TCL Group Was Sold Off By 155 Million Major Shareholders?

The TCL group's 15 deal seller came from CITIC Securities Limited by Share Ltd Shanghai Shanghai Min Lu securities business department, and the paction price of all 15 pactions was 4.16 yuan, which was 12% lower than its closing price 4.66 yuan yesterday.

Usually, a large number of selling on the block trading platform implies that the funds held in the stock market are not optimistic about the subsequent market situation. But from yesterday's TCL group's large purchase of institutional seats, does it indicate that the possibility of the low price volume of the stock market is even greater?

To answer this question, the most important thing is to figure out who sold the 155 million shares in the Shanghai securities business department of CITIC Securities Limited by Share Ltd in Shanghai.

From the company's annual report holdings, the company's top ten tradable shareholders include only the largest shareholder of the company, Huizhou Klc Holdings Ltd and the fourth largest tradable shareholder, Philips Electronics China B.V. (PHILPS Electronics China) holding 155 million of the shares sold yesterday. Among them, Huizhou investment holding shares 329 million shares, accounting for 11.73% of the circulation shares; PHILPS China holds 163 million shares, accounting for 5.81% of the shares in circulation.

However, from the perspective of internationalization of TCL group, the possibility of PHILPS's reduction in China is unlikely, probably the largest shareholder in Huizhou.

In fact, looking back on the development process of TCL group, we can see that Huizhou holding company has been continuously reducing shares of the company, but at the same time maintaining its status as the largest shareholder.

In 1997, the Huizhou municipal government began to authorize the operation of TCL to pform 100% of the state-controlled enterprises into a management holding company with more than 10% shareholdings. In April 2002, the TCL group introduced 5 strategic investors, including South Pacific Electronics, Toshiba, Sumitomo, Kingsoft and Pentel, and held 18.38% of Huizhou's shareholding ratio. The proportion of the controlling shareholding in Hong Kong fell from 40.97% to 40.97% in 2003 (PHILPS bought 4% in 2003).

At the beginning of 2004, the shareholding ratio of Huizhou holding company was further reduced to 25.22% after the listing as a whole, because the SFC had the regulations that "the largest shareholder of a listed company can not reduce shares within one year". The 147th provision of the company law also stipulates that the shares held by the sponsors shall not be pferred within 3 years from the establishment of the company (the TCL group was established in April 19, 2002), and the pace of withdrawal of the TCL group's state-owned shares temporarily slowed down.

After a series of changes in the stock, Huizhou holding shares fell further to 15.22%, and then fell to 9.8% in 2009 and keep this year.