Slides
Page 1
TCL Electronics Holdings Limited丨2025 Interim Results 2025 Interim Results TCL ELECTRONICS HOLDINGS LIMITED Incorporated in the Cayman Islands with Limited Liability (Stock Code: 01070.HK) TCL电子控股有限公司
Page 2
TCL Electronics Holdings Limited丨2025 Interim Results Market Environment 01 02 03 04 Segment Performance OutlookOverall Results Contents 2
Page 3
TCL Electronics Holdings Limited丨2025 Interim Results Market Environment 01 3
Page 4
TCL Electronics Holdings Limited丨2025 Interim Results 27% 33% 42% 51% 61% 66% 67% 66% 71% 26% 24% 24% 23% 21% 19% 22% 22% 23% 47% 43% 34% 26% 18% 15% 11% 12% 6% 2017 2018 2019 2020 2021 2022 2023 2024 2025F Chinese Mainland Taiwan, China Japan & Korea Unit: USD Market Share of Panel Manufacturer2 In 2019, capacity in Mainland China surpassed that of Japan and South Korea Panel Price Trend2 Size Structure Trend of Global TV Shipment 1Global TV Shipment1 of 2025 H1 Unit: million sets Global Mini LED TV Demand Forecast2 94.57 million sets Industry丨 11.5% 13.2% 13.5% 14.5% 14.8% 14.6% 3.0% 4.5% 6.0% 8.7% 11.2% 12.2% 2020 2021 2022 2023 2024 2025H1 <32" 32-50" 55-60" 65-70" ≥75" 34 35 36 37 37 37 36 35 35 35 35 35 36 37 37 37 36 35 33 126 129 131 134 135 135 132 128 125 125 125 125 126 127 127 127 127 125 118 170 175 178 182 184 184 180 176 175 175 175 176 178 180 181 181 181 179 170 233 238 239 244 246 246 242 238 236 236 236 237 239 241 242 242 242 240 232 JAN-24 APR-24 JUL-24 OCT-24 JAN-25 APR-25 JUL-25 32" HD 55" UHD 65" UHD 75" UHD 221.4 222.9 225.5 213.5 203.3 201.4 208.8 94.646.1% 49.0% 52.2% 52.8% 53.5% 53.8% 54.6% 54.8% 2018 2019 2020 2021 2022 2023 2024 2025 H1 Global Shipment Concentration of Top 4 Brands Global TV Shipment and Concentration of Top 4 Brands1 Data Source: 1.Omdia 2. Sigmaintell, the market share is calculated based on the global TV panel shipment +0.1% Global TV Market: Stable Demand, Rising Brand Concentration, and Accelerated Growth in Large-Sized and Mini LED TVs; Overseas Panel Production Capacity Further Concentrates among Chinese Players, Enhancing Global Competitiveness of Vertically Integrated Chinese TV Brands Unit: million sets 17.1 20.3 19.0 15.9 13.0 7.1 2.3 2.4% -3.7% -4.8% 4.7% 4.4% 5.0% -6.9% China North America Europe Asia Pacific Latin America Central and Eastern Africa Japan Shipment YoY 0.6 0.9 4.6 9.0 12.4 14.4 15.9 2.3 2.0 2.4 4.3 6.4 8.4 10.0 1.3% 1.4% 3.2% 6.2% 8.7% 10.7% 12.4% 2022 2023 2024 2025F 2026F 2027F 2028F The PRC Market Overseas Market Penetration Rate CARG of 2024-2028 Global +39.6% PRC +36.4% Overseas +45.3% 4
Page 5
TCL Electronics Holdings Limited丨2025 Interim Results Brand distribution + mobile devices Stable space, regional opportunities Increase market share and stabilise profitability New energy + AR + AI Strong growth potential Enhance Capabilities for Scalable Growth Activate Second Growth Curve -1.2% YoY Global smartphone shipment of 682 million in 2025 H1 +12.4% YoY Global tablet shipment of 72.79 million in 2025 H1 Steady smartphone demand and sustained tablet growth in 2025 H15 Annual growth rate forecast for 2025-2029 is expected to remain between 2-5% Unit: RMB Air Conditioner 481.4 billion Washing Machine 333.2 billion Refrigerator 393.4 billion Market size of air conditioner, refrigerator and washing machine remains stable4， “industry leadership” solidifies amid potential early consolidation Expansion of industrial layout in niche new business sectors for rapid breakthough Newly installed and grid-connected PV capacity in China in 2025 H11 212GW +106% YoY Forecast for global newly installed PV capacity in 20252 630GW +19% YoY Forecast for newly installed PV capacity in China in 20252 300GW New Energy PV End- Market and Forecast of which: distributed PV newly installed 2 143GW US$ 83 billion Forecast for global market size of AR/VR in 20293 New Trend AR/VR/AI +45% of which: distributed PV newly installed1 113GW +113% YoY New Business Sectors Show Robust Growth Potential Empowered by AI-Driven Efficiency and Scenario Innovation; Scale of Air Conditioners, Refrigerators and Washing Machines Stabilise, with Steady Smartphone Demand and Sustained Tablet Demand GrowthIndustry丨 Annual growth rate forecast for 2025-2029 Data Source: 1. National Energy Administration 2. China Photovoltaic Industry Association 3. Sigmaintell/ChinaIRN/Research and Markets 4. The Company’s forecast data 5.IDC Companion robot Global market forecast Advances in large multimodal model are propelling technological frontiers Companion robot market presents a vast and compelling growth opportunity in the future Global aging population + increasing prevalence of solo living are driving significant and unmet demand for emotional companionship 5
