TCL科技：2024年年度报告

2Embark on the Voyage and PressAheadAgainst All OddsANNUAL REPORT 2024Chairman's StatementIn 2024, due to the complex international economic situation and the acceleration of globalsupply chain restructuring, numerous uncertainties occurred to the corporate development. Facedwith a complex external environment,the Company consistently maintained strategic resolve,concentrating on the three core businesses that include display, new energy photovoltaic and othersilicon materials. By dedicating to our own business,the Companyaimed to enhance its relativecompetitiveness. In 2024,theCompanyachieved an operating revenue of RMB 164.8 billion, with anet profit attributable to shareholders of the listed companies of RMB 1.56 billion and an operatingcash flow of RMB 29.5 billion, demonstrating overall stable operations.TCL CSOTmaintained a basic balance between supply and demand within the industry for itsdisplay business and seized new business opportunities brought by the trend towards larger-sizedproducts and the expansion of AI applications for continuing to optimize its development strategy,business and product structure, enhancing its relative competitiveness and actively improving itsglobal layout. For display business, theCompany achieved an annual operating revenue of RMB104.3 billion and a net profit of RMB 6.23 billion, showing significant year-on-year improvement.The competitiveness of LCD product business achieved a leading position, with the market share ofTV products firmly ranked in top two globally, and that of commercial display products ranked in thetopthree worldwide. The Companyacquired LGD's LCD panel and module factory in Guangzhou,thus further strengthening its competitiveness in the LCD industry. The small and medium-sizeddisplay business grew rapidly, with market share in monitors rising to the second globally, and thatin gaming monitors and LTPS laptops and tablets ranked first worldwide. The competitiveness offlexibleOLED business was enhanced,with optimized product structure and significantimprovements in performance. The Companywill strive to enhance its competitiveness in the NB,vehicle-mounted devices, and specialized display businesses, and actively design the layout of MLED.This year,the Companyis confident in maintaining the rapid growth in its display business, andfurther improving operational benefits. 3Global installation of new energy photovoltaic devices continues to grow, but competition acrossall segments of the Chinese industrialchain has intensified, with a mismatch between supply anddemand at the market and leading to losses across the entire industry. TZE's photovoltaic business isimpacted by the downturn in the industry cycle, coupled with deviations in its own operationalstrategy, shortcomings in its business structure and some errors in making decisions on businessoperation, resulting ina deterioration of business operation performance. During the reporting period,the Companyachieved an operating revenue of RMB 28.4 billion at a year-on-year decline by 52%;and the net profit attributable to shareholders was RMB-9.82 billion. TheCompany is striving totransformits business philosophy,optimize its organizational processes,advance businesstransformation and reshape its core competencies.In the first quarter of 2025, TZE’s operatingperformance showed sequential improvement and the Company is confident in achieving its growthtargets for the year.During the reporting period,Zhonghuan Advancedachieved a 30% revenue growth whileexpanding its market share. The Company remains committed to strengthening its competitive edgein the global silicon materials industry.The Company sustained robust operations and made steadyprogress in other business segments.In 2024, the Company invested RMB 8.87 billion in R&D, accounting for 5.4% of the operatingrevenue. TCL CSOT, focusing on the research in new display technology and materials, achievedbreakthroughs in printed OLED technology, materials and equipment.Leveraging the opportunitiespresented by industrial technology upgrading, TZE has established a new BC cooperation ecosystemby commercializing intellectual property and patents. During the Reporting Period, the Companyfiled 433 new PCT patent applicationsand 2,582 new invention patent applications.The adjustment in the global economic and trade landscape has significantly impacted businessoperations. While the effects on display businesses andother siliconmaterials businesses are expectedto remain largely manageable, the new energy photovoltaic sector is likely to face more substantialchallenges. The Company is adjusting its global industrial layout, strengthening core capabilities totackle challenges.Looking ahead, the Company aims to achieve global leadership by pursuing a strategy ofinnovation-driven development in advanced manufacturing, and worldwide operations. By focusing 4on core businesses and enhancing relative competitiveness, we will embark on the voyage and pressahead aga