TCL pins hope on quality sets
TCL International Holdings does not expect earnings this year to be affected by adverse conditions in the mainland's television market, according to the firm's chairman Tomson Li.
The company - which is planning to list in the SAR this year - had forecast a sharp improvement in earnings this year because of its launch of digital televisions in the urban market, Mr Li said.
It is also counting on the introduction of television sets designed to improve reception in the countryside to pay off, he said.
'The television sets we sell in rural areas overcome such problems as weak reception and low voltage,' he said.
TCL, the mainland's third-largest television-maker, had also increased prices this year, Mr Li said.
The company has also upgraded its manufacturing facilities in a bid to cut costs.
Last year, TCL's earnings jumped 59.11 per cent from the previous year to $323 million.
In the first five months of this year, TCL had 'double-digit growth' of sales in the rural market, Mr Li said.
Television manufacturing accounts for 85 per cent of turnover. The remainder comes from information-technology and telecommunications products as well as home appliances.
TCL has a 16 per cent share of the television set market in the mainland's urban area, according to Mr Li.
Television-set production is part of the consumer-electronics division, which is part of its assets to be injected in its listing.