Despite ongoing significant adjustments in its solar photovoltaic business, TCL Technology Group Corporation has reported a substantial profit increase, driven by the recovery in the semiconductor display industry. On April 29, TCL Technology released its financial results for the first quarter of 2026. During the reporting period, the company achieved revenue of 434.5 billion yuan, an 8.4% year-on-year increase, and a net profit attributable to shareholders of 15.6 billion yuan, surging 53.7% compared to the same period last year.
According to the financial report, TCL Technology's current profitability is primarily supported by its semiconductor display operations. In the first quarter of 2026, TCL China Star, the company's display division, generated revenue of 251.8 billion yuan and a net profit of 18.5 billion yuan, with the net profit attributable to shareholders amounting to 15.6 billion yuan. However, compared to the previous year, TCL China Star's performance was less impressive, with revenue and net profit declining by 8.4% and 20.6%, respectively.
The dual growth in revenue and profit for TCL Technology in the first quarter can be attributed not only to the sustained profitability of the semiconductor display business but also to improved results from TCL Zhonghuan. The financial report indicates that TCL Zhonghuan reported revenue of 65.49 billion yuan for the first quarter of 2026, a 7.34% year-on-year increase, while the net loss attributable to its shareholders narrowed to 16.47 billion yuan from 19.06 billion yuan in the same period last year, representing a 52.8% sequential improvement. Nevertheless, the revenue growth this quarter was largely driven by a surge in orders due to adjustments in export tax rebate policies.
The semiconductor display panel sector is widely recognized as a highly cyclical industry. In search of new growth drivers, TCL Technology acquired Zhonghuan in 2020, which focuses on new energy photovoltaics and semiconductor materials, and stated that it would not pursue further strategic expansions into new sectors. Benefiting from rapid development in the new energy industry, TCL Zhonghuan experienced high growth in 2022, surpassing semiconductor display as TCL Technology's largest revenue source that year. However, this peak performance was short-lived. In recent years, China's photovoltaic industry has faced intense internal competition, leading to product price pressures and significant operational challenges, causing semiconductor display to once again become the primary support for TCL Technology's performance.
TCL Technology highlighted that in the first quarter of 2026, the global LCD panel industry saw a notable improvement in supply and demand dynamics, with overall industry health enhancing and moving toward a stable development path. Specifically, TV panel prices generally increased, while prices for monitor and notebook panels remained stable. However, following a second round of price hikes by mobile phone brands, demand faces a risk of temporary decline.
In recent years, TCL China Star has continued to expand its market share in mainstream display technologies, including the acquisition of LG's LCD panel factory in Guangzhou for 10.8 billion yuan. TCL founder and chairman Li Dongsheng previously stated that while the industry generally expects next-generation display technologies to replace liquid crystal display (LCD) in the relatively near future, based on TCL's development experience, no current technology can replace LCD in large-screen applications. For the foreseeable future, LCD is expected to remain the dominant technology for large-screen displays.
Additionally, TCL Technology continues to invest in next-generation display technologies. The Guangzhou 8.6-generation printed OLED production line (t8 project) is progressing as planned, with the main factory building expected to be completed in the second quarter and equipment installation to commence in the fourth quarter. The Wuhan 5.5-generation printed OLED production line (t12) has achieved stable mass production of medical display products, with IT product mass production scheduled for the third quarter. TCL Technology's significant investments in next-generation display technologies are poised to enter an accelerated phase of returns.
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