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EQS-News / 26/04/2017 / 17:41 UTC+8
*(For Immediate Release)*
*TCL Multimedia Announces 2017 Q1 Results*
** * * * * *
Profit Attributable to Owners of the Parent Rose by 10.2% Year-on-year*
*Operating Results in Overseas Markets Further Improved
with its LCD TV Sales Volume up by 38.0% Year-on-year *
*BUSINESS HIGHLIGHTS OF THE GROUP FOR FIRST QUARTER ENDED 31 MARCH 2017*
*- *The Group sold 4.70 million sets of liquid-crystal-display ("LCD") TVs,
up by 11.9% year-on-year. Sales volume of LCD TVs in the PRC market
decreased by 7.7% year-on-year to 2.22 million sets, while sales volume of
LCD TVs in the overseas markets grew by 38.0% year-on-year to 2.49 million
sets.
- The Group achieved a turnover of HK$8.48 billion, increased by 15.3%
year-on-year. Gross profit dropped by 3.5% when compared with the same
period of last year to HK$1.34 billion, and gross profit margin decreased
from 18.8% of the same period of last year to 15.7%. Operating profit was
HK$100 million, and net profit after tax was HK$77.52 million. Profit
attributable to owners of the parent rose by 10.2% when compared with the
same period of last year to HK$81.40 million. Basic earnings per share was
HK4.92 cents.
- 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 1.28 million sets, which
accounted for 75.7% 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 680,000 sets, which accounted for 40.5%
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 34.8%, maintaining No.1 position among the domestic brands in
the market (Source: China Market Monitor Co., Ltd. ("CMM")).
- The accumulated number of TCL activated smart TV users of the Group
totalled 19,087,187, and the daily average number of active users in March
2017 was 8,613,932 (Source: Huan Technology Co., Ltd. ("Huan")).
- The Group ranked No.3 in the global LCD TV market with a market share of
9.0% in 2016 according to the latest IHS Technology 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 quarter of 2017 according to CMM's report.
- The Group held a product launch presentation of its new internet TV brand
in Beijing, China on 29 March, and shared the grand debut of the new
internet brand "FFALCON", charging ahead into the internet TV market. During
the presentation, the Group also announced the in-depth collaborations with
Tencent and Alibaba respectively, in order to enrich its content resources
on TCL TVs.
(26 April 2017, Hong Kong) - *TCL Multimedia Technology Holdings Limited
*("TCL Multimedia" or "the Group", HKSE stock code: 01070) today announced
its unaudited consolidated results for the first quarter ended 31 March
2017.
*Business Review of the Group for the First Quarter Ended 31 March 2017*
Despite the negative impacts on the earnings of TV industry, the Group
continuously optimised its product mix to boost the proportion of sales
volume of its high-end products such as quantum dot, 4K, curved, and large
screen TVs. Meanwhile, the Group also enhanced operational efficiency and
strengthened cost control. Various measures of reducing costs have yielded
results, partly offsetting the negative impact brought by the increase in
cost. In the overseas markets, the Group has made significant breakthroughs
and improvements in sales volume and earnings, thus the overall results have
improved when compared to the same period of last year.
In the first quarter of 2017, the Group achieved a turnover of HK$8.48
billion, rose by 15.3% year-on-year. Gross profit dropped by 3.5%
year-on-year to HK$1.34 billion, and gross profit margin went down from
18.8% in the same period of last year to 15.7%. Expense ratio decreased from
16.7% of the same period of last year to 14.2%. Operating profit was HK$100
million, and net profit after tax was HK$77.52 million. Profit attributable
to owners of the parent increased by 10.2% year-on-year to HK$81.40 million.
Basic earnings per share was HK4.92 cents.
The Group hosted a product launch presentation of its new internet brand in
Beijing, China on 29 March. It not only unveiled its new flagship TV
products, third generation high-end quantum dots XESS X2 and X3 series TV,
C2 Theater TV and P3 golden curved TV, but also shared the grand debut of
the new internet TV brand "FFALCON" and four of its new I series products.
Additionally, in terms of content resources and sales channels, the Group
has announced in-depth cooperations with Tencent and Alibaba respectively,
to target the market of younger generation. The Group is committed to
producing an exceptionally competitive smart TV.
