OREANDA-NEWS. March 15, 2011. TCL Corporation (000100.SZ) issued its 2010 operating performance report on Feb.25th. According to the report, TCL Corporation achieved the operating revenue of RMB 51.87 billion and sales revenue of RMB 50.253 billion with 17.09% year-on-year (YoY) increase. The company achieved a net profit of RMB 433 million and net operating cash inflow of RMB 796 million, reported the press-centre of TCL.

TCL Corporation said, in 2010 the company focused on two core business, multimedia and communication. The company integrated effective resources, accelerated industrial upgrade and transformation and made breakthrough in R&D on technologies supporting core products. The company’s communication business maintained its continuous and rapid growth in operating performance. Product sales and operating profit both hit record high in recent years. Multimedia business experienced operating loss due to strategy adjustment of in-house brands and inventory liquidation. However, after completing inventory liquidation and production lines adjustment, sales of LCD TV picked up starting from the beginning of the fourth quarter and achieved operating profit. The 8.5 generation of TET-LCD production project, which is expected to launch its trial production in August 2011, is making rapid progress. It will benefit the sustainable development of the company’s multi-media business.

As far as business sectors are concerned, TCL Communication delivered strong performance. According to the report, TCL Communication achieved operating revenue of RMB 7.575 billion with a 97.73% YoY increase, net profit of RMB 611 million and its annual sales of mobile phones and accessories reached 36.223 million units with a 125% YoY growth. The company’s overseas sales volume was 34.083 million with a 155% YoY growth. The significant growth is firstly attributed to the strengthened strategic partnership between TCL Corporation and its major global telecom operators. Secondly, the company dedicated itself in product development and design, and kept launching competitive products to maintain its leading position in the traditional market.

Thirdly, the widespread use of Internet function on mobile phone, improved product technology and successful marketing strategy increased the sales proportion of medium- and high-end communication products to around 20%. In Chinese market, TCL Communication cooperated with mainstream Internet portals to develop popular products with localized content. The company also partnered with China UnionPay and became the company became the first handsets manufacturer in China endorsed by CUP as a secure platform delivery mobile payment. During the reporting period, TCL Communication launched more than 90 new products, among which, OT-208, OT-808 and OT-880 achieved annual sales of over 3.5 million units and OT-980, the first Android-based 3G mobile phone, was also well received in the market. In 2011, TCL Communication will continue to strengthen its strategic partnership with major operators to enhance its R&D capabilities in core technology and embrace the trend of smart 3C integration, to provide its consumers with more colorful experiences.

In multimedia business, due to the restructuring of North American business, adjustment of strategic OEM structure, excess inventory and product upgrade, the company’s LCD TV business witnessed sales volume of 7.464 million units in 2010 with a 10.9% YoY decrease and annual loss of RMB 857 million. After completing inventory liquidation and production line adjustment, the company has gradually gained sales growth in LCD TV business in the fourth quarter, and market share of LED-backlight LCD TV also increased rapidly to 27.6% in Dec. In China, TCL Corporation held 23.5% of share in Internet TV sector and maintained its position as the market leader.

To increase competitiveness of its products, TCL Multimedia Holdings continued to strengthen its capabilities in R&D and launched 66 new TV products in the reporting period, including three 3D series, eight LED series and pioneering ultrathin LCD TV products, V10, P60 and P50 series. TCL Internet 3D TV was awarded as “2011 CES Annual Global Quality Flat Panel TV” and “2011 CES Multifunction TV of the Year” awards this year. TCL Multimedia Holdings said the company will fully leverage its strength in 3D TV and smart TV to address market demand and continue to enhance the competitiveness of its products. With steady progress of vertical integration strategy and the production launch of the 8.5 generation of TET-LCD production project, TCL Multimedia Holdings will gradually exhibit its comprehensive advantages in technology, costing and marketing to promote the steady development of its business.

In home appliance business, TCL’s Home Application Group established a “market-oriented” organizational and cultural structure to deploy its “operation management system (OMS)”, which significantly improved the company’s operation capabilities. Its sales revenue reached RMB 4.498 billion with a 44.17% YoY increase. Sales volume of air conditioner of the whole year was 1.9055 million units with a YoY growth of 85.62%; 626,500 units of refrigerators were sold with a YoY increase of 13.89% and sales of washing machine reached 581,900 units with a YoY growth of 34.05%.

In 2010, as the official partner of Guangzhou 2010 Asian Games, TCL Corporation supported and participated in the sports event by providing financial aid, technology and services, which enhanced the company’s brand image. According to the results of China’s Most Valuable Brands ranking, TCL retained its position as China’s largest color TV brand with a brand value of RMB 45.808 billion. The company’s comprehensive competitiveness also allowed TCL Corporation to hold the 25th place in “Global Top 50 CE Brands” released at the recent 44th International CES and rank the 6th among all the global TV brands.

In 2011, TCL Corporation proposed the development strategy themed by “high growth, high revenue, fast turnover, and risk control”. The company hopes to strengthen its core competitiveness, enhance its position in the industry, keep developing its brand influence, and optimize its product and business structure with effective cost control, to lead to another year of successful operating performance.