Cancelled the fixed increase, TCL Technology adjusted the purchase of 45% equity plan of Guangzhou Huaxing Semiconductor

On June 2, TCL Technology announced that the company adjusted the plan of issuing shares and paying cash to purchase 45% equity of Guangzhou Huaxing Semiconductor, and cancelled the arrangement of raising supporting funds in this transaction.

Looking back, on March 31, 2026, TCL Technology announced that it intends to issue shares and pay cash to purchase 45% equity of Guangzhou Huaxing Semiconductor, and intends to issue shares to no more than 35 eligible specific objects to raise supporting funds. After the completion of the transaction, TCL Technology directly and indirectly controls 100% of the total equity proportion of Guangzhou Huaxing Semiconductor. The asset underlying the transaction was valued at RMB 9,324,807,200, of which the consideration amount for the issued shares was RMB 4,662,403,600, and the consideration amount for cash payment was RMB 4,662,403,600. The total amount of supporting funds raised shall not exceed 466,240.36 million yuan. After deducting the intermediary fees and related transaction taxes, they will all be used to pay the cash consideration for this transaction.

According to the announcement, in the normal progress of the project of issuing shares and paying cash for the purchase of assets, the cash consideration has been started to be paid through its own funds. Considering the interests of all shareholders and the continuous positive trend of the company's business development, the company deliberated and adopted the "Proposal on Cancelling the Raising of Supporting Funds for the Issue of Shares to Purchase Assets" and other relevant motions on June 1, and decided to cancel the arrangement of raising supporting funds in this transaction.

After the adjustment of the plan, the company will no longer issue shares to specific investors to raise matching funds. The funds to be invested in the original raising of matching funds will be resolved by the company through a combination of its own funds and self-financing. In addition to the above adjustments, the core contents of this transaction remain unchanged and there are no other substantive adjustments.

According to the data, Guangzhou Huaxing Semiconductor is the operating body of TCL Huaxing t9 factory. It has the first G8.6 generation oxide semiconductor display panel production line specializing in high-end IT and professional displays in China, which is one of the few 8.6 generation a-Si/oxide semiconductor display panel production lines in the world that has been mass-produced.

From 2024 to 2025, the operating revenue of Guangzhou Huaxing Semiconductor increased from 8.248 billion yuan to 16.040 billion yuan, an increase of 94% year-on-year; the net profit increased from 274 million yuan to 1.158 billion yuan, an increase of 322% year-on-year. According to the previous announcement, the main business revenue forecast of Guangzhou Huaxing Semiconductor from 2026 to 2031 is as follows: 16.316 billion yuan in 2026, 17.238 billion yuan in 2027, 17.608 billion yuan in 2028, 18.201 billion yuan in 2029, 18.703 billion yuan in 2030, and 18.719 billion yuan in 2031.

TCL Technology said that the acquisition of a minority stake in its subsidiary, Guangzhou Huaxing Semiconductor, will help the company further strengthen its main business and further enhance its core competitiveness in the semiconductor display industry.