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The Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

TCL COMMUNICATION TECHNOLOGY HOLDINGS LIMITED TCL通訊科技控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 02618)

RESULTS ANNOUNCEMENT FOR THE THREE MONTHS ENDED 31 MARCH 2013

FINANCIAL HIGHLIGHTS Unaudited results for the three months ended 31 March

2013

(HK$’000) 2012

(HK$’000) Change

(%)

Revenue 2,448,775 2,105,189 16%

Gross profit 402,337 418,687 -4%

Gross profit margin (%) 16% 20% -4%

(LBITDA)/EBITDA (201,387) 50,342 -500%

(Loss)/profit attributable to owners of the parent (246,233) 25,702 -1058%

Basic (loss)/earnings per share attributable to ordinary equity holders of the parent (HK cents) (21.82) 2.30 -1049%

OPERATIONAL HIGHLIGHTS

Sales volume of handsets and accessories in the first quarter of 2013 totaled 8.5 million units, up 8% year-on-year.

Revenue in the first quarter of 2013 increased by 16% year-on-year to HK$2.4 billion. Sales volume of smartphones and other smart devices in the first quarter of 2013 increased by 95%

year-on-year to 1.5 million units. Overall average selling price (“ASP”) increased from US$34.6 in the first quarter of 2012 to US$37

in the first quarter of 2013. Net loss of HK$ 247 million was recorded in the first quarter of 2013. Basic loss per share in the

first quarter of 2013 was 21.82 HK cents.

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The board of directors (the “Board”) of TCL Communication Technology Holdings Limited (“TCT” or the “Company”) announced the unaudited condensed consolidated results and financial position of the Company and its subsidiaries (collectively, the “Group”) for the three months ended 31 March 2013, with comparative figures for the same period last year as follows and these condensed consolidated financial statements have not been audited, but have been reviewed by the Company’s Audit Committee: CONSOLIDATED INCOME STATEMENT Three months ended

31 March

Notes

2013 (Unaudited)

HK$’000

2012(Unaudited)

HK$’000 REVENUE 3 2,448,775 2,105,189 Cost of sales (2,046,438) (1,686,502) Gross profit 402,337 418,687 Other income and gains 3 98,033 166,859Research and development costs (223,783) (139,886)Selling and distribution expenses (288,876) (212,520)Administrative expenses (187,712) (115,989)Other operating expenses (5,134) (46,505)Finance costs 4 (35,819) (39,945)Share of loss of an associate (456) (522) (LOSS)/PROFIT BEFORE TAX 5 (241,410) 30,179 Income tax 6 (6,052) (6,615) (LOSS)/PROFIT FOR THE PERIOD (247,462) 23,564 Attributable to:

Owners of the parent (246,233) 25,702Non-controlling interests (1,229) (2,138) (247,462) 23,564

(LOSS)/EARNINGS PER SHARE ATTRIBUTABLE

TO ORDINARY EQUITY HOLDERS OF THE PARENT (HK cents) 7

Basic (21.82) 2.30 Diluted (21.82) 2.27

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Three months ended

31 March 2013 2012 (Unaudited) (Unaudited) HK$’000 HK$’000

(LOSS)/PROFIT FOR THE PERIOD (247,462) 23,564 OTHER COMPREHENSIVE INCOME Cash flow hedges:

Effective portion of changes in fair value of hedging instruments arising during the period 96,780 1,271

Reclassification adjustments for losses/ (gains) included in the consolidated income statement 22,524 (34,542)

119,304 (33,271) Exchange differences on translation of foreign operations 4,475 34,879 OTHER COMPREHENSIVE INCOME FOR THE PERIOD，

NET OF TAX 123,779 1,608 TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE

PERIOD (123,683) 25,172 Attributable to:

Owners of the parent (122,454) 27,310 Non-controlling interests (1,229) (2,138)

(123,683) 25,172

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Notes

31 March 2013

(Unaudited) HK$’000

31 December 2012

(Audited)HK$’000

NON-CURRENT ASSETS Property, plant and equipment 626,190 597,287 Prepaid land lease payments 176,468 176,656 Other intangible assets 907,567 920,536 Goodwill 253,954 253,954 Investment in an associate 3,056 3,502 Available-for-sale investments 26,272 26,272 Deferred tax assets 131,141 130,659 Total non-current assets 2,124,648 2,108,866 CURRENT ASSETS Inventories 1,515,313 1,263,038 Trade receivables 8 1,872,244 2,842,494 Factored trade receivables 183,514 432,334 Notes receivable 58,287 39,220 Prepayments, deposits and other receivables 1,277,130 1,246,325 Due from related companies 27,317 29,512 Tax recoverable 22,626 22,236 Derivative financial instruments 225,920 145,894 Pledged deposits 3,666,376 4,221,125 Cash and cash equivalents 1,036,275 969,789 Total current assets 9,885,002 11,211,967 CURRENT LIABILITIES Interest bearing bank and other borrowings 5,365,907 5,726,390 Trade and notes payables 9 1,894,452 2,428,661 Bank advances on factored trade receivables 183,514 432,334 Other payables and accruals 1,522,859 1,620,401 Derivative financial instruments 60,200 96,282 Provision for warranties 198,165 187,975 Due to related companies 86,608 112,826 Tax payable 1,650 738 Total current liabilities 9,313,355 10,605,607 NET CURRENT ASSETS 571,647 606,360 TOTAL ASSETS LESS CURRENT LIABILITIES 2,696,295 2,715,226

