TCL Group plans to team with its two subsidiaries TCL Multimedia Technology Holdings Limited and TCL Communication Technology Holdings Limited to invest CNY90 million to create a joint venture in Hong Kong through which the group will build a foreign-invested company in China for the operation of smart home projects.
TCL Group and TCL Multimedia will hold a 30% stake in the joint venture respectively; while TCL Communication will hold a 40% stake.
The new project aims to integrate the emerging Internet of Things and service businesses to realize home monitoring, remote control, and smart services via apps. The company will meld software with hardware to create self-developed consumer-friendly devices to make homes smarter, safer, and easier to manage.
As subsidiaries of TCL Group, TCL Multimedia and TCL Communication are both listed on the Stock Exchange of Hong Kong. TCL Multimedia is mainly engaged in the manufacturing and sales of consumer electronic products and its major product is TV set. It is also the operating entity of TCL branded TVs. TCL Communication is specialized in the design, manufacturing and sales of mobile phones, smart devices, and Internet products. It is the operating entity of TCL and Alcatel branded mobile phones.
According to public files, TCL Multimedia sold 17.184 million LCD TVs in 2013, ranking the third in the world with 6.5% global market share. It also ranked the first in the Chinese market with 18.1% market share. At the same time, TCL Communication's mobile phone shipment reached 55.2 million units.