Earlier 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 areas of intelligent hardware and electronic reports core, and innovate the application of fresh 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 Furthermore entered other businesses this kind of as air conditioners and washing machines.
When the first organizational restructuring of Xiaomi’s listing, the TV department was established to be responsible for the TV business, although incubating new businesses such as air conditioners. At the exact same time, as a giant in the home appliance industry, TCL will adjust its strategy to focus on semiconductor panel business, materials business, and emerging business. So, the 2 parties have shown pleasant complementarity in their business. Xiaomi has strong gadget definition, R&D and design capabilities, as nicely as advanced Internet thinking. TCL has a pretty rich provide chain and production experience and is highly competitive in the semiconductor display business. According to public data TCL’s Huaxing Optoelectronics TV panel ranked fifth in the world in the first three quarters of 2018.
Market research firm IDC released the report of India’s smart home market, revealing 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 larger and stronger in the field of household appliances. Chen Hang, the chief analyst of Southwest Securities, said that the marriage between the two parties will make Xiaomi TV, air conditioners, washing machines, and other household appliances continue to gain deliver advantages, that is, have a far more stable provide and they will Furthermore have diversified gadget advantages due to the fact of the provide chain.