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)

Note

31 March 2013

(Unaudited) HK$’000

31 December 2012

(Audited)HK$’000

TOTAL ASSETS LESS CURRENT LIABILITIES 2,696,295 2,715,226 NON-CURRENT LIABILITIES Retirement indemnities 3,618 3,738 Long service medals 1,781 1,840 Interest bearing bank and other borrowings 388,165 193,790Loan from a related company - 116,274Deferred tax liabilities 77,023 76,958 Total non-current liabilities 470,587 392,600 Net assets 2,225,708 2,322,626 EQUITY Equity attributable to owners of the parent Issued capital 10 1,128,438 1,128,290 Shares held for Share Award Scheme (77,870) (77,870)Reserves 1,174,854 1,270,691 2,225,422 2,321,111 Non-controlling interests 286 1,515 Total equity 2,225,708 2,322,626

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Notes

1. BASIS OF PREPARATION

These financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”) (which include all Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards (“HKASs”) and Interpretations) issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”), accounting principles generally accepted in Hong Kong and the disclosure requirements of the Hong Kong Companies Ordinance. They have been prepared under the historical cost convention, except for the Group’s forward contracts and interest rate swap, which have been measured at fair value. These financial statements are presented in Hong Kong dollars and all values are rounded to the nearest thousand except when otherwise indicated. The accounting policies and basis of preparation adopted in the preparation of these financial statements are the same as those used in the annual financial statements for the year ended 31 December 2012.

2. OPERATING SEGMENT INFORMATION For management purposes, the management does not review the performance of the business in China and overseas segments separately, but considers that there is only one segment which is the research and development, manufacture and sale of mobile phones and other products. All of the Group’s products are of a similar nature and subject to similar risks and returns. Geographical information (a) Revenue from external customers

For the three months

ended 31 March

2013

HK$’000 2012

HK$’000

Europe, the Middle East and Africa 997,433 644,032Americas 959,011 941,401Asia Pacific 214,673 150,182China 277,658 369,574

Total 2,448,775 2,105,189

The revenue information of continuing operations above is based on the locations of the customers.

(b) Non-current assets

Because majority of the Group’s non-current assets and capital expenditure were located/incurred in China, accordingly, no related geographical information is presented.

Information about major customers

For three months ended 31 March 2013 and 2012, no revenue from a single customer accounted for 10% or more of the total revenue of the Group.

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Notes (continued)

3. REVENUE, OTHER INCOME AND GAINS

Revenue, which is also the Group’s turnover, represents the net invoiced value of mobile phones and other products sold during the period, after deducting allowances for returns and trade discounts. All significant intra-group transactions have been eliminated on consolidation.

An analysis of the Group’s revenue, other income and gains is as follows:

For the three months

ended 31 March

2013 (Unaudited)

HK$’000

2012(Unaudited)

HK$’000 Revenue Sale of mobile phones and other products 2,448,775 2,105,189 Other income and gains Interest income 41,920 53,440 Subsidy income* 4,351 43,072 Value-added-tax (“VAT”) refunds** 36,620 23,762 Value-added service income 4,405 2,605 Gain on disposal property, plant and equipment (note 5) - 167 Gain on disposal of prepaid land lease payment and

affiliated buildings (note 5) - 43,000Others 10,737 813 98,033 166,859

* Subsidy income represented various government grants received by the Group in the PRC. In the

opinion of the management, there are no unfulfilled conditions or contingencies relating to these grants.

** During the three months ended 31 March 2013 and 2012, JRD Communication (Shenzhen) Limited

(“JRD Shenzhen”) and JRD Communication Technology (Shanghai) Limited (“JRD Shanghai”), being designated as software enterprises, were entitled to VAT refunds at the effective VAT rates in excess of 3% after the payment of statutory net output VAT of 17%.

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Notes (continued)

4. FINANCE COSTS An analysis of finance costs is as follows:

For the three months

ended 31 March

2013 (Unaudited)

HK$’000

2012 (Unaudited)

HK$’000

Interest on bank loans and other loans wholly repayable within three years 35,111 38,815

Interest on discounted notes and factored trade receivables* 708 1,130

Total finance costs 35,819 39,945

* The effective interest rate of factored trade receivables is 0.15% (three months ended 31 March 2012: 0.22%) per month.

