TCL Electronics and Sharp announce Q1 results

Recently, TCL Electronics and Sharp announced their first quarter 2026 results.

TCL Electronics

In the first quarter of 2026, TCL Electronics achieved revenue of HK$29.225 billion (approximately RMB 25.323 billion), a year-on-year increase of 15.3%; gross profit was HK$4.719 billion (approximately RMB 4.089 billion), a year-on-year increase of 27.6%; adjusted net profit attributable to the parent company was HK$384 million (approximately RMB 333 million), a year-on-year increase of 140%.

During the reporting period, TCL’s electronic display business revenue increased by 19.0% year-on-year to HK$19.523 billion, gross profit increased by 39.9% year-on-year to HK$3.316 billion, and gross profit margin increased by 2.5 percentage points year-on-year to HK$17. .0%; among which, the large-size display business revenue increased by 17.2% year-on-year to HK$16.715 billion, benefiting from the continued increase in the proportion of mid-to-high-end and large-size TVs, and the gross profit margin increased by 3.0 percentage points year-on-year to 17.5%.

During the reporting period, the global average size of the company's TV products increased by 2.3 inches compared with the same period last year to 55.6 inches; the proportion of TV shipments of 65 inches and above increased by 4.9 percentage points year-on-year to 32.6%; the proportion of TV shipments of 75 inches and above increased by 3.4 percentage points year-on-year to 17.1%.

At the same time, TCL Mini LED TV maintained rapid growth, with global shipments increasing by 102.1% year-on-year, and its share increased by 6.6 percentage points year-on-year to 15.4%. Among them, TCL Mini LED TV shipments in overseas markets increased by 178.3% year-on-year, and its share increased by 8.2 percentage points year-on-year to 14.2%.

As the proportion of large-size TVs and Mini LED TVs continues to increase, the product structure in overseas markets has further improved, driving the gross profit margin of overseas large-size display business to increase by 3.7 percentage points year-on-year to 16.6%.

At the end of March, TCL Electronics signed a contract with Sony. The two parties plan to establish a joint venture to undertake Sony's global home entertainment business including televisions, audio, etc. TCL Electronics made a supplementary announcement on May 11 that the two parties revised the agreement to set an upper limit on the total put price of Sony put options, which shall not exceed 100 billion yen (approximately HK$4.9 billion) under any circumstances. TCL Electronics said that its cooperation with Sony will further deepen its strategic layout in the global mid-to-high-end market in the future.

In addition to the display business, TCL Electronics’ Internet business and innovative business (including photovoltaics, full-category marketing, smart home, etc.) also showed growth in the first quarter of this year.

Among them, the electronic Internet business revenue increased by 13.2% year-on-year to HK$740 million, and the gross profit margin significantly increased by 10.6 percentage points year-on-year to 65.0%. Among them, the proportion of overseas Internet business revenue with high gross profit levels increased by more than 20.0 percentage points year-on-year.

Innovative business revenue increased by 8.1% year-on-year to HK$8.96 billion. Photovoltaic business revenue increased by 12.7% year-on-year to HK$4.81 billion, with newly installed capacity exceeding 1.3GW. Benefiting from the expansion of business scale, improvement of operating quality and overseas market expansion, the gross profit margin of the photovoltaic business increased to 9.4% year-on-year.

Sharp

From January to March 2026, Sharp's consolidated revenue decreased by 5.4% to 475.1 billion yen (approximately RMB 20.41 billion) compared with the same period last year. The consolidated operating income, which shows the industry's profitability, increased by 9.1% to 7.5 billion yen (approximately RMB 322 million). The industry showed a surplus for the seventh consecutive quarter, but due to the recognition of turtle The cost of structural reforms such as the suspension of production at the Sanchi 2 Factory was 16.838 billion yen (approximately RMB 723 million). The consolidated net income, which shows the final profit situation, turned from a surplus of 39.6 billion yen (approximately RMB 1.701 billion) in the same period last year to a loss of 20 billion yen (approximately RMB 859 million), which was the first time in five quarters that it fell into a loss.

In 2025 (April 2025 to March 2026), Sharp's consolidated revenue decreased by 12.4% year-on-year to 1.8928 billion yen (approximately RMB 81.315 billion). Consolidated operating income surged 77.6% to 48.5 billion yen (approximately RMB 2.084 billion), and consolidated net income surged 31.4% to 47.4 billion yen (approximately RMB 2.036 billion).

Looking at the departmental situation, the revenue of the Sharp brand business (including the Smart Workplace Department and the Smart Life Department) last quarter decreased by 2.2% from the same period last year to 367.4 billion yen (approximately RMB 15.784 billion), and the operating profit dropped significantly by 19.9% ​​to 17.5 billion yen (approximately RMB 752 million).

Among them, the smart working environment department (including PCs, photocopiers/printers, smartphones and other products) revenue decreased by 1.2% from the same period last year to 217.7 billion yen, and operating profit dropped by 28.2% to 10.8 billion yen (approximately RMB 464 million); The revenue of the smart life department (including home appliances, TVs, solar power generation systems and other products) fell by 3.6% to 149.6 billion yen (approximately RMB 6.427 billion), and operating profit decreased by 1.8% to 6.7 billion yen (approximately RMB 288 million).

Last quarter, Sharp’s display component business (PC/tablet panels and automotive panels) revenue increased 5.0% from the same period last year to 108 billion yen (approximately RMB 4.64 billion), and operating loss narrowed to 4.7 billion yen (approximately RMB 202 million) from 10.8 billion yen in the same period last year.

Looking forward to this year's performance (2026, April 2026-March 2027), Sharp estimates that consolidated revenue will decrease by 6.5% year-on-year to 1.77 trillion yen (approximately RMB 760.39 billion), consolidated operating profit will grow by 0.9% to 49 billion yen (approximately RMB 2.105 billion), and consolidated net income will shrink by 11.5% to 42 billion yen (approximately RMB 1.804 billion). (Source: Compiled by TCL Electronics, MoneyDJ, and TrendForce Display)

Please indicate the source when reprinting! For more LED information, please pay attention to the official website (www.ledinside.cn) or search the WeChat public account (LEDinside).