Page 6
TCL Electronics Holdings Limited丨2025 Interim Results Overall Results 02 6
Page 7
TCL Electronics Holdings Limited丨2025 Interim Results 11.5% 2025 Interim Results Highlights丨Achieve Quality-Driven Growth in Global Business and Remarkable Results in Mid-to-High-End Strategy, Continuous Improvement in Profitability Revenue HK$54.78 billion +20.4% yoy Gross Profit^ HK$8.37 billion +16.0% yoy Adjusted profit attributable to owners of the parent 1 HK$1.06 billion +62.0% yoy Profit after Tax HK$1.05 billion +60.5% yoy Revenue scale realises growth with quality, profit maintains a strong upward trend Net Gearing ratio3 Remained at 0% Cash and cash equivalents HK$11.44 billion yoy 30.4% Overall expense2 ratio Continuous enhancement in operational efficiency, robust financial position High dividend policy maintained since 2017 to reward shareholders 2024 annual dividend distribution HK 31.80 cents Dividend payout ratio4 reached 50% Leading global scale for TCL TV, driven by strong mid-to-high-end product performance Global shipment yoy 13.46million sets 7.6% Global Brand Price Index5 Mini LED TV yoy Proportion of global shipment of TCL TV 1.37million sets 176.1% 10.8% yoy QLED TV 3.04million sets 24.0% ≥75” TV 1.91million sets 14.2% yoy 73.7% yoy 29.7% 6.6 p.p. yoy 9.1 p.p. yoy 2.4 p.p. Performance of mid-to-high-end products Overall performance Global market share5 14.2% yoy 0.9 p.p. yoy 1.0 p.p. Notes: 1. Adjusted profit attributable to owners of the parent is defined as profit attributable to owners of the parent after adding bac k the following adjustments: (i) (gain)/loss from investment companies, net; (ii) (gain)/loss on disposal and liquidation of subsidiaries, net; (iii) (gain) /loss related to call options and put options, net; (iv) (gain)/loss on disposal of non -current assets, net; and (v) related income tax effect 2. Overall expenses include selling and distribution expenses and administrative expenses 3. Net gearing ratio was calculated by net borrowings (i.e. total interest -bearing bank and other borrowings and lease liabilities, less cash and cash equivalents, and restricted cash and pledged deposits), divided by equity attributable to owners of the parent 4. Dividend payout ratio was calculated by adjusted profit attributable to owners of the parent as the denominator 5.Data source: Omdia, global brand TV shipment in the first half of 2025, and the Brand Price Index equals the market share of sales revenue divi ded by the market share of shipment ^ Gross profit data for the first half of 2024 has been restated Global shipment Global shipment Global shipment Proportion of global shipment of TCL TV Proportion of global shipment of TCL TV 93 yoy 1.7%Global Ranking5 No.2 7
Page 8
TCL Electronics Holdings Limited丨2025 Interim Results 2025 Interim Results Highlights丨Mid-to-High-End Strategy Fuels Quality-Led Growth in Display; Internet Business Maintains Strong Profitability; Innovation Scale Soars with Continued AI Breakthroughs HK$33.41 billion +10.9% yoy Revenue Gross Profit^ +11.4% Unit: HK$ billion Large-Sized Display HK$28.35 billion Small-and-Medium- Sized Display HK$4.56 billion Smart Commercial Display HK$504 million + 9.4% + 21.3% +12.9% 4.67 5.20 Gross Profit Margin^ +2.7% 1.21 1.46 2024 H1 2025 H1 Unit: HK$ billion Revenue 53.9% 54.4% 2024 H1 2025 H1 Innovative Business: Revenue maintained strong double-digit growth at 42.4% yoy, reaching HK$19.88 billion, operational quality continues to increase Revenue Gross Profit^ Photovoltaics Business scale continued robust growth; gross profit margin reached 9.6% 7.75 7.84 2024 H1 2025 H1 Revenue Revenue Contribution Ratio All-Category Marketing Leveraged overseas channels to drive steady business growth Smart Connection and Smart Home 0.93 0.90 2024 H1 2025 H1 Profitability continued to improve +20.3% +0.5 p.p. 20.1% 23.6% 2024 H1 2025 H1 +3.5 p.p.+1.2% -3.7% 43.8% 39.7% 56.2% 60.3% 2024 H1 2025 H1 Domestic Overseas Display Business: Leveraging global leading advantage in large-sized displays, overall performance experiences quality-led improvement, revenue achieves double-digit YoY growth with improved gross profit margin + 9.4% 4.00 4.51 0.61 0.63 0.06 0.06 2024 H1 2025 H1 Smart Commercial Display Small-and-Medium-Sized Display Large-Sized Display 15.5% 15.4%15.6% 15.9% Display Business Large-Sized Display 2024 H1 2025 H1 +0.1 p.p. +0.5 p.p. 5.27 11.14 2024 H1 2025 H1 0.54 1.07 2024 H1 2025 H1 +98.5%+111.3% ^ Gross profit/gross profit margin data for 2024 H1 has been restated Gross Profit Margin^ Unit: HK$ billion Revenue Gross Profit^ Internet Business: Breakthroughs in overseas business model drive revenue growth with further enhancement of high profitability Of which： Overseas revenue increased by 46.3% yoy 8