5. (LOSS)/PROFIT BEFORE TAX

The Group’s (loss)/profit before tax is arrived at after charging/(crediting):

For the three months

ended 31 March

2013 (Unaudited)

HK$’000

2012(Unaudited)

HK$’000

Cost of inventories sold 2,046,438 1,686,502 Depreciation 34,702 24,273 Prepaid land lease recognised 760 776 Amortisation of computer software, intellectual property and

ALCATEL brand license 10,662 8,609 Research and development costs:

Deferred expenditure amortised 202,385 41,842 Current period expenditure 21,398 98,044

223,783 139,886 Brand management fee/TCL Brand Common Fund 2,257 4,367Minimum lease payments under operating leases in respect of land

and buildings 18,411 17,790Provision/(reversal) of impairment loss of trade receivables 1,982 (1,007)Gain on disposal of items of property, plant and equipment (note 3) - (167)Gain on disposal of prepaid land lease payment and affiliated

buildings (note 3) - (43,000)

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Notes (continued)

6. INCOME TAX

For the three months

ended 31 March

2013 (Unaudited)

HK$’000

2012(Unaudited)

HK$’000Current

Charge for the period: The PRC 671 397 France 618 2,010Russia 3,814 3,654 The United States - 11

Underprovision in prior years 949 543 Tax charge for the period 6,052 6,615

No Hong Kong profits tax has been provided (three months ended 31 March 2012: Nil) since no assessable profit arose in Hong Kong during the year. Taxes on profits assessable elsewhere have been calculated at the rates of tax prevailing in the jurisdiction in which the Group operates. Huizhou TCL Mobile Communication Co., Ltd., a subsidiary of the Company in the PRC, was given a high technology enterprise accreditation from October 2011 to October 2014 and hence is subject to a corporate income tax rate of 15% for the years 2013 and 2012. JRD Shenzhen, a subsidiary of the Company in the PRC, was given a high technology enterprise accreditation from October 2011 to October 2014. Hence it is subject to a corporate income tax rate of 15% for the years 2013 and 2012. TCL Communication (Ningbo) Limited, a subsidiary of the Company in the PRC, was given a high technology enterprise accreditation from November 2011 to November 2014. Hence it is subject to a corporate income tax rate of 15% for the years 2013 and 2012.

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Notes (continued)

6. INCOME TAX (continued) According to the Corporate Income Tax Law of the PRC on the newly established high technology software enterprises, JRD Shanghai, a subsidiary of the Company in the PRC, was eligible for a “two-year exemption and three-year half reduction” tax holiday starting from its first profit-making year being a newly established high technology software enterprise. Except for the subsidiaries in PRC mentioned above, the subsidiaries of the Company in PRC are subject to the PRC corporate income tax rate of 25% for the years 2013 and 2012. TCT Mobile Europe SAS, a subsidiary of the Company in France, is subject to a corporate income tax rate of 33.33% for the years 2013 and 2012. According the new French tax policy issued in 2011, entity needs to pay income tax even though the entity has tax losses carried forward. Based on the French Finance Bill for 2013 which was published on 30 December 2012 and effective for the fiscal years ending on or after 31 December 2012, the amount of the deficit that could be deducted from any subsequent profit is limited to EUR1,000,000 plus, if applicable, 50% of the fraction of earnings exceeding EUR1,000,000. TCT Mobile SA DE CV, a subsidiary of the Company in Mexico, is subject to Flat Rate Business Tax (“IETU”) and income tax (“ISR”). IETU applies to the sale of goods, the provision of independent services and the granting of use or enjoyment of goods, less certain authorised deductions. IETU payable is calculated by subtracting certain tax credits from the tax determined. Revenue, deductions and certain tax credits are determined based on cash flows generated starting from 1 January 2008. The tax rate of IETU was 17.5% for the years 2013 and 2012. ISR is calculated as a certain percentage of net tax income which is determined based on all revenues minus expenses (deductions) as defined by Income Tax Law. The ISR rate was 30% for the years 2013 and 2012. In all cases, the payment of IETU is required only to the extent that it exceeds ISR for the same period. “TMC Rus” Limited Liability Company, a subsidiary of the Company in Russia, is subject to corporate income tax rate of 20% for the years 2013 and 2012. TCT Mobile, Inc. and TCT Mobile (US) Inc., subsidiaries of the Company in the United States, are subject to the United States Federal tax rate of 34% and California State tax rate of 8.84% for the years 2013 and 2012. TCT Mobile-Telefones LTDA., a subsidiary of the Company in Brazil, is subject to corporate income tax at a rate of 25% and social contribution tax at a rate of 9% on the same taxable income (except for certain specific adjustments), according to Article 17 of Law #11.727 and Article 228 of Decree #3.000 of Income Tax Regulation in Brazil.

