Li Dongsheng, Board Chairman of TCL Electronics, Spent Over
HONG KONG, Sept. 29, 2020 /PRNewswire/ -- TCL Electronics Holdings Limited ("TCL Electronics" or "the Company", HKSE stock code: 01070.HK) announced that its board chairman, Mr. Li Dongsheng, exercised his 3.46 million stock options of the Company on September 29 at a cost of HKD 15.10 million. The exercise prices of these stock options were HKD 4.4834 and HKD 3.3918 per share. Mr. Li Dongsheng's action signified his confidence about the prospects of the Company's business and his recognition of the Company's long-term investment value.
On July 28, 2020, the proposal of acquisition of TCL Communication and the spin-off of Moka International, in order to further develop the Company's AI x IoT strategy, was approved by TCL Electronics' shareholders with an overwhelming majority in the special general meeting. The deals were completed and financial statements of TCL Communication had been consolidated into the Company's, starting from September. TCL Electronics has spun off its ODM business and added new businesses including smartphones, smart tablets, smart wearables, and smart connections. At the meantime, the Company will wind up its Internet business and make inroads into market segments like smart home and smart commercial displays, which have a combined market size of over CNY 1 trillion.
According to Omdia data, the market share of TCL brand TVs by sales volume around the world grew to 12.7% in Q2 2020, up from 9.4% in the same period of last year and ranking second worldwide. In the first half year of 2020, the Company's revenue from the domestic Internet business rocketed by 197.7% year-on-year to HKD 397 million in the first half year of 2020 from HKD 133 million in the same period of 2019. In the first half year of 2020, the Company's revenue from the overseas Internet business increased by 29.0% year-on-year to HKD 124 million. The operating profit of overall Internet business in the first half of 2020 recorded HKD 223 million, surged by 130% year-on-year.
TCL Electronics states that its future development will focus on smart displays driven by 5G and AI x IoT. The Company aims to become a global leading smart tech firm by creating an all-scenario smart and healthy life for users. Once TCL Communication had been incorporated into the whole system of TCL Electronics in September 2020, the Company will strive to promote the TCL brand worldwide by making fully use of smart TV business and synergies from TCL Communication in terms of market coverage, branding, distribution channels, user bases, product technologies and finance. It is expected that TCL brand smart TVs and mobile communication devices will stand to gain more market share around the globe, and bring long-term sustainable growth and returns to shareholders.
About TCL Electronics
Headquartered in Shenzhen, China, TCL Electronics Holdings Limited (stock code: 01070.HK, incorporated in the Cayman Islands with limited liability) is engaged in the research and development, manufacturing and distribution of consumer electronic products such as smart TVs and mobile communication devices and Internet services by relying on TCL Technology Group's core technology advantages in the upper reach of the display industrial chain. TCL Electronics has emerged as a world-leading and China's only diversified consumer electronics platform with advantages of vertically integrated industrial chain. With smart display as the core of the strategy and 5G and "AI x IoT" as technology drivers, TCL Electronics provides users with a smart and healthy life with household, mobile and commercial scenarios and is devoted to becoming a world-leading smart technology company. According to the latest data of the globally authoritative OMDIA (the former IHS), the market share of global brand smart TV of TCL Electronics in the second quarter of 2020 jumped to second in the world. With leading positions in the domestic and overseas markets, the MAU and ARPU of TCL Electronics' home Internet operation platform (Falcon Network Technology) both ranked among the top in the PRC market. It has also emerged as the industry's only Chinese company with sustainable and large-scale revenue in the overseas Internet services. TCL Electronics is included in the eligible shares list of the Shenzhen-Hong Kong Stock Connect Scheme, Hang Seng Stock Connect Hong Kong Index, Hang Seng Composite MidCap & SmallCap Index and Hang Seng Corporate Sustainability Benchmark Index. For more information, please visit the website of investor relations of TCL Electronics: http://electronics.tcl.com.
SOURCE TCL Electronics Holdings Limited