[三季报]TCL科技(000100):2024年第三季度报告(英文版)
原标题:TCL科技:2024年第三季度报告(英文版) Stock Code: 000100 Stock Abbr.: TCL TECH. Announcement No.: 2024-080 TCL科技集团股份有限公司 TCL Technology Group Corporation Third Quarter 2024 Report October 2024 Content Section I Important Notices and Definitions ................................................................................... 3 Section II Key Financial Information .............................................................................................. 5 Section III Management Discussion and Analysis .......................................................................... 8 Section IV Shareholder Information .............................................................................................. 12 Section V Other Significant Events ................................................................................................ 15 Section VI Quarterly Financial Statements ................................................................................... 16 Section I Important Notices and Definitions The Board of Directors (or the "Board"), the Supervisory Committee as well as the directors, supervisors and senior management of TCL Technology Group Corporation (hereinafter referred to as the "Company") hereby guarantee that this quarterly report is factual, accurate, and complete, and shall be jointly and severally liable for any misrepresentations, misleading statements, or material omissions therein. Mr. Li Dongsheng, the person-in-charge of the Company, Ms. Li Jian, the person-in-charge of financial affairs (Chief Financial Officer), and Ms. Jing Chunmei, the person-in-charge of the financial department, hereby guarantee that the financial statements in this Report are factual, accurate, and complete. All of the Company’s directors attended the Board meeting for the review of this Third Quarter 2024 Report. The future plans, development strategies, or other forward-looking statements mentioned in this Report shall NOT be considered as promises of the Company to investors. Therefore, investors are kindly reminded to pay attention to possible investment risks. This Report has not been audited. This Report has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail. Definitions
Section II Key Financial Information (I) Key accounting data and financial indicators Indicate whether there is any retrospectively adjusted or restated datum in the table below □ Yes ?No
?Applicable □ Not applicable
Their Securities to the Public—Non-Recurring Gain/Loss (Revised in 2023), public grants closely related to the Company’s normal business operations, in compliance with national policies, received according to determined criteria, and with a continuous impact on the Company’s profits and losses shall be presented as recurring profits and losses. Public grants presented as non-recurring profits or losses in the third quarter of 2023 comprise the public grants related to assets amounting to RMB 287.77 million, which should be classified as recurring profits or losses in accordance with the relevant provisions of the 2023 Explanatory Announcement No. 1. The change did not have any material impact on the Company's financial position and operation results. Details of other profit and loss items that meet the definition of non-recurring profits and losses: □Applicable ? Not applicable The Company has no other profit and loss items that meet the definition of non-recurring profits and losses. Notes on non-recurring profit and loss items that are listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-Recurring Gain/Loss shall be used to define Recurring Gain/Loss items □Applicable ? Not applicable The Company does not have any non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-Recurring Gain/Loss that are defined as recurring profit and loss items. (III) Changes of key accounting data and financial indicators and reasons therefor ?Applicable □ Not applicable
Section III Management Discussion and Analysis Since this year, we witnessed increasing complexity and volatility in world politics, with escalating geopolitical tensions, and continuously restructuring international trade relations, while the global economy exacerbated the uncertainty with repeat measures to counter inflation seen worldwide. In response to these challenges, the Company focused on the development of displays and new energy photovoltaics, and enhanced the resilience of its business and optimized its competitive edge in pursuit of high-quality sustainable development. In the first three quarters, the Company reported an operating revenue of RMB 123.028 billion, and the net profit attributable to shareholders of the listed company of RMB 1.525 billion. During the Reporting Period, the display industry experienced a period of supply-end stability, characterized by growing demand for larger-sized products. This healthy supply-demand dynamic contributed to improved year-on-year profitability, particularly for mainstay products like television panels. During the Reporting Period, the Company's display