The solution of the Li Dongsheng TCL annual report loss from the two joint venture company

TCL group (000100) yesterday released the first half of this year's annual financial report shows that the first half of this year, although the company achieved sales revenue of 24 billion 417 million yuan, an increase of 65.39, but the total profit was -13.68 billion yuan, down 278.79% compared with the same period last year, net profit of -6.92 billion, earnings per share -0.268 yuan. This is the TCL group's first half year loss report. TCL Group Chairman and CEO Li Dongsheng said that the first half of this year was the result of substantial losses, mainly due to bad influence, the market environment and the international integration has not yet completed the TCL a year ago with Thomson joint venture TTE (TCL- Thomson) scheduled 18 month plan may be affected by the loss of twist, but he is confident let TCL return to the track of earnings next year.

Semi annual losses from the two major joint venture

The TCL group suffered huge losses mainly because of huge losses in its two joint venture TTE and TCL mobile, the whole group will be dragged into the quagmire of losses, of which TCL mobile and its joint venture with Al Carter T&A (Al Carter TCL- mobile phone company) affect the business of the group's biggest reversal. According to semi annual report shows that in the first half of this year, TCL Group Holdings subsidiary TCL mobile and TA loss of 546 million 40 thousand yuan and $630 million 310 thousand, becoming the group's main source of loss. Li Dongsheng said that at present, the main task of the TCL group is a turnaround, one is the joint venture of the two companies to integrate. Li Dongsheng said that the basic direction of TCL is the open source and throttling losses to the two direction to work, save the cost of TCL is currently doing manufacturing, procurement, supply chain, in this regard, TCL through joint procurement of the global supply chain, in particular to a considerable part of the cost of the parts procurement from abroad to China, greatly reduced the cost of. Li Dongsheng said that the cost of manufacturing, procurement, supply chain has been done for a year, the effect is very significant, which is the most significant savings in procurement.

Another step is to increase the value of losses, improve product market share, in this regard, Li Dongsheng said that this is a great challenge for TCL. He said, at present, the company has been in the European and North American markets increased the number of value creation activities, so far, have received good results, such as in the North American market, the large customer sales this year have obvious improvement. In addition, TCL is also trying to establish their own advantages in product innovation, Li Dongsheng pointed out that an important task this year TTE integration is the integration of the global R & D resources to upgrade its technology, the speed of product development and improve product innovation ability.

European quality and Chinese cost will become a new strategy

Talking about the integration, Li Dongsheng said that he wants to go to the second half of next year to reach the ideal level of integration, the ideal level of what he said is to do in Europe and overseas business accounted for separately, the main market share remained stable increase, can have profit contribution to the company and its brands to become more competitive.

Li Dongsheng said, the biggest advantage of TCL and Al Carter cooperation is to China relative competitive cost advantage and Al Carter's leading technology advantages, but before the company's focus of integration in this area is not prominent, the new strategy proposed by TA is now "European quality, China cost", hope that through this strategy and TCL Al Carter added advantage into full play. According to Li Dongsheng revealed that in recent months to change the strategy has shown a better advantage, first of all, the overseas market, TA sales in the steady growth. In TCL mobile, the company is doing substantial adjustments to the sales and business scale at present, he said to improve the speed and efficiency of the whole supply, the second half of this year, with the launch of new products, mobile phone sales will be more than half of a larger increase, the operating conditions will also be improved significantly compared with the first half.

As for the beginning of the year of 20 million mobile phone sales target, Li Dongsheng admitted that due to the deterioration of the market environment, the goal of this year has been unable to achieve this goal, TCL has been modified. He said, the first half of the year, mobile phone sales of TCL group is 4 million 830 thousand, while reach the goal of 20 million hopeless, but he believes that the second half of the year with the launch of new products, mobile phone sales will have a greater increase than the first half.

Previously, the latest market research company DisplaySearch released the second quarter of this year, Samsung with 9.9% market share surpassed SONY to become the world's largest TV manufacturers, and TCL with the method of state power giant Thomson joint venture TTE market share by 8.1% in the first quarter to 7.5%, ranking the first dropped to third place. In this regard, Li Dongsheng said that the current TCL is still the world's number one color TV manufacturers. He said, the latest data released by DisplaySearch statistics only TTE this, and only statistical TCL, Thompson and RCA these three brands, but in fact, TCL in addition to the three brands, and Leroy, Schneider and other brands. In addition TCL also do OEM for foreign companies, if these figures are included, the first half of this year, color TV sales should be 9 million 930 thousand units, the market share of more than 7.5% digital DisplaySearch announced that Li Dongsheng TCL is expected this year TV manufacturing and sales will reach 22 million units, the world's top TV manufacturers status will not be shake.

TCL group semi annual report also shows that in the various operations of TCL, multimedia electronic business growth performance is relatively good, this year