Guangzhou Huaxing Semiconductor (TCL Huaxing T9) expects a net profit of 1.158 billion yuan in 2025, and TCL Technology plans to issue shares to acquire its minority stake.

On March 30, TCL Technology Group Corporation Limited (000100) issued an announcement. It plans to purchase 45.00% of the equity interest in Guangzhou Huaxing Semiconductor held by Hengjian Investment, Chengfa Investment, and Science City Investment, with the transaction amount of 9.325 billion yuan, by issuing shares and paying cash, and to raise supporting funds.

Guangzhou Huaxing Semiconductor is the operating entity of TCL Huaxing’s t9 plant. It owns one of the first domestically established G8.6-generation oxide semiconductor display panel production lines dedicated to high-end IT and professional displays, and is one of the few G8.6-generation oxide production lines worldwide that have already achieved mass production. The production line adopts its own independently developed high-mobility oxide technology and HFS edge field switching technology, and has industry-leading advantages in areas such as high refresh rate, low power consumption, and high resolution. It has established long-term and stable cooperation relationships with globally well-known brands such as Lenovo, Dell, Samsung, and ASUS, and has already achieved full-capacity production.

According to the announcement, for the fiscal years 2024 to 2025, Guangzhou Huaxing Semiconductor’s operating revenue increased from 8.248 billion yuan to 16.040 billion yuan, a year-on-year increase of 94%. Net profit increased from 274 million yuan to 1.158 billion yuan, a year-on-year increase of 322%, indicating strong momentum of development.

After completion of this transaction, TCL Technology will directly and indirectly control a combined 100% equity interest in Guangzhou Huaxing Semiconductor. This transaction will be beneficial for the listed company to further strengthen its core business, improve profitability, and further enhance its core competitiveness in the semiconductor display industry.

Based on the pro forma data, not considering the impact of supporting funds raised, after this transaction is implemented, the listed company’s shareholders’ equity attributable to the parent company, net profit attributable to the shareholders of the parent company, and basic earnings per share will increase by 6.64%, 11.53%, and 5.40%, respectively.