In the rapidly changing global television industry landscape of 2025, TCL Electronics (01070) announces the rise of high-end manufacturing in China with a strong earnings surprise. On July 22, TCL Electronics announced that it expects its adjusted net profit attributable to shareholders to reach HKD 950 million to HKD 1.08 billion in the first half of 2025, a significant year-on-year increase of 45% to 65%. This growth rate sharply contrasts with Samsung Electronics' VD division, which saw a 46% plunge in Q2 profits, and LG Electronics, which is mired in losses.
The key driver behind this performance explosion is TCL's forward-looking layout of Mini LED technology, which has entered a harvest period—TCL's global shipments of Mini LED TVs surged 176.1% to 1.37 million units in the first half of the year, with the proportion of 65-inch and larger products exceeding 28%, enhancing the profit of high-end product matrix and completely rewriting the old order of &#34;Japan and South Korea monopolizing the high-end.&#34;
<h2>Continued High Growth in Performance, Further Optimization of Product Structure</h2>
Regarding the expected high growth in performance for the first half of the year, TCL Electronics stated that it is mainly attributed to: 1) Profit side: Continuous improvement in product structure leading to quality growth in core business scale, coupled with rapid growth in innovative business scale; 2) Cost side: Global production capacity and supply chain efficiency release, overall expense ratio reduction, and more optimized expense structure.
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From the profit side, TCL Electronics' product structure continues to optimize, strengthening its high-end layout. In the first half of 2025, TCL's global TV shipments reached 13.46 million units, a year-on-year increase of 7.6%, maintaining the second position globally. Among them, high-margin products such as Mini LED TVs and quantum dot TVs saw significant sales increases, with global shipments of Mini LED TVs reaching 1.37 million units, a year-on-year increase of 176.1%, ranking first globally, with the shipment proportion increasing by 6.6 percentage points year-on-year to 10.8%. Quantum dot TV shipments reached 3.04 million units, a year-on-year increase of 73.7%. The increase in the proportion of high-margin products significantly boosted the average price and gross profit margin.
In the Chinese market, TCL Electronics relies on brand upgrades and technological innovation to continuously promote breakthroughs in mid-to-high-end products and the &#34;TCL + Thunderbird&#34; dual-brand strategy. In the first half of 2025, TCL TV shipments in the Chinese market grew by 3.5% year-on-year, among which, the TCL brand TVs following the mid-to-high-end route saw a year-on-year increase of 10.2%, ranking among the top two in retail volume in the market. Meanwhile, during the 618 shopping festival, TCL Mini LED TVs achieved over 270,000 units in retail volume across all channels, ranking first in the industry.
In terms of overseas markets, as a pioneer in globalization, TCL Electronics continues to strengthen its leading layout advantages in global supply chains and channels, while further enhancing global brand marketing. Through international top sports events, exhibitions, esports activities, film and television collaborations, and other high-impact scenarios, it fully releases brand value. From January to May this year, TCL TVs ranked first in retail volume in markets such as the Philippines, Australia, Argentina, and Pakistan;
In the United States, France, and Poland, TCL ranks among the top two, while in Sweden, Spain, Greece, and the Czech Republic, it ranks among the top three. Additionally, TCL Mini LED TVs have also gained favor among overseas users, with a year-on-year increase in overseas market shipments of 196.8%, and the shipment proportion rising by 4.9 percentage points year-on-year to 7.7%. Notably, TCL Mini LED TV shipments in the North American market saw a significant year-on-year increase of 350%, while shipments in Europe also grew substantially by 91% year-on-year.
<h2>Global Competitive Landscape Restructuring, Top Position Within Reach</h2>
It is worth mentioning that while TCL Electronics achieves simultaneous growth in both volume and price through technological upgrades and supply chain advantages, Korean brands are facing a historic decline, indicating that the global TV market is entering a restructuring cycle.
Data shows that Samsung Electronics' operating profit guidance for Q2 2025 has plummeted by 56% year-on-year, while LG Electronics' operating profit guidance has declined by 47% year-on-year. Hyundai Motor Securities estimates that Samsung's VD (Video Display) division's Q2 operating profit has dropped by 46% year-on-year, recording only 113 billion won (approximately 600 million RMB); LG Electronics is expected to incur losses ranging from 23.5 billion to 99 billion won (approximately 12 million to 52 million RMB), which may set a record for the worst performance in recent years.
Looking back, the mid-to-high-end segment of the TV industry has long been dominated by Japanese and Korean companies. Now, Chinese brands are rapidly capturing the high-end market with their &#34;Mini LED + ultra-large screen&#34; combination. According to the latest data from Counterpoint Research, global high-end TV shipments are expected to grow by 44% year-on-year in Q1 2025, with sales revenue increasing by 35%. TCL's market share has risen from 13% to 19%, while Samsung's share in high-end TVs has dropped from 39% to 28%, and LG's share has decreased from 23% to 16%. DiXian predicts that from 2025 to 2026, the global Mini LED TV shipment advantage over OLED TVs will further expand: global Mini LED TV shipments are expected to reach nearly 8 million units in 2024, doubling to 16 million units in 2025, while OLED TV shipments are constrained by costs, expected to be around 6 million units.