Page 9
TCL Electronics Holdings Limited丨2025 Interim Results Continuously focused on large-sized display technologies for TV, establishing Mini LED and QLED technology barriers, pioneering industry-leading precise dimming technology Focused on Eye Care Display 4.0 for mobile devices, integrating eye protection screens with intelligent eye care mode, meeting users’ eye care needs in all scenarios Display Technology Continuously fortified a fast, stable, lean and secure OS foundation; rolled out a unified global TVROM that turbo-charged engineering efficiency; and elevated Tlink to deliver the ultimate all-category fully-connected smart experience TCL’s App AI assistant relaunched with a new look, serving as an App AI Intelligent Hub for smart Q&A and device control, offering a more convenient and personalised interaction experience Performance & Experience Focused on setting the next-generation communication standard and international authoritative standard for audio and video coding and decoding, ranked among the Global Top 50 in 3GPP SEP for the first time Effective transformation of cutting-edge technology standard research results has been achieved, with standard-essential patents in major litigation fields being included and multiple achievements being industrialised Technology Standard Smart screen debuted with Fuxi AI large language model, achieving all-dimension recognition of sound, image, and viewing environment, end-to-end optimisation; Fuxi large language model led the way in scenario applications Enhanced AI R&D capabilities and nurtured an AI-application culture at the organisational level, achieving efficient integration and intelligent analytics across the R&D data domain through iterative refactoring Artificial Intelligence Innovative Scenarios Self-developed the world’s first modular smart home companion robot, integrating multimodal interaction and emotional bionics, exploring new possibilities in intelligent home companionship The HEMS home energy system created an all-scenario solution based on “solar + storage + pumping + charging”, achieving intelligent optimisation of the entire chain from generation to consumption of electricity through the synergy of thermal and electrical storage and AI economical management R&D & Product Innovation丨With Enhancement of Product Competitiveness and R&D Efficiency as Key Focus, Continuous Technological Innovation to Improve User Experience AR glasses are scaling the summit of intelligence, fortifying the AR+AI technology base to deliver first-person environmental perception, seamless real–virtual fusion, and highly efficient, natural multimodal interaction 9
Page 10
TCL Electronics Holdings Limited丨2025 Interim Results Data Source: Omdia, 2024 regional shipment and average size of TV market, 2024 regional TCL TV market share and ranking in terms of shipment, and average size Positioning: Cornerstone of scale and high ground of branding North America Business Group Breakthrough in key U.S. channels Driven by capabilities and efficiency Building an organisation fighting in terms of both all categories and channels Top 2 49.17 million sets +4.0% yoy 14.1% +0.8 p.p. yoy Positioning: Cornerstone of scale and high ground of products and capabilities China Business Group Accelerating mid-to-high-end and dual brand breakthrough Accelerating capability building and cross- category replication 南海 诸岛 TV market capacity TCL TV market share by shipment Top 3 37.11 million sets -1.3% yoy 17.7% +0.6 p.p. yoy Positioning: High ground of branding Europe Business Group Focusing on comprehensive TV leadership strategy Increasing retail footprint Consolidate communications-related operations and achieve seamless channel integration Top 4 43.86 million sets +9.3% yoy 9.1% +1.7 p.p. yoy Positioning: Market leader in all categories across Southeast Asia and Australia Asia-Pacific Business Group Developing country-specific competition and marketing strategies Accelerating breakthrough across all categories TV market capacity TCL TV market share by shipment Top 3 38.08 million sets -0.5% yoy 10.6% +0.8 p.p. yoy Positioning: Regional leader in all categories and stronghold market Latin America Business Group Transition to mid-to-high-end products Achieve breakthrough across all categories Consolidate communications-related operations 26.49 million sets +6.5% yoy 20.9% +2.9 p.p. yoy Positioning: Incremental and potential market Middle East & Africa Business Group Strengthening channel coverage and layout in key countries Consolidate communications-related operations Top 3 14.12 million sets +6.6% yoy 13.6% +3.5 p.p. yoy TV market average size TCL TV average size 60.8” 63.9” 51.7” 53.0” 49.1” 50.1” TV market average size TCL TV average size 44.5” 46.9” 47.9” 46.4” 48.9” 52.9” Global Business Expansion丨Six Major BGs Optimised Comprehensively with Clear Regional Positioning and Strategies, Transformation Yields Significant Results with Substantial Growth Potential Ahead TV market capacity TCL TV market share by shipment TV market average size TCL TV average size TV market capacity TCL TV market share by shipment TV market average size TCL TV average size TV market capacity TCL TV market share by shipment TV market average size TCL TV average size TV market capacity TCL TV market share by shipment TV market average size TCL TV average size Top 2 10
Page 11
TCL Electronics Holdings Limited丨2025 Interim Results Channel Management Over 95% coverage of top 50 channels Customer segmentation to increase market share among top channels Channel value chain management system Channel customer governance and refined operations Retail Management Manageable retail coverage rate Global excellent supervision, promoter, trainer training Retail capability training Global digital retail system development Full-cycle existing user management, user research and insights 6 major BG e-commerce systematic construction Free private domain traffic activation through word-of-mouth of users Global Official mall, Global e-commerce SI standards User + E-commerce Management Global Marketing丨Olympic-Centric Strategy with Product Focus, Amplifying New Media Efforts to Boost Marketing Efficiency and Unleash Global Brand Potential Olympics as the Central Focus In February 2025, TCL was officially announced as a Worldwide Olympic Partner. The Olympic spirit of “Faster, Higher, Stronger - Together” aligns perfectly with TCL’s corporate spirit of embracing transformative innovation, pursuing excellence and striving to Inspire Greatness Exhibition Marketing Focusing on major exhibitions such as CES/IFA/MWC/AWE/ISE to amplify secondary exposure Regional IP Marketing Leverage top-tier regional IPs to spark media buzz, boosting preference for mid-to-high-end products and strengthening regional brand impact Co-Branded Product with Minions Sponsorship of Arsenal, English Premier League Sponsorship of the AFL Australian Football League Sponsorship of the NFL National Football League Brand Marketing 11
Page 12
TCL Electronics Holdings Limited丨2025 Interim Results ESG丨By Upholding Green Operations, Focusing on Society Responsibility and Adhering to Business Ethics, the Company Achieves ESG Rating A by Hang Seng Index for Seven Consecutive Years AAgrade Wind ESG Rating （Ranked 6th out of 117 in the industry） Bgrade Core business awarded the highest rating in CDP Climate Change Management Overall score ranked in the top 5% globally Mobile business once again received Gold rating in EcoVadis Rating for Six consecutive years Selected as a constituent of Hang Seng Corporate Sustainability Benchmark Index from 2019 to 2024 The Company has garnered widespread recognition and honours for its commitment to sustainability The photovoltaic business generated 3 billion kWh of green electricity, directly contributing to a carbon reduction of 1.61 million tons Packaging materials are reused, with 161 tons of renewable packaging materials employed Invested RMB 11.09 million in public welfare initiatives, with a total of 1,405 volunteer hours contributed TCL Smart Classrooms were established across various urban and rural schools, serving close to 7,000 students Female employees account for over 40%, while employees from Hong Kong, Macao, Taiwan, and overseas markets represent over 20% of the workforce Safety production and occupational health training covered 347,340 participants; with over 85% of all employees trained E S G A Customer Service Green Design Quality Improvement Steady Development Growth Together Energy Management Climate Change Health and Safety Sustainable Supply Chain Public Welfare Compliance with Law A Technology Innovation Achieved Hang Seng ESG Rating of for seven consecutive years from 2018 to 2024 A 12
