HONG KONG, June 29 /PRNewswire-Asia/ -- TCL Multimedia Technology Holdings Limited ("TCL Multimedia", or the "Company", Stock code: 01070), a leading TV manufacturer in China, today is pleased to announce that the disposal of the equity interest in TCL Digital Science and Technology Wuxi Company Limited ("TCL Digital") for a consideration of RMB159 million (equivalent to about HK$180 million) has been completed on 26 June 2009. TCL Multimedia maintained strong operating cash flow; cash and bank balances as at 31 March 2009 was HK$ 2,065 Million. As part of the ongoing efforts in optimizing the Company's asset and business structure, the disposal provided satisfactory returns, and at the same time strengthened the Company's cash flow and financial positions.
As the completion of this disposal, the Company would recognize an unaudited gain of about RMB33.94 million (equivalent to about HK$38.47 million) in the second quarter of 2009. This disposal will bring in cash inflow of RMB159 million (equivalent to about HK$180 million). This transaction will not affect the production operation of the Company because the Company will sell and lease back approximately 58% of the total floor area (93,274 square meters) of the aforesaid properties.
Mr. LEONG Yue Wing, CEO of TCL Multimedia said, "TCL Multimedia's LCD TV shipments have grown 245% year-on-year in the PRC market from January to May 2009. Benefiting from policies including 'Household appliance subsidy scheme', 'Home Appliance Replacements Program' and 'Energy Efficient Appliances Promotion' in China, the Company's TV business will maintain its growth momentum. In response, we are planning to use the proceeds to further develop our LCD business. Our new LCD TV production plant in Huizhou is scheduled to commence full operation in September this year. This production plant is adjacent to TCL Corporation's LCD TV module plant which will help us reduce costs such as transportation and packaging cost, further improve our inventory turnover and strengthen the overall competitiveness. This close proximity will enable higher module-TV set design integration which will create larger value for the Company."
About TCL Multimedia
TCL Multimedia Technology Holdings Limited is one of the largest TV manufacturers globally and its products are sold all over the world. Headquartered in China, TCL Multimedia operates its manufacturing plants and R&D centres across all major continents. The Group's largest shareholder is TCL Corporation.
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Jane Liu
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PRChina
Henry Chik
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PRChina
David Shiu
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Email: dshiu@prchina.com.hk
