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TCL Electronics Announces 12.9% YoY Increase in Global Shipment of Smart Screens in 1H2023

Shipment in the PRC Increased 14% YoY Driven by the 618 Shopping Festival

HONG KONG, July 20, 2023 /PRNewswire/ — TCL Electronics Holdings Limited (“TCL Electronics” or the “Company“, 01070.HK) today announced global shipment data for the first half of 2023 (“1H2023”). Global shipment of TCL smart screens in 1H2023 reached 11.46 million units with an increase of 12.9% year-over-year (“YoY”). Driven by market recovery and the 618 (18 June) shopping festival, shipment in the PRC increased 14.0% YoY and 43.1% quarter-over-quarter (“QoQ”).

“Mid-to-High-End + Large Screen” and “TCL + Falcon” Dual-Brand Strategies are Driving a Significant Increase in Shipment

As demand for large-screen entertainment and a high-quality audiovisual experience grows, the TV industry is rapidly trending towards larger screens and higher-end products. Large-sized TVs are gradually becoming the mainstream choice for upgrades. To take advantage of this opportunity and to adapt to the shifting trends in the global market, TCL Electronics continues to execute its “mid-to-high-end + large screen” and “TCL + Falcon” dual-brand strategies. In 1H2023, shipment of 65-inch and above TCL smart screens increased by 67.8% YoY, accounting for 22.5% of total shipment during the period, an increase of 7.4 percentage points YoY.

This reflects TCL Electronics position as a global leader driven by its mid-to-high-end transformation strategy. In 1H2023, TCL Mini LED smart screen maintained its leading position globally with shipment increasing 114.5% YoY. Global shipment of quantum dot (“QLED”) smart screens increased by 69.9% during the same period. During the 618 shopping festival, TCL Mini LED smart screens, QLED smart screens, 75-inch and above TCL smart screens, and 98-inch large smart screens all ranked first in terms of both sales revenue and sales volume for their respective category[1].

As a pioneer in Mini LED display technology, TCL Electronics continues to invest in research and development in Mini LED to enhance users’ audio-visual experience through technological innovation. Following the launch of its blockbuster products in March 2023, the TCL X11G QD-Mini LED smart screen and the Q10G Pro Mini LED smart screen, the Company launched its TCL Q10H flagship Mini LED smart screen in May 2023. This product was specifically designed to meet the needs of audio-visual enthusiasts. The TCL Q10H flagship Mini LED smart screen uses micron-level Mini LED beads and has up to 2,304 Mini LED partitions, an XDR peak brightness of 3,000 nits, and an ultra-high dynamic contrast ratio of 30M:1. It has greatly improved key dimensions of image quality in luminance, contrast ratio, and dynamic range, presenting images that are closer to natural scenes.

TCL RayNeo[2], a new subsidiary incubated by TCL Electronics, released an upgraded version of XR smart glasses RayNeo Air Plus, and its multi-functional audio-visual entertainment terminal RayNeo Pocket in May 2023. RayNeo Air Plus supports a maximum equivalent screen display of 215 inches at 6 meters distance and uses Micro OLED display technology. It supports 1080p resolution, a 120Hz refresh rate, and can be connected to mobile phones, tablet PCs, and laptops which support Type-C DisplayPort to facilitate its use in various application scenarios, such as movies watching, gaming, and online working. During the 618 shopping festival, TCL RayNeo ranked first in terms of total sales volume and total sales revenue in the AR category on JD.com and Tmall[3].

Continuously Optimising Domestic and International Sales Channel to Strengthen its Leading Position Globally 

As TCL brand awareness continues to strengthen, the Company is optimising its domestic and international sales channels. Shipment of TCL smart screens increased 12.9% and 12.8% YoY in international and domestic markets, respectively, during 1H2023 demonstrating the robust resilience of the Company’s smart screen business.

In international markets, the demand for consumer technology products has partially bounced back with the global economic recovery. Shipment to emerging markets[4] grew significantly, increasing 17.6% YoY in 1H2023. TCL ranked first in the industry in terms of shipment to the Philippines, Australia, and Myanmar[5]. TCL smart screen shipment to North America also rebounded significantly, increasing 18.6% YoY in 1H2023, with shipment to the United States in particular increasing 25.6% YoY. TCL smart screens were among the top three in terms of retail sales volume in the United States[6]. Although the economic situation in Europe resulted a slight drop in demand, TCL smart screens continued to generate solid results in some European markets with shipment to France coming in second in the industry and the Czech Republic and Sweden coming in third[4].

Supported by the gradual recovery of the consumer market and the 618 shopping festival, the shipment of TCL smart screens in the PRC market increased by 14.0% YoY and 43.1% QoQ. The proportion of the shipment of large-sized smart screens continued to increase. In 1H2023, shipment of 65-inch and above TCL smart screens increased by 45.6% YoY, accounting for 50.9% of total shipment in the PRC market, an increase of 11.5 percentage points YoY. Shipment of 75-inch and above TCL smart screens accounted for 29.7% of total shipment in the PRC market, an increase of 12.4 percentage points YoY.

Going forward, TCL Electronics will continue to execute its “Globalisation” and “Technological Transformation” strategies. By actively implementing an “intelligent IoT ecosystem” across all its product categories, the Company aims to provide consumers with a more comfortable living experience and is committed to becoming a leader in the global intelligent device market.

Shipment Data for the First Half of 2023 (Unaudited)

Units: Sets 

Large-sized display – Shipment of TCL smart screens

11,458,736

– Proportion of TCL smart screens of 65 inches and above by Shipment

22.5 %

– Proportion of TCL smart screens of 75 inches and above by shipment

9.5 %

Small-and-medium-sized display -Total shipment

5,244,486

 

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 five 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.

[1] Data source: TCL ecommerce platform, JDSZ and Tmall SYCM etc., with the statistical period spanning from May 31 to June 18.

[2] Formerly named as “Falcon Innovations”.

[3] Statistical period spanning of JP.com from May 23rd to June 18th; Statistical period spanning of Tmall platform from May 31st to June 18th.

[4] Emerging markets include countries in Asia-Pacific, Latin America, and the Middle East.

[5] Data source: GfK, with the statistical period spanning from January to May 2023.

[6] Data source: NPD, with the statistical period spanning from January to May 2023.