TCL Technology (000100) Q2 2024 earnings summary

Executive summary

• Achieved H1 2024 revenue of RMB80.22 billion, down 5.78% year-over-year, but net profit attributable to shareholders surged 192.28% to RMB995 million, driven by display business recovery and cost optimization.

• Display business revenue rose 40.39% year-over-year to RMB49.88 billion, with net profit of RMB2.70 billion, while new energy photovoltaics revenue fell 53.54% to RMB16.21 billion, posting a net loss of RMB3.18 billion.

• Net cash from operating activities increased 21.28% year-over-year to RMB12.63 billion.

Financial highlights

• Basic EPS for H1 2024 was RMB0.0535, up from RMB0.0184 in H1 2023; diluted EPS was RMB0.0530.

• Weighted average ROE improved to 1.87% from 0.67% year-over-year.

• Total assets at June 30, 2024 were RMB382.33 billion, with owners’ equity attributable to shareholders at RMB52.37 billion.

• Gross margin for display business was 18.80%, up 3.52 percentage points year-over-year.

Outlook and guidance

• Display industry expected to see further supply-side optimization and steady demand growth, supporting profitability.

• Photovoltaic business remains at the bottom of the cycle; management focuses on cost efficiency and operational resilience to navigate industry headwinds.