en.Wedoany.com Reported - China's TCL Electronics announced the acquisition of a 51% stake in TCL's air conditioning business for HK$5.61 billion, with the transaction involving both cash and share payments. TCL Electronics will complete the acquisition by paying HK$170 million in cash and issuing 360 million shares.
TCL's air conditioning business covers the research, development, production, and sales of residential air conditioners, commercial air conditioners, mobile air conditioners, and related products. Data shows that in 2025, TCL's total air conditioner sales exceeded 22 million units, with overseas sales accounting for 76% of the total. The company has over 10 production bases globally, with an annual production capacity exceeding 38 million units. In the same year, TCL's air conditioning business generated revenue of approximately HK$33.8 billion, a year-on-year increase of 16%, with net profit exceeding HK$1.9 billion, up about 40% year-on-year. In the first quarter of 2026, the business's net profit was HK$300 million.
Since both TCL Electronics and TCL's air conditioning business are controlled by TCL Industries, this acquisition constitutes a related-party transaction. Upon completion of the transaction, TCL Industries' direct and indirect shareholding in TCL Electronics will decrease from 54.54% to 51.51%.
TCL Electronics is one of the leading companies in China's color TV industry, currently ranking second in global TV market shipments. In the first half of 2026, the company expects revenue of approximately HK$60.3 billion to HK$65.7 billion, a year-on-year increase of 10% to 20%, and net profit attributable to the parent company of approximately HK$1.48 billion to HK$1.65 billion, a year-on-year increase of 40% to 56%.
TCL Electronics is optimistic about the development prospects of the global air conditioning market. The global HVAC industry market size was approximately US$524.9 billion in 2025 and is expected to grow from US$564.8 billion in 2026 to US$1.2 trillion by 2035, with a compound annual growth rate of 8.1%. As extreme high-temperature weather becomes increasingly frequent worldwide, air conditioning penetration rates in emerging markets such as Southeast Asia, Latin America, and Africa remain relatively low, and there is also significant room for growth in air conditioning penetration in China's second- and third-tier cities.
Guolian Minsheng Securities believes that if the acquisition is completed, TCL Electronics will further upgrade into a comprehensive home appliance platform, potentially enhancing its ability to withstand risks across multiple businesses. Additionally, the merger is expected to achieve decision-making efficiency synergy and R&D integration synergy between the air conditioning and TV businesses, which could facilitate global operations and accelerate product innovation. On the challenge side, TCL's air conditioning business is primarily export-oriented, and short-term fluctuations in raw material prices may impact its profitability. However, in the medium to long term, it is expected to break through growth ceilings through branding and premiumization.
