Group 1 - The core viewpoint emphasizes the importance of chemical safety in industrial production for human health, ecological environment, and sustainable development [1] - TCL Technology has established a dedicated department within its manufacturing subsidiary to manage the entire chemical risk identification and control process, ensuring compliance with harmful substance management requirements [1] - TCL Huaxing has created a comprehensive list of hazardous chemicals and is implementing a Failure Mode and Effects Analysis (FMEA) mechanism for specialty gases, covering 40 types of specialty gases and 46 types of miscellaneous chemicals, identifying 4,160 risks and rectifying 240 hazards [1] Group 2 - In supply chain collaboration, TCL Huaxing aims to build a net-zero, circular, and trustworthy green industry chain by exploring low-power, non-toxic, and renewable material applications with upstream suppliers [4] - The company adheres to regulations such as RoHS, REACH, and TSCA, and has established harmful substance management standards, requiring material suppliers to sign declarations to ensure compliance with green product requirements [4] Group 3 - The GPMS (Green Product Management System) allows for proactive screening and planning for the replacement of harmful substances, while also communicating regulatory updates and company requirements to suppliers [5] - As of the reporting period, the company has received feedback from 400 suppliers regarding the REACH SVHC investigation, which helps identify supply chain risks and improve management systems [5] Group 4 - TCL Huaxing has developed a harmful substance management standard to promote the replacement and elimination of hazardous chemicals, particularly in response to stringent global regulations on PFAS [7] - The company plans to ensure that all product lines have PFAS-free materials available for mass production by the end of 2026 [7] Group 5 - The company is continuously optimizing the functionality of the GPMS to systematically manage harmful substances in the supply chain and support green procurement [8] - The system includes a database of basic chemical substances and environmental control requirements, facilitating the submission of eco-friendly materials by suppliers and enabling tracking of material compositions [8]

Core Viewpoint - Huike's first self-developed and manufactured OLED module successfully lit up, marking a strategic achievement in the OLED sector and overcoming core process barriers [1][3]. Group 1: Product Development - The OLED module utilizes innovative oxide semiconductor backplane technology combined with a hybrid panel architecture, completing the full process verification from design to trial production in five months [3]. - This successful launch fills Huike's gap in the OLED field and supports the establishment of a comprehensive product system covering LCD, Mini LED, and OLED across various sizes [3]. Group 2: Business Strategy - Huike's main business involves the research and manufacturing of semiconductor display panels and smart display terminals, with existing technologies including a-Si TFT-LCD, Oxide TFT, Oxide RGB OLED, Oxide LCD, and Mini LED [3]. - As of June this year, Huike's updated prospectus indicates that self-developed oxide OLED, RGB OLED, and ultra-low frequency OLED products have entered trial production [3]. Group 3: Strategic Acquisitions - In January 2025, Huike acquired part of the flexible display industrial park assets from Royole Technology for approximately 504 million RMB, seen as a key step for rapid entry into the OLED market [4]. - This acquisition allows Huike to leverage Royole's legacy G5.5 flexible OLED production line and oxide TFT technology, which is more suitable for large-size flexible products, thereby enhancing its OLED technological capabilities [4].

Group 1: LCD Industry Performance - The average utilization rate of the LCD industry has been above 80% since November 2024, with a gradual increase in Q1 2025, followed by a decline in Q2 due to reduced demand [1] - In July, prices for certain sizes of LCD TV products experienced a slight decrease, while prices for MNT and NB panels remained stable [2] Group 2: Company Financials and Depreciation - The company's depreciation for 2024 is estimated at approximately 38 billion, with all 8.5 generation production lines having completed depreciation [3] - Depreciation is expected to peak this year as new projects are completed and mature production lines reach the end of their depreciation period [3] Group 3: Capital Expenditure and Strategic Focus - Future capital expenditures will focus on semiconductor display business and align with the company's "Screen IoT" strategy, emphasizing innovation in IoT, sensors, MLED, and smart medical engineering [4][5] - The company plans to selectively repurchase minority shareholder equity based on operational status and cash flow [5] Group 4: AMOLED Business Development - The company has established a competitive position in the flexible AMOLED market, covering major top brand clients and increasing the proportion of high-end products like LTPO and foldable displays [5] - The 8.6 generation AMOLED production line project in Chengdu began equipment installation four months ahead of schedule, transitioning from construction to operational phase [5]

