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Onkyo Announces Business Alliance with TCL Group, Strengthening Overseas Headphones and AV Business

Osaka, Japan – May 18th, 2018 (This release was announced in Japan on April 10th, 2018) –Onkyo Corporation announced that it has agreed to enter into a business alliance with a group under TCL Multimedia Technology Holdings Limited (hereinafter, TCL Multimedia) in the field of audio products, such as headphones, sound bars and mini components.

1. Purpose of business alliance
As an audio brand manufacturer, for years Onkyo has been promoting and selling home AV products such as AV receivers, home theater systems, mini components and sound bars. In 2015, it merged the home AV business and headphones business of the Pioneer Group, seeking to strengthen the entire business with synergies based on the accumulated business know-how of Onkyo and Pioneer. To expand the business, new sales channels must be secured.
In the meantime, TCL Multimedia consistently works on the research, development, production and sales of home appliances, including audio around the world, and is a leading company in the TV industry. In the 2017 Annual Results, its sales totaled 40,8Bil HK dollars. According to data on the latest HIS Technology and data from the 2017 shipment of TCL Multimedia, it has started to account for sales of around 10.9%, third in the global share of liquid crystal televisions. While expanding the existing TV business foundation, the company attempts to promote the smart TV and smart home business by taking advantage of its powerful sales channels and production capacity. Based on the mutual understanding of both companies, they reached an agreement to start a business alliance that takes advantage of their strengths.
With this business alliance, Onkyo expects to expand business utilizing the sales network of TCL Multimedia in markets that Onkyo has not sufficiently penetrated, such as China. Onkyo also anticipates the market development of related products, such as sound bars in the TV market where TCL Multimedia excels. This will enable the prospect of sustainable growth in the AV business.

2. Content of business alliance
Global sales expansion of Onkyo brand products of headphones, sound bars and mini components, based on a long-term partnership and license agreement, utilizing sales channels of TCL Multimedia

3. Overview of TCL Multimedia
TCL Multimedia Technology Holdings Limited (Hong Kong Exchanges and Clearing, Stock code: 01070) consistently works on the research, development, production and sales of home appliances, including audio around the world, and is a leading company in the TV industry. Putting up the “Double +” strategy of “Intelligence + Internet” and “product + service,” it has built a total ecosystem and service for smart TVs through a business model centered on products and users, delivering the ultimate user experience.