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Notes (continued)

7. (LOSS)/EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT

The calculations of basic and diluted (loss)/earnings per share are based on: For the three months

ended 31 March 2013

(Unaudited) HK$’000

2012(Unaudited)

HK$’000(Loss)/profit

(Loss)/profit attributable to ordinary equity holders of the parent, used in the basic and diluted (loss)/earnings per share calculation (246,233) 25,702

Number of shares For the three months

ended 31 March Shares 2013 2012 Weighted average number of ordinary shares in issue during

the period used in the basic (loss)/earnings per share calculation 1,128,329,696 1,117,039,448

Effect of dilution - weighted average number of ordinary

shares: Assumed issuance upon the exercise of share options and

allotment and issuance of awarded shares - 17,646,018

Weighted average number of ordinary shares in issue during the period used in the diluted (loss)/earnings per share calculation 1,128,329,696 1,134,685,466

The calculation of the basic (loss)/earnings per share is based on the (loss)/profit for the period attributable to ordinary equity holders of the parent, and the weighted average number of ordinary shares in issue during the period. The calculation of the diluted (loss)/earnings per share is based on the (loss)/profit for the period attributable to ordinary equity holders of the parent. The weighted average number of ordinary shares used in the calculation is the number of ordinary shares in issue during the period, as used in the basic (loss)/earnings per share calculation, and the weighted average number of ordinary shares assumed to have been issued at no consideration on the deemed exercise or conversion of all the dilutive potential ordinary shares into ordinary shares. For the current period, since the ordinary shares assumed to have been issued upon the exercise of share options and allotment and issuance of awarder shares will decrease the loss per share, these potential ordinary shares had an anti-dilutive effect on the Company.

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Notes (continued)

8. TRADE RECEIVABLES

An aged analysis of the Group’s trade receivables as at the end of the reporting period, based on the invoice date, is as follows:

31 March 2013

(Unaudited) HK$’000

31 December2012

(Audited)HK$’000

Within 3 months 1,395,074 2,413,735 4 to 12 months 451,924 414,531 Over 12 months 45,981 33,138 1,892,979 2,861,404 Impairment (20,735) (18,910) 1,872,244 2,842,494

The credit period is generally 30 to 180 days.

9. TRADE AND NOTES PAYABLES

An aged analysis of the Group’s trade and notes payables as at the end of the reporting period, based on the invoice date, is as follows:

31 March

2013 31 December

2012 (Unaudited) (Audited) HK$’000 HK$’000 Within 6 months 1,369,434 2,410,050 7 to 12 months 514,693 6,578 Over 12 months 10,325 12,033 1,894,452 2,428,661

Trade payables are non-interest-bearing and have an average term of 90 days.

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Notes (continued)

10． SHARE CAPITAL

Number of

sharesIssued

share capital Share

premium HK$’000 HK$’000

Authorised: Ordinary shares of par value HK$1 each at 1

January 2012, 31 December 2012, 1 January 2013 and 31 March 2013 2,000,000,000 2,000,000

Issued and fully paid or credited as fully paid:

1 January 2012 1,114,193,373 1,114,193 282,886Share options exercised 12,893,452 12,894 29,284 Issue of new shares under Share Award Scheme 1,203,280 1,203 5,435 Reclassification of lapsed share options - - 2,498 Reclassification of vested awarded shares - - 1,227 At 31 December 2012 and at 1 January 2013 1,128,290,105 1,128,290 321,330 Share options exercised* 148,351 148 211 At 31 March 2013 1,128,438,456 1,128,438 321,541

* 148,351 share options were exercised during the three months ended 31 March 2013 at

subscription price of HK$2.423 per share, resulting in the issue of 148,351 ordinary shares of par value HK$1 each for a total cash consideration of HK$359,000.

11． EVENTS AFTER THE REPORTING PERIOD

No significant events occurred after the end of reporting period and up to the date of this announcement.

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MANAGEMENT DISCUSSION AND ANALYSIS Industry Overview The European debt crisis remained unresolved in the first quarter of 2013, with the bailout of Cyprus setting off ripples of worry throughout the region. At the same time, economic recovery in the United States and other emerging countries was slow. The global handset market became sluggish as a result, posing challenges for the Group’s handset manufacturing business. With more competitors emerging in the market and ongoing keen competition, handset products’ average selling prices (“ASP”) and profit margins remained depressed in the first quarter of the year. The handset market is undergoing a transition from feature phones to smartphones, and so feature phone sales in the first quarter were weak while smartphone sales recorded remarkable growth. The rapidly growing 3G community has boosted the development of smartphone industry, bringing about a surge in demand for both entry-level and mid-market models. Especially in emerging markets, entry-level users have consistently traded up to more advanced handsets, contributing to a stable growth in handset sales. According to a recent study from International Data Corporation (“IDC”), the world’s overall number of mobile phone shipments will grow by 5.5% to 1.8 billion units in 2013 and continue to grow at a compound annual growth rate of 5.6% to 2.3 billion units in 2017. The global mobile phone market will grow slowly but steadily, with 3G mobile phones accounting for the majority of the market. In 2013, the smartphone market will continue to grow rapidly, albeit with intensifying competition as handset manufacturers worldwide are planning to launch more products and increase smartphone marketing efforts. IDC also expects that upgrades from entry-level to advanced smartphones will accelerate in 2013, helping boost the products’ overall selling price. Business Review In the first quarter of 2013, despite the unfavourable economic environment, weaker consumer demand and pressure from keen competition which caused many challenges to TCL Communication Technology Holdings Limited (“TCL Communication” or “the Group”), its total sales volume of handsets and other products increased by 8% year-on-year to 8.5 million units. Thanks to the Group’s tremendous efforts in developing its smartphone business, sales volume of smartphones and other smart devices surged 95% year-on-year to 1.5 million units, accounting for 17.1% of the Group’s total shipments for the first quarter. The increase in smartphones boosted the overall ASP per unit to US$37 during the period under review, up from US$34.6 in the first quarter of 2012, which greatly increased the Group’s overall revenue in the first quarter of 2013 by 16% to HK$2.4 billion. The first quarter is the traditional slack season for handset business, and the Group is still awaiting the worldwide complete launch of our first wave of mid-range smartphones. The sales volume of its smartphones in the first quarter of 2013 had not yet reached an economy of scale, which adversely affected the gross margin for smartphone business. Nevertheless, the first wave of smartphones were launched in China market in the first quarter as planned, and are ready to be launched in overseas markets in the second quarter. Besides, due to the rapid price drop of old products and paving the path for the new products, the old stock clearance has been done in the first quarter. The majority of the smartphones sold in the first quarter of 2013 were entry-level models, a market segment where selling price and gross margin are constrained by the intense competition. Accordingly, TCL Communication’s overall gross margin ratio dropped by 3.5% year-on-year to 16.4% as a result. Overall gross margin in the first quarter of 2013 was stabilized, compared to that of the fourth quarter of 2012, but still remained at a relatively low level.

