China's TCL Multimedia Technology Holdings Limited announced its unaudited consolidated results for the first quarter ended March 31, 2009, showing turnover decreased by 8.8%.
Gross profit was HKD910 million, decreasing from HKD1.015 billion for the same period last year. Profit before the effects of convertible bonds attributable to equity holders of the parent was HKD26 million in the first quarter of 2009, decreased from HKD52 million in the same period in 2008.
During the first quarter of 2009, the company's turnover decreased by 8.8% year-on-year to approximately HKD5.01 billion. TV turnover increased by 5.2% in mainland China, whereas it declined by 28.1% for overseas and strategic OEM markets. Overall sales volume of the group's LCD TV products increased by 122.4% and reached 1,199,000 sets, outpacing average industry growth rate. Sales of the group's audio-visual products such as DVD players also advanced, with 1.6% growth in sales volume and 7.3% increase in turnover year-on-year.
"In line with our expectations, the consumer electronics industry was turbulent in the first quarter with high business risks in several markets in Eastern Europe and some emerging markets, margin pressure in North America, opportunities in China and other emerging markets. Increase in panel prices and periodic shortages were major concerns," commented Leong Yue Wing, CEO of TCL Multimedia.
During the first quarter, the group launched 14 new products including Internet TV. The group also introduced the co-design concept, which generated synergies through high levels of cooperation with key components suppliers.