TCL CSOT maintained a basic balance between supply and demand within the industry for its display business and seized new business opportunities brought by the trend towards larger-sized products and the expansion of AI applications for continuing to optimize its development strategy, business and product structure, enhancing its relative competitiveness and actively improving its global layout. For display business, the Company achieved an annual operating revenue of RMB 104.3 billion and a net profit of RMB 6.23 billion, showing significant year-on-year improvement. The competitiveness of LCD product business achieved a leading position, with the market share of TV products firmly ranked in top two globally, and that of commercial display products ranked in the top three worldwide. The Company acquired LGD's LCD panel and module factory in Guangzhou, thus further strengthening its competitiveness in the LCD industry. The small and medium-sized display business grew rapidly, with market share in monitors rising to the second globally, and that in gaming monitors and LTPS laptops and tablets ranked first worldwide. The competitiveness of flexible OLED business was enhanced, with optimized product structure and significant improvements in performance. The Company will strive to enhance its competitiveness in the NB, vehicle-mounted devices, and specialized display businesses, and actively design the layout of MLED. This year, the Company is confident in maintaining the rapid growth in its display business, and further improving operational benefits.

Global installation of new energy photovoltaic devices continues to grow, but competition across all segments of the Chinese industrial chain has intensified, with a mismatch between supply and demand at the market and leading to losses across the entire industry. TZE's photovoltaic business is impacted by the downturn in the industry cycle, coupled with deviations in its own operational strategy, shortcomings in its business structure and some errors in making decisions on business operation, resulting in a deterioration of business operation performance. During the reporting period, the Company achieved an operating revenue of RMB 28.4 billion at a year-on-year decline by 52%; and the net profit attributable to shareholders was RMB -9.82 billion. The Company is striving to transform its business philosophy, optimize its organizational processes, advance business transformation and reshape its core competencies. In the first quarter of 2025, TZE’s operating performance showed sequential improvement and the Company is confident in achieving its growth targets for the year.

During the reporting period, Zhonghuan Advanced achieved a 30% revenue growth while expanding its market share. The Company remains committed to strengthening its competitive edge in the global silicon materials industry. The Company sustained robust operations and made steady progress in other business segments.

In 2024, the Company invested RMB 8.87 billion in R&D, accounting for 5.4% of the operating revenue. TCL CSOT, focusing on the research in new display technology and materials, achieved breakthroughs in printed OLED technology, materials and equipment. Leveraging the opportunities presented by industrial technology upgrading, TZE has established a new BC cooperation ecosystem by commercializing intellectual property and patents. During the Reporting Period, the Company filed 433 new PCT patent applications and 2,582 new invention patent applications.

The adjustment in the global economic and trade landscape has significantly impacted business operations. While the effects on display businesses and other silicon materials businesses are expected to remain largely manageable, the new energy photovoltaic sector is likely to face more substantial challenges. The Company is adjusting its global industrial layout, strengthening core capabilities to tackle challenges.

Looking ahead, the Company aims to achieve global leadership by pursuing a strategy of innovation-driven development in advanced manufacturing, and worldwide operations. By focusing on core businesses and enhancing relative competitiveness, we will embark on the voyage and press ahead against all odds.

The Company remains committed to delivering shareholder value. For 2024, the Board of Directors has proposed a cash dividend of RMB 0.50 per 10 shares, enabling all shareholders to benefit from the increase in the Company’s value. We are sincerely grateful for the long-term trust and support of all shareholders! Our heartfelt gratitude goes to all our partners for working with us! We extend our deepest thanks to all the employees for their diligent efforts!