HONG KONG, Oct. 15, 2012 /PRNewswire/ -- TCL Multimedia Technology Holdings Limited ("TCL Multimedia" or "the Group", HKSE stock code: 01070) announced that the 8.5-generation LCD panel production line operated by Shenzhen China Star Optoelectronics Technology Co., Ltd. ("CSOT"), a joint venture among the Group's holding company, TCL Corporation Holdings Limited ("TCL Corporation"), the Shenzhen Municipal Government and Samsung (Korea), has reached its target production capacity three months ahead of schedule. The production volume of CSOT's panels was 108,000 in September with a production yield rate of 95%. This achievement not only makes the 8.5-generation LCD panel production line the largest of its kind in Taiwan and the Mainland, but also provides strategic support for the supply of LCD panels to TCL Multimedia, further realizing the advantages of a vertically-integrated industry chain and enhancing the Group's core business competitiveness.
CSOT is the first LCD panel production project based on its independent innovations since the launch of the LCD Panel Industry Development Plan (2010-2012) in China. The 8.5-generation LCD panel production project operated by CSOT is a joint-venture project among TCL Corporation, Shenzhen Municipal Government and Samsung (Korea), which hold stakes of 55%, 30% and 15% respectively. It provides a stable supply of high quality products to top domestic TV brands and various foreign brands including Samsung. CSOT's achievement in reaching target production capacity ahead of schedule attests to its outstanding operation efficiency. It not only provides greater stability in the raw material supply to TCL Multimedia, but also plays a strategic role in cost control.
The project kicked off in March 2010 and went into production in October 2011. CSOT has 3,800 employees, including 283 core technical staff, among whom three have been shortlisted in the "Thousand Talents Program" in China in current and previous year. CSOT has achieved exceptional results in patents technology, having submitted a cumulative total of 1,684 applications and with 273 authorized. CSOT has successfully developed "China Star", the world's largest 110-inch LCD display, equipped with a 3D and four-folded high definition screen. It was installed, tested and officially launched in the Great Hall of the People in August, making China the latest country boasting homegrown high-end display technology after Japan and Korea. In addition, CSOT actively focused on R&D in OLED technology, and has established a 4.5 generation OLED testing line.
According to the latest DisplaySearch report, CSOT's product shipment volume in September 2012 has surpassed that of SHARP Corporation to become fifth highest in the world, giving it a 9.5% global market share. This is on top of CSOT becoming the second largest LCD panel supplier in the PRC Market.
Mr. Li Dongsheng, Chairman of TCL Multimedia said, "CSOT took 17 months to start production and reached its target capacity in 10 months since the project was kicked off in March 2010, setting an industry record in the pace of project development. The attainment of the target production capacity ahead of schedule attests to the project's initial success and has laid a solid foundation for long-term and steady development for TCL Multimedia. We stand committed to our philosophy of 'speed and efficiency' for operation and marketing, and will implement strategies to achieve 'sales volume growth, transformation and sustainable development' to further optimize our product mix and expand distribution sales channels. In the meantime, we will leverage our vertically-integrated industry chain and focus on enhancing profitability to maximize value for our shareholders."
About TCL Multimedia
Headquartered in China, TCL Multimedia Technology Holdings Limited (stock code: 01070.HK) is one of the leading players in the global TV industry. TCL Multimedia is engaged in the R&D, manufacture and distribution of consumer electronic products comprising television and audio visual products. Its ultimate shareholder is TCL Corporation. For more information, please visit its website: http://multimedia.tcl.com.
Shenzhen China Star Optoelectronics Technology Co., Ltd. (CSOT) is a high-tech enterprise established on 16 November 2009. It is by far the single-largest industrial project investment in Shenzhen since the city's establishment, as well as a major focus of the Shenzhen Municipal Government. As at September 2012, CSOT has 3,800 employees, including 283 core technical staff. CSOT has achieved exceptional results in patent technology, having submitted a total of 1,684 applications to date, of which 273 have been authorized. For more information, please visit http://www.szcsot.com/.
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SOURCE TCL Multimedia Technology Holdings Limited