Domestic brands have gradually become "popular" in the eyes of foreign consumers. TCL Multimedia Technology Holdings (01070) has ushered in a harvest year in overseas markets, and the TV business has become a success in North America, and sales have more than tripled. At the same time, TCL Multimedia and Tencent jointly operate Internet TV business, sharing big data's analysis.
TCLMultimediaAccording to the interim results announced today, according to Zhitong Financial APP, the company's turnover in the first half of this year was 17.02 billion yuan (Hong Kong dollars, the same below), up 19.7% from the same period last year, and profits increased by nearly 60% to 150 million yuan.
The sales of the main LCD TV sets were 9.6 million, an increase of 12.2% over the same period last year. Sales of LCD televisions in China fell 9.7 per cent year-on-year to 3.87 million, while overseas markets surged 34.1 per cent to 5.74 million.
Bo Lianming, CEO and executive director of the company, said that the earlier international layout is gradually taking effect, and overseas markets have ushered in a harvest year. With the rapid development of TV business in overseas markets, the turnover of LCD televisions rose 51% to 8.38 billion yuan compared with the same period last year, the average selling price increased by 12.5%, and sales rose 34% compared with the same period last year. Among them, sales in North America more than tripled, while those in emerging markets grew by 20.5%.
In addition to developing the TV sales business, TCLMultimediaIt is also tapping the profit space of the Internet TV advertising business. Earlier, Tencent (00700) bought a stake in Thunderbird Technology, an Internet TV company owned by TCL Multimedia, involving an investment of 450 million yuan. Tencent will provide a content platform for Thunderbird TVs.
Wang Yi, chief financial officer, said that this cooperation shows that Tencent attaches importance to the Internet TV home portal, and there is a lot of room for advertising revenue in the future.
The following is the Q & A record of the performance meeting organized by Zhitong Financial APP:
Q: the unit price of TV sets has declined over the past period of time. How will it develop in the future?
A: the unit price of TV sets did decline earlier, but it began to pick up in the first half of this year. And panel prices began to go down in the second quarter of this year, which will help the gross margin of the future business.
Overall sales of televisions in the mainland market fell by 10% in the first half of this year, and the rise in prices is one of the reasons for the decline, so it is expected that the unit price of televisions will rise moderately in the future. Keep the sales target of 22 million units unchanged, and the overall sales growth is expected to be 20% or more.
Q: can you explain the decline in gross profit margin?
A: because the gross profit margin of the overseas market is lower than that of the mainland market, the proportion of overseas sales has increased, even surpassing the mainland market in the second quarter, resulting in the gross profit margin falling from 17.4% to 15.4%.
Q: will gross profit margin continue to fall in the future?
A: among the overseas markets, the best performance is the North American market, because the market has entered the full sales channel, so it has achieved great growth for three consecutive years.
The sales model of the North American market is different from that of the mainland market, there are few sales staff, although the gross profit margin is low, but the expense rate is also low. And we have adjusted the product structure to increase the sales share of smart TVs and 4K TVs, so the average unit price increased by 12.5% in the first half of this year, all of which contributed to the increase in gross profit margin.
And the sales supply chain in North America is three months slower than in the mainland, so the results still reflect previous costs. Lower costs in the future will help to improve gross profit margin.
Q: Tencent earlier invested in Thunderbird under TCL Multimedia. How can he cooperate in the future?
A: Tencent is very strong in video and user experience and data. Thunderbird Technology has been bought by Tencent, which is a strong partnership. We have a large number of Internet TV users. Tencent provides us with content, and the two sides jointly operate and share big data's analysis, such as user activity, retention and so on.
Thunderbird has received such a large investment and a high premium, indicating that Internet companies have taken a fancy to TV Internet TV's home portal and future advertising revenue, which is expected to generate more than 40 million of operating income this year.
Q: Letv still holds 20% of your stock. will it be affected by the recent turmoil?
A: Letv does own 20% of our shares, but Jia Yueting, the founder of Letv, does not own it personally. Earlier, Letv sent a new capital increase by Sunac China (01918). It is believed that Letv Zhixin, with the support of the new funds, should be relatively healthy in finance, but whether Letv will sell his shareholding is the other party's problem.