Gelonghui, March 28 | TCL Electronics (01070.HK) announced that for the year ended December 31, 2023, the Group's revenue reached HK$78.986 billion, up 10.7% year on year. Thanks to the continuous optimization of TCL's smart screen product structure, the “middle and high-end plus big screen” strategy promoted steady business expansion, and the scale effect was increasing. Gross profit increased 12.5% year on year to HK$14.756 billion, and overall gross margin increased 0.3 percentage points to 18.7% year on year. In terms of expenses, on the one hand, the Group insisted on reducing costs and increasing operating efficiency, and the administrative expenditure rate decreased by 1.1 percentage points to 5.1% year on year; on the other hand, while strengthening its own brand power, the Group insisted on precise marketing control investment to achieve a 0.4 percentage point to 10.0% year-on-year reduction in sales expenses; ultimately driving the Group's overall expenses rate down 1.5 percentage points to 15.1% year on year.
In 2023, the Group will continue to promote the rapid development of innovative businesses such as distributed photovoltaics, all-category marketing, and AR/XR smart glasses based on the brand power accumulated in the display business, global channel resources and vertical integration advantages of the entire industry chain. Through the Internet service as a value-added service, the full category layout of the “smart IoT ecosystem” was consolidated, creating a higher value brand competitiveness, and driving the Group's profit after tax to increase by 49.3% year-on-year to HK$827 million. Net profit to mother recorded HK$744 million, an increase of 66.4% year-on-year, and adjusted net profit to mother increased 14.0% year-on-year to HK$803 million. To give back to shareholders for their unremitting support, the board of directors recommended a final dividend of HK16.00 HK cents per share, with a dividend payout ratio of 50.0% of adjusted net profit to mother.
During the year, the Group's overall financial situation remained at a steady level. As of December 31, 2023, the Group's capital debt ratio (total amount) was 37.2%; the Group insisted on putting efficiency first, optimizing supply chain, logistics and service capabilities and cooperative ecology through a global layout, and operational efficiency improved. The number of days of Group inventory turnover was 69 days during the year, 9 days faster than the previous year; and the number of cash turnover days was 33 days, an increase of 14 days over the previous year.