TCL Communication Continued to Achieve Sustainable Growthfor First Three Quarters of2011

Date:2011-10-27     Source:litingtinglitingting  Text Size:

TCL Communication Technology Holdings Limited ("TCL Communication" or "the Company", together with its subsidiaries referred to as "the Group"; HKSE stock (02618.HK) today announced the unaudited results of the Group for the three months and nine months ended 30 September 2011.

During the period under review, although the economic volatility worldwide and debt crisis have affected the purchasing power of consumers in some countries, which exerted impact on global handset demand at certain degrees, the Group continued to sustain strong growth momentum in the sales volume of handsets and other products. The remarkable results were attributable to the Group's continuous efforts in expanding into new and high-potential markets, as well as the successes of the Group's "step-up" product strategy and brand building efforts in open market. In the first nine months of 2011, a total of 30.5 million units of handsets and other products were sold, representing 28% surge year-on-year. Sales volume in overseas markets increased by 25% to approximately 27.5 million units, while sales volume in the China market increased by 71% year-on-year to 3.0 million units.

The Group's turnover for the third quarter and the first nine months of 2011 increased to HK$2,862 million and HK$7,462 million, respectively, both representing increase of 33% corresponding over the same period of 2010. The Group's continued its efforts in improving cost-control, as well as its enhanced product mix and high operational efficiency, gross profit margin remained stable at 22% for the first three quarters of 2011. Net profit for the third quarter and the first nine months of 2011 also increased by 7% and 34% to HK$215 million and HK$606 million, respectively. Basic earnings per share for the first nine months of 2011 increased to 54.84 HK cents from 41.91 HK cents in the corresponding period last year.

In September, the Group entered into an extended license fee agreement with Alcatel-Lucent. The Group would pay Alcatel-Lucent US$40 million (equivalent to approximately HK$312 million) license fee for the use of the "ALCATEL" brand for certain products from 1 July 2011 to 31 December 2024. The Group believes that this favorable arrangement will provide cost savings as the Group is expected to sustain its growth momentum and the scope of use will be extended beyond mobile phones to include smartphones, tablets, mobile broadband modems, wireless network appliance device and equipment.

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