Core Tip: On May 9, TCL (Group) held a media communication meeting on its 2021 performance. Li Dongsheng, TCL's founder and chairman, said at the meeting that the panel industry as a whole is nearing the bottom. In the down cycle of the industry, TCL will adjust the Product structure, strengthen technology development, continue to promote globalization strategy and other measures to respond.
On May 9, TCL (Group) held a media communication meeting on its performance in 2021. TCL founder and chairman Li Dongsheng said at the meeting that the panel industry as a whole is close to the bottom. In the down cycle of the industry, TCL will adjust product structure, We will respond with measures such as strengthening technology development and continuing to promote globalization strategies.
In 2021, TCL (Group) will achieve an operating income of 252.3 billion yuan, a year-on-year increase of 65%, and a net profit of 17.1 billion yuan, a year-on-year increase of 129%. Top 500 list.
Li Dongsheng believes that there are four main factors that support the growth of TCL's performance: First, reform and transformation to enhance core capabilities. In the past few years, TCL has continued to promote reform and transformation, improved core capabilities, and effectively supported the company's development; second, mergers and acquisitions focused on the main business and opened up new tracks. TCL has made some mergers and acquisitions around core industries, especially the acquisition of Tianjin Zhonghuan, which has greatly enhanced and improved TCL's performance in 2021; the third is to optimize the business structure. TCL has developed from popular products to mid-to-high-end products, and from product assembly to core technology. Optimizing business structure and product structure is an important driving force for its development; fourth, it insists on promoting globalization. TCL's overseas revenue rose 65 percent last year, and exports rose 70 percent.
The panel industry has recently entered a downward cycle. In this regard, Li Dongsheng introduced that from September 2020 to August 2021, the display industry was in an upward cycle, and the rise was relatively strong. The price of main products has doubled. obvious. "As for the inflection point of the downward cycle, I can't predict, but from the perspective of the logic of industrial operation itself, it is close to the bottom."
"For TCL, it is still necessary to focus on the improvement of its own competitiveness." Li Dongsheng said that TCL Huaxing's measures to deal with the panel down cycle include adjusting product structure, strengthening technology development, and expanding overseas business. He said that the current global market demand for display products is growing steadily, with an annual growth rate of about 5% to 8%. Among them, the growth rate of mobile phones and TVs is relatively small, but new applications such as MNT, vehicle and commercial display are growing faster. TCL CSOT's non-TV and non-mobile phone businesses will increase significantly in 2021, and will further increase this year. In addition, TCL Huaxing is also increasing the corresponding capacity construction in the new product structure. For example, the t9 project in Guangzhou is mainly medium-sized commercial display products, and the t5 project in Wuhan is mainly LTPS products.
Regarding TCL Zhonghuan, Li Dongsheng said that the performance of TCL Zhonghuan's new energy photovoltaic business is better than the industry average and better than its peers. After the acquisition of TCL Zhonghuan, through business restructuring, changes in systems and mechanisms, improvement of strategic planning capabilities, and improvement of operational management efficiency, TCL Zhonghuan's competitiveness has been significantly improved. This year, TCL Zhonghuan is confident that it can continue to maintain business growth.
Li Dongsheng also said that in the face of this year's global economic situation, TCL will adhere to the bottom line thinking, "Any major project decision and business decision must be invincible before winning." In terms of business resource allocation, TCL will appropriately shrink, and must Control the pace of development, stabilize operating cash flow, and strictly control the asset-liability ratio. However, he also said that TCL will have firm confidence to maintain strategic focus, continue to promote business strategy, and "seek opportunities in crisis and develop against adversity". Development is the last word. Only development can solve problems in development and be more capable of dealing with them. risks and challenges.
