(Yicai) Jan. 21 -- Shares of TCL Electronics jumped after the Chinese consumer electronics giant said it will partner with Sony to take a majority stake in a new joint venture that will control the Japanese firm’s home entertainment business.

TCL Electronics [HKG: 1070] was trading up 13.4 percent at HKD12.35 (USD1.58) as of 10.50 a.m. in Hong Kong today, after earlier gaining as much as 16.3 percent.

TCL and Sony have confirmed their intentions to establish a JV that will assume Sony’s home entertainment business, with TCL Electronics holding 51 percent and Sony the remaining 49 percent of its shares, the pair announced yesterday, citing a memorandum of understanding.

The new company will handle the full process from global product development and design to manufacturing, sales, logistics, and customer service for products such as televisions and home audio equipment, the two companies noted, adding that they will proceed with discussions toward definitive binding agreements by the end of March.

Expected to commence operations in April next year, the new firm will advance its business by leveraging Sony’s high-quality picture and audio technology, brand value, and operational expertise, while using TCL’s advanced display technology, global scale advantages, industrial footprint, end-to-end cost efficiency, and vertical supply chain strength, the pair said.

The new company’s products are expected to carry the globally recognized Sony and Bravia names, aiming to create new customer value. It will also be committed to developing innovative products to achieve further business growth.

TCL Electronics is the listed subsidiary of China's electronics giant TCL Group, operating the display and mobile terminal businesses.

“We are pleased to have reached this agreement with TCL for a strategic partnership,” said Kimio Maki, representative director, president, and chief executive officer of Sony. “By combining both companies’ expertise, we aim to create new customer value in the home entertainment field, delivering even more captivating audio and visual experiences to customers worldwide.”

“We believe that this strategic partnership with Sony represents a unique opportunity to combine the strengths of Sony and TCL, creating a powerful platform for sustainable growth,” said Du Juan, chairperson of TCL.

“Through strategic business complementarity, technology and know-how sharing, and operational integration, we expect to elevate our brand value, achieve greater scale, and optimize the supply chain in order to deliver superior products and services to our customers,” Du added.

Global TV shipments likely fell 0.7 percent to 221 million units last year from 2024, according to data from Sigmaintell Consulting. TCL’s shipments are expected to have jumped 5.4 percent to 30.4 million units in the period, with its market share rising to 13.8 percent from 13 percent, ranking second globally. In comparison, Sony’s market share was only 1.9 percent in 2025.

The cooperation between TCL and Sony is not the first between Chinese and Japanese enterprises in the home entertainment business. China’s Hisense acquired Japanese multinational electronics giant Toshiba’s TV business in 2017, while its peer Skyworth took over the operating rights of Dutch electronics giant Philips’ TV business in the North American region from Japan’s Funai Electric last year.

Editors: Tang Shihua, Futura Costaglione