[photopress:WEBCAM___vw_80r.jpg,full,alignright]TCL makes all sort of things including some quite delightful small camcorders (one shown in our illustration which is a cute as a button.) Other products on its list are domestic television sets, mobile phones and PCs. Now it may list its personal computer unit to raise much-needed capital.
China Business News said Shenzhen-listed TCL hopes to make a profit this year, after which it will apply for a listing of the PC unit.
TCL is still reorganizing the share structure of its PC unit and may bring in overseas investors in preparation for a listing.
TCL said in March that it was confident the company and its two Hong Kong-listed subsidiaries, TCL Communication Technology Holdings and TCL Multimedia Technology Holdings, will post a profit this year.
About time. TCL said in April that it had recorded an RMB 1.01 billion ($133 million) loss in 2006, related to TCL Multimedia’s restructuring of its European television business.
TCL said it returned to the black in the first quarter of this year by cutting costs, which improved profit margins, although it still posted a loss on an operating basis of RMB21.89 million in the quarter.
TCL also said two weeks ago that it planned to issue additional shares to raise up to RMB2.3 billion to fund the production of liquid crystal display panels. A summary would be that now it seems to be getting it right it wants money to expand.
Latest news is TCL says it does not plan to list its personal computer business.
Last week’s new was sort of true when China Business News quoted an unnamed TCL executive as saying the company would apply for a stock market listing for its PC unit, and might also bring in outside investors. But TCL has released a brief statement. It says the general manager of its PC unit did indeed talk to the newspaper but the report was not entirely accurate. Isn’t that always the way?
However, TCL says it’s still not ruling out moves to bring in foreign investment. I just thing the general manager was being a bit previous. It will happen. Watch for an official announcement in the near future.
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