Zhitong Finance App News, TCL Electronics (01070) issued an announcement. On July 15, 2026, the company entered into a sales agreement with the seller (NxThome, YF Rongye, Core Elite, Union Vast and Reach Glory). The seller agreed to sell and the company agreed to purchase the underlying shares (all shares of the target company TCL AeroWell (Cayman) Holdings Limited). The total cost is HK$5.61 billion. Payment is made by a combination of cash and consideration shares.
The target company is a limited liability company incorporated in the Cayman Islands. The target group is mainly engaged in the air conditioning system business. As of the date of this announcement, the target companies were NXtHome, YF Rongye, Core Elite, Union Vast and Reach Glory holding approximately 31.3725%, 28.0000%, 17.4118%, 16.2549%, and 6.9608%, respectively. The target company indirectly holds all of Guangdong TCL Air Conditioner Holdings Co., Ltd., while Guangdong TCL Air Conditioner Holdings Co., Ltd. holds 51% of TCL Air Conditioner's shares, and the remaining 49% of TCL Air Conditioner's shares are held by TCL Home Appliance Group Co., Ltd. (the company is a limited liability company established in China, and is also a wholly-owned subsidiary of TCL Industrial Holdings).
The target group is a large-scale integrated air conditioning enterprise integrating R&D, manufacturing and sales of household air conditioners, commercial air conditioners, mobile air conditioners and other related products. The target group's total sales volume of air conditioning products in 2025 will exceed 22 million units, ranking in the top two Chinese brands in terms of export shipments. The Group seizes industry development opportunities, vigorously promotes collaborative development of all categories and builds a more competitive product matrix with a “global” and “high-end” two-wheel drive strategy.
Although the Group maintains a world-leading position in the field of smart displays, the acquisition marks a key milestone in the company's overall corporate strategy of advancing the “all-category smart terminal layout”, establishing air conditioning as an important pillar in its expanded product portfolio. By deeply integrating the target group's mature air conditioning business with the company's existing display and smart terminal ecosystem, the expanded group will transform into an integrated multi-category smart home platform.
Crucially, the acquisition will achieve significant business scale expansion on a global scale and elevate the relationship between the Group and the target group from distribution cooperation to full value chain integration; through the expansion, the Group plans to seamlessly replicate and rapidly accelerate the international expansion and global market penetration of the acquired air conditioning assets through its long-established global sales network, localized operation capabilities, and retail channels all over the world. This strategic collaboration will enhance TCL's brand value and reinforce the Group's long-term global competitive advantage.
As the Group strategically advances the “layout of all categories of smart terminals” and accelerates the two-wheel strategy of “globalization” and “high-end”, the acquisition marks a key milestone. It is expected to unleash significant operational and business synergies in the Group's value chain and enhance the Group's overall competitiveness through the mature operating model and strong market position of the target group.
Furthermore, the acquisition is expected to generate positive financial benefits. The expanded Group is expected to have steady financial performance and enhance the expanded Group's revenue scale, profit level and financial resilience, thereby creating higher and more stable returns for shareholders. The directors believe that the acquisition is a very attractive strategic opportunity for the Group and is in the overall best interests of the Company and its shareholders.