TCL

TCL科技集团股份有限公司

TCL Technology Group Corporation

INTERIM REPORT 2026

August 2026

Part I Important Notes, Table of Contents and Definitions Part I Important Notes, Table of Contents and Definitions The Board of Directors (or the "Board"), the directors 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 Interim Report and its summary, and shall be jointly and severally liable for any misrepresentations, misleading statements or material omissions therein. Mr. Li Dongsheng, the person-in-charge of the Company, 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 Interim Report are factual, accurate, and complete. All the Company’s directors attended the Board meeting for the review of this Interim 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 Company does not propose to pay interim cash dividends, issue bonus shares or convert capital reserves into share capital for this interim period. This Report and its summary have been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.

Table of Contents

Part I Important Notes, Table of Contents and Definitions .... 1

Part II Corporate Information and Key Financial Information .... 5

Part III Management Discussion and Analysis .... 8

Part IV Corporate Governance, Environment and Social Responsibility .... 36

Part V Significant Events .... 42

Part VI Changes in Shares and Information about Shareholders .... 54

Part VII Bonds .... 62

Part VIII Financial Report .... 67

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 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

II. Contact Information

III. Other Information

1. Contact Information of the Company

Whether the registered address, office address and their zip codes, website address and email address of the Company changed during the Reporting Period

□Applicable ☑ Not applicable

No changes occurred to the registered address, office address and their zip codes, website address, email address and other contact information of the Company during the Reporting Period. Please refer to the 2025 Annual Report for details.

2. Media for Information Disclosure and Place Where This Report is Lodged

Whether the media for information disclosure and place where this Report is lodged changed during the Reporting Period

□Applicable ☑ Not applicable

No changes occurred to the name and website of the stock exchange website and media on which the Company discloses its Interim Report and the place for lodging such reports during the Reporting Period. Please refer to the 2025 Annual Report for details.

3. Other Information

Whether other information changed during the Reporting Period

□Applicable ☑ Not applicable

IV. Key Accounting Data and Financial Indicators

Indicate whether there is any retrospectively adjusted or restated datum in the table below

□Yes ☑ No

V. Accounting Data Differences under Chinese Accounting Standards for Business Enterprises (CAS), International Financial Reporting Standards (IFRS) and Foreign Accounting Standards

1. Differences in Net Profits and Equity under CAS and IFRS

□Applicable ☑ Not applicable

There is no difference in net profits and net assets between the financial statements prepared in accordance with IFRS and CAS for the Reporting Period of the Company.

2. Differences in Net Profits and Equity under CAS, IFRS and Foreign Accounting Standards

□Applicable ☑ Not applicable

There is no difference in net profits and net assets between the financial statements prepared under CAS, IFRS and Foreign Accounting Standards for the Reporting Period of the Company.

3. Reasons for Accounting Data Differences Above

□Applicable ☑ Not applicable

VI. Non-Recurring Gains and Losses

☑ Applicable □Not applicable

Unit: RMB

Details of other profit and loss items that meet the definition of non-recurring profits and losses:

□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 are listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Of ering 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 Ofering 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. Main Businesses of the Company during the Reporting Period

Since the start of the year, escalating international geopolitical conflicts and surging upstream energy prices have reignited upward pressure on inflation. Against this backdrop, the momentum of global economic growth has weakened, with macroeconomic uncertainties increasing substantially. In the face of external challenges, the Company focused on three key business pillars, including displays, new energy photovoltaics, and other silicon materials. We continuously strengthened the operations barriers characteristic of high-tech, heavy-asset, and long-cycle industries, anchored our leading strategy, and pursued sustainable high-quality development.

During the Reporting Period, the Company achieved operating revenue of RMB 88.65 billion, representing a year-on-year increase of 3.6%. Net profit attributable to shareholders of the Company amounted to RMB 3.81 billion, representing a substantial year-on-year surge of 102.2%, while operating cash flow reached RMB 17.62 billion. As of the end of the Reporting Period, the Company’s debt-to-asset ratio stood at 65.0%, an increase of 0.8 percentage points from the end of the previous Reporting Period; cash and cash equivalents at the end of the Reporting Period were RMB 22.22 billion.

II. Operations Performance of the Company's Core Businesses During the Reporting Period

The Company was deeply engaged in leading edge manufacturing industries characterized by high technology, heavy assets, and long cycles with displays, new energy photovoltaics, and other silicon materials at its core, and continuously promoted technological innovation and industrial advancement supporting the strategic goals of global leadership.

(I) Display Business

1. TCL CSOT

Industry Development and Operating Performance

In the first half of 2026, the global display industry generally maintained stable operations. Affected by geopolitical conflicts and rising raw material and memory prices, user-end demand for consumer electronics came under temporary pressure, with shipments of products such as smartphones and notebook computers posting a decline. Meanwhile, trends toward larger‑ size

TVs, multi‑ display deployments of vehicle‑ mounted devices, and growing penetration of high‑ end displays continued to underpin area‑ based demand for display panels. According to third-party forecasts, the total shipment area of global display panels is expected to remain broadly flat in 2026, while demand for TV and vehicle‑ mounted display panels is set to rise by roughly 2% and 6% respectively. The industry is projected to follow a development pattern characterized by “pressure on shipment volume, stable shipment area, and structural upgrading.”

The LCD industry continued to pursue an on-demand production strategy, while inefficient overseas capacity was phased out. The trend toward larger and higher-end TVs, as well as the expansion of applications such as commercial and vehicle-mounted displays, continued to drive growth in demand for panel area. Leveraging its mature industrial ecosystem, significant cost advantages, and continuous iteration capabilities, LCD further consolidated its mainstream position in the large-sized display segment. OLED accelerated its penetration into the medium‑ size segment, covering notebook computers, tablets, monitors, and vehicle-mounted displays. Mini‑ LED saw accelerated adoption, while Micro‑ LED continued its exploration toward industrialization. Against the backdrop of an evolving supply landscape, expanding application scenarios and accelerated industrialization of new technologies, industry‑ wide competition has shifted away from capacity expansion toward a contest of comprehensive strength centered on technological innovation, product value, operating efficiency and cash‑ flow quality.

During the Reporting Period, amid external pressures from rising memory prices and diverging terminal demand, the Company remained committed to value-oriented operations, under the core theme of “on-demand production, structural optimization, and efficiency enhancement.” TCL CSOT achieved operating revenue of RMB 50.27 billion and net profit of RMB 3.90 billion. Net profit attributable to shareholders of TCL TECH. amounted to RMB 3.28 billion, representing a year-on-year increase of 24.8%. The earlier acquisition of minority interests in Shenzhen CSOT Bandaoti increased the Company’s equity interests in the core t6 and t7 assets, thereby enhancing the contribution of these quality assets to profits attributable to shareholders of the listed company. The acquisition of the minority interests in t9 progressed smoothly, with the equity transfer recently completed. This transaction will further enhance the contribution of the quality t9 asset to profits attributable to shareholders of the listed company.

(1) LCD Business Maintained Its Stable Leading Position, While IT and Vehicle-Mounted Display Businesses Achieved Rapid Growth

Leveraging its portfolio of large-, medium-, and small-sized production lines, the Company continued to optimize its product and customer mix. In the large-sized display segment, the Company capitalized on the trend toward larger and higher-end TVs. During the Reporting Period, the average shipment size of its TV panels reached 55.3 inches, 2.9 inches above the industry average. Through coordination across multiple production lines, improved manufacturing efficiency and refined supply chain management, the Company further enhanced the profitability of its LCD business.

In the medium‑ size segment, as t9 further released its capacity and strengthened capacity coordination with t11, shipments of high‑ end products including high‑ mobility oxide displays grew rapidly, driving t9’s net profit to more than double year‑ on‑ year. The Company maintained its global No.1 market share in e‑ sports monitor panels. It launched the world’s first native 1080p 1000Hz monitor. Building on its leading position in the consumer e‑ sports market, it further forayed into the professional e‑ sports segment and became the official display for the 2026 CrossFire Pro League (CFPL). The Company achieved stepwise breakthroughs in oxide technology—from conventional oxide to high-mobility oxide 30 and further to ultra-highmobility oxide 50—and realized large-scale adoption in mainstream tablet devices. These technological and product strengths drove market share gains against broader market headwinds. Notebook panel shipments to leading customers ramped up smoothly and grew rapidly. In the second quarter, the Company lifted its global notebook‑ panel ranking from fourth to second, while retaining the world’s‑ second‑ largest market share for tablet panels. Breakthroughs in medium‑ sized panels including notebook panels marked TCL CSOT’s successful forging of a second growth engine for its display business. This further refined its full‑ size application footprint and reinforced its position as a comprehensive leader in the display industry.

The vehicle-mounted devices maintained rapid growth, becoming the fastest-growing segment of the Company’s medium-sized display business. The Company’s share of LTPS vehicle-mounted panel shipment area has remained the largest worldwide since Q4 2025, while its shipment volume grew by more than 50% year on year in H1 2026. The Company continued to expand to cover high-value applications such as rear-seat displays, armrest displays, and P-HUDs, accelerating its evolution from a supplier of stand‑ alone display products to a provider of integrated display solutions for intelligent cockpits. Its innovative “Safe Driving Triple-Screen” solution extended cockpit safety from passive protection to active sensing and coordinated interaction. By capitalizing on the growth in exports by Chinese automakers and achieving breakthroughs with internationally renowned automakers, the Company continued to optimize the customer and regional mix of its vehicle-mounted devices. Revenue increased by 46% year on year, further enhancing its capabilities in serving and managing customers globally.

(2) FMM OLED Came Under Periodic Pressures, While Operating Quality Improved Quarter by Quarter

Affected by rising memory prices and weakening smartphone demand, the FMM OLED business came under periodic pressures and recorded greater losses. The Company sharpened its focus on high-value-added technologies (foldable displays, LTPO, PLP, privacy displays, and Tandem) and expanded into diverse applications such as tablets, wearables, and vehicle‑ mounted displays. It also drove progress in material localization, yield improvement, and cost control. In Q2, the OLED business’s operating margin improved quarter on quarter, with operating quality rising steadily.

The Company has successfully ramped up mass production and deliveries of foldable products to branded customers, demonstrating end‑ to‑ end capabilities across technology R&D, customer qualification, and high‑ volume manufacturing. Looking ahead, the Company will capitalize on market opportunities for foldable products and continue to expand its coverage of brand customers and mass-production projects. Meanwhile, the Company has been steadily advancing key technological iterations in areas such as panel structure, support materials, hinge compatibility, and film-layer design. These efforts are aimed at further improving crease performance, reliability, and display quality, thereby continuously enhancing product competitiveness and expanding market share.

(3) Commercialization of Printed OLED and MLED Progressed in an Orderly Manner

The Company, in collaboration with MSI, has jointly launched the industry's first printed OLED desktop monitor targeting the mainstream consumer market, marking a pivotal expansion of printed OLED commercialization from professional-grade displays into the consumer electronics segment. Currently, the yield and cost of the relevant products have reached the standards required for mature mass production. The Company is advancing the validation of printed OLED products for IT applications—including monitors and notebooks—with multiple leading end‑ device brands, with all developments in full alignment with mainstream market specifications. Product maturity and commercial validation results have already met the mass‑ production requirements of tier‑ 1 customers. Leveraging the t12 production line, the Company achieved volume production and shipment of IT e-sports products. Multiple projects will successively enter mass production during the year, steadily expanding customer coverage and laying the groundwork for the large-scale production of t8. On May 8, 2026, the main structure of the Guangzhou t8 project reached its topping-out milestone ahead of schedule, and mass production is expected to commence in Q4 2027. Going forward, t8 will leverage its scale manufacturing advantages to primarily serve mainstream consumer electronics, while t12 will target differentiated, high‑ value‑ added products. This will deliver a well‑ coordinated capacity layout with complementary functional roles.

In the MLED business, the Company completed the equity transfer of Fujian Zhaoyuan Optoelectronics Co., Ltd. and renamed it Fuzhou Huazhao Optoelectronics Co., Ltd. The integration of upstream LED chip technologies and capacity began to deliver results, driving a significant improvement in operating performance. In July, the Company established Shenzhen Huazhao Xingguang Technology Co., Ltd. to accelerate the development of advanced LED chip and packaging capacity, further improving its vertically integrated “chip-packaging-module” layout. Phase I of the Suzhou COB direct‑ display project has achieved full‑ capacity production. Core equipment for Phase II began moving‑ in in May, with mass production commenced in August. Going forward, the Company will continue to upgrade its Mini LED backlight and direct-display products and strengthen upstream and downstream coordination in technology, capacity, and customer development, thereby enhancing cost competitiveness and market performance.

(4) AI Deeply Empowered the Operating System, While New Businesses Achieved Breakthroughs on Multiple Fronts

The Company continued to advance its “AI for Real-World Applications” initiative. Underpinned by its five-star AI architecture comprising “one data lake, one large model, and three platforms,” it embedded AI across material R&D, product design, process optimization, quality management, supply chains, and operating decisions, shifting R&D from an experience-driven approach toward one powered by data and models and advancing manufacturing from automation and digitalization toward intelligence.

New businesses achieved breakthroughs on multiple fronts, while the specialized display business maintained rapid growth. LTPS projector products secured a top‑ two position in the industry by market share. Following the acquisition of Hunan Chuangke Photoelectric, the Company accelerated development of LCOS projection and 3D‑ printing light‑ engine technologies. For its e‑ paper business, it built a dual‑ site manufacturing footprint, with a domestic site for medium‑ and large‑ sized products and a Vietnamese site for small‑ sized products. The Company commenced construction of a vehicle-mounted dimming glass project, with sample production planned for the second half of the year. XR products achieved stable shipments to leading customers, while the development of silicon-based LED technology and plans for mass-production lines moved forward at an accelerated pace.

(5) Declining Depreciation and an Orderly Reduction in Capital Expenditure Enhanced Profitability and Cash Flow Quality

As certain mature production lines successively enter periods of declining depreciation, the Company's overall depreciation expenses are expected to decrease in stages from 2026 onward. This will unlock greater profit contributions from existing assets and enhance returns on assets. Going forward, the Company expects its overall capital expenditure intensity to decline and will take a disciplined approach to new capital expenditures while strengthening investment return and capital efficiency management. Stable operating cash flow, coupled with the orderly moderation of capital expenditures, will continue to enhance the quality of the Company’s free cash flow.

Future Development Outlook

Seizing the historic opportunities arising from AI's transformation of smart terminals, advanced manufacturing, and compute infrastructure, the Company will leverage its display core to advance display technology, reinvent its operating model, and expand into shared capability areas—accelerating its shift from a global display leader to a pivotal human-machine interaction interface and advanced manufacturing platform in the AI age.

First, redefining the value of displays. For the new generation of intelligent terminals in the AI era, the Company will drive the transformation of displays from passive information media into intelligent sensing and interactive interfaces. In response to the demands of AI terminals for low power consumption, parallel multitasking, and multi-window interaction, the Company will continue to enhance its capabilities in variable refresh rate, partitioned driving, high image quality, low power consumption, multiple form factors, and system integration. These efforts will drive product upgrades toward "deep adaptation of panels to AI scenarios," continuously expand the boundaries of display applications, and increase per-screen value as well as customer stickiness.

Second, building a product portfolio spanning multiple technology cycles. In large-size LCD, the Company will maintain on-demand production while pushing toward larger formats and higher-end products to strengthen its earnings and cash flow base. Medium-size displays will act as a key growth driver, rapidly penetrating IT, vehicle‑ mounted, and specialty display markets to broaden both market presence and revenue scale. FMM OLED efforts will center on improving customer, product, and cost structures to lift the high-end product mix and operational quality, while printed OLED and MLED will speed through validation, production ramp-up, and commercial scaling. Drawing upon its strengths across multiple technology paths, including HVA, HFS, and printed OLED, the Company will deliver differentiated solutions for various product positioning and application scenarios, advancing from leadership in LCD alone toward comprehensive leadership across multiple display technologies.

Third, restructuring the advanced manufacturing system with AI. The Company will embed data, models, and AI agents throughout its operating value chain and actively explore pathways for building “AI-native factories” and an “AI-native organization.” Since 2023, the Company has independently developed and iterated the X-Intelligence large model, focusing on vertical display scenarios. In relevant automated evaluations and assessments by industry experts, its vertical-domain understanding and deep-reasoning capabilities outperformed mainstream general-purpose overseas large models such as Gemini 3.1 Pro and GPT-5.5 high, placing it at the forefront of the global display industry. In R&D, the Company is fostering integrated collaboration across R&D, manufacturing, and sales to strengthen "do it right the first time" capabilities. In manufacturing, it is pushing toward line-level autonomous perception, selfdiagnostics, and intelligent decision-making. In operations, it is evolving its models from reactive execution to proactive insight—enhancing predictive and decision-making capabilities across the full spectrum of scenarios. In parallel, the Company will strengthen model reliability, closed-loop industrial data systems, AI-agent engineering capabilities, and collaboration mechanisms involving domain experts, building core competitiveness for the intelligent era.

Fourth, unlocking a second growth space through shared foundational technologies. Drawing on its core technological capabilities in large-size glass substrate processing, thin-film deposition, photolithography, etching, automated handling, and smart manufacturing, the Company is pushing forward with critical process validation for glass-based packaging. The Company has assembled a dedicated team and is collaborating with target customers on technical exchanges and joint R&D to address key process challenges, including TGV copper filling, stress control in multilayer structures, and advanced glass substrate processing. It plans to exhibit relevant samples in H2 2026 and begin preparations for a pilot R&D platform. Going forward, the Company will coordinate the adaptation of upstream glass materials and the validation of key equipment for processes such as through-hole formation, electroplating, and CMP polishing. It will also conduct commercial validation focusing on functionality, reliability, mass-production yield, and cost. Meanwhile, the Company is actively exploring opportunities in high-speed optical interconnect and optoelectronic integration, strengthening its technology reserves in perovskites, and pursuing technology development and validation with leading customers in response to the visual, perceptual, and interactive demands of embodied intelligence. This creates a tiered business architecture in which "mature businesses generate value, growth businesses improve the portfolio mix, and forward-looking ventures open up new horizons."

The Company will set key milestones for technology validation, customer introduction, massproduction yield, and investment returns, committing resources in stages and making dynamic adjustments based on validation results. While safeguarding the operational and financial security of its core businesses, it will optimize its business portfolio and cultivate long-term growth drivers.

2. Moka Technology

Moka Technology is a technology manufacturer with a global industrial footprint. It specializes in the ODM business involving the R&D, design, and manufacture of intelligent display terminal products such as TVs, monitors, and commercial displays, and is the world’s largest TV ODM manufacturer. During the Reporting Period, Moka Technology achieved operating revenue of RMB 9.48 billion. Its TV ODM business ranked first globally in shipment volume for 15 consecutive quarters. Monitor ODM shipments increased by 7% year on year, ranking fifth globally, while commercial display shipments grew by 37%, providing fresh impetus to performance growth.

(II) New Energy Photovoltaics Business

The Company’s new energy photovoltaic business remained firmly focused on four priorities: consolidating its competitiveness in crystal and wafer production, advancing its integration strategy into a new stage, accelerating the development of the BC cell ecosystem and patent operations, and pressing ahead with global expansion. These initiatives aimed to bolster capabilities for navigating the industry cycle. During the Reporting Period, the new energy photovoltaic business achieved sales revenue of RMB 11.27 billion, representing a year-on-year increase of 6.0%, while its losses narrowed by 29.6% compared with H1 2025.

The photovoltaic materials business aligned production with actual demand and continued to optimize its supply chain system, reducing costs and enhancing efficiency through process improvements and tighter controls over energy consumption and workforce productivity. During the Reporting Period, wafer shipments reached 53.9 GW, securing the industry’s largest market share, while EBITDA improved by RMB 290 million year on year. Building on its long-standing technological expertise and industry-chain synergies, the Company strengthened the competitiveness of its crystal and wafer products through differentiation and premiumization. Meanwhile, the Company capitalized on growing overseas demand by expanding its customer base in markets such as India and Turkey. The resulting surge in overseas shipments and revenue improved operating quality and supported a recovery in profitability.

During the Reporting Period, module shipments rose 29% year on year despite broader market headwinds. Operating revenue increased by approximately 47% to RMB 5.29 billion, accompanied by year-on-year improvements in average selling prices and gross profit. The cell and module business continued to optimize its product and customer mix, increasing both the shipment contribution of premium products and sales in overseas markets. To address the market demand for high power, high efficiency, high reliability, and multi-scenario applications, the Company established a portfolio of high-efficiency products, including half-cut and multi-cut offerings. High-efficiency products—including new BC and half-cut products—accounted for over 15% of total shipments. The Company's overseas business also capitalized on opportunities in key regional markets, delivering substantial shipment growth across Europe, the Middle East, Australia and New Zealand, and Southeast Asia.

DAS Solar Co., Ltd. has been consolidated into the Company's financial statements starting from the third quarter. Following the consolidation, the Company's production capacity stands at 20GW for cells and 50GW for modules. By integrating R&D, manufacturing, sales, supply chain, and operational management systems, the Company will fully leverage the synergies between the two entities, further enhancing its overall competitiveness. To meet the continued growth in demand for BC products, the Company is drawing upon its established technologies, core patent portfolio, process expertise, and customer base to accelerate the BC conversion of all its cell capacity and 50% of its module capacity. The upgraded capacity is expected to come online successively in the third quarter before entering the ramp-up stage. The Company is also actively expanding into high-value market segments both domestically and internationally, and is expected to continue gaining market share while improving profitability.

(III) Silicon Materials Business

Zhonghuan Advanced serves as the operating entity of the Company’s silicon materials business. During the Reporting Period, Zhonghuan Advanced remained steadfast in its “Lead at Home, Compete Globally” strategy. Focusing on the requirements of advanced-process logic chips, advanced memory chips, and high-end power chips, it continued to advance the R&D, customer certification, and volume introduction of relevant wafer products while optimizing its product and customer mix. During the Reporting Period, Zhonghuan Advanced achieved shipments of 689 MSI, representing a year-on-year increase of 17%. Of these shipments, shipments of 12-inch products accounted for 57.8% of the total, while those of 8-inch and below accounted for 42.2%. Certification and customer qualification with key clients proceeded as planned. The Company recorded operating revenue of RMB 3.04 billion, of which 12-inch products contributed RMB 1.65 billion. While the Company recorded a net loss of RMB 86 million for the period, its operational scale and profitability metrics remained at the forefront of the domestic industry.

Surging demand for AI and computing power has fueled growth in logic and memory chips, while also lifting demand for related power chips. Together with the accelerating push for domestic substitution, the industry has entered an upcycle, leading to both volume and price increases in the silicon wafer market. To capitalize on these market opportunities, Zhonghuan Advanced invested in the Shenzhen Project for Large Wafers Used in Integrated Circuits, accelerating the development of 12-inch wafer capacity with a particular focus on logic and memory applications. Together with its existing production bases in Yixing and Xuzhou, this increased Zhonghuan Advanced’s total planned capacity for 12-inch wafers to 2.1 million pieces per month, further optimizing its regional manufacturing footprint and strengthening supporting services for key customers. Zhonghuan Advanced will continue to advance leading-edge technologies and processes, deepen cooperation with key customers in China and abroad, and accelerate the ramp-up of new capacity to ease delivery pressure, building differentiated competitive advantages through technology, efficiency, and quality.

(IV) Non-core business

During the Reporting Period, Tianjin Printronics Circuit and Highly maintained sound operations, while the Company’s financial and investment businesses continued to generate earnings.

