What is the trend of the TCL Group behind the 10 billion industrial merger and acquisition fund?

The TCL in my eyes has a strong penetration ability in the personal consumer electronics field. It is a leading consumer electronics company in China, a representative of high-end manufacturing companies in China, a pioneer in international mergers and acquisitions of Chinese companies, and a company with high initiative and rapid change. “Zhaoguang Guo, chairman of Ziguang Group, spoke of TCL’s unfavorable words of praise. He then said that Li Dongsheng, who is in his eyes, is an entrepreneur with a global vision and a unique business vision. He is a man with strong toughness and a strong heart. He is a master of management.

Obviously, Ziguang, who is in cooperation with TCL Group to start the industrial M&A fund, has innovative technical strength and rich M&A experience and is one of the shareholders of TCL Group is very satisfied.

Following the February 22nd TCL announcement and Ziguang Group co-sponsored the establishment of an industry merger and acquisition fund, in the afternoon of February 23rd, TCL teamed with Ziguang Group in Beijing to hold an industry merger and acquisition fund launch conference. At the press conference, the two parties jointly announced that they will make full use of their strong influence in their respective industries, their rich investment experience in the upstream and downstream industries, and the advantages of cross-border capital market platforms across China and overseas to jointly build a billion-dollar industrial investment platform. Industrial synergy and capital effects will promote the transformation and upgrading of China's semiconductor and consumer electronics industries.

According to the contents of the announcement, the fund will focus on direct investment and mergers and acquisitions of Ziguang Group and TCL Group's upstream and downstream industries and related industries, TMT, Industry 4.0, Industry 2025 and Internet+ industries. The establishment of this fund will help both parties to strengthen the integration of upstream and downstream resources, extend the industrial chain layout, further increase the industrial synergy effect, enhance the interaction between capital and industry, and promote the transformation and upgrading of enterprises. In addition, the successful operation of the fund will also increase the industry's competitive advantage and profitability.

Cooperation with Ziguang is the Best Choice, Ten Billion Funds Facing the World, Focusing on Outstanding Companies

For TCL, we chose to set up an industrial M&A fund with Ziguang Group. What is the deep strategic significance behind this and what are the key targets for the future?

Li Dongsheng, chairman of TCL Group, told reporters from the State Grid Corporation of China that in early 2015, TCL Group adjusted the company’s original industry and business structure to “7+3+1” structure, namely 7 business segments and 3 service business segments. A venture capital group and investment business group, and today set up an industry merger fund with Ziguang Group is part of venture capital.

Talking about the cooperation with Ziguang, Li Dongsheng said, “Violet has very strong advantages in high-tech innovation, especially in semiconductor and chip technology. TCL has a mature foundation in terms of brand, channel and product technology. Last year, our products 47% are sold overseas, and the use of chips is large, so the two parties have great complementarity."

"The past companies set up investment and venture capital investment in two forms. One is to launch a venture capital fund, and other investors participate. The other is the direct investment of enterprises in the upstream, downstream, and downstream industries. The size of funds involved this time is relatively large. , Ziguang has a wealth of investment experience and both sides have a specific thinking on how to operate the fund, taking into account the form of investment should not be too complicated, so the cooperation with the purple is the best choice."

Li Dongsheng revealed that the fund will be oriented to global companies or projects. Currently, industrial foundations are looking for opportunities for vertical integration of the industrial chain. The amount of 10 billion funds is not small, and it is not very large for the entire industry. Therefore, what can be done depends on resources. To focus on, in addition to capital investment, we must export the capabilities of both companies to integrate the companies that buy and sell the bids, and develop the integrated standard into a part of the industrial ecology. In this process, TCL and Ziguang pay more attention to the output of their respective advantageous resources and capabilities, and strengthen the capabilities of the companies that upgrade the bid. This is different from the venture capital project with a small amount of funds. Both companies pay more attention to the benefits of the fund projects.

Through the fund strategy, TCL will improve its product technology capabilities, service capabilities, brand industrialization capabilities, and global capabilities, and build an industrial ecosystem to cope with global competition.

Behind the fund, everyone is very difficult. If we can solve this problem, it is good news.

2016 was considered to be a difficult year. Many companies mentioned the strengthening of their own industrial capabilities in the opening strategy, but also highlighted the development breakthroughs in the capital market.

The TCL Group and Ziguang set up an industry merger and acquisition fund, it can not help but think of whether the listed company as a manufacturing company in the physical industry encounter the ceiling.

Li Dongsheng responded: “In 2016, the corporate confidence index released by various agencies was the lowest in the calendar year. This trend is rational. However, the actual confidence index of many Chinese entrepreneurs is higher than the index issued by institutions. The consensus is that there are challenges, and although we can't change the environment, we can change ourselves and change ourselves in the process of adjusting the survival of the fittest."

Li Dongsheng believes that the good news is that everyone is very difficult, and the bad news is that the industry is difficult. Everyone is very difficult. If you can solve this problem, it is good news. We hope that in this round of global industrial adjustment, we will seek more opportunities for us through the way of industrial M&A funds.

"Acquisition is not directly related to the development of a company. The more acquisitions possible, the better the company's development, and prove that the company's capabilities are excellent." Zhao Weiguo believes that mergers and acquisitions are more dangerous for industry mergers and acquisitions, and 70% of them will fail. The key to a miss is to be thorough. We must acquire good companies (good patents with good products). For Weiguang and TCL cooperation, Zhao Weiguo’s opinion is: “This is a trend. The industry has been Ecologicalization, capitalization, and business circle. In this circle, we have the ability to achieve strong alliances through capital cooperation and business cooperation. If you are not in this circle, it will be difficult to play in the future.”