business took a proactive stance in optimizing both business strategies and structure, with an operating revenue of RMB 76.956 billion, up by 25.74% year-on-year; a net profit of RMB 4.443 billion, representing a year-on-year increase of RBM6.067 billion. Despite the ongoing growth of global demand for photovoltaic installations, the overall industry faced operating challenges due to a concentrated release of capacity, which has resulted in a widening supply-demand gap and a significant decline in product prices compared to the previous year. TZE maintained positive operating cash flow and a relentless focus on cost efficiency, while accelerating organizational changes to address industry challenges. TZE generated RMB 22.582 billion of operating revenue in the first three quarters, and resulted in TCL Technology's net profits attributable to the parent company decreased by RMB 1.813 billion. Display Business Despite the global economic slowdown and subdued consumer demand, which dampened demand for large-sized panels in the first three quarters of 2024, the industry's competitive landscape improved, and the on-demand production trend laid a solid foundation for the healthy development of the industry. Seasonal fluctuations in downstream inventory demand led to a moderate increase in TV panel prices in the first half of the year, followed by a dip in the third quarter and the price has in small and medium-sized panel products were driven by innovations in hardware products and the need for replacements. By leveraging its strengths in terms of scale and efficiency, TCL CSOT consistently optimized its business and product mix with favorable price increases for key products compared to the same period from last year, and significantly boosted operating performance year on year. During the Reporting Period, the display business achieved an operating revenue of RMB 76.956 billion, with a year-on-year increase of 25.74%, and a net profit of RMB 4.443 billion, with a year-on-year increase of RMB 6.067 billion; and net cash flows from operating activities of RMB 19.838 billion. In the large-sized products segment, TCL CSOT, on the basis of on-demand production, was well-poised to lead the upgraded and high-end large-sized TV panels, impelling the healthy and sound development of the industry. During the Reporting Period, the Company solidified its position as the world's second-largest TV panel supplier, leading the global market in both 65-inch and 75-inch segments. The share of 65-inch and larger products in total TV panel shipment area reached 55%, while the Company vigorously develop large commercial displays such as interactive whiteboards and splicing screens. In the mid-size segment, the Company significantly increased its market shares in IT and vehicle-mounted products with the product development of t9 production line as scheduled and customer acquisition efforts. At present, the Company is the world's second largest monitor supplier, and holds the top spot in the global gaming monitor market. Furthermore, the Company has successfully secured partnerships with several leading international laptop manufacturers and achieved SoP. In the small-size segment, the Company is focused on capturing an incremental share of the mid-to-high-end consumer electronics market. During the Reporting Period, the Company cemented its position as the world's second largest supplier of LTPS smartphone panels to brand customers. Meanwhile, shipments of flexible OLED mobile phone panels experienced steady growth, with an increased proportion of high-end products. During the Reporting Period, the Company's Board of Directors approved the strategic acquisition of an 80% stake in LG Display (China) Co., Ltd. and a 100% stake in LG Display (Guangzhou) Co., Ltd. by TCL CSOT. This move is expected to enhance the Company's technology portfolio in display production lines, strengthen partnerships with global customers, and drive Looking at the longer term, global display terminal sales are expected to remain stable. The size growth trend of large-sized products will drive the robust growth of display areas. The improving supply-side structure will push the industry to pivot back on reasonable commercial returns, and the display industry's cyclical fluctuation will gradually weaken. TCL CSOT will continue to develop healthily and stably, while enhancing both corporate profitability and value. New energy photovoltaics and other silicon materials business Since 2024, the installed capacity of global PV at the user end has been on an upward trajectory. However, the supply-demand imbalance and intensified competition in the photovoltaic industry have led to a sustained decline in product prices, eroding profitability and pushing industry players into negative cash margins. At the end of August, a trend had been shown featuring a stable price throughout the supply chain, and the industry is poised to bottom out with continued consolidation and elimination of outdated capacity. During the Reporting Period, TZE achieved an operating