In this year, whether it is the information or technology industry, it is inseparable from the basis of "display", which is the basis of human-computer interaction. In the past two decades, semiconductor displays have been dominated by Japan and South Korea, and now China has broken the technology monopoly to lead the world, relying on the vigorous research and development and advance layout of domestic panel companies.
Under the background of the new crown epidemic and world trade frictions, many technology and information industries are in the dilemma of "lack of core". But even in the face of such a dilemma, TCL has recently handed over a brilliant answer.
TCL (Group) achieved revenue of 252.3 billion yuan in 2021, an increase of 65% year-on-year; net profit was 17.1 billion yuan, an increase of 129% year-on-year.
Specifically, TCL's two core industries achieved significant growth during the reporting period. Among them, TCL Technology achieved revenue of 163.54 billion yuan, an increase of 113% year-on-year, and net profit of 14.96 billion yuan, an increase of 195.3% year-on-year; TCL Industry achieved revenue of 105.64 billion yuan, an increase of 18% year-on-year, and achieved a net profit of 4.21 billion yuan, an increase of 74% year-on-year.
Nowadays, the performance scale of TCL has reached the standard of the world's top 500 enterprises, and even exceeded some companies that have been listed.
Why is TCL's 2021 performance so impressive? This is directly related to the layout strategy of its three major industries.
TCL Huaxing's leading position is further consolidated
2021 can be said to be a mixed year for the panel industry.
Happily, the further expansion of the home economy in the first half of last year has led to an increase in terminal demand. At the same time, the shortage of upstream components such as chips has also exacerbated the tension between supply and demand, making the price of LCD panels rise all the way.
The worry is that since the second half of last year, affected by the international situation, the global economic growth rate has slowed down, inflation expectations have increased, consumer demand has slowed down, panel prices have been adjusted, and industrial operations have been under pressure.
Despite the obvious cyclicality, for the head manufacturer TCL, by giving full play to the scale advantage, optimizing the business structure, and increasing the contribution of large-size high-end and medium-sized IT products, TCL has refreshed its performance throughout the year.
According to the financial report, TCL Huaxing achieved a sales area of 39.4915 million square meters, an increase of 36% year-on-year, and the semiconductor display business achieved revenue of 88.1 billion yuan, an increase of 88.4% year-on-year; and the net profit was 10.6 billion yuan, an increase of 339.6% year-on-year.
In the field of large size, TCL Huaxing continued to expand its scale, achieving a shipping area of 37.747 million square meters, an increase of 36% year-on-year, revenue of 56.55 billion yuan, an increase of 95.1% year-on-year, TV panel market share of the world's second, 55-inch product market share of the world's first, 8K and 120HZ high-end TV panel market share of the world's first.
In the field of small and medium-sized size, TCL Huaxing shipped an area of 1.745 million square meters, an increase of 23% year-on-year, revenue of 23.41 billion yuan increased by 31.6% year-on-year, e-sports display market share jumped to the first place in the world, LTPS flat panel shipments ranked first in the world, LTPS laptop shipments ranked second in the world, LTPS non-mobile phone product revenue accounted for 41%, LTPS expansion and t9 projects as planned, and gradually improved medium-sized production capacity, products and customer structure.
It can be said that TCL Huaxing's panel production capacity is already in the world's top position. According to IHS Market forecasts, in the next three years, the total production capacity of TCL Huaxing's production lines will remain above 22% of the global total production capacity.
At the performance communication meeting on May 9, Wang Cheng, COO of TCL Technology, said that TCL Huaxing hopes to enter the top two in the industry in 2026 through the growth of production capacity and the improvement of revenue structure.
With the trend of the LCD display industry to Chinese mainland concentration and the optimization of the competitive landscape remains unchanged, head enterprises like TCL Huaxing will have more advantages in terms of production capacity scale, technology research and development, and supply chain ecology.
TCL central layout semiconductor materials
In July 2020, TCL acquired Tianjin Zhonghuan Group to enter the field of new energy photovoltaic and semiconductor materials.
And this layout has also begun to bear fruit in 2021.
According to the financial report, in 2021, TCL Zhonghuan achieved operating income of 41.1 billion yuan, an increase of 115.7% year-on-year; net profit of 4.44 billion yuan, an increase of 200.6% over the same period of the previous year, and new energy photovoltaics and semiconductor materials have increased significantly.
In the new energy photovoltaic sector, in the face of the price turmoil of the upstream supply chain in 2021, TCL Zhonghuan has better guaranteed the acceleration of the scale of G12 products through the long-term construction of good supply chain cooperation, the smooth transformation of product structure, and the highlighting of technical advantages. During the reporting period, TCL Zhonghuan's sales volume of photovoltaic materials ranked second in the world.
