The hottest LED displays narrow profits and focus

2022-07-25
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On March 20, TCL group released its annual financial report today, which showed that in 2018, TCL Group achieved an operating revenue of 113.36 billion yuan, an increase of 1.60% year-on-year; Among them, the main business income was 112.280 billion yuan, a year-on-year increase of 1.60%; The net profit was 4.065 billion yuan, a year-on-year increase of 14.7%; The net profit attributable to the shareholders of listed companies was 3.468 billion yuan, a year-on-year increase of 30.2%, and an increase of 30.2% on the basis of the 66.3% increase in the net profit attributable to the parent company in 2017. The group's net profit margin has increased from 2% in 2016 to 3.6%, the return on net assets has increased from 7.2% to 12%, and the per capita net profit has increased from 35500 yuan to 38600 yuan. As of december31,2018, the group's total assets had reached 192.764 billion yuan, an increase of 20.26% over the same period of the previous year

it can be seen from the financial data of TCL Group in recent years that the company has a large revenue and a relatively stable growth rate, but the net profit attributable to the parent company is relatively small and the net profit margin is relatively low. The financial report shows that over the past two years, TCL Group has sold and closed 63 non core business enterprises, and the number of loss making enterprises has decreased by 3. 5% There are few gear wear testing machines, and human, capital, technology and other resources are focused. The competitiveness of major industries is continuously enhanced. In 2018, 39 non core enterprises were restructured and divested; The business structure of the group has been adjusted to four business groups, namely, semiconductor display and materials business, intelligent terminal business, industrial finance and investment business and other emerging businesses. The core industry is semiconductor display and intelligent terminal, and efficiency and competitiveness are improved through reform and reorganization

the sales revenue of TCL Group's industrial cluster subsidiaries in 2018 is as follows:

in 2018, the sales revenue of Huaxing optoelectronics and TCL communications declined, and the development of other industries improved. According to the financial report, TCL group improved in 2018 with TCL Electronics (including commercial display business), TCL communication technology, home appliance group, and smart terminal business groups related to consumer electronic terminals, including smart home, which turned from huge losses in 2017 (mainly from mobile communication terminal business) to current profits, and realized profits of nearly 300million yuan this year. Among them, the color TV business grew strongly, with annual sales (including ODM business) of 28.96 million units, ranking the second in the world by sales volume; The business of home appliances and smart speakers developed steadily, and the loss of mobile communication terminal business narrowed significantly

tcl group's table shows that its use is almost spread in all areas of the national economy. Affected by the cyclical downturn of the global industry, the LED display industry has seen a sharp decline in product prices since the second quarter of last year, the sales revenue has dropped year-on-year, and the gross profit space has been significantly narrowed. Through various transformation actions, csot has always maintained full sales and production; Wuhan T3 low temperature polysilicon (LTPs) plant reached full production in the fourth quarter, and the first generation LCD plant of Shenzhen T6 was put into operation at the end of the year; In 2018, the sales volume of each product continued to grow. Under the condition of poor industry prosperity, csot continued to maintain a good profitability by continuously reducing costs and increasing efficiency, strengthening industrial synergy, improving technical capacity; Csot is not only the business group that contributes * to the group's profits, but also its performance in the same period is significantly better than that of the peers

tcl group also acknowledges that due to the low profit margin of intelligent terminal business, product technology upgrading iterations are fast; In addition to the competitive scale of smart TV, the overall scale of other businesses is small, and the profitability and growth momentum are insufficient. Moreover, the organizational process and management logic of intelligent terminal business are quite different from that of semiconductor display business; In order to concentrate resources to strengthen and expand the semiconductor display business, the group decided to divest and sell the intelligent terminal business; The newly established TCL Industrial Holdings acquired the business, and the assets, liabilities and employees were also transferred with the business. We believe that the reorganization also points out the importance of measurement, which can enable the intelligent terminal business group to focus on its main business, optimize its organizational structure and business processes, and improve its efficiency, efficiency and competitiveness

tcl group said that according to the data prepared for examination in 2018, the group's net profit rate will be increased from 3.59% to 7.35% after restructuring; The asset liability ratio will be reduced from 68.4% to 64.1%, and RMB 4.76 billion in cash will be received; The number of employees decreased from 90000 to 30000; Further optimized the enterprise organization, capital structure and financial situation. Although the restructuring will significantly reduce the consolidated sales revenue of the group, with the new capacity of csot gradually put into operation and the expansion of other businesses of the group; It is expected that the group's sales revenue will continue to grow in the next few years, and its operating profit and cash flow will continue to improve. This restructuring has increased the group's financing capacity, so that the follow-up construction, production expansion and T7 construction of csot T4 and T6 will no longer need equity financing

in 2018, TCL Group adjusted the strategic layout of the company's products, with new LED display technology and materials, artificial intelligence and big data, intelligent manufacturing and industrial interconnection as three major technology strategic areas. In 2018, it invested 5.67 billion yuan in R & D, an increase of 20% year-on-year

the financial report shows that the major asset restructuring plan of TCL Group in 2019 has been reviewed and approved by the group's general meeting of shareholders on January 7, 2019, and relevant matters are being promoted as planned. After the reorganization, the company's main business structure was adjusted to three major sectors: LED display and materials business, industrial finance and investment venture capital business, and emerging business group. The specific settings are as follows:

1. LED display and materials business, including Huaxing optoelectronics, Huaxian optoelectronics, Guangdong Juhua, and Huarui Optoelectronics

2. Industrial Finance and investment venture capital business, including TCL finance and TCL capital

3. Emerging business groups, including hanlinhui, education and environmental protection

2019 is a year full of opportunities and challenges for the development of intelligent terminal services. With China's 2025 strategic plan for intelligent manufacturing promoting the transformation and upgrading of traditional industries, focusing on promoting the high-quality development of manufacturing industry, strengthening the industrial foundation and technological innovation capacity, and promoting the integrated development of advanced manufacturing industry and modern service industry, as a large country of manufacturing and consumption of intelligent terminals, the supply of high-end display products exceeds the demand, and as a semiconductor display industry in China The fast-growing market will usher in an opportunity to stand among the global priorities and drive the development of the next generation semiconductor display industry. The display demand and new products and applications for commercial, home, mobile and other application scenarios are constantly emerging. The vigorous development of industrial control display, commercial display, educational whiteboard, E-sports display, tablet, vehicle, vr/ar and other products will also bring about the continuous growth of the display industry

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