Page 13
TCL Electronics Holdings Limited丨2025 Interim Results Segment Performance 03 13
Page 14
TCL Electronics Holdings Limited丨2025 Interim Results Display Business丨Large-Sized Display: TCL TV Continues to Lead Globally, Mini LEDand Large-Sized Products Deliver Outstanding Growth, with Remarkable Performance in the Mid-to-High-End Segment 13.46 million sets +7.6% yoy Global Shipment of TCL TV Global Revenue of TCL TV PRC market proportion 30.8% Overseas market proportion 69.2% of which: HK$28.35 billion +9.4% yoy TCL TV Global Average Selling Price HK$2,106 +1.7% yoy TCL TV led in global scale with increasing market share 24.0% +9.1 p.p. Shipment Proportion 10.8% +6.6 p.p. Shipment ProportionShipment Mini LED TV 1.37 million sets +176.1% Shipment 3.04 million sets +73.7% QLED TV 28.4% +4.8 p.p. Shipment ProportionShipment ≥65” TV 3.82 million sets +29.7% 14.2% +2.4 p.p. Shipment ProportionShipment 1.91 million sets +29.7% ≥75” TV Global average size of TCL TV reached 53.4”, increasing by 1.5” yoy Product portfolio of TCL TV demonstrated distinct advantages, with continued growth in Mini LED and large-size proportion Data Source: 1. Omdia, data of 2025 H1 14.2% Market share by shipment1 +0.9 p.p. No.2 13.2% Market share by Revenue1 +1.1 p.p. No.3 Global Market PositionGlobal Sales Performance TCL Mini LED firmly ranked the top 11 in the global shipment 14
Page 15
TCL Electronics Holdings Limited丨2025 Interim Results Display Business丨Large-Sized Display in the PRC Market: Outpace the Industry in Scale, Significant Improvement in Product Mix with 1.7 p.p. YoY Increase in Gross Profit Margin Q9L Pro QD-Mini LED TV Shipment Revenue Gross Profit Margin^ 19.4% +1.7 p.p. HK$8.72 billion 17.10 million sets +2.4% Total shipment +3.5% TCL Brand shipment +10.2% Industry Shipment +4.4% Benefiting from the mid-to-high-end strategy and national subsidies, TCL’s MiniLED and large-screen products continued rapid growth in the PRC market Mini LED TV QLED TV ≥65” TV ≥75” TV Average Size 63.5” +1.8” Shipment +154.2% Proportion: 21.2% +12.6 p.p. Proportion: 18.2% +6.1 p.p. Shipment +56.0% Shipment +11.3% Proportion: 55.4% +3.9 p.p. Shipment +13.2% Proportion: 36.3% +3.1 p.p. Market Share of Retail Sales Volume 22.1% +2.1 p.p. No.2 Retail Sales Volume Ranking Market Share of Sales Volume 23.5% +1.4 p.p. No.2 Retail Sales Revenue Ranking Data Source: Omni-channel retail sales data from CMM of TCL- branded and Falcon-branded TV in 2025 H1 Mini LED TV Market share of retail sales volume 27.5% TCL TV Brand Price Index 124 69.1% QLED TV Market share of retail sales volume Data Source: Omni-channel retail sales data from CMM for Q2 2025, including market share for both TCL and Falcon brands Data Source: Omdia, data of 2025 H1 ^ Gross profit margin data for 2024 H1 has been restated 15
Page 16
TCL Electronics Holdings Limited丨2025 Interim Results Display Business丨Large-Sized Display in Overseas Market: Outperform the Industry in Scale despite headwinds, Mini LED and Large-Screen Trends Emerge, Ranks Top 3 in Market Share in Nearly 20 Countries Shipment Revenue Gross Profit Margin^ 14.4% +0.1 p.p. HK$19.63 billion 77.48 million sets -0.4% Total Shipment Industry Shipment1 +11.8% Mini LED TV QLED TV ≥65” TV ≥75” TV Average Size 50.4” +1.6” Shipment +196.8% Proportion: 7.7% +4.9 p.p. Proportion: 25.7%^ +9.9 p.p.