TCL Technology H1 2026 Revenue RMB 88.65B, Net Profit Up 102.2%

TCL Technology reported operating revenue of RMB 88.65 billion for the first half of 2026, up 3.6% year-on-year, with net profit attributable to shareholders of RMB 3.81 billion, up 102.2%. Profit growth came from three main sources: equity gains from acquiring the Guangzhou Huaxing Semiconductor t9 project, improved profitability in the display business, and reduced losses in the photovoltaic business.

In March 2026, TCL Technology announced the acquisition of a 45% stake in the Guangzhou Huaxing Semiconductor t9 project, achieving 100% direct and indirect control after completion. The transaction was valued at approximately RMB 9.325 billion, corresponding to equity net profit of about RMB 970 million and an implied price-to-earnings ratio of approximately 9.6 times. The company cancelled the matching capital raise and used its own funds to pay the consideration. The t9 project achieved net profit of RMB 1.154 billion in H1 2026, up 203.99% year-on-year.

In the display business, TCL CSOT made progress in both large-size and medium-size markets. Large-size business revenue accounted for about 50% of CSOT's revenue, with a gross margin of 20.10% for the display business in 2025. In the esports monitor segment, TCL CSOT maintained the world's largest market share, launching the world's first native 1080P, 1000Hz monitor in 2026 and becoming the official display partner for CFPL 2026. The automotive display business continued to grow, with LTPS automotive panel shipment area share ranking first globally since Q4 2025, and shipment volume up more than 50% year-on-year in H1 2026. The t9 project uses oxide technology, achieving a stepwise breakthrough from high mobility 30 to ultra-high mobility 50, with large-scale application in mainstream tablet terminals.

In the photovoltaic business, TCL Zhonghuan shipped 53.9GW of silicon wafers in H1 2026, maintaining the industry's top market share, with EBITDA improving by RMB 290 million year-on-year. The company continued production on demand, reducing costs through supply chain optimization, process improvements, and energy management. Li Dongsheng, founder and chairman of TCL, hosted the TCL Zhonghuan investor exchange meeting to discuss the photovoltaic industry's development with investors.

Regarding capital expenditure, industry statistics show that global flat-panel display equipment investment peaked at approximately USD 21 billion in 2017, with annual equipment spending falling to about USD 8 billion in recent years. TCL Technology's cash paid for fixed assets, intangible assets, and other long-term assets in 2025 was RMB 16.28 billion, down more than 30% from RMB 23.69 billion in 2024; operating cash flow increased from RMB 29.53 billion to RMB 44.02 billion, up 49.1% year-on-year. On this basis, the metric of operating cash flow minus cash paid for long-term assets improved from about RMB 5.8 billion in 2024 to about RMB 27.7 billion in 2025. At the end of 2025, construction in progress fell from RMB 23.58 billion at the beginning of the year to RMB 16.18 billion, a decline of more than 30%, which the company attributed mainly to reduced new capital expenditure. The company stated that it has basically ended the phase of high-intensity capital expenditure and intensive acquisition of minority stakes.

In display technology upgrades, the 8.6-generation printed OLED production line t8 project has completed its main structure topping-out, with mass production planned for Q4 2027. The company, together with MSI, launched the first printed OLED desktop display product targeting the mainstream consumer market. The product's yield and cost have reached mature mass-production standards, and the company is advancing verification of printed OLED products for IT applications such as monitors and notebooks with several leading terminal brands.

In glass substrates and optical communications, TCL CSOT and Tianjin Printronics jointly publicly demonstrated a glass-core substrate sample at the end of 2024. At the 2026 Display Week, TCL CSOT showcased a 1700PPI Real RGB glass-based OLED display. At the investor exchange meeting on August 28, TCL Technology stated that it has formed a professional team to conduct technical exchanges and joint development with target customers on process challenges such as TGV copper filling, stress control in multi-layer film structures, and glass substrate deep processing, planning to display related samples in H2 2026 and start the construction of a pilot R&D platform. In optical communications, the company will leverage the Shenzhen Huazhao Xingguang project to reuse LED manufacturing capabilities, starting with indium phosphide laser chips, and later extending to optical components and high-speed optical modules.