TCL Electronics (01070.HK) expects a 56.5% year-on-year increase in adjusted net profit attributable to shareholders in 2025, continuing a high dividend payout ratio of 50%.

On the evening of March 27, TCL Electronics (01070.HK) announced its latest financial report, with 2025 revenue reaching HK$114.583 billion, a year-on-year increase of 15.4%; gross profit reached HK$17.900 billion, a year-on-year increase of 15.1%; after-tax profit increased by 36.7% year-on-year to HK$2.527 billion, and adjusted net profit attributable to shareholders grew by 56.5% year-on-year to HK$2.512 billion. The company’s overall profitability continues to improve, thanks to the deepening implementation of its mid-to-high-end and globalization strategies, the rapid expansion of innovative businesses, and efficiency gains driven by AI-enabled full value chain operational management. TCL’s 2025 performance demonstrates a remarkable high-quality development trajectory.

In 2025, TCL Electronics’ cash and cash equivalents increased by 54.2% year-on-year to HK$13.522 billion, providing sufficient funding for business growth and strategic investments. While maintaining steady performance growth, the company continued its high dividend policy initiated in 2017, with the board recommending a final dividend of HK$0.498 per share for 2025, representing a payout ratio of approximately 50% of the adjusted net profit attributable to shareholders.

Dual-Drive Strategy of Globalization and Mid-to-High-End Focus Secures Global Leadership

In the large-size display segment, international markets contributed key growth, with TCL’s international revenue reaching HK$47.504 billion in 2025, up 15.7% year-on-year, and gross profit increasing by 29.4% to HK$7.165 billion. Product structure optimization led to a 1.6 percentage point increase in international gross profit margin to 15.1%. The overseas large-screen rollout accelerated, with shipments of 65-inch and above TVs and 75-inch and above TVs increasing significantly by 50.0% and 68.2% year-on-year, respectively, with shipment share rising by 6.7 and 3.6 percentage points to 24.2% and 10.0%. TCL Mini LED TV shipments internationally surged by 228.0% year-on-year, with shipment share increasing by 7.1 percentage points to 10.6%. Global shipments grew sharply by 118.0%, with market share reaching 31.1%, firmly maintaining the top position worldwide. Meanwhile, the company continued expanding channel networks and deepening key channel development, leading TCL TV to hold top market share in multiple countries overseas. In 2025, TCL TV ranked among the top three in retail volume market share in over 20 countries globally, with North America experiencing the fastest growth in market share.

In the domestic market, despite the impact of the decline in the “trade-in” policy and weak terminal demand, resulting in a 9.8% decrease in overall industry shipments year-on-year, TCL Electronics accurately grasped the trends of large-screen and mid-to-high-end development, outperforming the market. Retail volume and retail value market shares increased to 22.2% and 24.2%, demonstrating strong operational resilience. Additionally, domestic shipments of TCL Mini LED TVs grew by 33.6% year-on-year, with shipment share rising by 7.2 percentage points to 22.5%, driving a 1.9 percentage point improvement in domestic TCL TV gross profit margin to 21.7%.

According to forecasts by global technology market research firm Omdia and Qunzhi Consulting, global TV shipments are expected to stabilize around 210 million units in 2026, with Mini LED TV shipments projected to maintain over 90% high-speed growth, further strengthening the trend toward high-end and large-screen products. TCL Electronics has established a leading position in high-end and global markets, and is poised to leverage this market opportunity to further expand growth potential.

Innovative Business Drives Performance Growth, AI Empowerment Builds Second Growth Curve

The company actively seizes new opportunities in AI technology development, deeply engaging in the global home internet sector, achieving simultaneous growth in business scale and profitability quality. In 2025, internet business revenue increased by 18.3% year-on-year to HK$3.109 billion, with gross profit margin rising to 56.4%, maintaining high profitability. The photovoltaic business also experienced strong growth, as the company focused on building power market trading capabilities. Domestic distributed photovoltaic installations reached new highs, entering a stage of high-quality development. Meanwhile, the company steadily advanced its globalization strategy, with the European market achieving substantial operational breakthroughs. In 2025, photovoltaic revenue grew by 63.6% year-on-year to HK$21.063 billion, with gross profit increasing by 47.5% to HK$1.815 billion. In the AR/XR sector, the company’s incubated Thunderbird Innovation continued to lead the industry, capturing 32% of China’s AI/AR glasses market in 2025, ranking first with an absolute advantage, and maintaining rapid growth amid intensifying market competition.

AI Digitization and Full Value Chain Operational Efficiency Reduce Overall Cost Rate

AI-driven digitization and refined operations have enhanced the company’s operational efficiency. TCL Electronics continues to promote the AI+ efficiency revolution, applying advanced technology across R&D, manufacturing, supply chain, and targeted marketing, continuously improving full value chain efficiency. The overall expense ratio decreased by 0.7 percentage points year-on-year to 11.1%. Additionally, the company strengthened its global supply chain layout, improving its ability to respond to international market changes, and implemented organizational adjustments to support strategic objectives.