How To Make A Spark With TCL?

On the evening of July 15, TCL Technology (000100. SZ) announced that it had become the ultimate transferee of 100% equity transfer of Tianjin Zhonghuan Electronic Information Group Co., Ltd. Earlier, on June 23, TCL technology announced that it planned to spend 10.974 billion yuan to participate in the public delisting and purchase 100% equity of central group.

After TCL technology delisted the 10 billion yuan mixed transformation project of Tianjin state-owned enterprise Zhonghuan group, how the industries of both sides create sparks has become the focus of the market.

In this bidding, the transferee needs to face many indicators such as the price of property rights transfer, industrial layout arrangement in Tianjin, industrial cooperation and so on. At the end of the day, the reporter had a better understanding of TCL's competitors in the 21st century. However, TCL technology was finally used in this project, indicating that a number of weights from industrial integration played a significant role.

As far as TCL technology is concerned, the successful bidding for the 10 billion yuan mixed transformation assets of China Central Group will give it a fast forward key in the layout of the semiconductor industry; for the central group, the support from private industrial capital is expected to enhance the company's management initiative, innovation enthusiasm and stimulated Marketization.

An industry person who did not want to be named told the 21st century economic report that the next operation plan of TCL technology will involve capital injection, asset operation and equity commitment. What kind of "chemical reaction" will eventually happen between the two sides is worth looking forward to.

TCL's "Tianjin past"

In the evening of June this year, TCL will be the winner of the project. If it was not for the last-minute explosion of IDG led Consortium "black horse", TCL technology's bidding would be very smooth.

The appraisal group of China Central Group's mixed reform project has set a number of weight indicators for the prospective bidders participating in the bidding: property right transfer price (51 points), industrial layout arrangement in Tianjin (11 points), industrial cooperation (9 points), industry management experience (7 points), capital strength (5 points), company scale (5 points), operation and management system (4 points), ensuring staff stability (4 points), and historical legacy Problem solving (4 points), but under each weight index, TCL technology has almost no short board.

In fact, one of the reasons why the outside world is optimistic about the delisting of TCL technology is also related to the indissoluble bond between the company and Tianjin. This includes: in recent years, TCL technology has continued to increase its layout in Tianjin, signing a comprehensive strategic cooperation framework agreement with the Tianjin municipal government, settling the northern business headquarters in Tianjin, and accumulating an investment of 1.3 billion yuan in Tianjin.

TCL and Tianjin's "past" began ten years ago.

In 2009, TCL Aobo (Tianjin) Environmental Protection Development Co., Ltd. was established. The company, with a registered capital of 150 million yuan, is a waste electrical and electronic products recycling base established by TCL in the north. It has the production line with the largest investment and the most advanced technology among the domestic home appliance recycling projects. This is a representative investment of TCL in Tianjin.

Six years later, he participated in the system reform of 712, an old state-owned enterprise in Tianjin, which further closed the relationship between TCL and Tianjin.

In February and August 2015, TCL technology successively transferred 10.84% and 11.07% shares of 712 company with total consideration of 276 million yuan and 282 million yuan respectively. And this investment has also brought huge profits to TCL. By the end of the first quarter of this year, the market value of 712 company held by TCL technology was 3.534 billion yuan.

In April this year, Li Dongsheng set foot in Tianjin, trying to push bilateral cooperation into a new field.

Li Dongsheng, who praised the business environment in Tianjin, soon released a new investment signal: TCL will combine the development opportunities of Tianjin with its own advantages, focus on intelligent manufacturing and industrial Internet in Tianjin, serve the northern region and radiate the whole country with Tianjin as the fulcrum, continuously strengthen the research and development of artificial intelligence software and hardware, and focus on the development of cloud computing, big data and other innovative businesses. In addition, it has also disclosed that China capital and Tianjin Hi Tech Co., Ltd. will jointly set up investment funds in the fields of intelligent circuit industry transformation, such as Tianjin Intelligent Circuit Industry Transformation Fund, etc.

