TCL Multimedia Technology Holdings Limited
TCL Multimedia Announces 2017 Q1 Results
(For Immediate Release) TCL Multimedia Announces 2017 Q1 Results * * * * * * Operating Results in Overseas Markets Further Improved – 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 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 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 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 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% when compared with the first quarter of 2016; – Paid business totalled 240,000 users, increasing by 566.7% when compared with the first quarter of 2016; – Average spending time of users on TV reached 4.9 hours, representing an enhancement in user loyalty.
The Group’s sales volume of LCD TVs by regions and the number of TCL smart TV users during the period under review were as follows:
(1) Number of TCL activated smart TV users refers to the number of users who use the internet TV web service for more than once About TCL Multimedia Document: http://n.eqs.com/c/fncls.ssp?u=CHITVWDJBE Document title: 2017Q1_Press Release_Eng_20170426_Final
26/04/2017 Dissemination of a Financial Press Release, transmitted by EQS Group. |