TCL Technology released a performance forecast for the first three quarters of 2021. The net profit in the first three quarters is expected to be 13.05-13.350 billion yuan, a year-on-year increase of 533%-548%, the net profit attributable to the parent is 9.03 billion yuan-91.8 billion yuan, a year-on-year increase of 346% -353%, the third quarter is expected to achieve a net profit of 38.00 RMB -41.00 billion, a year-on-year increase of 283% -313%, net profit attributable to the parent was RMB 2.25 billion-RMB 2.4 billion, a year-on-year increase of 175% -194%.
TCL Technology said that “the semiconductor display industry’s prosperity was higher than that of the same period last year. Thanks to the continuous growth of production capacity and the optimization of business and product structure, the semiconductor display business achieved a year-on-year increase of more than 30% in shipment area in the first three quarters and a year-on-year increase of about 16 times in net profit”.
In the large-size business area, due to the disturbance of logistics and demand in some parts of the world, the prices of main products were adjusted at a high level in the third quarter, coupled with the impact of upstream supply chain fluctuations, the quarterly profit of the large-size business fell quarter-on-quarter.
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However, TCL Technology actively promotes high-end TV and commercial display products. The structure was optimized and the performance stability was significantly improved. The net profit in the third quarter increased by about four times. In the mid-size business field, TCL Technology has rapidly increased its market share in e-sports MNT, LTPS laptops, LTPS tablets, and vehicles, and its performance has continued to grow.
In the small-size business area, the operation of TCL Technology’s t3 line has gradually improved. The t4 line has actively established differentiated competitiveness such as flexible folding and an under-screen camera. Affected by the early R&D investment and accelerated production line climbing.
Looking to the future, the total demand area of the global market will keep an annualized steady growth, the industry competition pattern will be optimized, and the trend of declining industry cycle volatility will remain unchanged.
Besides, the company will speed up the improvement of the small and medium-sized business layout, continue to optimize the product and customer structure, improve efficiency and benefit advantages, and lift the performance center in cyclical fluctuations.
Through continuous technological innovation, Zhonghuan Semiconductor has continuously increased the monthly output of a single crystal furnace, reduced the silicon consumption per unit product, increased the rate of silicon wafer A, and increased the output efficiency.
Moreover, the G12 product scale has accelerated, the product structure transformation has been smooth, and the semiconductor photovoltaic materials business has made substantial profits increase. The semiconductor materials business has released effective production capacity by accelerating the commissioning of new production lines, and further increased the scale of production and sales of semiconductor materials. The 8-12 inch large silicon wafer project is progressing smoothly.
In order to comply with the national industry orientation, focus on the main business of science and technology, and meet the company’s announced financing project needs, TCL Technology disposed of the equity of Fantasia Real Estate in the third quarter. The one-off impact caused the company’s investment business segment to achieve year-on-year and quarter-on-quarter results in the third quarter.
Both experienced a sharp decline. Other businesses in the industrial finance and investment business segments are operating well, and the company is confident that this business segment will achieve stable income contributions throughout 2021.
