Jane Chen / Shanghai Daily news

China's electronics giant TCL Group announced yesterday a deal to sell two of its units for a total of 1.69 billion yuan (US$209 million), confirming recent market rumors about a sale, today's Chongqing Economic Times reported.
TCL has signed a sale agreement with the French electrical conglomerate Legrand Group and the two are finalising the paperwork, the report said.
TCL said it will sell TCL International Electrical (Huizhou) Co., Ltd., for 1.457 billion yuan and TCL Intelligent Building Business Division for 234 million yuan.
The former is TCL's wholly-owned subsidiary specializing in premium power switches, sockets, low-voltage electrical appliances, cabling systems and security products; and the latter specializes in products and systems for electrical installation and information networks in residential housing, commercial buildings and in industry. TCL has an 80 percent stake in TCL Intelligent Building Business Division.
Market analysts saw the sale as an attemp by TCL to reverse its lack-lustre financial performance.
"Given the fact that the two businesses on sale are profitable, it indicates the group has resolved to solve its financial problems, particularly with the tightness of cash flow," said Wang Guoping, an industrial researcher, as cited in the Chongqing-based newspaper.
The electrical unit had net assets of 136 million yuan at the end of last year, and the building division had assets of 20 million yuan, according to TCL's 2004 financial report.
TCL refuted market speculation that the group is selling the two units to bolster cash flow.
"In fact, the sales are part of a group restructuring," said He Zhihua, spokesman at TCl's head office.