(Yicai Global) Nov. 18 -- TCL Electronics Holdings’ share price slumped for the second day running today despite smashing expectations with its third-quarter profit and revenue results released yesterday as it is revealed that the Chinese TV maker is not one of the investors in the new firm taking over telecoms giant Huawei Technologies Honor smartphone brand.

TCL Electronics was not named as one of the 30 investors in Shenzhen Zhixin New Information Technology, according to a statement made by the Shenzhen Special Zone Daily yesterday.

Hong Kong-based TCL Electronics’ stock price [HKG:1070] was trading down 2.48 percent at HKD6.29 (USD0.81) as of 2 p.m. China time. Yesterday it dropped 6.25 percent.

The company delivered a stellar performance in the three months ended Sept. 30. Net profit somersaulted more than 11 times from the same period last year to HKD360 million (USD46.4 million), mainly driven by sales of its overseas brands and internet-based services, according to the firm’s third-quarter earnings report. Revenue was up 76.6 percent to HKD14.7 billion (USD1.9 billion).

Although the Chinese market was sluggish due to Covid-19, overseas markets, especially North America and Europe, achieved double-digit growth, Zhang Hong, research director of the TV business department at market analysis firm Sigmaintell Consulting, told Yicai Global.

Revenue from TCL Electronics’ internet-based

businesses, which include advertising, video and music subscriptions as well as educational and gaming content, jumped 62.1 percent in the third quarter to HKD260 million (USD33.5 million). Sales from its overseas brand TVs leapt 26.8 percent in the nine months ended Sept. 30 year on year to HKD12.83 million (USD1.6 million).

Despite the uncertainties brought about the pandemic and rising cost pressures, the company remains committed to achieving doubt-digit growth in revenue and profit in the fourth quarter, TCL Electronics said. It will continue to build on the artificial intelligence plus Internet of Things connectivity of its devices.

TCL Electronics has wrapped up its made-to-order TV business and from Sept. 1 is only manufacturing its own brand of TVs. In August it acquired the smartphone business from parent firm TCL Industries Holdings.

Global TV sales may drop 3.2 percent in 2021 year on year due to a number of advance purchases made this year and the sharp increase in display panel prices, Beijing-based Sigmaintell said.

Editor: Kim Taylor