HONG KONG, June 18 /PRNewswire-Asia/ -- TCL Multimedia Technology Holdings Limited (the "Group"; HKSE: 01070) today announced sales volumes for its TV and AV products in May and the first five months in 2010.
Benefiting from a number of major events including the Shanghai Expo, the FIFA World Cup in South Africa and the 2010 Guangzhou Asian Games, together with the extension of the "Household Appliances Subsidy Scheme" by the PRC government, TCL Multimedia's LCD TV sales volume in the first five months of 2010 increased 25.2% Year-on-Year to 2,894,105 sets. LCD TV sales volume in May decreased by 22.4% Year-on-Year to 400,407 sets mainly because the Group allocated more resources on promoting sales of its own branded products and contribution from Strategic OEM business to the Group's overall business therefore further reduced. Moreover, the Group ceased selling the RCA brand TVs in North American Markets according to its brand strategy and sales volume in this region was adversely impacted in short term. Excluding sales volume achieved from North American Markets and Strategy OEM business, the Group's LCD TV sales volume in May would have increased by 42.2% Year-on-Year.
LCD TV sales volume in the PRC Market increased by 33.5% Year-on-Year in the first five months. As the Group carried out effective World Cup marketing campaigns, LCD TV sales volume in Emerging Markets and European Markets soared by 461.7% and 194.4% respectively in May from a year ago. Meanwhile, CRT TV sales volume in the Emerging Markets advanced by 126.1% in May and 158.2% during the first five months as the Group implemented new sales strategies in those markets. Sales volume of the Group's AV Products in the first five months decreased by 8.9% to 6,434,677 units.
Looking ahead into the second half, as the PRC government extended the "Home Appliances Replacement Scheme" to 28 provinces and cities effective from June, and a series of major events like the 2010 Guangzhou Asian Games will be held in the second half of this year, the management believes that the PRC's LCD TV market, especially that for LED TVs, will continue to grow rapidly. The Group will seize this opportunity to promote its high-end TV products and enhance its sales by leveraging on its extensive sales network and its position as an official partner of the 2010 Guangzhou Asian Games. Meanwhile, the LED panel module production line jointly owned by the Group and Taiwan AU Optronics will commence operation in the third quarter. This will significantly enhance the competitiveness of its LED TVs. The Group is streamlining and restructuring various aspects of its business management, including market, R&D, supply chain, production, sales and cost in order to achieve greater operating efficiency. Management targets to complete the restructuring in 2010 and its effects will gradually be reflected in the Group's operating results in the future.
May 2010 (Pre-audited Data)
YoY YoY
May 2010 May 2009 Change Jan- May Jan- May Change
(%) 2010 2009 (%)
LCD TV 400,407 516,062 -22.4% 2,894,105 2,311,044 25.2%
CRT TV 382,606 312,108 22.6% 2,441,482 1,964,288 24.3%
Total TV
Shipments 783,013 828,170 -5.5% 5,335,587 4,275,332 24.8%
AV Products 1,334,460 1,696,978 -21.4% 6,434,677 7,063,162 -8.9%
About TCL Multimedia
TCL Multimedia Technology Holdings Limited is one of the largest TV manufacturers globally and its products are sold all over the world. Headquartered in China, TCL Multimedia operates its manufacturing plants and R&D centres across all major continents. The Group's largest shareholder is TCL Corporation.
For investor and media enquiries:
PRChina
Henry Chik
Tel: +852-2522-1838
Email: hchik@prchina.com.hk
PRChina
David Shiu
Tel: +852-2522 1368
Email: dshiu@prchina.com.hk
