According to the announcement, this share purchase is an internal reorganization of the company. It does not involve related-party transactions, nor does it constitute a major asset reorganization as stipulated in the Administrative Measures for Major Asset Restructuring of Listed Companies. It does not need to be submitted to the company's board of directors for review.
According to the TCL Group's announced capital structure adjustment plan, the company will gradually spin off the consumer electronics terminal business to the Hong Kong TCL Multimedia listed company platform, increase its business scale and profitability, and create an international TCL brand electronic terminal industry group. Reorganization is an important step in the implementation of the above plan. Subsequently, the company will gradually split its home appliance business to TCL Multimedia, and TCL Group will become the capital market platform with Huaxing Semiconductor Display as its core business.
In 2017, TCL Group purchased assets through the issuance of shares, and the company actually completed its wholly-owned shareholding in Shenzhen Huaxing Optoelectronics. At the same time, Huaxing Optoelectronics completed Huaxian Optoelectronics Co., Ltd., which is a medium and small-sized TFT-LCD/OLED display module business, in June 2017. The acquisition, together with the company's Guangdong Juhua, which is engaged in the research and development of key technologies for printing and flexible displays, and Huarui Optoelectronics, which is engaged in the development of key OLED materials for its own IP, jointly built the vertical integration of the semiconductor display industry chain with Huaxing Optoelectronics as its core. New display technologies and materials for driving the semiconductor display industry ecosystem.
The re-targeted TCL commercial information is targeted at smart business information technology products and industry solution providers, occupying a leading position in smart hotels, information release and security monitoring. After TCL Multimedia acquires 100% of TCL's commercial information, TCL's commercial information The company's holding subsidiary will become a holding subsidiary of TCL Multimedia.
TCL Commercial Information mainly provides commercial customers with software, content, integrated solutions and one-stop services for smart products. TCL Multimedia is mainly engaged in the production and sale of TV products and provides home users with value-added services for the Internet. Through this service integration Can fully realize the mutual complementarity and collaboration of the two sides in R&D and design, manufacturing and manufacturing, supply chain management, sales channels and brand promotion, and promote TCL multimedia based on the large-screen operation ecosystem to achieve business from home scenarios to home and pan-commercial scenarios. Integration and development; further feedback and promotion of the overall competitive advantage of TCL Group's semiconductor display industry.
The TCL Group's Board of Directors believes that the acquisition will increase the company's revenue from software and services; allow the company to quickly enter the B2B industry with high growth potential; and generate a huge synergy after the acquisition, which will help create additional value for shareholders.