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TCL bets on LCD screens
By Pan Xiaoyi |
April 24, 2009, Friday
|
Online Edition
Online Edition
TCL Corp, the Chinese television and mobile phone maker, said today it has raised 904.55 million yuan (US$133.02 million) through private placement and the money will be invested in the production of liquid crystal display televisions.
TCL issued 350.6 million new shares at 2.58 yuan apiece to eight selected investors including its chairman, Li Dongsheng, it said in a statement to the Shenzhen Stock Exchange today.
The company had planned a share placement of 1.4 billion yuan in September to accelerate the expansion of LCD TV production. The rest of the investment will be replenished by the company's capital flows.
The company will spend 742 million yuan making LCD TVs with screens of up to 42 inches and 654 million yuan making TVs with screen sizes between 42 and 56 inches.
"The company's LCD television sales keep growing at a rapid rate, in line with the fast developing domestic LCD TV market. As the LCD sector is a shining spotlight in the company's business, the expansion of the production line is as good as cutting costs," said Wang Meng, an analyst from Guotai Junan Securities Co.
The company is aiming for eight LCD TV production assembly lines by the first quarter of 2010 including the two already established. Four will be completed this year and two will be added at the beginning of next year, it said in the statement.
Sales of LCD televisions around the world soared 233 percent to 4.18 million units in 2008 while CRT televisions saw sales fall 26 percent. The television business contributed 22.9 billion yuan - 60 percent - to the company's revenue last year.
But analysts also warned about risks as the competition within the LCD production market increases. Domestic TV makers such as Hisense have also established their own production lines and global flat panel makers have turned to China to compete for sales.
TCL Corp jumped by the 10 percent daily cap to 4.07 yuan today in Shenzhen trading, compared with an overall drop of 0.49 percent in the Shenzhen Composite Index.
TCL issued 350.6 million new shares at 2.58 yuan apiece to eight selected investors including its chairman, Li Dongsheng, it said in a statement to the Shenzhen Stock Exchange today.
The company had planned a share placement of 1.4 billion yuan in September to accelerate the expansion of LCD TV production. The rest of the investment will be replenished by the company's capital flows.
The company will spend 742 million yuan making LCD TVs with screens of up to 42 inches and 654 million yuan making TVs with screen sizes between 42 and 56 inches.
"The company's LCD television sales keep growing at a rapid rate, in line with the fast developing domestic LCD TV market. As the LCD sector is a shining spotlight in the company's business, the expansion of the production line is as good as cutting costs," said Wang Meng, an analyst from Guotai Junan Securities Co.
The company is aiming for eight LCD TV production assembly lines by the first quarter of 2010 including the two already established. Four will be completed this year and two will be added at the beginning of next year, it said in the statement.
Sales of LCD televisions around the world soared 233 percent to 4.18 million units in 2008 while CRT televisions saw sales fall 26 percent. The television business contributed 22.9 billion yuan - 60 percent - to the company's revenue last year.
But analysts also warned about risks as the competition within the LCD production market increases. Domestic TV makers such as Hisense have also established their own production lines and global flat panel makers have turned to China to compete for sales.
TCL Corp jumped by the 10 percent daily cap to 4.07 yuan today in Shenzhen trading, compared with an overall drop of 0.49 percent in the Shenzhen Composite Index.
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