Facing a severe and complex external environment, the Company will adhere to the development philosophy of “Strategic Leadership, Innovation-Driven, Advanced Manufacturing, and Global Operations.” It will seize the historic opportunities presented by the upgrading of advanced manufacturing and the transformation of the global energy structure, achieve sustainable high-quality development, and move toward global leadership.

II. Analysis of Core Competitiveness

Since its establishment in 1981, TCL has consistently demonstrated resilience and adaptability, successfully navigating through various market cycles. Through sustained exploration, reform, and transformation, the Company, which is always standing firm at the forefront and demonstrating the audacity to pioneer, has emerged as a high-tech industry group with global competitiveness.

Strategic Leadership: Leading strategic goals and clear strategic development philosophy

In 2018, TCL underwent its most significant corporate transformation, shifting from a diversified conglomerate to a specialized business model focused on developing high-tech and capital-intensive industries with long investment cycles. Following the delisting of Zhonghuan Electronic in July 2020, the Company officially entered the fields of new energy photovoltaics and silicon materials. TCL TECH. has established a business structure centered on displays, new energy photovoltaic and other silicon materials. The Company followed a consistent logic in its business strategy and development. With complementary business cycles and strong management synergy across its segments, it achieved outstanding competitive strengths.

Guided by its goal of achieving global leadership, the Company is committed to its development philosophy of "Strategic Guidance, Innovation-Driven, Leading Edge Manufacturing, and Global Operations". It prioritizes strengthening its core competitiveness and organizational capacity, and addresses uncertainties in the external environment with clear strategic objectives, leading core competencies and a highly efficient management system.

Scale Leadership: Leading market position and comprehensive business layout

By the end of the Reporting Period, TCL CSOT, as a preeminent global display company and a pioneer in domestic display manufacturing, invested over RMB 300 billion to establish 12 state-of-the-art panel lines (including the t8 line under construction) and 7 module factories, serving a diverse range of global clients. The Company has established its leading position in large-sized panels globally through both self-built production lines and strategic acquisitions. In first half of 2026, the Company ranked second globally in TV panel shipments, and first globally in terms of market share for panels sized 98 inches and above. The Company has built t9 production lines targeting high-value-added mid-sized products such as IT and commercial displays, achieving a full-size strategic layout. In the first half of 2026, it secured the world’s second-largest market share in MNT panels, and led globally in key segments such as e-sports monitors and LTPS laptops. Its strategic MLED direct-display business achieved mass production and delivery. TCL CSOT proactively positioned its high-performance and all-scenario display solutions while bolstering its value chain ecosystem. By expanding its reach from a large-sized display leader to a full-range provider, and transitioning from a panel manufacturer to a comprehensive solution specialist, it successfully navigated multiple industry cycles. Evolving from a "follower" to a "peer" and ultimately a "leader", TCL CSOT achieved sustained highquality development.

Leveraging its wafer business as a cornerstone, TZE expanded downstream into cells, modules, and energy storage, steadily forging a resilient, industry-leading competitive edge. In the photovoltaic wafer segment, TZE capitalized on its advantages in smart manufacturing, technology, and product quality to meet diverse customer requirements. In the first half of 2026, it retained its position as the global leader in terms of comprehensive wafer market share, the largest market share for G12 wafers, and the largest total monocrystalline silicon production capacity. In photovoltaic cells and modules, TZE drew upon its technological prowess in wafer manufacturing to intensify innovation and R&D investment, delivering superior products and solutions to customers. Its acquisition of DAS Solar in July 2026 comprehensively upgraded the cell and module business across product technology, customer channels, and manufacturing capabilities. As China’s photovoltaic industry enters a period of far‑ reaching adjustment, TZE will accelerate its overseas expansion and industrial footprint, strengthen its product capabilities, and build differentiated advantages to navigate industry changes from a more competitive position.

Zhonghuan Advanced remained steadfast in its “Lead at Home, Compete Globally” strategy, establishing itself as one of China’s premier silicon materials enterprises with the most extensive scale, diverse product portfolio, and the most leading edge technology. Serving key global and domestic clients, its revenue from silicon wafers ranked first in China in the first half of 2026. The Company continuously boosted its production capacity for 12-inch large wafers, leading to a rapid surge in both production and sales volumes. In the first half of 2026, revenue from 12-inch large wafers maintained its leading position in China. The Company will continue to diversify its product and customer mix, and build differentiated competitive advantages around the strategic pillars of technology leadership, efficiency enhancement, and outstanding quality.

Technological and Ecological Leadership: Spearheading innovation and fostering extensive collaborations to secure a technological first-mover advantage

The Company has established a strategic foothold in core technologies (i.e., displays, new energy photovoltaics and other silicon materials) by capitalizing on its subsidiaries TCL CSOT and TZE. Through strategic partnerships with upstream and downstream industry players, the Company has built a robust global ecosystem for technology and innovation, and is steadily advancing its technological leadership in next-generation display technologies, G12 and N-type photovoltaic materials, as well as BC cells. The Company has applied for over 80,000 patents, and facilitated or participated in the establishment of more than 300 industry standards, underscoring its status as a preeminent high-tech enterprise. The Company has applied for over 3,200 patents in quantum dot display technology, ranking second globally, which will ensure the independent and controllable development of key technologies for next-generation displays. TCL TECH. has established 32 R&D centers worldwide, and has been certified with 9 national-level open innovation platforms and 33 provincial-level innovation platform qualifications.

Efficiency and Cost Leadership: Navigating cycles with industry-leading efficiency and effectiveness

Based on its scale and technological prowess, TCL TECH. has achieved efficiency and benefits which maintain its industry leadership through continuous management changes, digitalization upgrades, and AI applications. TCL CSOT has leveraged the synergy of its twin factories to optimize production line planning and maximize capacity expansion. Through management reforms and process optimizations, TCL CSOT strengthened end-to-end collaboration, resulting in improved overall operations efficiency and cost reduction. Furthermore, sustained investments in AI and digitalization propelled continuous advancements in product performance, quality, and effectiveness, establishing a formidable competitive edge in management within the industry.

While the new‑ energy photovoltaic industry continues to face numerous uncertainties stemming from global demand and policy shifts, TZE streamlines its end‑ to‑ end business processes through a series of management reforms. This has enabled the gradual build‑ out of global operational capabilities and integrated solution offerings. Through AI‑ empowered operations and smart‑ manufacturing development, the Company further elevates product performance and quality. By retaining its industry‑ leading efficiency and cost advantages, the Company is underpinned to smoothly navigate the industry’s significant adjustments and evolve into a premier global provider of new‑ energy photovoltaic solutions.

In addition, the Company places great importance on developing its dual-carbon and ESG systems. With the goal of reaching peak carbon emissions by 2030, it has established the necessary organizational structure and launched targeted carbon-reduction initiatives covering its factories, products, and supply chains.

Cultural Leadership: Guided by our core values of "change, innovation, accountability, and excellence", the Company is being driven to achieve industry leadership

In 2020, the Company inaugurated its corporate culture, as laid out in its strategic document The Path to Global Leadership. The Company has adopted a core mission centered around "leading technology, harmonious coexistence", underpinned by the core values of "change, innovation, accountability, and excellence". This cultural transformation has empowered TCL employees to embrace change, drive business optimizations and upgrades through active exploration and innovation, and guided TCL in dedicating itself to delivering superior products and services to its valued customers through accountability and the pursuit of excellence.

Confronting an increasingly complex and ever-changing external business environment, TCL employees will remain steadfast in the spirit and culture of "The Path to Global Leadership". Standing at the forefront of the industry and undeterred by challenges, we will collectively drive the Company toward new milestones and realize our vision of global leadership.

III. Analysis of Core Businesses

Overview

The disclosure is consistent with the main businesses of the Company during the Reporting Period

☑ Yes □No

See the relevant contents in “I. Main Businesses of the Company during the Reporting Period”.

Year-on-year changes in key financial information

Unit: RMB

Significant changes to the profit structure or sources of the Company during the Reporting Period □Applicable ☑ Not applicable No significant changes to the profit structure or sources of the Company during the Reporting Period. Breakdown of operating revenue

Unit: RMB Operating division, product category, or region contributing over 10% of operating revenue or operating profit

☑ Applicable □Not applicable

Unit: RMB

IV. Analysis of Non-Core Businesses

☑ Applicable □Not applicable

Unit: RMB

V. Analysis of Assets and Liabilities

1. Significant Changes in Asset Composition

Unit: RMB

2. Major Assets Overseas

□Applicable ☑ Not applicable

3. Assets and Liabilities at Fair Value

☑ Applicable □Not applicable

Unit: RMB

Significant changes to the measurement attributes of the major assets in the Reporting Period

□Yes ☑ No

4. Restricted Asset Rights as of the Period-End

For details, please refer to “28. Assets with Restricted Ownership or Use Rights” under “V. Notes to Consolidated Financial Statements” in “Part VIII Financial Report.”

VI. Investments Made

1. Total Investment Amount

☑ Applicable □Not applicable

2. Major Equity Investments Made in the Reporting Period

☑ Applicable □Not applicable

Unit: RMB’000,000,000

Note: The industrial and commercial registration of the transfer of the 45% equity interest in Guangzhou China Star Optoelectronics Bandaoti Display Technology Co., Ltd. was completed on August 21, 2026. DAS Solar Co., Ltd. will be included in the Company’s scope of consolidation from Q3 2026

3. Major Non-Equity Investments Ongoing in the Reporting Period

On September 11, 2025, the Company convened the 14th meeting of the 8th Board of Directors, at which the Proposal on Investment in and Construction of the Generation 8.6 Printed OLED Production Line Project was reviewed and approved. To secure a strategic position for China in the new competitive landscape of the global display industry, drive the industry's frontier technology exploration and commercialization, and realize the Company's industrialization of high-generation printed OLED, the Company, together with TCL CSOT, the Guangzhou Municipal Government, and the Guangzhou Economic and Technological Development Zone Administration, signed a project cooperation agreement. The project entails the construction of an 8.6‑ generation printed OLED panel line with a planned capacity of approximately 22,500 sheets per month (substrate size: 2290mm × 2620mm).

Construction of the Generation 8.6 printed OLED production line officially commenced on October 21, 2025. As of the end of the Reporting Period, the main structure had been topped out, and the production line is expected to officially commence production in Q4 2027.

4. Financial Assets Investments

(1) Securities Investments

☑ Applicable □Not applicable

Unit: RMB'0,000

(2) Investments in Derivative Financial Instruments

☑ Applicable □Not applicable

1) Derivative investments for hedging purposes made during the Reporting Period

☑ Applicable □Not applicable

Unit: RMB'0,000

2) Derivative investments for speculative purposes during the Reporting Period

□Applicable ☑ Not applicable

There were no derivative investments for speculative purposes made by the Company during the Reporting Period.

5. Use of the capital raised

☑ Applicable □Not applicable

(1) General Information about the Use of Capital Raised

☑ Applicable □Not applicable

Unit: RMB'0,000

Use of the Capital Raised:

Upon the CSRC registration approval (CSRC Approval [2025] No. 2369), the Company issued corporate bonds not exceeding RMB 10 billion to professional investors in installments. During the Reporting Period, the net proceeds from the Sci-Tech Innovation Corporate Bonds (Digital Economy) Publicly Offered by TCL Technology Group Corporation to Professional Investors (Phase I) (Type II) were fully received on May 22, 2026. As of the disclosure date, all proceeds raised have been fully utilized, and the actual use of proceeds is consistent with the intended use as stated in the prospectus.

(2) Promised Use of Capital Raised

□Applicable ☑ Not applicable

Whether the Company has any excess capital raised

□Yes ☑ No

(3) Changes in projects funded by capital raised

□Applicable ☑ Not applicable

No such cases in the Reporting Period.

VII. Sale of Major Assets and Equity Investments

1. Sale of Major Assets

□Applicable ☑ Not applicable

The Company did not dispose of any major assets during the Reporting Period.

2. Sale of Major Equity Investments

□Applicable ☑ Not applicable

VIII. Principal Subsidiaries and Joint Stock Companies

☑ Applicable □Not applicable

Principal subsidiaries and joint stock companies with an over 10% effect on the Company's net profits

Unit: RMB'0,000

Acquisition and disposal of subsidiaries in the Reporting Period

☑ Applicable □Not applicable

Note: On April 1, 2026, Maxeon Solar Technologies, Ltd., a subsidiary of the Company’s subsidiary TZE, and its subsidiary Maxeon Solar Pte. Ltd. voluntarily filed a joint application with the High Court of Singapore for judicial management proceedings. Now, Maxeon Solar Technologies Ltd. and its subsidiary Maxeon Solar Pte Ltd. are under the administration of Deloitte Singapore SR&T Restructuring Services Pte. Ltd. (“Deloitte”) and are not included in the Company’s consolidated financial statements. Explanation of Principal Subsidiaries and Joint Stock Companies: None

IX. Structured Bodies Controlled by the Company

☑ Applicable □Not applicable

As of the end of the Reporting Period, the Group had included four structured entities within its scope of consolidation, comprising trust plans and securities firms’ asset management products controlled by the Group. Of these, three structured entities were added in the current year, corresponding to entrusted wealth‑ management products arranged by financial institutions on behalf of the Group as sole principal. For details, please refer to the section on entrusted wealth management. As the manager and an investor in the structured entity, the Group has relevant management power over the structured entity, is exposed to variable returns, and has the ability to use its power to influence those returns.

X. Risks and Responses

1. Risks from the Macro-Political and Economic Environment

Against a backdrop of increasingly divergent global growth, persistent geopolitical tensions, mounting trade protectionism, and accelerating regionalization, uncertainty in the global business environment remained elevated. Meanwhile, continued volatility in global exchange rates and financial markets heightened the risks facing the Company’s overseas operations. In response, the Company will closely monitor changes in macroeconomic policies, establish risk monitoring and early-warning mechanisms, identify exposures arising from tariffs, exchange-rate fluctuations, and other factors, and develop targeted contingency plans. Guided by its goal of globa leadership, the Company will remain focused on its core businesses, pursue technology-driven innovation, strengthen its competitiveness, and enhance commercial value and returns, thereby improving its resilience to macroeconomic volatility.

2. Risks from Industry Prosperity Fluctuations

Panel prices remained volatile in 2026, while the photovoltaic industry faced intense cut‑ throat competition.

Notwithstanding sustained industry adjustments, no material improvement was yet observed. The Company wil diligently monitor shifts in industry supply and demand and optimize capacity allocation. At the same time, it wil increase its investment in R&D to continuously raise the technological content of its products. This strategic approach will allow the Company to expand its scale and efficiency advantages, thereby building high competitive barriers and strengthening its market position.

3. Risks from Global Supply Chain Volatility

Geopolitical tensions and surging AI demand continued to place pressure on the stability of global supply chains. Rising prices for major raw materials also presented challenges to delivery reliability and pricing. Meanwhile, amid a challenging market environment and continued price compression, some small- and mediumsized suppliers have contracted or ceased operations, resulting in potential supply disruptions. To safeguard the resilience and security of its global supply chain, the Company will remain committed to its globalization strategy, deepen the development of local supply chains, and continue strengthening its ability to respond to supply-chain risks. It will also enhance supply stability through strategic partnerships, buffer inventories, and other measures, while establishing monitoring and early-warning mechanisms for upstream supply risks to enable their timely identification and effective mitigation.

4. Intellectual Property and Compliance Risks

As the Company continues to expand its business scale and technological footprint, patent disputes have become more frequent and intellectual property risks increasingly pronounced. To address this, the Company will accelerate substantial R&D investments, refining our core technologies and patent portfolio through a “selfdevelopment + ecosystem collaboration” model. The Company will continue to improve its intellectual property management and protection mechanisms, strengthen patent risk assessments, enhance its patent risk monitoring and early-warning systems, and comprehensively improve its ability to address intellectual property risks

In addition, robust compliance systems are becoming increasingly important to the Company’s overseas operations. The Company will strengthen its compliance framework by implementing a system designed to meet the export control regulations of all key global markets. These efforts include streamlining compliance procedures, implementing rigorous employee training programs, fostering compliance awareness and culture, and collaborating closely with local partners to proactively manage compliance risk.

XI. Formulation and Implementation of the Rules for Market Value Management and Valuation Enhancement Plan

Whether the Company has formulated the Rules for Market Value Management

☑ Yes □No

Whether the Company has disclosed the valuation enhancement plan

□Yes ☑ No

On December 27, 2024, the Proposal on Formulating the Rules for Market Value Management was deliberated on and adopted at the 7th Meeting of the 8th-term Board of Directors. To strengthen the Company's market value management, further standardize its market value management practices, effectively enhance the Company's investment value, increase investor returns, and protect the legitimate rights and interests of the Company, the investors and other stakeholders, the Company has formulated the Rules for Market Capitalization Management in accordance with the Company Law, the Securities Law, the Several Opinions of the State Council on Strengthening Regulation to Prevent Risk and Promoting the High-quality Development of the Capital Market, the Administrative Measures for the Information Disclosure by Listed Companies, the Guidelines for the Regulation of Listed Companies No. 10 – Market Value Management, and other related provisions.

The Company firmly upholds the principle of shareholder returns, taking measures to protect investor interests, especially those of minority shareholders. It upholds ethical operations, regulatory compliance, and a focused approach to core business, ensuring prudent management. By developing advanced capabilities, the Company continuously enhances operational efficiency and quality growth. Additionally, the Company prioritizes strong investor relations, enhancing transparency and communications to ensure investment value reflects its core strengths, while proactively strengthening investor confidence.

During the Reporting Period, the Company reviewed and approved the Shareholder Dividend Payout Plan for the Next Three Years (2026–2028), which stipulates that the profits distributed in cash each year shall be no less than 30% of the net profit attributable to shareholders of the parent company for that year. During the Reporting Period, the Company also introduced the Partner Stock Ownership Plan for management personnel. Shares held by management under the Plan are subject to a five-year lock-up period, with their release linked to the Company’s performance assessment. This arrangement further aligns the interests of management with those of the Company and all its shareholders.

XII. Implementation of the "Joint Improvement of Quality and Investment Return" Action Plan

Whether the Company has disclosed the "Joint Improvement of Quality and Investment Returns" Action Plan Announcement. ☑ Yes □No

To better implement the guidance on enhancing the quality and investment value of listed companies, the Company has developed the "Joint Improvement of Quality and Investment Returns" Action Plan, which is based on in-depth research on industry trends and careful consideration of our future business trajectory. In addition, the Company has disclosed the progress report on the "Joint Improvement of Quality and Investment Returns" Action Plan in combination with the implementation. For more details, please see the Notice on Promoting the Join Improvement ofQuality and Investment Returns Action Plan and the Progress Report on the Joint Improvement of

Quality and Investment Returns Action Plan disclosed on February 28, 2024, and May 8, 2024, respectively.

Focusing on its core businesses in displays, new energy photovoltaics, and silicon materials, the Company remains anchored in its goal of “Global Leadership” and committed to the operating philosophy of “Strategic Leadership, Innovation-Driven, Advanced Manufacturing, and Global Operations.” It will continue to consolidate its industry position and pursue sustainable, high-quality development. Motivated by confidence in the Company’s future development and a commitment to protecting the interests of all shareholders, bolstering investor confidence, and stabilizing and enhancing the Company’s investment value, the Proposal on Repurchase of a Portion of the Company’s Publicly Traded Shares in 2026 was approved at the 23rd meeting of the Eighth Board of Directors on June 1, 2026. The Company planned to repurchase a portion of its publicly issued shares through centralized bidding on the Shenzhen Stock Exchange trading system. The total amount of the repurchase was set at no less than RMB 1.10 billion (inclusive) and no more than RMB 1.20 billion (inclusive), with a price cap of RMB 6.51 per share (inclusive). The repurchased shares will be used for the Company’s employee stock ownership plan and/or equity incentive plan. If the shares are not used within 36 months after the completion o the repurchase, the unused portion will be canceled in accordance with relevant procedures.

In 2025, the Company achieved significant growth in net profit attributable to shareholders of the listed company, with net cash flow from operating activities showing steady improvement and various tasks progressing in an orderly manner. The Company remains committed to delivering shareholder value and adheres to a prudent dividend policy. Under its 2025 profit distribution plan, a cash dividend of RMB 0.9 per 10 shares (tax inclusive) will be distributed to all shareholders, enabling them to benefit from the Company’s value growth.

Part IV Corporate Governance, Environment and Social

Responsibility

I. Changes in Directors and Senior Management

☑ Applicable □Not applicable

II. Interim Dividend Plan and Conversion from Capital Reserves into Share Capital during the Reporting Period

□Applicable ☑ Not applicable

The Company does not propose to pay interim cash dividends, issue bonus shares or convert capital reserves into share capital for this interim period.

III. Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for Employees

☑ Applicable □Not applicable

1. Equity Incentives

□Applicable ☑ Not applicable

2. Implementation of Employee Stock Ownership Plan

☑ Applicable □Not applicable

All the valid employee stock ownership plans during the Reporting Period

Note 1: On June 1, 2026, the Company convened the 23rd meeting of the Eighth Board of Directors, and on June 22, 2026, it convened the Second Extraordinary General Meeting for 2026. At these meetings, the Proposal on Adjusting Matters Relating to the Company’s 2025 Employee Stock Ownership Plan and related proposals were reviewed and approved. To improve its long-term incentive and restraint mechanisms and provide differentiated, targeted incentives to employee groups with different roles and incentive objectives, the Company decided to restructure the 2025 Employee Stock Ownership Plan into two sub-plans: the 2025 Partner Stock Ownership Plan, applicable to key management personnel, and the 2025 Medium- and Long-Term Employee Stock Ownership Plan, applicable to middle management and outstanding key employees. Accordingly, the Company formulated the following documents: the 2025 Employee Stock Ownership Plan (Partner Stock Ownership Plan) ofTCL Technology Group Corporation (Revised Draft) and its summary, and the Administrative Measures for the 2025 Employee Stock Ownership Plan (Partner Stock Ownership Plan) ofTCL Technology Group Corporation; as well as the 2025 Employee Stock Ownership Plan (Medium- and Long-Term Employee Stock Ownership Plan) of TCL Technology Group Corporation (Revised Draft) and its summary, and the Administrative Measures for the 2025 Employee Stock Ownership Plan (Medium- and Long-Term Employee Stock Ownership Plan) of TCL Technology Group Corporation. The 2025 Medium- and Long-Term Employee Stock Ownership Plan will continue to use the dedicated securities account and trading qualifications already established for the 2025 Employee Stock Ownership Plan. The transfer/purchase of the underlying shares for the 2025 Partner Stock Ownership Plan has not yet been completed.

Note 2: The transfer/purchase of the underlying shares for the Plan has not yet been completed.

Note 3: During the Reporting Period, all shares held under the 2021-2023 Employee Stock Ownership Plan (Phase III) that satisfied the vesting conditions were vested in the holders. The corresponding shares repurchased by the Company in accordance with the relevant arrangements were recently sold in full

Shareholdings of Directors and Senior Management under the Employee Stock Ownership Plan during the Reporting Period

Changes of asset management institutions during the Reporting Period

□Applicable ☑ Not applicable

Changes of equity caused by the holder’s disposal of shares during the Reporting Period

□Applicable ☑ Not applicable

Exercise of shareholder rights during the Reporting Period

□Applicable ☑ Not applicable

During the Reporting Period, the Company’s ESOP participants exercised their shareholder rights to receive the profit distribution for 2025, but did not participate in voting at the general meeting or exercise other shareholder rights.

Other relevant information and explanations of the Employee Stock Ownership Plan during the Reporting Period.

