TCL Electronics Holdings said it is considering a spinoff and separate listing of its solar business, potentially distributing shares in the spunoff entity directly to existing shareholders, according to a filing to the Hong Kong Stock Exchange (HKEX) this week.

The proposal remains at a preliminary stage. As of the announcement, no application for the spinoff had been submitted to HKEX, and the company has not disclosed a valuation, distribution ratio, ownership structure, or timetable.

TCL Electronics said separating the PV business would let it concentrate on its global smart home appliance segment while giving the solar unit an independent growth strategy and broader access to financing.

Revenue from the company’s PV segment rose 63.6% to HKD 21.06 billion in 2025, following growth of 104.4% to HKD 12.874 billion in 2024, according to the company’s results announcements. Gross profit reached HKD 1.81 billion in 2025, implying a gross margin of about 8.6% based on reported revenue. The segment represented roughly 18.4% of TCL Electronics’ total 2025 revenue of HKD 114.58 billion, up from about 13% in 2024.

According to TCL Electronics’ disclosures, the segment focuses on distributed-energy solutions and services, including industrial and commercial distributed PV projects, household rooftop solar, engineering and installation, operations and maintenance, and energy-management services. The company reported 8 GW of domestic installed capacity, more than 340 cumulative industrial and commercial projects, more than 2,530 cumulative distribution channels, and nearly 360,000 contracted rural households by the end of 2025.

The PV business that TCL Electronics proposes to spin off is the distributed-energy and solar-services business reported within TCL Electronics’ accounts, not TCL Zhonghuan’s separately listed manufacturing operations.

TCL Zhonghuan is a mainland China-based solar and semiconductor-materials manufacturer historically associated with TCL Technology rather than TCL Electronics. It operates the manufacturing-oriented TCL Solar brand, with production spanning ingots, wafers, cells and modules, and reported CNY 22.725 billion ($3.4 billion) in new-energy PV revenue and 15.1 GW of module shipments in 2025, according to its results disclosures.

Under Hong Kong’s Practice Note 15, companies seeking a spinoff listing are generally expected to provide existing shareholders with an assured entitlement to shares in the new entity, demonstrate a clear separation between the businesses, and show that both companies can operate independently. Any listing of the new PV entity would need separate approval from HKEX.

The plan follows a broader pattern among Chinese conglomerates of separating solar and clean-energy assets from core consumer or industrial businesses. Skyworth Group, for example, proposed earlier this year to spin off Skyworth Photovoltaic as a separately listed company while simultaneously pursuing a privatization and delisting of the parent.

The proposal also comes as many of China’s largest solar manufacturers, including TCL Zhonghuan, reported steep full-year losses amid industry overcapacity and falling prices – a backdrop that may make separation more attractive to Chinese conglomerates.