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1、February 2001,Introduction to TCL Group,1,Organization Structure Ownership Structure Business Performance,2,Sales and Marketing,PRC Sales and Service Network Overseas market,Content,Corporate Facts,4,3,Manufacturing and R&D,Outlook,Competitive Advantages Corporate Vision Corporate Strategy,Content,5
2、,Seeking Strategic Alliance,Organization Structure,TCL Group,TCL Communications (Listed in Shenzhen),TCL International Hldgs (Listed in Hong Kong),TCL Electric Accessories,Others,Comm. Equip. Handset Wireless Access Battery,Home Appli- ance Group,IT Group,TV Aircon Fridge WM AV,PC Handheld Equip. In
3、ternet Value-added Services Network Equip. Edcation Software & Services System Integration,41.43%,53.84%,80%,Ownership Structure,TCL is different from a typical state-run enterprise Typical state-run: wholly owned and managed by the government. At TCL, management and employees represent 41.87% share
4、holders. Government owns 58.13%. Government never made equity investment into TCL. Initial capital came from bank loans. Subsequent growth on its own profit accumulation. Ownership transformation To recognize the contribution of the management, the ownership of TCL has been re-structured since 1997.
5、 Management and employees have obtained shares through options and bonus shares in the past four years.,PerformanceRevenue Growth,RMB millions,With over RMB20 billion revenue in 2000, TCL became the largest industrial enterprise in Guangdong.,The above figures include the revenue of LG Electronics (
6、Huizhou), Inc., which TCL owns 20%. Revenue of LG Electronics (Huizhou), Inc. in 2000 was RMB3.85 billion.,Performance Pre-tax profit Growth,RMB millions,RMB millions,11,878 10.66%,1,207 177.19%,344 53.84%,907 100.16%,Home Appliance,Comm. Equip.,Info Tech.,Elec. Accessories,Others,16,552 24.28%,2,21
7、5 103.86%,PerformanceRevenue Mix in 2000,电工,Home Appliance 72,Others 5,Accessories 2,IT 14,Comm. 7,Total,Revenue YoY Growth,2000 Revenues of major business units,Note: LG Electronics not included.,Colour TV became one of the top 2 players in 2000 Telephone has been No. 1 for 11 years Electric Access
8、ories has become No. 1 since 1999 Education software & services reached No. 1 in 2000 Notebook computer distribution ranked No. 3 in 2000 PC ranked No. 4 among domestic players in 2000 Handset ranked No. 4 among domestic players in 2000 Air-conditioner, Refrigerator and Washing Machine were among th
9、e top ten in 2000,PerformanceMarket Position in China,Subsidiaries:34,Sales branches:164,Powerful Distribution Network,The geographical coverage and depth of TCLs distribution and service network, along with its efficiency and effectiveness, establishes TCLs unparalleled position as one of the most
10、powerful marketers for consumer products in China.,Manage over 4,000 distributors, covering more than 20,000 retailers.,20%,13%,13%,18,Overseas Market,Russia,Vietnam,Hong Kong,India,USA,Singapore,Philippines,12 factories under TCL management, located in: Huizhou Shenzhen Henan Inner Mongolia Beijing
11、 Zhongshan Wuxi Over 20 subcontractors, located in Shanghai Tianjin Guangzhou Shenzhen Suzhou Nanchang Dongguan Lanzhou Nanjing Wuhan Jiangmen Zhongshan,Manufacturing capacity,R&D,Senior engineers 10%,Junior 40%,Others 50%,Over 1000 researchers and developers by 2000,Patents obtained in 19982000,3,1
12、3,8,1998,1999,2000,New products developed in 19982000,61,65,90,1998,1999,2000,Competitive Advantages,Brand name:According to Beijing Famous Brand Valuation Institute, TCL brand was valued at RMB 10.6 billion, ranking the fifth in China. Efficient distribution and service network: extensive market co
13、verage and unparalleled marketing and distribution power. Full line of home infotainment products: fulfilling various needs of consumer households and individuals in different market segments. Low cost manufacturing capacity with balanced scale of economy. Solid costumer base: over 100 million users
14、 of TCL products.,Performance oriented ownership structure and management philosophy, taking advantages of both state-run and private-run mechanisms. Highly developed market driven business model. Extensive experience in successful JV operations with proven track record. Emphasis in human resource m
15、anagement. Driven by core corporate value, employees advance their careers while the company grows. Well coordinated government relationship and social ties. Easy and quick access to favourable governmental policies and supports, as well as benefiting from a variety of social resources.,Competitive
16、Advantages,Mission Create premiere Chinese brands, build a world-class business Principles Dedication, teamwork and innovation Philosophy Provide value for customers Provide opportunities for employees Provide benefits for society,Corporate Vision,Produce best products. Build best brand. Provide best services.,Expand from a major provider of home appliance and communication equipment to a leading player in Chinas home infotainment market with full lines of Internet access device and value-added services. While riding the tremendous growth o
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