TCL MULTIMEDIA: Posts HK$2.5 Billion Net Loss for FY 2006
Company Reporter, June 12, 2007
TCL Multimedia Technology Holdings Ltd
recorded a net loss of HK$2.5
billion on HK$29.18 billion of turnover for the full year ended Dec. 31,
2006, compared with a net loss of HK$703.28 million on HK$32.50 billion
of turnover in 2005.
According to the company, the decline in turnover and gross profit was
mainly due to the winding down of the Groupís legacy Europe business
implemented since October 2006. "Although the Group
managed to achieve
satisfactory performance in other key markets, the profits could not
compensate for the substantial operating loss and the costs and
impairment provisions for restructuring incurred by the Europe business,
resulting in a net loss attributable to equity holders of the parent of
HK$2,497 million for the year under review."
As of Dec. 31, 2006, the company's unaidited balance sheet showed
strained liquidity with current assets of HK$9.65 billion available to
pay current liabilities of HK$10.66 billion. In addition, the
company's balance sheet as of Dec. 31 showed total assets of HK$12.4
billion and total liabilities of HK$10.71 billion, resulting to a
shareholders' equity of HK$1.69 billion.
Headquartered in New Territories, Hong Kong, TCL Multimedia Technology
Holdings Limited -- http://www.tclhk.com/ --
designs, manufactures and
sells electronic products like colored TV, DVD players, VCD players,
home cinema hi-fi systems, mobile handsets, Internet-related information
technology products,refrigerators and washing machines. Its
activity includes trading electronic parts and components used in the
production of color television sets.
On Aug. 31, 2006, the Troubled Company Reporter - Asia Pacific reported
that TCL Multimedia Technology Holdings Limited's European operations
posted a CNY763 million loss, which caused
losses of the TCL Corp. group to widen to CNY737.56 million. Moreover,
the TCR-AP on Oct. 24, 2006, said that TCL is expecting to post a loss
for the full-year because first-half losses had been so large. In
the first half of 2006, TCL reported a net loss of CNY737.56 million,
after a loss of CNY320.24 million in 2005.
The TCR-AP recounts that in 2004, TCL
acquired the TV unit of French
electronics firm Thomson, which uses the Thomson brand in Europe and RCA
in North America. TCL grouped all its TV businesses under TMT.
TTE Europe SAS, TCL's European unit, filed a declaration of insolvency
on May 24, 2007 in France after it failed to settle a number of