Mainland consumer electronics maker TCL International said it might increase its stake in the group's mobile phone manufacturing unit after getting the go-ahead for a share purchase on Thursday. The remarks came after shareholders approved a proposal to buy a 13.8 per cent stake in TCL Mobile for 811.44 million yuan (about HK$765.7 million) at an extraordinary general meeting. The purchase from private company Mate Fair Group would lift TCL International's holding to 40.8 per cent from 27 per cent. Huizhou-based TCL Mobile would also be 36 per cent owned by Shenzhen-listed A share TCL Communication Equipment - TCL International's sister company - once the deal was completed. Under the deal, TCL International is guaranteed that the mobile phone maker will make a net profit of at least 840 million yuan this year. TCL Mobile chairman Wan Mingjian said he was optimistic the company would meet its annual sales target of five million units this year. TCL Mobile, which has an annual production capacity of 12 million units, sold about 4.1 million units in the nine months to September 30. Mr Wan said the average gross profit margin in September and last month was similar to the 29 per cent in the first eight months, despite the declining profit margins across the industry amid intensifying competition and slowing demand. Domestic mobile phone sales are expected to grow 30 per cent this year against a 200 per cent rise last year. The mainland mobile phone industry risks following the country's television manufacturers, which have been badly hurt by fierce price competition. Some Taiwanese mobile phone makers and one domestic company have said they would produce models that sell for as low as 200 to 500 yuan, compared with TCL Mobile's retail prices of 2,000 to 3,000 yuan. Mr Wan said his company could also produce low-priced models to compete.