Core Viewpoint - Huike Co., Ltd. is entering the inquiry stage for its main board IPO, aiming to raise 8.5 billion yuan for various projects in the semiconductor display sector [1][2]. Group 1: Company Overview - Huike specializes in the semiconductor display field, focusing on the research and manufacturing of semiconductor display panels and smart display terminals [1]. - The company has developed technologies including a-Si TFT-LCD, Oxide TFT, Oxide RGB OLED, Oxide LCD, and Mini LED [1]. Group 2: IPO Details - The IPO aims to raise 8.5 billion yuan for three key projects: - "Changsha New OLED R&D Upgrade Project" with a total investment of 3 billion yuan - "Changsha Oxide R&D and Industrialization Project" with a total investment of 3 billion yuan - "Mianyang Mini-LED Intelligent Manufacturing Project" with a total investment of 2.5 billion yuan [1]. Group 3: Financial Performance - Projected revenues for Huike from 2022 to 2024 are 27.134 billion yuan, 35.797 billion yuan, and 40.310 billion yuan respectively, with net profits of -1.428 billion yuan, 2.566 billion yuan, and 3.339 billion yuan [2]. - Main business revenue is expected to come from semiconductor display panels and smart display terminals, with sales volumes of 170 million, 332 million, and 443 million units from 2022 to 2024 [2].

Core Viewpoint - Both TCL Technology and Ruile New Materials expect their performance to rise in the first half of 2025, with significant growth in net profits and revenues [1][2][7]. TCL Technology - For the first half of 2025, TCL Technology anticipates revenue between 82.6 billion and 90.6 billion yuan, representing a year-on-year growth of 3% to 13% [2]. - The net profit attributable to shareholders is expected to be between 1.8 billion and 2 billion yuan, showing a year-on-year increase of 81% to 101% [2]. - The net profit after excluding non-recurring gains and losses is projected to be between 1.5 billion and 1.65 billion yuan, reflecting a growth of 168% to 195% [2]. - The semiconductor display business is expected to achieve a net profit exceeding 4.6 billion yuan, with a year-on-year increase of over 70% [3]. - The company is focusing on optimizing its display business layout and product structure to enhance competitive advantages and profitability [5]. - The acquisition of a 21.5311% stake in Shenzhen Huaxing Optoelectronics Semiconductor Display Technology Co., Ltd. was completed on July 1, 2025, further strengthening the company's competitive position [6]. - In the solar energy sector, TCL Technology anticipates challenges due to price declines and inventory impairments, projecting a net profit loss of 1.2 billion to 1.35 billion yuan for the first half of 2025 [6]. Ruile New Materials - Ruile New Materials expects to achieve an operating income of 806 million yuan in the first half of 2025, a year-on-year increase of 16.27% [7]. - The net profit attributable to shareholders is projected to be 162 million yuan, reflecting a year-on-year growth of 69.93% [7]. - The net profit after excluding non-recurring gains and losses is expected to be 157 million yuan, with a year-on-year increase of 80.12% [7]. - The significant growth in the pharmaceutical sector's revenue and improved product structure have contributed to the overall increase in gross margin [7].

