TPV Technology, the world's largest personal computer monitor maker, said its joint venture with Royal Philips Electronics is likely to swing into the black by 2014 after breaking even this year.

The joint venture's operation so far is in line with expectations and the group's gross margin of the overall liquid crystal display television business has been lifted to 10.2 percent from 4.5 percent as products today are sold to end-users directly since its team-up with Philips in TV manufacture, according to TPV's Chairman Jason Hsuan.

The Taipei-based company, which is also the world's largest OEM manufacturers of LCD TVs, entered into an agreement with Philips last year to acquire the latter's 70 percent loss-making TV business. The acquisition cost was at a relatively low level, allowing TPV to use of Philips' brand, innovation as well as development capabilities and to develop its sales and distribution network, Hsuan indicated during the acquisition in 2011.

Indicating that the joint venture has basically reached break even point, however, the huge investment has nevertheless pushed TPV's financing cost to $2.18 million in the first nine months from $1.64 million a year earlier, Hsuan said during a media briefing in Hong Kong on Friday.

The Hong Kong-listed company posted a 5.8 percent profit decline in the nine months ended Sept 30 as its LCD TV and monitor shipments were dragged down by the weak global economic environment. Net profit during the period was $75.5 million, down from $80.1 million last year, despite its total income rising 2.5 percent to $8.4 billion during the first nine months this year, TPV told the city's stock exchange on Thursday.

In the third quarter alone, net profit was at $31.2 million, up 212.1 percent over $10 million in the same period last year, leading TPV shares to surge HK$0.26 or 15.1 percent to close at HK$1.98 on its Hong Kong trading on Friday. This compares with the 0.49 percent gain of the city's benchmark Hang Seng Index.

The group's gross profit margin increased by 2 percentage points to 8 percent from the previous 6 percent, while its net profit margin improved from 0.3 percent last year to 1 percent in the third quarter this year, according to the company.

TPV's LCD TV outputs ranked the fourth highest in the world during the first nine months, with a 7.2 percent market share after Samsung, LGE and TCL. Total LCD TV shipment through September this year, including those of its joint venture with Philips, was 9.15 million units, compared with 9.35 million units recorded for the same period last year.

With a market share of 35.7 percent in monitor shipment over the globe, the company also encountered a slowdown in its output this year due to "sluggish economy and delay in new operating system launch". Output of monitors in the first nine months was 42.1 million units, down 4.3 percent from 44 million units over the same period last year, TPV said in the statement.

litao@chinadailyhk.com