DJ EQS-News: TCL Multimedia Announces 2017 Interim Results
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EQS-News / 27/07/2017 / 20:03 UTC+8
*(For Immediate Release)*
*TCL Multimedia Announces 2017 Interim Results*
** * * * * *
Profit Attributable to Owners of the Parent Surged by
Approximately 60% Year-on-year to HK$150 million
The Board of Directors Declared an Interim Dividend of HK3.90 Cents per
Share
Continuous Enhancements in Product Mix and High-end Products Proportion*
*BUSINESS HIGHLIGHTS OF THE GROUP FOR THE SIX MONTHS ENDED 30 JUNE 2017*
- The significant increase in the consolidated profit of the Group for the
period under review was mainly attributable to: (1) the relatively great
extent of increase in sales volume and sales revenue of business; (2) the
improvement of product structure; and (3) the control of selling and
distribution expenses and administrative expenses leading to a reduction of
expense ratio.
- The Group sold 9.60 million sets of liquid-crystal-display ("LCD") TVs, up
by 12.2% year-on-year. Sales volume of LCD TVs in the PRC market decreased
by 9.7% year-on-year to 3.87 million sets, while sales volume of LCD TVs in
the overseas markets grew by 34.1% year-on-year to 5.74 million sets.
- The Group achieved a turnover of HK$17.02 billion, increased by 19.7%
year-on- year. Gross profit increased by 6.3% when compared to the
corresponding period of last year to HK$2.63 billion. Gross profit margin
dropped from 17.4% of the corresponding period of last year to 15.4%, which
was mainly impacted by sales proportion of the overseas and the PRC market.
Expense ratio decreased from 15.9% in the corresponding period of last year
to 13.8%. Operating profit was HK$200 million and net profit after tax was
HK$140 million. Profit attributable to owners of the parent rose by 59.5%
when compared to the corresponding period of last year to HK$150 million.
Basic earnings per share was HK9.12 cents. The board of directors declared
an interim dividend of HK3.90 cents per share.
- With continued product mix enhancements, the proportion of high-end
products (such as quantum dot, curved, 4K and large screen TVs, etc.) has
been steadily increasing. Sales volume of smart TVs of the Group in the PRC
market (excluding ODM business) amounted to 2.33 million sets, which
accounted for 75.1% of the Group's LCD TV sales volume in the PRC market
(excluding ODM business). Sales volume of 4K TVs in the PRC market
(excluding ODM business) amounted to 1.26 million sets, which accounted for
40.6% of the Group's LCD TV sales volume in the PRC market (excluding ODM
business). Market share of curved TVs in the PRC market (excluding ODM
business) was 35.2%, maintaining No.1 position (Source: China Market Monitor
Co., Ltd. ("CMM")).
- The Group ranked No.3 in the global LCD TV market with a market share of
7.3% in the first quarter of 2017 according to the latest IHS Technology
figures and the Company's shipment data, and ranked No.3 in the PRC LCD TV
market with a market share of 13.6% in the first half of 2017 according to
CMM's report.
(27 July 2017, Hong Kong) - *TCL Multimedia Technology Holdings Limited
*("TCL Multimedia" or "the Group", HKSE stock code: 01070) today announced
its unaudited consolidated interim results for the six months ended 30 June
2017.
*Business Review*
In the first half of 2017, the Group achieved a turnover of HK$17.02
billion, rose by 19.7% year-on-year. Gross profit grew by 6.3% year-on-year
to HK$2.63 billion. As the price of main raw materials remained high and the
sales proportion of the overseas markets has increased with regional
adjustment for sales structure, gross profit margin dropped from 17.4% in
the corresponding period of last year to 15.4%. Expense ratio decreased from
15.9% in the corresponding period of last year to 13.8%. Operating profit
was HK$200 million and net profit after tax was HK$140 million. Profit
attributable to owners of the parent increased by 59.5% year-on-year to
HK$150 million. Basic earnings per share was HK9.12 cents. The board of
directors declared an interim dividend of HK3.90 cents per share.
As a result of the decreasing demand in the overall market, the Group's LCD
TV sales volume in the PRC market in the first half of the year dropped by
9.7% year-on-year, nevertheless, its performance for sales volume was still
better than the average level in the industry. On the other hand,
attributable to the continued strong growth in the North American market and
the emerging markets, the sales volume of LCD TVs in the overseas markets
significantly increased by 34.1% year-on-year and the turnover increased by
51.0% year-on-year in the first half of the year, of which, both sales
volume and turnover recorded significant increase, becoming a main driver
for business growth.
*The PRC Market*
Impacted by the 10.8% year-on-year decrease in the sales volume in the TV
industry, the Group's LCD TV sales volume decreased by 9.7% year-on-year to
3.87 million sets, yet its performance for sales volume was still better
than the average level in the industry. The Group's LCD TV turnover slightly
decreased by 0.5% to HK$8.55 billion when compared to the corresponding
period of last year while increased by 2.6% in the second quarter
year-on-year, which was attributable to the optimisation of the product mix
and the increase in the LCD TV's average selling price.
With continued product mix optimisation, the proportion of
middle-to-high-end products has been steadily increasing in the first half
of 2017 (Data below excluded ODM business).
