The first three quarter loss of 1 billion 139 million yuan TCL Yukui year on TTE

For TCL group (000100.SZ), this year can be described as a loss year.

Last weekend, TCL group released a 2005 Yukui announcement, and at the same time, the two Hongkong listed subsidiary of TCL multimedia communications (1070 HK) and TCL (2618.HK) also released three quarter earnings, reported losses. Among them, TCL communication in the first three quarters of this year's turnover was only HK $4 billion 21 million, operating losses amounted to $1 billion 575 million, becoming the biggest loss in group TCL and TCL multimedia source; the first three quarters of the turnover of HK $24 billion, an operating loss of approximately HK $212 million.

By the two joint venture company is still in the period of integration of TTE (TCL- Thomson Electronics Co. Ltd. (TCL-) and T & a mobile phone company, Al Carter) and drag TCL mobile performance loss, TCL group in the first three quarters of this year has been a loss of 1 billion 139 million yuan.

Strategic change affecting dealers

According to people familiar with the operation of the TCL Communications said, Wan Mingjian after the departure of former TCL communications chairman Yuan Xincheng abolished the TCL mobile package (China national general agent) and the province (provincial agency) package mode, platform will offices to logistics and funds. Due to hurt the interests of dealers, coupled with the delay in the listing of new mobile phones, eventually led to a decline in TCL mobile phone sales in china.

TCL communications chief executive officer (CEO) Liu Fei took office, began to recover in the province and package package, now formed compound marketing mode, but the channel within a year changes so frequently, the enthusiasm of dealers have been affected, is difficult to recover. With the new listing, TCL channel is still in the recovery process.

Strive for losses

TCL mobile insiders told reporters, Liu Fei in order to achieve by the end of this year, the month or quarter losses when the target, the T & a company began layoffs in June, Al Carter in the domestic mobile phone because there is no new product launch, the monthly decline in sales, business focus has shifted to the overseas market. While TCL mobile market not only significantly reduced costs and management costs, also is the TCL mobile marketing center moved to Shenzhen, Huizhou is located in the center of research and development also gradually transfer to Shenzhen, Huizhou will become the headquarters of its mobile phone production base.

The TCL group pointed out that the third quarter is TCL mobile and complete integration of T & a transition period, while TCL (including Al Carter) mobile phone in foreign brands and the "black mobile phone" double squeeze, third quarter home sales fell 44% to 904 thousand, but with Al Carter brand, its overseas sales have increased by 92% to 1 million 500 thousand units.

CCID Consulting analyst Jiang Lifeng said, TCL mobile phone sales in September has rebounded, but the key to the profitability of the phone depends on gross margin, if the gross profit margin is too low. Now for the TCL mobile phone, the most important thing is the size of the original TCL acquisition of Al Carter's mobile phone business is also in order to scale. The fourth quarter is the golden age of mobile phone sales improve, if the TCL mobile phone sales can be maintained in accordance with the momentum in September, or good.

In the difficult transformation of the communications business at the same time, the core business of TCL color TV business TTE recently conducted a major personnel adjustment to enhance the management. Veteran Hu Qiusheng out of any executive chairman of TTE, meanwhile, TCL group's chief financial officer, vice president of was transferred to TTE. Visible, Li Dongsheng, chairman of TCL group hopes to win the first joint venture TTE turnaround turnaround.

The third quarter of this year, TTE in China, Europe and North America, emerging markets and Strategies of OEM, the three major areas of color TV sales were 2 million 280 thousand units, 1 million 430 thousand units and 2 million 710 thousand units, which is three of the sales accounted for TTE quarter color TV sales revenue of 38%, 44% and 18%. TTE's China, emerging markets and OEM business performed well, but Europe and the United States business is still a loss. Therefore, how to strengthen the business of North America and Europe is the top priority of TTE turnaround, the recent personnel adjustment also reflects this idea.