Wuhan Huaxing Optoelectronics sells 117 LCD module equipment, priced at 33.26 million

On the evening of March 9, China Display Optoelectronics announced that its wholly-owned subsidiary China Display Optoelectronics Huizhou signed an equipment transfer agreement with Wuhan CSOT Optoelectronics, with a transaction price of RMB 33,268,194.62.

According to the agreement, Wuhan China Star Optoelectronics will transfer 117 pieces of equipment and machines to China Display Optoelectronics Huizhou, including polarizer pre-cleaning machines, automatic polarizer attachment machines, blind hole film laminating machines, binding lines, tape removal machines, wet grinding machines, vacuum laminating machines, curing machines, laminating cutting machines, light-shielding glue dispensing machines, assembly machines, welding machines, IT machines, blanking machines, glass defect laser repair machines, microscopes and API probes.

China Display Optoelectronics stated that this batch of equipment was previously used by Wuhan CSOT Optoelectronics to produce LCD modules and was idle after Wuhan CSOT Optoelectronics terminated the relevant production lines. On the other hand, China Display Optoelectronics has been committed to increasing its production capacity. As the equipment can be adjusted according to the Group's specific needs, the Directors believe that the Acquisition enables the Group to increase its production capacity and will help the Group meet its increasingly strong product demand and be able to undertake growing customer orders in a more cost-effective manner.

Data show that Wuhan CSOT is mainly engaged in the production of 6th generation LTP LCD and AMOLED display panels and is the actual holding company of TCL Technology. Huaxian Optoelectronics is also actually controlled by TCL Technology. Its main business includes the manufacturing and sales of flat panel display products such as LCD modules and thin film transistor LCD screens for computers and mobile phones.

It is worth mentioning that on the same day, China Display Optoelectronics also issued a positive profit forecast.

In 2025, the profit attributable to owners of the company's parent company will be no less than RMB 118.8 million, an increase of more than 80% from RMB 66 million in the same period in 2024.

China Display Optoelectronics stated that the increase in profits was mainly due to:

Expanding the customer base through strategic cooperation. By establishing an integrated panel and module business model with TCL China Star Optoelectronics Technology Co., Ltd.'s t9 display panel production line, the company has successfully expanded its brand customer portfolio and driven steady growth in order volume;

core business has grown rapidly. All core business segments of the group continued to expand, with sales of flat panel modules and commercial display products recording a year-on-year increase of more than 100%;

Optimize customer portfolio and product portfolio to achieve economies of scale. Thanks to the expansion of its customer base and optimization of its product structure, the group's total sales volume will increase by more than 75% year-on-year in 2025. Economies of scale effectively reduce unit production costs, driving unit costs down year-on-year.