(Hong Kong, 7 January, 2019) – Xiaomi Corporation (“Xiaomi” or the “Group”; stock code: 1810), an internet company with smartphones and smart hardware connected by an Internet of Things (IoT) platform at its core, announced that the Group bought 65,168,803 shares, or 0.48 percent, of TCL Corporation (“TCL Corp.”, SZSE: 000100) from Shenzhen Stock Exchange’s secondary market on January 4.
On December 29, 2018, Xiaomi signed a strategic cooperation agreement with TCL Corp. to carry out joint research and development on the integration of high-end basic components of intelligent hardware and electronic information core. The agreement also means both parties will innovate the application of new device technology in the next generation of intelligent hardware, to establish cooperation and joint investment in the core, high-end and fundamental technology fields in order to constantly improve Xiaomi’s global customer experience. Besides, Xiaomi is interested in forming a strategic cooperation with TCL Corp. on core, high-end and fundamental technology fields at a capital level.
Xiaomi Founder, Chairman and CEO Mr. Lei Jun said, “I would like to express my admiration for Mr. Li Dongsheng, the Chairman of TCL Corp., because under his leadership, TCL has flourished and is now one of the world’s leading enterprises in technological innovation and operational efficiency. The acquisition of TCL’s shares and the strategic cooperation with TCL in various fields, including joint research and development and supply chains, are highly beneficial to Xiaomi’s further exploration and growth in its home appliance business. In 2019, Xiaomi is determined to introduce amazing home appliances that are honestly priced.”
TCL Corp. said, “Xiaomi’s investment in our shares will strengthen the collaboration between the two companies, and therefore help to build a closer strategic partnership. The two companies have shown a strong complementarity in their business. We believe Xiaomi’s strong product development and superior R&D capabilities, combined with our rich supply chain and production experience, will form a strong industrial synergy effect. Therefore, we can jointly promote the rapid growth of China’s smart home appliance industry and expand into the global market.”
In 2018, the home appliance business was a new growth engine for Xiaomi. Xiaomi TV became China’s largest smart TV brand in 2018, and its global sales increased by more than 350% year-on-year, according to its Q2 results. After the first organizational restructuring of Xiaomi’s listing, the TV division was established. Also, Xiaomi plans to enter the white goods market by adding new product lines, namely air conditioners and washing machines to its portfolio. At the same time, Xiaomi’s overseas home appliance business enjoyed a major achievement. Market research firm IDC released a report on India’s smart home market, showing that in the third quarter, Xiaomi TV had surpassed Samsung to become India’s largest smart TV brand.
Meanwhile, as a giant in the home appliance industry, TCL will shift its focus to semi-conductor displays, materials and emerging businesses, according to its strategic adjustment announced earlier. TCL possesses a very rich supply chain and has extensive production experience. Its Huaxing Optoelectronics TV panel ranked fifth in the world in the first three quarters of 2018.
– End –
About Xiaomi Corporation
Xiaomi Corporation was founded in April 2010 and listed on the Main Board of the Hong Kong Stock Exchange on July 9, 2018 (1810.HK). Xiaomi is an internet company with smartphones and smart hardware connected by an IoT platform at its core. With the vision of being friends with its users and being the “coolest company” in the hearts of its users, Xiaomi is committed to continuous innovation, with an unwavering focus on quality and efficiency. The company relentlessly builds amazing products with honest prices to let everyone in the world enjoy a better life through innovative technology. Xiaomi is currently the world’s fourth-largest smartphone brand, and has established the world’s largest consumer IoT platform, with more than 132 million smart devices (excluding smartphones and laptops) connected to its platform. Currently, Xiaomi products are present in more than 70 countries and regions around the world and have a leading foothold in many markets.