TCL reported a decline in overall operating income for the first half of 2024, down by 5.78% YoY to 80.22 billion yuan ($11.15 billion). However, the company saw a significant increase in net profit, up by 192.28% YOY to 995 million ($138.34 million) yuan.
| TCL | 2024 H1 (Yuan) | 2024 H1 (USD) |
| Total Operating Income | 80.22 billion | $11.15 billion |
| Net Profit | 995 million | $138.34 million |
| Net Cash Flow from Operating Activities | 12.63 billion | $1.75 billion |
| Display Revenue | 49.88 billion | $6.93 billion |
| Display Net Profit | 2.70 billion | $374.87 million |
| Photovoltaic Revenue | 16.21 billion | $2.25 billion |
| Photovoltaic Net Profit | -3.18 billion | -$441.63 million |
The company’s display business had a good first half of the year, with a 40.39% increase in operating income to 49.877 billion yuan ($6.93 billion), driven by rising LCD panel prices. The net profit was 2.696 billion yuan ($374.87 million), improving by 6.145 billion yuan ($414 million) YoY.
The expectation is that in the second half of 2024 TCL will stabilize production, drop utilization rates at its LCD fabs, and prices will be maintained through supply and demand balancing acts. China’s Sigmaintell says panel prices were 10% higher in the first half of the year, and while TV demand is going to be challenging to maintain, panel manufacturers in China will make adjustments around National Day in China, and may even drop utilization rates further in the fourth quarter.
The real drag on the group’s earnings came from photovoltaics which struggled due to supply-demand imbalances, according to the company, leading to a 53.54% decrease in operating income. The segment posted a net loss of 3.176 billion yuan (-$441.63 million) negatively impacting TCL’s overall net profit by -914 million yuan ($128 million).
