shareholders

√ Applicable □ Not applicable

Any capital reserves converted into share capital or not

√ Applicable □ Not applicable

The Board has approved a final dividend plan for the ordinary shareholders as follows: based on the Company’s share capital asat 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 10shares 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 thedividend plan, to the total share capital of the Company due to any convertible bonds-to-stock programs, share repurchases, exercisesof equity incentives, new share issues in refinancing, etc., the dividend will be adjusted according to the principle of “adjusting thetotal conversion amount under the same conversion ratio”, subject to the actual conversion amount.

Board-approved final cash and/or stock dividend plan for preference shareholders

□ Applicable √ Not applicable

Part II Corporate Information

1. Stock Profile

2. Main businesses or products of the Company during the Reporting Period

The Company’s main business structure consists of semiconductor display business, new energyphotovoltaic and semiconductor materials business, industrial finance and other businesses. The

Company will continue to optimize its business structure and concentrate its resources on its mainbusiness, so as to achieve the strategic goal of two global leading core industries: semiconductordisplay, new energy photovoltaic and semiconductor materials.

For details of the Company’s business, please refer to “Part III Management Discussion and Analysis” herein.

3. Key Accounting Data and Financial Indicators

(1) Key accounting data and financial indicators in the past three years

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 forBusiness Enterprises issued by the Ministry of Finance, the Company implemented related requirements and retroactively adjustedrelevant items of the financial statements as at the beginning of the year and the same period of the previous year. Such change inaccounting policies has no material impact on the Company’s financial position and operating results.

TCL TECH

Semi-conductordisplay

Other

Other

TCL CSOT

ZhonghuanPhotovoltaic

TCL Capital

Juhua

Juhua

MokaTechnology

(2) Main accounting data by quarter

Unit: RMB

Indicate whether any of the quarterly financial data in the table above or their summations differs materially from what has beendisclosed in the Company’s quarterly or interim reports.

□ Yes √ No

4. Equity and Shareholders

(1) Table of the total number of ordinary shareholders and preference shareholders with resumed votingrights as well as shareholding of the top ten shareholders

Unit: share

(2) Total number of preferred shareholders and top 10 preferred shareholders

□ Applicable √ Not applicable

(3) Disclosure of property rights and control relationship between the Company and the actual controllerwith block diagram

□ Applicable √ Not applicable

5. Existing bonds on the date of approval and disclosure of the annual report

√ Applicable □ Not applicable

(1) General Information on Corporate Bonds

Unit: RMB'0,000

(2) The latest tracking ratings and rating changes of bonds

□ Applicable √ Not applicable

(3) Key accounting data and financial indicators of the Company for the past two years as at the end of the Reporting Period

Unit: RMB'0,000

During the Reporting Period, the operating performance and profitability of the Company’s subsidiaries decreased year-on-year due to the cyclicalimpact of the panel industry, resulting in large changes in the Company’s accounting data and financial indicators.

