TCL Multimedia Technology Holdings published an announcement today that based on its preliminary review of the unaudited management accounts of the Group, the Group is expected to record a higher profit for the six months ended 30 June 2012 as compared to the corresponding period in 2011.
The Group's expected profit was mainly attributable to a significant increase in the sales volume of LCD TV and the continuous improvement of the Group's product mix and a one-off gain from the acquisition of a 100% equity interest in TCL Optoelectronics Technology (Huizhou) Co., Ltd. and its 60% owned-subsidiary, Huizhou TCL Coretronics Co., Ltd., which was announced and recorded in the first quarter of 2012. The closing of the acquisition took place on 18 January 2012. However, even with one-off gain from the acquisition excluded, the Group would still be expected to record a higher profit in the period as compared to the corresponding period in 2011.
The Group continued to execute its operating and marketing strategies with speed and efficiency and was dedicated to the optimization of its products, marketing strategies, sales channels and brand influence. Profit attributable to owners of the parent recorded a significant year-on-year increase to approximately HK$309 million in the first quarter of 2012. Profit attributable to owners of the parent reached approximately HK$131 million in the first half of 2011.
In terms of sales and marketing, the Group announced that it has raised its 2012 sales target of LCD TVs from 13.80 million sets to 15.20 million sets, an increase of approximately 40% compared to 10.86 million LCD TVs sold in 2011. According to the latest DisplaySearch report, the Group's global LCD TV market share increased from 4.9% to 5.6% in the first quarter of 2012, bringing its ranking up to No. 5 from No. 7 in 2011. This marks the first time a Chinese TV maker being ranked in the top five in terms of global LCD TV market share. The Group's LCD TV sales reached 6,477,144 sets for the first six months this year, representing an increase of 60.6% year-on-year. However, as it is not optimistic in China in terms of its macro-economy and industry growth, and with the sales base in the second half of 2011 already very high, the Group's sales growth is expected to slow in the second half of this year compared to the first half. The Group will step up its efforts in R&D, continue to enhance the competitiveness of its products and operational efficiency in order to further increase its profitability and to lay the foundation for sustainable and healthy development.
The Group is expected to announce its 2012 interim results on 9 August 2012.