China business daily / China business network (reporter zushuang) appliance companies are still changing their names. On January 13, TCL Group Co., Ltd. (hereinafter referred to as TCL Group) announced that it planned to change the company name to TCL Technology Group Co., Ltd. and the securities abbreviation to TCL technology. In recent years, the renaming of household appliance enterprises is common. What is the reason behind this phenomenon?
TCL Group plans to change its name to TCL Technology
According to the data, the predecessor of TCL group is Huiyang area electronic industry company. In 1985, TCL communication equipment Co., Ltd. registered under the name of “TCL” was invested and established. It was officially changed into TCL Group Co., Ltd. in 2002 and has been used up to now. After 38 years of development, TCL group covers TV, mobile phone, home appliances and other terminals and supporting businesses, semiconductor display devices and materials, industrial finance, investment and venture capital and other businesses.
It is reported that the renaming of TCL group is directly related to its major asset restructuring in 2019. In 2019, TCL group completed the delivery of major asset restructuring, divested the intelligent terminal and related supporting businesses from the listed company and handed them over to TCL Industrial Holding Co., Ltd. At the beginning of 2019, TCL Group announced that TCL Group plans to divest the consumer electronics business with 4.76 billion yuan and focus on the display panel business of csot. In November 2019, csot officially changed its name to TCL csot. It is mentioned in the announcement that the name “TCL Group” is no longer applicable because the business scope of the company has changed substantially.
Li Dongsheng, founder and chairman of TCL, once said that TCL Huaxing optoelectronics accounted for more than 70% of the total fixed assets of the company. Industrial restructuring is one of the main reasons why TCL group changed its name to TCL technology group, which means that the company will pay more attention to the characteristics of its high-tech industry. Since then, the company has changed from a diversified traditional household appliance enterprise to a high-tech company focusing on semiconductor display and material industry, and Developing Industrial Finance and investment business. “In the near future, the company will continue to reset the remaining enterprises to make the business more focused,” said Li.
In the announcement, TCL Group disclosed that TCL Huaxing will focus on large-scale LCD high-end products through mini led on TFT and 8K technology, and take the lead in layout and printing OLED technology research and development and commercial application. The company will also seize the opportunity of industrial adjustment and industry reshuffle, accelerate the vertical extension and horizontal integration of the industrial chain, especially the investment layout in the fields of basic materials, next generation display materials and key equipment in new process.
In fact, in recent years, the phenomenon of renaming household appliance enterprises is common. On June 5, 2019, Qingdao Haier announced that the original name “Qingdao Haier Co., Ltd.” is to be changed to “Haier Zhijia Co., Ltd.”. After the change, “Haier smart home” will focus more on the accelerated development of smart family ecological brand; on July 8 of the same year, Skyworth Digital said that the company name had been changed from “Skyworth Digital” to “Skyworth Group”; on December 20 of the same year, Hisense Electric released a notice that the name was officially changed from “Qingdao Hisense Electric Co., Ltd.” to “Hisense Video Technology Co., Ltd.” “
Why are appliance giants keen to change their names? Zhang Jianfeng, Executive Deputy Secretary General of China household electrical appliances business association, told China Business Daily that from the perspective of industry, at present, the household electrical appliances industry is developing in the direction of intelligence and technology; from the perspective of the enterprise itself, the original name of the enterprise has certain limitations and is not suitable for the current development needs of the enterprise.
“Like with the name of” group “, it can reflect the comprehensive strength of the enterprise, but it can not highlight the main business. At present, TCL Group has focused on panel, integrated circuit, chip and other high-tech fields. After the name change, TCL group can more reflect the company’s science and technology and innovation. ” Zhang Jianfeng told China business daily.
Hong Shibin, an industry observer, said, “the trend of renaming household appliances enterprises is an ecological fission based on household appliances. In addition, most of the companies involved in the renaming trend are listed companies. One of the important reasons for these listed companies to “go home electrification” through renaming is to pursue market value to improve their share price and leave more imagination space for the capital market. “.