□Applicable ☑ Not applicable

Changes in the members of the management committee for Employee Stock Ownership Plan

□Applicable ☑ Not applicable

Financial impact of the Employee Stock Ownership Plan on the Company during the Reporting Period and related accounting treatment

☑ Applicable □Not applicable

The financial, accounting treatment and taxation involved in the Company’s Employee Stock Ownership Plan (ESOP) shall be implemented according to relevant laws, regulations and normative documents such as financial systems, accounting standards, and taxation systems. Holders of the shareholding plan shall pay individual income tax arising from their participation in the plan according to law, and may choose to have the shareholding plan sell a corresponding amount of shares to cover individual income tax, with the remaining shares attributed to the individuals.

Termination of Employee Stock Ownership Plan during the Reporting Period

☑ Applicable □Not applicable

During the Reporting Period, all shares held under the 2021-2023 Employee Stock Ownership Plan (Phase I), the 2021-2023 Employee Stock Ownership Plan (Phase II), and the 2021-2023 Employee Stock Ownership Plan (Phase III) that satisfied the vesting conditions were vested in the holders. The corresponding shares repurchased by the Company as per the agreement have been fully disposed of. The aforementioned Employee Stock Ownership Plans were fully implemented and terminated ahead of schedule. Fo details, please refer to the Announcement on the Implementation Progress of the Employee Stock Ownership Plans disclosed by the Company through designated media on July 3, 2026.

Other instructions: none

3. Other Employee Incentives

□Applicable ☑ Not applicable

IV. Environmental Information Disclosure

Whether the listed company and its major subsidiaries are included in the list of enterprises required to disclose environmenta information in accordance with laws

☑ Yes □No

V. Social Responsibility

Semi-Annual Summary of Work on Consolidating and Expanding Achievements in Poverty Alleviation & Promoting Rural Revitalization

Rural education provides strategic support for rural revitalization. The TCL Public Welfare Foundation launched the “TCL PV Low-Carbon Campus” project, providing green energy support to rural education by donating rooftop photovoltaic power generation systems along with the income they generate over their 25-year life cycle. To further advance “Project Hope in the New Era” and extend the reach of education assistance, the Foundation partnered with the China Youth Development Foundation to implement the “TCL Project Hope PVenabled Low-Carbon Campus Program,” thereby continuously empowering the sustainable development of rura education. To date, 35 “TCL PV-enabled Low-Carbon Campuses” have been donated and constructed across China, with a total installed capacity of 2,054.65 kW. Over their 25-year life cycle, these systems are expected to generate approximately 61.91 million kWh of electricity, equivalent to planting approximately 2.76 million trees. During the Reporting Period, the project team conducted extensive field research in Chongqing, Henan, Hubei, and other regions, carrying out targeted assessments of local schools and students to lay a solid foundation for the high-quality expansion of the low-carbon campus initiative.

To advance education, the "TCL University Donation Program"—launched in 2022—has provided support to eight universities, including South China University of Technology and Xidian University. To date, the program has funded 54 TCL Young Scholars and 66 Science and Technology Innovation Fund projects. During the Reporting Period, an additional 11 young scholars and 6 innovation fund projects received support. In addition, TCL invests RMB 2 million annually in the Distinguished Speaker Series under the "SUSTech–TCL Innovation and Entrepreneurship Lecture Program." Leading experts and scholars, including Mao Daqing and Ma Guangyuan, were recently invited to deliver eight high-quality thematic lectures, continuing to inspire innovation among young people.

During the Reporting Period, the TCL Public Welfare Foundation stayed firmly committed to strengthening rural infrastructure, fostering local industries, and enhancing early childhood care and development. It disbursed RMB 3.95 million in dedicated funding and adopted a range of measures to support rural revitalization and integrated urban-rural development. At the implementation level, the Foundation directed funding to key regions and priority projects, providing RMB 2 million to the Jiexi County Charity Federation, RMB 1 million to the China Development Research Foundation’s “Sunshine Starting Line Program” in Haidong, Qinghai, RMB 500,000 to a rural revitalization project in Yugan County, Jiangxi, and RMB 250,000 to projects in Huizhou. It also invested RMB 200,000 through the “TCL Public Welfare Ecological Forest” project to support plateau ecological restoration in the Sanjiangyuan region. The Foundation also continued to broaden the scope of its philanthropic activities, incubating and implementing 20 outstanding public welfare projects through the “TCL

Rose Initiative - Public Welfare Creativity Competition.” Six of these projects were dedicated to rura revitalization, focusing on children’s education, sports development, and environmental protection, while ensuring that the benefits of these philanthropic initiatives reached a wider range of communities.

Part V Significant Events

I. Commitments fulfilled during the Reporting Period and outstanding commitments as of the end of the Reporting Period by the Company’s actual controller, shareholders, related parties, acquirers, the Company itself, and other relevant commitment parties

□Applicable ☑ Not applicable

During the Reporting Period, there were no commitments that were made by the Company, its actual controller, shareholders, related parties, acquirers, and other relevant parties to be fulfilled within the Reporting Period or remained overdue and unfulfilled as at the end of the Reporting Period.

II. Occupation of the Company’s funds by the Controlling Shareholder or any of Its Related Parties for Non-Operational Purposes

□Applicable ☑ Not applicable

No such cases in the Reporting Period.

III. Irregularities in the Provision of Guarantees

□Applicable ☑ Not applicable

No such cases in the Reporting Period.

IV. Engagement and Disengagement of Independent Auditor

Whether the interim financial report has been audited

□Yes ☑ No

The Interim Report has not been audited.

V. Explanation of the Board of Directors on the “Non-Standard Auditor’s Report” for the Reporting Period

□Applicable ☑ Not applicable

VI. Explanation of the Board of Directors on the “Non-Standard Auditor’s Report” for the Previous Year

□Applicable ☑ Not applicable

VII. Insolvency and Reorganization

□Applicable ☑ Not applicable

No such cases in the Reporting Period.

VIII. Lawsuits

Significant lawsuits and arbitrations □Applicable ☑ Not applicable No such cases in the Reporting Period.

IX. Punishments and Rectifications

□Applicable ☑ Not applicable

No significant punishments or rectifications in the Reporting Period.

X. Credit Quality of the Company as well as its Controlling Shareholder and Actual Controller

□Applicable ☑ Not applicable

XI. Major Related-Party Transactions

1. Recurring Related-Party Transactions

☑ Applicable □Not applicable

For the Company's recurring related-party transactions during the Reporting Period, please refer to the related announcements disclosed on www.cninfo.com.cn.

2. Related-Party Transactions Regarding Purchase or Disposal of Assets or Equity Interests

□Applicable ☑ Not applicable

During the Reporting Period, there were certain related-party transactions regarding purchase or disposal of assets or equity investments. Please refer to the index in Item 7 of this Section XI Major Related-Party Transactions.

3. Related-Party Transactions Regarding Joint Investments in Third Parties

□Applicable ☑ Not applicable

During the Reporting Period, there were no major related-party transactions regarding joint investments in third parties.

4. Amounts Due to and from Related Parties

☑ Applicable □Not applicable

Indicate whether there were any amounts due to and from related parties for non-operating purposes

□Yes ☑ No

During the Reporting Period, the Company had no amounts due to and from related parties for non-operating purposes.

5. Transactions with Related-party Finance Companies

□Applicable ☑ Not applicable

The Company had no deposits, loans, credit granting or other financial business with the related-party finance companies.

6. Transactions Between the Financial Company Controlled by the Company and Related Parties

☑ Applicable □Not applicable

Deposits

Loans

Credit or other financial business

Note: At the 2024 Annual General Meeting, the Company reviewed and approved the Proposal on Continuing to Provide Financial Services to Related Parties and Renewing the Financial Services Agreement for Related-Party Transactions. The agreement shall remain valid from the date of its approval at the 2024 Annual General Meeting until the date on which a simila proposal is approved at the Company’s next general meeting.

7. Other Major Related-Party Transactions

☑ Applicable □Not applicable

Related inquiries on the website for interim disclosure of major related-party transactions

XII. Major Contracts and Execution thereof

1. Entrustment, Contracting, and Leases

(1) Entrustment

□Applicable ☑ Not applicable

During the Reporting Period, the Company had no entrusted projects that generated profits or losses representing 10% or more of the net profit attributable to shareholders of the parent company for the Reporting Period.

(2) Contracting

□Applicable ☑ Not applicable

During the Reporting Period, the Company had no contracting projects that generated profits or losses representing 10% or more of the net profit attributable to shareholders of the parent company for the Reporting Period.

(3) Leases

□Applicable ☑ Not applicable

During the Reporting Period, the Company had no lease projects that generated profits or losses representing 10% or more of the net profit attributable to shareholders of the parent company for the Reporting Period.

2. Major Guarantees

☑ Applicable □Not applicable

Note: (1) The guarantee period in the above table is the remaining guarantee period of the principal debt. The actual guarantee is valid for two or three years from the expiration date of the principal debt, which is subject to the single contract.

(2) In the table above, Shenzhen China Star Optoelectronics Bandaoti Display Technology Co., Ltd., a subsidiary controlled by the Company, was jointly guaranteed by the Company and its subsidiary, TCL China Star Optoelectronics Technology Co., Ltd., in an external syndicated loan, in which the Company provided a certain percentage of guarantee, while TCL China Sta Optoelectronics Technology Co., Ltd. provided full guarantee. As at the end of the Reporting Period, the debt portion under joint guarantee amounted to RMB 3,541.33 million. The joint guarantee has been filled in the "Company's Guarantee for Subsidiaries" and "Guarantee Among Subsidiaries", respectively.

(3) In the table above, the Company’s guarantee balance in respect of TCL CSOT includes the relevant amounts in relation to liquidity support provided by the Company to China Development Bank New Policy Financial Instruments Co., Ltd. and other entities.

(4) On July 12, 2026, the Company reallocated the guarantee limits provided for its controlled subsidiaries based on thei business needs. Details are as follows: the guarantee limit of RMB 600 million provided to LumeTech Energy S.J.S.C. and the guarantee limit of RMB 900 million provided to LumeTech PTE Ltd, totaling RMB 1.5 billion, were reallocated to their paren company, TCL Zhonghuan Renewable Energy Technology Co., Ltd. Following the reallocation, the Company’s guarantee limit fo TZE amounts to RMB 5.9 billion, with the scope of the guarantee covering guarantees provided for its public bond issuance, financing, and other matters.

The Company has performed internal review procedures for the above-mentioned guarantee reallocation. It’s found that they did not violate the legal provisions on listed companies, and complied with the relevant requirements of the Announcement on Providing Guaranteesfor Subsidiaries in 2026 reviewed and approved at the 2025 Annual General Meeting held on April 24, 2026.

Explanation of guarantees provided in composite forms: Not applicable

3. Entrusted Wealth Management

☑ Applicable □Not applicable

Unit: RMB'0,000

Details of the Company’s role as a sole settlor in entrusting financial institutions for asset management, or its investments in high risk entrusted wealth management with low security and poor liquidity

☑ Applicable □Not applicable

Unit: RMB'0,000

4. Other Major Contracts

□Applicable ☑ Not applicable

The Company did not have any other major contracts that should be disclosed during the Reporting Period.

XIII. Record of Communications with the Investment Community, such as Research, Inquiries, and Interviews during the Reporting Period

☑ Applicable □Not applicable

XIV. Other Significant Events

☑ Applicable □Not applicable

1. Acquisition of a 45.00% equity interest in Guangzhou China Star Optoelectronics Bandaoti Display Technology Co., Ltd. through share issuance and cash payment

On March 31, 2026, the Company disclosed the Report (Draft) on Asset Purchase via Share Issuance and Cash Payment and Raising ofSupporting Funds ofTCL Technology Group Corporation. The Company proposes to acquire, through share issuance and cash payment, the 45% equity interest in Guangzhou CSOT Bandaoti held by Guangdong Hengjian Investment Holding Co., Ltd., Guangzhou Chengfa Xingguang Investment Partnership (Limited Partnership) and Science City (Guangzhou) Investment Group Co., Ltd., and to raise supporting funds concurrently.

On April 24, 2026, the Company convened the 2025 Annual General Meeting, at which the aforementioned matters were reviewed and approved.

On April 29, 2026, the Company received the Notice on Acceptance of the Application Documents of TCL Technology Group Corporationfor Asset Purchase via Share Issuance and Raising ofSupporting Funds issued by the Shenzhen Stock Exchange.

On June 1, 2026, the Board reviewed and approved the Proposal on Canceling the Raising of Supporting Funds for the Asset Purchase via Share Issuance. Taking into account the interests of all shareholders and the sustained positive momentum in the Company’s operations and development, the Company decided to voluntarily cancel the arrangement for raising supporting funds for the asset purchase via share issuance. The cash consideration will instead be paid from the Company’s own or self-raised funds.

On July 24, 2026, the Merger and Acquisition Review Committee of the Shenzhen Stock Exchange approved the Company’s acquisition of the 45% equity interest in Guangzhou CSOT Bandaoti through share issuance and cash payment.

On August 19, 2026, the Company received the Reply on Approving the Registration ofTCL Technology Group Corporation’s Asset Purchase via Share Issuance (CSRC Permit [2026] No. 2116) issued by the China Securities Regulatory Commission.

On June 22, 2026, the aforementioned matters were reviewed and approved at the Second Extraordinary General Meeting of 2026 The related work is progressing in an orderly manner.

On August 21, 2026, the industrial and commercial registration for the transfer of the 45% equity interest in Guangzhou China Star Optoelectronics Bandaoti Display Technology Co., Ltd. was completed. The newly issued shares will be listed on August 31, 2026.

2. Implementation of the Partner Stock Ownership Plan

On June 1, 2026, the Board reviewed and approved the Proposal on Adjustments to Matters Relating to the Company’s 2025 Employee Stock Ownership Plan, the Proposal on the 2026 Partner Stock Ownership Plan of TCL Technology Group Corporation (Draft) and Its Summary, and other related proposals. To strengthen the alignment of key management personnel’s interests with the Company’s long-term development and effectively promote shared benefits and responsibilities, the Company implemented the Partner Stock Ownership Plan for directors, senior management, and other management personnel at specified levels. The vesting arrangements under the Partner Stock Ownership Plan were changed from “a one-year lock-up period followed by vesting/unlocking over two years” to “a five-year lock-up period followed by a one-time release upon expiry.” The Partner Stock Ownership Plan will also act in concert with the Company's largest shareholder.

XV. Significant Events of the Company’s Subsidiaries

□Applicable ☑ Not applicable

Part VI Changes in Shares and Information about Shareholders

I. Changes in Shares

1. Changes in shares

Unit: share

Reasons for changes in shares

☑ Applicable □Not applicable

1. During the Reporting Period, the 1,035,489,574 restricted shares issued by the Company in 2025 in connection with its asset purchase via share issuance and cash payment and raising of supporting funds were released from trading restrictions and listed for trading on February 24, 2026. The number of non-restricted shares increased accordingly.

2. During the Reporting Period, locked-up shares held by senior management increased by 3,499,685 restricted shares, while the number of non-restricted shares decreased accordingly.

Approval of changes in shares

□Applicable ☑ Not applicable

Transfer of share ownership

☑ Applicable □Not applicable

Note: On July 10, 2026, the Company disclosed the Announcement on the Implementation Progress of the Employee Stock Ownership Plans and Completion of the Non-Trading Transfer of Certain Shares Vested in the Holders. The Company completed the second non-trading transfer under the 2021–2023 Employee Stock Ownership Plan (Phase III), involving 26,973,002 shares in total, representing 0.13% of the Company’s total share capital. Of these, 1,985,472 shares were transferred to the Company’s directors and senior management through non-trading transfer, and 24,987,530 shares were transferred to other holders through non-trading transfer. The Company also completed the first non-trading transfer under the 2024 Employee Stock Ownership Plan, involving 45,319,634 shares in total, representing 0.22% of the Company’s total share capital. Of these, 2,476,093 shares were transferred to the Company’s directors and senior management through non-trading transfer, and 42,843,541 shares were transferred to other holders through non-trading transfer.

Progress on any share repurchase

☑ Applicable □Not applicable

Note: On July 3, 2026, the Company disclosed the Progress Announcement on the Repurchase ofPublicly Traded Shares in 2026. As of June 30, 2026, the Company had repurchased 82,167,590 shares through centralized bidding via its dedicated securities account for share repurchases, representing approximately 0.40% of its total share capital. The highest and lowest transaction prices were RMB 4.93 and RMB 4.82 per share, respectively, and the total transaction amount was approximately RMB 400 million, exclusive of transaction costs.

On July 18, 2026, the Company published the Announcement on the Proportion of Publicly Traded Shares Repurchased in 2026 Reaching 1% and the Completion of the Share Repurchase. From June 23 to July 17, 2026, the Company repurchased a total of 239,384,027 shares through centralized bidding via its dedicated securities account for share repurchases, representing approximately 1.15% of its total share capital. The highest and lowest transaction prices were RMB 5.49 and RMB 4.82 per share, respectively, and the total transaction amount was approximately RMB 1.20 billion, exclusive of transaction costs. The actual funds used for the share repurchase reached the maximum amount specified in the repurchase plan, and the implementation of the plan was therefore completed.

Progress on reducing the repurchased shares by means of centralized bidding

□Applicable ☑ Not applicable

Effects of changes in shares on the basic earnings per share, diluted earnings per share, net asset per share attributable to the Company's ordinary shareholders and other financial indicators of the prior year and the prior accounting period, respectively

□Applicable ☑ Not applicable

The Company’s total share capital did not change during the Reporting Period.

Other information that the Company considers necessary or is required by the securities regulatory authorities to be disclosed □Applicable ☑ Not applicable

2. Changes in Restricted Shares

☑ Applicable □Not applicable

Unit: share

II. Issuance and Listing of Securities

☑ Applicable □Not applicable

Description of securities issuances during the Reporting Period

TCL Technology Group Corporation’s 2026 Public Offering of Sci-Tech Innovation Corporate Bonds (Digital Economy) to Professional Investors (Phase I) (Type 2), with the securities code “524812.SZ” and abbreviated securities name “26TCLK1,” had a total issue size of RMB 2 billion, a coupon rate of 1.95%, and a term of three years.

III. Total Number of Shareholders and Their Shareholdings

Unit: share

Participation of shareholders holding more than 5%, the top 10 shareholders, and the top 10 non-restricted shareholders in the lending of shares under the refinancing business

□Applicable ☑ Not applicable

Change in the top 10 shareholders and the top 10 non-restricted shareholders due to securities lending/returning under refinancing as compared to the previous period

□Applicable ☑ Not applicable

Indicate whether any of the top 10 ordinary shareholders or the top 10 non-restricted ordinary shareholders of the Company conducted any promissory repurchase transactions during the Reporting Period

□Yes ☑ No

No such cases in the Reporting Period.

IV. Change in Shareholdings of Directors and Senior Management

☑ Applicable □Not applicable

Note: The increase in the number of shares held by the Company’s directors and senior management during the Reporting Period resulted from the non-trading transfer to their securities accounts of shares corresponding to vested interests under the 2021–2023 Employee Stock Ownership Plan (Phase III) and the 2024 Employee Stock Ownership Plan. For details, please refer to the Announcement on the Implementation Progress of the Employee Stock Ownership Plans and Completion of the Non-Trading Transfer ofCertain Shares Vested in the Holders, published by the Company on designated media on July 10, 2026

V. Change of the Controlling Shareholder or the Actual Controller

Change of the controlling shareholder in the Reporting Period

□Applicable ☑ Not applicable

Change of the actual controller in the Reporting Period

□Applicable ☑ Not applicable

VI Preferred Shares

□Applicable ☑ Not applicable

During the Reporting Period, the Company did not have preferred shares.

Part VII Bonds

☑ Applicable □Not applicable

I. Enterprise Bonds

□Applicable ☑ Not applicable

No enterprise bonds in the Reporting Period.

II. Corporate Bonds

☑ Applicable □Not applicable

1. General Information on Corporate Bonds

Unit: RMB'0,000

Note 1: The Sci-Tech Innovation Corporate Bonds (Digital Economy) Publicly Offered by TCL Technology Group Corporation to Professional Investors in 2024 (Phase III) (Type 1) have a term of 5 years and will expire on July 8, 2029. The bonds include the issuer's redemption option, the option to adjust the coupon rate, and the investor's put option at the end of the third year. If the issuer's call option or investors' put option is exercised, the maturity date of the exercised bonds shall be July 8, 2027 Note 2: The Sci-Tech Innovation Corporate Bonds (Digital Economy) Publicly Offered by TCL Technology Group Corporation to Professional Investors in 2024 (Phase II) have a term of 5 years and will expire on April 11, 2029. The bonds include the issuer's redemption option, the option to adjust the coupon rate, and the investor's put option at the end of the third year. If the issuer's cal option or investors' put option is exercised, the maturity date of the exercised bonds shall be April 11, 2027.

Overdue bonds

□Applicable ☑ Not applicable

2. Triggering and implementation of issuer or investor option clauses and investor protection clauses

□Applicable ☑ Not applicable

3. Adjustments of credit rating results during the Reporting Period

□Applicable ☑ Not applicable

4. The implementation and changes of guarantees, debt repayment plans, and other safeguard measures regarding debt repayment during the Reporting Period, and their impact on the equity of bond investors

□Applicable ☑ Not applicable

III. Debt Financing Instruments of Non-Financial Enterprises

☑ Applicable □Not applicable

1. General information on debt financing instruments of non-financial enterprises

Unit: RMB'0,000

Overdue bonds

□Applicable ☑ Not applicable

2. Triggering and implementation of issuer or investor option clauses and investor protection clauses □Applicable ☑ Not applicable

3. Adjustments of credit rating results during the Reporting Period

□Applicable ☑ Not applicable

4. The implementation and changes of guarantees, debt repayment plans, and other safeguard measures regarding debt repayment during the Reporting Period, and their impact on the equity of bond investors

□Applicable ☑ Not applicable

IV. Convertible Corporate Bonds

□Applicable ☑ Not applicable

During the Reporting Period, the Company did not have convertible corporate bonds.

V. Consolidated loss of the Reporting Period Exceeding 10% of Net Assets of the last year-end

□Applicable ☑ Not applicable

VI. Key Accounting Data and Financial Indicators of the Company for the Past Two Years as at the End of the Reporting Period

Part VIII Financial Report

(For the period from January 1, 2026 to June 30, 2026)

I. Auditor’s Report

Whether the 2026 interim report has been audited or not?

□ Yes √ No

The Company’s 2026 interim financial report has not yet been audited.

II. Financial Statements

The unit of the notes to the financial report is: RMB’000

TCL Technology Group Corporation Consolidated Balance Sheet (RMB’000)

The attached notes to the financial statements form an integral part of the financial statements.

TCL Technology Group Corporation Consolidated Income Statement (RMB’000)

The attached notes to the financial statements form an integral part of the financial statements.

The attached notes to the financial statements form an integral part of the financial statements.

TCL Technology Group Corporation Consolidated Statement of Changes in Shareholders’ Equity (RMB’000) January - June 2026 Equity attributable to shareholders of the parent company

Person-in-charge of

Legal Person-in-charge of

representative: Li Dongsheng financial affairs:

the financial

Li Jian department:

Jing Chunmei

The attached notes to the financial statements form an integral part of the financial statements.

TCL Technology Group Corporation Consolidated Statement of Changes in Shareholders’ Equity (RMB’000) January - June 2025 Equity attributable to shareholders of the parent company

Legal

representative:

Person-in-charge of

Li Dongsheng

financial affairs:

Person-in-charge of

the financial

department:

Jing Chunmei

The attached notes to the financial statements form an integral part of the financial statements.

