With Remarkable Results in the Third Quarter Showing 46.6% YoY Growth in the PRC Market
HONG KONG, Oct. 20, 2022 /PRNewswire/ — TCL Electronics Holdings Limited (“TCL Electronics” or the “Company“, 01070.HK) announced today its global sales volume for the first three quarters of 2022. Global sales volume of TCL smart screens reached 16.62 million sets, of which 6.47 million sets were sold in the third quarter, a significant increase of 11.8% year-on-year. With the “TCL and FFalcon” dual brand strategy carried out, a series of newly launched high-end and large-screen TCL smart screens were popular among consumers. Driven by the optimisation of distribution channel structure and the upgrade of product mix, sales volume in the domestic market increased rapidly. In 2022 Q3, sales volume of TCL smart screens in the PRC market rose by 46.6% year-on-year.
By adhering to the strategy of “Value Led by Brand with Relative Cost Advantage”, TCL Electronics has achieved remarkable results in its product mix upgrades. In the first three quarters of 2022, sales volume of the Company’s large-sized smart screens grew significantly. The sales volume of smart screens of 65 inches and above increased by 63.6% year-on-year, with its proportion of the overall sales volume increasing by 6.9 percentage points year-on-year to 17.1%. The overall average size of TCL smart screens sold in the market increased by 2.6 inches year-on-year to 47.4 inches. TCL Electronics has entered a “Golden Age of Development” for its large-sized smart screens.
At the same time, TCL Electronics took the lead in the field of Mini LED technology. With this first-mover advantage, the Company has built a moat around itself in the TV industry. In the first three quarters of 2022, the sales volume of TCL Mini LED smart screens achieved a growth of 12.4% year-on-year, and significantly up by 20.1% year-on-year in the third quarter. TCL Mini LED smart screens are not only well received by consumers but also widely recognized for its industry leadership by industry associations. In August this year, TCL was awarded by the Expert Imaging and Sound Association (“EISA”) in the “PREMIUM MINI LED TV 2022-2023” category for its high quality Mini LED 4K TV 65C835. TCL Electronics continued to break new ground and successfully launch the 98-inch TCL Q10G Mini LED TV in September with leading backlight, brightness and light control technologies, allowing consumers to have immersive audio and visual experiences.
In the PRC market, TCL smart screens recorded a 15.9% year-on-year increase in sales volume in the first three quarters. Large-sized products have become a firm favorite with customers, and the trend towards larger screens is particularly obvious in the PRC market. In the first three quarters of 2022, the sales volume of TCL 65 inches and above smart screens accounted for 39.3% in the PRC market, up by 14.3 percentage points year-on-year, while the sales volume of TCL 75 inches and above smart screens accounted for 18.1%, up by 11.9 percentage points year-on-year. The average size of TCL smart screens sold in the PRC market increased from 52.0 inches to 55.7 inches, a significant increase of 3.7 inches year-on-year.
In the international markets, terminal demand of some consumer markets was affected by the factors such as the pandemic, inflation and geopolitical conflicts. In the first three quarters of 2022, the overall sales volume of TCL smart screens in the international markets went down slightly due to the industry-wide impact. However, its sales volume has rebounded in the third quarter, recording a year-over-year increase of 3.4% and a quarter-on-quarter increase of 22.9%. In terms of regional sales performance of TCL smart screens in the first three quarters, emerging markets[1] registered a growth of 14.5% year-on-year, of which sales volume in Australia, the Philippines, Vietnam and Indonesia increased by 29.3%, 48.8%, 60.7% and 71.0%, respectively, and the market share of TCL smart screens continued to rank first in Australia and Pakistan[2]. On the whole, the sales volume of TCL smart screens in the European markets was flat year-on-year, but the momentum remained strong in Poland and in the UK, with a year-on-year growth of 13.9% and 108.4%, respectively. North American markets recorded decline due to the previously excessive demand caused by the pandemic, however, the market share of TCL smart screens by sales volume in the United States remained firmly in its third place[3].
In addition to smart screens, TCL Electronics sold 13.62 million sets in total of small and medium-sized displays in the first three quarters of 2022. The TCL NXTPAPER 10s smart tablet also won the “TABLET INNOVATION 2022-2023” award from EISA. This was also the first time for TCL to received such EISA Award for its tablet innovation.
With continued efforts to leverage its brand influence and channel advantages and to implement its all-category strategy, the distribution sales volume of the Company’s all-category products reached 7.24 million sets in the first three quarters this year, up by 15.8% year-on-year, with the sales volume of air conditioners, refrigerators and washing machines increasing by 17.9%, 14.7% and 10.7% year-on-year, respectively. TCL Electronics has always viewed technology as its driving force for development. TCL Home Appliances and Jiangnan University reached a strategic cooperation in scientific research and jointly built a laboratory in August this year with a focus on innovative technologies for food preservation. By developing magnetic refrigeration technology and establishing a database for experimental results, TCL Electronics aims to use smart preservation technologies to produce world-class refrigerators for customers who crave for a full range of absolutely fresh and nutritious food.
In the future, the Company will continue to forge ahead with the strategy of “Value Led by Brand with Relative Cost Advantage”. It will further pursue globalization and technological transformation in the mid to high-end market, actively explore innovative reforms and vigorously expand its new track of all-category layout of “intelligent IoT ecosystem” to provide global users with all-scenario smart and healthy living services. TCL Electronics is striving to develop itself into a world-leading enterprise of smart devices.
| [1] Emerging markets include Asia Pacific, Latin America as well as Central and East Asia. |
| [2] Data source: GfK. Statistics from January to August 2022. |
| [3] Data source: NPD. Statistics from January to August 2022. |
| Sales Data for the First Three Quarters of 2022 (Unaudited) | |
| Unit：Set | |
| Sales Volume of Large-Sized Display Products | 16,621,362 |
| – Proportion of 65-Inch and above TCL Smart Screens by Sales Volume | 17.1 % |
| – Proportion of 75-Inch and above TCL Smart Screens by Sales Volume | 5.6 % |
| Sales Volume of Small and Medium-Sized Display Products | 13,621,827 |
| Distribution Sales Volume of All-Category Marketing | 7,242,679 |
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About TCL Electronics
TCL Electronics Holdings Limited (01070.HK, incorporated in the Cayman Islands with limited liability) was listed on the mainboard of the Hong Kong Stock Exchange in November 1999. It is engaged in display business, innovative business and internet business. TCL Electronics actively transforms and innovates under the strategy of “Value Led by Brand with Relative Cost Advantage”. Focusing on the mid-to-high-end markets around the world, the Company strives to consolidate the “intelligent IoT ecosystem” strategy and is committed to providing users with an all-scenario smart and healthy life while developing into a world-leading smart technology company. TCL Electronics is part of the Shenzhen-Hong Kong Stock Connect program and is included in the Hang Seng Stock Connect Hong Kong Index, the Hang Seng Composite MidCap & SmallCap Index and the Hang Seng Corporate Sustainability Benchmark Index. Besides, it has received Hang Seng Index’s ESG rating of A for four consecutive years since 2018.
For more information, please visit the investor relations web page of TCL Electronics at http://electronics.tcl.com or follow the WeChat Official Page of TCL Electronics investor relations by scanning the QR code below.
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SOURCE TCL Electronics Holdings Limited
