TCL Electronics (01070.HK) Announces Interim Results Forecast: Anticipates a 45% to 65% Increase in Adjusted Net Profit for the First Half of 2025

Hong Kong, July 22, 2025 /PR Newswire/ -- TCL Electronics Holdings Limited ("TCL Electronics" or "the Company", 01070.HK) has announced its interim results forecast. Based on the preliminary review of unaudited management accounts and the current available data from the Board of Directors, the Company expects to record an adjusted net profit of approximately HKD9.5 billion to HKD10.8 billion for the first half of 2025, representing a growth of around 45% to 65% compared to the same period in 2024.

The expected significant increase in adjusted net profit is mainly driven by two aspects:

1) TCL Electronics has maintained its strategic direction of "brand leadership, global efficiency, technological driving, and vitality," focusing on "globalization" and "high-endization" development. The Company continues to increase investments in high-end display technologies such as Mini LED and artificial intelligence (AI), aiming to further enhance the competitiveness of its products and drive the globalization strategy. At the same time, TCL Electronics has strengthened its leading layout advantages in global supply chains and channels, enhancing its ability to respond to global operating risks; Moreover, the Company continues to improve its global brand value, with TCL becoming an Olympic Global Partner in early 2025, further triggering the potential of its global brand. Under complex market conditions, the Company's core business scale achieved more quality growth, product and channel structure significantly improved, and innovative business scales maintained a high growth trend.

2) The Company has continued to build extreme cost advantages through digital transformation, automation, and optimization of production capacity. In the first half of 2025, the Company effectively promoted its digital transformation, increased automation and intelligence, adopted large-scale management, and optimized production capacity, enhancing the efficiency of its production, manufacturing, and logistics operations. The Company's overall expense ratio further decreased, and the expense structure became more optimized. Meanwhile, the Company has refined its global talent development system, enhanced talent density, and triggered vitality through equity incentives, driving business performance.

Looking ahead, the Company will continue to focus on enhancing product competitiveness as its core strategy, comprehensively strengthening its global product planning capabilities, and increasing investments in frontier technologies such as high-end displays and AI. At the same time, the Company will deepen its multi-center operation mode, continue to push forward localization strategies, build a consumer-centric intelligent ecosystem supply chain, and comprehensively strengthen its globalization operating capabilities, striving to become a leading smart terminal company.

[1] Adjusted net profit refers to the Company's non-HKSFCR-adjusted comprehensive income, which is an additional (but not replacement) financial metric prepared by the Company to supplement the Hong Kong Financial Reporting Standards-compliant consolidated results. The definition includes adjustments for: (i) investment gains/losses; (ii) profits/losses from disposal of subsidiaries and liquidation; (iii) gains/losses related to share purchases and sales; (iv) sales of non-current assets; and (v) tax effects. Management believes that this metric, excluding certain non-cash items, investments, and transactions in non-current assets, can provide useful supplementary data for investors to evaluate the Company's core business performance. However, this definition does not have a standardized meaning under Hong Kong Financial Reporting Standards and may differ from similar metrics used by other companies, which should not be compared with each other.