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EQS-News / 30/11/2017 / 17:55 UTC+8
*TCL Multimedia Establishes Joint Venture with Leading Argentine Home
Appliance Brand RV*
* * *
*Set Foot in Argentina to Increase Market Share and Further Enhance Presence
in South American Market*
(30 November 2017, Hong Kong) *TCL Multimedia Technology Holdings Limited*
("TCL Multimedia" or the "Group", HKSE stock code: 01070.HK) announced that
TCL Argentina, an indirect wholly-owned subsidiary of the Group, has entered
into a subscription agreement with RV, one of Argentina's largest consumer
electronics and home appliance manufacturers and distributors. According to
the agreement, TCL Argentina will establish a joint venture ("JV") with RV,
and will own 15% equity in the JV. The move aims to consolidate its industry
position and increase the competitiveness in the market by utilising the
synergies and complementation of the JV.
RV is one of the top three brands in the consumer electronics and home
appliance industry in Argentina, and possess the capabilities of research
and development, manufacture, retail, as well as brand operations for
various top international brands. RV has been in the consumer electronics
and home appliance industry for 70 years and has performed well in terms of
market competition and profitability in the recent decade. It has a very
strong manufacturing base in Tierra del Fuego, a tax-free zone in the south
of Argentina, which allows it to enjoy a variety of tax benefits. As TCL's
representative in Argentina, RV has been a strategic partner to TCL since
2004, producing and distributing TCL-branded TV, mobile phones, A/C, and
refrigerators in the country.
*Mr. Michael Wang, Chief Financial Officer of TCL Multimedia*, said,
"Argentina, as an important market in South America, has a certain brand
influence over its neighbour countries, such as the Republic of Chile, the
Republic of Peru and the Republic of Colombia. It also has big growth
potential in the consumer electronics and home appliance business. RV is the
exclusive TCL brand agent for TCL Multimedia in Argentina. Both of us have
cooperated in the areas of resources complementation and strategic
coordination, which allows the TCL brand to grow fast in Argentina in the
past decade, laying a good foundation for cooperation in the establishment
of the JV. As RV enjoys extensive sales and after sales network across
Argentina, the JV will enable us to set foot in the local market and lower
the taxation costs so as to expand our exposure and market share in
Argentina, thereby increasing our presence in the South American market in
the near future."
Commenting on the strategic cooperation, *Mr. Enrique Benjamin Jurkowski,
Chairman of RV* expressed, "We have been in long-standing and close
partnership with TCL and are glad to deepen our relationship through the
establishment of the JV. At present, TCL is one of the top three global TV
manufacturers and the only vertically integrated multimedia enterprise in
China that boasts the manufacturing of display panels, modules and chips as
well as product assembly under the same roof with leading market position.
We look forward to establishing closer partnership with TCL and believe the
cooperation will help strengthen our market share and achieve potential
growth, therefore bringing mutual benefits and win-win results."
The Group has announced the financing plan by rights issue and the proposed
change of the company name to diversify its business, implement smart
manufacturing, and upgrade its products. It is an effort to realise its
vision to become a leading integrated brand of consumer and household
electronic products. As a reflection of its business and product development
strategies, the JV will strengthen and expand the group's global
distribution network, so as to further enhance its market competitiveness
and stay at the forefront of the industry.
Mr. Michael Wang, CFO and Executive Director of TCL Multimedia (2nd right)
and senior management of RV joined the JV signing ceremony
-End-
*About TCL Multimedia*
Headquartered in China, TCL Multimedia Technology Holdings Limited (HKSE
stock code: 01070) is one of the leading players in the global TV industry,
engaging 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, it strives to build a comprehensive ecosystem for smart TVs that
provides users with an exquisite experience with its smart products and
services. The Group ranked No.3 in the global LCD TV market with a market
share of 7.1% in the first half of 2017 according to the latest IHS
Technology figures, and ranked No.3 in the PRC LCD TV market with a market
share of 13.6% in the first three quarters of 2017 according to CMM's
report. The Group is included in the eligible shares list of the
Shenzhen-Hong Kong Stock Connect. For more information, please visit its
website: http://multimedia.tcl.com.
*About RV*
Founded in 1947, RV is one of the largest consumer electronics and home
appliance manufacturer and distribution companies in Argentina. RV's product
range covers light-emitting diode (LED) TV and Audio, A/C, refrigerator,
cell phones, computer tablets, microwave oven, and electronics accessories
etc. RV has established its headquarter, distribution centre, after sales
service centre, and a factory in Argentina. It has more than 2,000
cooperated retail channels and its after-sales service network covers all
over Argentina. RV established a presence in the Republic of Chile in 2008
and began operations in other countries in South America.
Document: http://n.eqs.com/c/fncls.ssp?u=FKOHYVMIMI [1]
Document title: TCL_Project Argentina_PR_Eng_20171130 Final
30/11/2017 Dissemination of a Financial Press Release, transmitted by EQS
Group.
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(END) Dow Jones Newswires
November 30, 2017 04:56 ET (09:56 GMT)
