TCL ELECTRONICS (01070) announced its financial results for the three months ended March 31, 2026. In the first quarter of 2026, the group steadfastly advanced its strategies of "globalization" and "mid-to-high-end positioning," maintaining robust growth momentum. Net profit attributable to shareholders increased significantly year-on-year. Despite challenges during the reporting period, including heightened uncertainty in the Middle East geopolitical situation, a sharp rise in crude oil prices, and fluctuations in global demand for consumer electronics and home appliances, the group achieved total revenue of HKD 29.225 billion, representing a 15.3% increase compared to the same period in 2025. Domestic and overseas revenues accounted for 39.0% and 61.0% of the total, respectively.

Benefiting from continuous improvement in the product mix of the TCL TV business and the accelerated expansion of the high-profit overseas internet business, the group's gross profit grew by 27.6% year-on-year to approximately HKD 4.719 billion. The gross profit margin increased by 1.5 percentage points to 16.1% compared to the same period in 2025. Concurrently, as the group's operational efficiency continued to improve, the overall expense ratio decreased by 0.7 percentage points year-on-year to 12.5%.

For the first quarter of 2026, the group's profit after tax increased by 236.0% year-on-year to HKD 392 million. Adjusted net profit attributable to shareholders rose by 140.0% year-on-year to HKD 384 million, indicating a significant enhancement in profitability.

Additionally, the group announced on March 31, 2026 (after trading hours) that it had entered into a legally binding final agreement with Sony for strategic cooperation in the home entertainment sector. In the future, the two parties will establish a joint venture to build a new ecosystem for the global home entertainment industry, further deepening the group's strategic presence in the global mid-to-high-end market.

Looking ahead to the full year of 2026, the group is confident that through steadfast execution of its strategy, it will achieve sustained and steady growth.