Part III Report of the BoardCompany-related industry outlook in the reporting periodSince 2022, the international political and economic patterns have been restructured,protectionism and geopolitics have intensified the trend of backlash against globalization, andinflation pressures have led to tightened monetary policies in major developed economies, increasinguncertainty in global economic development. Facing increasingly severe business environment, TCLTech 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 netprofit of RMB260 million attributable to the shareholders of listed companies, and net operating cashflow of RMB18.43 billion. The main reasons for the decline in the Company’s performance are: thedownturn in the semiconductor display industry, a significant drop of product prices. The Companyachieved 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 Companyfirmly occupied the second largest TV panel market share in the world. The production line for oxidesemiconductor displays positioned as IT products has been put into production in Guangzhou,supporting the accelerated growth of medium-sized product businesses. Facing the downward cycleof the industry, TCL CSOT has increased confidence in development, actively optimized its capacitystructure, and improved its business portfolio, well prepared for future development.New energy photovoltaics keeps sound momentum under the policy of carbon peaking andcarbon neutrality. However, industry competition was increasingly intensifying, upstream rawmaterial prices fluctuated, and excess earnings further concentrated in enterprises with strongercomprehensive competitiveness. With the global industrial restructuring, China's semiconductorindustry has ushered in a golden opportunity of transformation and upgrading. TCL Zhonghuan givesits leading advantages in product and process technologies into full play, accelerates industrialtransformation, 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 Zhonghuanachieved a revenue of RMB67.01 billion, a year-on-year increase of 63.0%, and a net profit ofRMB7.07 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, operatingcapabilities across cycles, and core competitiveness for global operations.Strengthening the competitiveness based on core businesses, optimizing competitivestrategies and seeking business improvement, and promoting the healthy and sustainabledevelopment of the industry. In the face of economic downturn and intensified industrialcompetition, 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. Facingfluctuations in demands for semiconductor displays, the Company emphasizes industry supply-demand balance and corporate profitability to continuously optimize competitive strategies andimprove economic efficiency. In the fields of new energy photovoltaic and semiconductors, theCompany will continue to give play to the advantages of its advanced capacity and the Industry 4.0platform, 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 andprospective investment. In 2022, the Company invested RMB10.78 billion in R&D, a year-on-yearincrease 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 capacityin 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 dotelectroluminescence has reached 2,244, ranking second in the world. The export market share of itsG12 large-sized and highly efficient N-type silicon wafers ranked first in the world. The Companycontinues to lead the photovoltaic industry in terms of the process and technology upgrading ofthinning and thin wiring. The Company has deeply integrated digitalization and advancedmanufacturing, achieved dynamic management throughout the full production process ofsemiconductor displays and the entire life cycle of products. The Company takes a lead in the industryin 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 “dual circulation” strategy, actively exploring overseas markets, and integrating

localized operations into the global industrial chain. Facing adjustments and restructuring of theglobal supply chain, the Company has strengthened its market operations in China, while activelyexploring overseas markets. From exporting products to exporting industrial capabilities, theCompany has built a global layout of industrial chains and supply chains. In the field ofsemiconductor displays, the India Factory of TCL CSOT has been put into operation, and willcontinue to strengthen its global strategy in the production, marketing, and research process in thefuture. In the field of new energy photovoltaics, TCL Zhonghuan actively expands its global presence.An industrial chain system is taking shape with global competitiveness through Maxeon photovoltaiccell 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 keepsgrowing around the world, the "Carbon Peaking and Carbon Neutrality" trend accelerates the newenergy transformation, the semiconductor industry continues to see an increase of localization, andChina's technology industry ushers in a golden opportunity of rapid development. Facing theopportunities, the Company will adhere to the bottom line of business, drive development withinnovation, and actively improve the global industrial layout. TCL Tech will continue to focus on thenational strategic industry that emphasizes high technology, heavy assets, and a long cycle. With themission and vision of “leading technology and mutually beneficial cooperation”, TCL Tech will meetthe requirements of "improving operational quality and efficiency, enhancing strengths to shore upweaknesses and accelerating global expansion as well as innovation-driven development” to take alead in the world.Main businesses of the Company during the reporting periodBased on the semiconductor display business, new energy photovoltaic and semi-conductormaterials as the main business, the Company will continue to optimize its business structure, andfurther focus on its main businesses, to achieve the strategic goal of global leadership in its two coreindustries.

