Core Viewpoint - AI is transitioning from concept to deep industrialization, becoming a key driver for future growth, as emphasized by TCL's founder and chairman, Li Dongsheng, at the 2025 TIC [1] Group 1: Industry Landscape - TCL is shifting resources towards the white goods sector to compete against traditional giants like Midea, Gree, and Haier, as well as internet brands like Xiaomi [1][4] - The white goods market is characterized by a "Matthew effect," where the strong get stronger, making TCL's ambition to enter the top tier more urgent [4][10] Group 2: AI Implementation - TCL aims to utilize AI in practical applications for air conditioners, refrigerators, and washing machines, addressing the industry's pain points of "pseudo-intelligence" [3][5] - The company focuses on energy-saving solutions, achieving a 40% reduction in energy consumption for air conditioners through a combination of small models and reinforcement learning [5][9] Group 3: Product Innovations - TCL's washing machines tackle the "iron triangle" of speed, cleanliness, and energy efficiency, achieving a 5% reduction in energy consumption and a 10% decrease in washing time [5] - The refrigerator features dual magnetic preservation technology and a deep freeze function at -40°C, enhancing food preservation for up to 15 days [5] Group 4: User Experience - TCL has integrated AI voice assistants to simplify user interaction, allowing for natural language control of appliances [6] - The company offers tailored solutions for different scenarios, such as AI sleep mode for air conditioners and AI smart washing for washing machines [6] Group 5: Competitive Advantages - TCL's advantages stem from group-level technology reuse and channel integration, allowing for stable supply and cost control amid market fluctuations [9][10] - The company has established a comprehensive channel and after-sales service team, comparable to Midea and Haier, enhancing its competitive edge [9][10] Group 6: Market Position and Goals - TCL aims to rapidly enter the mid-to-high-end market, with a focus on promoting its ice-wash products [11] - The company recognizes challenges such as brand recognition and global market expansion, acknowledging a gap in technical capabilities compared to international benchmarks [13][14]

Financial Performance - In Q1 2025, the company achieved revenue of 4.6 billion CNY, a year-on-year increase of 9.58%, marking nine consecutive quarters of positive growth [2] - The net profit attributable to shareholders reached 302 million CNY, up 33.98% year-on-year, with 15 consecutive quarters of double-digit growth [2] - The net cash flow from operating activities was 578 million CNY, reflecting a year-on-year growth of 33.33% [2] Debt and Financial Health - As of March 31, 2025, the company's asset-liability ratio was 72.76%, a decrease of 3.45 percentage points from the end of 2024, indicating a stable financial condition [2] Production Capacity - The company's production capacity is primarily located in Zhongshan and Hefei, with a high utilization rate [3] - The annual production capacity of the subsidiary, Oma Refrigerator, is 2.8 million high-end refrigerators, with the first phase achieving 85% of its designed capacity [3] - A new investment of up to 153 million CNY for upgrading refrigerator and washing machine production capacity was completed in April 2025 [3] Global Strategy - The company aims to enhance its global presence by focusing on AI smart home appliances and expanding into emerging and mid-to-high-end markets [4] - Strategies include launching innovative products and increasing brand awareness through international exhibitions and sports marketing [4] Dividend Policy - The company currently has negative retained earnings and does not meet the profit distribution conditions as per the Company Law and Articles of Association [5] - Future dividends will be considered once the company meets the necessary conditions, with a commitment to return value to shareholders [5] Shareholder Relations - The decision not to repurchase shares from minority shareholders of Oma Refrigerator is based on maintaining current equity arrangements to incentivize management and achieve mutual benefits for all stakeholders [6]