TCL Corporation’s Net Profit for the First Half of 2015 Exceeds $US 330 Million

SHENZHEN, China, July 22, 2015 / PRNewswire — According to TCL Corporation’s 2015 Interim Result Briefing released in July, the company has achieved an estimated net profit of 2.05 to 2.1 billion yuan (~$US 330-338 million) for the first half of this year, including a net profit of 1.6 to 1.65 billion yuan (~$US 258-266 million) attributable to the shareholders of listed companies; the net profit after the non-recurring profit and loss deduction is estimated at 1.58 to 1.63 billion yuan (~$US 254-262 million), up 69 to 75%compared with the same period last year.

As the leader in the consumer electronics sector, TCL was among the first to roll out a transformation strategy based on leveraging the Internet. Since the beginning of this year, the company has continued to implement its “Double Plus” strategy featuring the “Intelligence+Internet” transformation strategy and the “Product+Service” business model. Based on the performance for the first half of the year, the overall strategy has done well on the whole or even better than what the market expected.

While continuing to optimize the product portfolio and distribution channels, TCL Multimedia (01070.HK) has made adjustments in the management structure, a move that has proven conducive to optimizing the organizational structure and the decision-making mechanism as well as further enhancing the core competitiveness of the business. During the reporting period, TCL Multimedia sold 7.716 million LCD TV sets. Active users accessing through the company’s smart network television terminal has grown to 9.063 million while the number of daily active users has reached 3.44 million. The fast growing number of users demonstrates that the revenue stream created by TCL smart television services will continue to grow.

By constantly optimizing product design and functionality, TCL Communication (02618.HK) has strengthened its relationships with service providers, developed online channels and continued to expand global market share. Cellphone sales for the first half of the year reached 34.835 million units, up 16.3 percent year-on-year, including 20.88 million smartphones, up 38.9 percent year-on-year. The proportion of sales attributable to smartphones increased to 59.9 percent from 50.2 percent a year earlier.

In terms of LCD panels, the estimated profit for CSOT came in higher than the target set earlier this year thanks to the increased average sales price of major products and reduced material and fixed unit cost. During the reporting period, CSOT recorded an accumulated taping-out of 786,000 pieces of glass substrates, up 3.27 percent year-on-year while the capacity utilization rate and product synthesis yield remained at a high level.

The company also took part in the restructuring of Hong Kong Peipus International (0334.HK), subsequently renamed TCL Display Technology, enabling the entity to obtain long-term stable and low-cost capital through the capital markets. The acquired capital was invested into research and development and supply chain integration, effectively enhancing the innovation capacity for new forms of display technology and the integration capacity between the upstream and downstream sides of the sector.

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Marta Chen