TPV Technology’s performance broke out in the fourth quarter, turning losses into profits throughout the year

Recently, TPV Technology (000727), a world-renowned display and LCD TV manufacturer, released its performance forecast for 2022.
According to the announcement, TPV Technology is expected to achieve a net profit attributable to the parent company of 75 million to 97 million yuan in 2022, a year-on-year decrease of 81.77% to 85.91%. The net profit attributable to the parent company is 32 million yuan – 41 million yuan after deduction, a year-on-year decrease of 71.30% to 77.60%.

TPV Technology’s performance exploded in the fourth quarter and twisted throughout the year

From January to June 2022, TPV’s operating revenue accounted for 99.44% of the electronic component industry.

The main reasons for the performance changes are the repeated COVID-19, slowing macroeconomic growth, high global inflation, interest rate hikes by multinational central banks, and international geopolitical conflicts during the reporting period, which have affected consumers’ purchasing intentions. The company’s shipment volume is lower than expected, and gross profit has decreased.
It is worth noting that the third quarter report of TPV Technology in 2022 shows that the company achieved a net profit attributable to its parent company of 125 million yuan in the first three quarters of last year. Combined with performance forecast data, TPV Technology achieved a net profit of RMB 200 million to RMB 222 million attributable to the parent company in the fourth quarter of 2022.
It can be seen that TPV Technology ushered in a wave of performance boom in the fourth quarter, and was forced to stop the decline, achieving a positive profit for the whole year. Some analysts believe that the profit is mainly due to the turnaround brought by the peak sales seasons such as the Double 11, World Cup, and Christmas, as well as the stable operating rhythm of the company in the post epidemic era.

According to the “Battle Report between AOC and Philips on November 11” displayed on the official website of TPV Technology, AOC, a brand of TPV Technology, won the “9th consecutive championship on November 11, 2022”, with a total sales volume of 220 million yuan and 160000 units.

TPV Technology’s performance broke out in the fourth quarter, and throughout the year

Turning losses into profits, high-end Mini LED and e-commerce display screens ranked first in the total network turnover, with significant growth in 4K/144Hz high-brush display screens, AOC commercial display screens, and other displays. Many of its display products are popular on various e-commerce platforms, with strong market competitiveness, and still maintain a leading position in the industry.

It can be seen that TPV Technology focuses on areas with huge growth potential such as commercial displays, e-commerce displays, mini LEDs, and ultra high definition displays, and is expected to grow into a new growth engine for the company, bringing a second growth curve.

TPV Technology stated that in 2023, the global situation is changing, display technology is changing, and the industry situation is changing. In the face of the new situation in 2023, the company will continue to make efforts to transform, seize the huge opportunities in the intelligent display market demand, cooperate with the industry and even cross-border with an open attitude, and strengthen the company’s capabilities. O Provide solutions, continuously innovate and reform in product side and business model, increase gross profit margin, and maintain market leading position.

It is understood that TPV Technology, formerly known as Edmond Overseas Co., Ltd., was established in Taiwan in 1967. Currently, TPV Technology has grown from a small display factory to a leading global LCD TV intelligent manufacturing enterprise with 13 factories and an annual output of nearly 60 million units. The production and sales volume of the company’s liquid crystal display has long maintained the first place in the world, with a market share of over 30%. The production and sales volume of LCD TV also ranks among the top five in the global LCD TV market.