TCL Multimedia loss of HK $991 million in the first three quarters

Tcl Group's home appliance business and mobile phone business listed companies recently released earnings, in the household appliances business losses, the mobile phone business has handed a beautiful earnings, its company to break through the high-end products market, control OEM ratio strategy, but also for manufacturing enterprises to provide a feasible strategy. "Now can be said to fall into a vicious circle, consumer electronics enterprises rely on behalf of the industry to create revenue, but for foreign brands in the foundry, these foreign brands in the fast market."　　"Insiders on the reporter pointed out the current household appliances manufacturers face the embarrassing situation." The OEM TCL Multimedia (01070,HK) earnings, which decided the household appliance industry profit and loss, showed that in January-September the company realized sales revenue of HK $19.095 billion, down 9.5% from the same period last year, and the net profit of the listed companies lost HK $991 million. The main reason for the big losses is that the group has concentrated on cleaning up the old products, and the company said in its earnings that inventories had been cleaned up in the third quarter, meaning the resulting losses would not continue into the quarter.　　In addition, the reduction of OEM orders is also a cause of corporate revenue shrinkage. The data show that the company's first three quarter LCD TV sales of 5.19 million units, down 6% year-on-year, including overseas shipments fell 33.6%. "The decline in sales of LCD products is mainly the adjustment of OEM strategy, we have orders from Philips, and this year the order is indeed reduced." "Charls Zhao, a two-month-old TCL Multimedia executive, told the Daily economic news," he said.　　According to media reports, last year Tcl's Philips OEM orders have 1.7 million units, but this year the first three-quarter multimedia OEM Total order only more than 300,000 units. "We will in the international market actively seek to cooperate with the major well-known brands opportunities."　　Charls Zhao introduced, the company has cooperated with Toshiba to set up a joint venture company, but also with the Internet business Amazon to establish a cooperative relationship for products into the North American market expansion channels. At the same time, TCL's mobile phone business OEM's good development, for the group's first three quarterly profit to make a contribution. Tcl (02618,HK) reported that the first three quarters attributable to shareholders net profit of HK $202 million, an increase of 101% year-on-year, of which sales of overseas markets increased by 160% to 9.1 million year-on-year.　　Guo Eping, chief executive of TCL Communications, said the main benefit was the cooperation with Vodafone and other customers. In fact, OEM in many home appliances enterprises occupy an important position.　　Konka has revealed that the first half of Konka 75% of the revenue from the OEM. Foreign capital to seize half in these home appliances enterprises will be OEM as an important strategy, the foreign brands they have to occupy more and more domestic market.　　"11" Golden Week, Sony, Toshiba and other foreign-made TV sets have been two consecutive prices, some products even lower than domestic brand prices, to seize the domestic color TV market share. A domestic color TV manufacturer told the Daily economic news reporter, foreign color TV companies have a firm price, "one reason is that they increased the proportion of the foundry, reducing costs." "According to DIsplaysearch's report shows that the second quarter of this year, LCD TV OEM supply ratio reached 32%, the Crown Czech technology, Foxconn Group and Wei-da Tatsu respectively to 27%, 15% and 10% of the market share, ranked TV OEM manufacturers in the first three.　　Among them, color TV brand manufacturers Philips and Toshiba OEM ratio has crossed 50%, Sony is also close to 50%.　　Lu Xianbo, vice president of China Electronics Chamber of Commerce, pointed out to reporters that the gross margin of OEM for foreign brands is less than half of its own brand. Tcl invested heavily in the establishment of huaxing photoelectric 8.5 generation production line, it seems to reflect the group's consideration. "Anti-view color TV industry development, in several transitions, can get the leading sharp, LG, are at the top of the production capacity, the whole industry shuffle words, these brands can still maintain revenue."　　"Li said. Guo Eping also recognized the problems caused by phone OEMs, "It is expected that OEM in the mobile phone business will grow in the future, but we will control around 30%." Our acquisition of Alcatel's core technology has enabled us to get through the patent barriers that most mobile phone companies encounter in global sales. "Home appliance expert Liu Buzhong (blog) in the daily economic news, said in an interview, Tcl's losses there is another reason to ignore," the Internet TV investment is too large, but this business does not bring the expected results of enterprises. ”