In the past two years, China's major household appliances giants have embarked on a vigorous internationalization process, and they have started large-scale overseas mergers and acquisitions, and they have launched comprehensive attacks in Europe, the United States, and Japan. As the forerunner of the internationalization of Chinese enterprises, Li Dongsheng, the chairman of TCL Group (000100.SZ), experienced the various twists and turns of internationalization earlier and became more aware of the ups and downs.
"Overseas mergers and acquisitions need to be the worst plan. We must do all kinds of pre-plans and be prepared to fight hard and fight evil." On June 27, during the Third China-Israel Science and Technology Innovation Investment Conference, Li Dongsheng was I made this statement when I was interviewed by the First Financial Journal. He also said that in the future, TCL will continue to divest non-core industries, and strive to complete the main restructuring and divestiture work by the end of 2018, forming an industry focus.
Regarding the investment in Israel, Li Dongsheng also said that the country of Israel is a small country with insufficient population and resources, forcing them to compete through innovation, and the products are mainly oriented to the European and American markets. In the future, the Chinese market has greater opportunities. Israel's leading technologies in the four industries of defense, agriculture, biotechnology, and electronic information are all needed by China.
Recently, Li Dong was the largest shareholder of TCL Group (000100.SZ). He also explained to the First Financial Reporter that he became the largest shareholder. It was confirmed very early in 2015, and TCL Group has no actual control yet. People, this nature has not changed, the recent announcement is as the de facto first major shareholder, according to regulatory requirements to make disclosure.
Li Dongsheng, who has experienced twists and turns in the process of internationalization, has a lot of personal feelings about the topic of internationalization. “Chinese companies face the same choice at this stage, so it depends on how the company’s internationalization strategy depends on how the company’s existing capabilities are suitable for promoting internationalization.â€
He said that internationalization should be prepared accordingly, including the preparation of human resources and funds. Although it does not want bad things to happen, it is necessary to prepare for the worst situation. If it happens, there will be a plan to deal with it. The most taboo is the difficulty. I have to find a way to deal with it temporarily. "We must be prepared to fight hard and fight evil!" Chinese companies should have a corresponding understanding of the laws and regulations of the local society and social and humanities. "You can't change the environment, you can only adapt to the environment, in order to promote the business to better."
TCL Group's revenue has been three years in the 100 billion scale. Since the second half of last year, TCL has promoted a new round of reforms, trying to focus on the main business. However, Li Dongsheng believes that focusing on the main business does not mean that there is only one industry. In the world's successful home appliance companies, except for air-conditioning companies, which can be successful with a single product, most of the Chinese, Japanese and Korean companies, including the more successful Samsung, etc. It is a comprehensive enterprise.
"We now have ten strategic units, including seven industrial groups, three major service businesses and venture capital. The unrelated industries will continue to be reorganized and divested." In the future, the industry under the supervision of TCL Group will gradually reduce and plan to At the end of 2018, the main restructuring and divestiture work can be completed, and the number of projects directly managed by TCL Group will be reduced from 50 to about 25. In the past half year, TCL has divested and reorganized several projects.
At present, the traditional consumer electronics and home appliance industries are in an excessively competitive stage, and they must survive and develop better through their own competitiveness and better innovation capabilities. Taking smartphones and smart color TVs as examples, a large number of mobile Internet technologies should be embedded in products. In the past, TCL was only the manufacture of terminal products, and now we need to provide better services. "So we have established three service units to provide services such as smart internet. ".
In order to strengthen the ability of software development and big data cloud computing, Li Dongsheng revealed that TCL is planning to invest in Zhuhai. This year, the state strongly supports the development of the Guangdong, Hong Kong and Macao Dawan District. Zhuhai is the fulcrum. In the past, TCL invested in Zhongshan City on the west coast of Zhuhai. It is hoped that the project layout in Zhuhai will be implemented this year. The software development and big data cloud computing businesses are Zhuhai landing is more suitable.
Focus on information technology artificial intelligence projectIn the past two decades, Chinese companies have been accelerating the pace of internationalization, both successful and failed. Li Dongsheng said, "We have no failures, but some projects have some twists and turns." Each company has different characteristics, and each company's internationalization strategy is also different. Recently, TCL's investment in Israel is more Focus on the application of technology, how to help technology products to better market, and get more benefits.
Speaking of TCL's investment in Israel, Li Dongsheng said that he has been concerned about the development of Israel two years ago and has started to communicate with relevant Israeli innovative companies. He started investing last year. TCL's approach is to invest in local technology innovation fund companies. Becoming their LP (Limited Partner), they participated in two Israeli technology innovation fund companies last year; through these innovative funds, they have contacted some projects.
TCL has established an office in Israel to strengthen communication. This year, we plan to promote the next investment and invest directly in the project. We hope that through direct participation in the project, we can participate in promoting the development of the project to a greater extent, Li Dongsheng said.
Israel has good technology, especially in four major areas, including defense industry, agriculture, biotechnology, artificial intelligence information technology, etc., which are closely related to Israel's defense industry. "We are more interested in the field of information technology and artificial intelligence. This time we are investing in a project based on information transmission and big data cloud services, which is still in progress, but it is too inconvenient to disclose too much. This requires relevant government departments. Approval."
Israel has technology and good product projects, but the market is small, it needs to be global, and it has been successful in the European and American markets. Now Israel has paid more attention to the Chinese market. In the past, many US European capitals have been paying close attention to Israeli projects. The United States has the largest number of cases of acquiring Israeli shares. In recent years, Chinese companies have also paid attention to Israel's potential and opportunities. In this regard, TCL is ahead.
"Israel's ability to innovate is related to the Jewish nation. It is also forced out. The population is small and the resources are relatively scarce. Innovation is the only way out in this environment." Israel can only do better if it does something that others cannot do. Development opportunities include the return of defense military technology to the United States. At present, there are no big industries in Israel, mainly small and medium-sized innovative companies. "I went to Israel two months ago. The biggest company is a little more than 200 people. We consider investing, and the average company has more than a dozen people." Li Dongsheng said.
In 2016, TCL's global sales of color TVs exceeded 20 million units for the first time, ranking third in the global color TV industry. Li Dongsheng believes that TCL's future overseas business revenue will account for more than 50%. TCL has established production bases in different regions of the world, such as in emerging markets such as Vietnam. In the European and American regions, the acquisition method is adopted, and then the independent brand is gradually established. According to IHS data, in the first quarter of 2017, TCL shipped 950,000 units of color TVs in North America, accounting for 13% of the total, and for the first time jumped to the third place in the North American color TV market. International breakthroughs require technology-driven, including the use of intelligent voice technology, artificial intelligence technology and new display technologies. Currently, TCL has established overseas R&D centers in the United States.
At present, TCL Group is planning to issue shares to purchase assets, which is still in suspension. Li Dongsheng said: "According to the announcement, the progress is still very smooth."
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