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TCL Multimedia Establishes Joint Venture with Leading Argentine Home Appliance Brand RV

TCL Multimedia Technology Holdings Limited
2017-11-30 19:15 1966

Set Foot in Argentina to Increase Market Share and Further Enhance Presence in South American Market

HONG KONG, Nov. 30, 2017 /PRNewswire/ -- 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.

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.

Photo - http://mma.prnewswire.com/media/613209/TCL_Multimedia_RV.jpg

Source: TCL Multimedia Technology Holdings Limited
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