TCL corporation celebrates 35 year anniversary on IFA 2016, continuing its growth

Founded in 1981, TCL Corporation (SZ.000100) has now grown from a small local joint venture in China into a global corporation engaged in a wide range of businesses including telephones, TVs, mobile phones, refrigerators, washing machines, air-conditioners, smart health appliances and LCD panels, with a global presence in more than 160 countries and regions in the world.

TCL Corporation is a global manufacturer of smart products and provider of Internet application services. The wholly-listed TCL Corporation (000100. SZ) consists of TCL Multimedia (01070. HK), TCL Communication (02618. HK), TCL Display (00334. HK) and Tonly Electronics (01249. HK).

Founded in 1981, TCL runs businesses with a workforce of 75,000 employees, with offices in over 80 countries and regions across Asia, America, Europe and Oceania, along with 23 R&D centers and 21 manufacturing bases. TCL reported operating revenue of 46.68 billion yuan (approx. US$7.15 billion) for the first half year of 2015 and the brand value equal to 71 billion yuan (approx. US$10.86 billion), ranking first among the TV brands in China. In 2015, its revenue reached RMB 104.6 billion (US$ 15.86 billion), 47% of which were overseas earnings. In 2015, with a brand value of RMB 71.03 billion (US$ 10.77 billion), TCL ranked sixth among China’s Top 100 Brands, and was the first brand selected from the Chinese color TV industry over the past ten years.

The company came in 3rd in the world rank of the LCD TV market and 5th in the world in the mobile phone market. It is now part of the 10 largest tablet manufacturers.

Global Strategy

TCL Corporation, an enterprise of Chinese origins, is a pioneer in seeking global presence. Since its initial global exploration in 1999, it has undergone three stages of internationalization: early exploration, transnational merger and acquisition, and steady growth.

In November 2003, TCL took over the television manufacturing branch of France’s Thomson Group to form a joint venture, followed by Alcatel’s mobile phone branch within six months. In January 2013, it bought the naming rights for Grauman’s Chinese Theatre on the historic Hollywood Walk of Fame, making its official name “TCL Chinese Theatre”. In October 2014, TCL acquired the Palm brand from HP for use on smartphones. In addition, TCL has set up many production plants worldwide to facilitate its global expansion. In 2016, a new LCD TV plant will be built in Egypt as the Corporation’s outpost in the African and Middle Eastern markets, supplementing its Vietnam plant targeting the Southeastern Asian market, the Poland plant targeting the European market and the Mexico plant targeting the North American market.

In recent years, faced with the opportunities brought about by China’s “One Belt and One Road” initiative, TCL Corporation has re-developed its roadmap for once again advancing toward internationalization. In the next few years, TCL Corporation will continue to consolidate and improve its market share in Europe and America. Meanwhile, it will make breakthroughs in the key emerging markets including India and Brazil, take root in the local market, and establish competitiveness on the whole value chain. Internationalization is the new engine for the future development of TCL Corporation.

Technology & Innovation

Technological innovation is the quintessential element that helps retain TCL’s competitiveness. TCL Corporation has an Industrial Technology Research Institute, a Technology Center, as well as 23 R&D centers of subordinate industries, with over 5,300 researchers and experts. The Corporation’s investment in R&D has always been growing. In 2013, the budget for R&D was RMB 2.3 billion (US$ 350 million); in 2014, it was increased to RMB 3.9 billion (US$ 0.60 billion); in 2015, this figure reached 4 billion (US$ 0.61 billion).

Numerous researches are being conducted in various categories. In terms of the number of PCT patent application, TCL ranks the 3rd among all Chinese companies. TCL also prides itself on leveraging the latest technological and design trends to offer customers high-quality products with stylish design and premium user experience of great value.

Vertical Integration

TCL has a leading integrated vertical supply chain system and has already established a globalized production network with massive experience in R&D, purchase and production. In China, TCL is the only TV manufacturer in China with an integrated industry chain spanning “Panel-Module-Assembly” after it became the dominant shareholder of China Star Optoelectronics Technology (CSOT) in 2013. CSOT currently owns two Gen 8.5 and one Gen 6 LCD production lines, which can produce panels as large as 55", while the world’s largest Gen 11 line, which is in the plan, will be used to economically cut even larger-size displays, allowing TCL to take the lead in the large-sized TV market.The G11 Project will use oxide semiconductor, Cu process, POA, Super GOA technology, and OLED Printing technology to produce 43", 65", 70" (21:9), 75" LCD displays, ultra-large public displays as well as OLED displays. By synergizing upstream and downstream business units, TCL benefits from a vertically integrated supply chain that not only gives the company cost advantages over competitors, but also enhances the risk management capability to survive against industry’s periodical recessions.

TCL Corporation is one of the few global enterprises simultaneously among the top leading enterprises in multimedia, mobile communications and 8.5-generation LCD panels. The company will give full play to synergies in products, research and development and management of TCL Multimedia, TCL Communication and CSOT by integrating resources, and actively seek substantive breakthroughs in intelligent products, cloud computing and network technology applications, operating systems and application software and new display technologies, accelerating technological innovation to enhance the overall competitive advantage of the company in the international consumer electronics industry.

Looking Forward

TCL Corporation launched its “dual-wheel driving” development strategy: 1) establishing new business capabilities through “double+” transformation; 2) improving global business distribution and increasing the share of overseas market through internationalization. The purpose of the “Double +” strategy, i.e. “Intelligence + Internet” and “product + service”, is to transform carrier mobile users into TCL mobile Internet users, as well as to enhance the presence of its mobile Internet products in open market, by setting up mobile Internet applications and services platform. One of the important goals of “Double +” transformation strategy is to attain 100 million home users and 100 million mobile users and provide supreme services to its users in a sustainable manner. The core of “Double +” Strategy and the key of transformation is to establish the ability of serving and managing its users, and thus to establish service as business.

About TCL Corporation

TCL Corporation is a global manufacturer of smart products and provider of Internet application services. The wholly-listed TCL Corporation (000100. SZ) consists of TCL Multimedia (01070. HK), TCL Communication, TCL Display (00334. HK) and Tonly Electronics (01249. HK). Founded in 1981, TCL is a leading international manufacturer of smart products who believes there are boundless enjoyment in life yet to be discovered. In the past 35 years, TCL has empowered users globally to discover and create their own moments in life. As one of the first Chinese technology brands to enter overseas markets, TCL currently has 82,000 employees worldwide, across sales offices in over 80 countries, with businesses covering over 160 countries and regions across Asia, America, Europe and Oceania, along with 23 R&D centers and 21 manufacturing bases. As of 2015, TCL is the world’s 3rd largest TV manufacturer with 17.84 million units and has attained 5th position in the smartphone market with 83.55 million of shipment units globally, the company also recorded 48 % of revenue from overseas market the same year. As of 2015, TCL recorded USD11.17 billion of operating income, an increase of 4.83% and a net profit of USD 179.72 million, a Y-O-Y increase of 140.3%.

About TCL Electronics

Headquartered in China, TCL Multimedia Technology Holdings Limited (HKSE: 01070) is one of the leading players in the global TV industry, engaged in the research and development, manufacturing and distribution of consumer electronic products. Through a new product-and-user-oriented business model that focuses primarily on a “double +” strategy which includes “intelligence + Internet” and “products + services” as the main direction, striving to become a “global entertainment technology enterprise” that provides integrated entertainment solutions to customers.