TCL Multimedia Technology Holdings Ltd. provided preliminary earnings guidance for the three months and nine months ended 30 September 2015. The Group is expected to incur losses for the three months and nine months ended 30 September 2015 as compared to the profits recorded for the three months and nine months ended 30 September 2014. Based on the information currently available, the main reasons for the expected losses during the relevant periods were as follows: the overall drop in the retail sales volume and selling prices of flat panel TVs in the PRC market.

According to the report from a market research company, China Market Monitor Co. Ltd., the overall retail sales volume of flat panel TVs this year in the PRC up to 27 September 2015 experienced a year-on-year drop by 14%. Under the circumstance that the overall market volume decreased, the Group adopted a more proactive competitive strategy to cope with market competitions, which nonetheless caused a drop in gross profit margin; and (b) the depreciation of Renminbi against US dollars, which led to exchange losses and increase in costs.