TCL Electronics (1070) investor relations material

Executive summary

• Revenue grew 15.4% year-over-year to HK$114.58 billion, with net profit up 36.7% to HK$2.53 billion.

• Adjusted profit attributable to owners rose to HK$2.51 billion, up 56.5% year-over-year.

• Maintained a 50% dividend payout ratio, with dividend per share up 54.2% year-over-year and a proposed final dividend of HK49.80 cents per share.

• Strategic focus on globalisation, premiumisation, and advances in AI, display, and clean energy businesses, including becoming a Worldwide Olympic Partner in 2025.

• Achieved top global rankings in TV shipments, Mini LED, and AR/AI glasses markets.

Financial highlights

• Gross profit increased 15.1% to HK$17.90 billion; gross margin was 15.6%.

• Expense ratio decreased by 0.7 percentage points to 11.1%.

• Cash and cash equivalents stood at HK$13.52 billion at year-end, up 54.2%.

• Return on equity rose to 13.8% from 9.5% year-over-year.

• Earnings per share rose to HK103.41 cents (basic), up from HK72.39 cents.

Outlook and guidance

• Global TV market expected to see Mini LED TV CAGR above 22% from 2025–2030.

• White goods and new energy segments identified as major growth drivers, with significant room for market share expansion.

• Photovoltaic business targets accelerated overseas expansion and operational efficiency, with plans to scale in Europe.

• Internet and AR/VR/AI markets forecast strong growth, with companion robot and smart glasses markets showing high CAGR.

• 2025–2027 equity incentive plan targets CAGR of 20.1% in adjusted net profit and commitment to sustainable, high-quality, long-term shareholder returns.