TCL Technology (SZSE: 000100) released its preliminary first-half 2026 results on July 13, indicating a significant improvement in profitability.

For the reporting period, the company expects to achieve a net profit attributable to shareholders of between 3.70 billion and 3.92 billion yuan, representing a year-on-year increase of 96% to 108%.

After excluding non-recurring gains and losses, the estimated net profit attributable to the parent company ranges from 2.92 billion to 3.14 billion yuan, a rise of 87% to 101% year-on-year.

The semiconductor display business, serving as the core growth engine, contributed the majority of the profit increase.

Key Profit Driver

The announcement shows that TCL China Star achieved a net profit exceeding 3.8 billion yuan in the first half, with the corresponding portion attributable to the listed company's shareholders surpassing 3.2 billion yuan.

Against a backdrop of rising memory device prices and pressure on consumer electronics end-market demand, these results demonstrate the company's comprehensive competitiveness in production capacity allocation, product mix, and cost control.

Business Segment Performance

In the large-size display segment, the industry's supply-side structure continues to optimize, leading to a more balanced supply-demand relationship.

With the established trend towards premiumization and larger screen sizes downstream, prices for major panel products have remained stable, exhibiting only mild seasonal fluctuations.

Leveraging its efficient production line layout and technological advantages, TCL China Star has maintained a high level of profitability in its large-size business, solidifying its role as the earnings anchor.

For the medium-size segment, capacity ramp-up and product mix optimization are the primary growth drivers.

The Guangzhou t9 production line is steadily increasing its output, with shipments and revenue for IT products both showing year-on-year growth and profitability continuing to improve.

Notably, TCL China Star's shipment area for LTPS automotive display panels has reached the global number one position.

The company has achieved full coverage of leading industry clients, successfully securing a strong position in the high-growth automotive display niche.

In the small-size OLED field, despite facing short-term market pressures, the company remains steadfast in its high-end strategy.

Through a differentiated technology roadmap, several high-end products have achieved mass supply to leading brand customers, building momentum for future profit realization.

Minority Stake Acquisition to Boost Profits

Furthermore, TCL China Star is actively advancing the acquisition of minority equity interests in the t9 production line.

As the core vehicle for the medium-size business, the t9 line, upon completion of the equity integration, will be further consolidated into the listed company's financial statements.

This move is expected to significantly enhance the net profit attributable to the parent company from the semiconductor display business, strengthening the listed company's overall profitability.

Overall Outlook

Overall, TCL China Star's first-half performance growth stems from a healthy business structure characterized by "stable large-size profitability, rapid medium-size growth, and forward-looking new technology deployment."

As the industry's cyclical nature weakens and the supply-side structure optimizes over the long term, coupled with the anticipated equity integration of the t9 line, the company's future profit center is expected to rise further.