TCL Electronics Holdings (1070) investor relations material

Executive summary

• Revenue rose 20.4% year-over-year to HK$54,777 million, with profit attributable to owners up 67.8% to HK$1,090 million and adjusted profit up 62.0% to HK$1,060 million, driven by mid-to-high-end strategy and global expansion.

• Gross profit increased 16.0% to HK$8,366 million, supported by product mix improvements and cost control.

• Net gearing ratio remained at 0.0%, with cash and cash equivalents up 30.4% to HK$11,442 million.

• Strong growth in innovative businesses, especially photovoltaic and smart home segments, and robust performance in overseas and mid-to-high-end markets.

• No interim dividend declared for the period; final dividend for 2024 was HK31.80 cents per share (50% payout ratio).

Financial highlights

• Gross profit: HK$8,366 million (+16.0% YoY); overall gross margin: 15.3% (-0.6pp YoY); display business revenue: HK$33,419 million (+10.9% YoY); small- and medium-sized display revenue: HK$4,563 million (+21.3% YoY).

• Profit after tax: HK$1,048 million (+60.5% YoY); adjusted profit attributable to owners: HK$1,060 million (+62.0% YoY); basic EPS: HK45.14 cents.

• Cash and cash equivalents: HK$11,442 million (+30.4% YoY); net gearing ratio: 0.0%.

• Dividend payout ratio reached 50% for 2024.

• R&D costs increased 5.6% to HK$1,154 million, reflecting continued investment in display and AI technologies.

Outlook and guidance

• Global TV demand expected to remain stable, with large-screen and Mini LED products anticipated to drive growth.

• Focus on "Mid-to-High-End + Globalisation" strategy, increasing AI-related R&D, and accelerating AR/XR smart glasses and companion robots.

• Commitment to sustainable, high-quality growth and revenue diversification.

• Operational strategy to optimize product and channel mix, control expenses, and enhance efficiency with AI.

• Strategic focus on reinforcing new business growth curves and expanding overseas appliances.