On January 23, TCL Zhonghuan released an announcement disclosing the latest progress in asset optimization by its controlling subsidiary, Maxeon Solar Technologies, Ltd. (“Maxeon”).
According to the announcement, Maxeon’s wholly owned subsidiary, SUNPOWER TECHNOLOGY LTD. (SPT), has entered into a Share Sale and Purchase Agreement with MFS TECHNOLOGY (S) PTE. LTD. (MFSS). Under the agreement, SPT intends to sell 100% of its equity interest in its wholly owned Malaysian subsidiary, SunPower Malaysia Manufacturing Sdn. Bhd. (SPMY), to MFSS.
It is worth noting that the buyer in this transaction has a strong background. MFSS is a wholly owned indirect subsidiary of Victory Giant Technology Co., Ltd., an A-share listed company, and is primarily engaged in the design and manufacture of high-density, multilayer flexible printed circuit boards.
The transaction is based on a consideration of USD 51 million (approximately RMB 370 million). The target company, SPMY, is Maxeon’s manufacturing entity in Malaysia, mainly engaged in the production of solar products.
As the seller will carry out asset clean-up and capital reduction of the target prior to completion, the transaction adopts a “Locked Box” pricing mechanism. Using October 31, 2025 as the reference date, the simulated net assets of the target company after the clean-up amount to approximately USD 50.128 million, which is broadly in line with the transaction consideration. The final purchase price will be adjusted based on any value leakage occurring between the locked box date and the completion date. In addition, USD 10 million will be reserved as an Uncertain Tax Provision (UTP), subject to true-up on a “refund more or pay less” basis depending on the actual outcome.
For TCL Zhonghuan and Maxeon, this transaction represents a clear move toward “slimming down” operations while replenishing cash.
The announcement states that the transaction forms part of Maxeon’s broader restructuring and integration plan, with the aim of optimizing its capital structure and revitalizing underperforming assets. Through the disposal of this asset, Maxeon is expected to obtain additional liquidity, thereby enhancing its risk resilience and allowing it to focus more effectively on improving operational efficiency.
To facilitate the smooth completion of the transaction, TCL Zhonghuan has also provided full support by agreeing to release the pledges and encumbrances related to SPMY (the equity interest in SPMY had previously served as part of the collateral for Maxeon convertible bonds held by the company). Upon completion of the transaction, SPMY will no longer be consolidated into TCL Zhonghuan’s financial statements.
Source：EnergyTrend