TCL Technology Group Corporation announced that it conducted a performance briefing on March 31, 2026.
During the session, the company addressed several investor inquiries. Regarding long-term growth drivers, the company stated that since its restructuring in 2019, it has consistently focused on high-tech, capital-intensive, and long-cycle industries. It has established a core business layout centered on semiconductor display, new energy photovoltaics, and semiconductor materials. The company believes its display products, as essential components for global electronic devices, operate in a market exceeding one trillion yuan, with continued growth potential driven by increasing demand, larger screen sizes, and higher value-added features. Its subsidiary TCL China Star, which surpassed 100 billion yuan in revenue last year, has significant growth potential in a market ten times its size and has set an aggressive five-year growth plan. Another subsidiary, Moka, is expanding into new growth areas like monitors and commercial displays through deep integration with TCL China Star.
The new energy photovoltaic business is positioned to benefit from the global shift towards clean energy, a trend accelerated by geopolitical conflicts. The company is enhancing its module business through organic growth and acquisitions, advancing its "moderate integration" and globalization strategy, and has built a leading patent portfolio in next-generation BC technology.
Concerning a recent refinancing plan, the company explained that from 2021 to 2025, it raised 18.3 billion yuan in equity financing but invested over 60 billion yuan in new production lines, including acquisitions, and acquired more than 30 billion yuan in minority stakes from local government industrial funds. The current acquisition is a prudent financial decision aimed at covering short-term debt and is expected to boost net profit attributable to the parent company and improve the financial structure.
On TV panel prices, the company noted that prices have generally increased from January to March, with mid-size and large-size products seeing significant rises. Strong downstream demand and cost pass-through from rising commodity prices are expected to support continued price increases in the second quarter. Regarding capacity utilization, production lines were mostly at full capacity after the Spring Festival holiday, with some equipment maintenance planned for Q2, which will be adjusted based on demand.
For the t9 production line, Phase II was completed in the second half of 2025. The line's net profit surged from 274 million yuan in 2024 to 1.158 billion yuan in 2025, with the net profit margin rising from about 3% to over 7%. For 2026, with both phases operating at full capacity, the line is expected to see significant profit growth by leveraging synergies with the t11 line's IPS technology and focusing on high-value-added products.
The company's G5.5 generation printed OLED line (t12) achieved mass production in 2024, with yield rates steadily improving. Several consumer electronics products have received orders from major clients, with mass production expected within the year. The technology offers advantages in investment cost, operating cost, display quality, and product lifespan, supported by a comprehensive portfolio of intellectual property rights.
Regarding depreciation trends, while the new t8 line under construction will add some depreciation, it will not alter the overall declining trend for the display business. Depreciation peaked in 2025 and is expected to decline gradually from 2026, with a more significant drop starting in 2027.
The t11 production line, acquired last year, is already profitable. With equipment depreciation largely complete, the focus is on improving yield rates, reducing costs, and localizing material sourcing. The line is being adapted for monitor production, which carries higher average selling prices than TV panels, expected to enhance profitability and help balance TV panel supply and demand. The line is projected to approach the profitability level of self-built G8.5 generation lines in 2026 and reach an ideal level by 2027.
Regarding TCL Zhonghuan's investment in Dawn Energy, the move is a strategic step to seize consolidation opportunities in the photovoltaic industry. It enhances the integrated industrial chain from wafers to cells and modules, strengthens synergies, and improves technical capabilities. The investment will help phase out inefficient capacity, build a new technology ecosystem, and synergize with the company's BC patent technology and the target company's BC cell/module manufacturing processes.
TCL Technology Group Corporation's main businesses are semiconductor display and new energy photovoltaics and silicon materials. According to its 2025 annual report, operating revenue was 184.211 billion yuan, up 11.67% year-over-year; net profit attributable to the parent company was 4.517 billion yuan, up 188.78%; and net profit after extraordinary items was 2.897 billion yuan, up 870.95%. In the fourth quarter of 2025, revenue was 48.146 billion yuan, up 15.1% year-over-year; net profit attributable to the parent company was 1.47 billion yuan, up 3689.39%; and net profit after extraordinary items was 468 million yuan, up 208.76%. The debt-to-asset ratio was 64.23%, investment income was 2.522 billion yuan, financial expenses were 4.77 billion yuan, and the gross profit margin was 13.15%.
In the past 90 days, three institutions have issued ratings for the stock, all recommending "Buy." Margin trading data shows a net inflow of 602 million yuan over the past three months, while securities lending saw a net outflow of 9.7593 million yuan.
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