Stock loss of HK $334 million

This year may be the most frequently changed year for TCL Group (000100.SZ) business leaders. TCL Multimedia (01070.HK) China Business Center General manager Hanqing left 3 months after the departure, TCL Multimedia CEO Yu Guanghui yesterday also due to performance reasons voluntarily resigned as CEO, and the successor to this position is veteran Charls Zhao.　　Prior to this, as TCL Group Holding subsidiary of Huizhou Tyco State Company chairman, CEO of Charls Zhao at the end of April also took over TCL household electrical Appliances Industry Group CEO, then home Appliance Industry Group, the original CEO Wang Kangping is also because of performance to step down. But the sudden change in personnel is more than that.　　Yesterday, TCL Multimedia Bulletin said, Swanwen has resigned as executive director of the company, thin Lianming also no longer take the position of vice chairman of the company's board of directors, Charls Zhao will formally assume the role of TCL Multimedia Executive Director, CEO on September 10. "It was a good thing that Charls Zhao took over TCL Multimedia, even though it was ordered to be at the company's peril."　　"A domestic color TV manufacturers pointed out that as early as 2004 years ago, Charls Zhao in charge of TCL Multimedia business, very familiar with the operation of television products, and later because Tcl acquisition Thomson losses, and TCL Group sent to the United States to study."　　Coincidentally, this time also because of the loss, let Charls Zhao again tcl Multimedia. Yesterday, TCL Group released the first half of the 2010 performance report, the first half of this year, TCL group revenue 23.166 billion yuan, an increase of 32.18%, achieve net profit of 158 million yuan, the year-on-year growth of 59.35%.　　But TCL Multimedia's first-half earnings of TCL media showed that the first half of TCL multimedia revenue was 12.241 billion, an increase of 7.5%, and a net profit loss of HK $334 million. Fortunately Tcl Communications (02618.HK) handed over a history of the best first-half performance report, let Tcl make up the shortfall.　　Tcl communications revenue of 3.452 billion in the first half of this year, an increase of 160%, achieving net profit of HK $250 million, an increase of 181% per cent. TCL Multimedia earnings show that the company's first half of the product sales structure is obviously defective, LED TV new products on the market too late, and lack of competitiveness, led television in the first half of this year accounted for only 1.5% of LCD TV, far below the average market level of 6.8%.　　As a result, the overall gross profit margin of the first half of the company's domestic market fell from 24.6% last year to 16.2%, with operating losses of HK $182 million. Tcl said the main reason for the loss in the TCL multimedia business was the focus on inventory cleanup of old-style LCD TVs in the second quarter. However, cleaning up inventories has adjusted the product structure of the television business and accelerated the growth of LED TV sales. TCL Multimedia said that although the company's first-half performance is lower than market expectations, but the effect of cleaning up the inventory will gradually appear in the second half. Because, Tcl LED backlight components in Augusthas entered the mass production, it is expected that the LED TV penetration rate will reach 15% of the total sales.　　Tcl's sales figures show that TCL Group sold 429,300 flat-panel TVs in July, with LED TV sales up to 41,800 units, representing a 9.7% per cent share of flat-screen TVs. Still, the new Charls Zhao is not optimistic about the competitive landscape in the television market. Because, including Samsung, Sony and other brands have been significantly lower LCD TV prices, including domestic and foreign television brands are ready to exert force on the LED TV. For example, Skyworth Digital (00751.　　HK) LED TV sales have reached 24% and 16.8% in June and July. In this regard, TCL multimedia sources said that the first half of this year, the company successfully completed the placement and subscription plans, raised 523 million Hong Kong dollar funds, strengthen the company's financial situation, and thus promote the Chinese market LED TV business development. Earnings showed that the amount of cash and bank balances for TCL Multimedia amounted to HK $2.069 billion as at June 30.