Core Viewpoint - Xinhau Optoelectronics plans to transfer 100% equity of Anhui Xinguang to Luxshare Precision, which may provide financial support to Xinhau Optoelectronics as it faces losses in 2024 and the first quarter of 2025 [2][6][11]. Group 1: Transaction Details - On June 22, Xinhau Optoelectronics announced the signing of an equity transfer intention agreement with Luxshare Precision for the cash acquisition of Anhui Xinguang [6]. - This transaction is classified as a related party transaction due to the familial relationship between major shareholders of Xinhau Optoelectronics and Luxshare Precision [2][19]. Group 2: Financial Performance - Xinhau Optoelectronics reported significant losses in 2024, with a net profit attributable to shareholders of -353.38 million yuan and a non-recurring net profit of -364.77 million yuan [11][12]. - The company's revenue for 2024 was approximately 1.69 billion yuan, reflecting a decrease of 2.72% compared to 2023 [12]. Group 3: Business Challenges - The company has faced challenges in its photovoltaic business, primarily due to an oversupply in the market leading to declining prices and increased costs [9][10]. - Xinhau Optoelectronics aims to focus on its glass protection screen business and develop hybrid energy storage projects following the asset transfer [13]. Group 4: Market Position and Strategy - Xinhau Optoelectronics is attempting to expand its domestic market presence, but high industry barriers have limited its competitiveness and revenue generation [10]. - The company has been actively restructuring its asset portfolio to optimize resource allocation and improve overall performance [13].