TCL Corp, a domestic electronics maker, said that its net profit surged 253.73 percent to 1.67 billion yuan ($265.07 million) in 2011 despite an industry slowdown, according to a statement posted on the Shenzhen Stock Exchange yesterday.
The company's sales revenue in 2011 topped 60.83 billion yuan, up 17 percent year-on-year, with some 37 percent of its sales contributed by the overseas market, said the statement.
Industry giants like Sony and Panasonic have predicted losses in their 2011 performance due to the sluggish global demand. Panasonic said earlier this month that its losses in 2011 could amount to $9.2 billion.
European appliances giant Philips reported losses of 1.29 billion euros ($1.73 billion) in its 2011 financial report.
"Unlike Japanese and Korean TV makers, who rely heavily on the global market, domestic companies mainly focus on the domestic market, which still has potential for further growth," Liu Buchen, a home appliances expert at Zhengzhou-based Kuafu Management Consulting, told the Global Times yesterday.
Hisense, a major competitor of TCL, said that its net profit for the first three quarters of 2011 stood at 892 million yuan, up 94 percent year-on-year. The company said last month that its net profit was expected to grow 100 percent in 2011.
"Government's policy support, such as the policy to boost appliances consumption in the countryside, was also a positive factor for TV makers' performance last year," said Luo Qingqi, a home appliances expert and director of Pa Le Consulting Corporation.
Luo noted that TCL's presence in the whole industrial chain of TV production brings the company advantages in terms of technology strength and cost reduction.
In 2011, the sales revenue of TCL in the overseas market reached 22.3 billion yuan, accounting for 37 percent of the company's total sales. TCL purchased French TV maker Thomson in 2004, which has paved the way for its expansion in Europe.
TCL holds 4.9 percent of the global LCD TV market, ranking the seventh in the world, up from last year's 10th, according to consulting firm DisplaySearch.
"All of TCL products sold in the overseas market are not under its own brand. There is still a long way before TCL, or any other domestic electronics producer, can be called an international brand," said Liu.
Domestic appliances makers still lag far behind the international industry leaders in terms of brand recognition and product innovation, Liu said.
TCL is upbeat about its 2012 performance, given a growing demand in the rural areas in China. The company aims to sell 12.8 million units of TVs this year, 27.1 percent higher than last year. Shares of TCL Corp climbed 2.14 percent yesterday, against an average drop of 0.15 percent on the Shenzhen Stock Exchange.