Zheng Quan Shi Bao·2025-12-15 13:05Core Viewpoint - TCL Technology is accelerating the acquisition of minority stakes in high-generation production lines, which is expected to further enhance the net profit attributable to the parent company [1]. Group 1: Acquisition Details - TCL Technology's subsidiary, TCL Huaxing, plans to acquire 10.7656% of Shenzhen Huaxing Semiconductor Display Technology Co., Ltd. for 6.045 billion yuan, increasing its total control from 84.2105% to 94.9761% [1]. - The acquisition is anticipated to effectively improve the company's profitability [1]. Group 2: Business Focus and Financials - Shenzhen Huaxing Semiconductor focuses on semiconductor display business, operating two G11 display panel production lines, primarily producing large-size TFT-LCD display devices for TVs and commercial displays [4]. - As of December 31, 2024, Shenzhen Huaxing Semiconductor reported total assets of 68.04 billion yuan and net assets of 44.85 billion yuan, with projected revenue of 24.158 billion yuan and net profit of 2.807 billion yuan for the same year [4]. - By June 30, 2025, total assets are expected to be 64.769 billion yuan, net assets 46.564 billion yuan, with revenue of 12.023 billion yuan and net profit of 1.709 billion yuan for the first half of 2025 [4]. Group 3: Market Trends and Future Outlook - The large-size semiconductor display industry is experiencing an improved market structure, with healthy supply-demand dynamics and steady growth in demand driven by larger screen sizes [5]. - The upcoming FIFA World Cup in 2026 is expected to significantly boost demand for large-size TV panels, benefiting Shenzhen Huaxing Semiconductor [5]. - The central economic work conference has confirmed the continuation of the "two new" policy, which is expected to stimulate demand for consumer electronics and display panels [5]. Group 4: Strategic Implications - Completing the acquisition of high-generation production lines before a surge in demand for large-size display products is seen as a strategic move to secure substantial profits [6]. - The increase in equity stake in Shenzhen Huaxing Semiconductor will enhance the profit level attributable to TCL Technology's shareholders, allowing them to better share in the economic benefits realized by Shenzhen Huaxing Semiconductor [6].