Noted today, TCL Group issued a notice announcing that Xiaomi Group has officially invested in TCL Group. According to the announcement, on January 4, 2019, Xiaomi Group purchased 65,168,803 shares through the Shenzhen Stock Exchange’s secondary market, accounting for 0.48% of the company’s total share capital. TCL said that the acquisition will help deepen the cooperation between Xiaomi and TCL and build a closer strategic partnership.
Previously, on December 29, 2018, TCL Group signed a strategic cooperation agreement with Xiaomi Group. The two parties will carry out joint research and development on the integration of high-end basic sections of intelligent hardware and electronic reports core, and innovate the application of new gadget technology in the upcoming generation of intelligent hardware. In 2018, the home appliance business became a new growth point for Xiaomi Group. Xiaomi has not only became the With no 1 Smart TV brand in China, it Additionally entered other businesses this sort of as air conditioners and washing machines.
When the initially organizational restructuring of Xiaomi’s listing, the TV department was confirmed to be responsible for the TV business, while incubating fresh businesses these types of as air conditioners. At the exactly time, as a giant in the home appliance industry, TCL will adjust its strategy to focus on semiconductor display business, materials business, and emerging business. So, the 2 parties have shown Terrific complementarity in their business. Xiaomi has strong device definition, R&D and design capabilities, as effectively as advanced Internet thinking. TCL has a fairly rich provide chain and production experience and is highly competitive in the semiconductor screen business. According to public information, TCL’s Huaxing Optoelectronics TV display ranked fifth in the world in the first three quarters of 2018.
Market research firm IDC unveiled the report of India’s smart home market, exposing that in the third quarter, Xiaomi TV has surpassed Samsung to become India’s largest smart TV brand. This strategic cooperation with TCL will help Xiaomi become bigger and stronger in the field of household appliances. Chen Hang, the chief analyst of Southwest Securities, said that the marriage between the 2 parties will deliver Xiaomi TV, air conditioners, washing machines, and other household appliances continue to gain deliver advantages, that is, have a more stable deliver and they will Furthermore have diversified product advantages since of the deliver chain.