Generated New Revenue Stream of HK$96 Million from Internet Business in Overseas Markets
HONG KONG, Aug. 26, 2019 /PRNewswire/ -- TCL Electronics Holdings Limited ("TCL Electronics" or the "Company", stock code: 01070.HK) is pleased to announce that the Company recorded rapid growth in terms of its Internet business in the first half of 2019, with the total revenue soaring by 125% year-on-year to HK$349 million (unaudited), 28% of which came from the overseas markets for the first time, reaching HK$96 million.
The Company deepened its Internet TV business partnership with Roku (Nasdaq: ROKU) in North America and Google (Nasdaq: GOOGL) in Europe and South America in the first half of the year to jointly upgrade user experience of TCL TVs in overseas markets. With stronger profitability of its overseas Internet business, TCL Electronics has become the first Chinese company of the industry to gain large-scale and sustainable revenue generated from overseas Internet business.
With 20 years' continuous efforts in overseas markets, TCL Electronics has secured a leading position among the global top 2 in terms of TV sales volume, and overseas markets have become an important engine for the Company's business growth. While further expanding major overseas TV markets, the Company has persisted in enriching and optimizing its Internet content and strengthening user loyalty, thus contributing to more revenue streams and stronger monetization ability of its Internet business. Going forward, the Company will continue to vigorously expand the Internet business overseas. As OTT industry develops rapidly all over the world and the overseas TV sales volume of the Company grows at a fast pace, it is expected that its overseas Internet business will contribute more to the Company's overall profitability in the future.
In addition, Shenzhen Falcon Network Technology Co., Ltd., as the Company's Internet operating platform currently active in China and some of the emerging overseas markets, recorded revenue of HK$253 million (unaudited) in the first half of 2019, representing a remarkable increase of 63.3% over the corresponding period of last year. The Company has actively optimized user experience, enriched content on the platform and strengthened the AI function, thus continuously enhancing the user loyalty. The average daily time spent on TV for the Company's Internet business users continued to increase and reached 5.66 hours in the first half of 2019. The total global activated user number of the Company amounted to 36.75 million, up by 34.3% year-on-year and the global average daily number of active users reached 17.07 million as of 30 June 2019 (source: Huan Technology Co., Ltd.).
In the future, the Company will further penetrate into key overseas markets and deepen strategic cooperation with Roku and Google; proactively expand into emerging markets which have huge potential such as India and South America; optimize its product mix and channel structure in China; build an even stronger brand awareness in the global market and improve brand influence, continuously enhance global manufacturing layout and continue to increase global market share. At the same time, the Company will push forward its Internet business and the strategy of "AI x IoT" and strive to realize the interconnection of hardware + software + all devices with various loT scenarios, and provide users with smart and healthy living products and services with the aim to become a global leading smart technology company with recurring and sustainable Internet business revenue, and create greater value for shareholders.
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About TCL Electronics
Headquartered in China, TCL Electronics Holdings Limited (stock code: 01070.HK, incorporated in the Cayman Islands with limited liability) is one of the leading players in the global TV industry, and is engaged in the research and development, manufacturing and distribution of consumer electronic products. Through a new product-and-user-oriented business model that focuses primarily on a "double +" strategy which includes "smart + internet" and "products + services" as the main direction, TCL Electronics strives to build a comprehensive ecosystem for smart TVs that provides users with smart and healthy living products and services, and is dedicated to becoming a global leading smart technology company. According to the latest Sigmaintell report, the Company ranked No. 2 in the market share among the global TV markets in terms of sales volume in 2018. According to CMM omni-channel data, TCL Electronics ranked No.3 in the market share in the PRC TV market in terms of turnover in 2018. TCL Electronics is included in the eligible shares list of the Shenzhen-Hong Kong Stock Connect Scheme, Hang Seng Stock Connect Hong Kong Index, Hang Seng Composite MidCap & SmallCap Index and Hang Seng Corporate Sustainability Benchmark Index. For more information, please visit its website: https://electronics.tcl.com
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