TCL Technology Group Corporation (000100) is accelerating the acquisition of minority stakes in high-generation production lines, which is expected to further enhance the parent company's net profit.
On December 15, TCL Technology announced that its subsidiary, TCL China Star Optoelectronics Technology, plans to acquire a 10.7656% stake in Shenzhen China Star Optoelectronics Semiconductor Display Technology for 6.045 billion yuan in cash. Upon completion of the transaction, TCL's total stake in Shenzhen China Star will increase from 84.2105% to 94.9761%, significantly boosting the company's profitability.
Shenzhen China Star specializes in semiconductor display business, operating two of the world's most advanced G11 production lines (TCL's t6 and t7 factories). These facilities primarily manufacture large-sized TFT-LCD display components for televisions and commercial displays, offering customized production services. This acquisition will strengthen TCL's core competitiveness in the semiconductor display industry.
Financially, Shenzhen China Star reported total assets of 68.04 billion yuan and net assets of 44.85 billion yuan as of December 31, 2024, with annual revenue of 24.158 billion yuan and net profit of 2.807 billion yuan. By June 30, 2025, its total assets decreased to 64.769 billion yuan while net assets grew to 46.564 billion yuan, generating 12.023 billion yuan in revenue and 1.709 billion yuan in net profit for the first half of 2025. The declining debt-to-asset ratio and increasing net profit margin demonstrate the company's improving financial health.
The semiconductor display industry is experiencing optimized supply-demand dynamics, with growing demand for larger panels. As the year-end approaches, the TV panel market enters its peak season. Industry research indicates TV panel prices stabilized in December.
Looking ahead, China's Central Economic Work Conference concluded on December 11 confirmed the continuation of policies supporting equipment upgrades and consumer electronics trade-ins in 2026. These measures, particularly the consumer subsidy program, are expected to boost demand for display panels.
The 2026 FIFA World Cup, jointly hosted by the United States, Canada, and Mexico, will feature 48 teams playing 104 matches over 40 days - the largest tournament in history. This global sporting event is anticipated to significantly increase demand for large-sized TV panels, directly benefiting Shenzhen China Star's core business.
Market analysts note that acquiring high-quality, advanced production lines ahead of anticipated demand growth positions TCL Technology to secure substantial profits. The company stated that this acquisition will increase its stake in Shenzhen China Star, thereby enhancing shareholder returns through improved profitability.
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