TCL Technology Group Corporation Balance Sheet of the Company (RMB’000)

The attached notes to the financial statements form an integral part of the financial statements.

TCL Technology Group Corporation Income Statement of the Company (RMB’000)

Person-in-

charge

Person-in-

Legal

of financial

charge of

the financial

representative:

Li Dongsheng

affairs:

Li Jian

department:

Jing Chunmei

The attached notes to the financial statements form an integral part of the financial statements.

TCL Technology Group Corporation Cash Flow Statement of the Company (RMB’000)

Person-in-

charge

Person-in-

Legal

of financial

charge of

the financial

representative:

Li Dongsheng

affairs:

Li Jian

department:

The attached notes to the financial statements form an integral part of the financial statements.

TCL Technology Group Corporation Statement of Changes in Shareholder Equity of the Company (RMB’000)

Person-in-charge of

Legal representative:

Li Dongsheng financial affairs:

Li Jian department:

Jing Chunmei

The attached notes to the financial statements form an integral part of the financial statements.

TCL Technology Group Corporation Statement of Changes in Shareholder Equity of the Company (Continued) (RMB’000)

Person-in-charge of

Person-in-charge of

Legal representative:

Li Dongsheng financial affairs:

Li Jian department:

Jing Chunmei

The attached notes to the financial statements form an integral part of the financial statements.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

Corporate Information

TCL Technology Group Corporation (hereinafter referred to as "the Company") is a limited liability company established in Huizhou on July 17, 1997. It was changed to a limited liability company as a whole in 2002 and was listed on the Shenzhen Stock Exchange in January 2004. Through years of new share placements, private placements, capital conversion, share option exercises, and share repurchases and cancellations, the registered capital and share capital of the Company were RMB 20,800,862,447 as of June 30, 2026.

The main business structure of the Company and its subsidiaries consists of display, new energy photovoltaics and other silicon materials, industrial finance, and other businesses. The relevant information of the Company's subsidiaries is detailed in Note VIII.

The registered address of the Company is: TCL TECH. Building, 17 Huifeng Third Road, Zhongkai Hi-Tech Development District, Huizhou City, Guangdong Province.

Approval and issue: These financial statements were authorized for issue by the Company's Board of Directors on August 27, 2026.

II Basis for the Preparation of Financial Statements

1 Basis for the preparation

The Company prepares its financial statements on a going concern basis. The recognition and measurement of items are based on actual transactions and events, in accordance with the Accounting Standards for Business Enterprises and their application guidelines and interpretations. In addition, the Company discloses relevant financial information in compliance with the Compilation Rules for Information Disclosure by Companies Ofering Securities to the Public No. 15 — General Provisions on Financial Reports (2023 Revision) issued by the China Securities Regulatory Commission (CSRC).

2 Going concern basis

The Company has assessed its ability to continue as a going concern for the 12 months from the end of the Reporting Period and has not identified any matters that would affect its ability to continue as a going concern. Therefore, it is reasonable for the Company to prepare the financial statements on a going concern basis.

III Significant accounting policies and accounting estimates

The following significant accounting policies and accounting estimates of the Company are formulated in accordance with the Accounting Standards for Business Enterprises. The business not mentioned shall be implemented in accordance with the relevant accounting policies in the Accounting Standards for Business Enterprises.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

Significant accounting policies and accounting estimates (Continued)

1 Statement of compliance with Accounting Standards for Business Enterprises

The financial statements prepared by the Company comply with the Accounting Standards for Business Enterprises, and present truly and completely the financial position, operating results, changes in owners' equity, and cash flows of the Company for the Reporting Period.

2 Accounting period

The Company's accounting year is from January 1 to December 31 of the Gregorian calendar.

3 Operations cycle

The Company's normal operating cycle is one year.

4 Functional currency for bookkeeping

The functional currency of the Company is Renminbi. The functional currency of its overseas subsidiaries is the currency of the primary economic environment in which they operate. Unless otherwise stated, the amounts in these financial statements are presented in thousands of Renminbi (RMB'000).

5 Method and selection basis for determining importance criteria

Item

The recovery, reversal, and actual write-off of bad debt provisions for important receivables with bad-debt allowance is accrued on an individual basis

Important construction in progress

Important non-wholly-owned subsidiaries

Important joint ventures or associates

Important prepayments, contract liabilities, accounts payable, and other payables are aged for more than 1 year

Important capitalized research and development items

Importance criteria

The amount of an individual item is greater than RMB 50 million.

The ending carrying amount of an individual item exceeds RMB 10 billion.

The total assets of non-wholly-owned subsidiaries exceeds 10% of that of the Group, or the total revenue of non-wholly-owned subsidiaries exceeds 10% of that of the Group.

The carrying amount of long-term equity investments in a single investee exceeds 5% of the total assets of the Group.

The amount of an individual item exceeds 0.5% of the total assets of the Group.

The cumulative expenditure of an individual item exceeds 0.5% of the total assets of the Group.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

6 Accounting treatments for business combinations involving enterprises under and not under common control

(1) Business combinations involving enterprises under common control

Assets and liabilities acquired by the Company in a business combination are measured at their carrying amounts in the consolidated financial statements of the ultimate controlling party at the combination date. If the accounting policies and accounting periods adopted by the combinee differ from those of the Company prior to the business combination, adjustments are made to the carrying amounts of the combinee's assets and liabilities based on the principle of materiality to align with the Company's accounting policies and accounting periods. In a business combination, if there is a difference between the carrying amount of the net assets acquired and the carrying amount of the consideration paid, the capital reserves (specifically capital premium or share premium) are adjusted first. If the balance of the capital reserves are insufficient to absorb the difference, any excess is adjusted against surplus reserve and undistributed profits sequentially.

For the accounting treatment of business combinations under common control achieved through step-by-step transactions, please refer to Note III. 7(5).

(2) Business combination not under common control

The identifiable assets and liabilities of the acquiree acquired in a business combination are measured at fair value at the acquisition date. If the accounting policies or accounting periods adopted by the acquiree differ from those of the Company, adjustments are made to the carrying amounts of the acquiree's assets and liabilities based on the principle of materiality to align with the Company's accounting policies and accounting periods. At the acquisition date, any excess of the cost of the business combination over the net fair value of the acquiree's identifiable assets and liabilities acquired in the combination is recognized as goodwill. If the cost of the combination is less than the net fair value of the acquiree's identifiable assets and liabilities acquired, a reassessment is first conducted on the cost of the combination and the fair values of the acquiree's identifiable assets and liabilities acquired. If, after the reassessment, the cost of the combination remains less than the fair value of the acquiree's identifiable assets and liabilities acquired, the difference is recognized immediately in profit or loss for the current period.

For the accounting treatment of business combinations not under common control achieved through step-by-step transactions, please refer to Note III. 7(5).

(3) Treatment of Transaction Costs in Business Combinations

Intermediary fees for audits, legal services, appraisal and consulting services, and other related administrative expenses incurred for the purpose of a business combination are recognized in profit or loss in the period in which they are incurred. Transaction costs for the issue of equity or debt securities as combination consideration are included in the initial recognition amount of the equity or debt securities.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

7 Methods for judging control and preparing consolidated financial statements

(1) Criteria for determining control

Control means that the Company has the power over the investee, enjoys variable returns through participation in the relevant activities of the investee, and has the ability to use its power over the investee to influence the amount of its returns. The definition of control comprises three essential elements: (1) the investor has the power over the investee; (2) the investor has rights to variable returns from its involvement with the investee; and (3) the investor has the ability to use its power over the investee to influence the amount of the investor's returns. When the three elements described above are met with respect to the Company's investment in an investee, the investee is considered to be controlled by the Company.

The scope of consolidation is determined on the basis of control. It includes not only subsidiaries determined by voting rights (or similar rights) alone or in combination with other arrangements, but also structured entities established based on one or more contractual arrangements.

A subsidiary is an entity (including an enterprise, a separable portion of an investee, and a structured entity controlled by the Company) that is controlled by the Company. A structured entity is an entity that is designed so that voting rights or similar rights are not the determining factor in deciding who controls the entity (note: sometimes referred to as a special purpose entity).

(2) Methods for preparing consolidated financial statements

The Company prepares the consolidated financial statements based on the financial statements of itself and its subsidiaries and other relevant information.

The Company prepares the consolidated financial statements in a manner that the whole Group will be treated as an accounting entity to reflect the financial position, operating results, and cash flow of the Group as a whole under unified accounting policies and accounting periods, in accordance with the recognition, measurement, and presentation requirements of relevant accounting standards for business enterprises.

① Combine the assets, liabilities, equity, income, expenses, and cash flows of the parent company with those of its subsidiaries.

② Eliminate the carrying amount of the parent company's long-term equity investments in subsidiaries against the parent company's portion of equity of each subsidiary.

③ Eliminate the effects of intragroup transactions between the parent company and its subsidiaries, as well as among subsidiaries. If an intragroup transaction indicates an impairment loss on the related assets, such loss is recognized in full.

④ Adjust special transactions from the perspective of the Group as a whole.

(3) Treatment of Changes in Subsidiaries During the Reporting Period

① Addition of Subsidiaries or Businesses

A. Subsidiaries or businesses acquired through business combinations involving enterprises under common control

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

7 Methods for judging control and preparing consolidated financial statements (Continued)

(3) Treatment of Changes in Subsidiaries During the Reporting Period (Continued)

(a) In the preparation of the consolidated balance sheet, the opening balances and the relevant items in the comparative financial statements are adjusted, as if the reporting entity after the combination had existed since the time point when the ultimate controlling party obtained control.

(b) In the preparation of the consolidated income statement, the income, expenses, and profits of the subsidiary or business from the beginning of the period in which the combination occurred to the end of the reporting period are included in the consolidated income statement. The related items of the comparative financial statements are adjusted, as if the reporting entity after the combination had been in existence since the date when the ultimate controlling party obtained control.

(c) In the preparation of the consolidated cash flow statement, cash flows of the subsidiary or business from the beginning of the period of combination to the end of the Reporting Period are included in the consolidated cash flow statement, and the relevant items of the comparative statements are adjusted, as if the reporting entity after the combination had been in existence since the date when the ultimate controlling party obtained control.

B. Subsidiaries or business acquired through business combinations not under common control

(a) In the preparation of the consolidated balance sheet, no adjustment is made to the opening balances of the consolidated balance sheet.

(b) In the preparation of the consolidated income statement, the income, expenses, and profits of the subsidiary or business from the acquisition date to the end of the Reporting Period are included in the consolidated income statement.

(c) In the preparation of the consolidated cash flow statement, cash flows of the subsidiary from the acquisition date to the end of the Reporting Period are included.

② Disposal of subsidiaries or business

A. In the preparation of the consolidated balance sheet, no adjustment is made to the opening balances of the consolidated balance sheet.

B. In the preparation of the consolidated income statement, the income, expenses, and profits of the subsidiary or business from the beginning of the period to the date of disposal are included in the consolidated income statement.

C. In the preparation of the consolidated cash flow statement, cash flows of the subsidiary or business from the beginning of the period to the date of disposal are included in the consolidated cash flow statement.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

7 Methods for judging control and preparing consolidated financial statements (Continued)

(4) Special Considerations in Consolidation Elimination

① If a subsidiary holds long-term equity investments in the Company, such investments are treated as treasury shares of the Company and listed as a deduction from equity under the line item "Less: Treasury shares" in the consolidated balance sheet.

For long-term equity investments held among subsidiaries, the investments are eliminated against the corresponding share of the subsidiary's equity in the same manner as the elimination of the Company's investments in its subsidiaries.

② The items "Specific reserves" and "General risk reserves" are neither paid-in capital (or share capital) and capital reserves, nor to retained earnings and undistributed profits. After the elimination of long-term equity investments against the equity of subsidiaries, these reserves are reinstated to the extent of the share attributable to the owners of the parent company.

③ If the elimination of unrealized profits or losses from intragroup sales results in temporary differences between the carrying amounts of assets and liabilities in the consolidated balance sheet and their tax bases in the respective tax entities, deferred income tax assets or deferred tax liabilities are recognized in the consolidated balance sheet with a corresponding adjustment made to income tax expense in the consolidated income statement, except for deferred tax arising from transactions or events recognized directly in equity or from business combinations.

④ Unrealized intragroup gains or losses arising from the sale of assets by the Company to its subsidiaries are eliminated in full against "Net profit attributable to owners of the parent company". Unrealized intragroup transaction gains or losses arising from the sale of assets by a subsidiary to the Company are allocated and eliminated between "Net profit attributable to owners of the parent company" and "Net profit attributable to non-controlling interests" in proportion to the Company's interest in such subsidiary. Unrealized intragroup transaction gains or losses arising from the sale of assets between subsidiaries are allocated and eliminated between "Net profit attributable to owners of the parent company" and "Net profit attributable to non-controlling interests" in proportion to the Company's interest in the selling subsidiary.

⑤ If the current losses attributable to the non-controlling shareholders of a subsidiary exceed their interest in the equity of the subsidiary, the excess shall still be charged to the noncontrolling interests.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

7 Methods for judging control and preparing consolidated financial statements (Continued)

(5) Accounting Treatment of Special Transactions

① Acquisition of Non-controlling Interests

When acquiring equity interests in a subsidiary from non-controlling shareholders, the Company measures the cost of the newly acquired long-term equity investment in its separate financial statements at the fair value of the consideration paid. In the consolidated financial statements, the difference between the cost of the long-term equity investment acquired through the purchase of non-controlling interests andthe share of the subsidiary's net assets attributable to the additional interest (calculated continuously from the date of acquisition or combination) shall be adjusted against capital reserves (share premium). If the capital reserves are insufficient to absorb the difference, the excess shall be charged against surplus reserve and retained earnings in sequence.

② Obtaining Control of a Subsidiary through Step-by-Step Transactions

A. Business Combinations under Common Control Achieved Through Step-by-Step Transactions

On the date of combination, in the separate financial statements, the Company shall determine the initial investment cost of the long-term equity investment based on its post-combination share of the carrying amount of the subsidiary’s net assets as reflected in the ultimate controlling party’s consolidated financial statements. The difference between this initial investment cost and the sum of (i) the carrying amount of the long-term equity investment held prior to the combination and (ii) the carrying amount of the new consideration paid for additional shares on the date of combination shall be adjusted against capital reserves (share premium). If the capital reserves are insufficient to absorb the difference, the excess shall be charged against surplus reserve and retained earnings in sequence.

In the consolidated financial statements, the assets and liabilities of the acquiree acquired in the combination are measured at their carrying amounts as reflected in the ultimate controlling party’s consolidated financial statements at the combination date, except for adjustments arising from differences in accounting policies or accounting periods. The difference between the carrying amount of the net assets acquired in the combination and the sum of the carrying amount of the investment held prior to the combination and the carrying amount of the new consideration paid on the combination date is adjusted against capital reserves (share premium). If the capital reserves are insufficient to absorb the adjustment, the excess is adjusted against retained earnings.

For the equity investment held before obtaining control over the acquiree, relevant gains and losses, other comprehensive income, and other changes in equity recognized between the later of the date of obtaining the original equity or the date when the acquiring party and the acquired party are under common control and the date of combination, shall be deducted from the beginning retained earnings or the profits and losses of the comparative statement period.

Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

TCL Technology Group Corporation

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

7 Methods for judging control and preparing consolidated financial statements (Continued)

(5) Accounting Treatment of Special Transactions (Continued)

B. Business Combinations not under Common Control Achieved Through Step-by-Step Transactions

On the acquisition date, in the separate financial statements, the initial investment cost of the long-term equity investment is the sum of the carrying amount of the previously held longterm equity investment and the cost of the new investment made on the acquisition date.

In the consolidated financial statements, the equity interest in the acquiree held prior to the acquisition date shall be remeasured at its fair value on the acquisition date. If the previously held equity interest is designated as a financial asset at fair value through other comprehensive income (FVTOCI), the difference between its fair value and carrying amount is recognized in retained earnings, and the cumulative fair value changes previously recognized in other comprehensive income relating to that equity interest are transferred to retained earnings. If the previously held equity interest is a financial asset at fair value through profit or loss (FVTPL) or a long-term equity investment accounted for using the equity method, the difference between its fair value and carrying amount is recognized in investment income for the current period. If the previously held equity interest involves other comprehensive income and other changes in owners' equity (other than net profit or loss, other comprehensive income, and profit distribution) under the equity method, the related other comprehensive income is accounted for on the acquisition date on the same basis as would be required if the investee had directly disposed of the related assets or liabilities, and the related other changes in owners' equity are transferred to investment income for the period in which the acquisition date falls.

③ The Company’s Disposal of Long-term Equity Investment in a Subsidiary Without Loss of Control

The difference between the disposal proceeds from the partial disposal of a long-term equity investment in a subsidiary without losing control and the share, corresponding to the longterm equity investment disposed of, in the net assets of the subsidiary calculated continuously from the acquisition date or combination date shall be adjusted against capital reserves (share premium) in the consolidated financial statements. If the capital reserves are insufficient to absorb the adjustment, the remaining amount is adjusted against retained earnings.

④ The Company’s Disposal of Long-term Equity Investment in a Subsidiary with Loss of Control

A. A single transaction

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

In the preparation of consolidated financial statements, when the Company loses control over the investee due to the disposal of part of the equity investment or other reasons, the excess is re-measured at its fair value as of the date of loss of control. The difference between the sum of the consideration from the disposal and the fair value of the remaining equity, and the sum of the share of the original subsidiary’s net assets calculated on a continuous basis based on the original shareholding ratio since the date of acquisition or combination and goodwill, is recognized as investment income in the current period when control is lost.

Other comprehensive income related to the equity investment in the former subsidiary shall be accounted for on the same basis as would be required if the relevant assets or liabilities had been disposed of directly at the time control is lost. Other changes in owner's equity under the equity method related to the former subsidiary are transferred to profit or loss for the current period upon the loss of control.

III Significant accounting policies and accounting estimates (Continued)

7 Methods for judging control and preparing consolidated financial statements (Continued)

(5) Accounting Treatment of Special Transactions (Continued)

B. Disposal Through Step-by-Step Transactions

In the consolidated financial statements, it should be first determined whether the step-by-step transactions constitute a "package transaction".

If the step-by-step transactions do not constitute a "package transaction", in the separate financial statements, for each transaction prior to the loss of control over the subsidiary, the carrying amount of the long-term equity investment corresponding to the equity interest disposed of is derecognized, and the difference between the consideration received and the carrying amount of the long-term equity investment disposed of is recognized in investment income for the current period. In the consolidated financial statements, such transactions are accounted for in accordance with the relevant provisions regarding "The Company’s Disposal of Long-term Equity Investment in a Subsidiary Without Loss of Control".

If the step-by-step transactions constitute a package transaction, the transactions are accounted for as a single transaction of disposing of a subsidiary resulting in a loss of control. In the separate financial statements, the difference between the consideration received and the carrying amount of the long-term equity investment corresponding to the disposed equity interest for each transaction prior to the loss of control is initially recognized in other comprehensive income, and then transferred to profit or loss for the period in which control is lost. In the consolidated financial statements, for each transaction prior to the loss of control, the difference between the disposal consideration and the parent's share of the subsidiary's net assets corresponding to the disposed investment is recognized in other comprehensive income, and then transferred to profit or loss for the period in which control is lost.

When the terms, conditions, and economic influence of transactions conform to one or more of the following, multiple transactions are usually treated as a package transaction for accounting purposes:

(a) These transactions are made simultaneously or with consideration of influence on each other.

(b) These transactions can only achieve a complete business outcome when they are accounted for collectively.

(c) The occurrence of a transaction depends on the occurrence of at least one of the other transactions.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

(d) A transaction is considered uneconomical individually, but is economical when considered collectively with other transactions.

⑤ Dilution of Parent Company’s Equity Interest due to Capital Increase by Non-controlling Shareholders of a Subsidiary

Other shareholders (non-controlling shareholders) of a subsidiary make capital injections into the subsidiary, thereby diluting the parent company's equity interest in the subsidiary. In the consolidated financial statements, the difference between parent company's share of the subsidiary's net assets calculated based on its equity interest before the capital injection and the parent company's share of the subsidiary's net assets calculated based on its equity interest after the capital injection, is adjusted against capital reserves (capital premium or share premium). If the capital reserves are insufficient to absorb the adjustment, the excess is adjusted against retained earnings.

TCL Technology Group Corporation

Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

8 Classification of joint arrangements and accounting treatment method for joint operations

A joint arrangement is an arrangement of which two or more parties have joint control. The Company classifies its joint arrangements into joint operations and joint ventures.

(1) Joint operation

A joint operation is a joint arrangement whereby the Company has rights to the assets, and obligations for the liabilities, relating to the arrangement.

The Company recognizes the following items in relation to the interest in a joint operation, and carry out accounting treatment in accordance with the provisions of relevant accounting standards for business enterprises:

① its assets, including its share of any assets held jointly;

② its liabilities, including its share of any liabilities incurred jointly;

③ its revenue from the sale of its share of the output arising from the joint operations;

④ its share of the revenue from the sale of the output by the joint operations; and

⑤ its expenses, including its share of any expenses incurred jointly.

(2) Joint venture

A joint venture is a joint arrangement whereby the Company has rights only to the net assets of the arrangement.

The Company accounts for its investments in joint ventures in accordance with the provisions regarding the equity method for long-term equity investments.

TCL Technology Group Corporation

Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

Significant accounting policies and accounting estimates (Continued)

Criteria for determining cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. They generally have a maturity of three months or less from the date of acquisition.

10 Foreign currency business and translation of foreign currency statements

(1) Determination of exchange rates for foreign currency transactions

Foreign currency transactions are initially translated into the functional currency at the spot exchange rate on the date of the transaction, or an exchange rate that approximates the spot exchange rate and is determined using a systematic and reasonable method (hereinafter referred to as the "approximate spot exchange rate").

(2) Translation of foreign currency monetary items at the balance sheet date

At the balance sheet date, foreign currency monetary items are translated using the spot exchange rate at that date. Exchange differences arising from the difference between the spot exchange rate at the balance sheet date and the spot exchange rate at the initial recognition or the previous balance sheet date are recognized in profit or loss for the current period. Foreign currency non-monetary items measured at historical cost are translated at the spot exchange rate on the date of the transaction. For inventories measured at the lower of cost and net realizable value, where the inventories are purchased in foreign currency and their net realizable value at the balance sheet date is denominated in foreign currency, the net realizable value is translated into the functional currency using the spot exchange rate on the balance sheet date and then compared with the cost of inventories denominated in the functional currency, to determine the carrying amount of such inventories. Foreign currency non-monetary items measured at fair value are translated at the spot exchange rate at the date when the fair value was determined. For financial assets measured at fair value through profit or loss, the resulting exchange differences are recognized in profit or loss. For non-trading equity instrument investments designated as measured at fair value through other comprehensive income, the resulting exchange differences are recognized in other comprehensive income.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

10 Foreign currency business and translation of foreign currency statements (Continued)

(3) Translation of foreign currency financial statements

Prior to translating the financial statements of a foreign operation, the accounting period and accounting policies of the foreign operation are adjusted to align with those of the Company. Then, financial statements in the corresponding currency (a currency other than the functional currency) are then prepared based on the adjusted accounting policies and accounting period. Thereafter, the financial statements of the foreign operation are then translated using the following methods:

① The assets and liabilities in the balance sheet are translated at the spot exchange rate on the balance sheet date. The owner’s equity items, except for the "Retained earnings" item, are translated at the spot exchange rate at the time of occurrence of the items.

② Income and expense items in the income statement are translated at the spot exchange rates at the dates of the transactions or an approximate spot exchange rate.

