TCL 科技 announced today that it has received approval from the China Securities Regulatory Commission (CSRC) for its acquisition of a 45% stake in Guangzhou TCL Huaxing Semiconductor Display Technology Co., Ltd. This company is the operational entity behind TCL Huaxing’s T9 production line.
Full Ownership Secured
The total transaction value stands at approximately 9.325 billion yuan (approximately $1.3 billion USD), with half paid in cash and the other half in shares. Upon completion, TCL 科技 will directly and indirectly control 100% of Guangzhou Huaxing Semiconductor. Previously, TCL 科技 held a 55% stake through TCL Huaxing, with the remaining 45% held by three state-owned shareholders: Guangdong Hengjian Investment, Guangzhou Chenfa Xingguang, and Science City (Guangzhou) Investment.
This acquisition represents the consolidation of a core subsidiary already included in TCL 科技’s consolidated financial statements. While the profits from the 45% stake were previously allocated to minority shareholders, they will now fully benefit the listed company’s shareholders.
Financial Impact and Future Outlook
Following the acquisition, TCL 科技’s net profit attributable to the parent company is projected to increase from 4.517 billion yuan to 5.038 billion yuan, a rise of 11.53%. The basic earnings per share will also see an improvement, moving from 0.2333 yuan to 0.2459 yuan.
Guangzhou Huaxing Semiconductor is expected to generate approximately 2.1 billion yuan in profit by 2026. For the first half of 2026, TCL 科技 anticipates its net profit attributable to the parent company to be between 3.7 billion and 3.92 billion yuan, a significant year-on-year increase of 96% to 108%, primarily driven by the semiconductor display business.
T9 Production Line Significance
The T9 production line, with a total investment of 35 billion yuan, is designed for a monthly capacity of 180,000 glass substrates. It is noted as China’s first high-generation oxide production line specifically targeting high-end IT and professional displays. By 2025, the T9 line is projected to achieve revenues of 16.039 billion yuan and a net profit of 1.158 billion yuan. In the first half of 2026, it is expected to generate revenues of 7.926 billion yuan and a net profit of 1.154 billion yuan.
This strategic move solidifies TCL 科技’s control over a critical asset in the advanced display market.
