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TCL Electronics profit in 2021 was HK$1.184 billion
TCL Electronics released its 2021 annual report, saying that the profit in 2021 was HK$1.184 billion, a year-on-year decrease of 67.11%; the total operating income was HK$77.876 billion, a year-on-year increase of 52.0%.
Moreover, TCL Electronics said that in 2021, the global new crown epidemic will still be severe, and the international political and economic situation will become more complex; at the same time, the prices of upstream raw materials and international logistics will fluctuate violently, and the operating environment will be extremely challenging.
However, the scale of the industry in which the company operates is still expanding. Changes are accelerating. TCL Electronics has been actively transforming and innovating, with the strategy of “brand-leading value, relative cost advantage”, breaking through the mid-to-high-end market, exploring overseas markets, and opening up new business tracks. Display business, innovative business, and Internet business have grown significantly.
In 2021, the company achieved operating income from continuing operations of HK$74.85 billion, a year-on-year increase of 46.9%; gross profit reached HK$12.53 billion, a year-on-year increase of 29.7%; while focusing on core business development, the company actively improved production capacity, channels, R&D, brands, etc.
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In terms of synergies, cost reduction and efficiency enhancement were strengthened, and the expense ratio decreased by 0.5 percentage points year-on-year to 15.0%.
Affected by the rise in raw material prices, the company’s net profit attributable to the parent from continuing operations for the year reached HK$1.18 billion, a year-on-year decrease, but upstream panel prices gradually fell in the second half of 2021, and the company’s gross profit margin increased in the third quarter of 2021.
Since then, it has continued to rebound. Subject to shareholders’ approval, the board of directors recommends an annual dividend of HK$16.70 per share, with a full-year dividend payout ratio of 35.0% of the net profit attributable to the parent company.
The announcement shows that in 2021, Falcon’s annual revenue will increase by 59.2% year-on-year to HK$1.52 billion. The growth in performance is mainly due to Falcon’s continuous innovation in technology and application scenarios, and actively creating full-scenario smart home services for users.
While the efficiency of the main business has been improved, the scale of the innovative business has been achieved. Among them, membership business income increased by 62.3% year-on-year, vertical and innovative business income increased by 78.1% year-on-year, and innovative businesses such as children’s business, large-screen education, etc.
TCL Electronics said that in 2021, the global TV market will be affected by rising screen prices and pre-epidemic demand. Although the overall market shipments will be suppressed, the global market share of TCL smart screens will continue to increase to 11.5% in 2021, ranking first in the world.
At the same time, the company has broken through the mid-to-high-end and continued to optimize its product structure, driving the global sales of TCL smart screens to increase by 24.3% year-on-year to HK$49.27 billion in 2021, and the overall sales performance is better than the industry average.
At the forefront of technological change in the industry, TCL Electronics continues to lead the wave of intelligent and technologically advanced large-screen displays worldwide. With its leading layout in the Mini LED field, the company’s mid-to-high-end smart screen sales have grown significantly. Quantum dot smart screens and The sales volume of Mini LED smart screens increased by 53.8% and 50.5% year-on-year, respectively.
In terms of the international market, in 2021, the sales volume of TCL smart screen in the international market will increase by 7.6% year-on-year, and the average selling price will increase by 25.1% year-on-year; sales revenue will reach HK$36.03 billion, a year-on-year increase of 34.7%; gross profit margin will reach 16.1%, basically flat year-on-year.
Among them, in terms of sub-regional markets, in 2021, TCL smart screen sales in the North American market will increase by 24.8% year on year. At the same time, its sales volume and market share will rank second in the US market; the company continues to deepen its efforts in key emerging market countries, and emerging market sales are year-on-year.
Among them, Australia and Pakistan ranked first in the market share of TCL smart screen sales; the European market continued its high growth trend, with sales increasing by 52.2% year on year.
In the Chinese market, the screen price in 2021 will gradually fall after a significant increase in July. During this period, the company has adopted strategies such as optimizing product structure and increasing sales prices to actively respond to rising raw material prices, covering the pressure of rising costs to a large extent.
In 2021, the average selling price of TCL smart screens in the Chinese market will increase by 36.0% year-on-year, driving sales revenue to increase by 2.9% year on year to HK$13.24 billion; gross profit margin will be 18.3%.
At the same time, the company has made breakthroughs in high-end products, and the trend of large-screen products has become more and more obvious. The average sales size of the company’s smart screen will increase from 49.9 inches in 2020 to 52.4 inches in 2021, of which the sales volume of TCL smart screens of 65 inches and above will increase by 8.3 percentage points to 27.0%.
In terms of small and medium-size display business, the company’s total sales volume of small and medium-size display business reached 25.31 million units, a year-on-year increase of 7.5%; revenue was HK$14.38 billion, a year-on-year increase of 29.5%.
From the perspective of key global markets, the company’s mobile phone sales in 2021 will rank third in Canada, fourth in the United States, and fifth in Australia and Western Europe; in 2021, the company’s smart Android tablet sales will rank fourth in the world, of which it ranks third in the United States, fourth in Latin America, and fifth in Western Europe.
At the same time, the company launched a variety of TCL 20 series and 30 series 5G mobile phones, as well as the “Sui Tang Xue” eye protection education tablet, which mainly focuses on the global first-line network operator channels, and its sales are at the forefront in the European and American markets.