③ Foreign currency cash flows and the cash flows of foreign subsidiaries are translated at the spot exchange rates at the dates of the cash flows or at an exchange rate that approximates the spot exchange rate. The effect of exchange rate changes on cash is presented separately in the statement of cash flows as a reconciling item.

④ In the preparation of consolidated financial statements, the resulting foreign currency translation differences are presented under the item "Other comprehensive income" within the owners' equity section of the consolidated balance sheet.

Upon the disposal of a foreign operation and loss of control, the foreign currency translation differences relating to that foreign operation presented within the owners' equity section of the balance sheet are transferred to profit or loss for the current period, either in full or in proportion to the disposal of that foreign operation.

11 Financial instruments

Financial instruments are contracts that form a financial asset of one party and a financial liability or equity instrument of another party.

(1) Recognition and derecognition of financial instruments

When the Company becomes a party to a financial instrument, it recognizes the related financial asset or liability.

Financial assets are derecognized if any of the following conditions is met:

① The contractual right to receive cash flow from the financial asset is terminated;

② The financial asset has been transferred and satisfies the criteria for derecognition of financial assets described below.

If the current obligation of a financial liability (or part thereof) has been discharged, such financial liability (or part thereof) is derecognized. If the Company (as the borrower) enters into an agreement with a lender to replace an original financial liability with a new one, and the terms of the new liability are substantially different from those of the original, the original liability shall be derecognized and a new liability recognized. If the Company makes substantial modifications to the contractual terms of an existing financial liability (or a part thereof), the existing financial liability is derecognized and a new financial liability is recognized in accordance with the modified terms

Regular way purchases and sales of financial assets are recognized and derecognized on the trade date. A regular way purchase or sale of financial assets is a purchase or sale of financial assets that require delivery of the assets within the timeframe established by regulations or market conventions in accordance with the terms of the contract. The trade date is the date on which the Company commits to purchase or

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

sell the financial asset.

III Significant accounting policies and accounting estimates (Continued)

11 Financial instruments (Continued)

(2) Classification and measurement of financial assets

Upon initial recognition, based on the Company's business model for managing financial assets and the contractual cash flow characteristics of the financial assets, financial assets are classified into three categories: financial assets measured at amortized cost, financial assets measured at fair value through profit or loss, and financial assets measured at fair value through other comprehensive income. Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

Financial assets are measured at fair value upon initial recognition. For financial assets measured at fair value through profit or loss, transaction expenses are directly recognized in the current profit and loss. For other financial assets, transaction expenses are included in the initial recognition amount. For notes receivable and accounts receivable arising from the sale of goods or provision of services that do not contain or involve a significant financing component, the Company initially measures them at the transaction price as defined by the revenue standard.

Subsequent measurement of financial assets depends on their classification:

1 Financial assets are measured at amortized cost

A financial asset is classified as measured at amortized cost if it meets both of the following conditions: the Company's business model for managing the financial asset is to collect contractual cash flows; and the contractual terms of the financial asset give rise on specified dates to the cash flows are solely payments of principal and interest on the principal amount outstanding. Such financial assets are subsequently measured at amortized cost using the effective interest method. Gains or losses arising from derecognition, amortization using the effective interest method, or impairment are all recognized in profit or loss for the current period.

2 Financial assets are measured at fair value through other comprehensive income

A financial asset is classified as a financial asset measured at fair value through other comprehensive income if it meets both of the following conditions: The business model of the Company for managing the financial asset is to collect contractual cash flows and to sell the financial asset; and the contractual terms of the financial asset require that, on specified dates, the cash flows are solely payments of principal and interest on the principal amount outstanding. Such financial assets are subsequently measured at fair value. Except for impairment losses or gains and exchange differences recognized in profit or loss for the current period, changes in the fair value of such financial assets are recognized in other comprehensive income. Upon derecognition of the financial asset, the cumulative gain or loss previously recognized in other comprehensive income is reclassified to profit or loss for the current period. However, interest income related to such financial assets calculated using the effective interest method is recognized in profit or loss for the current period.

The Company irrevocably designates certain non-trading equity instrument investments as financial assets measured at fair value through other comprehensive income, recognizes only the related dividend income in profit or loss for the current period, and recognizes changes in fair value in other comprehensive income. Upon derecognition of the financial asset, its accumulated gains or losses are reclassified to retained earnings.

Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

TCL Technology Group Corporation

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

11 Financial instruments (Continued)

(2) Classification and measurement of financial assets (Continued)

3 Financial assets are measured at fair value through profit or loss

All financial assets other than those measured at amortized cost or at fair value through other comprehensive income are classified as measured at fair value through profit or loss. For such financial assets, the Company measures them at fair value subsequently, and recognizes all changes in fair value in profit or loss for the current period.

(3) Classification and measurement of financial liabilities

The Company classifies financial liabilities into: financial liabilities measured at fair value through profit or loss, loan commitments at below-market interest rates and financial guarantee contract liabilities, and financial liabilities measured at amortized cost.

Subsequent measurement of financial liabilities depends on their classification:

① Financial liabilities measured at fair value through profit or loss

Such financial liabilities include held-for-trading financial liabilities (including derivatives falling under financial liabilities) and financial liabilities designated as financial liabilities measured at fair value through profit or loss. After initial recognition, such financial liabilities are subsequently measured at fair value. Unless they are part of a hedging relationship, gains or losses arising therefrom (including interest expenses) are recognized in profit or loss for the current period. However, for financial liabilities designated by the Company as measured at fair value through profit or loss, the amount of changes in the fair value of the financial liability that is attributable to changes in the Company's own credit risk of that liability is recognized in other comprehensive income. When such financial liabilities are derecognized, the cumulative gains or losses previously recognized in other comprehensive income is transferred from other comprehensive income to retained earnings.

② Loan commitments and financial guarantee contract liabilities

A loan commitment is a commitment made by the Company to provide a loan to a customer under specified terms and conditions during the commitment period. Provision for impairment losses on loan commitments is recognized based on the expected credit loss model.

Financial guarantee contracts refer to contracts that require the Company to pay a specific amount to the contract holder who has suffered losses when a specific debtor fails to pay the debt in accordance with the original or modified terms of the debt instrument. Financial guarantee contracts are subsequently measured at the higher of: the amount of the loss allowance determined in accordance with the impairment principles for financial instruments, and the amount initially recognized less, when appropriate, the cumulative amount of income recognized in accordance with the principles of revenue recognition

③ Financial liabilities measured at amortized cost

After initial recognition, other financial liabilities are measured at amortized cost using the effective interest method.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

11 Financial instruments (Continued)

(3) Classification and measurement of financial liabilities (Continued)

Except in special circumstances, financial liabilities and equity instruments are distinguished according to the following principles:

① If the Company does not have an unconditional right to avoid delivering cash or another financial asset to settle a contractual obligation, the obligation meets the definition of a financial liability. Some financial instruments may not explicitly contain terms and conditions imposing an obligation to deliver cash or another financial asset, but may indirectly establish such an obligation through other terms and conditions.

② If a financial instrument must or may be settled in the Company's own equity instruments, consideration is given to whether the Company's own equity instruments used for settlement are provided as a substitute for cash or another financial asset, or to provide the holder with a residual interest in the assets of the issuer after deducting all liabilities. If it is the former, the instrument is a financial liability of the issuer; if it is the latter, the instrument is an equity instrument of the issuer. In certain cases, a financial instrument contract stipulates that the Company must or may settle the financial instrument using its own equity instruments, and the amount of the contractual right or obligation equals the number of own equity instruments to be received or delivered multiplied by their fair value at settlement. In such cases, regardless of whether the amount of such contractual right or obligation is fixed, or varies in whole or in part based on changes in variables other than the market price of the Company's own equity instruments (for example, interest rates, prices of certain commodities, or prices of financial instruments), the contract is classified as a financial liability.

(4) Derivative financial instruments and embedded derivatives

Derivative financial instruments are initially measured at fair value on the date the derivative contract is entered into, and are subsequently measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivatives are recognized directly in profit or loss for the current period, except for the effective portion of cash flow hedges, which is recognized in other comprehensive income and later reclassified to profit or loss when the hedged item affects profit or loss.

For hybrid instruments containing embedded derivatives, if the host contract is a financial asset, the hybrid instrument as a whole is subject to the relevant provisions on the classification of financial assets. If the host contract is not a financial asset and the hybrid instrument is not accounted for at fair value through profit or loss, the embedded derivative shall be separated from the hybrid instrument and accounted for as a separate derivative financial instrument, provided that the embedded derivative is not closely related to the host contract in terms of economic characteristics and risks, and a separate instrument with the same terms would meet the definition of a derivative. If the fair value of the embedded derivative cannot be separately measured at the acquisition date or at a subsequent balance sheet date, the entire hybrid instrument is designated as a financial asset or financial liability at fair value through profit or loss.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

11 Financial instruments (Continued)

(5) Impairment of financial instruments

The Company recognizes loss allowances based on expected credit losses for financial assets measured at amortized cost, debt investments measured at fair value through other comprehensive income, contract assets, lease receivables, loan commitments, and financial guarantee contracts, etc.

① Measurement of expected credit losses

Expected credit loss refers to the weighted average of the credit losses of financial instruments weighted by the risk of default. Credit loss refers to the difference between all contractual cash flows discounted at the original effective interest rate and receivable according to the contract and all cash flows expected to be collected by the Company, i.e. the present value of all cash shortfalls. Among them, credit-impaired purchased or originated financial assets of the Company shall be discounted at the credit-adjusted effective interest rate of such financial assets.

Lifetime expected credit losses refer to the expected credit losses that result from all possible default events over the expected life of a financial instrument.

12-month expected credit losses refer to the portion of lifetime expected credit losses that represent the expected credit losses that result from default events on a financial instrument that are possible within 12 months after the balance sheet date (or a shorter period if the expected life of the financial instrument is less than 12 months).

At each balance sheet date, the Company measures the expected credit losses for financial instruments in different stages separately. If the credit risk on a financial instrument has not increased significantly since initial recognition, it is classified as Stage 1, and the Company measures the loss allowance at an amount equal to 12-month expected credit losses; if the credit risk has increased significantly since initial recognition the financial instrument is not creditimpaired, it is classified as Stage 2, and the Company measures the loss allowance at the amount equal to lifetime expected credit losses; if the financial instrument has become credit-impaired since initial recognition, it is classified as Stage 3, and the Company measures the loss allowance at the amount equal to lifetime expected credit losses.

For financial instruments that have low credit risk at the balance sheet date, the Company assumes that the credit risk has not increased significantly since initial recognition, and measures the loss allowance at an amount equal to 12-month expected credit losses.

For financial instruments in Stage 1 and Stage 2, as well as those with low credit risk, the Company calculates interest income by applying the effective interest rate to their gross carrying amount. For financial instruments in Stage 3, the Company calculates interest income by applying the effective interest rate to their amortized cost (i.e., gross carrying amount less loss allowance).

For notes receivable, accounts receivable, receivables financing, and contract assets, regardless of whether they contain a significant financing component exists, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

11 Financial instruments (Continued)

(5) Impairment of financial instruments (Continued)

A. Receivables/Contract assets

For notes receivable, accounts receivable, other receivables, receivables financing, contract assets, and long-term receivables that have objective evidence of impairment or are otherwise subject to individual assessment, the Company performs impairment testing on an individual basis, recognizes expected credit losses, and recognizes an individual loss allowance. For notes receivable, accounts receivable, other receivables, receivables financing, contract assets, and long-term receivables that do not have objective evidence of impairment, or when expected credit loss information for a single financial asset cannot be assessed without undue cost or effort, the Company classifies such receivables into several groups based on credit risk characteristics and calculates expected credit losses on a collective basis.

B. Debt investments and other debt investments

For debt investments and other debt investments, the Company calculates expected credit losses based on the nature of the investments, the various types of counterparties and risk exposures, and by using the exposure at default and the 12-month or lifetime expected credit loss rate.

② Having low credit risk

The financial instrument will be deemed to have lower credit risk under the following circumstances: the default risk of the financial instrument is lower; the borrower has a strong capacity to fulfill its contractual cash flow obligations in a short time; furthermore, even if there are adverse changes in the economic situation and operating environment for a long period of time, it may not necessarily reduce the borrower’s ability to fulfill its contractual cash flow obligations.

③ Significant increase in credit risk

To assess whether the credit risk on a financial instrument has increased significantly since initial recognition, the Company compares the probability of a default occurring over the expected life determined at the balance sheet date with that determined at initial recognition, so as to determine the relative change in the probability of a default occurring over the expected life of the financial instrument. In determining whether credit risk has increased significantly since initial recognition, the Company considers reasonable and supportable information that is available without undue cost or effort, including forward-looking information. The information considered by the Company includes:

A. Whether internal price indicators reflecting changes in credit risk have changed significantly;

B. Whether adverse changes in business, financial, or economic conditions are expected to cause a significant change in the debtor's ability to meet its repayment obligations;

C. Whether the debtor's operating results have actually or expectedly changed significantly; whether the regulatory, economic, or technological environment in which the debtor operates has changed significantly and adversely;

D. Whether the value of collateral pledged for the debt or the quality of third-party guarantees or credit enhancements has changed significantly. Whether these changes are expected to reduce the debtor's economic incentive to make repayments as contractually scheduled or affect the probability of default;

E. Whether there are significant changes in the economic incentives that are expected to reduce the debtor's willingness to make repayments as contractually scheduled;

F. Expected changes to loan agreements, including whether anticipated covenant breaches may result in the waiver or modification of contractual obligations, the granting of interest-free periods, interest rate step-ups, requirements for additional collateral or guarantees, or other changes to the contractual framework of the financial instrument;

G. Whether the debtor's expected performance and repayment behavior have changed significantly;

H. Whether contract payments are overdue for more than (including) 30 days.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

11 Financial instruments (Continued)

(5) Impairment of financial instruments (Continued)

Based on the nature of the financial instruments, the Company assesses whether credit risk has increased significantly on an individual financial instrument basis or on a collective basis. When assessing on a collective basis, the Company may group financial instruments based on shared credit risk characteristics, such as past due status and credit risk ratings.

Generally, if an instrument is more than 30 days past due, the Company determines that the credit risk on the financial instrument has increased significantly. Unless the Company has reasonable and supportable information that is available without undue cost or effort, demonstrating that the credit risk has not increased significantly since initial recognition even though the contractual payments are more than 30 days past due.

④ Financial assets with depreciation of credit

At the balance sheet date, the Company assesses whether financial assets measured at amortized cost and debt investments measured at fair value through other comprehensive income are creditimpaired. If one or more events have adverse effects on the expected future cash flow of a financial asset, the financial asset will become a financial asset that has suffered credit impairment. The following observable information can be regarded as evidence of credit impairment of financial assets:

The issuer or debtor is experiencing significant financial difficulty; the debtor is in breach of contract, such as default or delinquency in interest or principal payments; the creditor, for economic or contractual reasons relating to the debtor's financial difficulty, grants the debtor a concession that the creditor would not otherwise consider; the debtor is likely to become bankrupt or undergo other financial reorganization; the active market for the financial asset disappears due to financial difficulties of the issuer or debtor; a financial asset is purchased or originated at a deep discount that reflects incurred credit losses.

⑤ Presentation of expected credit loss allowance

To reflect changes in the credit risk of a financial instrument since initial recognition, the Company remeasures expected credit losses at each balance sheet date. The resulting increase or reversal of the loss allowance is recognized in profit or loss for the current period as impairment loss or gain. For financial assets measured at amortized cost, the loss allowance reduces against the carrying amount of the financial asset presented in the balance sheet. For debt investments measured at fair value through other comprehensive income, the Company recognizes the loss allowance in other comprehensive income and does not reduce the carrying amount of the financial asset.

⑥ Write-off

If the Company cannot reasonably expect the contract cash flow of the financial asset to be fully or partially recovered, the book balance of the gross amount will be written off directly. This write-off constitutes the derecognition of relevant financial assets. This situation typically occurs when the Company determines that the debtor has no assets or sources of income that could generate sufficient cash flows to repay the amount to be written off.

If a financial asset that has been written off is subsequently recovered, the recovery is recognized in

TCL Technology Group Corporation

Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

profit or loss in the period of recovery as a reversal of impairment losses.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

11 Financial instruments (Continued)

(6) Transfer of financial assets

A transfer of financial assets occurs in either of the following two situations:

A. Transferring the contractual right to receive the cash flows of the financial asset to another party;

B. Transferring the financial asset in its entirety or in part to another party, while retaining the contractual right to receive the cash flows of the financial asset and assuming a contractual obligation to pay the cash flows received to one or more recipients.

① Derecognition of the transferred financial asset

If the Company has transferred substantially all the risks and rewards of ownership of the financial asset to the transferee, or if it has neither transferred nor retained substantially all the risks and rewards of ownership of the financial asset but has not retained control of the financial asset, the financial asset is derecognized.

In determining whether control of the transferred financial asset has been retained, the Company considers the transferee's practical ability to sell the asset. If the transferee has the practical ability to sell the transferred financial asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer, then the Company has not retained control of the financial asset.

In assessing whether a transfer of financial assets satisfies the conditions for derecognition of financial assets, the Company focuses on the economic substance of the transfer.

If the overall transfer of financial assets meets the conditions for derecognition, the difference between the following two amounts shall be included in the current profits and losses:

A. The carrying amount of the transferred financial asset;

B. The sum of the consideration received for the transfer and the cumulative amount of changes in fair value previously recognized directly in other comprehensive income that corresponds to the derecognized portion (applicable where the transferred financial asset is one classified as measured at fair value through other comprehensive income pursuant to Article 18 of the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement ofFinancial Instruments).

If a financial asset is partially transferred and the transferred part meets the conditions for derecognition, the entire carrying amount of the financial asset shall be allocated between the derecognized portion and the continuing recognized portion (in this case, the retained servicing asset shall be regarded as part of the continuing recognized financial asset) based on their respective relative fair values on the transfer date, and the difference between the following two amounts shall be recognized in profit or loss for the current period:

A. The carrying amount of the derecognized portion on the derecognition date;

B. The sum of the consideration for the derecognized portion and the amount of the cumulative fair value changes previously recognized in other comprehensive income that corresponds to the derecognized portion (applicable where the transferred financial asset is one classified as measured at fair value through other comprehensive income pursuant to Article 18 of the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement ofFinancial Instruments).

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

11 Financial instruments (Continued)

(6) Transfer of financial assets (Continued)

② Continuing involvement in the transferred financial asset

If the Company has neither transferred nor retained substantially all the risks and rewards of ownership of the financial asset and has not relinquished control over the financial asset, it shall recognize the relevant financial asset to the extent of its continuing involvement in the transferred financial asset, and shall correspondingly recognize the relevant liability.

The extent that it continues to be involved in the transferred financial asset refers to the extent to which the Company bears the risks or rewards of changes in the value of the transferred financial asset.

③ Continuing recognition of the transferred financial asset

If the Company retains substantially all the risks and rewards of ownership of the transferred financial asset, it shall continue to recognize the transferred financial asset in its entirety and recognize the consideration received as a financial liability.

The financial asset and the related financial liability recognized shall not be offset against each other. In subsequent accounting periods, the Company shall continue to recognize any income (or gain) arising on the transferred financial asset and any expense (or loss) incurred on the associated financial liability.

(7) Offsetting of Financial Assets and Financial Liabilities

In the balance sheet, financial assets and financial liabilities shall be shown separately without offsetting each other. However, if the following conditions are met at the same time, the net amount after offsetting will be listed in the balance sheet:

The Company has the legal right, which is currently enforceable, to offset the confirmed amount;

The Company plans to settle on a net basis or realize the financial assets and settle the financial liabilities at the same time.

For a transfer of a financial asset that does not meet the derecognition criteria, the transferor shall not offset the transferred financial asset and the related liability.

(8) Determination of fair value of financial instruments

The fair value determination methods for financial assets and financial liabilities are set out in Note III. 12.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

12 Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The Company measures the fair value of a relevant asset or liability using the price in the principal market for the asset or liability, or in the absence of a principal market, the Company measures the fair value of the relevant asset or liability using the price in the most advantageous market. The Company uses assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

The principal market is the market with the greatest volume and level of activity for the relevant asset or liability. The most advantageous market is the market that maximizes the amount that would be received to sell the relevant asset or minimizes the amount that would be paid to transfer the relevant liability, after taking into account transaction costs and transport costs.

For financial assets or financial liabilities with an active market, the Company uses quoted prices in the active market to determine their fair value. For financial assets or financial liabilities without an active market, the Company uses valuation techniques to determine their fair value.

A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use, or by selling it to another market participant that would use the asset in its highest and best use.

① Valuation techniques

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available. The valuation techniques used mainly include the market approach, the income approach, and the cost approach. The Company measures fair value using methods consistent with one or more of these valuation techniques. Where multiple valuation techniques are used to measure fair value, the Company considers the reasonableness of each valuation result and selects the amount that best represents fair value under current circumstances as the fair value.

In the application of valuation techniques, the Company prioritizes the use of relevant observable inputs and uses unobservable inputs only when relevant observable inputs cannot be obtained or it is impracticable to obtain them. Observable inputs are inputs that are developed using market data. These inputs reflect the assumptions that market participants would use when pricing the relevant asset or liability. Unobservable inputs are inputs for which market data are not available. These inputs are developed using the best information available about the assumptions that market participants would use when pricing the asset or liability.

② Fair value hierarchy

The Company categorizes the inputs used in fair value measurement into three levels, and prioritizes the use of Level 1 inputs, then Level 2 inputs, and lastly Level 3 inputs. Level 1 inputs are unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. Level 2 inputs are inputs other than Level 1 inputs that are observable for the relevant asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the relevant asset or liability.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

13 Inventories

(1) Classification of inventories

Inventories refer to, among other things, finished products or goods held by the Company for sale in its daily activities, work in progress in production, materials, and supplies consumed in the production or provision of labor services. Inventories mainly include but are not limited to raw materials, work in progress, finished goods, and turnover materials.

(2) Valuation method for inventories shipped in transit

Inventories are shipped in transit by the weighted average method.

(3) Inventory system

The Company maintains a perpetual inventory system for its inventories and conducts physical inventory counts at least once a year. Inventory overages and shortages are charged to profit or loss for the current year.

(4) Recognition criteria and provisioning method for inventory impairment

At the balance sheet date, inventories are measured at the lower of cost and net realizable value. If the cost of inventories exceeds their net realizable value, a provision for decline in value of inventories is made and recognized in profit or loss for the current period.

In determining the net realizable value of inventories, the assessment is based on reliable evidence available, taking into account factors such as the purpose for which the inventories are held and the effects of events after the balance sheet date.

① For inventories such as finished goods, commodities, and materials for sale that are directly held for sale, their net realizable value is determined, in the ordinary course of business, as the estimated selling price of such inventories less the estimated costs necessary to make the sale and relevant taxes and charges. For inventories held for the purpose of performing sales contracts or service contracts, the contract price is used as the basis for measuring their net realizable value. If the quantity of inventories held exceeds the quantity ordered under the sales contract, the net realizable value of the portion in excess is measured based on general selling prices. For materials for sale, etc., market prices are used as the basis for measuring their net realizable value.

② For material inventories that require further processing, their net realizable value is determined, in the ordinary course of business, as the estimated selling price of the finished goods produced less the estimated costs to completion, the estimated costs necessary to make the sale and relevant taxes and charges. If the net realizable value of the finished goods produced using such materials is higher than their cost, such materials are measured at cost. If a decline in material prices indicates that the net realizable value of the finished goods is lower than their cost, such materials are measured at net realizable value, and a provision for inventory impairment is made for the difference.

