TCL Profit Soars 56% on AI, Premium TVs, and Solar Power

HONG KONG – March 27, 2026 – TCL Electronics (01070.HK) has announced a landmark year, reporting a staggering 56.5% surge in adjusted profit for 2025, driven by a successful strategic pivot towards high-end technology, artificial intelligence, and significant diversification into new growth sectors. The consumer electronics giant posted revenues of HK$114.58 billion, a 15.4% year-on-year increase, while adjusted profit attributable to owners of the parent climbed to HK$2.51 billion.

The robust results underscore the effectiveness of the company's dual-drive strategy of “Globalisation” and “Mid-to-High-End” products. By moving aggressively into premium display technologies and expanding into high-growth areas like photovoltaics and AI-driven smart devices, TCL is successfully reshaping its identity from a volume manufacturer to a diversified, value-driven technology powerhouse.

The Premium Push: Dominating High-End Displays

A core driver of TCL’s soaring profitability is its successful conquest of the premium television market. The company cemented its position as the world's second-largest TV brand by shipments in 2025, but the real story lies in its dominance of the advanced Mini LED segment. Global shipments of TCL's Mini LED TVs skyrocketed by an astonishing 118.0% year-on-year, securing the company the undisputed number one global ranking in this crucial high-margin category, according to industry data from Omdia.

This strategic focus on premiumization has had a direct and significant impact on the company’s bottom line. The gross profit margin for its large-sized display business increased by 1.3 percentage points to 16.8%. This success is particularly evident in mature international markets. In North America, TCL’s revenue grew by 11.2% while its average selling price (ASP) jumped by over 20%, a clear indicator that consumers are embracing its higher-end offerings. Similarly, European revenue grew 13.9% as the product mix shifted towards more valuable models.

The trend towards larger screens has also played into TCL’s hands. Overseas shipments of TVs 65 inches and larger surged by 50.0%, while in its domestic PRC market, this category now accounts for 57.6% of shipments. This deliberate strategy to lead in both size and technology is proving to be a powerful combination, allowing TCL to challenge long-standing market leaders like Samsung and LG in the lucrative premium space.

More Than a Screen: AI and Software as Growth Engines

TCL is making it clear that its future lies not just in hardware, but in the intelligent software and ecosystems that power it. The company has fully embraced artificial intelligence, embedding it across its product lines and operations. In a significant move, TCL's flagship overseas TV models were among the first in the industry to integrate Google Gemini, enhancing user interaction and smart capabilities.

This software-centric approach is also fueling its internet business, which saw revenues climb 18.3% to HK$3.11 billion with an impressive gross profit margin of 56.4%. The company's content aggregation app, TCL Channel, has seen its global user base swell to over 45.70 million, with daily usage duration increasing by 150% following a content and user experience upgrade.

Beyond the living room TV, TCL is pioneering new categories of AI-powered devices. The company made waves with the launch of TCL AiMe, a modular AI companion robot designed for smart home control and companionship. In the rapidly emerging AR/XR sector, its incubated brand, RayNeo, has maintained its top position in the Chinese AI/AR glasses market. The launch of the RayNeo Air 4, the world's first HDR glasses, demonstrates a commitment to technological leadership in next-generation personal displays. These innovations signal TCL's ambition to build a comprehensive “Smart IoT Ecosystem” that extends far beyond traditional screens.

Tapping New Energy: How Diversification Fuels the Bottom Line

Perhaps the most striking element of TCL's 2025 results is the explosive growth of its innovative businesses, which saw revenue surge by 31.9% to HK$35.63 billion. The standout performer within this segment is the photovoltaic (PV) business, which has rapidly become a major pillar of the company's financial structure.

Revenue from the PV business soared by 63.6% year-on-year to HK$21.06 billion. This remarkable expansion is built on what the company describes as a relatively “asset-light” model in its domestic market, focusing on market-based electricity trading and strong channel partnerships. In 2025 alone, the business achieved 8.0 GW of new installed capacity and expanded its network to over 2,530 dealers. The success has earned TCL Solar a place on the prestigious Bloomberg TIER 1 List and InfoLink's 2025 list of top global solar manufacturers.

This strategic diversification into renewable energy not only provides a powerful new revenue stream but also enhances the company's resilience against fluctuations in the consumer electronics market. By successfully cultivating this second growth curve, TCL is demonstrating a long-term vision that balances its core manufacturing strengths with high-potential new ventures.

Rewarding Confidence: A Windfall for Shareholders

In a strong vote of confidence in its own future, TCL's board has proposed a final cash dividend of HK49.80 cents per share, a significant 56.6% increase compared to the previous year. This corresponds to a dividend payout ratio of approximately 50% of the adjusted profit, signaling a commitment to sharing the fruits of its success directly with its investors.

The substantial dividend hike is a direct reflection of the company’s robust financial health and improved profitability. By successfully executing its multi-pronged strategy of premiumization, AI integration, and strategic diversification, TCL has not only fortified its market position but also created substantial value. The move to reward shareholders so generously underscores management’s belief that this high-quality growth is sustainable and sets a positive tone for the company's trajectory in the years ahead.