Sony and TCL Sign Definitive Agreements for Partnership in the Home Entertainment Field

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March 31, 2026

On March 31, 2026

Sony Corporation (“Sony”) and TCL Electronics Holdings Limited (together with its subsidiaries, “TCL”) today announced that Sony and TCL have entered into legally binding definitive agreements for a strategic partnership in the home entertainment field. This follows the memorandum of understanding announced on January 20, 2026, pursuant to which both parties have been conducting discussions.

Under this partnership, Sony will establish a wholly owned subsidiary (the “Preparatory Company”) to assume its home entertainment business, and TCL will subscribe to a portion of the Preparatory Company’s shares, forming a joint venture (the “New Company”) with TCL holding 51% and Sony holding 49% of the shares. The New Company will succeed to Sony’s home entertainment business, which includes product development and design, manufacturing, sales and logistics, and customer service for products such as Consumer TVs (BRAVIA), B2B Flat Panel Displays (B2B BRAVIA), B2B LED Displays, projectors, and home audio equipment such as home theater systems and audio components. The New Company is expected to operate this integrated business globally.

As part of the partnership, 100% of the equity in Sony EMCS (Malaysia) Sdn. Bhd.(“SOEM”), a subsidiary responsible for the manufacturing function of Sony’s home entertainment products, will be transferred to TCL. Regarding Shanghai Suoguang Visual Products Co., Ltd. (“SSVE”), also a subsidiary responsible for the manufacturing function of Sony’s home entertainment products, the relevant parties expect to continue discussions regarding the transfer of all or part of the equity in SSVE held by Sony (China) Limited to TCL.

The sum of the enterprise value of the businesses to be transferred to the New Company and the enterprise value of SOEM (“Enterprise Value”) is approximately 102.8 billion yen (equivalent to approximately HK$5.2 billion). The consideration payable by TCL is assumed to be approximately 75.4 billion yen (equivalent to approximately HK$3.8 billion) at present, calculated based on the equity value derived from the above Enterprise Value with adjustments for certain net debt, working capital, and other adjustments, and prorated according to TCL’s ownership ratios of the New Company and SOEM. The final amount will be determined following further adjustments for certain net debt and working capital at the timing of closing. For the avoidance of doubt, the Enterprise Value does not include the enterprise value of SSVE, which is currently under discussion. The completion of transactions under this partnership is subject to obtaining relevant regulatory approvals and other conditions, with the New Company expected to commence operations in April 2027.

The New Company’s products are expected to carry the globally recognized “Sony” and “BRAVIA ” names, with the aim of creating new customer value through branded products such as TVs and home audio equipment. The New Company will strive to create innovative products that meet the expectations of customers worldwide and achieve further business growth through outstanding operational excellence. In addition, Sony and TCL are committed to strongly supporting the sustainable growth of the New Company.

New Company Overview

Company Name:

Headquarters:

Tokyo, Japan (Inside Sony City Osaki, 2-10-1 Osaki, Shinagawa-ku, Tokyo, Japan)

Investment ratio:The New Company is expected to become a consolidated subsidiary of TCL Electronics Holdings Limited and an equity-method affiliate of Sony.

Members of the board: