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SCMP Reporter

TCL Multimedia Technology Holdings, one of the world's top three television makers by unit sales,  reported a HK$57.17 million loss in the third quarter because of a surge in tax charges.
TCL Multimedia paid HK$51.55 million in taxes in the quarter, more than double  the HK$24.95 million it paid a year ago, on an operating profit of HK$2.57 million.
The company paid the majority of the taxes on the mainland and did not provide explanations.
The company reversed a HK$217.56 million profit in the same quarter a year ago, when it benefited from a HK$287 million one-off fair value gain on the derivative component of convertible bonds.
Third-quarter sales rose 35 per cent to HK$7.39 billion while gross profit  rose 17.2 per cent to HK$1.12 billion.
'We have not engaged in any trading of forex or credit derivatives or leveraged futures or similar, complex, high-risk financial instruments,' said Leong Yue-wing, the chief executive of TCL Multimedia.
'Following redemption of the convertible bonds earlier this year, we have maintained a sound cash management strategy.'
The company sold 11.1 million television sets  in the first three quarters, compared with 10.9 million  a year ago. Shipments of liquid crystal display (LCD) units grew to 2.69 million  from 782,000 units thanks to overseas sales.  International sales grew 34.6 per cent to HK$2 billion but  showed an operating loss of HK$136 million because of pressure on prices.
'Owing to the sluggish global economic environment, the price of LCD TVs has dropped more than expected,' said Mr Leong.
'We believe our move into LCD TVs will pay off in the medium and longer term.'
For the first nine months, the Shenzhen-based company lost HK$255.36 million, mainly a result of the early redemption of convertible bonds of HK$610.88 million, compared with a HK$2 million loss a year ago.
TCL Communication Technology Holdings, TCL Multimedia's sister company, which makes mobile handsets, yesterday said its third-quarter net loss  fell 99 per cent to  HK$305,000 from HK$40.2 million.
Operating profit before the effects of convertible bonds rose 235 per cent to HK$24.4 million. Sales decreased 17 per cent to HK$1.12 billion.
The company shipped  3.5 million  handsets in the third quarter, slightly  fewer than the 3.59 million units a year ago.



TCL Multimedia  slips into the red   on higher tax bill