^ Shipment +77.9%^ Shipment +47.3% Proportion: 21.0% +5.5 p.p. Shipment +57.9% Proportion: 8.1% +2.5 p.p. Trends of Mini LED and large screen further emerged in overseas market North American Market: Significant Structural Improvement with Market-Leading Scale Segmented Market Performance Global Layout of TV Production Capacity Production capacity of over 30 million sets annually Distributed production capacity deployment: The Company maintains manufacturing footprints across China, Vietnam, Mexico, Poland, Brazil and Pakistan, etc. Agile allocation of supply focus to responsively meet diverse market demands Data Source: 1. Omdia, data of 2025 H1 2. The Company’s internal reports, based on TV retail sales volume of 2025 H1; except the U.S. is source d from Circana, LLC, Retail Tracking Service, US, based on TV retail sales volume of 2025 H1; 3. Omdia, data of 2025 H1, the brand price index equals the market share of sales revenue divided by the market share of shipment in North American market T7L Pro QD-Mini LED TV ≥65” TV shipment +60.5% Shipment proportion of Mini LED TV +6.0 p.p. Average shipment price of TCL-branded TV +12.6% Market Share Ranking2 European Market: Sustained Scale Expansion with Breakthrough in Key Channels across the UK and Germany +13.3% +29.6% +5.5 p.p. No.2 France / Poland No.3 Sweden / Spain / Greece / Czech Republic ≥65” TV shipment Shipment proportion of Mini LED TV Shipment of TCL-branded TV Emerging Market: Large-Screen Strategy Drives Continuous Market Share Growth +17.9% +45.8% +4.1 p.p. No.1 The Philippines / Australia / Saudi Arabia / Argentina / Pakistan No.2 Brazil / Thailand / Myanmar No.3 Vietnam / Korea ≥65” TV shipment Shipment proportion of Mini LED TV Shipment of TCL-branded TV TCL-branded TV Price Index3 +17.8% No.2 The U.S. Q10L Pro UltraView QD-Mini LED TV ^ Gross profit margin and QLED shipment and proportion datas for 2024 H1 have been restated +8.7% 16
Page 17
TCL Electronics Holdings Limited丨2025 Interim Results Small-and-Medium-Sized Display：Prioritising efficiency, focusing on key markets, and steadily expanding business operations TCL Digital Signage TMN Series TCL Mobile Phone TCL 60 SE NXTPAPER 5G TCL Tablet TCL NXTPAPER 11 PLUS Full Coverage among first-tier mobile carriers in North America and Europe Revenue Gross Profit^ Digital signage shipment rose to the top 1 position1, with a prestigious client roster that includes Starbucks, Luckin Coffee, MIXUE Group and Li Auto Optimised channel structure, enhanced channel quality, achieved second place2 in terms of turnover within the industry in JD.com’s Conference TV Category during the 618 Shopping Festival Leveraging industry-leading display technology competitiveness and supply chain advantages to successfully expand into overseas high-end markets Display Business丨Small-and-Medium-Sized Display Maintains Steady Operations, Smart Commercial Display Focuses on Market Expansion and Quality-Driven Operations +21.3% +10.4% Unit: HK$ billion Revenue +28.8% Gross Profit^ 3.76 4.56 0.61 0.63 +2.7% +12.7% -4.6% ^ Gross profit data for 2024 H1 has been restated Smart Commercial Display: Domestically focus on product portfolio optimisation, Internationally expand high-end client partnerships HK$504 million +9.4% yoy HK$56 million Remained Flat yoy 2.23 2.87 1.53 1.69 2024 H1 2025 H1 Mobile Phone Tablet 0.35 0.34 0.26 0.29 2024 H1 2025 H1 Mobile Phone Tablet Data source: 1. Discien, data of 2025 Q1 2. JD.com’s Commercial Display Category 618 Report, from 13 May 2025 to 19 June 2025. 17
Page 18
TCL Electronics Holdings Limited丨2025 Interim Results 53.9% 54.4% 2024H1 2025H1 Gross Profit Margin^ Global Internet Business Unit: HK$ billion Revenue +0.5 p.p. PRC Market: Continuously enhance user experience and develop benchmark scenarios that transform user perception Overseas Market: Achieved substantial improvements in content development, product experience, and monetisation, driving long-term and rapid growth Centered on user experience, focused on TV-AI and interaction enhancements, to create an exceptional desktop and viewing experience Upgraded minimalist desktop, continuous experience enhancement Created viewing experience with Mini LED display, to enhance viewing experience Launched Ultra-High-Definition services across all endpoints, featuring more than 30,000 hours of UHD content Continuously deepened global cooperation with giants like Google, Roku and Netflix to further improve user experience TCL Channel has undergone a comprehensive upgrade, featuring a fully refreshed UI, significantly enhanced content distribution efficiency, dual best-in-class experiences in FAST and AVOD. In markets such as the United States, Brazil, France, and Spain, TCL Channel has achieved content localisation with a substantial increase in the share of premium content. Average consumption time for in-house content products has doubled. As of the