Dear Consumers, Shareholders, Partners and All Employees Worldwide,
In 2025, the global economy moved forward slowly amid the challenges posed by geopolitical volatility and trade policy uncertainty, while easing inflation and the dawn of a technological revolution offered renewed hope. A new wave of AI-driven technological and industrial transformation accelerated from computing infrastructure to industry applications, creating structural opportunities for enterprises worldwide to reshape the competitive landscape. In the face of a complex and ever-changing external environment, we remained committed to our vision of “Global Leadership” and steadfastly advanced our dual-engine strategy of “Globalisation” and “Technology-Driven Development”. By navigating economic cycles with resilience, we achieved new highs in operating results and further deepened our global footprint. In 2025, TCL Electronics continued to achieve growth in both scale and profitability, with stronger product competitiveness, while outstanding performance across overseas regions made international business the core engine of growth.
On behalf of the Board, I would like to express my highest respect and heartfelt gratitude to consumers around the world who trust us, Shareholders who have supported us over the long term, partners who have stood by us, and all our dedicated employees worldwide. I am honoured to present the annual results for 2025.
Globalisation Strategy Driving High-Quality Growth, Continued Improvement in Operating Efficiency and New Heights of Operating Results
Looking back at 2025, market competition remained fierce, yet the advantages of leading brands with a global footprint and superior operating efficiency became even more pronounced. In 2025, the Company focused on mid-to-high-end positioning, technological differentiation and reliable quality across all product lines, while regional teams deepened strategic channel partnerships, strengthened retail management and forged closer connections with consumers, driving steady and high-quality growth overall.
In 2025, the Company’s revenue reached HK$114.58 billion, representing a year-on-year increase of 15.4%; gross profit reached HK$17.90 billion, representing a year-on-year increase of 15.1%; and gross profit margin remained stable at 15.6%. Meanwhile, the Company’s operating efficiency continued to improve, with the overall expense ratio decreasing by 0.7 percentage points year-on-year to 11.1% in 2025. In addition, the Company maintained a solid financial position. As at 31 December 2025, cash and cash equivalents increased by 54.2% year-on-year to HK$13.52 billion, and the cash conversion cycle improved by 1 day year-on-year to 42 days.
The synergies between the mid-to-high-end strategy and improved operating efficiency continued to strengthen the Company’s profitability, with net profit increasing by 36.7% year-on-year to HK$2.53 billion, adjusted profit attributable to owners of the parent increasing by 56.5% year-on-year to HK$2.51 billion, and return on equity (calculated by dividing adjusted profit attributable to owners of the parent by average equity attributable to the owners of the parent) improving by 4.3 percentage points year-on-year to 13.8%.
As the Group’s results reached new highs, we would like to express our sincere gratitude to every Shareholder who has steadfastly supported TCL Electronics. Every investment made by our Shareholders reflects their trust in and commitment to the Company’s future development. In 2025, the Group upheld its long-term management philosophy and maintained a dividend policy of high payout ratio, remaining committed to sharing the fruits of development with Shareholders. The Board hereby proposes a final dividend of HK49.80 cents per share for 2025, representing a dividend payout ratio of 50% of the adjusted profit attributable to owners of the parent, in recognition of our Shareholders’ long-standing trust and support.
Adhering to Mid-to-High-End and Large-Screen Strategies, Fully Embracing AI Development, and Enhancing Product and Service Experience and Operational Efficiency
We firmly believe that exceptional products and services are the cornerstone of success in global markets. In 2025, TCL TV’s global market share by shipment and sales revenue increased to 14.7% and 13.1%, firmly ranking among the top two and top three in the global market, respectively. In particular, mid-to-high-end and large-screen products delivered outstanding performance, with global shipments of TCL Mini LED TVs doubling year-on-year and market share maintaining the number one position globally, contributing to a 7.7% year-on-year increase in revenue from the large-sized display business to HK$64.71 billion, while gross profit margin improved by 1.3 percentage points year-on-year to 16.8%.
Meanwhile, the internet business focused on upgrading user experience and accelerating its expansion into international markets. In 2025, the internet business continued to deliver strong profitability, with revenue increasing by 18.3% year-on-year to HK$3.11 billion, while gross profit margin remained at a robust 56.4%. Furthermore, TCL TV became the first in the industry to integrate Google’s AI assistant, Gemini, laying the foundation for future growth in overseas internet revenue.
The innovative business maintained strong growth momentum, with revenue increasing by 31.9% year-on-year to HK$35.63 billion. Among these, the photovoltaic business adhered to disciplined operations and risk management, steadily consolidating its domestic leadership while continuously improving operating efficiency, and leveraged the SunPower brand and TCL’s global service resources to accelerate its expansion into Europe’s high-value integrated “solar-storage-heating” market. In 2025, revenue from the photovoltaic business grew by a better-than-expected 63.6% year-on-year to HK$21.06 billion.
On our journey of R&D and innovation, we adhered to the development philosophy of “Strengthening Capabilities Internally and Externally, Empowered by AI”, and remained committed to translating technological warmth into better user experience and stronger operational efficiency. In products and services, we used AI to reshape the interactive experience: debuting Gemini TV in overseas markets, further developing the Fuxi large language model and our proprietary content creation platform in the domestic market, making the TV operating system more intuitive and better attuned to users’ needs, and enhancing user engagement and monetisation potential.
