Financial Performance - The company's revenue for the year ended December 31, 2023, reached HKD 78,986 million, representing a year-on-year increase of 10.7%[3] - Gross profit increased by 12.5% to HKD 14,756 million, with an overall gross margin improvement of 0.3 percentage points to 18.7%[6] - Net profit attributable to shareholders rose by 66.4% to HKD 744 million, while adjusted net profit increased by 14.0% to HKD 803 million[3][7] - Total revenue increased by 10.7% from HKD 71.35 billion in 2022 to HKD 78.99 billion in 2023[31] - The adjusted net profit for 2023 was HKD 802.70 million, compared to HKD 704.39 million in 2022[30] - The gross profit for 2023 was HKD 14.755 billion, up from HKD 13.11 billion in 2022[30] - The profit attributable to shareholders was HKD 743,633,000 for the year ended December 31, 2023, compared to HKD 446,975,000 in 2022[51] - The company reported a net profit of HKD 826,809 for the year, an increase of 49.2% from HKD 553,834 in 2022[60] Revenue Breakdown - Internet business revenue grew by 20.2% to HKD 2,763 million, with a gross margin of 55.1%[9] - The company's innovative business revenue surged by 78.5% to HKD 18,640 million, driven by significant growth in the photovoltaic sector, which saw a revenue increase of 1,820.3% to HKD 6,299 million[9] - The small and medium-sized display business generated revenue of HKD 7.053 billion, a year-on-year decline of 40.2%, but improved gross margin by 6.3 percentage points to 22.2%[18] - The internet business achieved global revenue of HKD 2.763 billion, a year-on-year increase of 20.2%, with a gross margin improvement of 4.6 percentage points to 55.1%[20] - The revenue from the smart screen segment in the international market for 2023 was HKD 32,615,812, compared to HKD 29,999,916 in 2022, marking an increase of 8.6%[79] - The revenue from the smart screen segment in the Chinese market for 2023 was HKD 16,016,765, up from HKD 15,194,117 in 2022, representing a growth of 5.4%[79] Smart Screen Business - TCL's smart screen shipments increased by 6.2% to 25.26 million units, with a market share rise to 12.5% in global shipments[8] - The global market share of TCL smart screens increased from 5.6% in 2015 to 12.5% in 2023, with a year-on-year increase of 0.8 percentage points in shipment volume market share[12] - In 2023, TCL's global shipment of 65-inch and larger smart screens grew by 35.3%, with the average screen size increasing from 48.4 inches to 51.1 inches[13] - TCL Mini LED smart screen shipments surged by 180.1% year-on-year, while quantum dot smart screen shipments rose by 116.1%[13] - The retail market share of TCL smart screens in China increased by 3.5 percentage points to 18.1%, maintaining a top position in the market[15] - In the international market, TCL smart screen shipments rose by 10.0% year-on-year, with shipments of 65-inch and larger screens increasing by 60.3%[16] Research and Development - In 2023, the company's R&D expenses amounted to HKD 2.327 billion, focusing on smart terminal investments, including Mini LED technology, which supports the sales volume and revenue of Mini LED smart screens, maintaining the top position in the domestic market and second globally[10] - Research and development expenses for 2023 were HKD 2,326,980 thousand, a decrease from HKD 2,531,283 thousand in 2022, reflecting a reduction of 8.1%[85] - The company is committed to research and development, particularly in quantum dot technology and interactive display panels[119] Market Expansion and Strategy - The company is actively exploring new growth areas such as photovoltaic energy, all-category marketing, and AR/XR smart glasses to diversify revenue sources[5] - The company aims to enhance brand image and product quality while focusing on mid-to-high-end strategies and expanding global market share[28] - The company is focusing on expanding its internet business, which includes membership cards, video on demand, and advertising[78] - The company is currently evaluating the impact of new accounting standards on its financial reporting, with no significant effects anticipated[76] Financial Position and Debt - The capital debt ratio stood at 37.2% as of December 31, 2023, indicating a stable financial position[7] - The financing cost increased by 32.4% year-on-year to HKD 0.885 billion in 2023, attributed to rising U.S. federal funds rates[45] - The group held bank loans and other borrowings of approximately HKD 5,811,654,000 as of December 31, 2023, with fixed interest rates ranging from 0.60% to 6.64%[55] - The group's cash and cash equivalents amounted to approximately HKD 10,736,877,000 as of December 31, 2023, representing a year-on-year increase of 14.3%[55] Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.16 per share, representing a payout ratio of 50.0% of adjusted net profit[7] - The company plans to distribute a final dividend of HKD 0.16 per ordinary share for 2023, up from HKD 0.127 per share in 2022, which is an increase of 25.8%[88] Corporate Governance and Compliance - The audit committee reviewed the annual performance for the year ending December 31, 2023, including the accounting principles adopted by the group [113] - The company confirmed compliance with the non-competition agreement for the period from January 1, 2023, to December 31, 2023 [115] - The group has established and will continue to optimize risk management and internal control systems [110]
TCL电子(01070) - 2023 - 年度业绩