Growth Trend Remains Strong in the PRC Market with Sales Increased by 32.2% Year-On-Year in Q4

HONG KONG, Feb. 1, 2023 /PRNewswire/ -- TCL Electronics Holdings Limited ("TCL Electronics" or the "Company", 01070.HK) announced today its global sales volume for 2022. Sales volume of TCL smart screens increased by 0.8% year-on-year, reaching 23.78 million sets in 2022, of which 7.16 million sets were sold in the fourth quarter, an improvement of 9.7% year-on-year. As TCL continues to advance its dual-brand strategy with FFalcon and further optimize its online and offline channels, its sales volume in China continues to grow at a high rate. In the fourth quarter of 2022, the sales volume of TCL smart screens in the PRC market increased by 32.2% year-on-year.

Thanks to continuous product upgrades empowered by technological improvements, large-screen and mid-to high-end products are gaining more and more favor from customers. In 2022, TCL large-sized smart screens witnessed a significant sales growth. Sales volume of 65 inches and above smart screens increased by 75.7% year-on-year, accounting for 19.3% of the overall sales volume with a year-on-year growth of 8.2 percentage points. The overall average size of TCL smart screens being sold increased by 3.4 inches year-on-year to 48.4 inches, showing an obvious trend towards large screens.

As a pioneer in Mini LED technologies, TCL Electronics launched a number of new Mini LED products in the global market in 2022 that are highly recognized by consumers and the industry. In December last year, two TCL Mini LED 4K smart screens, 75C935 and 75C835, won the CES^®2023 Innovation Awards for their striking innovative design and advanced Mini LED display technologies. In the recently announced "Global Top Brands" awards, TCL QD-Mini LED Smart Screen X11 and TCL C845 4K Mini LED TV won the "Award for Innovative Mini LED Display of the Year" and the "Gold Award for New Generation Display Technology", respectively. In 2022, TCL Mini LED smart screens experienced leapfrogging development, with sales volume rising significantly up by 26.8% year-on-year globally.

In the PRC market, sales volume of TCL smart screens increased by 21.3% year-on-year in 2022, with the proportion of large-sized ones continued to climb to a record high. In 2022, sales volume of TCL 65 inches and above smart screens increased by 85.0% in the PRC market, with its proportion of the overall sales volume increasing by 16.6 percentage points year-on-year to 43.6%; in terms of TCL 75 inches and above smart screens, its proportion of the overall sales volume also increased by 13.3 percentage points year-on-year to 21.2%. The average size of TCL smart screens sold in the PRC market rose from 52.4 inches to 56.9 inches, a significant increase of 4.5 inches year-on-year.

In the international market, factors such as inflation and geopolitics are still affecting the global economy, and the increasing cost of living has made demand relatively weak in some terminal consumer markets. As a result, the sales volume of TCL smart screens dropped slightly in the international market in 2022, but it kept climbing up in the third and fourth quarters, recording a year-on-year increase of 2.6% in the second half of the year. By region, sales volume in emerging markets^[1] grew by 10.4% year-on-year in 2022, with sales in the Philippines, Turkey and Indonesia increasing by 43.0%,  52.3% and 62.0% year-on-year, respectively. The unit market share of TCL smart screens remained No.1 in the Philippines, Australia and Pakistan^[2]. Sales volume in Europe also recorded positive growth, up by 5.3% year-on-year, with sales in Benelux^[3] and the UK increasing by 41.3% and 53.8% year-on-year, respectively. North American market recorded decline due to the previously excessive demand caused by the pandemic. However, the unit market share of TCL smart screens in the U.S. continued to increase with its ranking firmly remaining in the second place^[4].

In addition to smart screens, TCL Electronics launched a number of new products such as smart tablet with eye protection features, smartphones and glasses in 2022, among which, TCL RayNeo Air XR smart glasses won the VR/AR Innovation Award at the 2022 World VR Industry Conference. The total sales volume of small and medium-sized display products of TCL Electronics reached 16.44 million sets in 2022.

In the all-category marketing business, TCL Electronics' strong brand influence and channel advantages accelerated the growth of its global distribution of ACs, refrigerators and washing machines. TCL Air Conditioner insists on taking the new track of fresh air system as the breakthrough point for its air conditioner business. At the end of 2022, the Company launched the new product Fresh-IN III with a two-way air replacement mechanism for maximum fresh air, introducing the concept of "breathable fresh air" to consumers. As for refrigerators and washing machines, TCL Q10 Grid Refrigerator and TCL twin cabin washing machine released in October 2022 were awarded the "Technology Innovation Award" and "Design Innovation Award" by the China Household Electric Appliance Research Institute by virtue of their unique innovative technologies, and their technical strength was recognized by the industry.

In 2023, TCL Electronics will continue to pursue the strategy of "Value Led by Brand with Relative Cost Advantage". The Company will strengthen its advantages in the global market, precipitate higher value brand competitiveness, and actively implement its all-category development strategy for an "intelligent IoT ecosystem", striving to bring more comfort to consumers and become a world-leading enterprise of smart devices.

Sales Data for the Year of 2022 (Unaudited)
Sets
Sales Volume of Large-Sized Display Products	23,778,385
- 65-Inch and Above TCL Smart Screens	19.3 %
- 75-Inch and Above TCL Smart Screens	7.0 %
Sales Volume of Small and Medium-Sized Display Products	16,438,065

 

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About TCL Electronics

TCL Electronics Holdings Limited (01070.HK, incorporated in the Cayman Islands with limited liability) was listed on the mainboard of the Hong Kong Stock Exchange in November 1999. It is engaged in display business, innovative business and internet business. TCL Electronics actively transforms and innovates under the strategy of "Value Led by Brand with Relative Cost Advantage". Focusing on the mid-to-high-end markets around the world, the Company strives to consolidate the "intelligent IoT ecosystem" strategy and is committed to providing users with an all-scenario smart and healthy life while developing into a world-leading smart technology company. TCL Electronics is part of the Shenzhen-Hong Kong Stock Connect program and is included in the Hang Seng Stock Connect Hong Kong Index, the Hang Seng Composite MidCap & SmallCap Index and the Hang Seng Corporate Sustainability Benchmark Index. Besides, it has received Hang Seng Index's ESG rating of A for five consecutive years since 2018.

For more information, please visit the investor relations web page of TCL Electronics at http://electronics.tcl.com or follow the WeChat Official Page of TCL Electronics investor relations by scanning the QR code below.

[1] Emerging markets include Asia Pacific, Latin America as well as Central and East Asia.

[2] Source: Gfk, data collected from January to November, 2022.

[3] Belgium, the Netherland and Luxemburg.

[4] Source: NPD, data collected from January to November, 2022.

 

Source: TCL Electronics Holdings Limited Related Stocks: HongKong:01070 HongKong:1070