③ The Company generally makes provision for inventory impairment on an item-by-item basis. For inventories with numerous quantities and low unit prices, the provision is made on a category basis.

(5) Amortization method of turnover materials

The Company's turnover materials are amortized by the one-time amortization method.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

14 Contract Assets and Contract Liabilities

The Company presents contract assets or contract liabilities in the balance sheet based on the relationship between the Company's performance and the customer's payment. The Company presents as contract assets the consideration it has the right to charge for goods transferred or services rendered to customers (where such right is conditional on something other than the passage of time). The Company presents as contract liabilities its obligation to transfer goods or render services to customers for consideration received or receivable.

For the determination method and accounting treatment of expected credit losses on contract assets, please refer to Note III. 11.

Contract assets and contract liabilities are presented separately in the balance sheet. Contract assets and contract liabilities under the same contract are presented on a net basis. If the net balance is a debit balance, it is presented under "Contract assets" or "Other non-current assets" depending on its liquidity. Where the net balance is a credit balance, it is presented under "Contract liabilities" or "Other non-current liabilities" depending on its liquidity. Contract assets and contract liabilities under different contracts are not offset against each other.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

15 Contract costs

Contract costs are classified into costs to fulfill a contract and costs to obtain a contract.

Costs incurred by the Company in fulfilling a contract are recognized as an asset (contract performance costs) only when all of the following conditions are met:

① The cost is directly related to a current or predicted contract, including the direct labor, direct material, and manufacturing expenses (or similar expenses), the cost borne by the customer, and other costs resulting from the contract.

② The cost increases the resources of the Company that will be used to fulfill performance obligations in the future.

③ The cost is expected to be recovered.

If the incremental cost resulting from the Company’s acquisition of the contract is predicted to be recovered, it shall be recognized as an asset as the contract acquisition cost.

Assets recognized for contract costs are amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the assets relate. However, if the amortization period of the costs to obtain a contract is one year or less, the Company recognizes them in profit or loss when incurred.

The Company recognizes an impairment loss to the extent that the carrying amount of an asset related to contract costs exceeds the difference between the following two items, and further considers whether a provision for an onerous contract should be recognized:

① The remaining consideration expected to be received from the transfer of the goods or services to which the asset relates; and

② The costs estimated to be incurred in transferring the related goods or services.

If the impairment loss on the above assets is subsequently reversed, the carrying amount of the asset after reversal shall not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset at the date of reversal.

Contract fulfillment costs recognized as assets are presented under "Inventories" if the amortization period at initial recognition does not exceed one year or one normal operating cycle, and under "Other non-current assets" if the amortization period at initial recognition exceeds one year or one normal operating cycle.

Assets recognized for costs to obtain a contract are presented under "Other current assets" if the amortization period at initial recognition does not exceed one year or one normal operating cycle, and under "Other non-current assets" if the amortization period at initial recognition exceeds one year or one normal operating cycle.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

16 Held-for-sale non-current assets or disposal groups

(1) Classification of non-current assets or disposal groups held for sale

The Company classifies a non-current asset or a disposal group as held for sale only if it meets all of the following conditions:

① They can be sold immediately under the current status according to the practice of selling such assets or disposal groups in similar transactions;

② The sale is highly probable, meaning that the Company has made a resolution on a disposal plan and obtained a firm purchase commitment, and the sale is expected to be completed within one year. If relevant regulations require approval from the Company's relevant authority or regulatory bodies before disposal, such approval has been obtained.

When the Company acquires a non-current asset or disposal group exclusively with its view to subsequent disposal, it classifies the non-current asset or disposal group as held for sale at the acquisition date if it meets the requirement that "the sale is expected to be completed within one year" and it is highly probable that the other criteria for classification as held for sale will be met within a short period (usually three months), the Company classifies it as held for sale on the acquisition date.

If the Company is committed to a sale plan involving loss of control of a subsidiary, regardless of whether the Company will retain a non-controlling interest in the subsidiary after the disposal, when the investment in the subsidiary intended for disposal meets the criteria for classification as held for sale, the entire investment in the subsidiary shall be classified as held for sale in the separate financial statements of the parent company, and all assets and liabilities of the subsidiary are classified as held for sale in the consolidated financial statements.

(2) Measurement of non-current assets or disposal groups held for sale

The measurement of investment properties subsequently measured using the fair value model, biological assets measured at fair value less costs to sell, assets arising from employee compensation, deferred income tax assets, financial assets governed by the accounting standards for financial instruments, and rights arising from insurance contracts governed by the accounting standards for insurance contracts shall be subject to the respective relevant accounting standards.

If, at the time of initial measurement or remeasurement at the balance sheet date, the carrying amount of a non-current asset or disposal group held for sale exceeds its fair value less costs to sell, the carrying amount shall be written down to fair value less costs to sell. The amount of the write-down shall be recognized as an asset impairment loss and included in profit or loss for the current period, and an impairment allowance for assets held for sale shall be accrued at the same time. If, at a subsequent balance sheet date, the fair value less costs to sell of a non-current asset or disposal group held for sale increases, the previously written-down amount is reversed, but only to the extent of the asset impairment loss recognized after the classification as held for sale, and the amount of the reversal are recognized in profit or loss for the current period. An impairment loss recognized for goodwill at carrying amount is not reversed.

When a non-current asset or disposal group ceases to be classified as held for sale because it no longer meets the criteria for classification as held for sale, or when a non-current asset is removed from a disposal group held for sale, it is measured at the lower of the following two amounts:

① Its carrying amount before it was classified as held for sale, adjusted for any depreciation, amortization, or impairment that would have been recognized had the asset not been classified as held for sale; and

② Its recoverable amount.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

16 Held-for-sale non-current assets or disposal groups (Continued)

(3) Criteria for identifying discontinued operations

A discontinued operation refers to a component of the Company that can be separately distinguished and has been disposed of or is classified as held for sale, and which meets one of the following conditions:

① This component represents an independent main business or a separate main operation region;

② This component is part of a related plan to dispose of an independent main business or a separate main operation region;

③ This component is a subsidiary acquired for the sole purpose of resale.

(4) Presentation

In the balance sheet, the Company presents, independently from other assets, the held-for-sale noncurrent assets or assets in held-for-sale disposal groups, and presents, independently from other liabilities, the liabilities in held-for-sale disposal groups. The held-for-sale non-current assets or assets in held-for-sale disposal groups and the liabilities in held-for-sale disposal groups shall not offset each other, but shall be presented as current assets and current liabilities, respectively.

In the income statement, the Company presents the profits and losses from going concern and the profits and losses from discontinued operations. For the discontinued operations reported in the current period, the Company represents in the financial statements for the current period, the information previously presented as the profits and losses from going concern as the profits and losses from discontinued operations for the comparable accounting period. If the discontinued operations are no longer eligible for being classified as held-for-sale categories, the Company will represent in the financial statements for the current period, the information previously presented as the profits and losses from discontinued operations as the profits and losses from going concern for the comparable accounting period.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

17 Long-term equity investments

The Company's long-term equity investments include equity investments where the Company exercises control over or significant influence over the investee, as well as equity investments in joint ventures. An associate is an investee over which the Company has significant influence.

(1) Basis for determining joint control and significant influence over the investee

Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. In determining whether joint control exists, the Company first assesses whether all parties or a group of parties collectively control the arrangement. If all parties or a group of parties must act together to decide the relevant activities of the arrangement, it is considered that all parties or a group of parties collectively control the arrangement. Secondly, the Company assesses whether decisions about the relevant activities of the arrangement require the unanimous consent of the parties that collectively control the arrangement. If there are two or more groups of parties that can collectively control the arrangement, joint control does not exist. The Company does not consider protective rights when determining whether joint control exists.

Significant impact means the investor’s power to participate in the decision-making of the financial and operating policies of the investee, but by which the investor cannot control or commonly control together with other parties the formulation of the policies. In determining whether it can exercise significant influence over the investee, the Company considers the voting power it holds directly or indirectly by the investor in the investee, as well as the effects of potential voting rights currently exercisable by the investor and other parties, assuming they are converted into equity of the investee, including the effects of currently exercisable warrants, share options, and convertible bonds issued by the investee.

When the Company directly or indirectly through subsidiaries owns 20% or more but less than 50% of the voting equity shares of the investee, it is generally presumed that the Company has significant influence over the investee, unless it can be clearly demonstrated that under such circumstances the Company cannot participate in the financial and operating policy decisions of the investee and therefore does not have significant influence.

(2) Determination of initial investment cost

① For long-term equity investments arising from business combinations, the investment cost shall be determined in accordance with the following provisions:

A. For a business combination under common control, where the combining party pays cash, transfers non-cash assets, or assumes liabilities as the consideration for the combination, the initial investment cost of the long-term equity investment is the share of the carrying amount of the combined party's owners' equity in the consolidated financial statements of the ultimate controlling party at the combination date. The difference between the initial investment cost of the long-term equity investment and the carrying amount of the cash paid, the non-cash assets transferred, and the liabilities assumed is adjusted against capital reserves. If the capital reserves are insufficient to absorb the difference, retained earnings are adjusted.

B. For a business combination under common control, if the combining party issues equity securities as the consideration for the combination, the initial investment cost of the long-term equity investment is the share of the carrying amount of the acquiree's equity in the consolidated financial statements of the ultimate controlling party at the combination date. The share capital is

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

recognized based on the aggregate par value of the shares issued. The difference between the initial investment cost of the long-term equity investment and the aggregate par value of the shares issued shall be adjusted against capital reserves are. If the capital reserves are insufficient to absorb the difference, retained earnings are adjusted.

C. For a business combination not under common control, the combination cost, determined as the fair value of the assets given, liabilities incurred or assumed, and equity securities issued by the acquirer to obtain control over the acquiree at the acquisition date, is recognized as the initial investment cost of the long-term equity investment. Intermediary expenses such as auditing, legal services, and valuation consulting, as well as other related administrative expenses incurred by the combining party for the business combination, are recognized in profit or loss for the current period when incurred.

TCL Technology Group Corporation

III Significant accounting policies and accounting estimates (Continued)

17 Long-term equity investments (Continued)

(2) Determination of initial investment cost (Continued)

② For long-term equity investments acquired through means other than business combinations, the investment cost is determined in accordance with the following provisions:

A. For long-term equity investment acquired by cash payment, the actual acquisition price is recognized as investment cost. The initial investment cost includes expenses, taxes, and other necessary expenses directly related to the acquisition of the long-term equity investment.

B. For long-term equity investments acquired through the issuance of equity securities, the initial investment cost shall be the fair value of the equity securities issued.

C. For long-term equity investments acquired through non-monetary asset exchanges, where the exchange has commercial substance and the fair value of either the asset received or the asset given up can be reliably measured, the initial investment cost shall be the fair value of the asset given up plus relevant taxes and fees, and the difference between the fair value and the carrying amount of the asset given up shall be recognized in profit or loss for the current period. Where the non-monetary asset exchange does not simultaneously meet both of the above conditions, the initial investment cost shall be the carrying amount of the asset given up plus relevant taxes and fees.

D. For long-term equity investments acquired through debt restructuring, the carrying amount is determined based on the fair value of the claim surrendered plus other costs such as taxes directly attributable to the asset, and the difference between the fair value and the carrying amount of the claim surrendered is recognized in profit or loss for the current period.

(3) Subsequent measurement and methods for profit or loss recognition

Long-term equity investments through which the Company is able to exercise control over the investee are accounted for using the cost method; long-term equity investments in associates and joint ventures are accounted for using the equity method. For the Company's equity investments in associates, the portion held indirectly through venture capital organizations, mutual funds, trust companies, or similar entities including unit-linked insurance funds, is measured at fair value with changes recognized in profit or loss, and the remaining portion is accounted for using the equity method.

① Cost method

For long-term equity investments accounted for using the cost method, the cost of the long-term equity investment is adjusted when additional investment is made or investment is withdrawn. Cash dividends or profits declared and distributed by the investee are recognized as investment income for the current period.

② Equity method

For long-term equity investments accounted for using the equity method, the general accounting treatment is as follows:

Where the initial investment cost of a long-term equity investment is greater than the Company's share of the fair value of the investee's identifiable net assets at the time of investment, the initial investment cost of the long-term equity investment shall not be adjusted; otherwise, the difference shall be recognized in profit or loss for the current period, and the cost of the longterm equity investment shall be adjusted accordingly.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

17 Long-term equity investments (Continued)

(3) Subsequent measurement and methods for profit or loss recognition (Continued)

The investment income and other comprehensive income should be recognized respectively based on the Company's share in the net profits and loss and other comprehensive income realized by the investee, and the carrying amount of the long-term equity investment should be adjusted accordingly; the Company's share in the profits or cash dividends declared by the investee should be calculated, and the carrying amount of the long-term equity investment should be reduced accordingly; the carrying amount of the long-term equity investment should be adjusted based on changes in owners' equity of the investee other than net profits and loss, other comprehensive income, and profit distribution, and included in owners' equity. In recognizing the share of the net profit or loss of the investee, the net profit of the investee is adjusted and recognized based on the fair value of the investee's identifiable net assets at the time of acquiring the investment. If the accounting policies and accounting periods adopted by the investee are inconsistent with those of the Company, the financial statements of the investee are adjusted to conform to the Company's accounting policies and accounting periods, and investment income and other comprehensive income are recognized based thereon. Any unrealized profit and loss from internal transactions between the Company and its affiliates or joint ventures attributed to the Company based on the Company's, will be offset, and the investment profit and loss is recognized thereon. Unrealized losses on transactions between the Company and the investee that provide evidence of an impairment of the transferred asset are recognized in full.

If the Company is able to exercise significant influence or joint control over the investee due to additional investment or other reasons, but does not constitute control, the sum of the fair value of the originally held equity investment and the cost of the additional investment shall be used as the initial investment cost under the equity method. Where the originally held equity investment is classified as an investment in other equity instruments, the difference between its fair value and carrying amount as well as the cumulative gains or losses previously recognized in other comprehensive income, shall be transferred from other comprehensive income to retained earnings in the period the equity method is adopted.

Where the Company loses joint control or significant influence over the investee due to the disposal of part of the equity investment or otherwise, the remaining equity investment after the disposal shall be measured at fair value, and the difference between its fair value and carrying amount at the date of losing joint control or significant influence shall be recognized in profit or loss for the current period. Other comprehensive income recognized for the original equity investment accounted for using equity method should be accounted for on the same basis as the direct disposal of the underlying assets or liabilities by the investee when the equity method is terminated.

(4) Equity investments held for sale

Where an equity investment in an associate or a joint venture is classified in whole or in part as held for sale, the relevant accounting treatment is set out in Note III. 16.

For any retained portion of the equity investment not classified as held for sale, the equity method is applied.

Where an equity investment in an associate or a joint venture that has been classified as held for sale no longer meets the criteria for classification as held for sale, the equity method is applied retrospectively from the date of its classification as held for sale. The financial statements for the

TCL Technology Group Corporation

Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

periods during which the investment was classified as held for sale are adjusted accordingly.

(5) Impairment testing and provision methods for impairment losses

For investments in subsidiaries, associates, and joint ventures, the method for making provision for asset impairment is set out in Note III. 23.

TCL Technology Group Corporation

III Significant accounting policies and accounting estimates (Continued)

18 Investment properties

(1) Classification of investment properties

Investment properties refer to properties held to earn rentals or for capital appreciation, or both. They mainly include:

① Land use rights that are leased out.

② Land use rights held for transfer after appreciation.

③ Buildings that are leased out.

(2) Measurement model for investment properties

The Company uses the cost model for the subsequent measurement of investment properties. For the method of providing for asset impairment, see Note III. 23.

The Company calculates depreciation or amortization for investment properties using the straightline method based on cost less accumulated impairment and net residual value. The depreciation or amortization method adopts the same policy as that applied to buildings in fixed assets and land use rights in intangible assets.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

19 Fixed assets

Fixed assets refer to tangible assets held for the purpose of producing goods, rendering services, for rental or for operation and management, with a service life exceeding one year and a relatively high unit value.

(1) Recognition criteria

Fixed assets are recognized at the actual cost incurred at the time of acquisition when the following conditions are met simultaneously:

① The economic benefits associated with the fixed assets are likely to flow into the enterprise.

② The cost of the fixed asset can be measured in a reliable way.

Subsequent expenditures on fixed assets that satisfy the recognition criteria of fixed assets are included in the cost of fixed assets; otherwise, they are recognized in profit and loss in the period in which they arise.

(2) Depreciation methods for various categories of fixed assets

The Company accrues depreciation using the straight-line method starting from the month following the date when the fixed asset is ready for its intended use. The depreciation period and annual depreciation rate are determined based on the category of the fixed asset, the estimated economic useful life, and the estimated net residual value rate as follows:

For fixed assets for which an impairment provision has been recognized, depreciation is calculated based on the carrying amount net of the impairment provision.

At the end of each financial year, the Company reviews the useful lives, estimated net residual values, and depreciation methods of fixed assets. Where the estimated useful life differs from the previous estimate, the useful life of the fixed asset shall be adjusted accordingly.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

20 Construction in progress

(1) Construction in progress is classified and accounted for by project.

(2) Criteria and timing for transferring construction in progress to fixed assets

Construction in progress is measured at the total expenditure incurred before the asset is ready for its intended use, which serves as the initial cost of the fixed asset. This includes construction costs, original cost of machinery and equipment, other necessary expenditures incurred to bring the construction in progress to the condition ready for its intended use, as well as borrowing costs incurred from special borrowings for the project and borrowing costs incurred from genera borrowings utilized before the asset is ready for its intended use. The Company transfers construction in progress to fixed assets when the project installation or construction is completed and the asset is ready for its intended use. For fixed assets that are ready for their intended use but have not yet undergone final completion settlement, they are transferred to fixed assets at an estimated value based on the project budget, construction cost, or actual project cost from the date they are ready for their intended use, and depreciation is provided in accordance with the Company's fixed asset depreciation policy. After the final completion settlement is processed, the original provisional value is adjusted to the actual cost, but the originally accrued depreciation amount will not be adjusted.

21 Borrowing costs

(1) Recognition principles and capitalization period for borrowing costs

Borrowing costs that are directly attributable to the acquisition, construction, or production of qualifying assets are capitalized and included in the cost of the relevant assets when the following conditions are met simultaneously:

① Expenditure on the asset has been incurred;

② Borrowing costs have been incurred;

③ The acquisition, construction, or production activities necessary to bring the assets to their intended usable state have commenced.

Other borrowing interest, discount or premium, and exchange differences are recognized in the profit or loss of the current period.

If the acquisition, construction, or production of a qualifying asset is abnormally interrupted and the interruption lasts for more than three consecutive months, the capitalization of borrowing costs will be suspended.

When an asset that meets the capitalization conditions is ready for its intended use or sale, the capitalization of borrowing costs will be ceased and subsequent borrowing costs will be recognized as expenses for the current period.

(2) Calculation method for capitalization rate and capitalized amount

For special borrowings obtained for the acquisition, construction, or production of qualifying assets, the amount of interest expense actually incurred during the current period, less any interest income earned from depositing the unused borrowing funds in a bank or investment income from temporary investments, shall be recognized as the capitalized amount of interest expense.

Where general borrowings are utilized for the acquisition, construction, or production of qualifying assets, the amount of interest to be capitalized shall be determined by multiplying the weighted average of accumulated asset expenditures in excess of special borrowings by the capitalization rate of the general borrowings utilized. The capitalization rate is determined based on the weighted average interest rate of general borrowings.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

22 Intangible assets

Intangible assets refer to the identifiable non-monetary assets, owned or controlled by the Company, without physical form, including land use rights, intellectual property rights, and non-patented technologies, etc

Intangible assets are recorded at the actual cost at the time of acquisition. The service life of intangible assets is analyzed and judged at the time of acquisition. Intangible assets with a finite service life are amortized on the shortest of the estimated service lives, the beneficial period of the contract, and the effective period specified by law from the time when the intangible assets are available for use. The amortization period is as follows:

The Company reviews the service life and amortization method of intangible assets with limited service life at least at the end of each year, and makes adjustments if necessary.

The methods for impairment testing and accrual of impairment provisions of intangible assets are detailed in 23 "Long-term Asset Impairment" under Note III.

If the period over which an intangible asset is expected to bring economic benefits to the Company cannot be foreseen, it is regarded as an intangible asset with an indefinite useful life. The Company reviews its useful life in each accounting period. If evidence indicates that the useful life is finite, it is reclassified as an intangible asset with a finite useful life. Intangible assets with indefinite useful lives are not amortized.

The expenditures of the Company's internal research and development items are classified into expenditures in the research phase and expenditures in the development phase. Research means the original and planned investigation undertaken for the purpose of acquiring and understanding new scientific or technical knowledge. Development means the application of research results or other knowledge to a plan or design for the production of new or substantially improved materials, devices, products, etc., prior to the commencement of commercial production or use.

The expenditures in the research phase of the Company's internal research and development items are included in the current profit and loss when incurred; expenditures in the development phase are recognized as intangible assets only when the following conditions are all satisfied:

(1) It is technically feasible to complete the intangible asset to enable it to be used or sold;

(2) There is intent to complete the intangible asset and use or sell it;

(3) The intangible assets can bring economic benefits;

(4) There are sufficient technical, financial, and other resources to support the development of the intangible assets as well as the ability to use or sell the intangible assets;

(5) Expenditures attributable to the development stage of the intangible asset can be measured in a reliable way. If the above conditions cannot all be satisfied, the expenditures are included in the current profit and loss when incurred.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

23 Impairment of long-term assets

Impairment of long-term equity investments in subsidiaries, associates, and joint ventures, investment properties measured using the cost model, fixed assets, construction in progress, right-of-use assets, intangible assets, and goodwill (excluding inventories, investment properties measured using the fair value model, deferred income tax assets, and financial assets) is determined in accordance with the following methods:

At the balance sheet date, the Company assesses whether there is any indication that an asset may be impaired. If such an indication exists, the Company estimates the recoverable amount and conducts an impairment test. For goodwill arising from business combinations, intangible assets with indefinite useful lives, and intangible assets not yet ready for use, an impairment test is carried out annually regardless of whether there is any indication of impairment

The recoverable amount is determined based on the higher of the fair value of the asset less costs of disposal and the present value of estimated future cash flows. The Company estimates the recoverable amount thereof based on the individual asset. If it is difficult to estimate the recoverable amount of the individual asset, the recoverable amount of the asset is determined based on the cash-generating unit to which the asset belongs. The identification of the cash-generating unit is based on whether the main cash inflows generated by the cash-generating unit are independent of the cash inflows from other assets or cash-generating units.

When the recoverable amount of an asset or cash-generating unit is lower than its carrying amount, the carrying amount is written down to the recoverable amount, and the amount written down is recognized in profit or loss for the current period, while a corresponding provision for asset impairment is made.

For the purpose of goodwill impairment testing, the carrying amount of goodwill arising from a business combination is allocated to the relevant cash-generating units on a reasonable basis; if it is difficult to allocate the goodwill to individual cash-generating units, it is allocated to the related group of cash-generating units. A relevant cash-generating unit or group of cash-generating units refers to the unit or group that benefits from the synergies of the business combination and is not larger than the operating segments determined by the Company.

When conducting impairment tests, if there are indications of impairment in the cash-generating units or groups of cash-generating units related to goodwill, the impairment test is first performed on the cash-generating units or groups of cash-generating units excluding goodwill, calculating the recoverable amount and recognizing the corresponding impairment loss. Then, impairment tests are conducted on the cash-generating units or groups of cash-generating units including goodwill by comparing their carrying amounts with their recoverable amounts. If the recoverable amount is lower than the carrying amount, an impairment loss for goodwill is recognized.

