TCL Technology (000100) Q4 2024 earnings summary

Executive summary

• Operating revenue reached RMB 164.8 billion, down 5.5% year-over-year; net profit attributable to shareholders was RMB 1.56 billion, down 29.4% year-over-year; operating cash flow increased 16.6% to RMB 29.5 billion.

• Display business achieved record revenue of RMB 104.3 billion, up 25% year-over-year, with net profit of RMB 6.23 billion; new energy photovoltaic revenue dropped 52% to RMB 28.4 billion, with a net loss of RMB 9.82 billion.

• R&D investment was RMB 8.87 billion, 5.4% of revenue, with significant advances in OLED and MLED technologies.

• Board proposed a cash dividend of RMB 0.5 per 10 shares, totaling RMB 938.95 million.

Financial highlights

• Gross margin for display business improved to 19.15%, while new energy photovoltaics saw negative margin of -9.08%.

• Basic EPS was RMB 0.0842, down from RMB 0.1195; weighted average ROE was 2.95%, down 1.32 percentage points year-over-year.

• Total assets stood at RMB 378.25 billion, with net assets attributable to shareholders at RMB 53.17 billion.

• Net cash from operating activities was RMB 29.53 billion, up 16.6% year-over-year.

Outlook and guidance

• Display business expected to maintain rapid growth, leveraging AI and large-size trends.

• Photovoltaic business anticipates recovery as industry prices stabilize and operational transformation continues.

• Strategic focus remains on innovation-driven development, advanced manufacturing, and global operations.