revenue of RMB 22.582 billion, a year-on-year decrease of 53.6%, net profits negative RMB 6.478 million, and net cash flows from operating activities of RMB 2.562 billion due to falling prices for major products across the industry chain as well as substantial setbacks in both financial performance and stock prices of Maxeon, with its controlling interests held by TZE. To navigate the tough industry environment, the Company focused on extreme cost efficiency, built a robust Industry 4.0 foundation, and executed a global strategy, with the aim to promote a sustainable industry ecosystem characterized by healthy competition. By leveraging technological innovation and lean manufacturing, the Company established a competitive edge with ongoing efforts to optimize silicon material utilization, reduce furnace costs, increase wafer output per kilogram, and proactively address cyclical swings in the market during the Reporting Period, which drove the industry’s transition to N-type and larger-sized products. At the end of the Reporting Period, the company’s N-type products monthly output per unit was approximately 505kg higher than the industry runner-up. Additionally, the company’s wafer yield per kilogram surpassed that of the second best in the industry by approximately 1 piece. During the Reporting Period, the Company’s monocrystalline silicon production capacity for photovoltaic segment rose to 190GW. Shipments of photovoltaic materials amounted to approximately 94.86GW, reflecting an 11.4% year-on-year upgrading Industry 4.0 manufacturing processes, the Company established flexible and synergistic partnerships with its supply chain. The high traceability of our products enhanced customer loyalty and global competitiveness. In collaboration with RELC fully owned by Saudi Arabia’s Public Investment Fund (PIF), and Vision Industries, the Company built the world’s largest overseas crystal wafer plant to bolster its global competitiveness. Amid cyclical bottom in the industry, the Company actively pushed ahead with its organizational restructuring, business changes, and management optimization to bolster its competitive position. Looking ahead, the supply-side adjustments have positioned the industry for high-quality growth, but the global photovoltaic industry is expected to keep intense competition in the near term. In response to operational challenges, TZE took rational measures by adjusting its production and sales structure, ensured positive cash flow, and strove for the highest level of cost efficiency, so as to strengthen its competitiveness. The global renewable energy market presents ample growth opportunities, yet the distribution of production capacity worldwide remains uneven. The Company’s management team believes that the principle of "survival of the fittest” within the photovoltaic industry would contribute to a more optimized long-term industry landscape, enhance profitability, and has confidence that it can leverage the industry bottom so as to build a lasting competitive advantage. Looking at the future, the display industry is expected to experience further consolidation under the Matthew effect as large-scale manufacturers continue to cement their dominant positions. In the meanwhile, the emerging trends such as. the growing demand for larger displays and AI applications will drive new growth opportunities, ultimately enhancing industry profitability. The photovoltaic industry is still poised for significant growth globally. The Company's new energy photovoltaic business will strengthen its operational resilience and competitive edge to navigate through industry cycles. By upholding the spirit of "Venturing Midstream and Striving to Win", the Company will firmly grasp the opportunities brought by transformations in the technology manufacturing industry and the global energy structure, and continue to implement the business strategies of "improving operational quality and efficiency, enhancing strengths to shore up weaknesses, innovation-driven development as well as accelerating global expansion" in order to achieve sustainable, high-quality development and take on a leading role in the global market. Section IV Shareholder Information (I) Table of the total number of ordinary shareholders and the number of preferred shareholders with resumed voting rights as well as the shareholdings of the top 10 shareholders Unit: Share
under the refinancing business ?Applicable □ Not applicable Unit: share
to the previous period □Applicable ? Not applicable (II) Total number of preferred shareholders and shareholdings of the top 10 preferred shareholders □Applicable ? Not applicable Section V Other Significant Events 1. Derivative investments for hedging purposes made during the Reporting Period Unit: RMB'0,000
2. Other significant events during the Reporting Period □Applicable ? Not applicable Section VI Quarterly Financial Statements (I) Financial statements 1. Consolidated Balance Sheet Prepared by: TCL Technology Group Corporation
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