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SCMP Reporter

TCL Multimedia Technology Holdings, the world's biggest television maker by unit sales, said net loss last year shrank 90 per cent after it completed the restructuring of its unprofitable European business.
Including a one-off fair value gain on  derivatives of HK$241 million, last year's loss was HK$262 million,  compared with HK$2.5 billion in 2006.  Sales fell 27 per cent to HK$21.3 billion.
'We cannot forecast when we will turn into a profit but we are continuously improving our operations,' said TCL Multimedia chief executive Leong Yue-wing.
The company last year closed its  European operation after years of losses as consumer preferences changed towards  the traditional cathode-ray-tube televisions  that it produced. The unprofitable unit was inherited from a venture with France's Thomson Group, the firm's first big  overseas push.
'TCL Multimedia's income figures improved a lot after it wrote off the loss-making business in Europe last year,' said Kenny Tang Sing-hing, an associate director at Tung Tai Securities.
'However, the company's margin will not significantly improve as the global LCD TV market is still very competitive.'
The company plans to boost sales of liquid-crystal-display televisions  this year with the aim of  moving into the world's top 10  from its ranking as No13.
It wants  to sell 4.2 million units  this year, compared with 1.4 million  last year, but this target  still pales in comparison  with the 8.44 million units sold in the first nine months of the year by Samsung Electronics, the world's biggest maker,  according to research by Hong Kong-listed TPV Technology, which is ranked No6 worldwide.
Sharp and Sony ranked second and third-largest in the world's LCD television  market, while other key  players included LG Electronics and Royal Philips Electronics.
Shenzhen-based TCL targets combined sales of LCD models and traditional televisions at  14.68 million units,  against  15.01 million units  last year.
Sales of home networking products - which include  DVD players - rose 35 per cent to HK$3 billion last year.
Mr Leong said the company had been making  digital photo  frames for a few  months  and targeted output of  at least 200,000 units this year.
'We will have a significant investment in the second half  to enhance our supply chain but we cannot disclose it now,'  Mr Leong said.
Shares in TCL Multimedia fell 2.17 per cent to close at 45 HK cents yesterday.



TCL Multimedia slashes net loss  90pc after European restructuring