On the evening of May 21, 2021, TCL technology announced that it plans to increase the capital of its holding subsidiary TCL Huaxing Optoelectronic Technology Co., Ltd. (hereinafter referred to as "TCL Huaxing") by 5 billion yuan with its own funds.

The specific capital increase plan is to determine the price of this capital increase as 1.5525 RMB / 1 RMB registered capital according to the capital increase price of TCL Huaxing made by Samsung display Co., Ltd. in March 2021. The company subscribed a total of 3.221 billion yuan of registered capital, and the remaining 1.779 billion yuan was included in TCL Huaxing capital reserve. TCL technology will sign the capital increase agreement with TCL Huaxing.

According to the announcement, TCL Huaxing's business scope is to build the 8th generation TFT LCD production line in Guangming New Area high tech Industrial Park; R & D, production and sales of thin film transistor liquid crystal display related products and supporting products; Import and export of goods and technology.

Before the capital increase, TCL technology held 81.02% equity of TCL Huaxing; Samsung display Co., Ltd. holds 12.33% equity of TCL Huaxing; Guokai development fund Co., Ltd. holds 4.44% equity of TCL Huaxing; Guangdong Yuecai Trust Co., Ltd. holds 2.21% equity of TCL Huaxing. After the capital increase, the shareholding ratio of TCL technology increased from 81.02% to 83.02%.

TCL technology said that under the background of improving the supply and demand relationship of the semiconductor display industry and significantly increasing the industry concentration, the capital increase will help TCL Huaxing to accelerate the development and application of new display technology around the acceleration of Capacity Upgrading and release, continuous improvement of product structure and layout, and enhance the scale advantage and comprehensive competitiveness of TCL Huaxing in the full-scale field of semiconductor display, Seize the opportunity of the next round of industry competition driven by technology and centered on key industry chain management and control.

At the same time, TCL Huaxing, as the company's core business sector and profit structure, this capital increase will also contribute to the company's business growth and operation improvement, in line with the needs of enterprise value and shareholders' interests.

According to reports, TCL Huaxing has continuously increased the proportion of high-end products such as large-size, 8K and 120Hz, accelerated the introduction of high value-added products such as laptops and vehicles, and focused on the layout of small-size flexible OLEDs, such as under screen camera, folding screen, ltpo and other differentiated technologies, with competitive advantages since it was put into production. It will be mass produced and shipped in succession.

It is reported that in the large-scale field, TCL Huaxing T1, T2, T6 production lines are full of sales and production, T7 is climbing as planned, and the shipping area will increase by 15% year on year in 2020; In the field of small size, T3 production line is full of sales and production, and T4 flexible AMOLED production line is expanded as planned.

At the same time, TCL Huaxing actively arranges new display technologies such as miniled, micro led, flexible OLED and printed OLED, and its products cover high-end display application fields such as large, medium and small size panels and touch control modules, electronic whiteboard, splicing wall, vehicle and electronic competition.

TCL Huaxing, relying on the powerful resource of LCD's own production line, puts forward the unique active driving technology scheme of amorphous silicon, which can realize the super high range of miniled products. While improving the performance of miniled backlight, it can also achieve low cost, greatly enhance the competitiveness of miniled backlight LCD products, and develop a number of miniled backlight products.

In addition, TCL Huaxing also has a layout in miniled glass based direct display technology. In August 2020, TCL Huaxing launched mled star Yao products based on miniled on TFT in the world. In October of the same year, it launched the world's first 142 inch igzo glass based active mled display.

In vehicle field, TCL Huaxing's vehicle miniled technical solution has passed the aecq vehicle standard certification. At present, it has carried out the commercial introduction of miniled with a number of domestic and foreign manufacturers.

In terms of miniled strategic cooperation, in March this year, TCL Huaxing and Riad set up a collaborative innovation office. The cooperation areas include the development of miniled backlight module and new micro LED products in COG / MIP mode.

It is worth mentioning that in terms of micro led, TCL Huaxing and San'an semiconductor set up a joint laboratory for micro led. At present, the two sides have jointly developed a 4-inch igzo glass based am micro LED display laboratory product.

TCL technology said that at present, TCL Huaxing has leading advantages in products, efficiency and technology, and the future growth trend is good. With the improvement of the industry's return on investment, the company's sustainable profitability will be enhanced; The company further strengthens the management and control of TCL Huaxing, so as to further enhance the company's comprehensive competitiveness and profitability