Leshi Zhixin, a smart device unit of Beijing-based rising Internet company Le Holdings, on Wednesday said that it signed a cooperation agreement with China's leading electronic manufacturer TCL Corp to scale up its smart TV production capacity.
In 2016, TCL is expected to help Leshi manufacture 1.2 million smart TVs and 500,000 TV panels, according to a press release Leshi sent to the Global Times on Wednesday.
The company sold more than 3 million smart TVs in 2015, and late last month, it set a goal of doubling that figure this year.
Most consumers in China have yet to switch to smart TVs, making the sector a promising one over the next five to 10 years, Liang Jun, president of Leshi, told a press conference in Beijing on Wednesday.
With the development of the Internet and companies' active promotion, sales of smart TVs surged 250 percent compared with 2012 to 26.5 million in 2014, according to a report issued by Beijing-based market consultancy Sootoo, which estimated that sales in 2016 will exceed 60 million.
Leshi also aims to promote its online content among its partner's big user base. According to the press release, 13 million smart TVs made by TCL are already in use and the figure is growing by an average annual rate of 30 percent.
Leshi acquired a stake of up to 20 percent in TCL Multimedia Technology Holdings Ltd, a Hong Kong-listed subsidiary of TCL Corp, in December 2015.
As for the TCL side, Liang Tiehang, vice president of TCL Multimedia, said on Wednesday that cooperation with Leshi will enhance its digital marketing ability and bring TCL 50 million yuan ($7.7 million) in advertising revenue in 2016.
TCL Multimedia's net profit in 2015 dropped 95.9 percent year-on-year to HK$10 million ($1.26 million). The company cited declining demand as a result of the weak recovery in the global economy and slowing growth in China, according to a financial report filed on the Hong Kong bourse on March 23.