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The shift in the high-end market landscape by Chinese brands leveraging the &#34;Mini LED + ultra-large screen&#34; combination essentially reflects a transfer of the definition of technological routes. While Korean companies are limited by the high costs and capacity bottlenecks of OLED, TCL took the lead in Mini LED technology as early as 2016, ahead of the industry's mainstream layout by 3-5 years. In 2019, TCL Electronics launched the world's first Mini LED TV and achieved mass production, capturing 90% of global Mini LED TV sales in 2020, and in 2024, it will introduce &#34;Wanshang Partition&#34; technology to reconstruct industry standards. This advanced technological positioning has made TCL not only a core driver of the soaring penetration rate of Mini LED but also directly led to the new industry consensus that &#34;high-end TV = large screen + Mini LED.&#34;
TCL's forward-looking investment in Mini LED is essentially a dual conquest of &#34;technology-market.&#34; On the technology side, TCL Electronics addresses the halo and cost pain points of Mini LED through full-link innovation (Wanxiang partition/butterfly screen), evolving it from a &#34;parameter gimmick&#34; to an &#34;experience revolution.&#34; On the market side, TCL Electronics transforms its technological advantages into price advantages through a vertical industry chain, pushing Mini LED from high-end luxury to the mainstream market. Starting from the second half of 2024, the Mini LED TV category has benefited more precisely from the &#34;national subsidy&#34; policy, with the 10,000 price segment able to enjoy a &#34;maximum 20%&#34; discount, accelerating the penetration of Mini LED TVs.
Ultimately, by defining technology weight to set industry standards, Chinese brands have become the rule-makers for high-end TVs—this is the underlying logic behind Counterpoint's data showing &#34;the share of Chinese giants soaring while Korean giants fall from grace.&#34;
In the face of a complex trade environment, TCL forges resilient barriers through digitalization and vertical integration of the industry chain. On the manufacturing side, TCL Electronics has established production bases globally, with bases in Vietnam and Mexico serving North America and the Asia-Pacific region, while Poland, Brazil, and Pakistan serve Europe, Latin America, and the Middle East, respectively, reducing tariff expenditures while achieving agile and quick delivery.
At the same time, TCL is improving its global talent training management system, enhancing talent depth and stimulating vitality, achieving dual-core empowerment of &#34;Silicon Valley AI + Shenzhen Mini LED&#34; R&amp;D centers, with the core technology backbone equity incentive plan covering 2,000 people and linking patent conversion rates closely with incentives, driving the company's performance improvement.
&#34;Globalization is not a simple overlay of markets, but a deep localization to build a symbiotic ecosystem.&#34; TCL is transforming the Olympic TOP potential into industrial rule discourse power—driving Chinese manufacturing from scale leadership to high-end occupation of the global value chain with three pillars: technology definition rights, supply chain resilience, and ESG standards, writing the prologue of a new competitive era.
<h2>Conclusion</h2>
TCL Electronics' strong growth and the continuous decline of Korean giants outline the trajectory of the global TV industry's value chain reconstruction. As Chinese brands break through the critical point of 30% market share in the mid-to-high-end market, and the structural adjustments in North America and Europe gradually complete, the dual engines of &#34;large screen + technology premium&#34; have shifted the industry from scale competition to value occupation. The future competitive landscape will further expand towards AIoT scenario-based innovation, and the &#34;technology R&amp;D - global operation&#34; dual circulation system built on TCL's vertical industry chain advantages is becoming the key moat for the company to navigate through industry cycles. This power shift in the global high-end market led by Chinese enterprises has just begun

01070

TCL ELECTRONICS expects that the adjusted net profit attributable to the parent company in the first half of 2025 will reach HKD 950 million to HKD 1.08 billion, a year-on-year increase of 45% to 65%. This growth is attributed to the successful deployment of Mini LED technology, driving a surge in high-end product sales. In the first half of the year, TCL's global TV shipments reached 13.46 million units, a year-on-year increase of 7.6%, of which Mini LED TV shipments reached 1.37 million units, a year-on-year increase of 176.1%. TCL continues to promote its mid-to-high-end product strategy in the Chinese market through brand upgrades and technological innovation

Zhitong

TCL ELECTRONICS

TCL Electronics' mid-to-high-end strategy shows results, with adjusted net profit attributable to the parent company in H1 expected to increase by 45%-65%