*The PRC Market*
Affected by the 12.5% year-on-year decrease in the sales volume of TV
industry in the first quarter of 2017, the Group's LCD TV sales volume
decreased year-on-year by 7.7% to 2.22 million sets. With product mix
improvement and the rise in the average selling price of LCD TVs, the
Group's turnover of LCD TVs was only down by 2.8% year-on-year to HK$4.82
billion.The panel prices have continued to hover at a high level, which has
put pressure on overall gross profit margin. Nevertheless, the Group has
proactively optimised its product mix, the gross profit margin of LCD TV
(excluding ODM business) increased by 0.6 percentage point.
With continued product mix optimisation, the proportion of mid-to-high-end
products has been steadily increasing in the first quarter of 2017 (Data
below excluded ODM business).
- Smart TV sales volume amounted to 1.28 million sets, which accounted for
75.7 % of the LCD TV sales volume in the first quarter of 2017, rising from
63.7% in the first quarter in 2016;
- 4K TV sales volume amounted to 680,000 sets, which accounted for 40.5% of
the LCD TV sales volume in the first quarter of 2017, rising from 32.5% in
the first quarter of 2016;
- Market share of curved TVs was 34.8%, maintaining No.1 position among the
domestic brands in the market (Source: CMM). Sales volume of curved TVs rose
significantly by 84.9% year-on-year to 260,000 sets, which accounted for
15.4% of the LCD TV sales volume in the first quarter of 2017, increasing
from 6.5% in the first quarter of 2016;
- Proportion of the sales volume of products with screen size of 55 inches
and above increased from 24.9% in the first quarter of 2016 to 35.5% in the
first quarter of 2017;
- The average size of TVs sold increased from 43.8 inches in the same period
of last year to 45.6 inches.
*Overseas Markets*
Benefiting from sales channels expansion and active development in new
emerging markets, the Group's operating results in the overseas markets have
continued to improve. In the first quarter of 2017, the Group's LCD TV sales
volume increased by 38.0% year-on-year to 2.49 million sets, turnover was up
by 52.1% year-on-year to HK$3.62 billion. As the panel prices have continued
to hover at a high level, gross profit margin of LCD TVs dropped from 13.6%
in the same period of last year to 11.2%.
Performance in the overseas markets in the first quarter of 2017:
- In the North American market, LCD TV sales volume surged by 241.2%
year-on-year;
- LCD TV sales volume in the emerging markets rose by 29.7% year-on-year;
- LCD TV sales volume in the European market dropped by 43.8% year-on-year;
- LCD TV sales volume of the strategic ODM business was up by 7.4% when
compared with the same period of last year.
The Group continued to accelerate its product mix transition towards
high-end products such as large screen, smart, 4K and curved TVs, etc.,
enhancing it through CBUS (curved, big screen, 4K and smart) strategy
(excluding ODM business):
- The proportion of curved TV sales volume increased from 0.5% in the first
quarter of 2016 to 1.9% in the first quarter of 2017;
- The proportion of TV with screen size of 55 inches and above sales volume
rose from 10.6% in the first quarter of 2016 to 14.8% in the first quarter
of 2017;
- The proportion of 4K TV sales volume increased from 4.6% in the first
quarter of 2016 to 16.2% in the first quarter of 2017;
- The proportion of smart TV sales volume up from 43.4% in the first quarter
of 2016 to 77.2% in the first quarter of 2017.
*Internet Business*
While adhering to the development strategy of "double +" strategic
transformation, the Group has actively built a TCL TV+ service ecosystem.
TCL has also established in-depth cooperations with Tencent and Alibaba
respectively, and introduced the new internet TV brand "FFALCON" in March
2017. In terms of content resources, leveraging on the content advantages
provided by Tencent Video and Youku under Alibaba, different models of the
FFALCON series products possess abundant content. In addition, various
parties will also share data in terms of artificial intelligence and cloud
service so as to achieve resources sharing. In terms of channels, different
models of the FFALCON series products will gain access to the online
channels through respective collaborations with the two major e-commerce
platforms, namely JD.com and Tmall.
The user numbers of various internet businesses have shown rapid growth. The
Group's internet business in the first quarter of 2017 recorded an increase
of 316% year-on-year in the turnover to approximately RMB15.74 million. As
of March 2017, the accumulated number of TCL activated smart TV users
totalled 19,087,187, the daily average number of active users in March 2017
was 8,613,932 (Source: Huan).
- Video-on-demand business totalled 18.21 million users, increasing by 60.0%
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April 26, 2017 05:42 ET (09:42 GMT)
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