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MANAGEMENT DISCUSSION AND ANALYSIS (continued) Business Review (continued) In order to maintain sustainable development in the handset business and offer its customers best-in-class and quality products, the Group has been continuously implementing its “Step-up” product strategy, which requires persistent investment in R&D. In addition, the first quarter of 2013 was critical for TCL Communication for preparing the second wave of mid-range smartphones. Therefore, in the first quarter of 2013, R&D expenses increased significantly by 60% year-on-year to HK$224 million. The Group also expanded its efforts in brand building and product marketing to facilitate the expansion of its smartphone business in both China and overseas markets. A number of marketing events were carried out during the period under review, including participation in the Las Vegas Consumer Electronic Show 2013 (“CES 2013”) in January and Barcelona Mobile World Congress 2013 (“MWC 2013”) in February. At the same time, the Group further explored new and potential markets in the first quarter of 2013, paving the way for the complete launch of its mid-range smartphones. Therefore, TCL Communication’s sales and distribution expenses rose by 36% year-on-year to HK$289 million. As a result of the above factors, the Group recorded a net loss of HK$247 million in the first quarter of 2013. The Group launched 14 new products in the first quarter of 2013, including 11 smartphones. These new products included the slimmest smartphone (6.45mm in thickness) and the first quad-core dual SIM product in the world. All these products are of the highest class in design and reflect the product competitiveness of the Group. The trendy, sophisticated and quality handsets of both TCL and Alcatel brands have been well received by the market and its brand recognition and market presence is effectively enhanced. Geographical Breakdown of Revenue

Sales of Handsets and Other Products For the three months ended 31 March (HK$ Million) 2013 2012 Change (%)EMEA 997 644 +55%Americas 959 941 +2%APAC 215 150 +43%China 278 370 -25%Total 2,449 2,105 +16%Including: smartphones and other smart devices 1,212 616 +97%

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MANAGEMENT DISCUSSION AND ANALYSIS (continued)

Business Review (continued) Europe, Middle East and Africa (“EMEA”) During the period under review, shipments of handsets and other products to EMEA totaled 3.0 million units -- up by 20% year-on-year -- while revenue increased by 55% year-on-year to HK$997 million. The revenue generated from smartphones and other smart devices in EMEA accounted for 49% of the Group’s smartphone revenue. In the first quarter of 2013, the Group continued to facilitate the shift from feature phones to smartphones and significantly increased its penetration of the smartphone market by launching new products and various marketing initiatives, such as participating in MWC 2013. The new products received satisfactory response and enhanced the brand awareness of ALCATEL ONE TOUCH during the event, which greatly helped to boost sales performance. In EMEA, TCL Communication achieved significant improvement in the Italian and Russian markets, with sales volume increased by 102% and 82% year-on-year respectively. In the second quarter of 2013, the Group will continue to develop open markets for smartphones while maintaining healthy sales growth through partnerships with telecom operators. The growth momentum in the EMEA market is expected to be continued in 2013. Americas Shipment of handsets and other products to the Americas during the period under review increased by 14% year-on-year to 4.0 million units, while revenue increased by 2% year-on-year to HK$959 million.

In the Americas, the market for low-end and mid-range 2G feature phones shrank. Tightened regulations on foreign currency and imports affected the handset markets in Argentina, Venezuela and Ecuador. The aggressive pricing policies of competitors also led to weaker sales performance of the Group in these markets. Despite the difficulties mentioned above, the Group still recorded significant growth in the United States, mainly due to the contribution of smartphone sales. To further penetrate the market, the Group explored new partnerships with key telecom operators. During the period under review, ALCATEL ONE TOUCH ranked No. 4 in LATAM, No. 1 in Central America and Ecuador, and No. 2 in Columbia in terms of shipments. Despite fierce competition in the smartphone market, the demand for smartphones in the Americas will remain strong and will be favourable for the growth of the Group’s smartphone business. To cope with strong competition and boost sales, the Group will strengthen its partnerships with both telecom operators and retailers. Asia Pacific (“APAC”) In the first quarter of 2013, the Group’s sales volume of handsets and other products across the APAC region decreased by 24% year-on-year to 0.5 million. Nevertheless, the revenue increased significantly by 43% year-on-year to HK$215 million. This remarkable revenue growth was attributed to the Group’s rising share of the smartphone market in the region. The Group continued to strengthen its competitiveness by expanding its distribution channels in developing markets. In particular, stimulating sales growth through partnerships with APAC telecom operators has been a major strategy in 2013. During the period under review, the Philippines and India were the fastest growing markets for the smartphone business in the region.

