Home appliances, electronics maker TCL's revenue slumps

Li's confidence comes from the company's booming business in the service sector. Revenue generated by services in the Internet, logistics and financial sectors hit 22 billion yuan last year, a growth of 20.4 percent that was much bigger than its growth in product sales, the annual report shows.

Li also predicted the semiconductor display industry will start to recover in the third quarter.

TCL made net profits of 3.23 billion yuan, which was 1 billion yuan less than that in 2014, according to the annual report.

CSOT Corp, a major TCL subsidiary that produces LCD panels, saw a drop in net profit by 364 million yuan last year, which was a major cause for the parent company's net profit decrease, said Huang Xubin, chief financial officer of TCL.

Liang Zhenpeng, a consumer electronics analyst, said that manufacturers of LCD panels in China still face the problem of overcapacity given that market demand for TVs may remain weak this year.

"I'm not optimistic about TCL's net profits in 2016 because the net profits generated by CSOT may keep falling," Liang said.

"However, TCL still performed better than many Chinese TV makers in 2015, making profits while many others suffered losses," he said.

"CSOT is a big source of profits for TCL as LCD panel represent about 70 percent of the value of a TV set. And it is wise for TCL to enter the upper reaches of the industry, which has given it an edge over its competitors."