Three-Year Shareholder Return Plan (2026-2028)
Since TCL Appliance Group Co., Ltd. became the controlling shareholder of Guangdong TCL Smart Appliance Co., Ltd. (the "Company") in 2021, under the strong leadership of the board of directors, the Company has firmly focused on its core home appliance business and adhered to a prudent management philosophy. In response to the central government's call for "high-quality development" and "improving the quality of listed companies," significant achievements have been made. From 2021 to 2025, the Company's operating revenue increased from 10.122 billion yuan to 18.531 billion yuan in 2025; net profit attributable to shareholders of the listed company rose from a loss of 80 million yuan to a profit of 1.123 billion yuan. As of December 31, 2025, the Company has achieved four consecutive years of double-digit growth in net profit attributable to shareholders, and both the parent company's and consolidated financial statements' undistributed profits have turned positive, laying a solid foundation for implementing profit distribution and enhancing shareholder returns.
In accordance with the China Securities Regulatory Commission's "Guidelines for the Supervision of Listed Companies No. 3 - Cash Dividends of Listed Companies" and the Company's Articles of Association, and considering important factors such as operating performance, cash flow, financial condition, business development status, and future prospects, the Company has formulated the "Three-Year Shareholder Return Plan (2026-2028)," which will be submitted for review at the shareholders' meeting. The specific contents are as follows:
1. Principles for Formulating the Plan
The board of directors formulates this plan based on the profit distribution policy established in the Articles of Association. The Company's profit distribution policy maintains continuity and stability, emphasizes reasonable returns for investors, and balances the Company's long-term and sustainable development while complying with relevant laws, administrative regulations, departmental rules, and normative documents.
2. Considerations for the Shareholder Return Plan
The Company is committed to long-term sustainable development, fully considering the market environment and industry characteristics, combined with the Company's future development strategy, cash flow situation, social capital costs, and external financing environment. This aims to establish a continuous, stable, and scientific return plan and mechanism for investors, making clear institutional arrangements for profit distribution to ensure the rationality, continuity, and stability of the profit distribution policy.