Once an asset impairment loss is recognized, it shall not be reversed in subsequent accounting periods.

24 Long-term deferred expenses

Long-term deferred expenses refer to various expenses that the Company has paid, should be amortized over the current and future periods, and whose period of amortization is more than one year, such as the improvement expenses incurred in renting fixed assets by operating leases. Long-term deferred expenses are amortized on a straight-line basis within the beneficial period of the expense items.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

25 Employee benefits

Employee benefits refer to various forms of remuneration or compensation provided by the Company in exchange for services rendered by employees or for the termination of employment relationships. Employee benefits include short-term employee benefits, post-employment benefits, termination benefits, and other long-term employee benefits. Benefits provided by the Company to the spouses, children, dependents, beneficiaries of deceased employees, and other beneficiaries of employees are also considered employee benefits.

Based on liquidity, employee benefits are presented separately under "Employee compensation payable" and "Long-term employee compensation payable" in the balance sheet.

(a) Accounting treatment for short-term employee benefits

Short-term employee benefits include employee wages or salaries, bonuses, allowances and subsidies, employee services and benefits, premiums or contributions on medical insurance, work injury insurance and maternity insurance, housing funds, union running costs and employee education costs, and shortterm paid absences. During the accounting period when employees provide services, the Company recognizes the actual short-term remuneration as liabilities, and includes it in current profits and losses or related asset costs according to the beneficiaries of the services provided by employees. Non-monetary benefits are measured at their fair value.

(b) Accounting treatment for post-employment benefits

The Company classifies post-employment benefit plans as either defined contribution plans or defined benefit plans. Defined contribution plans are post-employment benefit plans under which the Company pays fixed contributions into a separate fund and will have no obligation to pay further contributions; and defined benefit plans are post-employment benefit plans other than defined contribution plans. During the Reporting Period, the Company’s defined contribution plans mainly include basic pensions and unemployment insurance.

(c) Accounting treatment for termination benefits

If the Company terminates the labor relationship with an employee before the labor contract expires or offers compensation for encouraging the employee to accept the redundancies voluntarily, the liabilities arising from compensation for the termination of labor relations with the employee are determined, and also included in current profits and losses at the time when the Company cannot unilaterally withdraw the termination of the labor relationship plan or redundancies proposal or the time when the cost associated with reorganization involving payment of termination benefits is confirmed, whichever is earlier.

(d) Accounting treatment for other long-term employee benefits

Other long-term employee benefits refer to all employee benefits except short-term employment benefits, post-employment benefits, and termination benefits.

For other long-term employee benefits that meet the conditions of a defined contribution plan, the amount to be contributed shall be recognized as a liability during the accounting period when the employee provides services to the Company, and shall be included in profit or loss for the period or the underlying asset costs. For long-term employee benefits other than those mentioned above, on the balance sheet date, the benefit obligations arising from the defined benefit plan shall be attributed to the periods during which the employee provides services, and shall be included in profit or loss for the period or the underlying asset costs.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

26 Provision

(1) Recognition standards for provision

If an obligation relating to a contingency meets the following conditions simultaneously, the Company recognizes it as a provision:

① The obligation is a present obligation of the Company;

② It is probable that an outflow of economic benefits will be required to settle the obligation;

③ The amount of the obligation can be reliably measured.

(2) Measurement methods for provision

A provision is initially measured at the best estimate of the expenditure required to settle the related present obligation, taking into account factors such as risks, uncertainties, and the time value of money associated with the contingency. The carrying amount of a provision is reviewed at each balance sheet date. Where there is convincing evidence that the carrying amount does not reflect the current best estimate, the carrying amount is adjusted to the current best estimate.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

27 Share-based payments

(1) Types of share-based payments

The Company's share-based payments include cash-settled share-based payments and equitysettled share-based payments.

(2) Method for determining the fair value of equity instruments

① For shares granted to employees, the fair value is measured based on the market price of the Company's shares, adjusted for the terms and conditions upon which the shares were granted (excluding vesting conditions other than market conditions). ② For share options granted to employees, it is often difficult to obtain their market price. If there are no traded options with similar terms and conditions, the Company selects an appropriate option pricing model to estimate the fair value of the options granted.

(3) Basis for determining the best estimate of the number of equity instruments expected to vest

On each balance sheet date during the vesting period, the Company makes the best estimates based on the latest subsequent information, such as changes in the number of employees eligible for vesting, and revises the estimated number of equity instruments expected to vest.

(4) Accounting treatment for the implementation of share-based payment plans

Cash-settled share-based payments

① For cash-settled share-based payments that are vested immediately upon grant, the fair value of the liability assumed by the Company is recognized in the relevant costs or expenses on the grant date, with a corresponding increase in liabilities. The fair value of the liability is remeasured at each balance sheet date prior to settlement and on the settlement date, and changes therein are recognized in profit or loss.

② For cash-settled share-based payments that become exercisable only after the completion of services during the vesting period or the satisfaction of stipulated performance conditions, the services received in the current period are recognized in the relevant costs or expenses and corresponding liabilities at each balance sheet date during the vesting period. This is based on the best estimate of the vesting conditions and the fair value of the liability assumed by the Company.

Equity-settled share-based payments

① For equity-settled share-based payments that vest immediately after grant in exchange for employee services, the fair value of the equity instruments is recognized in the relevant costs or expenses on the grant date, with a corresponding increase in capital reserves.

② For equity-settled share-based payments in exchange for employee services that become vested only after the completion of services during the vesting period or the satisfaction of stipulated performance conditions, the services received in the current period are recognized in the relevant costs or expenses and capital reserves at each balance sheet date during the vesting period. This is based on the best estimate of the number of equity instruments expected to vest and the fair value of the equity instruments on the grant date.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

27 Share-based payments (Continued)

(5) Accounting treatment for modifications to share-based payment plans

When the Company modifies a share-based payment plan, if the modification increases the fair value of the equity instruments granted, the increase in the fair value of the equity instruments is recognized as a corresponding increase in the services received. If the modification increases the number of equity instruments granted, the fair value of the additional equity instruments is recognized as a corresponding increase in the services received. The increase in the fair value of the equity instruments is the difference between the fair value of the equity instruments immediately before and after the modification, measured at the modification date. If the modification reduces the total fair value of the share-based payment or otherwise modifies the terms and conditions of the share-based payment plan in a manner that is unfavourable to the employees, the Company continues to account for the services received as if the modification had not been made, unless the Company cancels part or all of the equity instruments granted.

(6) Accounting treatment for termination of share-based payment plans

If the Company cancels or settles the granted equity instruments during the vesting period (other than those cancelled due to failure to satisfy vesting conditions), the Company:

① Treats the cancellation or settlement as an acceleration of vesting, and immediately recognizes the amount that would otherwise have been recognized over the remaining vesting period;

② Treats any payments made to employees upon cancellation or settlement as a repurchase of equity interests, and recognizes any excess of the repurchase consideration over the fair value of the equity instruments on the repurchase date as an expense in the current period.

If the Company repurchases vested equity instruments from its employees, it reduces the Company's equity. Any excess of the repurchase consideration over the fair value of the equity instruments on the repurchase date is recognized in profit or loss for the current period.

28 Preference shares, perpetual bonds and other financial instruments

In respect of other financial instruments issued by the Company such as preference shares and perpetual bonds, the Company classifies a financial instrument or its components into financial assets, financial liabilities or equity instruments upon initial recognition, based on the contract terms and the economic substance reflected by the financial instrument issued, rather than solely on legal form, in conjunction with the definitions of financial assets, financial liabilities, and equity instruments.

The Company determines the accounting treatment for interest expenses or dividend distributions of a financial instrument based on its classification. For a financial instrument classified as an equity instrument, regardless of whether its name includes "debt", its interest expenses or dividend distributions are treated as profit distributions of the Company (the issuing entity), and its repurchase or cancellation is treated as a change in equity. For a financial instrument classified as a financial liability, regardless of whether its name includes "share", its interest expenses or dividend distributions are treated in principle as borrowing costs, and any gains or losses arising from its repurchase or redemption are recognized in profit or loss for the current period.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

29 Revenue recognition principles and measurement methods

(1) General principles

Revenue represents the gross inflow of economic benefits arising from the ordinary activities of the Company, which results in an increase in shareholders' equity and is distinct from capital contributions from shareholders.

The Company recognizes revenue when it satisfies a performance obligation in the contract, which is when the customer obtains control of the relevant goods or services. "Obtain the control over relevant commodities or services" refers to the ability to completely dominate the use of commodities and obtain almost all economic benefits.

If a contract contains two or more performance obligations, the Company allocates the transaction price to each performance obligation in proportion to the standalone selling price of the goods or services promised under each performance obligation at the contract inception date, and measures revenue based on the transaction price allocated to each performance obligation.

The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for the transfer of goods or services to a customer, excluding amounts collected on behalf of third parties. When determining the transaction price of a contract, if there is variable consideration, the Company determines the best estimate of the variable consideration using either the expected value method or the most likely amount method. The Company includes in the transaction price some or all of an amount of variable consideration only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the related uncertainty is subsequently resolved. If a contract contains a significant financing component, the Company determines the transaction price based on the cash selling price that the customer would have paid when obtaining control of the goods. The difference between the transaction price and the contractual consideration is amortized over the contract period using the effective interest method. If the period between the transfer of control and the customer's payment does not exceed one year, the Company does not consider the financing component in the contract.

If any of the following conditions is met, a performance obligation is satisfied over time; otherwise, it is satisfied at a point in time:

① While fulfilling the due obligation in the Company, the customer obtains and consumes the resulting economic benefit;

② The customer is able to control the commodities under construction during the Company’s fulfillment;

③ Commodities generated from the Company’s fulfillment possess irreplaceable purpose, and the Company has the right to charge all fulfilled performance obligations within the whole contract period.

For performance obligations satisfied over time, the Company recognizes revenue over that period based on the progress towards complete satisfaction of the performance obligation, except when the progress cannot be reasonably determined. The Company determines the progress towards satisfaction of service-related performance obligations using the input method (or the output method). If the fulfillment schedule cannot be reasonably determined and the Company’s costs are predicted to be compensated, corresponding revenue shall be recognized based on the specific cost amount until the fulfillment schedule can be reasonably determined.

For performance obligations satisfied at a point in time, the Company recognizes revenue when the customer obtains control of the relevant goods. When determining whether control has transferred, the Company considers the following indicators:

① The Company has a present right to payment for the goods or services, for which the customer has a present obligation to pay for the goods;

② The Company has transferred legal title of the goods to the customer, for which the customer has legal title to the goods;

③ The Company has transferred physical possession of the goods to the customer, for which the customer has physical possession of the goods;

④ The Company has transferred the significant risks and rewards of ownership of the goods to the customer, for which the customer has assumed the significant risks and rewards of ownership;

⑤ The customer has accepted the goods.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

29 Revenue recognition principles and measurement methods (Continued)

(1) General principles (Continued)

Sales with right of return

For sales involving a right of return, the Company recognizes revenue at the amount of consideration to which it expects to be entitled upon transferring control of the goods to the customer, and recognizes a refund liability for the amount expected to be refunded due to sales returns. Simultaneously, the Company recognizes an asset for the right to recover products, measured at the carrying amount of the goods expected to be returned less the estimated costs to recover them (including any impairment in value). The Company recognizes cost of sales as the carrying amount of the transferred goods less the net cost of the asset recognized above. At each balance sheet date, the Company reassesses its estimates of expected returns and remeasures the corresponding refund liability and asset for the right to recover products accordingly.

Warranty obligations

The Company provides warranties for goods sold and projects constructed in accordance with contractual agreements, legal requirements, and other applicable regulations. For assurance-type warranties, which serve to guarantee that the products meet agreed-upon specifications, the Company accounts for such warranties in accordance with Accounting Standards for Business Enterprises No. 13 – Contingencies. For service-type warranties that provide a service in addition to the assurance that the goods comply with agreed-upon specifications, the Company identifies them as a separate performance obligation. The Company allocates a portion of the transaction price to the service-type warranty based on the relative standalone selling prices of the goods and the warranty service, and recognizes revenue when the customer obtains control of the service. In determining whether a warranty provides a service in addition to the assurance that the goods comply with agreed-upon specifications, the Company considers factors such as whether the warranty is required by law, the length of the warranty period, and the nature of the services to be performed.

Principal versus Agent

The Company determines whether it is a principal or an agent based on whether it controls the goods or services before they are transferred to the customer. If the Company controls the goods or services before they are transferred to the customer, the Company acts as a principal and recognizes revenue at the gross amount of consideration received or receivable. Otherwise, the Company acts as an agent and recognizes revenue at the net amount of any commission or fee to which it expects to be entitled. This net amount is determined either as the total consideration received or receivable less the amounts payable to other relevant parties, or based on a predetermined commission amount or percentage.

Consideration payable to customers

For contracts containing consideration payable to a customer, the Company accounts for such consideration as a reduction of the transaction price unless the payment is in exchange for a distinct good or service received from the customer. The reduction in revenue is recognized at the later of when the related revenue is recognized or when the Company pays (or promises to pay) the consideration.

Customer’s unexercised rights

Advance payments received from customers for the sale of goods or services are initially recognized as contract liabilities and subsequently recognized as revenue when the related performance obligations are satisfied. When advance payments received by the Company are non-refundable and customers may forfeit all or part of their contractual rights, if the Company expects to be entitled to the amount relating to those forfeited rights, it shall recognize that amount as revenue in proportion to the pattern of rights exercised by the customer. Otherwise, the Company recognizes the related balance of the liability as revenue only when the likelihood of the customer exercising its remaining rights is remote.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

29 Revenue recognition principles and measurement methods (Continued)

(1) General principles (Continued)

Contract modifications

When a construction contract with a customer is modified:

① If the contract modification adds distinct construction services and increases the contract consideration, and the additional consideration reflects the standalone selling price of the added construction services, the Company accounts for the modification as a separate contract;

② If the contract modification does not fall under the circumstances described in ① above, and the construction services already transferred and those to be transferred are distinct as of the modification date, the Company treats it as a termination of the original contract and combines remaining uncompleted portion of the original contract with the modification portion to account for them as a new contract;

③ If the contract modification does not fall under the circumstances described in ① above, and the construction services already transferred and those to be transferred are not distinct as of the modification date, the Company accounts for the modification as a part of the existing contract. The resulting impact on recognized revenue is recorded as an adjustment to revenue in the current period.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

29 Revenue recognition principles and measurement methods (Continued)

(2) Specific methods

Revenue from product sales

According to the contract terms, for the selling of products subject to performance obligation fulfillment conditions at a time point and other products, the Company shall recognize the realization of sales revenues when the customer obtains control over relevant commodities or services according to the delivery condition agreed in the sales contract upon signing by the customer after commodities are received.

Revenue from technical services

If revenues are recognized within a certain period based on the technical service contract, corresponding revenues shall be recognized according to the performance schedule.

Royalty income

Accounted for according to the time and method of charging as stipulated in the relevant contract or agreement.

Revenue from photovoltaic power stations

Centralized power stations: Power stations are connected to the power grid. Revenue is recognized based on power supply documentation provided by the Company’s business departments, upon meeting the continuous and fault-free operation period stipulated by the power grid company.

Distributed power stations: These stations are connected to the grid. Revenue is recognized based on settlement documents provided by the Company’s business departments.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

30 Public grants

(1) Types of public grants

Public grants are transfers of monetary or non-monetary assets from the public to the Group at nil consideration. According to the grant targets stipulated in the relevant public documents, public grants are classified into public grants related to assets and public grants related to income.

(2) Recognition of public grants

If a public grant is a monetary asset, it is measured at the amount received or receivable. If a public grant is a non-monetary asset, it is measured at fair value. If the fair value cannot be obtained in a reliable way, there are measured at the nominal amount (RMB 1). Public grants measured at nominal amounts are recognized directly in the current profits and losses.

(3) Accounting treatment for public grants

Public grants related to assets offset the carrying amount of the underlying assets.

If the public grants related to income are used to compensate related costs or losses in the subsequent period, they are recognized as deferred income and included in the current profit and loss or offset costs in the period in which the related costs or losses are recognized; public grants used to compensate costs or losses incurred by the enterprise shall be directly included in current profits and losses or offset related costs. For public grants related to the day-to-day activities of the enterprise, the R&D and VAT-related subsidies and the taxation, or operation-based incentive public subsidies are included in other income; other public grants are written off against related costs based on the substance of economic activities. Public grants not related to daily activities of the Company are included in the non-operating income and expenditure. For preferential loans for policy discounts, if the public finance department appropriates the discounted funds to the lending bank, the borrowing cost is accounted for according to the principal of the loan and the policy preferential interest rate, with the amount actually received as the entry value of the loan. If the public finance department directly appropriates the interest grant funds to the Company, the grants shall offset the related borrowing costs.

In case a recognized public grant is required to be returned, the carrying amount of the asset is adjusted if the carrying amount of relevant assets is offset at the initial recognition; if there is related deferred income, the book balance of deferred income is offset, and the excess is included in the current profit and loss; and in case of other circumstances, it is directly included in current profits and losses.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

31 Deferred income tax assets and deferred income tax liabilities

Deferred income tax assets and deferred income tax liabilities are recognized and measured for the income tax effects of taxable temporary differences or deductible temporary differences, using the balance sheet liability method, based on the temporary differences between the carrying amounts of assets and liabilities and their tax bases at the balance sheet date. Deferred income tax assets and deferred tax liabilities are not discounted.

(1) Recognition of deferred income tax assets

Deferred income tax assets are recognized for the income tax effects of deductible temporary differences, unused tax losses, and tax credits carried forward, measured at the tax rates expected to apply in the periods in which the temporary differences are expected to reverse, but only to the extent that it is probable that future taxable profits will be available against which the deductible losses, unused tax losses, and tax credits can be utilized.

Deferred tax assets are not recognized for the income tax effects of deductible temporary differences arising from the initial recognition of an asset or liability in a transaction or event that simultaneously meets the following criteria:

A. The transaction is not a business combination;

B. At the time of the transaction, it affects neither accounting profit nor taxable profit (or deductible losses).

However, the initial recognition exemption does not apply to single transactions that simultaneously meet the above two conditions and where the initial recognition of assets and liabilities gives rise to equal taxable and deductible temporary differences. For taxable and deductible temporary differences arising from the initial recognition of assets and liabilities in such transactions, the Company recognizes the corresponding deferred tax liabilities and deferred income tax assets, respectively, at the time the transaction occurs.

Deferred tax assets are recognized for deductible temporary differences related to investments in subsidiaries, associates, and joint ventures only when both of the following conditions are met:

① It is probable that the temporary differences will reverse in the foreseeable future; and

② It is probable that sufficient taxable profits will be available against which the deductible temporary differences can be utilized;

At the balance sheet date, the Company reassesses unrecognized deferred income tax assets and recognizes such assets to the extent that it has become probable that future taxable profit will be available to utilize the deductible temporary differences.

At the balance sheet date, the carrying amount of deferred tax assets is reviewed. Deferred income tax assets are reduced to the extent that it is no longer probable that sufficient taxable profits will be available to reduce the carrying amount of the deferred income tax assets. Any such reduction is reversed when it becomes probable that sufficient taxable profits will be available.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

31 Deferred income tax assets and deferred income tax liabilities (Continued)

(2) Recognition of deferred income tax liabilities

All taxable temporary differences of the Company are measured at the tax rates expected to apply in the periods in which the temporary differences are expected to reverse, and the related income tax effects are recognized as deferred tax liabilities, except in the following cases:

①Deferred tax liabilities are not recognized for taxable temporary differences arising from the following transactions or events:

A. Initial recognition of goodwill;

B. The initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, does not affect accounting profit or taxable profit (or deductible losses).

② Deferred tax liabilities are generally recognized for taxable temporary differences related to investments in subsidiaries, joint ventures, and associates, except when both of the following conditions are met:

A. The Company can control the timing of the reversal of the temporary differences; B. It is probable that the temporary differences will not reverse in the foreseeable future.

(3) Recognition of deferred tax assets and deferred tax liabilities for specific transactions or events

① deferred income tax assets and deferred tax liabilities related to business combinations For taxable and deductible temporary differences arising from business combinations not under common control, the corresponding deferred income tax expense (or income) typically adjusts the goodwill recognized in the business combination.

② Items directly recognized in owners' equity

Current and deferred taxes related to transactions or events that are directly recognized in equity are also recognized in owners' equity. Transactions or events for which the income tax effects of temporary differences are recognized in owners' equity include: other comprehensive income arising from changes in fair value of other debt investments; adjustments to the opening balance of retained earnings resulting from the retrospective application of a change in accounting policy or the retrospective restatement to correct a (material) prior period error; the initial recognition of compound financial instruments containing both liability and equity components.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

31 Deferred income tax assets and deferred income tax liabilities (Continued)

Recognition of deferred income tax assets and deferred tax liabilities for specific transactions or (3) events (Continued)

③ Unused tax losses and tax credits carried forward

A. Unused tax losses and tax credits arising from the Company’s own operations

Deductible losses refer to losses determined in accordance with tax laws that are allowed to be utilized against taxable profits in future periods. Deductible losses and tax credits carried forward in accordance with tax regulations are treated as deductible temporary differences. Deferred tax assets are recognized to the extent that it is probable that sufficient taxable profits will be available in future periods against which the unused tax losses or tax credits can be utilized, with a corresponding reduction in current income tax expense.

B. Unused tax losses of the acquiree arising from business combinations

In a business combination, the acquiree's deductible temporary differences acquired from the acquiree are not recognized as deferred tax assets at the acquisition date if they do not meet the recognition criteria. If, within 12 months after the acquisition date, new or further information is obtained indicating that facts and circumstances existed at the acquisition date, and it is expected that the economic benefits of the acquiree's deductible temporary differences at the acquisition date will be realized, the related deferred income tax assets are recognized with a corresponding reduction to goodwill. If the carrying amount of goodwill is reduced to zero, any remaining amount is recognized in profit or loss for the current period. In all other cases, deferred income tax assets recognized in connection with a business combination are recognized in profit or loss for the current period.

④ Temporary differences arising from consolidation eliminations

In preparing the consolidated financial statements, temporary differences arising from the elimination of unrealized gains or losses on intra-group transactions, which result in differences between the carrying amounts of assets and liabilities in the consolidated balance sheet and their tax bases in the respective taxable entities, are recognized as deferred tax assets or deferred tax liabilities in the consolidated balance sheet, with a corresponding adjustment to income tax expense in the consolidated income statement, except for deferred taxes related to transactions or events recognized directly in equity or arising from business combinations.

⑤ Equity-settled share-based payments

If tax laws permit tax deductions for expenses related to share-based payments, during the period in which the costs or expenses are recognized in accordance with accounting standards, the Company determines the tax base and the resulting temporary differences based on the estimated deductible amount using information available at the end of the reporting period. Related deferred tax is recognized if the recognition criteria are met. To the extent that the estimated deductible amount in future periods exceeds the cost or expense recognized for share-based payments under accounting standards, the income tax effects of the excess are recognized directly in owner's equity.

(4) The basis for presenting deferred income tax assets and deferred tax liabilities on a net basis

Deferred income tax assets and liabilities of the Company are presented on a net basis after the following conditions are met:

① The Company has the legal right to settle current income tax assets and liabilities on a net basis;

② Deferred income tax assets and liabilities relate to income taxes levied by the same taxing authority on either the same taxable entity or different taxable entities that intend to either settle current tax assets and liabilities on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax assets or liabilities are reversed.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

32 Leases

(1) Identification of leases

At the commencement date of a contract, the Company assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if one party transfers the right to control the use of one or more identified assets for a period of time in exchange for consideration. To determine whether the contract transfers the right to control the use of an identified asset for a period of time, the company assesses whether the customer has the right to obtain substantially all of the economic benefits from the use of the identified asset during the period and the right to direct the use of the identified asset throughout the period.

(2) Identification of separate leases

If a contract contains multiple single leases at the same time, the Company will split the contract, and conduct accounting treatment of each single lease respectively. The right to use an identified asset constitutes a separate lease if both of the following conditions are met: ① the lessee can benefit from the use of the underlying asset either on its own or together with readily available resources; and ② the underlying asset is not highly dependent on or highly interrelated with other assets in the contract

(3) Accounting treatment with the Company as lessee

At the commencement date, the Company classifies leases with a lease term of 12 months or less and without a purchase option as short-term leases; leases of individual underlying assets that are new and have a value below RMB 40,000 when the new underlying assets are classified as leases of low-value assets. If the Company subleases or expects to sublease an underlying asset, the head lease does not qualify as a lease of a low-value asset.

For all short-term leases and leases of low-value assets, the Company recognizes lease payments over the lease term on a straight-line basis or using another systematic and rational method, allocating them to the cost of the related asset or to current profit or loss.

Except for the short-term leases and leases of low-value assets for which the simplified approach is applied, the Company recognizes a right-of-use asset and a lease liability at the commencement date of the lease.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

32 Leases (Continued)

(3) Accounting treatment with the Company as lessee (Continued)

① Right-of-use assets

Right-of-use assets refer to the lessee’s right to use the leased assets over the lease term.

At the commencement date of the lease, right-of-use assets are initially measured at cost. The cost comprises:

A. The initial measurement amount of lease liabilities;

B. Lease payments made on or before the commencement date of the lease term (if a lease incentive exists, net of the amount related to the lease incentive already taken);

C. Initial direct costs incurred by the lessee;

D. Costs expected to be incurred by the lessee to disassemble and remove the leased asset(s), restore the premises where the leased asset(s) is/are located, or restore the leased asset(s) to the condition agreed upon under the terms of the lease. The Company recognizes and measures these costs in accordance with the recognition and measurement criteria for provisions, as detailed in Note III. 26. The above costs incurred for the production of inventories are included in the cost of inventories.

Right-of-use assets are depreciated on a straight-line basis over their useful lives by category. For leases in which it is reasonably certain that ownership of the underlying asset will transfer to the lessee at the end of the lease term, depreciation is recognized over the estimated remaining useful life of the underlying asset, based on the category of the right-of-use asset and its estimated net residual value. For leases in which it is not reasonably certain that ownership of the underlying asset will transfer to the lessee at the end of the lease term, depreciation is recognized over the shorter of the lease term and the estimated remaining useful life of the underlying asset, based on the category of the right-of-use asset.

② Lease liabilities

Lease liabilities are initially measured at the present value of the lease payments that are not paid at the commencement date of the lease. Lease payments comprise the following five components: A. Fixed payments, including in-substance fixed payments, less any lease incentives receivable;

B. Variable lease payments that depend on indexation or ratio;

C. The exercise price of a purchase option, if the lessee is reasonably certain to exercise that option;

D. Amounts expected to be payable under a termination option, if the lease term reflects that the lessee is reasonably certain to exercise that option;

E. The estimated amount payable is based on the secured residual value provided by the lessee.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

32 Leases (Continued)

(3) Accounting treatment with the Company as lessee (Continued)

The present value of lease payments is discounted using the interest rate implicit in the lease. If the interest rate implicit in the lease cannot be readily determined, the Company uses its incremental borrowing rate as the discount rate. The difference between the lease payments and their present value is recognized as unrecognized finance charges. Interest expense is recognized in current profits and losses over the lease term using the discount rate used to measure the present value of lease payments. Variable lease payments not included in the measurement of lease liabilities are recognized in current profits and losses. when incurred.

After the commencement date, if there are changes in in-substance fixed payments, expected amounts payable under residual value guarantees, indices or rates used to determine lease payments, or changes in the assessment or exercise of purchase, extension, or termination options, the Company remeasures the lease liability based on the present value of the revised lease payments and adjusts the carrying amount of the right-of-use asset accordingly.

(4) Accounting treatment with the Company as lessor

At the commencement date of the lease, leases that transfer substantially all the risks and rewards incidental to ownership of the leased asset are classified as finance leases by the Company, with all other leases classified as operating leases.

① Operating leases

For each period of the lease term, the Company adopts the straight-line method to recognize the lease receipts of the operating lease as rental income; the Company capitalizes the initial direct expenses, amortizes them over the lease term on the same basis as that for the recognition of the rental income, and includes them in current profits and losses. by stage. Variable lease payments relating to operating leases that are not included in lease receivables are recognized in current profits and losses when received.

② Finance lease

At the commencement date of the lease, the Company recognizes finance lease receivables at the net investment in the lease, which is the sum of the present value of lease payments not yet received at the commencement date and any unguaranteed residual value, discounted using the interest rate implicit in the lease, and derecognizes the leased asset. Over the lease term, the Company calculates and recognizes interest income based on the interest rate implicit in the lease.

Variable lease payments not included in the measurement of the net investment in the lease are recognized in current profits and losses when received.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

32 Leases (Continued)

(5) Accounting treatment for lease modifications

① Lease modification treated as a separate lease

If a lease is modified and both of the following conditions are met, the Company accounts for the modification as a separate lease: A. The modification increases the scope of the lease by adding the right to use one or more additional assets; B. The increase in consideration is commensurate with the stand-alone price for the increase in scope, adjusted for the terms of the contract.

② Lease modification not treated as a separate lease

A. The Company acting as a lessee

On the effective date of the modification, the Company determines the lease term of the modified lease and remeasures the lease liability by discounting the revised lease payments using a revised discount rate. The present value of the modified lease payments is discounted using the interest rate implicit in the lease for the remaining lease term. If the interest rate implicit in the lease for the remaining term cannot be determined, the Company uses its incremental borrowing rate at the effective date of the modification.

The effect of the above lease liability adjustment is accounted for as follows:

If the lease modification decreases the scope of the lease or shortens the lease term, the carrying amount of the right-of-use asset is reduced, and any gain or loss arising from partial or full termination of the lease is recognized in profit or loss.

For other lease modifications, the carrying amount of the right-of-use asset is adjusted accordingly.

B. The Company acting as a lessor

For modifications of operating leases, the Company accounts for the lease as a new lease from the effective date of the modification. Any lease payments received or receivable related to the original lease are treated as payments under the new lease.

For modifications of finance leases not treated as separate leases, the Company accounts for the modified lease as follows: If the lease would have been classified as an operating lease had the modification been in effect at the lease commencement date, the Company treats it as a new lease from the effective date of the modification and uses the net investment in the lease immediately before the modification as the carrying amount of the underlying asset. If the lease would have been classified as a finance lease had the modification been in effect at the lease commencement date, the Company accounts for it in accordance with the accounting policies for lease modifications or renegotiated contracts.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

32 Leases (Continued)

(6) Sale and leaseback

The Company assesses whether the transfer of an asset in a sale and leaseback transaction qualifies as a sale in accordance with Note III. 29.

①The Company as seller (lessee)

If the transfer of the asset in a sale and leaseback transaction does not qualify as a sale, the Company will continue to recognize the transferred asset and recognizes a financial liability equal to the transfer proceeds. The financial liability is accounted for in accordance with Note III. 11. If the asset transfer is a sale, the Company will measure the right-of-use assets formed by the sale and leaseback based on the portion of the original asset’s carrying amount that is related to the use right acquired by the leaseback, and recognize related gains or losses only for the right transferred to the lessor.

② The Company as buyer (lessor)

If the transfer of the asset in a sale and leaseback transaction does not qualify as a sale, the Company will not recognize the transferred asset but recognizes a financial asset equal to the transfer proceeds. The financial asset is accounted for in accordance with Note III. 11. If the transfer of the asset qualifies as a sale, the company accounts for the purchase of the asset in accordance with other applicable accounting standards and accounts for the lease of the asset.

33 Related parties

If one party controls, commonly controls or exerts a significant influence on the other party, and two or more parties are under the control, common control or significant influence of the other party, they constitute related parties. Enterprises that are solely controlled by the state and do not have any other related party relationship shall not be deemed as related parties.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

34 Hedge Accounting

(1) Classification of hedges

The Company classifies hedges into fair value hedges, cash flow hedges, and hedges of net investments in foreign operations.

① A fair value hedge is a hedge of the exposure to changes in the fair value of a recognized asset or liability, an unrecognized firm commitment, or an identified component of such items. The change in fair value arises is attributable to a specific risk and will affect the Company’s profit or loss or other comprehensive income.

② A cash flow hedge is a hedge of the exposure to variability in cash flows. The variability in cash flows is attributable to a specific risk associated with a recognized asset or liability, a highly probable forecast transaction, or a component of such items, and will affect the Company’s profit or loss.

③ A hedge of a net investment in a foreign operation is a hedge of the foreign exchange exposure arising from a net investment in a foreign operation. The hedged risk in a hedge of a net investment in a foreign operation is the foreign currency translation difference between the functional currency of the foreign operation and that of the parent company.

(2) Hedging instruments and hedged items

Hedging instruments are financial instruments designated by the Company for hedging, whose changes in fair value or cash flows are expected to offset changes in the fair value or cash flows of the hedged items, including:

① Derivatives measured at fair value through profit or loss, except written options. Written options can only be designated as hedging instruments when hedging purchased options, including purchased options embedded in a hybrid contract. A derivative embedded in a hybrid contract that has not been separated cannot be designated as a separate hedging instrument.

② Non-derivative financial assets or financial liabilities measured at fair value through profit or loss, except for liabilities designated at fair value through profit or loss whose fair value changes due to changes in the Company’s own credit risk are recognized in other comprehensive income.

Own equity instruments are neither financial assets nor financial liabilities and cannot be designated as hedging instruments.

Hedged items are items that expose the Company to changes in fair value or cash flows, which are designated as being hedged and can be reliably measured. The Company designates the following individual items, groups of items, or portions thereof as hedged items:

① Recognized assets or liabilities.

② Unrecognized firm commitments. A firm commitment is a legally binding agreement to exchange a specified quantity of resources at a predetermined price on a future date or over a future period.

③ Highly probable forecast transactions. A forecast transaction is a transaction that has not yet been committed to but is expected to occur.

④ Net investments in foreign operations.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

34 Hedge Accounting (Continued)

(2) Hedging instruments and hedged items (Continued)

A component of the above items refers to parts smaller than the overall changes in fair value or cash flows of the item. The Company designates the following components or combinations thereof as hedged items:

① A component of the overall changes in fair value or cash flows of an item that is only attributable to one or more specific risks (risk components). Based on an assessment in a specific market environment, such risk components must be separately identifiable and reliably measurable. Risk components also include components of the hedged item’s fair value or cash flow changes that occur only above or below a specified price or other variable.

② One or more selected contractual cash flows.

③ A component of the nominal amount of an item refers to specified parts of the overall amount or quantity of the item, which may be a certain proportion of the overall item (a proportionate component) or a specified layer of the overall item (a layer component). If a layer component includes a prepayment option and the fair value of the prepayment option is affected by changes in the hedged risk, the layer must not be designated as a hedged item in a fair value hedge, except where the effect of the prepayment option is already included in the measurement of the hedged item’s fair value.

(3) Hedge relationship assessment

At the inception of a hedge relationship, the Company formally designates the hedge relationship and prepares formal written documentation of the hedge relationship, risk management objectives, how the Company will assess whether the hedging relationship meets the hedge effectiveness requirements. The documentation specifies the hedging instrument, the hedged item, the nature of the hedged risk, and the Company’s method for assessing hedge effectiveness. Hedge effectiveness refers to the extent to which changes in the fair value or cash flows of the hedging instrument offset changes in the fair value or cash flows of the hedged item arising from the hedged risk. Such hedges are assessed on an ongoing basis to determine whether they continue to meet the hedge effectiveness requirements at the initial designation date and in subsequent periods.

If the hedging instrument expires or is sold, terminated or exercised (unless the rollover or replacement of the hedging instrument is part of the documented hedging strategy), or if changes in risk management objectives result in the hedge relationship no longer meeting the risk management objectives, or if the economic relationship between the hedged item and the hedging instrument ceases to exist, or if credit risk becomes the dominant factor in changes in the value of the economic relationship between the hedged item and the hedging instrument, or if the hedge no longer meets other conditions for hedge accounting, the Company discontinues the use of hedge accounting.

If a hedge relationship no longer meets hedge effectiveness requirements due to the hedge ratio, but the risk management objectives for which the hedge was designated remain unchanged, the Company rebalances the hedge relationship.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

34 Hedge Accounting (Continued)

(4) Recognition and measurement

When the conditions for applying hedge accounting are met, the following treatments are applied:

① Fair value hedge

Gain or loss on the hedging instrument shall be recognized in current profits and losses. If the hedging instrument hedges a non-trading equity instrument (or a component thereof) that the Company has designated to be measured at fair value through other comprehensive income, the hedging gain or loss generated by the hedging instrument shall be recognized in other comprehensive income. Gain or loss generated by the hedged item due to the hedged risk exposure shall be recognized in profit or loss and shall adjust the carrying amount of the recognized hedged item that is not measured at fair value. If the hedged item is a non-trading equity instrument (or a component thereof) designated at fair value through other comprehensive income, gains or losses arising from the hedged risk shall be recognized in other comprehensive income. Since the carrying amount of the hedged item is already measured at fair value, no adjustment is required.

For a fair value hedge of a financial instrument (or a component thereof) measured at amortized cost, adjustments to the carrying amount of the hedged item shall be amortized using the effective interest rate recalculated at the commencement date of amortization and recognized in current profits and losses. This amortization can commence from the adjustment date, but not later than the time when the hedging gain or loss adjustment is made for the termination of the hedged item. If the hedged item is a financial asset (or a component thereof) measured at fair value through other comprehensive income, the cumulative recognized hedging gain or loss shall be amortized in the same manner and recognized in the profit or loss, but the carrying amount of the financial asset (or a component thereof) shall not be adjusted.

When a hedged item represents a defined commitment that has not been unrecognized (or a component thereof), the cumulative change in the fair value of the hedged item subsequent to its designation caused by the hedge relationship is recognized as an asset or a liability with a gain or loss recognized in current profits and losses. When a defined commitment is made to acquire an asset or assume a liability, the initial carrying amount of the asset or the liability should be adjusted to include the cumulative change in the fair value of the hedged item that has been recognized.

② Cash flow hedges

The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge shall be recognized in other comprehensive income as a cash flow hedge reserve, while the portion is determined to be an ineffective hedge (i.e., other gain or loss after deducting that recognized in other comprehensive income) shall be recognized in current profits and losses. The amount of cash flow hedging reserves shall be determined based on the lower of the absolute amount of the following two items: ① The cumulative gain or loss on the hedging instrument since the commencement of the hedge. ② The cumulative change in the present value of expected future cash flows of the hedged item since the commencement of the hedge.

If a hedged forecast transaction subsequently results in the recognition of a non-financial asset or nonfinancial liability, or a hedged forecast transaction for a non-financial asset or non-financial liability becomes a defined commitment for which fair value hedge accounting is applied, the amount previously recognized in the cash flow hedge reserve in other comprehensive income shall be reclassified and included in the initial cost of the asset or liability. For cash flow hedges other than those covered above, the amount in the cash flow hedge reserve previously recognized in other comprehensive income shall be reclassified to profit or loss in the same period or in the period in which the hedged expected future cash flows affect profit or loss.

③ Hedges of a net investment in a foreign operation

For hedges of a net investment in a foreign operation, the portion of the gain or loss on the hedging instrument that is determined to be an effective hedge shall be recognized in other comprehensive income. The portion of the gain or loss on the hedging instrument that is determined to be an ineffective hedge shall be recognized in current profits and losses. Upon disposal of all or part of the foreign operation, the gain or loss on the hedging instrument recognized in other comprehensive income shall be reclassified and

TCL Technology Group Corporation

Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

recognized in current profits and losses.

III Significant accounting policies and accounting estimates (Continued)

35 Significant accounting judgments and accounting estimates

The Company continuously evaluates the significant accounting estimates and key assumptions used, based on historical experience and other factors, including reasonable expectations of future events. The significant accounting estimates and key assumptions that could result in a material adjustment to the carrying amounts of assets and liabilities in the next financial year are as follows:

Measurement of expected credit losses on accounts receivable

The Company measures expected credit losses on accounts receivable based on the exposure at default and the expected loss rate, the latter of which is determined based on the probability of default and loss given default. In determining the expected loss rate, the Company uses internal historical credit loss experience and other data, adjusted for current conditions and forwardlooking information. When considering forward-looking information, the Company takes into account indicators such as the risk of economic downturn, changes in external market conditions, technological environment, and customer circumstances. The Company regularly monitors and reviews the assumptions related to the calculation of expected credit losses.

Provision for depreciation of inventories

Provision for depreciation of inventories is recognized based on the estimated net realizable value of inventories. The assessment of this provision involves management judgment and estimation. If actual circumstances or future expectations differ from the original estimates, the resulting difference will affect the carrying amount of the inventories and the reversal/write-off of the provision in the period in which the estimate is revised.

Development expenditures

When determining the amount to be capitalized, management must make assumptions regarding the generation of future cash flows to be generated by the asset, the discount rate adopted, and the expected useful life.

Goodwill impairment

The Company assesses goodwill for impairment at least annually. This requires an estimation of the value in use of the cash-generating units to which goodwill has been allocated. In estimating the value in use, the Company estimates the future cash flows derived from the cash-generating units and discounts them using an appropriate discount rate to calculate the present value of those cash flows.

Deferred income tax assets

Deferred income tax assets are recognized for all unused tax losses to the extent that it is probable that sufficient taxable profits will be available to utilize those losses. This requires significant management judgment to estimate the timing and amount of future taxable profits, combined with tax planning strategies, to determine the amount of deferred tax assets to be recognized.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

III Significant accounting policies and accounting estimates (Continued)

36 Changes to major accounting policies and estimates

(1) Change in accounting policies

(a) Impact of Adopting Interpretation No. 19 on Accounting Standards for Business Enterprises

On December 5, 2025, the Ministry of Finance (MOF) issued Interpretation No. 19 on Accounting Standards for Business Enterprises (Caikuai [2025] No. 32, "Interpretation No. 19"), which took effect on January 1, 2026. The Company adopted Interpretation No. 19 effective January 1, 2026. The adoption of this interpretation had no material impact on the Company's financial statements for the Reporting Period.

(b) Impact of Adopting Interpretation No. 20 on Accounting Standards for Business Enterprises

On June 4, 2026, the MOF issued Interpretation No. 20 on Accounting Standards for Business Enterprises (Caikuai [2026] No. 7, "Interpretation No. 20"), which took effect upon issuance. For new transactions or events specified in this Interpretation occurring between January 1, 2026 and the effective date of Interpretation No. 20, enterprises shall make adjustments in accordance with this Interpretation. The Company adopted Interpretation No. 20 on June 4, 2026 (the "Effective Date"), and made retrospective adjustments for new relevant transactions or events occurring between January 1, 2026 and the Effective Date. The adoption of this interpretation had no material impact on the Company's financial statements for the Reporting Period.

(2) Changes to accounting estimates

The Company had no significant change in accounting estimates during the Reporting Period.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

IV Taxes

1 Value-added tax

In the Reporting Period, output tax was calculated at 3%, 5%, 6%, 9%, or 13% of the taxable income of general taxpayers, and the value-added-tax was paid based on the difference after deducting the allowance deduction of input tax in the current period. The value added-tax payment for the Company’s directly exported goods is executed in accordance with the regulations of "Exemption, Offset and Refund". The tax refund rate is 0%-13% during the reporting period.

2 Urban maintenance and construction tax

Subject to the relevant tax laws and regulations of the state and local regulations, urban maintenance and construction tax is paid based on the proportion stipulated by the state according to the individual circumstances of each member of the Company.

Education surcharges

Education surcharges are paid according to the individual circumstances of each member of the Company based on the proportion stipulated by the state in accordance with the relevant national tax regulations and local regulations.

Property tax

Property tax is paid on the houses with property rights according to the proportion stipulated by the state in accordance with the relevant national tax regulations and local regulations.

5 Corporate income tax

According to Article 28 of the Enterprise Income Tax Law of the People's Republic of China, a reduced corporate income tax rate of 15% is applied to important high-tech enterprises requiring state supports.

According to the relevant provisions of the Announcement on the Preferential Income Tax Policies for Small and Micro Enterprises and Self-employed Businesses (Announcement No. 6 [2023] of the Ministry of Finance and the State Taxation Administration) and the Announcement of the Ministry of Finance and the State Taxation Administration on Tax Policies for Further Supporting the Development of Small and Micro Enterprises and Self-employed Businesses (Announcement No. 12 [2023] of the Ministry of Finance and the State Taxation Administration), issued by the Ministry of Finance and the State Taxation Administration in 2023, from January 1, 2023 to December 31, 2027, the annual taxable income of small and lowprofit enterprises not exceeding RMB 1 million will be included in the taxable income at a reduced rate of 25%, and the enterprise income tax will be paid at the rate of 20%.

Except for the following subsidiaries entitling to preferential tax treatment and the overseas subsidies that adopt local applicable tax rate, other entities under the Company are subject to the applicable tax rate of 25%, or the preferential tax rate for small and micro enterprises.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

IV Taxes (Continued)

5 Corporate income tax (Continued)

Subsidiaries entitled to tax preferences:

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

Shenzhen Zhixian Shijie Software Technology Co., _Tax-exempt Ltd.

reduction" and the Western China Development Initiative

The "two-year exemption and three-year 50% reduction" policy for software enterprises

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

IV Taxes (Continued)

5 Corporate income tax (Continued)

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

V Notes to Consolidated Financial Statements

1 Monetary assets

As at June 30, 2026, the Company’s bank deposits of RMB 296,012,000 (December 31, 2025: RMB 361,827,000) were statutory deposit reserves deposited with the Central Bank by TCL Technology Group Finance Co., Ltd., a subsidiary of the Company.

As at June 30, 2026, the Company’s monetary assets offshore amounted to RMB 3,044,649,000 (December 31, 2025: RMB 2,710,168,000), all of which were owned by the overseas subsidiaries of the Company.

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

V Notes to Consolidated Financial Statements (Continued)

2 Held-for-trading financial assets

TCL Technology Group Corporation

Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

V Notes to Consolidated Financial Statements (Continued)

4 Notes receivable (Continued)

(2) Presentation of bad-debt allowance for notes receivable by category

(3) As at June 30, 2026, notes receivable in pledge were RMB 100,000.

5 Accounts receivable

TCL Technology Group Corporation Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

V Notes to Consolidated Financial Statements (Continued)

5 Accounts receivable (Continued)

Accounts receivable classified by loss allowance provision method as at June 30, 2026 are as (1) follows:

(2) Aging analysis of accounts receivable is as follows:

TCL Technology Group Corporation

Notes to the Financial Statements for the Period from January 1 to June 30, 2026 (RMB’000)

V Notes to Consolidated Financial Statements (Continued)

5 Accounts receivable (Continued)

(3) Bad-debt allowances for accounts receivable are analyzed as follows:

(4) As at June 30, 2026, the accounts receivable and contract assets of the top five balances are as follows:

Total amount of the accounts receivable and contract assets of the 8,728,650 top five balances

As a percentage of the total amount of accounts receivable and 42.89% contract assets

(5) Accounts receivable derecognized due to transfer of financial assets