OREANDA-NEWS. May 16, 2011. TCL Corporation (000100.SZ) announces first quarter results for 2011. It shows that, during the reporting period, the company achieved operating income of RMB 13.374 billion, of which sales totaled RMB 13.037 billion, up 12.14%; sales in domestic market rose by 20.03%,of which net profit achieved was RMB 223 million, up 245.34%; net profit excluding nonrecurring items was RMB 92.20 million, increased 178.19% on a year-on year basis, reported the press-centre of TCL.

TCL Corporation indicated, because the company seized the opportunities for development provided by the transformation and upgrading of domestic appliances and the growth in demand in overseas markets to intensify the efforts in intra-industry integration and market development, its net profit increased significantly during the reporting period. In TCL Communication Technology Holdings, the product sales and sales revenue increased continuously and the brand influence was further improved; Multimedia enhanced the resource integration of the whole LCD TV industry chain and continued to optimize product structure, and the world’s first super-smart TV with a leading-edge launched in March strengthened the layout of high-end market; the 8.5-generation LCD panel production line project is progressing well; after trail-production in August as planned, the project will not only further deepen the company’s whole-industrial chain layout advantage in upstream-downstream vertical integration but also play an important role in promoting the building of competitive advantage in the global color TV industry in the long term.

In terms of performance in each sectors, Communications continued to maintain a good momentum of rapid development to achieve sales revenue of RMB 1.793 billion during the period, up 38.31% with net profit achieved of RMB 152 million. In the first three months, the sales of globally handsets and accessories totaled 8.715 million sets, with an increase of 50.55% year on year. The growth in Communications mainly benefited from the development of potential markets globally, the "product technology upgrading" strategy, brand building in open markets, and the business development strategy in coordination with the ODM core business. During the reporting term, overseas markets stood forth and increased by 55.50%.

 Total sales in the Chinese market remained stable with a number of star products successfully launched, including the popular TCL i898 Sina micro-blogging mobile phone and the highly competitive TCL A906 WCDMA 3G smart phones jointly launched with China Unicom recently. In addition, the company’s cooperation with top three domestic telecom operators (China Unicom, China Mobile and China Telecom) also made important breakthroughs. TCL Communications said the "ALCATEL ONE TOUCH" new brand strategy launched will provide customers with more fashionable, intelligent products and created a multi-channel communication platform, which received good feedback in overseas markets and will also be officially launched and promoted in the Chinese market; the Chinese markets will continue to strengthen the layout of sales network, keep in close cooperation with operators and provide customers with better service experience to drive steady growth in sales volume sequentially.

For TCL Multimedia business, during the period the company intensified industrial chain integration efforts, enhanced operational efficiency and speed and continued to improve product structure, so the proportion of LED backlight LCD TV rose rapidly. In the first quarter, the company achieved sales of RMB 5.554 billion and net profit of RMB 28.86 million. In the firs three months, the sales volume of LCD TV was 1.928 million sets with slight increase year on year. In March, the proportion of LED backlight LCD TV increased to 43.4%, and the product structure was further optimized. Sales of AV products totaled RMB 775 million, an increase of 42.78%. TCL Multimedia indicated that, while strengthening supply chain capabilities and improving operational efficiency, the company adheres to intensifying the strategy of content and service innovation, and has launched the world’s first television applications store based on Android and windows systems to launch the super-smart TV with six “Top 1” in the world.

Thanks to the positive development of domestic and overseas markets, the appliance business maintained a good momentum of development with significantly product sales and profitability improvements. During the period, sales revenue grew 66.96%. In the first three months, the sales volume of air conditioners, refrigerators and washing machines grew by 64.71%, 14.57% and 56.73% respectively.

Industry analysts have pointed out that the company’s multimedia business has maintained a steady momentum of development and communications business continued to soared upwards. A few days ago, TCL worked with Samsung to speed up the layout of LCD panel industry chain, and will achieve the strategic objectives of getting through the whole LCD TV industrial chain within the year to become the first domestic color TV enterprise with whole process capability.