Financial Performance - TCL reported a revenue of HKD 45.494 billion, representing a year-on-year increase of 30.3%[4] - Gross profit reached HKD 7.748 billion, up 19.2% compared to the previous period[4] - Net profit attributable to shareholders increased by 146.5% to HKD 650 million[4] - Adjusted net profit attributable to shareholders rose by 147.3% to HKD 654 million[4] - The company's revenue increased by 30.3% year-on-year from HKD 34.92 billion in H1 2023 to HKD 45.49 billion in H1 2024[28] - The gross profit rose by 19.2% from HKD 6.50 billion in H1 2023 to HKD 7.75 billion in H1 2024, with a gross margin of 17.0%, down 1.6 percentage points year-on-year[33] - Profit before tax increased by 110.0% from HKD 420 million in H1 2023 to HKD 882 million in H1 2024, attributed to significant improvements across multiple business lines including display, internet, and innovative businesses[42] - Net profit for the period increased by 106.6% from HKD 316 million in H1 2023 to HKD 653 million in H1 2024, with attributable net profit rising by 146.5% from HKD 264 million to HKD 650 million, driven by scale expansion and improved operational quality[44] Operational Efficiency - The company's operating efficiency improved, with administrative expense ratio decreasing by 1.1 percentage points to 4.1%[7] - Sales and distribution expense ratio declined by 0.9 percentage points to 9.6%[7] - The overall expense ratio decreased by 2.0 percentage points to 13.7%[7] - The inventory turnover days improved to 69 days, one day faster than the previous year[8] - Cash turnover days were reduced to 36 days, two days faster than the previous year[8] Business Segments Performance - In the first half of 2024, TCL's display business revenue increased by 21.3% year-on-year to HKD 30.135 billion, driven by an optimized product mix and a growing share of high-end products[9] - The internet business revenue grew by 8.9% year-on-year to HKD 1.212 billion, maintaining a high gross margin of 54.0%[10] - Innovative business revenue surged by 60.6% year-on-year to HKD 13.953 billion, with gross profit increasing by 64.1% to HKD 2.009 billion[10] - The photovoltaic business saw revenue and gross profit increase by 212.7% and 322.5% year-on-year, reaching HKD 5.269 billion and HKD 543 million, respectively[10] - The small and medium-sized display business revenue grew by 10.7% year-on-year to HKD 3.761 billion, with a gross profit margin of 16.7%[16] - The smart commercial display business revenue increased by 11.3% year-on-year to HKD 460 million, with a gross profit margin of 13.8%[17] Market Share and Shipment - TCL TV global shipment volume reached 12.52 million units in the first half of 2024, a year-on-year increase of 9.2%, significantly outperforming the industry average[9] - TCL's global TV market share increased by 0.9 percentage points year-on-year to 13.3%, ranking among the top two global TV brands[12] - In the Chinese market, TCL TV shipment volume grew by 5.4% year-on-year, with revenue increasing by 21.1% to HKD 8.353 billion[13] - The shipment volume of TCL Mini LED TVs in China surged by 120.1% year-on-year, significantly increasing its market share[13] - In the first half of 2024, TCL TV's international market shipment volume increased by 10.4% year-on-year, with revenue growing by 24.2% to HKD 17.561 billion[14] - The shipment volume of TCL TVs sized 75 inches and above increased by 46.9% year-on-year, accounting for 8.4% of total shipments in North America, where TCL's retail market share rose by 0.5 percentage points to 12.5%[14] - In emerging markets, TCL TV shipment volume grew by 4.0% year-on-year, outperforming the industry average, with TCL maintaining the top retail market share in Australia, the Philippines, and Myanmar[15] - In Europe, TCL TV shipment volume increased by 40.1% year-on-year, benefiting from major sporting events, with retail market share ranking in the top two in France, Sweden, and Poland[15] Research and Development - R&D expenses reached HKD 1.093 billion in the first half of 2024, focusing on advanced display technologies and innovative products[11] - The company is investing heavily in R&D, with a budget allocation of HKD 5 billion for the development of AI and AR technologies over the next two years[167] Strategic Initiatives - TCL aims to capture the high-end market segment, with a focus on the growing demand for 75-inch and larger TVs, projected to achieve a compound annual growth rate of 25.0% from 2023 to 2025[24] - The company plans to enhance its global brand and channel advantages to expand its all-category marketing business, leveraging its established TV brand and channel presence[24] - TCL is committed to driving high-quality development through a strategy focused on "expanding scale, strengthening operations, activating organization, and globalization" in the second half of 2024[25] - The company will continue to innovate and expand in the photovoltaic and AR/XR markets, which are experiencing rapid growth, to seize industry opportunities[25] Cash Flow and Financial Position - As of June 30, 2024, cash and cash equivalents totaled approximately HKD 9.85 billion, a decrease of 8.3% compared to December 31, 2023, with 48.5% in RMB and 36.3% in USD[49] - The company reported cash inflows from operating activities of HKD 1,140,688 thousand, an increase from HKD 931,258 thousand in the same period of 2023, representing a growth of approximately 22.4%[62] - The net cash inflow from operating activities for the first half of 2024 was HKD 802,266 thousand, compared to HKD 441,149 thousand in the first half of 2023, indicating a significant increase of 81.8%[62] - The company reported a net cash outflow from investing activities of HKD 2,408,045 thousand for the first half of 2024, a decrease from HKD 2,883,959 thousand in the same period of 2023, showing a reduction of 16.5%[63] - The company reported a net loss attributable to shareholders of HKD 1,079,714 thousand for the first half of 2024, compared to a net loss of HKD 110,584 thousand in the same period of 2023, indicating a significant increase in losses[65] Shareholder Information - As of June 30, 2024, TCL Electronics Holdings Limited had a total of 2,520,935,155 shares issued, with major shareholders holding significant stakes, including TCL Industrial Holdings with 54.54%[139] - The company reported that the beneficial ownership of its directors and senior management included a total of 2,864,075 shares held by Du Juan, representing approximately 0.11% of the issued shares[136] - The company highlighted that the ownership structure includes various controlled corporations, indicating a diversified shareholder base[140] - The report emphasized the importance of compliance with the Securities and Futures Ordinance regarding the disclosure of shareholdings[138] Compliance and Governance - The audit committee reviewed the interim report and the unaudited condensed consolidated financial statements for the six months ended June 30, 2024[159] - All directors confirmed compliance with the standards of the company's securities trading code during the six months ended June 30, 2024[160] - The company received written confirmations from TCL Industrial Holdings and T.C.L. Industrial (Hong Kong) regarding compliance with the non-competition agreement during the specified period[161] Future Outlook - TCL Electronics anticipates a revenue growth forecast of 10% for the second half of 2024, supported by new product launches and market expansion initiatives[166] - The company is committed to sustainability, with plans to reduce carbon emissions by 30% by 2025 through energy-efficient product designs and manufacturing processes[164]
TCL电子(01070) - 2024 - 中期财报