TCL Electronics (1070) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 rose 20.4% year-on-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.

• Strong performance was driven by mid-to-high-end strategy, global expansion, and robust growth in innovative businesses, especially photovoltaic and smart home segments.

• Maintained global leadership in TV shipments, ranking No.2 worldwide, with significant gains in Mini LED and large-sized TVs.

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

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

Financial highlights

• Gross profit increased 16.0% year-on-year to HK$8,366 million; overall gross margin was 15.3%, down 0.6 percentage points due to higher photovoltaic revenue share.

• Profit after tax rose 60.5% to HK$1,048 million; adjusted profit attributable to owners up 62.0% to HK$1,060 million.

• Earnings per share: HK45.14 cents (basic), HK43.04 cents (diluted).

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

• Cash and cash equivalents at HK$11,442 million, up 30.4% year-on-year.

Segment performance

• Display business revenue up 10.9% to HK$33,419 million; large-sized display revenue up 9.4% to HK$28,352 million; small- and medium-sized display revenue up 21.3% to HK$4,563 million.

• Mini LED TV shipments grew 176.1% year-on-year; QLED TV shipments up 73.7% year-on-year.

• Innovative business revenue up 42.4% to HK$19,875 million, led by photovoltaic business revenue up 111.3% to HK$11,136 million.

• Internet business revenue up 20.3% to HK$1,458 million, with overseas revenue up 46.3% and gross margin at 54.4%.

• Smart commercial display revenue up 9.4% to HK$504 million.