Tianjin Qixin Technology Co., Ltd. was founded in March this year. The main business scope of the company involves technology transfer, intelligent basic manufacturing equipment sales, etc.

It is worth mentioning that before the listing of central group, TCL technology was reported to want to acquire Zhonghuan shares and the equity of Tianjin prin.

Reporter of 21st century economic report noted that Liao Qian, executive director and vice president of TCL technology, said in a recent media interview that "in the whole semiconductor industry, the China Environmental Protection Council is a very important grasp and strategic control point for our layout".

"The semiconductor assets of Zhonghuan group will become an important cornerstone for TCL technology to develop the semiconductor industry." According to their understanding, TCL technology will operate in terms of capital, assets and equity.

"Chemical reaction" of 10 billion yuan acquisition

Recently, some media reports reported that TCL technology's hybrid reform plan includes the commitment of the company to inject 2 billion yuan a year to help China Central strengthen the development of semiconductor and solar energy industries, to inject its high-quality semiconductor and photovoltaic industry chain into relevant listed companies, and to not reduce its shareholding in Listed Companies in the next three years.

The 21st century economic reporter contacted the TCL science and technology office, and its staff responded that everything was subject to the announcement. However, the details of TCL's investment in science and technology in the 21st century are not close to the confirmation of TCL's investment in science and technology in the next three years.

After the restructuring in 2019, TCL technology's main business has become a panel. According to some analysts, as a leading supplier of semiconductor display in China, TCL Huaxing, a subsidiary of TCL technology, will gradually control the pricing power of LCD panel prices in the future.

As for TCL technology, among the core assets of the central group acquired in this bidding, Tianjin prin, whose main business is printed circuit board, has a close industrial linkage with TCL technology. Minsheng Securities believes that TCL technology's participation in this mixed reform will help its strategic layout in semiconductor materials, wireless communication and other fields.

However, although it is also in the semiconductor field, Zhonghuan shares, another core asset of Zhonghuan group, is not directly related to TCL technology. There is a lack of direct transition between TCL technology, which focuses on panel business, and Zhonghuan Co., Ltd., which focuses on semiconductor materials. Therefore, from the outside, the "chemical reaction" between TCL technology and Zhonghuan shares mainly occurs in the aspects of management efficiency and capital operation. According to the latest research report released by Huaxi Securities, TCL technology will achieve all-round collaboration with central in terms of process flow, management efficiency, overseas market and capital level.

"Semiconductor display and silicon wafer are both electronic technology industries with heavy assets, and their manufacturing process and management logic are similar." Huaxi Securities said that TCL technology's acquisition is expected to transfer the technology industry development experience accumulated in high-tech, heavy assets and long-term fields to central.

Management efficiency and capital level are the significant benefit points after China central group was owned by private capital.

Take Zhonghuan as an example. In recent years, the company, which accounts for nearly 90% of its photovoltaic business income, has missed some development opportunities because of the poor operation of its management system. Behind this, the conservative incentive mechanism of top management team under the state-owned enterprise system is in sharp contrast to the market-oriented incentive mechanism of private enterprises, which is difficult to effectively mobilize the enthusiasm of innovation and improve the efficiency of management.

"Due to the status and system of state-owned enterprises, some operating mechanisms of China Central Stock Co., Ltd. have not been smooth in the past few years, and this mixed reform will at least bring about improvement in management and operation efficiency for China Central." A senior reporter said in an interview with the new energy industry.

The investment of capital will also become a major point of cooperation between TCL technology and central group.

Semiconductor industry is a capital intensive heavy asset industry. TCL technology, which holds a lot of money, will undoubtedly become an important "capital pool" for the future industrial development of China Central. Financial data show that in the past two years, TCL technology has generated more than 10 billion yuan of cash flow from its operating activities. In the first quarter of this year, the figure was 2.299 billion yuan. By the end of the first quarter of this year, the balance of cash and cash equivalents at the end of the first quarter of this year was 18.457 billion yuan.

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