TCL Corp has provided 50 million yuan (US$6.7 million) to support its personal-computer subsidiary.
But the Chinese home-appliance giant yesterday denied reports that it will sell the PC unit.
TCL, however, plans to cut 15 percent staff of the PC unit and consolidate distribution channels to improve profitability, the Shenzhen-listed firm said in a statement yesterday.
TCL Corp, which also sells mobile phones, gave the PC unit a credit line of 50 million yuan. The PC unit, divided into laptop and desktop segments, is led by Yang Jianrong, the newly appointed general manager.
"The new structure is based on the product category and that will make it easy for us to cooperate with distribution partners," Yang said.
In the first half of 2007, TCL sold 302,000 branded computers, a 20.8 percent drop year-on-year. Revenue was 866 million yuan, a 30.7 percent decline from a year ago, according to TCL's fiscal report. The laptop business will grow rapidly in the second half.
Taiwan-based Acer Inc was reported to have acquired TCL to strengthen its Chinese mainland business, but TCL denied the claim yesterday.
"We won't sell the computer unit as it is an essential part of our 3C strategy (computer, communications and consumer electronics)," Yang said.
TCL Corp turned in a profit in the first half of 45.1 million.