New progress of TCL Huaxing’s acquisition of Zhaoyuan Optoelectronics

On February 26, the State Administration for Market Regulation officially announced the list of unconditionally approved cases of concentration of undertakings from February 2 to February 8, 2026. TCL CSOT's acquisition of the equity of Fujian Zhaoyuan Optoelectronics Co., Ltd. is on the list, marking that the transaction has officially passed regulatory review and entered the substantive delivery and integration stage.

According to experts, Display understands that in November 2025, Fujian Electronic Information Group was officially listed on the Property Rights Exchange Center, bundling and transferring 80% of the equity of Zhaoyuan Optoelectronics and a total of nearly 1.9 billion yuan of debt, with a listing price of 490 million yuan. On December 25 of the same year, TCL Technology’s board of directors reviewed and approved the bidding proposal; the next day, TCL Huaxing was successfully delisted, acquired the underlying assets at the listed price, and became the controlling shareholder of Megatronics.

Zhaoyuan Optoelectronics was founded in 2011 with a registered capital of 1.437 billion yuan. It specializes in LED epitaxy and chips. It has a complete LED chip production line, large-scale production capacity and business foundation, covering high-value fields such as backlighting, Mini LED direct display, and vehicle lighting. Although it is in a loss-making state due to the impact of the industry cycle, its complete manufacturing capabilities and the value of its upstream card slots perfectly complement TCL Huaxing's key shortcomings in the LED chip segment.

After the completion of this transaction, on the one hand, TCL CSOT will accelerate the construction and integration of the LED vertical industry chain system based on the existing assets and business foundation of the target company, and accelerate the process of TCL CSOT Mini/Micro LED high-end display technology and its industrial application in high-quality new display scenarios such as high-end TVs, commercial large screens, and vehicle-mounted displays; on the other hand, TCL CSOT will fully empower in terms of manufacturing, technology, market, etc. Collaborate with existing business and technical resources such as direct display, vehicle-mounted and backlight, introduce large customer resources, improve product competitiveness and scale effect, and improve its profitability.