Involved in a case worth 135 million! A subsidiary of a well-known LED company is embroiled in an engineering contract dispute.

On the evening of September 14, Opto Electronics announced that its wholly owned subsidiary, Shenzhen Qianbaihui Intelligent Engineering Co., Ltd. (hereinafter referred to as “Qianbaihui”), recently received the Civil Complaint and other relevant litigation documents served by the Intermediate People’s Court of Wuhai City, Inner Mongolia Autonomous Region, with the disputed amount currently estimated at RMB 135 million.

Due to a dispute over a construction contract, Inner Mongolia Qianyi Hui Smart City Construction Co., Ltd., Chen Rongkai, Huang Changli, and Huang Lintao have filed a lawsuit against Qianbaihui, naming Inner Mongolia Zhongji Smart City Construction Co., Ltd. and the Wuhai Municipal Public Utilities Development Center as third parties in the case.

The plaintiff claims to be the actual contractor for Wuhai City’s urban lighting infrastructure and lighting‑tourism PPP project, requesting the court to order the defendant, Qianbaihui, to pay the plaintiff RMB 109 million in compensation for the value of the works, plus corresponding interest, for a total provisional amount of RMB 135 million.

At present, the court has formally accepted the case for first‑instance proceedings and scheduled a hearing; as of the date of this announcement, no trial has yet been held.

Opto Electronics stated that the claimed amount in this lawsuit represents only the plaintiff’s unilateral assertion, and that the company and its subsidiary do not recognize these claims. The company will actively defend itself in accordance with the law and reserves the right to seek compensation for all losses incurred as a result of the plaintiff’s actions.

Given that no judgment has yet been rendered, it is currently impossible to accurately assess the impact of this case on either the current or future periods’ profits.

The announcement further indicates that, aside from this ongoing litigation, the company and its subsidiaries within the consolidated financial statements have accumulated new lawsuits and arbitrations totaling RMB 57.8345 million over the past 12 consecutive months—equivalent to 4.33% of the company’s audited net assets for fiscal year 2025.

According to available information, Opto Electronics’ main product lines include LED video display systems, intelligent network integration solutions and equipment, smart landscape lighting projects, as well as software and content. In recent years, the company has consistently pursued an “AI + Video” strategy, accelerating the commercialization of AI‑driven and intelligent video technologies, implementing a major‑client and large‑project approach, strengthening its competitive edge in niche markets such as virtual production, LED cinema screens, and large‑scale transportation advertising, and striving to become a single‑category champion across multiple sectors. At the same time, the company is expediting expansion into emerging markets like virtual live streaming, immersive spaces, and new retail, thereby creating a second growth trajectory.

Recently, Opto Electronics’ MicroLED intelligent manufacturing center was completed and put into operation. The newly commissioned smart workshop focuses on mass‑producing high‑end ultra‑high‑definition panels with pixel pitches ranging from P0.3 to P1.5, equipped with both COB and COG advanced packaging technologies. Chip‑bonding precision reaches ±5 μm, enabling flexible adaptation to mass‑production needs for the full range of Micro and Mini products, as well as customized orders. According to the company, leveraging over 95% automated production capacity and a digital central control system, product yield can remain stable above 99.99%. These products are expected to find wide application in high‑end retail, ultra‑clear cinemas, AR/VR, professional film and television production, and premium outdoor advertising, effectively bolstering the company’s high‑end production capabilities and supporting its continued advancement in the premium display market.

Image source: Opto Electronics

In the first half of 2026, the company reported operating revenue of RMB 416 million, up 32.83% year over year, and net profit attributable to shareholders of RMB 13.67 million, an increase of 64.22% compared to the same period last year.

Qianbaihui boasts many years of experience in domestic landscape lighting projects and serves as a key platform for Opto Electronics’ strategic deployment in the smart landscape lighting sector; however, its performance in recent years has fallen short of expectations.

In earlier years, numerous landscape lighting PPP projects became hotspots for litigation due to long project cycles, budgetary constraints, challenges in confirming project scope, and multi‑tiered subcontracting arrangements—posing significant operational risks that the lighting industry must vigilantly address.