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TCL Corp. may list PC unit

(Shenzhen Daily)
Updated: 2007-06-25 08:47

Major domestic television and mobile phone maker TCL Corp. may list its personal computer unit to raise much-needed capital, a domestic newspaper said Friday.

Shenzhen-listed TCL Corp. hopes to swing to a profit this year, after which it would apply for a listing of the PC unit, the China Business News said, citing an unnamed TCL executive, who did not specify which stock exchange the company would target for a listing.

TCL is still reorganizing the share structure of its PC unit and may bring in overseas investors in preparation for a listing, the paper said.

TCL Corp. said in March that it was confident the company and its two Hong Kong-listed subsidiaries, TCL Communication Technology Holdings and TCL Multimedia Technology Holdings, will post a profit this year.

TCL Corp. said in April that it had recorded a 1.01 billion yuan (US$133 million) loss in 2006, related to TCL Multimedia’s restructuring of its European television business.

However, TCL also said it returned to the black in the first quarter of this year by cutting costs, which improved profit margins, although it still posted a loss on an operating basis of 21.89 million yuan in the quarter.

TCL Corp. also said two weeks ago that it planned to issue additional shares to raise up to 2.3 billion yuan to fund the production of liquid crystal display panels.