TCL Electronics (01070) had strong performance growth in the first three quarters, adjusted net profit of HK$2,243 billion, up 54.5% year-on-year

According to the Zhitong Finance App, TCL Electronics (01070) announced results for the first nine months of 2026, with revenue of HK$95.793 billion, up 15.7% year on year; gross profit of HK$16.26 billion, up 29.5% year on year; net profit to mother of HK$2,104 billion, up 43.6% year on year; adjusted net profit to mother of HK$2,243 billion, up 54.5% year on year.

In the first three quarters of 2026, the Group showed a 19.1% year-on-year increase in business revenue to HK$62.377 billion, a year-on-year increase of 38.4% to HK$11.51 billion, and gross margin of 2.6 percentage points to 18.5% year-on-year, with a year-on-year increase of 2.6 percentage points to 18.5%. Benefiting from the continued increase in the share of mid-range, high-end and large-size TVs, the revenue from the large display business increased 16.7% year on year to HK$52,026 billion, and gross margin increased 3.2 percentage points to 19.5% year on year. Among them, the international market continues to be a key growth engine. Revenue and gross profit performance in all regions is ideal, and product structure optimization further enhances profitability.

In the first three quarters of 2026, the Group's Internet business revenue increased by 28.2% year-on-year to HK$2,695 billion. Among them, the expansion of the higher-margin international Internet business continued to accelerate, and its revenue share of Internet business revenue increased 17.0 percentage points year over year, driving the overall gross margin of the Internet business to increase 4.6 percentage points to 60.9% year on year, continuing to contribute high-quality profits. In the international market, the Group continues to deepen cooperation with Internet giants such as Google, Roku and Netflix, and the content aggregation application TCL Channel continues to iteratively upgrade content richness, user experience, and monetization efficiency. By the end of September 2026, TCL Channel had a cumulative total of 56.99 million users. In the Chinese market, the Group continues to focus on differentiated user experience, uses AI technology to promote the collaborative development of the content ecosystem and smart hardware, and continue to consolidate the basic profit market.

In the first three quarters of 2026, the Group's innovation business revenue increased 8.5% year-on-year to HK$30.68 billion. Among them, the photovoltaic business maintained resilient growth in the face of industry headwinds, and revenue increased 11.8% year over year to HK$18.183 billion. During the reporting period, the Group adhered to the “relatively asset-light” operating model, focused on profitability, and optimized the business structure to expand the core market. The international market focuses on key European countries, and relies on the influence of the SunPower brand to promote integrated integrated energy solutions for photovoltaics, energy storage and heating, and has made substantial progress. The Chinese market has also maintained steady operation in the face of increased competition.

In the first three quarters of 2026, the Group's revenue from all categories of marketing business increased by 3.3% year-on-year to HK$10.950 billion. The Group continues to promote the collaborative development of all categories and improve the smart terminal product matrix layout. Among them, the air conditioning business takes “smart health” as the core position, and continues to refine the AI health and comfort series products. Product strength has been steadily improved, laying a good foundation for the air conditioning business to reach the table and release global channel synergy effects. At the same time, the Group launched the AI companion robot TCL AiMe in August 2026 to further enrich the Group's all-scenario intelligent ecological layout and open up new growth space on the emerging consumer electronics circuit.

According to the announcement, profit growth was mainly due to the Group's continuous expansion of the global market and promotion of high-end product structure during the reporting period, while optimizing the global supply chain and channel layout, releasing scale effects and improving operational efficiency, which led to a significant improvement in the quality and profit level of various businesses.