TECH

TCL Tech to Buy Back Panel Unit Stake for $1.3 Billion

Published: Apr. 1, 2026 9:17 p.m. GMT+8

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TCL Tech will pay half of the 9.3 billion yuan in cash, with the remainder settled through share issuance. Photo: VCG

TCL Technology Group Corp. plans to acquire stakes held by local government investors in a key display-panel subsidiary for 9.3 billion yuan ($1.35 billion).

The deal underscores a common financing model in the Chinese mainland’s capital-intensive panel industry, where manufacturers draw on local government funding to build multibillion-dollar production facilities and later repurchase those stakes as projects turn profitable.

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TCL Tech to buy 45% stake in Guangzhou China Star from gov't platforms for 9.3B yuan ($1.35B), half cash, half shares.
Guangzhou China Star's t9 plant: 2025 net profit 1.2B yuan (>4x YoY), revenue 16B yuan (up 94%).
Deal boosts profitability; part of ~20B yuan 2025 repurchases; dilutes chairman's stake to 5.8%.

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Who’s Who

TCL Technology Group Corp.: TCL Technology Group Corp. plans to buy a 45% stake in subsidiary Guangzhou China Star Optoelectronics Technology Co. Ltd. for 9.3 billion yuan ($1.35B) from Guangdong/Guangzhou gov-backed investors. Half paid in cash (via share issuance), half in shares. Guangzhou China Star's t9 LCD plant turned highly profitable in 2025, with net profit up 4x to 1.2B yuan. Deal boosts TCL Tech's profitability. (68 words)

Guangzhou China Star Optoelectronics Technology Co. Ltd: Guangzhou China Star Optoelectronics Technology Co. Ltd, a TCL Technology subsidiary, operates the t9 plant—an 8.6-generation LCD panel line started in Sept. 2022, key to IT panel market entry. In 2025, its net profit surged >4x to 1.2B yuan; revenue +94% to 16B yuan. TCL plans to buy 45% stake from gov't investors for 9.3B yuan.

Shenzhen China Star Optoelectronics Semiconductor Display Technology Co. Ltd: TCL Tech repurchased remaining stakes in Shenzhen China Star Optoelectronics Semiconductor Display Technology Co. Ltd. from a Shenzhen government-backed fund for more than 17 billion yuan in 2025, as part of nearly 20 billion yuan spent on early-stage investment buybacks.

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