Prospectus of TCL Group Co., Ltd.

Overview

This overview provides a brief summary of the prospectus. Investors should read the full prospectus carefully before making investment decisions.

Basic Information of the Issuer

The company is a joint-stock company established with the approval of the Guangdong Provincial People's Government, based on the original TCL Group Co., Ltd. It was registered on April 19, 2002, with a registered capital of RMB 1,591,935,200. The company was initiated by 49 original shareholders of TCL Group Co., Ltd., including Huizhou Investment Holding Co., Ltd., Nantai Electronics (Shenzhen) Co., Ltd., Philips Electronics China B.V., Lucky Concept Limited, Regal Trinity Limited, Toshiba Corporation, Sumitomo Corporation, and 42 individual shareholders including the company's main management personnel, Li Dongsheng. The controlling shareholder of the company is Huizhou Investment Holding Co., Ltd., a state-owned sole proprietorship authorized to manage state-owned assets, with a registered capital of RMB 850 million. Before this issuance, it held 652,282,698 shares of the company, accounting for 40.97% of the total share capital before issuance. The group is a leading comprehensive manufacturer of consumer electronics and communication products in China, primarily involved in six major industrial clusters: multimedia electronics, communications, home appliances, information technology, electrical engineering, and components. The group ranked fourth among the top 100 electronic information enterprises in 2002 according to the Ministry of Information Industry. According to statistics from the Ministry of Information Industry, the group ranked second in total domestic and international sales of color TVs among domestic manufacturers in 2002; in the first half of 2003, TCL brand mobile phones ranked second in domestic sales among local brands. The group's overall development goal is to become a large enterprise with a leading position in the domestic market and the strength to participate in international competition within five years, and to develop into a large multinational company with international competitiveness within ten years. The group's development goals in major business areas over the next three to five years are: (1) to establish international competitiveness in the multimedia display terminal and mobile information terminal sectors, competing among the top five globally; (2) to become a leader in the domestic industry in home appliances, information technology, and electrical lighting sectors.

Main Financial Data of the Issuer

The main data from the consolidated balance sheet audited by Ernst & Young Hua Ming Accounting Firm is as follows:

The main data from the consolidated income statement audited by Ernst & Young Hua Ming Accounting Firm is as follows:

Main Operating Data of the Issuer

The group engages in the research, production, and sales of diversified products based on household consumption demand, including color TVs, mobile phones, personal computers, refrigerators, washing machines, air conditioners, and electrical products. The main product sales data is as follows: