Chinese electronics and home appliances group TCL will invest CNY500 million to establish an equity investment fund.
TCL Group will work with its wholly-owned subsidiary TCL Venture Capital and Zhejiang Weixing New Building Materials Co., Ltd. to jointly set up the equity investment fund, with a target scale of CNY1.102 billion. Of that total, TCL Venture Capital will invest CNY500 million; Weixing New Building Materials will invest CNY500 million; individual investors Cai Xiao and He Zhihua will each invest CNY50 million; and Urumqi Dongpeng Chuangdong will invest CNY2 million.
The fund will reportedly focus on investments in upstream and downstream industries of TCL Group, upstream and downstream industries of Weixing New Building Materials, and also incorporate TMT, new energy, new materials, healthcare, and high-end devices. This includes a focus on Internet of Things and artificial intelligence, which are technology components important to future devices that TCL wants to sell to consumers.
This transaction does not constitute a connected transaction or a major asset restructuring, so the company says it does not need to be submitted to shareholders for approval.