Huaying Technology plans to sell 48.92% stake in Fuzhao Semiconductor

On May 22, Huaying Technology announced that in order to further focus on its core business and optimize resource allocation, the company plans to sell 48.92% of its equity interests in Fuzhao Semiconductor. If the final delisting party is a related enterprise, this transaction will constitute a related transaction.

According to Display experts, Fuzhao Semiconductor was established in August 2023. Its main business includes Mini/Micro LED display-related semiconductor components, device manufacturing and sales, and is positioned in the midstream packaging and testing/module link.

The registered capital of Fuzhao Semiconductor is RMB 302,540,716. The ownership structure shows that Fuzhou Huazhao Optoelectronics Co., Ltd. holds 51.08% of its shares, and Huaying Technology holds the remaining 48.92%. Fuzhou Huazhao Optoelectronics was originally Fujian Zhaoyuan Optoelectronics, but was later acquired 80% of the shares by TCL Huaxing and changed its name to Huazhao Optoelectronics (.details).

After the transaction is completed, Huaying Technology will no longer hold any equity in Fuzhao Semiconductor.

Public information shows that Huaying Technology’s core business is focused on the R&D and production of display panels and modules, which are mainly used in small and medium-sized high-end panels such as automotive, industrial control, laptops, and mobile phones. It is a supplier to BYD and Huawei.

According to Huaying Technology, Fuzhao Semiconductor has been affected by factors such as industry environment and market competition in recent years, and its operating performance has not met expectations. This transaction will help the company adjust its asset structure in a timely manner, revitalize inefficient assets, reduce the drag on non-core businesses, and is in the interests of the company and all shareholders.

In 2025, the total revenue of Huaying Technology will drop by more than 20% year-on-year. From 2021 to 2025, the net profits of Huaying Technology attributable to the parent company will be -224 million yuan, -1.223 billion yuan, -1.604 billion yuan, -1.130 billion yuan, and -1.032 billion yuan respectively. The loss trend continued in the first quarter of this year.

The pricing of this transaction is based on the asset appraisal report. According to the appraisal report issued by Fujian Zhongxing Asset Appraisal Real Estate and Land Appraisal Co., Ltd., with March 31, 2026 as the appraisal base date, the appraised value of all the equity of Fuzhao Semiconductor shareholders is 69.3595 million yuan, an increase of 2.0165 million yuan from the book net assets, and the appreciation rate is 2.99%. Accordingly, the listing price of the 48.92% stake held by Huaying Technology will not be lower than the share corresponding to the assessed value.

Huaying Technology stated that this transaction was conducted through public listing, and the final counterparty and transaction price are still uncertain. The company will be publicly listed for sale on the Fujian Provincial Equity Exchange Center and will remind other shareholders that they may exercise their right of first refusal. After the transaction is completed, the scope of the company's consolidated statements will not change.