TCL multimedia Q3 of affected LCD TV service

TCL Multimedia (01070,HK) has issued a profit warning in anticipation of a loss of three months as at the end of September, while earnings were recorded in the same period last year. However, the group is still expected to make a profit by the end of September 9 months.

TCL Multimedia says the loss was mainly due to the domestic appliance energy-saving subsidy policy in June after the exit, the Chinese LCD TV market demand fell, the third quarter of China's sales did not reach the expected target; early this year, the group on the market to judge more optimistic, more inventory of raw materials, raw material prices have to make a larger

"The lack of policy incentives and the early release of purchase demand can be said to have already overdrawn some of the market demand." "Home appliance industry observer Liang said that after the home appliance energy-saving subsidy policy withdrew, the color TV industry is very big, compared to the first half, all of the color TV manufacturers ' product sales in the third quarter have a significant decline."

Although the third quarter of color TV sales are not very good, but Liang that there is still a bright spot, one is the rapid development of 4K TV, and the second is the line of electric business channels in the field of growth is more obvious.

According to the Austrian Dimension Consulting (AVC) Zhou Du push total data show, mid-Autumn Festival, National Day Gold three weeks (September 16 ~10 6th), China's color TV market overall sales scale of 6.242 million, down 1%, of which LCD TV 6.046 million units, the same year; plasma TV 151,000, down 25% CRT TV 45,000 down 33%. Sales channels, the traditional channel sales of 5.944 million units, down 2.7% year-on-year, online sales channels 298,000 units up 50.5%.

At the same time, TCL Multimedia also said that the group is expected to the end of September 9 months, LCD TV sales growth of 15.4%. Management expects the group's operations to improve in the quarter.

Npddisplaysearch said that after the Golden Week, the inventory of LCD TVs dropped to 6-7 weeks from the end of September 8-10 weeks. This is in line with what most local brands expect to bring inventories down to normal levels before the next sales rush comes. The demand for New Year's Day and Lunar New Year holidays in early January will continue to restore purchasing power for TV makers. However, the current downward trend of panel prices, so that the main local brands of the panel buying strategy still have to adopt a conservative attitude to avoid the potential risk of loss.