TCL Electronics posts 2025 profit surge and lifts dividend by 56.6%

Bulletin Express03-27

Earnings snapshot TCL Electronics (01070) reported revenue of HK$114.58 billion for 2025, up 15.4% year-on-year. Profit after tax rose 36.7% to HK$2.53 billion, while profit attributable to shareholders increased 41.8% to HK$2.50 billion. On a non-HKFRS basis, adjusted profit attributable to shareholders advanced 56.5% to HK$2.51 billion.

Segment performance • Display business contributed HK$75.80 billion, rising 9.2% and accounting for 66.2% of total revenue. • Innovative businesses (photovoltaics, all-category marketing, smart connection & smart home) delivered HK$35.63 billion, up 31.9% and representing 31.1% of revenue; photovoltaic revenue alone grew 63.6% to HK$21.06 billion. • Internet business revenue climbed 18.3% to HK$3.11 billion, supported by overseas user expansion.

Profitability Gross profit increased 15.1% to HK$17.90 billion; the overall gross margin was 15.6%. The display segment margin improved by 1.1 percentage points to 16.5%, driven by a larger share of mid-to-high-end and large-screen TVs. Operating efficiency gains cut the overall expense ratio by 0.7 percentage points to 11.1%.

Financial position Cash and cash equivalents rose 54.2% to HK$13.52 billion. Net gearing remained at 0.0%, reflecting a net cash position. Capital commitments stood at HK$170.26 million, down from HK$539.90 million a year earlier.

Dividend The board proposed a final dividend of HK49.80 cents per share, equivalent to roughly 50% of adjusted profit and 56.6% higher than the prior year’s payout. The dividend is subject to approval at the AGM scheduled for 22 June 2026, with a record date of 26 June 2026 and expected payment on or about 30 July 2026.

Outlook highlights Management will continue to pursue “Globalisation 3.0” and “Mid-to-High-End” strategies, prioritising premium TV technologies, expanding distributed photovoltaic operations—particularly in Europe—and investing in AI-driven products such as AR/XR devices and home robots.

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