TCL Li Dongsheng: China's manufacturing industry needs to change its model to adapt to changes in trade rules

21st Century Business Herald reporter Ni Yuqing reported from Shenzhen

In recent years, the global trade market has changed, and the development of China's manufacturing industry has always received attention. Chinese enterprises encounter challenges in the development of globalization, but also contain opportunities.

A few days ago, Li Dongsheng, founder and chairman of TCL, said at the new book conference of "All Things Are Born - TCL Dares to Be 40 Years": "The restructuring of the global industrial structure and the changes in global investment and trade rules have brought challenges. Now from the perspective of product and commodity flows, if the way Chinese enterprise brand products are exported, the scope may be smaller and smaller, because most countries have relatively high tariffs on product imports; in addition, the United States has imposed additional taxes on China in recent years, which has an impact on other countries, including Europe and other major countries. They didn't raise taxes on China separately with the United States, but they did take other different ways to increase barriers for Chinese goods to enter their markets. ”

Li Dongsheng pointed out that under the change, China's manufacturing industry must change its business model to adapt to changes. Taking TCL as an example, in the past decade or so, TCL has been working hard to deepen the industrial chain supply chain into the world, and the global layout can minimize the impact of trade protectionism.

In the first three quarters of 2021, TCL (Group) achieved revenue of 185.7 billion yuan, an increase of 80.9% year-on-year, and net profit of 15.09 billion yuan, an increase of 337% year-on-year.

Among them, TCL Technology revenue of 120.93 billion yuan, an increase of 148.3% year-on-year, net profit of 13.16 billion yuan, an increase of 538.5%; TCL industrial revenue of 78.48 billion yuan, an increase of 24.5%, net profit of 3.95 billion yuan, an increase of 181.8%.

According to TCL Technology's financial report, the semiconductor display business is the core profit pillar of TCL Technology, with a net profit of 9.74 billion yuan during the period, an increase of 16.2 times year-on-year. The high growth of the panel business benefited from the high prosperity, and the price began to retrace in the second half of this year, and TCL Technology also reduced the impact by adjusting the product strategy and other ways.

Omdia, a research agency, estimates that the price of large-size panels will begin to decline from August to September 2021, but under the conditions that material bottlenecks and production adjustment factors, as well as the price elasticity of demand, the price reduction of LCD TV panels in the second half of 2021 will be limited, and the first half of 2022 will be the key point of price elasticity whether the price reduction can re-trigger demand.

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