TCL Communication to raise HK$358 mln via rights issue

Nov. 4, 2009 (China Knowledge) - TCL Communication Technology Holdings Ltd<2618>, a subsidiary of TCL Corp<000100>, plans to raise approximately HK$358 million through a rights issue, sources reported.

According to the company's filing with the Hong Kong Stock Exchange, TCL plans to sell 358 million shares at HK$1 apiece.

Revenue of TCL Communication amounted to HK$1.07 billion in the third quarter of 2009, a slight decrease of 4% over the same period last year. Gross profit increased by 19% to HK$235.7 million from a year earlier, while gross profit margin rose to 22% from 17.7% in the third quarter of 2008.

In the first nine months of this year, the group's total sales volume was 9.3 million units, down 9% from the same period last year. The decrease was primarily attributable to lower demand in overseas markets in the first two quarters during the financial crisis.

Shares of TCL Communication rose 3.31% to close at HK$1.25 yesterday.