TCL Holdings and the Share Award Scheme Acquire over 100 Million Shares of TCL Electronics (01070.HK)

Looking Forward with Great Confidence in the Growth Value of the Company

HONG KONG, Oct. 12, 2022 /PRNewswire/ -- TCL Electronics Holdings Limited ("TCL Electronics" or the "Company", 01070.HK) is pleased to announce that, since the publication of the Company's interim results for the six months ended 30 June 2022 on 19 August 2022, its parent company T.C.L. Industries Holdings Limited ("TCL Holdings") has acquired over 25 million shares of the Company. The shareholding increase announcement was made by TCL Holdings in August 2021. During the period from the publication date of the Company's 2021 annual results announcement (i.e. 11 March 2022) till now, TCL Holdings has acquired over 90 million shares of the Company, increasing its interest in the Company by approximately 3.21 percentage points. At present, TCL Holdings is interested in over 1.35 billion shares in the issued share capital of the Company, representing approximately 54.03% of the total number of issued shares of the Company.

In addition, since March 2022, the management of the Company has instructed the trustee of the share award scheme of the Company ("Share Award Scheme") to acquire over 16 million shares of the Company in the open market as for the share award scheme. Ms. Du Juan, Chairperson of the Board of the Company, also purchased 1 million shares of TCL Electronics in her personal name.

TCL Holdings and the management of the Company is of the view that TCL Electronics made remarkable breakthroughs in the mid-to-high-end market, with high-end and large-screen products taking up higher proportion and the quality of operations significantly boosted. At the same time, by proactively propelling beyond its business boundaries and accelerating the growth of its innovative business such as the PV business, the Company will deliver long-term sustainable growth and value returns for the shareholders of the Company. TCL Holdings is confident in the current and future prospects and growth value of TCL Electronics and it may further increase its interest in the Company taking into account of the market condition.

The Company's overall revenue reached HK$33,679 million in the first half of 2022, and thanks to the optimised product structure and the dropping raw material prices, the Company's gross profit increased by 3.9% year-on-year to HK$5,782 million, and the overall gross profit margin improved by 1.3 percentage points year-on-year to 17.2%. For the six months ended 30 June, 2022, the Company's profit attributable to owners of the parent after deducting one-off non-operating items reached HK$257 million, an increase of 4.9% year-on-year.

Relying on TCL's global brand power, vertical integration of the entire industry chain and global channel advantages, the display business of TCL Electronics maintained its leading position in the global market in the first half of 2022, with the optimized product structure driving profits against headwinds in its core business. Global sales of TCL smart screens reached 10.15 million sets in the first half of 2022, with sales of 65-inch and above smart screens up by 36.9% year-on-year to 1.53 million sets. According to the data from Omdia, in the first half of 2022, the market share of TCL smart screen in terms of sales volume in the global LCD TV market increased by 0.4 percentage points to 11.5%, ranking second in the world and first among Chinese brands.

At the same time, TCL Electronics actively broadened its business boundary and leveraged on its upstream and downstream industry strengths. The Company started with household PV business and has quickly stepped onto the fast track of distributed PV business through expansion into industrial and commercial field. It strives to become one of the top-tier players in domestic distributed PV market, and is well prepared for globalization. In the first half of 2022, the Company's PV business achieved a revenue of HK$172 million, its monthly installed orders and revenue achieved exponential growth.

Looking to the future, the Company will continue to forge ahead, adhere to the development strategy of "Value Led by Brand with Relative Cost Advantage ", further drive globalization and technological transformation, focus on the three core competencies of "Display, Connection and Channels", and vigorously expand its new track of all-category layout of "intelligent IoT ecosystem" to provide global users with all-scenario smart and healthy living services and strive to develop into a world-leading enterprise of smart devices.

About TCL Electronics

TCL Electronics Holdings Limited (01070.HK, incorporated in the Cayman Islands with limited liability) was listed on the mainboard of the Hong Kong Stock Exchange in November 1999. It is engaged in display business, innovative business and internet business. TCL Electronics actively transforms and innovates under the strategy of "Value Led by Brand with Relative Cost Advantage". Focusing on the mid-to-high-end markets around the world, the Company strives to consolidate the "intelligent IoT ecosystem" strategy and is committed to providing users with an all-scenario smart and healthy life while developing into a world-leading smart technology company. TCL Electronics is part of the Shenzhen-Hong Kong Stock Connect program and is included in the Hang Seng Stock Connect Hong Kong Index, the Hang Seng Composite MidCap & SmallCap Index and the Hang Seng Corporate Sustainability Benchmark Index. Besides, it has received Hang Seng Index's ESG rating of A for five consecutive years since 2018.

For more information, please visit the investor relations web page of TCL Electronics at http://electronics.tcl.com or follow the WeChat Official Page of TCL Electronics investor relations.

SOURCE TCL Electronics Holdings Limited