Mid-to-High-End and Globalisation Strategies Yields Tangible ResultsSignificantly Enhancing Profitability
Results Highlights
TCL Electronics' mid-to-high-end and globalisation strategies yielded tangible results, enhancing its profitability significantly, during the first half of 2024, its revenue grew by 30.3% year-on-year ("YoY") to HK$45.5 billion, its adjusted profit attributable to owners[1] grew by 147.3% YoY to HK$654 million
In the first half of 2024, shipment of TCL TV grew by 9.2% YoY to 12.52 million sets, and its market share in terms of shipment increased by 0.9 percentage points YoY to 13.3%, ranking among the top two in the world[2]
Shipment of TCL's mid-to-high end products, QLED TV and Mini LED TV, recorded high YoY increases of 64.4% and 122.4% respectively, with Mini LED TV maintaining leading position worldwide in terms of shipment
Innovative business becomes a new growth driver, with revenue surging by 60.6% YoY to HK$14.0 billion, and gross profit growing by 64.1% YoY to HK$2.0 billion
Photovoltaic business achieved exponential growth, with revenue and gross profit surging 212.7% and 322.5% YoY to HK$5.3 billion and HK$542 million respectively, and the gross profit margin improving by 2.7 percentage points YoY to 10.3%
HONG KONG, Aug. 23, 2024 /PRNewswire/ -- TCL Electronics Holdings Limited ("TCL Electronics" or the "Company", 01070.HK) today announced its interim results for the six months ended 30 June 2024. During the reporting period, TCL Electronics continued to promote its mid-to-high-end and globalisation strategies. The Company's revenue grew by 30.3% YoY to HK$45.5 billion in the first half of 2024, with the revenue from the innovative business surging by 60.6% YoY to HK$14.0 billion, achieving continuous increase in its diversified revenue and significant enhancement of its profitability.
TCL Electronics demonstrated continuous improvements in operational efficiency, resulting in a reduction of expenses across multiple areas. The Company's administrative expense ratio decreased by 1.1 percentage points YoY to 4.1%, while the selling and distribution expense ratio decreased by 0.9 percentage points to 9.6%, attributed to the Company's adherence to a precision marketing strategy. The overall expense ratio decreased by 2.0 percentage points YoY to 13.7%. As a result of the Company's commitment to a solid operational practices, its adjusted net profit attributable to owners of the parent experienced a significant 147.3% YoY increase, amounting to HK$654 million, showing a significant improvement in the quality of operations.
Meanwhile, TCL Electronics has consistently maintained high dividend payout policy to reward shareholders since 2017, with a dividend payout ratio[3] of 50.0% in 2023.
Capturing Large-Screen Market Opportunities, Performance of Large-Sized Display Business Far Outperforming Industry
Benefitting from the surge in demand from major sporting events such as the Euro Cup and the Olympic Games in the European and American TV markets, shipment of global TV industry increased by 1.9% YoY in the first half of 2024[2]. Through the precise marketing on the sporting events by the Company, global shipment of TCL TV reached 12.52 million sets in the first half of 2024, representing a YoY increase of 9.2%, steadily ranking among the top two[2] in the world. Among which, shipment of large-sized and mid-to-high-end TCL TV grew significantly, the global shipment of TCL TV of 75-inch and above grew by 34.5% YoY, while the global shipment of TCL Mini LED TV surged by 122.4% YoY. Sales volume growth of large-sized and mid-to-high-end TV drove the revenue of the Company's large-sized display business to increase by 23.2% YoY to HK$25.9 billion.
Regarding the PRC market, the retail sales volume of the domestic TV market declined by 10.7% YoY in the first half of 2024 ...
