TCL Group, which manufactures electronics products, mobile phones and electrical appliances, plans some adjustments in its business strategy to cope with the renminbi’s depreciation.
The group currently purchases some components and other input materials in US dollars for some of its production bases to take advantage of concessions on certain tariffs.
Although the devaluation of the Chinese currency will boost the group’s exports, the benefit will not be significant as the firm will have to spend more in renminbi for imports, chairman Tomson Li Dongsheng said.
Measures to deal with the currency depreciation will include modification of some business practices and beefing up product competitiveness, the Hong Kong Economic Journal quoted Li as saying.
Among the group firms, TCL Communication Tech Holdings Ltd. (02618.hK) currently derives a large part of revenue from the Americas.
The subsidiary posted HK$453 million net profit for the first half this year, up 5.06 percent from a year ago.
Another listed arm TCL Multimedia Technology Holdings Ltd. (01070.HK), however, saw its interim profit fall 19.6 percent to HK$136 million.
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