end of June 2025, TCL Channel had accumulated over 39.30 million users, achieving full coverage of global overseas market TCL ADS has been steadily building its reputation in the overseas advertising industry, expanding beyond programmatic advertising to establish PMP (Private Marketplace) trading models.TCL Channel Parallel Space Deliver dedicated viewing pages tailored to each family member LINGKONG UI 3.0 Internet Business丨Continuously Elevate User Experience with a Customer-Centric Focus; Aggressively Expand into Overseas Market to Enhance Monetisation Capabilities 1.21 1.46 2024 H1 2025 H1 +20.3% ^ Gross profit margin data for 2024 H1 has been restated Of which: Overseas revenue increased by 46.3% yoy 18
Page 19
TCL Electronics Holdings Limited丨2025 Interim Results Innovative Business丨Photovoltaic Business Undertook a Multi-Dimensional Expansion, with Profitability and Relative Competitiveness Continuously Enhancing and Overseas Business Advancing Steadily Revenue HK$11.14 billion +111.3% H1 Newly installed capacity 4.7GW. 290+ Cumulative industrial and commercial contracted projects 280,000+ cumulative contracted rural households Gross Profit^ Steadily Increase Market Share Industrial & Commercial: A Benchmark Project in Jilin Province Residential: Yangminglou Project, Quanzhou, Fujian Ground-Mounted Distributed: Fishery-PV Hybrid Project, Guangdong HK$1.07 billion +98.5% Market share growth: newly acquired share in the residential market has grown to rank among the industry’s top-tier players, with continued improvements in profitability and relative competitiveness Channel enhancement: boost partner retention by implementing mutual empowerment and more detailed channel management Capital-partner stabilisation: cement partnerships with capital providers by leveraging market-based power trading capabilities, joining forces with financial institutions to co-create green finance solutions Scenario innovation: zero-carbon parks, solar + storage + charging solutions, high-end villas, etc. Technological transformation: optimiser iterations, overseas half-cell module upgrades, improved power generation efficiency. Enhance the Quality of Ecosystem Partnership Product & Technology Innovation 2,380+ cumulative distribution channels Operating Performance Benchmark Examples Business Highlights ^ Gross profit data for 2024H1 has been restated 19
Page 20
TCL Electronics Holdings Limited丨2025 Interim Results AR/XR Glasses – Launching a blockbuster new product through IP collaboration Achieving No. 1 online market share during the 618 Shopping Festival Introducing TCL AiMe: The world’s first modular smart home companion robot, With uniquely crafted experience through AI-Empowered intelligent living RayNeo Breakthrough in Market Share1 In the XR Category by sales volume across JD.com and Tmall No.1 2.4x yoy increase in sales volume 1. Data Source: JD Business Intelligence, Tmall Business Advisor, RUNTO Technology (Runto), CINNO Research, data from 14 May 2025 to 18 June 2025 Possesses a warm, intelligent awareness, integrating into your home as a trustworthy new family companion Delivers proactive patrol and attentive guardianship, ensuring a presence in pre-defined safety zones right where you need it Features dynamic, human-like expressions and physical interaction, delivering behavioural responses with high emotional value Offers multifaceted companionship functions for the whole family, securely engineering a uniquely personal and dedicated guardianship Air 3s Pro XR Glasses Portable lightweight personal cinema Peacock optical engine 2.0 Pocket OS with brand-new operating system Converged AI+AR device Ultra-lightweight at 76g X3 Pro AI Glasses Personal information terminal featuring full-colour AR+AI integration 43” full-colour transparent display Falcon plus dual-camera system Qualcomm snapdragon AR1 Ultra-lightweight at just 39g V3 Slim AI Shooting Glasses Smart assistant for capturing life moments anytime and anywhere Sony 4K photo capture Real-time conversational AI response Innovative Business丨Pioneer the Strategic Development of Smart Glasses and Companion Robot to Empower Product Intelligence, Enhance Competitive Advantage and Drive Long-Term Growth 20
Page 21
TCL Electronics Holdings Limited丨2025 Interim Results Outlook 04 21
Page 22
