Profit Attributable to Equity Holders of the Parent Reached HK$230 million
Highlights
-- Turnover reached HK$21,098 million for the nine months ended 30
September 2009, an increase of 10.4% year-on-year
-- LCD TV sales volume surged by 105.2% year-on-year to 5.53 million sets
-- Gross profit reached HK$3,617 million, representing 21.1% growth as
compared to HK$2,987 million in the same period last year; gross profit
margin for the period was 17.1%, up by 1.5% as compared to the same
period last year
-- Profit attributable to equity holders of the parent was HK$230 million
compared to a loss of HK$255 million in the same period last year
-- The Group's new LCD TV Integration Plant commenced operations in
September 2009; estimated annual production capacity of the plant
reaches 5 million sets while significantly improving operation
efficiency and reducing production costs
HONG KONG, Oct. 28 /PRNewswire-Asia/ --
TCL Multimedia Technology Holdings Limited ("TCL Multimedia", or the "Group", Stock code: 01070) today announces the unaudited consolidated results for the nine months ended 30 September 2009.
During the period under review, the Group maintained steady growth with the advantage of its brand value, product innovation, efficient operations and supply chain management. For the nine months ended 30 September 2009, the Group recorded an unaudited turnover of about HK$21,098 million, representing an increase of 10.4% when compared to HK$19,105 million in the same period last year. Gross profit reached HK$3,617 million, representing 21.1% growth year-on-year. Profit attributable to equity holders of the parent reached a profit of HK$230 million from a loss of HK$255 million in the same period last year.
Moreover, the Group's new LCD TV Integration Plant in Huizhou, the PRC commenced operations in September 2009. Through improvement on streamlined packaging and logistic processes, the Group has not only lowered LCD TV production costs and increased overall efficiency, but has also enhanced its new products research and development capability, shortened its production cycle and accordingly improved its products and pricing competitiveness.
During the period under review, the Group's LCD TV shipments continued to grow significantly as compared with the same period last year. For the nine months ended 30 September 2009, LCD TV sales jumped 105.2% year-on-year to 5.53 million sets. In addition, LCD TV sales in the first eight months this year had already exceeded 4.18 million sets which represented the full year LCD TV sales last year. According to DisplaySearch, the Group continued to fortify its leading position in the PRC TV Market for the sixth consecutive year in terms of total TV shipments. Moreover, the Group's Home Networking business achieved impressive growth in terms of both sales volume and sales revenue. Sales volume reached 16.68 million sets, recording an increase of 24.9% year-on-year as compared to 13.36 million sets for the same period last year.
Mr. Yu Guanghui, CEO of TCL Multimedia commented, "The Group continued its strength in solid business growth amidst the most challenging market environment. At the same time, we have a sound financial position. Leveraging on such a solid business foundation and our competitive strengths, the Group adopted a series of proactive measures to broaden our customer and revenue base while enhancing cost effectiveness and efficiency."
During the period under review, the Group's LCD TV sales in the PRC Market continued to be the main growth driver. Sales volume of LCD TVs surged by 323.4% and 280.1% respectively for the third quarter and for the first three quarters, compared with that in the corresponding periods last year. In August, TCL brand was elected by CCTV as "60th Anniversary of the Founding of New China - 60 Brands Promoting China's Economy and with Impact on People's Live", indicating the Group's brand power and wide recognition by consumers in the PRC Market.
The Group continued to achieve healthy growth in the Overseas Markets. During the period under review, the Group's LCD TV sales volume increased 90.7% in the European Markets as compared to the same period last year. The North Central European market, including Poland and Norway, was the fastest growing market in this region with turnover in the third quarter increased by 131.5% year-on-year as compared to the same period last year. Market in France also maintained robust growth with turnover in the third quarter increased by 29.9% year-on-year. M10 and P10 product ranges were launched during the third quarter and well received by the market. The Group continued to expand its presence in both markets in Spain and Italy and broadened its revenue base. LCD TV sales volume in the North American Markets increased by 22.7% as compared to the same period last year, mainly driven by the expended sales to leading retail customers. For the Emerging Markets, the Group maintained stable growth by implementing a number of key initiatives to control costs and improve product qualities during the period under review. Moreover, the Group launched P10 series LCD TVs during the period under review and received good responses from the market which gained new orders from customers in Australia and the Middle East. Meanwhile, the Group provided value added services for clients and introduced an LCD TV upgrade plan and a more focused marketing strategy directed at key retailers which boosted sales volume in this region. In the Strategic OEM Market, the Group provided a cost competitive solution with high vertical integration on module resource for its customers. The Group accelerated the implementation of an e-connection system to optimize the process on its supply chain and also tightened its measures on monitoring the implementation of Energy Using Products Code in order to meet the stringent requirements of European customers for energy control in electronic products.
The Group expects that in the fourth quarter of 2009, the demand for LCD TVs in the PRC Market will remain strong with the PRC Government's continuous support for policies such as "Household Appliances Subsidy Scheme", "Home Appliances Replacement Scheme" and "Promotion of Energy Efficient Appliances" and the trend of massive market transition to LCD TVs in the PRC. With the Group's leading position in brand influence and terminal pricing in the PRC Market. Meanwhile, the high value-added internet TV ("MiTV") and LED TV will be launched as mainstream products to enhance the products' differentiation and competitiveness. Leveraging the rapid growth phase of the TV market, the Group will continue to solidify its leadership in the market and enhance products' competitiveness. The Group's new LCD TV Integration Plant enabled the Group to largely increase its production capacity, reduce production costs and increase overall efficiency through vertical integration to further enhance its core industrial competitiveness and maintain its leading position in the PRC. Moreover, the Group will closely monitor changes in the Overseas Markets demands and industry developments, so as to improve its product mix, enhance supply chain management and margin management, and to adopt different sales strategies dependent upon the regional market situations.
"Looking forward, the Group anticipates that opportunities and challenges co-exist within the TV manufacturing industry. Therefore, the Group will focus on enhancing the industrial competitiveness through simplified operations, and make all-rounded improvement on the market strategy, channel, production capacity and cost, etc., so as to increase its operating results with a goal to create greater value for our stakeholders," said Mr. Yu Guanghui, CEO of TCL Multimedia.
Sales volume by region is indicated below:
First 3 Quarters First 3 Quarters Change
in 2009('000 sets) in 2008('000 sets)
LCD TVs 5,527 2,693 +105.2%
- PRC 2,984 785 +280.1%
- Overseas 2,543 1,908 +33.3%
CRT TVs 4,080 8,428 (51.6%)
- PRC 2,278 4,407 (48.3%)
- Oveseas 1,802 4,021 (55.2%)
Total TV
sales volume 9,607 11,121 (13.6%)
AV products 16,681 13,358 +24.9%
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
Jane Liu
Tel: +852-2522-1838
Email: jliu@prchina.com.hk
PRChina
Henry Chik
Tel: +852-2522-1368
Email: hchik@prchina.com.hk