Group 1: TCL Technology Performance - TCL Technology forecasts revenue for the first half of 2025 to be between 82.6 billion to 90.6 billion yuan, representing a year-on-year growth of 3% to 13% [1] - The company expects net profit attributable to shareholders to be between 1.8 billion to 2 billion yuan, showing a significant year-on-year increase of 81% to 101% [1] - The semiconductor display business is a key driver for revenue and profit growth, with expected net profit exceeding 4.6 billion yuan, a year-on-year increase of over 70% [1] Group 2: Business Segments and Market Trends - In the large-size display sector, the company benefits from an optimized supply-side structure and a trend towards high-end and large-size products, leading to continued growth in area demand [1] - The mid-size segment sees significant growth in IT product sales and revenue, with ongoing improvements in business profitability [1] - The small-size OLED business has shown notable success due to its high-end strategy [1] Group 3: Future Outlook - TCL Technology has integrated LG Display (China) Co., Ltd. into its consolidated scope starting from the second quarter of 2025 [1] - The acquisition of a 21.5311% stake in Shenzhen Huaxing Optoelectronic Semiconductor Display Technology Co., Ltd. was completed on July 1, 2025 [1] Group 4: TCL Zhonghuan Performance - In the first half of 2025, TCL Zhonghuan is expected to report a net profit attributable to shareholders ranging from -1.2 billion to -1.35 billion yuan [2] - The company faces operational pressure due to an imbalance in supply and demand across the industry chain, alongside declining product prices and inventory impairment [2]

Core Viewpoint - TCL Technology has successfully completed a significant acquisition, enhancing its position in the display business by acquiring a 21.5311% stake in Shenzhen Huaxing Semiconductor, bringing its total ownership to 84.2105% [1][4][5] Group 1: Acquisition Details - The acquisition of Shenzhen Huaxing Semiconductor was valued at 115.62 billion yuan, with 72.03 billion yuan paid in cash and 43.59 billion yuan through the issuance of new shares [4] - The company will issue approximately 986 million new shares, which are set to be listed on July 10 [4] - Following the transaction, Shenzhen Major Industry Development Fund will become a major shareholder with a 4.99% stake, while the chairman's shareholding will be diluted from 6.74% to 6.40% [4] Group 2: Strategic Focus - TCL Technology is focusing on three core business areas: semiconductor display, new energy photovoltaic, and semiconductor materials, with the semiconductor display business becoming a primary revenue source [1][5] - The company aims to strengthen its core competitiveness in the semiconductor display industry through this acquisition, reinforcing its leading position [5] Group 3: Financial Performance - In the first quarter of 2025, TCL Technology reported a net profit attributable to shareholders of 9.58 billion yuan, marking a year-on-year increase of 1254.24% [2][11] - The company achieved a revenue of 401.19 billion yuan in the first quarter of 2025, a slight increase of 0.43% year-on-year [11] Group 4: Market Position - TCL Technology has established itself as a leader in the global display market, particularly in large-size panels, holding the number one market share for TV panels over 98 inches [9][11] - The company has invested over 260 billion yuan in its semiconductor display business, establishing a strong global presence with multiple high-generation panel lines and module factories [10]

Core Viewpoint - TCL Technology expects a significant increase in net profit for the first half of 2025, driven by strong performance in its semiconductor display business [1] Financial Performance - The company forecasts operating revenue between 82.6 billion and 90.6 billion yuan, representing a year-on-year growth of 3% to 13% [1] - Net profit attributable to shareholders is projected to be between 1.8 billion and 2 billion yuan, indicating a year-on-year increase of 81% to 101% [1] - After excluding non-recurring gains and losses, the net profit attributable to shareholders is expected to be between 1.5 billion and 1.65 billion yuan, reflecting a year-on-year growth of 168% to 195% [1] Business Segments - The growth in performance is primarily attributed to the semiconductor display business, which is expected to generate over 4.6 billion yuan in net profit, marking a year-on-year increase of over 70% [1] - The acquisition of a 21.5311% stake in Shenzhen Huaxing Optoelectronics Semiconductor Display Technology Co., Ltd. is anticipated to enhance the company's competitive advantage [1]

