#Hong Kong #TCL Electronics #Smart Devices #Profit Alert

TCL Electronics Reports Positive Profit Alert for 2024

TCL Electronics Holdings Limited (Stock Code: 01070.HK) has recently issued a favorable profit announcement, projecting a significant rise in adjusted profit for the year 2024. Based on initial reviews of the unaudited management accounts, the company estimates that its adjusted profit attributable to its owners will range between approximately HK$1.3 billion and HK$1.7 billion. This forecast represents a remarkable increase of between 62% to 112% compared to the previous year.

Factors Contributing to Profit Growth

The anticipated growth in profit is largely attributed to three key factors:

1. Strategic Vision and Organizational Restructuring: TCL's strategic focus has always been on enhancing brand value, increasing global efficiency, and leveraging technology for overall growth. The company has made impressive strides in global capacity building and organizational restructuring, providing a solid bedrock for sustained growth. By optimizing their product mix and improving marketing strategies, TCL has laid the groundwork for a vibrant organization capable of adapting to changing market demands.

2. Market Share and Revenue Increase: The company's core businesses have experienced robust growth in both market share and revenue. As TCL positions itself as a leading multinational technology company, improvements in brand perception have played a crucial role. The emphasis on high-end and large-screen products, particularly within its display segment, has significantly contributed to sales. This focus has helped TCL achieve its highest-ever revenue from its television business. Furthermore, TCL's innovative sectors continue a trajectory of high growth, enhancing competitiveness and overall results in various verticals, including photovoltaic industries.

3. Operational Efficiency: Efforts to streamline logistics and optimize the global warehousing network have resulted in substantial cost advantages. By localizing industrial capacity, TCL has improved its cost structure while maintaining strict control over operating and administrative expenses. Recent enhancements in digital transformation efforts and operational efficiency measures have also led to a noticeable reduction in the overall expense ratio, building a more resilient operational framework.

Future Strategies for 2025

Looking forward, TCL Electronics aims to maintain its focus on product excellence. This includes strengthening its global product planning capabilities and significantly increasing its investments in advanced technologies, particularly in artificial intelligence (AI). The company plans to advance its globalization strategy further by developing multi-center operations globally, thereby promoting an intelligent and eco-friendly supply chain that prioritizes consumer needs.

In summary, TCL Electronics is adeptly positioning itself as a premier smart device company on the global stage. Through continued innovation, strategic investments, and operational enhancements, TCL is committed to delivering quality and excellence to its stakeholders while fostering a sustainable, intelligent IoT ecosystem for users worldwide. The upcoming fiscal year looks promising for the company, in alignment with its strategic vision.

About TCL Electronics

TCL Electronics Holdings Limited was founded in 1999 and has established its presence on the Hong Kong Stock Exchange. The company's areas of focus include display technology, innovative business models, and internet services. With a commitment to developing a smart, healthy lifestyle for consumers, TCL aspires to become a leader in the smart technology sector, underpinned by an ongoing focus on sustainability and corporate responsibility that has been recognized through robust ESG ratings.