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Another acquisition in the LED display industry

On the evening of October 20, GQY Video released an announcement that it would use its own funds of RMB 17.5 million to acquire 70% of the shares of Shenzhen Taiheng Optoelectronics Co., Ltd. (hereinafter referred to as Taiheng Optoelectronics) .


The acquisition is mainly to further expand GQY Video's strategic layout in the field of large-screen displays, improve the main business industry chain, enhance the company's hard power in the LED display production and manufacturing links , reduce production and operation costs, and improve the company's operating efficiency.

According to Display Insider, GQY Video's main business is the research and development, production and sales of intelligent splicing display products, and it holds a 30% stake in Lanpu Video.


GQY Video suffered a net loss of 22.7264 million yuan in the first half of the year attributable to the parent company, and its main business also declined. Through this acquisition, GQY Video aims to improve the main business industry chain and enhance its hard power in the LED display production and manufacturing links.



Taiheng Optoelectronics was established in 2014. Its LED display product line includes outdoor, indoor, rental and fixed installation, etc., which are widely used in advertising, stage performances, conference collaboration and other scenarios, covering multiple fields such as medical care, culture, and education.

In 2024, Taiheng Optoelectronics reported audited revenue of 67.93 million yuan and a net profit of 3.23 million yuan. In the first half of 2025, revenue reached 34.12 million yuan and a net profit of 4.15 million yuan, exceeding last year's full-year figures. As of the end of June this year, the company had total assets of 72.54 million yuan, net assets of 9.58 million yuan, and total liabilities of 62.96 million yuan, with an asset-liability ratio of 86.8%.


It is worth noting that this acquisition comes with performance commitments:

  • 2025 is the performance transition period for this transaction, and Taiheng Optoelectronics must achieve an audited operating income of no less than RMB 65 million for the full year of 2025;

  • The performance betting period for this transaction is from 2026 to 2028 (three years). Taiheng Optoelectronics' audited operating income for the whole year of 2026 shall not be less than RMB 65 million and its net profit shall not be less than RMB 2 million; the audited operating income for the whole year of 2027 shall not be less than RMB 70 million and its net profit shall not be less than RMB 3 million; and the audited operating income for the whole year of 2028 shall not be less than RMB 75 million and its net profit shall not be less than RMB 4 million.

  • During the betting period, if the total net profit of Taiheng Optoelectronics is less than RMB 9 million or the annual net profit is lower than the annual promised performance, Party A shall compensate Taiheng Optoelectronics for the difference in cash.


If Taiheng Optoelectronics' annual operating income meets the target during the betting period, and the total audited net profit during the three-year performance betting period is higher than 9 million yuan, GQY Video will receive 50% of the above excess as a bonus; if all betting performance results are completed, GQY Video promises to continue to acquire the remaining 30% of the shares.



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