SQD-Mini LED won the CES Gold Award, establishing an industry benchmark for picture quality. NXTPAPER 4.0 technology and RayNeo AR glasses marked new progress in the mass production of full-colour Micro-LED, advancing the frontiers of eye-care and optical technologies. At the same time, with an eye on the future, we launched our first modular smart home companion robot, AiMe, and the HEMS home energy system, extending smart living into emotional companionship and green energy solutions.
In terms of corporate operations, we embedded AI across the enterprise, connecting the entire value chain from R&D, manufacturing, supply chain to sales, and enabling data-driven lean growth from R&D precision and agile delivery to efficient asset turnover. Going forward, we will continue to uphold long-termism, allowing the seeds of innovation to bear fruit over time through each technological breakthrough and efficiency improvement.
Global Operations, Local Integration, Quality Enhancement and Efficiency Driven Growth
In 2025, as the Company navigated an increasingly complex global market, the Company adopted “Global Operations, Local Integration” as a core principle and firmly advanced its strategic transformation from scale expansion to deeper value creation. We are keenly aware that only by taking root locally and growing together with global partners can an enterprise thrive across economic cycles and achieve long-term sustainable progress.
On the business front, we balanced strategic focus with forward-looking positioning. The Company will leverage its milestone joint venture with Sony to further integrate top-tier technology and channel strengths, enhancing its presence in the global premium market and consolidating its industry-leading position in the future. At the same time, capitalising on the synergistic advantages of the large display organisation, we increased strategic investment in R&D, supply chain and local talents, with a key focus on strengthening relatively weaker product categories. Looking ahead, the Company will remain committed to pioneering technological innovation and proactively positioning itself in new areas such as AR and robotics to incubate future growth engines.
On the operational front, we put our value-sharing philosophy into practice by pursuing mutually beneficial strategic channel partnerships and improving retail efficiency in global markets, while maintaining efficiency as a fundamental operating discipline. We leveraged AI to empower the entire value chain from R&D to delivery, building an agile and transparent supply chain system. The Company has a global TV production capacity of over 30 million units, with a distributed manufacturing footprint that enables flexible allocation and rapid response to market demand across regions.
During the year, the Company proactively expanded and reallocated production capacity in Mexico in a timely manner, effectively responding to global tariff challenges. At the organisational level, we strengthened global cultural alignment and built an international talent pipeline through a dual approach of global talent rotation and localised development. We also further integrated the “Inspire Greatness” brand spirit with the Olympic spirit, ensuring that the Company remains vibrant and competitive throughout its globalisation journey.
Practising Green Development, Fulfilling Social Responsibilities, Optimising Governance and Creating Long-Term Sustainable Value
The Company regards sustainable development as a long-term strategy, deeply embedding ESG principles into its global operations. In environmental terms, the Company remained committed to advancing green technology, with cumulative green electricity generated by its photovoltaic business reaching 14 billion kWh and contributing to a reduction of more than 10 million tonnes of carbon emissions.
The Company continued to refine its green product portfolio, with over 8,300 products having received energy-saving and green certifications on a cumulative basis. Its core business maintained a B rating in CDP climate change assessment, and the mobile phone business received gold medal in EcoVadis Rating.
In terms of social responsibility, the Company remained committed to building a responsible supply chain, having completed mineral due diligence on over 280 suppliers and achieving 100% traceability of raw materials. The Company also actively contributed to the community, with annual charitable donations of approximately HK$20 million, continuously fostering a spirit of philanthropy.
In terms of governance, the Company has built a diverse and inclusive organisational ecosystem, with female employees accounting for over 40% of the workforce, and overseas employees accounting for nearly 30%. The Company has strengthened its compliance safeguards, with anti-corruption training during the year covering over 10,000 participants.
In recognition of its outstanding performance, the Company has received an A rating in the Hang Seng ESG assessment for eight consecutive years and an AA rating in the Wind ESG rating. Going forward, we will continue to enhance our ESG performance, creating long-term sustainable value for Shareholders and the wider society.
Embracing Renewal, Building on Momentum, Deepening Global Presence and Creating Long-Term Value Together
With steadfast resolve, we move forward to embrace the opportunities ahead. In the face of the profound restructuring of the global industrial landscape, we are keenly aware that the mere accumulation of scale is no longer sufficient to meet the challenges ahead.
In 2026, the Company will adopt “Embracing Renewal, Building on Momentum” as its operating principle, deepening its “Globalisation 3.0” strategy. We will strengthen our market position through product premiumisation, enhance global influence through deeper brand building, reinforce our efficiency foundation through refined operations, and unlock internal momentum through organisational agility, driving the Company from scale-driven growth towards stronger operating quality and core capabilities.
At the same time, the Company will continue to practise “Global Operations, Local Integration”, establishing a clearer overseas governance structure and deeper localisation to build a resilient ecosystem capable of adapting to the evolving global landscape.
Looking ahead, TCL Electronics will maintain its strategic resolve, open up new paths amid change, and advance steadily towards true global leadership, living up to every trust and expectation placed upon us.
DU Juan
Chairperson
27 March 2026