In the field of semiconductor materials, TCL Zhonghuan has reached the established production capacity targets of 8 inches 750,000 pieces / month and 12 inches 170,000 pieces / month. 8-inch products have formed a comprehensive product capability and market competitiveness that can be benchmarked against international first-line manufacturers; 12-inch products are in a breakthrough period, and the products applied to characteristic processes have passed the certification of many domestic first-line customers and have been stable in mass production.
The addition of TCL Zhonghuan has brought performance support to TCL. Li Dongsheng, founder and chairman of TCL, said at the communication meeting: "The acquisition of Central Group has made our business more focused. At the same time, the business of TCL Technology is laid out around the pan-semiconductor industry field, and the business of TCL Industry can also be developed with intelligent technology as the traction. ”
According to the research reports of many institutions, the new energy photovoltaic and semiconductor materials and materials business has become a new driving force for TCL's performance growth. Huatai Securities said in the research report that the two-wheel drive strategy of "semiconductor display + new energy photovoltaic and semiconductor materials" will gradually be fulfilled, providing support for TCL's medium- and long-term performance.
Intelligent terminals complement the ecosystem
With the unsealing of many overseas countries, the demand for home entertainment, office and education consumption has declined, resulting in a decline in demand for terminals of CUHK Display. According to industry research agency Omdia, global TV shipments in 2021 fell by 5.3% year-on-year to 210 million units; Zhongyikang data shows that the overall retail sales of the TV industry in the Chinese market in 2021 fell by 10.4% year-on-year to 37.03 million units.
Li Dongsheng also said in an interview: "Sales of TV sets in the Chinese market have begun to decline, but there are still some new opportunities in the future." ”
TCL feels this new opportunity in all categories, AIoT and other intelligent terminals.
Thanks to the in-depth promotion of the international market strategy of breaking through the high-end and all-category development, TCL intelligent terminals achieved revenue of 82.4 billion yuan in 2021, an increase of 7.5% year-on-year, and achieved a net profit of 1.19 billion yuan. Among them, TCL electronic revenue of 62.1 billion yuan, an increase of 37% year-on-year; TCL air conditioning revenue of 17.6 billion yuan, an increase of 18%; TCL white electricity revenue of 3.7 billion yuan, an increase of 33% year-on-year; its Omar electrical appliance revenue of 10.1 billion yuan, an increase of 18%.
As one of the three core industries of TCL, the high growth of TCL intelligent terminals benefits from its adjustment of product structure and strategic layout, such as Mini LED with "the earliest layout and the first mass production".
As early as 2018, TCL intelligent terminals took the lead in laying out Mini LED smart screens, and in 2019, the world's first Mini LED smart screen X10 was mass-produced. In 2021, the sales volume of its quantum dot smart screen and Mini LED smart screen increased by 53.8% and 50.5% year-on-year, respectively, ranking first in the omni-channel retail sales volume in the Chinese market. The global market share of TCL Smart Screen has increased to 11.5%, ranking among the top three in the world.
Similarly, in the field of white electricity, TCL intelligent terminals are constantly innovating. In 2021, the global sales of TCL air conditioners exceeded 11.66 million units, an increase of 8.1% year-on-year, ranking fourth in the world; the global sales of TCL refrigerators and TCL washing machines reached 1.86 million units and 2.17 million units, respectively, an increase of 21.8% and 20.4% year-on-year.
For TCL, the layout on smart terminals is not only to provide a new growth point for the company, but also a judgment of the future trend. According to iResearch data, the size of China's AIoT market in 2020 exceeded 580 billion yuan, an increase of 53% year-on-year, and the market size is expected to reach 750.9 billion yuan in 2022, with an average annual compound growth rate of 30.49% from 2018 to 2022, which is a high-prosperity track.
The goal of the future is to lead the world
Nowadays, South Korea's Samsung display and LGD gradually withdrew LCD production capacity, Taiwan-based panel factories are unable to develop new production lines, TCL (Group) relies on TCL Huaxing and TCL Zhonghuan two-wheel drive, has become the global semiconductor panel field and photovoltaic field double leader.
At the same time, the technological progress of semiconductors has also fed back to TCL's intelligent terminal equipment to help its better development.
But TCL is obviously not satisfied with this, at present, China in the new energy photovoltaic industry and semiconductor display, although there are certain leading and advantages, but semiconductor materials including integrated circuits, silicon wafers still need to catch up. TCL will firmly promote the global leading strategic goals of the three core industries of semiconductor display, new energy photovoltaic and semiconductor materials, and intelligent terminals.
"Our planned semiconductor wafer production capacity target this year is 1 million pieces / month for 8 inches and 320,000 pieces / month for 12 inches, this business strives to become a leading enterprise in China's semiconductor silicon wafers, and we will strive to work hard in accordance with the goal of 'China leading and global catch-up'." Li Dongsheng said.
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Author 丨 Gill
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