TCL Display Technology Holdings Limited Announces 2015 Annual Results
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Sales Volume Slightly Increased to Approximately 58.4 Million Units Strengthen Sales of High-end Products to Brings High Profitability
(10 March 2016, Hong Kong) TCL Display Technology Holdings Limited ("TCL Display" or the "Group", Stock Code: 334) is pleased to announce its results for the twelve months ended 31 December 2015 ("the Year").
In the face of continued weakened global economy, the Group recorded a revenue of approximately RMB2.24 billion during the Year, representing a decrease of approximately 14.2% as compared to the twelve months ended 31 December 2014. Sales volume during the Year slightly increased by approximately 1.3% to approximately 58.4 million units compared to last year. Such decrease in revenue was primarily attributable to the price cuts caused by the intense competition in LCD module market during the Year, and the gross profit margin of the Group was approximately 6.2%. Excluding the one-off listing expense, the Group recorded an adjusted net profit of approximately RMB72.6 million for the Year, representing a decrease of 41.8% from that of approximately RMB125 million last year.
During the Year, the revenue derived from Hong Kong and the PRC, the major markets of the Group, were approximately RMB1.06 billion and approximately RMB1.11 billion respectively, which accounted for an aggregate of approximately 96.8% of the total revenue of the Group. Besides, the Group further deepened the collaboration with LG, a globally renowned consumer electronics Korean brand, which brought significant increase in the sales revenue of the Group from Korean market, which increase 102% to approximately RMB72 million for the twelve months ended 31 December 2015.
The Group is primarily engaged in the R&D of and supply of LCD modules for various reputable international and domestic mobile phone and tablet manufacturers on an ODM basis. In 2015, consumer sentiment has been continually weakened by the weak and unstable global economy as well as the slowdown of the macro economy, which has adversely affected the global display module market. The display module market has also shown signs of growth downturn after rapid development in the past few years. During the Year, the Group's revenue from feature phone LCD module products (size < 3.5") and smart phones LCD module products (size 3.5" - 6") were approximately RMB207 million and approximately RMB1.85 billion respectively, which decreased by 24.5% and 15.7% year-on-year respectively. On the other hand, benefited from the increased customer demand on larger-sized smart device display module, revenue from the Group's other mobile device LCD module products (size > 6") increased 30% to approximately RMB182 million during the Year.
Looking ahead to 2016, the global economic outlook remains uncertain. In view of the continued weakness of the global economy and the on-going economic restructuring in the PRC, the growth in the mobile smart device market will continue to slow, and the intensifying market competition will put further pressure on product price. Meanwhile, the industry is in a phase of in-depth integration and upgrading, leading to an increase in market concentration. Facing the complex and volatile business environment, the Group will strive to identify new customers, optimise its product structure and strengthen product development capabilities, with a view to meeting the market demand with its better and higher-end products.
In order to maintain the competitiveness of the Group's products, the Group is committed to enhancing its capability in product and technology development. In response to the aspiration of smart device users in higher display quality and power efficiency, on-cell embedded module products was put into mass production by the Group in first quarter of 2015. As the supply of low-temperature poly-silicon (LTPS) glass panel is expected to increase in the second half of 2016, the Group is confident that stable supply will be secured to meet market needs. On-cell and LTPS LCD module products are projected to increase their proportion in the Group's turnover and should lift up sales and gross profit of the Group. Moreover, the development efforts on In-cell embedded module products has also borne fruits. Mass production has commenced and the first shipment is scheduled for delivery in the first half of 2016.
Mr. Yuan Bing, the Chairman of TCL Display, expressed, "In 2016, apart from reinforcing collaboration with existing customers and strengthening business cooperation with end-customers, the Group will also strive to explore new clients in order to boost sales and expand market share. We will continue to increase investment in product development, and develop more diversified laminated module products through joint research and development with our core clients to maintain our products' competitiveness. As demand for higher-end laminated module products increases, we expect to maintain a sustained growth in the sales of display module products with full lamination which shall become the Group's driver of growth in the future."
The Group's revenue by product segments and their respective year-on-year change during the Year are as follows:
The Group's revenue by geographical regions during the Year are as follows:
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About TCL Display
Headquartered in China, TCL Display Technology Holdings Limited (HKSE stock code: 334) is one of the major providers of small-to-medium-sized display modules (<=10.1") in the region. TCL Display primarily engaged in the research and development, manufacturing, sales and distribution of LCD modules mainly for mobile phones on an ODM basis. Smartphone LCD module products of TCL Display are welcomed by domestic and overseas manufacturers with sales volume ranking among the top.
For more information, please visit its website at www.tcldisplay.com.
Issued by Cornerstones Communications Ltd. on behalf of TCL Display Technology Holdings Limited. For further information, please contact:
Cornerstones Communications Ltd.
Prudence Lai / Mona Chow / Wendy Lau / Edward Siu
Tel: (852) 2903 9291 / 2903 9289 / 2903 9286 / 2903 9299
Email: tcl.display@cornerstonescom.com
End of Press Release
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