TCL Results for first half of 2019

TCL Electronics generated turnover of HK$22.7 billion (EUR 2.6 billion at current exchange rates) in the first half of this year, an 8% increase compared with the first-half 2018 level. Having benefited from the overall efficiency improvement and the rapid growth of overseas and Internet businesses, TCL’s net profit after tax reached HK$1.37 billion, up by 139.8% year-on-year.

In the first half, TCL’s global TV sales volume hit a new record of 15.53 million sets and the company remained at No. 2 in the global TV market. Sales volume of TCL-brand TVs increased by 33.1% year-on-year to 10.31 million sets, showing the brand’s global competitive advantage.

International markets have become an important growth engine for the company. Sales volume of TCL brand TVs outside of China increased by 49.8% year-on-year to 7.07 million sets in the first half of 2019, while turnover amounted to HK$10.77 billion, up by 32.5% year-on-year.

In Europe, sales volume of TCL brand TVs rose by 20.7% year-on-year, with France (+57.4%), Germany (+161.1%) and Italy (+196.9%) performing particularly well. In the first half of 2019, TCL ranked 3rd in France in terms of TV sales volume (data source: GfK)

In North America, TCL continued to consolidate and strengthen its leading position, with TCL brand TV sales volume rising by 75.0% year-on-year despite the China-US trade dispute. Based on TV sales volume market share, TCL ranked 2nd in the US in the first half, jumping to No.1 in March (data source: NPD).

Emerging markets remained strong, with TCL brand TV sales volume up by 28.8% year-on-year. India (+216.8%), Indonesia (+109.5%), Argentina (+64.4%) and Russia (+52.0%) achieved particularly rapid growth.

In international markets, sales volume of mid-to-high-end products continued to grow:

The proportion of smart TV sales volume rose to 88.2% in the first half of 2019 from 82.4% in the first half last year

The proportion of 4K TV sales volume rose to 43.6% in the first half of 2019 from 34.9% in the same period last year

Sales volume of 65-inch and larger TVs increased by 204.1% year-on-year

The average screen size of TVs sold rose to 42.2 inches in the first half this year from 41.3 inches in the first half of 2018

In another highlight of the first half, TCL completed the globalisation of its production capacity and now has factories in Poland, Mexico, India, Vietnam, and South America, as well as China. The company’s total production capacity outside of China exceeds 15 million sets per year, which is sufficient to meet its shipment demand in the North American markets, effectively minimising potential risks from the China-US trade dispute.

Looking forward:

While reinforcing and upgrading its existing TV business, TCL will further diversify its businesses to areas including smart AV, commercial display and smart home.

The Company has strengthened the R&D and application of AI (Artificial Intelligence) and vigorously developed the intelligent loT (Internet of Things) field with “AI x IoT” as its core strategy. By building its cloud, channel and terminal capabilities, TCL plans to develop an open loT platform empowered by AI technology and centred on cloud platform to facilitate an interconnected, intelligent and healthy ecosystem. The Company is devoted to developing TV as the loT centre of future households. To achieve the interconnection of hardware, software and IoT scenarios, the Company will also provide users with video calls, smart interaction, remote services and a comfortable, healthy and smart home experience. Ultimately, TCL aims to consolidate its position as a global leading smart technology company.