TCL sees turnaround as profit leaps 308pc to HK$441m

TCL Communication Technology, one of the world's largest mobile phone makers, staged a massive turnaround as its first-half net profit climbed 308 per cent to HK$441 million, against a net loss of HK$209 million at the same time last year.

A company statement said TCL "successfully shifted its business focus" to smartphones, with margins rising to 19.5 per cent in the first half of 2014 from 17.6 per cent in the same period in 2013.

"The group expects that growth momentum will continue in smart device business during the second half of the year, the traditional peak season for the handset industry," it said.

Group revenue surged 91 per cent to HK$12.2 billion.

More mid-to-low end smartphones can be expected in the second half to cater to demand in emerging markets, the company said, while more products with 4G capabilities will be released along with the gradual roll-out of 4G services worldwide.

With the shift, first-half sales volume of smartphones surged 220 per cent year on year to 15 million units, accounting for half the company's total sales volume. Boosted by smart devices, the overall average selling price increased to US$52.30 from US$39.80 in the same period.