TCL Electronics Holdings Limited丨2025 Interim Results Company Vision A Preeminent Smart Device Enterprise with Global Operations Business Philosophy Strategy Guidance, Innovation Drive, Advanced Manufacturing and Global Operation • Drive structural enhancement through strategic focus on large- screen, Mini LED, and high refresh rate features • World-leading brand Large-Sized Display Small-and-Medium Sized Display • Focus on core markets • Steady business expansion Internet Business Photovoltaic Business • Pursue steady growth while enhancing relative competitiveness • Advanced rapidly yet systematically in overseas operation All-Category Marketing • Synergies from global brand and channel advantages • Foster scalable growth with a focus on quality Smart Connection/Smart Home/AI Layout • Take the lead in deploying smart glasses and AI Robot • Empower long-term growth potential Core Business Increase profitability New Business Reinforce the second growth curve Future Plan丨Strategy and Goal丨Develop Core Business and New Business Simultaneously, Pursue High-Quality Growth, Strive to Become a Preeminent Smart Device Enterprise with Global Operations 22 Pursue High quality growth, achieving net profit growth rate＞gross profit growth rate＞revenue growth rate＞sales volume growth rate Long-Term Operational Goal • Stabilising domestic operation • Acceleration of overseas operation development
Page 23
TCL Electronics Holdings Limited丨2025 Interim Results Product Lines Committed to breakthrough in the mid-to-high-end segment Emphasise product quality Enhance product competitiveness Regional Lines Reshape business mix Enforce cost management Global Marketing Development Olympic initiatives activation Channel expense management Retail store management Global Talent Organisation Create an efficient and agile organisation Enhance performance management for leadership Strengthening Core Capabilities Planning for the Future Winning Battles ① Adhere to the globally leading strategy driven by TV ② Accelerate the overseas development of air conditioners, refrigerators and washing machines ③ Enhance capabilities in new businesses to establish a robust foundation North America Global cornerstone of scale and high ground of branding Latin America All categories leadership Stronghold Market Europe Global high ground of branding Middle East and Africa Incremental and potential markets China Global cornerstone of scale and product capabilities High ground of marketing capabilities Asia-Pacific All categories leadership Four DimensionsTwo Key Pathways Marketing Power Product Power Key Initiatives Business Portfolio Future Plan丨Work Plan丨Continuously Optimise Operational Strategies Around “Winning Battles, Strengthening Core Capabilities, and Planning for the Future”, Soar with Courage and Determination Pursuing Extreme Efficiency Accelerate turnover to enhance asset efficiency Empower workforce productivity through AI enablement Global Product Upgrade Enhance mid-to-high-end product structure Strengthen development of frontier technologies such as AI Global Business Operations Global industrial presence Advancement in smart manufacturing Commitment to superior quality Capability Positioning Regional Positioning Organisational Power Operational Power 23
Page 24
TCL Electronics Holdings Limited丨2025 Interim Results THANKS！ TCL Electronics Official Website: http://electronics.tcl.com TCL Electronics Investor Relations Email: hk.ir@tcl.com TCL Electronics Investor Relations Official WeChat Account: Disclaimer The information contained herein should not be utilised for any legal purposes with regards to any investor’s investment decision or results. In particular, this document does not constitute any recommendation or invitation for subscribing for or sale and purchase of any securities in TCL Electronics Holdings Limited (the “Company”). The Company hereby expressly disclaims any liability for any loss or damage resulting from or in connection with any reliance by any investor on the information contained herein. A number of forward-looking statements may be made from this presentation. Forward-looking statements are statements that are not historical facts. These forward-looking statements are based on the current expectations of the Company and there can be no assurance that such expectations will prove to be correct. Because forward-looking statements involve risks and uncertainties, the Company’s actual results could differ materially from these statements. 24