TCL ELECTRONICS (01070) intends to sell a subsidiary engaged in the production and sale of air conditioning business.

TCL ELECTRONICS (01070) announced that on December 24, 2024 (after trading hours), its indirect non-wholly owned subsidiary TCL SEMP intends to sell 75% and 25% of the issued shares of TCL SEMP Indstria e Comrcio de Condicionadores de ar S.A. to TCL Home Appliances and STA respectively, for approximately HK$208 million and HK$69.33 million respectively, without any retention rights. As of the date of this announcement, the target company is mainly engaged in the production and sale of air conditioning business, while the group is mainly engaged in the production of televisions and sale of various home appliances. By selling its equity interest in the target company, the group will be able to optimize internal resource management and focus on its core business, thereby enhancing operational efficiency. In addition, the group believes that this is a good opportunity to realize its investment at an appropriate price, and the proceeds from the sale can be used as operating funds for the group. After the completion of the sale, the group will continue to maintain a stable supply of TCL branded air conditioners from TCL Industrial Holdings Group, ensuring that the group's full product category marketing business is not affected, and will continue to operate as usual in local and other markets.