TCL Multimedia Raises 2012 Sales Target for LCD TVs to 15.20 Million Sets

HONG KONG, June 7, 2012 /PRNewswire-Asia/ -- TCL Multimedia Technology Holdings Limited ("TCL Multimedia" or "the Group", HKSE stock code: 01070) today announced the sales volume of its TV and AV products for May 2012. The Group's sales of LCD TVs for the first five months of 2012 amounted to 5,636,466 sets, up 72.1% year-on-year, well above the average growth rate in the TV industry. Taking into consideration its current sales performance and continued strong sales momentum, the Group announced that it has raised its 2012 sales target of LCD TVs from 13.80 million sets to 15.20 million sets, an increase of approximately 40% compared to 10.86 million LCD TVs sold in 2011. Meanwhile, the Group will continue to enhance its profitability through a number of initiatives that include further increasing the proportion of sales of its high-end products and leveraging the cost advantages brought by the unique vertical integration model and tight cost control. The Group also expects to benefit from the newly announced energy-saving home appliance subsidy program.

The Group's monthly sales of LCD TVs in May 2012 amounted to 1,006,457 sets, up 80.3% year-on-year, of which sales of LED backlight LCD TVs reached 665,940 sets, accounting for 66.2% of total LCD TV sales. The Group achieved both strong growth in sales volume and breakthroughs in terms of market share. According to the latest DisplaySearch report, the Group's global LCD TV market share increased from 4.9% to 5.6% in the first quarter of 2012, bringing its ranking up to No. 5 from No. 7 in 2011. This marks the first time a Chinese TV maker has been ranked in the top five in terms of global LCD TV market share.

In the PRC Market, the Group continued to improve its product mix and was active in promoting 3D TVs as well as smart & internet TVs. As a result, 455,831 sets of LCD TVs were sold in May, up 49.4% year-on-year. Sales volume of LED backlight LCD TVs as a percentage of total LCD TV sales volume in the PRC Market amounted to 65.1%. Sales of smart & internet TVs and 3D TVs reached 195,896 sets and 95,030 sets, respectively, accounting for 43.0% and 20.8% of the total LCD TV sales volume in the PRC Market, respectively.

In the Overseas Markets, sales of LCD TV increased by 117.6% year-on-year to 550,626 sets in May. In the Emerging Markets, the Group continued to expand its LCD TV and LED backlight LCD TV businesses, to improve its product portfolio and to leverage its successful marketing strategies in bringing sales of LCD TV in May up 149.9% year-on-year to 348,900 sets. The Emerging Markets remain the Group's major overseas market in terms of sales volume and have become a new growth driver following the PRC Market.

The Group sold 1,205,153 sets of AV products in May, down 29.2% from the same period of the previous year.

Mr. Zhao Zhongyao, Chief Executive Officer of TCL Multimedia, said, "Although the global economy and the TV market face multiple challenges, we continued to enhance 'speed and efficiency' in our operational and marketing strategies, focusing on strengthening product competitiveness and optimizing our sales channels. As a result, the Group's sales of LCD TV for the first five months of 2012 amounted to 5,636,466 sets, up 72.1% year-on-year. Considering the Group's current sales performance and continued strong sales momentum, we have decided to raise our 2012 sales target for LCD TV to 15.20 million sets."

While recording significant growth in sales volume, the Group is also committed to further increasing the proportion of sales of its high-end products by optimizing its product mix, and also expects to benefit considerably from the newly announced energy-saving home appliance subsidy program. The Chinese government has just announced the program in which RMB26.5 billion in subsidies will be allocated to promote the purchase of five types of home appliances, including LCD TVs, which fulfill energy-saving standards. A total of 259 TCL's LCD TV models were selected to be subsidized items, making it the company with the most LCD TV products included on the list. The Group's full range of 3D smart "cloud" TVs were also included on the list. All LED backlight LCD TV products that the Group launched this year satisfy the National Level 1 Energy Consumption Standard, while the Group's entire range of LCD TV products will be designed in line with this standard in the future. TCL Multimedia's 2012 sales target for LCD TV is 15.20 million, of which 8.20 million LCD TVs are expected to be sold in the PRC Market. Therefore, the Group expects to benefit considerably from the implementation of the program, which will provide a further boost to growth in sales of its high-end TV products.

"In addition to boosting growth in sales, the Group's management will focus on enhancing profitability," Mr. Zhao continued. "Looking ahead, the Group will continue to optimize its product mix, improve operational efficiency and enhance its profitability through a number of initiatives, including further increasing the proportion of sales of its high-end products and leveraging the cost advantages brought by the unique vertical integration and tight cost control."

The Group is committed to focusing on "integration, innovation and internationalization" and further optimizing its TV industry chain. The 8.5-generation LCD panel production plant, operated by Shenzhen Huaxing Photoelectrics Technology Company Limited -- a joint venture among TCL Corporation (the Group's ultimate holding company), the Shenzhen Municipal Government and Samsung (South Korea) -- has commenced production. The advantages brought by the acquisition of TCL Optoelectronics Technology (Huizhou) Co. Ltd.'s LCD module business will synergize the vertical integration of the upstream and downstream industry chain channels, which will in turn deliver strategic support for the stable supply of raw materials and cost control, and will also improve the Group's core competitiveness in the TV industry.

About TCL Multimedia

TCL Multimedia Technology Holdings Limited (stock code: 01070.HK), headquartered in China, is one of the leading players in the global TV industry. TCL Multimedia is engaged in the R&D, manufacture and distribution of consumer electronic products comprising television and audio visual products. Its ultimate shareholder is TCL Corporation. For more information, please visit its website: http://multimedia.tcl.com.

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