Group 1 - TCL Technology has made substantial progress in acquiring a 21.5311% stake in Shenzhen Huaxing Semiconductor, with a total transaction value of 11.562 billion yuan, combining cash and shares for payment [1][2] - The cash component of the transaction amounts to 7.203 billion yuan, with approximately 4.359 billion yuan raised through a targeted issuance to no more than 35 specific investors [1][2] - Post-transaction, TCL Technology's ownership in Shenzhen Huaxing Semiconductor will increase from 62.68% to 84.21%, enhancing control over core semiconductor display assets [1][2] Group 2 - Shenzhen Huaxing Semiconductor will become a major shareholder of TCL Technology, holding a 4.99% stake, while TCL Technology's chairman and his associates will see their stake diluted from 6.74% to 6.40% [2] - The acquisition is expected to strengthen TCL Technology's main business and enhance profitability, solidifying its competitive position in the semiconductor display industry [2] - TCL Technology focuses on three main sectors: semiconductor displays, new energy photovoltaics, and semiconductor materials, following a significant restructuring in 2018 [2] Group 3 - The semiconductor display business of TCL Technology is projected to achieve a revenue growth of 24.6% year-on-year in 2024, reaching 104.3 billion yuan, with a net profit turnaround from a slight loss to a profit of 6.23 billion yuan [3] - TCL Huaxing is the second-largest panel manufacturer in mainland China, with large-size LCD TV panels as its core strength, contributing approximately 50% of its revenue [3] - Shenzhen Huaxing Semiconductor operates the T6 and T7 factories, which are critical for producing ultra-large size displays, with significant investments in these production lines [3][4] Group 4 - Shenzhen Huaxing Semiconductor was established in June 2016 and initially fully owned by TCL Huaxing, later introducing external shareholders like the Shenzhen Major Industry Development Fund and Samsung Display [4] - Following the recent transaction, the Major Industry Fund's stake will decrease to 10.77%, while TCL Technology's total stake will rise to 84.21%, with Samsung Display retaining 5.0239% of the shares [4]

Core Viewpoint - TCL Technology Group Co., Ltd. is issuing new shares at a price of 4.42 CNY per share to acquire a 21.5311% stake in Shenzhen Huaxing Semiconductor, while also raising supporting funds through a private placement [1][5][7]. Transaction Overview - The transaction consists of two parts: issuing shares and paying cash to acquire assets, and raising supporting funds [4][5]. - The total consideration for the acquisition of the stake in Shenzhen Huaxing Semiconductor is 1,156,209.33 million CNY, with cash payment amounting to 720,268.22 million CNY [5][10]. - After the transaction, TCL will control 84.2105% of Shenzhen Huaxing Semiconductor [4][5]. Fundraising Details - The company plans to raise up to 435,941.11 million CNY through the issuance of shares to no more than 35 specific investors [5][12]. - The funds raised will be used entirely for the cash consideration of the acquisition, after deducting intermediary fees and related taxes [16][17]. Share Issuance and Pricing - The number of new shares issued will be 986,292,106, increasing the total shares to 19,765,372,873 [1][18]. - The issuance price of 4.42 CNY per share is compliant with regulations, being no less than 80% of the average trading price over specified periods [7][12]. Impact on Company Structure - The transaction will not change the company's controlling shareholder or actual controller status, maintaining its structure as a company without a controlling shareholder [4][21]. - The shareholding structure will see the new major shareholder, the Major Industry Fund, holding 4.99% post-transaction [21]. Financial Implications - The transaction is expected to enhance the company's core competitiveness in the semiconductor display industry without altering its main business focus [21][22]. - The total assets will remain unchanged, but liabilities will increase due to the cash payment, while equity will see a rise in the proportion of ownership in the acquired company [21][22]. Governance and Compliance - The company has adhered to all necessary legal and regulatory requirements throughout the transaction process, ensuring no adverse effects on governance mechanisms [22]. - There are no new related party transactions arising from this acquisition, maintaining compliance with existing regulations [22].