(Yicai Global) April 29 -- TCL Technology Group’s semiconductor display-making unit expects to record double-digit growth this year, according to group Chairman Li Dongsheng, despite the parent firm suffering an almost 50 percent decline in net profit for the first quarter due to the Covid-19 pandemic.

TCL China Star Optoelectronics Technology managed to boost revenue by 25.3 percent to CNY9.1 billion (USD1.3 billion) from January through March, according TCL Tech’s earnings report published today. It narrowed its loss to CNY159 million (USD22.5 million) from CNY174 million in the fourth quarter of 2019.

The parent’s net profit for the same period dived 47.6 percent to CNY408 million as revenue slumped 53.6 percent to CNY13.7 billion, which it largely blamed on the virus outbreak.

Shares in TCL Tech [SHE:000100] still closed 2.1 percent higher at CNY4.32 (61 US cents).

CSOT’s Wuhan factory is basically back in full swing, Li said on April 27 in the city, the epicenter of the virus outbreak. He expects the plant will make up for the lost production in this quarter but that now will be the biggest slowdown for the display sector, with a recovery coming in the third quarter.

TCL was hit hard in China in the first quarter and overseas in the second, he added, saying that the pandemic will have only a temporary effect and competitive firms will come out swinging with greater long-term development opportunities. The outbreak resulted in better domestic supply chains for displays and the same will happen overseas, Li said, adding that the company plans to set up factories overseas in future, rather than just exporting finished goods.

Editor: James Boynton