TCL TECH

Semi-conductordisplay

Industrial finance &investment

Industrial finance &investment

Other

Other

TCL CSOT

ZhonghuanPhotovoltaic

TCL Capital

Juhua

Juhua

MokaTechnology

(I) Semiconductor display businessIn 2022, the global semiconductor display market experienced significant ups and downs. Dueto multiple impacts such as geopolitical conflicts and inflation, the demand from the end-users fordisplays in major markets dropped significantly, product prices hit a record low, and the panel industrysuffered operating losses.During the Reporting Period, TCL CSOT further consolidated its position in the industry,achieved a sales area of 42.75 million square meters, an increase of 8.3% year-on-year. TCL CSOTranked second in the world in terms of the market share of TV panels. Affected by the decline inprices of major display products, TCL CSOT earned a revenue of RMB65.72 billion from thesemiconductor display business, a year-on-year decrease of 25.5%, and saw a full-year loss in 2022.In response to the challenges, TCL CSOT actively made changes, focused on extreme cost efficiency,improved capacities of risk control and cyclic resilience, and achieved operating cash flow ofRMB14.76 billion. TCL CSOT will accelerate the adjustments to product structures, actively explorenew customers, and become a leader of comprehensive displays in full sizes.In its large-size product business, TCL CSOT has maintained scale leadership, and hasconsolidated its leading position in TV panels with a high-end product strategy, and vigorouslydeveloped commercial displays such as interactive whiteboards, digital signs, and video walls.Three 8.5-generation line factories t1, t2, and t10, and two 11-generation line factories t6 and t7, havemaintained efficient operations. TCL CSOT ranked second in the world in terms of the scale of thehigh-generation lines, with the market share of mainstream products leading the world. TCL CSOTranked first in the world in terms of the scale of 55-inch and 75-inch products, and second in theworld in terms of the share of 65-inch products. TCL CSOT played its advantages in high-generationlines and cutting-edge technology and focused on high-end panel products, ranked top in the worldin terms of sales performance of 8K/120HZ products. TCL CSOT has become a major supplier forleading customers in the commercial markets such as interactive whiteboards, digital signs, and videowalls. TCL CSOT ranked first in the world in terms of the market share of interactive whiteboardsand third in the world in terms of the market share of video walls. Its product and customer structureshave been continuously optimized.In its medium-size product business, TCL CSOT has accelerated the expansion of newbusiness such as IT and vehicle screen products while improving the distribution of productioncapacity to create a new growth engine. In order to meet market demand, the Company hasoptimized its capacity layout, improved its product series, and strengthened customer development,achieving rapid growth in the high-end IT market. The Company ranked first in the world in terms of

the market share of e-sports displays, second in the world in terms of the market share of the LTPSlaptops, and first in the world in terms of the market share of the LTPS tablet PCs. In terms of on-board products, the Company made breakthroughs in many key customers at home and abroad, andthe shipment volume and revenue scale maintained rapid growth. The 6-generation LTPS productionline is in orderly progress, and the Company’s overall LTPS capacity scale and comprehensivecompetitiveness will rank top in the world. The production line t9 for new oxide semiconductordisplays positioned for businesses such as medium-sized IT and automotive, has been put intoproduction. Combined with the product technologies and customer resources previously accumulatedby the Company, the Company’s medium-sized product business strategy will further bring a newgrowth engine.In its small-size product business, TCL CSOT focused on differentiation technologies, suchas flexible OLED folding and LTPO, while expanding VR/AR new displays to optimize itsproduct and customer structures. TCL CSOT ranked third in the world in terms of the shipmentvolume of LTPS mobile panels from the t3 production line. It independently developed industry-leading 1512 PPI LCD-VR screens and actively exploited new business areas. The capacity of thesecond and third phases of the t4 OLED has been in progress as scheduled, with smooth technologicaliteration and new product development. Several new products, such as folding products, CameraUnder Panel, and LTPO technology, have completed SoP and delivery. The shipment of medium andhigh-end products has continued to increase, and the customer structure has further diversified, layinga foundation for business improvement.In the industry’s downward cycle over the past seven quarters, the inefficient capacity hascontinued to be eliminated, bringing opportunities for industry restructuring and integration, andfurther optimizing the competitive patterns. Also, leading manufacturers in the display industry haveaccelerated destocking under the goal of promoting the supply-demand balance and improvingprofitability. In the fourth quarter of 2022, industry inventory entered a healthy level. At present, theprices of major products have stably rebounded. As the demand of downstream end customers forrestocking has increased, the prices of large-sized display products have risen.Looking into the future, the global economy remains resilient, and the Company is firmlyoptimistic about the development trend and industrial value of semiconductor displays as a coreinformation carrier and main interactive interface in the wave of the digital economy. On the otherhand, the supply side tends to stabilize. Leading enterprises continue to strengthen their technologicaladvantages and economies of scale, the display industry sees further increasing concentration, theindustrial chain reaches a new balance in terms of pricing, and the return on investment in

