XIAOMI Corp. bought a stake in domestic home appliance maker TCL Corp. as the two companies agreed to cooperate on the development of smart products and electronic devices.

Xiaomi bought 65.2 million shares, or 0.48 percent, of TCL from the secondary market as of Jan. 4, TCL said in a statement to the Shenzhen Stock Exchange on Sunday.

TCL said the purchase is recognition of its valuation, operational strategy and core competence, and that Xiaomi is willing to conduct a strategic cooperation with it on a capital level.

The agreement with Xiaomi was signed Dec. 29.

Beijing-based Xiaomi is best known for budget smartphones, while TCL is the world’s third-largest LCD TV manufacturer.

According to International Data Corp., Xiaomi became the largest smart TV brand in China and it also surpassed Samsung to become the leader in India during the third quarter of 2018.

Smart TVs helped drive revenue growth for Xiaomi’s non-smartphone hardware segment during the third quarter of 2018, according to the company’s financial results. (SD-Agencies)