Net Profit of TCL Technology in First Three Quarters Exceeds $2 Billion

tcl
(Source: TCL)

Chinese electronics company TCL Technology on Thursday released its estimated performance for the first three quarters of 2021. It reckoned that the net profit in the first three quarters will be 13.05-13.35 billion yuan ($2.03-$2.08 billion), a year-on-year increase of 533%-548%. The net profit attributed to the parent company’s owner was 9.03-9.18 billion yuan, up 346%-353% year-on-year. The uptick in profit was due mainly to the firm’s semiconductor display business in the first three quarters, which increased by over 16 times year-on-year with the net profit close to 10 billion yuan.

The announcement shows that in the large-sized electronics business field, due to the disturbance of logistics and demand in some regions of the world, the prices of major products were adjusted back at a high level in the third quarter, coupled with the fluctuation of upstream supply chain, and the quarterly profit of large-size business decreased month-on-month. However, TCL Technology actively promoted the optimization of its product structure, such as high-end TVs and commercial displays, and its performance stability was significantly improved. The net profit in the third quarter increased by about four times year-on-year.

In the medium-sized electronics business field, the company’s market share in e-sports monitors, low-temperature polysilicon (LTPS) laptops, LTPS tablets and vehicle components has increased rapidly.

In the small-sized electronics business field, TCL Technology’s LTPS-LCD production line, namely its t3 production line, has gradually improved its operations. The firm’s t4 production line focusing on high-end flexible AMOLED display screens has actively established differentiated competitiveness such as flexible folding and off-screen camera shooting. Affected by early R&D investment, the loss of the t4 line has increased month-on-month.

Looking forward to the future, the total market demand in all regions of the world will maintain steady annual growth. The industry competition pattern will be optimized, and the trend of weakening industrial cycle volatility will remain unchanged. The company wrote that it will speed up the improvement of its small- and medium-sized electronics business layout, continue to optimize product structure, enhance efficiency and advantages, and raise the performance in cyclical fluctuations.

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At the same time, the revenue of Zhonghuan Semiconductor, which was acquired by TCL Technology in last year, continued to grow at a high speed, becoming the second engine of TCL’s scientific and technological performance growth.

In addition, according to the announcement, in order to conform to the national industrial orientation, focus on the main business of science and technology, and meet the needs of the company’s announced financing projects, TCL Technology disposed of the equity of Fantasia Real Estate Company in the third quarter, which had caused a sharp decline in TCL’s third quarter performance of the company’s investment business sector. Other businesses in the industrial finance and investment business are operating well, and the company is confident that this business part will achieve stable income in 2021.