Tcl buy back Huaxing photoelectric Li prepare for big panel

TCL Chairman Li (Tencent Technology map) TCL Chairman Li Board share repurchase plan has made substantial progress. May 2, TCL Group (SZ.000100) issued a delisting announcement, announced that with the deep Super Technology Investment Co., Ltd. (hereinafter referred to as: Deep Super Investment) on its hands held 30%-Star photoelectric shares signed the transfer of equity contract. Li's promise of early fulfillment means that the Shenzhen municipal government, which appears as the main investor in the early days of Huaxing's establishment, will withdraw completely, and the proportion of Li owned by the company will reach 85% this December. The repurchase of Huaxing's shares is only one small step in the Li panel plan. Only one buyer of the bid lasted two months, Tcl finally announced to the deep over the transfer of the 30%-star photovoltaic shares successfully picked up the card. The announcement indicated that TCL Group has signed the "Enterprise State-owned property transfer contract" with the deep super investment, has become the transferee of the stake bid. Tcl will be priced at more than 3.18 billion yuan in two period to buy back deep super pitchers hold 30% of the star photoelectric shares. As stipulated in the contract, TCL will be required to pay 50% of the transfer price by June 30, 2013, and the remaining half of the transfer shall be paid before December 15, 2013. In the 3 working days after the payment of all equity transfers, the two sides will handle the transfer of the 30% shareholding of Huaxing PV. In order to express the sincerity of repurchase, TCL announced that in the 10 working days after the signing of the contract, TCL Mansion will be mortgaged to Shenzhen as a guarantee for the first phase of the transfer, and to handle the relevant mortgage procedures. and agreed to pay the first issue of the 10 working days after the two sides to lift the above mortgage. According to the reporter understand, tcl building by TCL Group subsidiary Shenzhen TCL Industrial Research Co., Ltd. In fact, the bid is destined only tcl a buyer. Li has said that the repurchase of deep super investment held by the Chinese star photoelectric shares is TCL's original commitment. According to the reporter understands, the Hua Starlight Electricity by TCL Group and Deep Ultra investment at the end of 2009 joint venture establishes, the registered capital is 10 billion yuan, the project total investment 24.5 billion yuan. The two sides initially held 50% per cent of the shares, with the Shenzhen Super Investment will be 5% and 15% of the star photoelectric shares transferred to TCL Group and Samsung Electronics. At present, TCL Group, deep Super investment and Samsung Electronics Holdings of 55%, 30%, 15% of the shares. In the early days of the establishment of the huaxing photoelectric, the government investor status of the deep super cast on and Huaxing agreed to the exit time and price. According to reporters understand that the two sides agreed to put into production within five years by TCL for repurchase, the acquisition price is in accordance with the actual contribution of the shares of deep investment amount plus 2% of the annual return of the calculation. According to reporters familiar with huaxing photoelectric industry, the Shenzhen municipal government had used a deep super investment in China Star Photoelectric, is out of the solar panel to represent the industry support. Now Huaxing photoelectric operation is good, state-owned assets to preserve and add value has been achieved, exit is inevitable. Public data show that deep super investment for the Shenzhen state-funded Bureau of Direct Management Enterprises, after February 2011Transferred to Shenzhen Investment Holdings Limited to direct management of wholly-owned enterprises. Its main responsibility is to represent the Shenzhen government, support IC and new flat panel display industry development. It is clear that Li is now the best time to fulfill the promise. Li in the March 31 "It Leaders Summit" to explain the behavior of the repurchase of huaxing photovoltaic shares, said huaxing photovoltaic project launched at the beginning of the two sides agreed to buy back within five years, "but now huaxing photoelectric operation is good, we advance the implementation of commitments." "Li said the operation is good, the performance of huaxing photoelectric some understatement." April 25, TCL Group released a new quarterly show, TCL Group in the quarter to achieve operating income of 18.467 billion yuan, an increase of 27.31%, net profit reached 304 million yuan, a significant increase of 691.65%. TCL attributed its net profit growth of nearly 700% to the growth of Huaxing's performance. According to the bulletin, huaxing photovoltaic sales of LCD panels and module products Total 4.932 million pieces, to achieve sales revenue of 3.363 billion yuan, to achieve a net profit of 408 million yuan, of which the operating profit of 352 million yuan. Huaxing's good results in the first quarter led to a significant increase in its business share in Tcl to 18.21%. In the 2012 earnings, the figure was only 10.55%. The industry insiders to the reporter analysis said that the current domestic market for 32-inch panel demand is relatively strong, TCL adhere to the main pin 32-inch panel strategy, so that it in good quality rate, cost advantage. In fact, in addition to their own performance growth, Huaxing optoelectronics for TCL Group is the whole industry chain vertical integration of synergies. Li has said that the whole industry chain vertical integration brought about by the synergy is mainly reflected in two aspects: one is to stabilize the TCL Color TV machine LCD panel supply; The second is to improve the efficiency of new product technology development by integrating the driving chip directly on the next generation panel. At present, the most direct synergy effect of this kind of industry vertical integration is to pull the growth of multimedia business. In fact, this synergy has been partly reflected in the last year. According to the reporter understand, huaxing photovoltaic 50% capacity last year by TCL group digestion. 2012, TCL's LCD TV sales reached 15.53 million units, an increase of 43%. TCL Multimedia for this year set the sales target is 18 million units. The huge target of 18 million units in large size panels is clearly unlikely to depend solely on huaxing. The repurchase of huaxing 30% shares is only one small step in the Li panel plan. The industry insiders to the reporter analysis said, in Li take back 30% equity, most likely through the way of issuing debt financing, but also do not rule out the possibility of additional. "After the buy-back, Tcl will increase its shareholding to Huaxing to 85%, helping to boost Tcl's performance." But the market is expected to supply oversupply in 2014, the risk of TCL will increase in the long run, financing is the best way. "Li has also said that the future of China star photoelectric willIn the relative reduction of TCL Group shareholding ratio, the expansion of huaxing photoelectric LCD panel production line. Obviously, in the Li of the panel planning, Huaxing Optoelectronics is not only a 8.5-generation line. He has said that the existing 8.5-generation production line is not enough to cover the color TV, LCD display of all product size, in the future will consider the establishment of a more complete product line and expansion of capacity. According to the reporter understand, although huaxing photoelectric in the technology mature 32 inch panel market to maintain the cost advantage, however, the domestic market in Beijing-Orient, LGD, Panda and other enterprises in the 32-inch panel on the fierce competition has led to lower prices, the main production of 32-inch panel of Huaxing photoelectric will face an unprofitable situation. In fact, realizing that huaxing is too reliant on the 32-inch panel, Li has focused on larger-scale panels with higher profit margins and higher prices. Tcl's first-quarter announcement showed that Huaxing would increase its sales of 46-inch, 48-inch, 55-inch products in the future to achieve 18 million of this year's LCD TV sales. Li Yachen, head of intelligence consulting and research, said TCL's current 32-inch panel has fallen from 2012 per cent to about 70% of the 90%, while the 46-inch, 48-inch and 55-inch TV panels have also been produced. But it is clear that in large-scale panels, such as Samsung and Sharp, it is still unknown whether Tcl can snatch a lot of market share from these formidable rivals.