TCL ELECTRONICS Holdings Limited has announced the sale of its air conditioning Manufacturing business in Brazil. The company's indirect non-wholly owned subsidiary, TCL SEMP, will sell 100% of the shares of TCL SEMP Indústria e Comércio de Condicionadores de ar S.A. to TCL Appliances and SEMP Amazonas S.A. for a total consideration of approximately HKD 0.277 billion. Of this, 75% of the shares will be sold to TCL Appliances for about HKD 0.208 billion, while 25% of the shares will be sold to SEMP Amazonas S.A. for approximately HKD 69.33 million.The Trade is expected to bring approximately HKD 38.88 million in unaudited earnings to TCL ELECTRONICS. The company stated that this move will help optimize internal resource management, focus...Show More

TCL ELECTRONICS Holdings Limited has announced the sale of its air conditioning Manufacturing business in Brazil. The company's indirect non-wholly owned subsidiary, TCL SEMP, will sell 100% of the shares of TCL SEMP Indústria e Comércio de Condicionadores de ar S.A. to TCL Appliances and SEMP Amazonas S.A. for a total consideration of approximately HKD 0.277 billion. Of this, 75% of the shares will be sold to TCL Appliances for about HKD 0.208 billion, while 25% of the shares will be sold to SEMP Amazonas S.A. for approximately HKD 69.33 million.The Trade is expected to bring approximately HKD 38.88 million in unaudited earnings to TCL ELECTRONICS. The company stated that this move will help optimize internal resource management, focus on core Business, and improve operational efficiency. The proceeds from the sale will be used for general operating capital. After the completion of the Trade, the target company will no longer be a subsidiary of TCL ELECTRONICS.Since the Trade involves related parties, it constitutes a related party transaction according to the listing rules. However, as the relevant applicable percentage ratios are all below 5%, it is exempted from the requirement for a circular and Shareholder approval. Nevertheless, since the consolidated profit ratio exceeds 5% but is below 25%, the Trade still constitutes a disclosable transaction, and must comply with the reporting and announcement requirements.