Core Viewpoint - TCL Technology announced a joint investment in a private equity fund focused on the ultra-high-definition video display industry, aiming to enhance technological advancements and the development of the display industry chain in Shenzhen [1][3]. Group 1: Investment Details - The total committed capital for the investment is 2 billion RMB, with TCL Technology contributing 600 million RMB, representing a 30% stake [3]. - The investment is in collaboration with Shenzhen Guidance Fund Investment Co., Ltd. and Shenzhen Guangming District Guidance Fund Investment Management Co., Ltd., with Ningbo Jiutian Matrix Investment Management Co., Ltd. managing the fund [1][3]. Group 2: Financial Performance - For the first half of the year, TCL Technology reported revenue of 85.56 billion RMB, a year-on-year increase of 6.65% [3]. - The net profit attributable to shareholders reached 1.883 billion RMB, showing a significant year-on-year growth of 89.26% [3]. - In the semiconductor display segment, TCL Huaxing achieved revenue of 50.43 billion RMB, up 14.4% year-on-year, with a net profit of 4.316 billion RMB, reflecting a 74.0% increase [3]. Group 3: Market Position - TCL Huaxing maintained a competitive edge in large-size products, with a market share of 24%, an increase of 4 percentage points year-on-year [3]. - The sales volume for various product categories showed substantial growth: monitor sales increased by 18%, notebook sales by 71%, automotive sales by 61%, mobile phone sales by 51%, and specialized display market sales saw significant growth [3].

Core Viewpoint - Hon Hai Precision Industry Co., Ltd. (also known as Foxconn) reported disappointing performance in Q2 2023, with expectations for Q3 indicating a decline in communications product shipments, primarily due to earlier inventory buildup to avoid U.S. tariffs [1][2] Group 1: Q2 Performance and Q3 Outlook - In Q2 2023, Hon Hai's performance was below expectations, with a forecast for Q3 indicating a seasonal decline in communications products, which are primarily related to iPhone assembly [1] - Analysts noted that this decline is unusual and may be attributed to Apple's strategy of pulling forward orders in the first half of the year to mitigate tariff risks [1] - Typically, September marks the launch of new iPhone models, which boosts revenue for Hon Hai and other manufacturers; however, the current outlook suggests a "weak peak season" for Q3 [1] Group 2: Revenue Composition and Impact - As of Q2 2023, Hon Hai's revenue composition was as follows: information products accounted for 13%, consumer electronics for 7%, and communications products for 60%, with other businesses making up 20% [1] - Given the significant revenue share of communications products, a decline in this segment is expected to lead to an overall revenue decrease for Q3, contradicting the typical seasonal growth [1] - The usual revenue recognition from new iPhone launches in September is anticipated to be less impactful this year due to the cautious outlook on overall iPhone demand [2]