Recently, TCL Multimedia Technology Holdings Limited (01070, hereinafter referred to as 'TCL Multimedia') announced that the Board intends to change the company name from 'TCL Multimedia Technology Holdings Limited' to 'TCL Electronic Holdings Limited' in order to better Reflect the business expansion of TCL Multimedia.
At the same time, TCL Multimedia intends to raise over 2 billion Hong Kong dollars in the form of "three for one" to deploy funds for future expansion plans, of which about 350 million Hong Kong dollars will be used to implement the first phase of Tonghu project, about 750 million Hong Kong dollars will be used In the future, joint ventures and mergers and acquisitions opportunities.
In order to further consolidate the color TV business and speed up globalization, TCL's rights issue can be described as 'one stone, two birds.' In the first three quarters of 2017, with the raw material cost advantage given by Huaxing Optoelectronics, TCL Multimedia achieved contrarian growth and overseas markets also became its overall An important source of revenue.
However, with the fourth quarter panel price callback, there are doubts that the advantages of TCL may be greatly reduced.In response, TCL multimedia finance and investor relations director Yin Guoting responded to reporters, 'Our cooperation with China Star Optoelectronics Is closely related to the channel reported to the machine price, while China Star also reported to us the price of the panel, the cost is locked, so do not worry about price fluctuations will bring the risk.
He also disclosed that TCL is optimistic about overseas emerging markets and will continue to set up a new joint venture in overseas markets. "Currently TCL is negotiating with a number of enterprises for cooperation projects, but whether concrete talks and when announced Not sure yet.
'Three for one' raised more than 2 billion Hong Kong dollars
It is understood that the vision of TCL Multimedia has always been to become a leading integrated consumer and home appliance product brand, by enhancing its existing TV business and increase product diversity to enhance the advantage.November 28, TCL multimedia announcement that the Board proposed Change company name to 'TCL Electronic Holdings Limited'.
India's court told reporters that this is to better reflect the TCL multimedia business expansion. 'The future of TCL Group's multi-end product business will gradually integrate into the platform of listed companies in Hong Kong, but' TCL Multimedia 'reflects only a single television service , While 'TCL Electronics' just means product diversification, such as consumer electronics.'
'This is beneficial for TCL Multimedia to improve its performance.' "Zhang Yanbin, senior consultant for Alvarion Cloud Network, said:" The so-called TCL Multimedia enhances product diversity by actually increasing the category of white goods while white is more profitable than Black.
Industry observer Hong Shibin believes that TCL multimedia layout in advance to seek steady growth in future sales. 'As the technology development, upgrading too fast, TCL Multimedia to expand product line is imperative.'
Renamed at the same time, TCL Multimedia is still in the announcement that the company intends to be held on the record date of 3 shares for every one held 1 share and the subscription price of HK $ 3.46 per share subscription price of not less than 582253403 Rights Shares and a Rights Issue of not more than 596378593 Rights Shares, raise not less than approximately HK $ 2,014.6 million and not more than approximately HK $ 2,063.5 million.
As for the net proceeds from the Rights Issue, TCL Multimedia will use approximately HK $ 750 million for future joint ventures and mergers and acquisitions, of which approximately 350 million will be used for production synergies with Huaxing Power and 350 million Canadian dollars Large R & D investment, which focuses on the panel and intelligent display terminal development.
TV market as a whole downturn
It is worth noting that the "Lake Tong project" referred to in the plan is the TCL Group's intelligent display terminal and assembly project, which will form the integrated intelligent manufacturing industrial base of the module with Huaxing High-generation Panel Module Project 'Tong Lake base').
"This will allow seamless integration of the TV's 'panel-core-terminal' production process, linking TCL Group with Huaxing's supply chain system and integrating data from the entire process to provide solutions for ongoing production optimization. TCL Multimedia emphasized in the announcement.
Now, with the TCL multimedia fund-raising advance, Tung Lake project accelerated landing, which also means that TCL Group and Huaxing Power synergy will be further strengthened.In fact, TCL Group behind this action, or with Huaxing Photoelectric Performance is closely related.
According to the "Summary report on China's color TV market in the third quarter of 2017" released by AVC recently, the retail sales volume of the domestic color TV market in the first three quarters of 2017 was 10.41 million units, down 12.9% from the same period of last year and the overall situation was rather sluggish. TCL Group, which sold 16.476 million sets of LCD TVs in the same period, up 10.5% from the same period of previous year, and its sales in China dropped about 10.1% YoY, outperforming the industry average.
In the view of Indochina, through the cooperation with Huaxing Optoelectronics, TCL Group can get adequate and tailor-made LCD panel supply timely while improving product quality and cost control.
For the decline in color TV market, India's court explained to reporters that 'in recent years the domestic market has indeed fluctuated, especially in 2015, some Internet companies hit the market with low prices, content subsidy hardware, ahead of consumption of the 2016 market share The Indian court predicts that in 2017, 2018 will be better overall.
However, in the context of the expansion of major panel makers, TV panel prices began to decline from June.IHS international market research firm data show that in October panel prices are still in the downlink channel, especially the 40-inch and 43-inch, The maximum decline rate reached 7%, while the larger 55-inch and 65-inch panel prices, or even lower than the lowest price in the second quarter of last year even lower.
Panel prices down or bring some impact to the enterprise, but India believes that the Court, and China Star Optoelectronics good synergies enough to cope with market fluctuations.
Accelerate the sea
Despite the year-on-year decline in sales of LCD TVs in TCL Multimedia's domestic market in the first three quarters, the growth momentum in overseas markets continued to grow.Data show that in the first three quarters of 2017, the sales volume of LCD TVs in TCL Multimedia Overseas markets increased by approximately 29.5% YoY to approximately Turnover increased by approximately 45.7% YoY to approximately HK $ 14.79 billion, of which sales in North America and emerging markets increased by approximately 97.4% and 22.8%, respectively, as compared with the same period last year.
TCL in recent years, with frequent layout of overseas are not unrelated .Therefore, TCL respectively in Southeast Asia, Europe, North and Central America, South America, the Middle East and Africa markets have a stronghold.In Brazil, for example, in July 2016, TCL Group and Brazil SEMP announced the establishment of a joint venture.
Just recently, TCL Multimedia together with the Argentine appliance giant RADIO VICTORIA (hereinafter referred to as 'RV') was formally signed a joint venture company, the total investment of the two sides to 150 million US dollars, will be engaged in television, air conditioners, cell phones and small appliances and other products production and Distribution.
'TCL has a leading technology beyond the reach of the RV and its Huaxing Power, a screen manufacturer, can also bring a supply chain advantage to the joint venture, while RV provides a more favorable production and sales channel for TCL.' ' Said.
According to TCL Multimedia, about 750 million Hong Kong dollars raised from the fund-raising will be used for future joint-venture and M & A opportunities, and India's court told reporters that this fund may still be used to establish joint ventures in overseas markets, especially in emerging markets. Emerging overseas markets have great potential. As the economic conditions in some countries improve, their market demand will gradually be released.
At present, the majority of TV products in emerging markets are dominated by small screens and 2K screens, and 4K will surely dominate the big screens in the next wave of replacement, while consumers still need lower prices, which is exactly what Is the biggest advantage of Chinese enterprises. 'India said the court, at present TCL has been negotiating cooperation projects with a number of enterprises, but whether the specific talks, when the announcement has not yet been determined.