- Smart TV sales volume amounted to 2.33 million sets, which accounted for
75.1% of the LCD TV sales volume in the first half of 2017, rising from
62.6% in the first half in 2016.
- 4K TV sales volume amounted to 1.26 million sets, which accounted for
40.6% of the LCD TV sales volume in the first half of 2017, rising from
33.9% in the first half of 2016.
- Market share of curved TVs was 35.2%, maintaining No.1 position (Source:
CMM). Sales volume of curved TVs rose significantly by 79.4% year-on-year to
480,000 sets, which accounted for 15.4% of the LCD TV sales volume in the
first half of 2017, increasing from 7.4% in the first half of 2016.
- The average size of TVs sold increased from 43.7 inches in the
corresponding period of last year to 45.5 inches.
*Overseas Markets*
In the first half of 2017, the Group's LCD TV sales volume increased by
34.1% year-on-year to 5.74 million sets, turnover was up by 51.0%
year-on-year to HK$8.38 billion, the average selling price increased by
12.5% year-on-year. Both sales volume and revenue in the overseas markets
recorded significant increase, becoming a main driver for business growth.
Performance in the overseas markets in the first half of 2017:
- In the North American market, LCD TV sales volume surged by 215.9%
year-on-year.
- LCD TV sales volume in the emerging markets rose by 20.5% year-on-year.
- LCD TV sales volume in the European market dropped by 38.7% year-on-year.
- LCD TV sales volume of the strategic ODM business was up by 9.6% when
compared with the corresponding period of last year.
The Group enhanced its product mix through CBUS (curved, big screen, 4K and
smart) strategy (excluding ODM business):
- The sales volume proportion of curved TV increased from 1.6% in the first
half of 2016 to 1.9% in the first half of 2017.
- The sales volume proportion of TV with screen size of 55 inches and above
rose from 13.8% in the first half of 2016 to 16.3% in the first half of
2017.
- The sales volume proportion of 4K TV increased from 12.5% in the first
half of 2016 to 19.3% in the first half of 2017.
- The sales volume proportion of smart TV rose from 48.3% in the first half
of 2016 to 77.0% in the first half of 2017.
*Internet Business*
The Group launched its brand new internet TV brand "FFalcon" in March to tap
into the internet TV market and announced on 2 July 2017 that Tencent
Digital had agreed to make a capital contribution of RMB450 million to
Thunderbird Technology under the Group; in return, Tencent Digital would
acquire 16.67% of interest in Thunderbird Technology, making it the second
largest shareholders. This strategic cooperation between two giants aims to
achieve the strategic complementary effect on resources and accelerate the
promotion of the "Smart + Internet" new business model.
In the first half of 2017, the Group recorded a revenue of approximately
RMB30.19 million, with a growth of 18.7% year-on-year, while the accumulated
number of TCL activated smart TV users of the Group totaled 20,303,387, and
the daily average number of active users in June 2017 was 9,169,637 (Source:
Huan Technology Co., Ltd.).
- Video-on-demand business totaled 19.39 million users, increased by 39.9%
when compared to the first half of 2016.
- Paid business totaled 242,000 users, increased by 374.5% when compared to
the first half of 2016.
- Average spending time of users on TV reached 4.9 hours.
*Outlook
Mr. BO Lianming, Chief Executive Officer of TCL Multimedia *said, "Looking
forward, we will persist
in adhering to the overall operation philosophy of 'efficiency is the basis,
the structure is core, profit is goal' for 2017, and focus on 'two-up and
two-down' as operating strategy to increase the proportion of products with
high gross profit and low-cost channels while decreasing system costs and
asset turnover days. We will also continue to foster the establishment of
four core competitiveness including product technology capabilities,
industry capabilities, brand and channel capabilities as well as internet
application and service capabilities. We are committed to reinforcing our
core brand competitiveness, improving profitability and achieving
sustainable growth."
*About TCL Multimedia*
Headquartered in China, TCL Multimedia Technology Holdings Limited (HKSE
stock code: 01070) is one of the leading players in the global TV industry,
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engaged in the research and development, manufacturing and distribution of consumer electronic products. Through a new product-and-user-oriented business model that focuses primarily on a "double +" strategy which includes "intelligence + internet" and "products + services" as the main direction, it strives to build a comprehensive ecosystem for smart TVs that provides users with an exquisite experience with its smart products and services. The Group ranked No.3 in the global LCD TV market with a market share of 7.3% in the first quarter of 2017 according to the latest IHS Technology figures and the Company's shipment data, and ranked No.3 in the PRC LCD TV market with a market share of 13.6% in the first half of 2017 according to CMM's report. The Group is included in the eligible shares list of the Shenzhen-Hong Kong Stock Connect. For more information, please visit its website: http://multimedia.tcl.com. Document: http://n.eqs.com/c/fncls.ssp?u=BUNPBOSNBA [1] Document title: 2017IR_Press Release_Eng_20170727_Eng 27/07/2017 Dissemination of a Financial Press Release, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. Media archive at www.todayir.com 1: http://public-cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=10768109a8a70d4ba57ca5d1f3c12b3b&application_id=596349&site_id=vwd&application_name=news
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July 27, 2017 08:03 ET (12:03 GMT)
