TCL Corporation Reports Net Profit of 2.61 Billion Yuan for First Three Quarters of 2015
SHENZHEN, China, Oct. 27, 2015 /PRNewswire/ -- TCL Corporation announced its financial results for the first three quarters of 2015. The group booked revenue of 74.110 billion yuan (approx. US$11.6 billion) during the reporting period, up 7.08% year-on-year. Net profit stood at 2.610 billion yuan (approx. US$411 million), including a net profit of 2.065 billion yuan (approx. US$325 million) attributable to the shareholders of the listed companies.
In the first nine months of 2015, the group's net profit was mainly attributable to China Star Optoelectronics Technology (CSOT). During the reporting period, CSOT realized net profit of 1.791 billion yuan (approx. US$282 million). TCL's communication business and Finance Services Business Division achieved net profit of 614 million yuan (approx. US$96.7 million) and 556 million yuan (approx. US$87.6 million), respectively.
Despite a downturn in the LCD panel industry overall, CSOT maintained steady growth as a result of implementing a strategy whereby the firm shifted the focus from efficiency to products as a means of preserving competitiveness. CSOT achieved sales revenue of 12.711 billion yuan (approx. US$2 billion) and net profit of 1.791 billion yuan (approx. US$282 million) during the first three quarters of 2015, including an operating profit of 1.318 billion yuan (approx. US$208 million), reflecting a rise of 10.8% year-on-year. During the reporting period, CSOT maintained the leading position across the globe as a result of the capacity utilization rate of the production lines and the integrated product yield at the T1 facility as well as key operating and financial indicators. In addition, CSOT's T3 plant is now on track as planned. Once the T3 plant is put into operation, the new facility will serve to form an integrated industry chain with TCL Communication Technology and is expected to further enhance CSOT's market competitiveness.
TCL's communication business maintained its strong profitability during the reporting period. In the first nine months of this year, TCL Communication Technology achieved sales revenue of 16.303 billion yuan (approx. US$2.57 billion), up 2.02% year-on-year. Net profit reached 614 million yuan (approx. US$96.7 million), up 7.16% year-on-year. TCL Communication Technology continues to improve its market competitiveness with consistently superior capabilities in technology development and product design. TCL Communication Technology's flagship mobile phone IDOL 3 as well as the GO PLAY phone and POP STAR smartphone launched during the period resonated positively with mobile phone users. In the first nine months of this year, TCL Communication Technology's sales of mobile devices amounted to 55.395 million units, up 14.0% year-on-year.
In the first three quarters of 2015, TCL Multimedia Technology generated sales revenue of 19.494 billion yuan (approx. US$3.07 billion), up 4.17% year-on-year. However, the company saw a loss of 238 million yuan (approx. US$37.5 million) during the period. To offset the adverse impact and improve its performance, TCL Multimedia Technology adjusted its distribution channels and product mix. The proportion of sales attributable to its smart TVs and 4K TVs sold in the Chinese market increased to 51.7% and 19.2%, respectively. During the period, the company sold 95,383 curved TVs in China, representing a 20% share of the country's curved TV market. TCL Multimedia Technology said it plans to continue improving its organizational structure and product mix in a move to reduce the adverse impact from exchange rate fluctuations. The company expects improved performance for the fourth quarter of this year.
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SOURCE TCL Corporation
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