Chinese electronics company TCL Electronics Holdings has largely managed to overcome the economic impact of the coronavirus with its sales continuing to grow amid the disruptions. The company, currently ranked as the world's second-largest television manufacturer, reported impressive sales growth for its second quarter, largely boosted by its performance in North American.
During its earnings call in Shanghai on Wednesday, the company claimed that it was well on its way to hitting its 23 million-unit target for 2020. TCL's chief executive officer, Wang Cheng, noted that the pandemic, which had forced millions of people to stay at home, actually helped increase demand for its products.
To achieve its sales target for the year, TCL will need to sell at least 12 million units during the second half of 2020. TCL claims that the target is more than achievable as it does expect demand for its products to increase in the coming quarters, particularly in the holiday season.
Cheng told shareholders that he is expecting the demand to further increase in the coming quarter as more companies continue to let their employees work from home. He added that the upward momentum of its sales, particularly in the United States, should last "a while."
For the first quarter of the year, TCL managed to shrug off the downward trend in the global television market as it sold more than 10.07 million units during the period. While the global TV industry dropped by around 8 percent between January and June, TCL has reported stable profits and revenues.
For its second quarter ending June 30, TCL reported underlying profits of around HK$417 million, or roughly $53.8 million. This was an impressive 48.9 percent increase when compared with its profits over the same period last year. The company's total revenues for the quarter also surged by more than 36.6 percent to HK$10.3 billion for the period.
According to TCL, its business in North America has now become its largest source of growth. The company expects that its full-year sales for the market, which includes the U.S., Canada, and Mexico, should hit around 8 million units. TCL's chief financial officer, Hu Lihua, revealed that overall sales in North America had jumped by over 68.5 percent. TCL did not state the exact sales numbers for its North American business.
