Major News! 490 Million! This Well-Known LED Company Acquired by a Giant

TCL Technology (000100) plans to acquire an 80% equity stake in Fujian Zhaoyuan Optoelectronics Co., Ltd. (hereinafter referred to as "Zhaoyuan Optoelectronics") for 490 million yuan, thereby independently mastering the design and manufacturing of LED chips and building an autonomous and controllable supply chain system.

On the evening of December 26,TCL Technologyannounced that on November 28, 2025,Fujian Electronics Information (Group) Co., Ltd. (hereinafter referred to as the "Transferor")officially listed for bundled transferits 80% equity interest in Zhaoyuan Optoelectronics and all creditor's rights held by the Transferor against Zhaoyuan Optoelectronics as of March 31, 2025, amounting to 1.759 billion yuan, including principal of 1.64 billion yuan and newly accrued interest and penalty interest of 143 million yuan from April 1, 2025, to March 31, 2026 (collectively referred to as the "Target Assets"), with a listing price of 490 million yuan.

TCL Technology stated that its subsidiary, TCL China Star Optoelectronics Technology Co., Ltd. (hereinafter referred to as "TCL CSOT"), is one of the global leaders in semiconductor display, having been deeply engaged in the semiconductor display industry for over ten years.To improve the layout in the field of next-generation display technology, strengthen the reserve of key core technologies, and build sustainable competitiveness, the company held the 18th meeting of the 8th Board of Directors on December 25, 2025, which reviewed and approved the "Proposal on Participating in the Bidding for 80% Equity Interest and Related Creditor's Rights Projects of Fujian Zhaoyuan Optoelectronics Co., Ltd.", agreeing that TCL CSOT participate in the bidding for the Target Assets, and authorizing the Chairman and his authorized representatives to bid according to the bidding situation and fully decide and handle subsequent matters related to this transaction (if any).

According to disclosures, as of the announcement date, based on the "Bid Result Notification" sent by the Fujian Property Rights Trading Center, TCL CSOT is the final successful bidder, with a final transaction price of RMB 490 million. TCL CSOT will sign the "Equity and Creditor's Rights Transfer Contract of Fujian Zhaoyuan Optoelectronics Co., Ltd." with the transferor as required. Upon completion of this transaction, Zhaoyuan Optoelectronics will become a subsidiary controlled by TCL Technology. According to relevant regulations such as the "Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange," this transaction does not constitute a related-party transaction or a major asset restructuring, and does not require submission to the TCL Technology shareholders' meeting for deliberation.

Data shows that Zhaoyuan Optoelectronics was established on March 7, 2011, focusing on the R&D, production, and sales of LED epitaxial wafers and chips. It is a company controlled by Fujian Electronics Information Group, one of China's Top 100 Electronic Enterprises, and is a key enterprise in Fujian Province as well as a national high-tech enterprise. In 2024, Zhaoyuan Optoelectronics achieved revenue of RMB 888 million and a net profit of -RMB 389 million; from January to October 2025, it achieved revenue of RMB 710 million and a net profit of -RMB 300 million.

TCL Technology stated that Zhaoyuan Optoelectronics possesses complete LED chip production lines, scale production capacity, and business foundation, and has reached industry-leading levels in high-value fields such as backlighting, Mini LED direct display, and automotive lighting, with outstanding relative competitiveness. The main reason for Zhaoyuan Optoelectronics' losses is the unreasonable product structure leading to low gross margins.

(Image source: Zhaoyuan Optoelectronics)

TCL科技认为，本次交易完成后，一方面，TCL华星将基于标的公司现有资产和业务基础加快推进LED垂直产业链体系的搭建与整合，加速TCL华星Mini/MicroLED高端显示技术进程及其在高端电视、商用大屏、车载显示等高质量新型显示场景的产业化应用；另一方面，TCL华星将在制造、技术、市场等方面充分赋能，协同公司直显、车载及背光等现有业务和技术资源，导入大客户资源，提高产品竞争力和规模效应，改善其盈利水平。

TCL Technology stated that this transaction will not have a significant impact on the company's financial status. As the core foundational material for display and lighting technologies, LED chip performance directly determines the picture quality, energy efficiency, and reliability of terminal display products. By entering the LED chip business, the company extends upstream in the industry chain, breaks through supply barriers in key links, achieves autonomous control of core resources, and gradually taps into potential to enhance the integrated value of the industry chain. This transaction is a key measure to build TCL CSOT's full industry chain vertical integration from LED chips to display modules.

With the systematic optimization and improvement of Zhaoan Optoelectronics' production efficiency and the gradual release of scale effects, TCL CSOT will further enrich its diversified product matrix, comprehensively enhance its core competitiveness in high-performance, full-scenario display solutions, continuously consolidate its leading position in the industry, and improve the company's efficiency and benefits.

(Image source: TCL Technology)

Mini LED and Micro LED (collectively referred to as "MLED") are the new generation of technology in the display industry and the focus of competition in the semiconductor display field, with the focal point of MLED competition lying in LED chips.

TCL科技及其兄弟公司TCL电子的主要竞争对手京东方、海信视像之前已分别收购了LED芯片公司华灿光电、乾照光电，提前进行布局。京东方2023年控股华灿光电，2024年投建珠海京东方晶芯MLED生产线，已实现MLED全产业链布局。海信视像基于乾照光电的LED芯片技术，率先推出了RGB-Mini LED电视。

Previously, TCL CSOT, under TCL Technology, had entered into a strategic cooperation with Sanan Optoelectronics, the leading domestic LED chip enterprise, to jointly establish Xinying Company in Xiamen and complete the construction of a Micro LED pilot line. With TCL Technology's acquisition of Fujian Zhaoyuan Optoelectronics, it can now achieve full integration of the MLED industry chain, enabling TCL to gain greater initiative in the new round of competition in MLED semiconductor displays and Mini LED TVs.

Following BOE's acquisition of HC Semitek, Hisense Visual Technology's acquisition of Changelight, and TCL Technology's announcement of the acquisition of Zhaoyuan Optoelectronics, the trend of integrated development between the novel display industry and the LED chip industry has become more pronounced. Leveraging LED chip technology, display companies will find new growth points in areas such as micro-displays, ultra-large-screen premium TVs, commercial large screens, and automotive displays.

Source: Securities Times Network, Yicai, Corporate Announcements