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MANAGEMENT DISCUSSION AND ANALYSIS (continued) Business Review (continued) Asia Pacific (“APAC”) (continued) To boost its market share in the region, the Group continued promoting smartphones and expanding the market through telecom operators and also increased expenditure in advertising and marketing. China In the first quarter of 2013, sales volume of handsets and other products in China declined by 16% year-on-year to 1.0 million units while revenue dropped by 25% year-on-year to HK$278 million. The unsatisfactory sales were mainly due to restructuring of the Group’s sales channel and sales team in the first quarter of 2013, paving a solid way for sales of the new wave of optimized smartphones. In 2013, TCL Communication will leverage the strong sales channel of TCL Multimedia Technology Holdings Limited (“TCL Multimedia”) to boost its smartphone sales in China. During the period under review, a number of new mid-range smartphone models were launched, with the TCL S820, a dual-SIM and dual-mode smartphone, being the bestseller in China. This successful model features a 4.7-inch black crystal touch panel and a stylish design. The product sold at below RMB 2,000, which attracted a broad spectrum of consumers. With the new products launched, the Group has achieved initial success in the open markets of Guangdong, Jiangsu and Sichuan. Moreover, the Group also strengthened its cooperation with the country’s three telecommunication operators and put more efforts into developing provincial sales platforms to achieve a breakthrough in operation. Several smartphone models, such as TCL D668, TCL D768 and TCL D706, were selected by China Telecom. Product Development The Group continued to focus on R&D and launched a number of new products in the first quarter of 2013, including the first wave of mid-range smartphone for the China market. These sophisticated products with outstanding features impressed consumers and raised brand awareness in global markets. Among the new products, TCL S850, the slimmest smartphone in the world (6.45mm in thickness), received the most enthusiastic response from consumers in the market, while the TCL S820 had the most successful performance in the market. It is the world’s lightest dual-SIM and dual-mode model, featuring a 4.7-inch black crystal touch panel, which enables high-definition display. The silver brushed metallic coating back-cover further give the phone a stylish look. The Group also partnered with Suning and China Telecom to launch the TCL D768. This is a dual-mode smartphone featuring a 1.2GHz dual-core processor and a 4.5-inch HD display screen, running Android 4.0. This product of high performance-to-cost ratio has been well received by customers. Apart from the success of the products launched in the smartphone market, the Group also introduced two new mobile devices: ONE TOUCH EVO7 HD, a thinner and faster modular tablet with 3G/4G modules which can be upgraded by end users, and ONE TOUCH W800, a mobile internet key with WiFi LTE hotspot capabilities.

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MANAGEMENT DISCUSSION AND ANALYSIS (continued) Business Review (continued) Marketing and Brand Building During the period under review, the Group continued to elevate its market position and strengthen its competitiveness in both overseas and China markets through targeted sponsorships, participation in various electronic product promotional events and numerous brand building activities. Overseas, the Group actively participated in the world’s largest consumer electronics exhibition, January’s CES 2013. During CES 2013, the Group launched its two new flagship smartphone products, ONE TOUCH Idol Ultra and ONE TOUCH Idol. The former is the industry’s slimmest smartphone while the latter is the lightest model available in its category. The trade fair was a success and the new products were well received by customers from around the world. Following the CES, the Group joined the world’s largest tradeshow for the telecommunications industry, MWC 2013, on the 25th to 28th of February. During the tradeshow, the Group rolled out the full series of new ALCATEL ONE TOUCH smartphones – state-of-the-art phones equipped with superior technology intended to make everyday life easy. The show attracted a great number of visitors, which included customers and media. In China, TCL Corporation, together with subsidiaries including TCL Communication and TCL Multimedia, held the “It’s Really Different! TCL Press Conference in Spring 2013” in Beijing on March 26. The products unveiled at the conference projected the Group’s brand image of youth, fashion and internationality with the slogan “Be all you wanna be”. Outlook The handset market will remain challenging in the near future in view of the dismal global economic outlook, keen market competition and the prevailing unfavourable operating environment. On one hand, amid global product transition from feature phones to smartphones, the Group’s feature phone business, especially high-end feature phones, will continue to be under great pressure with its steadily depressed ASP and gross margins. On the other hand, the dynamic smartphone business, with the fierce competition involved, not only requires the Group to provide products that show innovation and ever higher standards, but also a speedy time-to-market and lead time for new products. Therefore, execution for the launch of new products is critical for the Group, especially shortening time-to-market of smartphones to the customers, given that higher standards and more advanced technology are required. In addition to these efforts, the Group will push more strongly on R&D investment as well as sales and marketing expenditure for the sustainable development of its smartphone business. Product Development In line with our product transition strategy, the Group will focus on smartphone product development. While the rising popularity of low-to-mid-priced smartphones has put stronger pressure on the selling prices and margins of feature phones, the management is confident that the Group’s product transition will pay off and the steady growth in smartphone sales will offset the decline in feature phone sales in the near future. The first wave of mid-range smartphones was launched in China in the first quarter of 2013 as planned, and got ready to be launched in overseas markets from the second quarter onwards. Meanwhile, the Group has already kicked off the R&D projects for the second wave of smartphones, which will be launched in the second half of 2013 as an extension of the first-wave products. With more advanced products featuring full HD display and LTE to be launched, the management is confident that the smartphone strategy will lead the Group to a prosperous future.

