TCL Electronics Holdings Limited announced today that it would be acquiring a 100 percent stake in TCL Communication Technology Holdings Limited, which is a fully-owned subsidiary of TCL Industries Holdings Co., Ltd. with a consideration of CNY 1.5 billion paid in cash. The deals will net the Company CNY 1 billion in cash, which will help further grow market share of the TCL brand business, increase R&D investment in “AI x IoT” and expand value-added service in Internet business, in addition to a focus placed on the Company’s smart commercial display business.
“These transactions allow us to further the acceleration of implementing ‘AI x IoT’ strategy with smart displays as the core” said Kevin Wang, CEO of TCL Electronics. “This enables us extend our smart scenarios from home to outdoor mobile environments, adding commercial settings as well, to offer our customers a complete smart ecosystem.”
Wang added: “With leading 2G-5G technologies and numerous patents, TCL Communications will enhance TCL Electronics’ leading advantages in branded TV product technology, help it to achieve the premium audio and video experience, and become a “Large-screen Sound and Picture Expert that Understand you”. Its outstanding 5G radio frequency technology, software operating system, smart camera, and video technology, edge computing, intelligent connection, and sensor application technology will further advance the leading position of the Company’s brand TV business in the world. With TV’s intelligence and interactive capabilities greatly improved, the large-screen value-added service categories have also expanded from traditional videos and advertising services to online education, AI fitness, remote eldercare, large-screen home e-commerce services, etc., which are going to explore the brand new field of Internet value-added services.
In addition, TCL Communication’s mobile phone business has leading advantages in the overseas markets, meanwhile, TCL Electronics’ overseas brand-TV business has a better growth rate among peers. The two companies will have great synergies in sales channels, brand promotion, and user services. What’s more, the Company is expected to be fully benefited from the global trend of buying 5G mobile phones, thus 5G+8K will become an important engine for the Company’s future business growth.”
TCL Electronics is the only Chinese enterprise in the industry with a unique cutting edge in vertical integration. It has synergies with CSOT and advanced display technologies such as QLED, Mini LED, and 8K. According to its annual results for the year ended 31 December 2019, the sales volume of TCL brand TV increased by 16.5 percent year-on-year to 20.64 million sets, with its market share ranking third in the global TV market.