semiconductor displays will steadily recover.Based on efficiency and effectiveness, TCL CSOT will consolidate its high-end intelligentmanufacturing capabilities through digitalization construction, and improve its comparativecompetitiveness. TCL CSOT will continue to optimize its business portfolio, adhere to the high-endproduct strategy, consolidate its global leading position in large-sized product businesses, improvethe layout and capacity of medium-sized products, enhance the structure and business conditions ofsmall-sized product customers, and accelerate its transformation and upgrading from a leader of large-sized displays to a leading enterprise of full-sized displays. TCL CSOT will continue to increaseinvestment in research and development, and work with industry chain partners to jointly build anindustrial ecosystem around new display technologies such as printed OLED, Miniled, Microled, andSilicon-based OLED micro displays.(II) New energy photovoltaic and semiconductor materials businessDuring the Reporting Period, under the background of the continuous advancement of carbonneutrality goals and the shortage of energy caused by geopolitical conflicts, the global energystructure continued to shift to renewable energy, and the photovoltaic industry maintained rapiddevelopment. In response to the price fluctuation of materials on the upstream of the supply chain,the Company improved its industrial layout, built operational barriers with its technical strength, andgrasped the initiative in the process of rapid changes of the industry. The new energy photovoltaicbusiness of the Company has comprehensively moved towards global leadership. During thereporting period, TCL Zhonghuan maintained a high growth rate of performance, achieved a revenueof 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%.

Releasing advanced capacity of photovoltaic materials, optimizing the product structure,and achieving a rapid growth in production and sale scales. During the Reporting Period, theCompany’s G12 advanced capacity continued to expand, and the capacity of the Phase VI 50GW(G12) monocrystalline silicon materials in Ningxia increased capacity; the smart factory for slicingmonocrystalline silicon wafers in Tianjin (25GW) and the smart factory for slicing monocrystallinesilicon wafers in Yixing (30GW) were put into operation, comprehensively improving the advantagesof economies of scale. As at the end of the Reporting Period, the Company’s total capacity formonocrystalline silicon increased to 140 GW, among which, the G12 advanced capacity accountedfor over 90%. During the Reporting Period, the Company ranked first in the world in terms of thesales market share of photovoltaic silicon wafers, first in the world in terms of the market share ofG12, first in the world in terms of the sales market share of N-type silicon wafers. The production

and sales scales remained leading in the industry.Taking a lead in products such as large-sized, thinned, and N-type silicon wafers, as well asthe development of photovoltaic materials and technologies based on R&D and process capacity.With high-power components keeping growing on the downstream and the rapid increase in thepenetration rate of large-sized silicon wafers, the Company, as the industry leader in large-sized andthinned wafers, continued to expand its G12 product advantages, led the industry in terms of monthlyproduction per furnace and the number of unit wafers produced per kilogram, and effectivelypromoted cost reduction and efficiency increase in the industrial chain. With the technologicalevolution of downstream cells, N-type products have entered an accelerated SoP period, and theCompany has built deep technological barriers in the field of N-type silicon materials. The Companyconsolidated its leading position in the industry for many years in terms of N-type silicon wafers salesin the global market, and excessive returns are expected from future technological changes.Relying on the “G12 + Laminated Tile” dual technology platform and the leading Industry

4.0 System, transforming manufacturing modes in the photovoltaic industry, and jointlybuilding an intellectual property ecosystem with partners. Based on the dual technology platformof "G12 Silicon Wafers + Laminated Tile Module", the Company's laminated tile module productshave significant performance advantages with a rapid growth in scale. The Company continues todeepen the application of Industry 4.0 in all the industrial links, and implement automation andintelligent management throughout the process, with labor productivity far exceeding the industryaverage. The Industry 4.0 significantly improves the product quality and consistency, andcontinuously enhances flexible manufacturing capabilities. The comprehensive introduction of theIndustry 4.0 System will provide the Company with comparative competitiveness in terms oflocalized manufacturing worldwide. The Company will work with partners such as MAXEON tojointly build an intellectual property ecosystem, and collaborate on innovation and expanddifferentiation competitiveness, to lay a solid foundation for the global strategic layout of thephotovoltaic industry.The transformation of the global energy structure injects long-term development vitality into thephotovoltaic industry, and the continuously improved economic efficiency of photovoltaic powergeneration further stimulates market demand. The global installed photovoltaic capacity is expectedto exceed the expected capacity. Looking into the future, TCL Zhonghuan will continue to promotetechnological changes related to photovoltaic materials such as large-sized, thinned, and N-typesilicon wafers, create an ecosystem of cell and module industries with differentiation strategies,deepen the application of the Industry 4.0 System and flexible manufacturing, strengthen its core

competitive advantages globally, and consolidate its leading position in the new energy photovoltaicindustry.

TCL Tech will continue to focus on semiconductor display, new energy photovoltaic, andsemiconductor material businesses to achieve the strategic goal of global leadership.

TCL Technology Group Corporation

March 30, 2023