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MANAGEMENT DISCUSSION AND ANALYSIS (continued) Outlook R&D and Operational Efficiency To keep abreast of the ever-changing market trends and technology, the Group strives to improve its product competency by investing in R&D to enhance product quality. It also continuously works to improve the efficiency of its R&D process for smartphones, optimize product portfolio ranging low to high-end, enhance supply chain management, and strengthen cooperation with major component suppliers in order to speed up product time-to-market via key components selection in early stage. Regarding operational efficiency, the Group will further optimize organizational structure and business processes, strengthen cooperation, improve overall executive efficiency and establish operational mechanisms designed to enable quick responses to market demand. Regarding operational efficiency, the Group will further optimize organizational structure and business processes, strengthen cooperation, improve overall executive efficiency and establish operational mechanisms designed to enable quick responses to market demand. Market Development and Expansion In the later quarters of the year, TCL Communication will continue its market penetration worldwide to boost smartphone sales. In overseas markets, the Group will strengthen its existing cooperation with the world’s major telecommunication operators and explore more opportunities for new partnerships. At the same time, the Group will also step up its efforts in developing new business with retailers in the open market. In EMEA, a number of mainstream operators have already placed orders for our first wave of mid-range smartphones in the first quarter of 2013, generating a growth momentum that could be seen in the coming quarter. The Group expects that the markets of Americas and APAC will also continue to grow with the complete launch of the first wave of mid-range smartphones. In China, the Group will focus on brand shaping, product design and channel building in 2013, aiming at making “TCL” a genuinely first-class brand for its handsets by 2015. In the coming quarters, TCL Communication will leverage TCL Multimedia to boost its smartphone sales, which has already greatly expanded its current sales network across China. In addition, in order to achieve economies of scale for the Group’s smartphone business, more effort will be made to enhance the ongoing cooperation with the three operators in China. Overall The loss made over the three months ended 31 March 2013 was mainly due to the traditional slack season of the handset industry, as well as the unfavourable economic environment, weakened feature phone demand and pressure from keen competition. Nevertheless, the management remains cautiously optimistic about the Group’s business prospects and the smartphone industry in the long run. The proven success of our smartphone strategy laid a good foundation for the future growth. Upon the complete launch of the first wave of competitive mid-range smartphones worldwide in the second quarter of 2013, growth momentum is expected from the second quarter of 2013 onwards and the Group’s business will improve.

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MANAGEMENT DISCUSSION AND ANALYSIS (continued) Outlook (continued) Overall (continued) At the same time, the Group will strictly implement its cost control policy, and expects the growth rate of operating expenses to be lower than that of revenue. Also, the management expects financial performance in the second quarter of 2013 will be better than that in the first quarter of 2013 as well as the fourth quarter of 2012. However, as a substantial loss was recorded in the first quarter of 2013, it is expected that a loss will be recorded for the first half of 2013. Nevertheless, the management remains confident in the Group’s business prospects and the smartphone industry in the long run, and reiterates the revenue target of 25% year-on-year growth for the year ending 31 December 2013. The Group will continue to boost sales and improve sales volume of smartphones in order to achieve optimal economies of scale and will continue to pursue its “Step-up” product strategy by leveraging its solid strengths in product development, the reputable brands of TCL and ALCATEL ONE TOUCH and the Group’s strong marketing capabilities. It will proactively, yet prudently, address business challenges and create value for the shareholders in the long term. Financial Review Results For the three months ended 31 March 2013, the Group’s unaudited consolidated revenue amounted to HK$2,449 million (three months ended 31 March 2012: HK$2,105 million), representing a year-on-year increase of 16% as compared to the same period of last year. The Group’s gross profit margin dropped to 16% from 20% in the same period of last year. LBITDA and loss attributable to owners of the parent were HK$201 million (three months ended 31 March 2012: EBITDA of HK$50 million) and HK$246 million (three months ended 31 March 2012: profit of HK$26 million) respectively. Basic loss per share was 21.82 HK cents (three months ended 31 March 2012: basic earnings per share of 2.30 HK cents). Inventory For the current period, the Group’s inventory (including factory inventory only) turnover period was 49 days (year ended 31 December 2012: 30 days). Trade Receivables Credit period was 30 to 180 days on average and the trade receivable (excluding factored trade receivables) turnover was 71 days for the current period (year ended 31 December 2012: 87 days). Significant Investments and Acquisition There had been no significant investment and acquisition for the three months ended 31 March 2013 and up to the date of this results announcement. Fund Raising There had been no fund raising for the three months ended 31 March 2013 and up to the date of this results announcement.

