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TCL Technology 1H 2020 Revenue Up 12.3%, Reorganization Has Made More Profitable
COVID-19 and China
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A top-3 display panel manufacturer in China, TCL technology (000100:SZ) released its interim financial results on August 29, 2020. During the six months ending in June 30, the company's revenue climbed to CNY 29.33 billion, presenting a year-over-year growth of 12.3%. The net profit attributable to shareholders declined by 42.3% year-over-year to CNY 1.21 billion. However, after the deduction of asset reorganization revenue, the net profit presents 7.6% year-over-year growth under the same measurement standards.

Ever since the company's reorganization in 2019, TCL technology has been running three major business lines – semiconductor display and materials, semiconductor and new energy, and industrial finance and investment.

Accounting for 67% of the total revenue, the display products and materials segment delivered by TCL's majority-owned subsidiary TCL Huaxing Optoelectronic Technology is TCL's business focus. In the first half of 2020, Huaxing brought CNY 19.51 billion revenue with 19.9% year-over-year growth to the company. Though this segment is still in deficit at a net loss CNY 133 million, the loss reduction is significant with CNY 1.15 billion. Besides the financial improvements, the company's major product TV display panel occupied the second largest market share worldwide with its 55-inch TV panel ranking the first and the 65-inch panel the second.

TCL acquired Tianjin Zhonghuan Semiconductor's (002129:SH) 100% equity in July 2020, of which the major business is photovoltaic and IC silicon materials, TCL envisions development of IC-related business in the second half of 2020.

Editor: Luke Sheehan
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