TCL Huaxing acquires Zhaoyuan Optoelectronics for 490 million yuan

According to official information released by Fujian Province Electronic Information Group, on December 29, the group and TCL Huaxing Optoelectronics Technology Co., Ltd. officially held a signing ceremony for Fujian Zhaoyuan Optoelectronics Co., Ltd. to introduce strategic investors. The signing of the contract marks the in-depth collaboration between the two parties in the field of semiconductor display industry chain. It will promote Zhaoyuan Optoelectronics to achieve high-quality development through resource integration and complementary advantages, and at the same time inject new momentum into the upgrading of the regional optoelectronic industry. As a key LED chip manufacturing enterprise in Fujian Province, Zhaoyuan Optoelectronics has a solid foundation in technology research and development, production capacity scale and market expansion; while TCL Huaxing, as a leader in the global semiconductor display industry, has profound technical accumulation, rich market resources and advanced operating experience. The two parties will deepen cooperation around the three core directions of technology iteration, capacity coordination and market expansion to help Zhaoyuan Optoelectronics enter a new stage of development.

Behind the signing of this contract is the bidding for underlying assets completed by TCL Caxing. According to industry media experts Display reported that on December 26, TCL Technology issued an announcement revealing that the company's subsidiary TCL Huaxing successfully won the 80% equity and related creditor's rights of Zhaoyuan Optoelectronics held by Fujian Province Electronic Information Group. The final transaction price was 490 million yuan. The announcement made it clear that Zhaoyuan Optoelectronics will become a holding subsidiary of TCL China Star after the transaction is completed. This move also marks another key step in TCL China Star's layout of the LED display upstream industrial chain, and it is a step towards building a vertical integration system for the entire industrial chain. important steps.

According to public information, Zhaoyuan Optoelectronics 'core business focuses on the research and development, production and sales of LED epitaxial wafers and chips. It has a complete LED chip production line, large-scale production capacity and a mature business foundation. Its products cover backlights, Mini LED direct displays, and car lighting. In many high-value application areas, it has outstanding relative competitiveness in relevant sub-tracks. However, financial data shows that the company is still in a state of loss: in 2024, it will achieve operating income of 880 million yuan and a net loss of 389 million yuan; from January to October 2025, operating income will be 710 million yuan, and a net loss of 299 million yuan. There is still much room for improvement in profits.

Regarding the strategic value of this acquisition, TCL Technology has previously made clear plans in the announcement. After the transaction is completed, TCL Huaxing will rely on the existing assets and business of Zhaoyuan Optoelectronics to accelerate the establishment and integration of the LED vertical industrial chain system, focus on accelerating the research and development breakthrough of Mini/Micro LED high-end display technology, and promote its application in high-end TV, commercial large screens, car displays and other high-quality new display scenarios implemented. At the same time, TCL Huaxing will give full play to its own advantages to provide all-round empowerment to Zhaoyuan Optoelectronics in multiple dimensions such as manufacturing, technology, and market. By coordinating existing business and technical resources such as direct display, vehicle-mounted and backlight, it will introduce high-quality major customers. Resources, help Zhaoyuan Optoelectronics enhance product competitiveness and scale effect, and ultimately improve its profitability.

The signing of the introduction of strategic investors is a key turning point in the development process for Zhaoyuan Optoelectronics. It marks a substantial step forward in improving the company's core competitiveness in the field of LED chips and accelerating industrial upgrading. It is expected to take advantage of TCL Huaxing's resource advantages to achieve leapfrog development. From the perspective of regional industrial development, this cooperation will further consolidate the development foundation of the optoelectronic industry cluster in Fujian Province, inject strong impetus into the transformation and upgrading of regional industries, and promote the formation of a new pattern of coordinated industrial development led by leaders + upgrading local enterprises.