9.325 billion, TCL Technology’s acquisition of Guangzhou Huaxing was accepted

Recently, TCL Technology issued the "Announcement on the Acceptance of Application Documents for Issuing Shares, Paying Cash to Purchase Assets, and Raising Supporting Funds" by the Shenzhen Stock Exchange. Its application for issuing shares, paying cash to purchase assets, and raising supporting funds has been officially accepted by the Shenzhen Stock Exchange.

Currently, the transaction still needs to be reviewed by the Shenzhen Stock Exchange and registered and approved by the China Securities Regulatory Commission, and the final result is still uncertain.

According to the announcement, TCL Technology plans to acquire 45.00% of the equity of Guangzhou Huaxing Optoelectronics Semiconductor Display Technology Co., Ltd. jointly held by Guangdong Hengjian Investment Holdings Co., Ltd., Guangzhou Chengfa Starlight Investment Partnership (Limited Partnership), and Science City Investment Group Co., Ltd. for a total consideration of approximately 9.325 billion yuan. After the transaction is completed, TCL Technology will achieve full ownership of Guangzhou Huaxing.

In addition, TCL Technology has received the "Notice on Acceptance of Application Documents for TCL Technology Group Co., Ltd. to issue shares to purchase assets and raise supporting funds" issued by the Shenzhen Stock Exchange on April 29, 2026. This transaction still needs to be reviewed by the Shenzhen Stock Exchange and approved by the China Securities Regulatory Commission for registration. There is still uncertainty as to whether it can ultimately pass the review and obtain registration, and when it will finally pass the review and obtain registration.

It is reported that the counterparties to this transaction are state-owned assets platforms of Guangdong Province and Guangzhou Municipality such as Hengjian Investment, Chengfa Investment, and Science City Investment. In the transaction consideration, cash and share payment each accounted for 50%. At the same time, TCL Technology also plans to raise 4.662 billion yuan in supporting funds from no more than 35 specific investors, which will mainly be used to pay cash consideration.

It is worth noting that Guangzhou CSOT is a large-size panel production base (t9 project) established by TCL CSOT in conjunction with local government investment in 2020, with a total investment of 35 billion yuan. Previously, TCL Technology held 55% of its equity through subsidiaries. The acquisition of the remaining 45% minority stake is aimed at further streamlining the management system and improving decision-making efficiency.

As the core profit engine of TCL Technology, TCL CSOT performed steadily in the first quarter of 2026, achieving operating income of 25.18 billion yuan, net profit of 1.85 billion yuan, and net profit attributable to TCL Technology shareholders of 1.56 billion yuan.

From the perspective of business layout, the large-size display field is still the basic market, and high-end TV solutions with HVA Ultra technology as the core are continued to be promoted; the mid-size field has significant advantages. According to the performance report, TCL CSOT MNT maintains its second place in the global market, with a market share increased by 3% compared with 2025. It ranks first in the global market of e-sports displays, and its laptop and automotive business has achieved rapid growth. In the small size field, super pixel technology is applied to flagship models of head phone brands on a large scale. In the field of dedicated display business, we completed the strategic merger and acquisition of Chuangke Optoelectronics, and cooperated with partners such as Dongfang Kemai to jointly promote the electronic paper machine project. In the field of MLED, it has successfully completed the equity transfer of Fujian Zhaoyuan Optoelectronics Co., Ltd. with Fujian Electronic Information Group and changed its name to Fuzhou Huazhao Optoelectronics Co., Ltd.

In addition, TCL Technology’s layout in new display technologies is entering the harvest period. According to disclosures, Guangzhou’s 8.6-generation printed OLED production line (t8 project) is expected to be capped in the second quarter of this year, and the main equipment will be moved in in the fourth quarter; Wuhan’s 5.5-generation printed OLED production line (t12) has stabilized mass production of medical display products, and IT products are planned to be launched on the market in the third quarter.