HONG KONG, March 10 /PRNewswire-Asia/ --
FINANCIAL HIGHLIGHTS
Audited results for the year ended 31 December
(HK$ Thousand) 2009 2008 Change
Turnover 4,360,886 4,538,281 -4%
Gross Profit 948,690 811,618 +17%
EBITDA before effect of
convertible bonds* 162,807 91,253 +78%
Net profit before effect of
convertible bonds 87,881 372 +23524%
Changes in fair value of the
derivative component of
convertible bonds (58,037) 68,078 N/A
Interest on convertible bonds (6,839) (39,959) -83%
Profit Attributable to Owners
of the Parent 23,005 28,491 -19%
Basic Earnings per share
(HK cents) (as restated) 2.51 3.11 -19%
Proposed final dividend per
share (HK cents) 3.50 -- N/A
* Effects of Convertible Bonds refer to changes in fair value of
derivative components of and interest on Convertible Bonds.
TCL Communication Technology Holdings Limited ("TCL Communication" or the "Company") (HKSE stock code: 02618) today announced audited financial results of the Company and its subsidiaries (the "Group") for the year ended 31 December 2009 ("Review Period").
During the Review Period, the Group reported revenue of HK$4.36 billion, a decrease of 4% from 2008. Operating performance continued to improve, with revenue for the fourth quarter increasing by 82% year-on-year to HK$1.96 billion and gross profit margin soaring to 22% from 18% in 2008. During the Review Period, the Group achieved a profit before effect of convertible bonds amounting HK$88 million, and the profit attributable to equity holders of the parent company was HK$23 million and basic earnings per share were HK$2.51 cents.
The Directors recommended the payment of a final dividend of HK3.5 cents (2008: Nil) per share in respect of the year ended 31 December 2009 to shareholders whose names appear on the Register of Members at the close of business on 10 May 2010. Subject to the approval of the shareholders at the forthcoming Annual General Meeting, the final dividend will be paid on or about 20 May 2010.
The Group successfully completed the buyback of all outstanding convertible bonds in 2009. As a result, the financial position of the Group was greatly improved. Moreover, the Group also completed a right issue in January 2010 and successfully raised proceeds of approximately HK$358 million. The proceeds will be used for the expansion of existing production and supporting facilities and as additional working capital to cope with an expected sales increase from the launch of new Original Design Manufacturer (ODM) products.
Mr. Guo Aiping, Chief Executive Officer of TCL Communication, commented, "The Group completed a business adjustment in 2009. The resources of our two major brands Alcatel and TCL, such as research and development, production and marketing, were combined to optimize the business structure. We further enhanced cost control and risk management and stepped up efforts to strengthen cooperation with major telecommunications operators. As a result, the Group's competitiveness was substantially improved, enabling us to more swiftly respond to developments in the market and changes in demand and to capture opportunities brought about by the global economic recovery in driving the business growth. Moreover, we solidified our existing low-end handset and accessory business and made good progress in exploring the mid to high-end product segments."
Total sales volume of handsets and accessories reached 16.1 million units in 2009, an increase of 18% over 2008. As macro economic conditions improved, the Group's sales performance started to recover in June and continued to improve. Sales volume grew remarkably in the fourth quarter of 2009, increasing by 100% to 6.8 million units from the same period of 2008. Overall sales performance resumed to the levels seen before the financial tsunami.
Overseas sales volume reached 13.3 million units during the period under review, an increase of 12% over 2008 and accounting for 83% of total sales volume. In China, sales volume totaled 2.8 million units, an increase of 61% and accounting for 17% of total sales volume. The Europe, Middle East and Africa Market ("EMEA") and the Latin America Market ("LATAM") remained the biggest revenue contributors. Sales volume in EMEA totaled 6.4 million units in 2009, a 19% increase over 2008, while that in LATAM also reached 6.4 million units, a year-on-year increase of 7%. Meanwhile, the sales performance in the Asia Pacific Market was also very promising.
The Group introduced a total of 17 models of Alcatel handsets and two models of TCL handsets during 2009. Through cooperation with international brand names in the fashion and ornament sectors, it enriched handset design and made its product mix more diversified and competitive. While the two mobile messaging handsets, i.e., the entry level touch tablet OT-708（「One Touch MINI」）and the QWERTY keypad phone OT-800 ("Jade"), both received enthusiastic responses from the market and were the best selling products of the Group in 2009.
Looking ahead into 2010, Mr. Li Dongsheng, Chairman of TCL Communication, said, "Following a steady recovery in the global economy, the handset industry has bottomed out and will experience modest growth. With an aim to enhance product competitiveness and sales performance, the Group will further strengthen cooperation with major telecommunications operators and persist in improving research and development and product design. While consolidating the low-end handset and accessory business, the Group will prudently explore mid to high-end markets and contemplates to launch Android-based and touch screen handsets in 2010."
Mr. Li Dongsheng said, "During the period under review, the Group vigorously expanded our ODM operation and achieved satisfactory results. We will continue to cultivate deeper cooperation with major telecommunications operators to create sales orders. We believe the ODM business will experience robust growth in 2010 and hence drive our overall sales volume and operating efficiency."
Sales volume breakdown by location:
Handset and Accessories Unit Sales for the year ended 31 December
('000 units) 2009 2008 Change (%)
Overseas 13,351 11,969 +12%
The PRC 2,772 1,726 +61%
Total 16,123 13,695 +18%
About TCL Communication
TCL Communication is engaged in the design, manufacture and marketing of a wide range of the mobile handsets for the PRC and international markets. The Group's handsets are sold in the PRC, Europe, the Middle East and Africa ("EMEA"), Latin America ("LATAM") and Asia Pacific ("APAC"). They are mainly marketed under the "TCL" and "Alcatel" brands. For more information, please visit the Company's website: http://tclcom.tcl.com .
Investor and media enquiries:
TCL Communication Technology Holdings Limited
Andrew Yip
Tel: +86-755-3331-3019
Email: andrew.yip@tcl.com
PRChina Limited
Jane Liu
Tel: +852-2522-1838
Email: jliu@prchina.com.hk
PRChina Limited
Henry Chik / David Shiu
Tel: +852-2522-1368 / 2521-2823
Email: hchik@prchina.com.hk
dshiu@prchina.com.hk