998 million yuan, BOE once again increased its holdings in BOE Huacan Optoelectronics

On April 27, BOE Huacan Optoelectronics Co., Ltd. issued an announcement announcing the signing of a conditionally effective share subscription agreement with its controlling shareholder, Tokyo Oriental Technology Group Co., Ltd.

According to the announcement, BOE plans to subscribe in cash for the A shares issued by BOE Huacan Optoelectronics to specific targets in 2026, with the subscription amount not exceeding 998 million yuan. The issuance price is determined to be 10.19 yuan per share, and the number of issuances will not exceed 97.939 million shares. All funds raised, after deducting relevant issuance expenses, will be used to supplement the company's liquidity.

As early as 2022, BOE officially acquired Huacan Optoelectronics through agreement transfer and subscription, aiming to master the core technology of upstream LED chips and improve its entire industry chain layout in the Mini/Micro LED field.

Since completing the controlling stake in 2023, BOE Huacan Optoelectronics has become an important source of MLED business in BOE Screen’s Internet of Things strategy.

In March last year, BOE Huacan Optoelectronics completed product delivery at its Micro LED wafer manufacturing and packaging testing base in Jinwan District, Zhuhai. This is the world's first Micro LED production line to achieve large-scale mass production, mainly targeting high-end markets such as large-size commercial displays, AR/VR and automotive displays.

In November of the same year, the LED project of BOE Huacan Optoelectronics (Suzhou) Co., Ltd. with a total investment of 2 billion yuan was also put into production in Zhangjiagang Economic Development Zone. The project focuses on high-value tracks such as automotive and plant lighting. The factory's overall monthly production capacity is nearly 500,000 pieces, an increase of more than 70% compared with before the expansion. It is expected that the output value will increase by more than 50% and the overall production efficiency will increase by 20%.

In addition to LED display and lighting application products, BOE Huacan Optoelectronics is currently expanding its strategic focus to the field of optical interconnection in intelligent computing centers and launching the research and development and mass production layout of Micro LED optical modules.

Relying on the Zhuhai Micro LED project, BOE Huacan Optoelectronics is developing low-power, high-bandwidth optical interconnect modules for AI server scenarios. The company has previously delivered Micro LED optical communication samples to overseas leading customers for verification, and has reached strategic cooperation with display driver chip company New Phase Micro.

This time, BOE once again invested nearly 1 billion yuan to increase its shareholding, which reflects the controlling shareholders’ confidence in BOE Huacan Optoelectronics’ future development prospects and further strengthens the bond between the two parties in technology research and development and industrial collaboration.

From a strategic perspective, BOE is currently comprehensively promoting the business development structure of the 1+4+N+ ecological chain. Among them, MLED is listed as one of the four main fronts, and BOE Huacan Optoelectronics serves as the upstream core technology support of this sector. Through this fundraising, it can effectively optimize the capital structure, improve financial status, and enhance the overall anti-risk ability.

BOE Huacan Optoelectronics also reminded in the announcement that from the beginning of 2026 to the date of the announcement, the total amount of various related transactions that have occurred between the company and BOE is 50.8307 million yuan.