TCL TECH.(SZ:000100)2022-12-04 10:22Financial Performance - TCL Group achieved a revenue of CNY 411.6 billion in the first three quarters of 2019, representing a year-on-year growth of 19.2% [1] - Net profit reached CNY 33.9 billion, with a year-on-year increase of 25.8 billion, marking a growth of 19.2% [1] - The company's net profit per employee increased from CNY 2.85 million to CNY 7.61 million, while the expense ratio decreased from 16.1% to 13.0% [2] - Operating cash inflow was CNY 76.1 billion, and the asset-liability ratio improved from 68.4% to 60.3% [2] R&D and Innovation - TCL Group invested CNY 38.9 billion in R&D from January to September 2019, submitting 1,527 PCT international patent applications [2] - The company launched the "Starry Screen" Mini LED backlight product, significantly enhancing contrast and display clarity [2] - TCL Huaxing's overall shipment area is expected to grow at a CAGR of 18% over the next five years, driven by the ramp-up of new production lines [2] Market Position and Strategy - TCL Huaxing achieved a revenue of CNY 245.6 billion in the first nine months of 2019, with a year-on-year growth of 28.4% [3] - The company maintained a leading position in the global market, with a 1st place market share in 55-inch TV panels and 2nd place in LTPS mobile panels [6] - TCL Huaxing's EBITDA margin was 26.5%, despite a net profit decline of 28.7% [3] Industry Trends and Outlook - The large-size panel industry is expected to see a compound annual growth rate (CAGR) of around 8% due to increasing demand from new applications and events like the Tokyo Olympics [4] - The supply side is stabilizing, with inventory levels returning to reasonable levels and panel prices stabilizing since Q4 2019 [4] - The transition towards high-definition and large-size displays is expected to continue, with TCL Huaxing positioned to benefit from these trends [6] Corporate Strategy and Future Plans - The company plans to focus on core semiconductor display and material businesses, aiming for vertical and horizontal integration within the industry [3] - TCL Group is enhancing its global manufacturing capabilities, with a new integrated smart manufacturing park in India expected to produce 8 million large-size panels annually [2] - The company is actively seeking merger and acquisition opportunities in core technology fields to strengthen its competitive advantage [3]