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MANAGEMENT DISCUSSION AND ANALYSIS (continued) Financial Review (continued) Liquidity and Financial Resources The Group maintained a healthy liquidity position during the period. The Group’s principal financial instruments comprise cash and cash equivalents, pledged deposits, interest bearing bank and other borrowings and bank advances on factored trade receivables. The cash and cash equivalents balances as at 31 March 2013 amounted to HK$1,036 million, of which 14% were in Renminbi, 60% were in US dollar, 5% were in Euro and 21% were in Hong Kong dollar and other currencies for the operations. The Group’s total interest-bearing borrowings as at 31 March 2013 were HK$5,938 million, in which the interest bearing bank and other borrowings were HK$5,754 million and bank advances on factored trade receivables were HK$184 million. The Group’s financial position remained healthy, with equity attributable to owners of the parent of HK$2,225 million (31 December 2012: HK$2,321 million). The Group had a gearing ratio of 49% at the end of the period (31 December 2012: 49%). The gearing ratio is calculated based on the Group’s total interest-bearing borrowings over total assets. Pledge of Deposits Deposit balance of HK$3,666 million (31 December 2012: HK$4,221 million) represented the pledged deposit for interest bearing bank borrowings, banking facilities and other financial instruments of HK$3,644 million (31 December 2012: HK$4,188 million) and retention guarantee for factored trade receivables of HK$22 million (31 December 2012: HK$33 million). Capital Commitment and Contingent Liabilities As at 31 March 2013, the Group’s capital commitments are as follows:

31 March

2013 31 December

2012 (Unaudited) (Audited) HK$’000 HK$’000 Property, plant and equipment: Contracted but not provided for 175,173 106,885

Authorized but not contracted for 1,627 - 176,800 106,885

The Group had no contingent liabilities as at 31 March 2013 (31 December 2012: nil). Foreign Exchange Exposure The Group has transactional currency exposures. These exposures arise from sales or purchases by operating units in currencies other than the units’ functional currency, where the revenue is predominated in Euro, Brazilian real, Russian rouble, US dollar and RMB. The Group tends to accept foreign currency exchange risk avoidance or allocation terms when arriving at purchase and sales contracts. The Group takes rolling forecast on foreign currency revenue and expenses, matches the currency and amount incurred, so as to alleviate the impact to business due to exchange rate fluctuation. In line with the aim of prudent financial management, the Group does not engage in any high risk derivative trading or leveraged foreign exchange contracts. Employees and Remuneration Policy The Group had over 11,000 employees as at 31 March 2013. Total staff costs for the period under review were HK$331 million. The remuneration policy was in line with current legislation, market conditions and both individual and company performance.

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PURCHASE, SALE OR REDEMPTION OF SECURITIES Neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's listed securities during the period under review. CODE ON CORPORATE GOVERNANCE PRACTICES None of the directors of the Company is aware of any information which would reasonably indicate that the Company has not, for any part of the three months ended 31 March 2013, complied fully with the code provisions (the “Code Provisions”) set out in the Corporate Governance Code and Corporate Governance Report (the “CG Code”) as set out in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”), except for the deviation from the Code Provisions A.6.7, D.1.4, E.1.2 and F.1.1. The reasons for the deviation remain the same as those stated in the Company's 2012 annual report. MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS The Board has adopted a code of conduct regarding directors’ securities transactions on terms no less exacting than the required standard set out in the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code”) as set out in Appendix 10 to the Listing Rules. Specific enquiries have been made with all directors who have confirmed that they have complied with the required standard set out in the Model Code and the Company’s code of conduct regarding directors’ securities transactions during the period under review. AUDIT COMMITTEE The unaudited consolidated results for the three months ended 31 March 2013 have been reviewed by the Audit Committee established in compliance with Rule 3.21 of the Listing Rules and the relevant Code Provisions of the CG Code. The Audit Committee comprises four members including Mr. LAU Siu Ki (Chairman), Mr. LOOK Andrew and Mr. KWOK Hoi Sing, all being independent non-executive directors of the Company, and Mr. HUANG Xubin, a non-executive director of the Company.

On behalf of the Board

TCL Communication Technology Holdings Limited

LI Dongsheng

Chairman

Hong Kong

24 April 2013 As at the date of this announcement, the Board comprises Mr. LI Dongsheng, Mr. GUO Aiping and Mr. WANG Jiyang, being the executive directors; Mr. HUANG Xubin, Mr. YAN Xiaolin and Ms. XU Fang, being the non-executive directors; Mr. LAU Siu Ki, Mr. LOOK Andrew and Mr. KWOK Hoi Sing, being the independent non-executive directors.