On August 9, Goertek issued an announcement regarding financial assistance for its subsidiary's external investment. The announcement stated that in order to promote the maturity of Micro LED-related technologies and products and support the future development of the company's AI smart glasses and AR augmented reality businesses, its controlling subsidiary, Goertek Hong Kong, plans to provide Haylo, a British company, with an interest-bearing loan of no more than US$100 million (approximately RMB 714 million) with equity income rights, with a loan term of five years.
Haylo will use the aforementioned loan to acquire 100% equity interest in Plessey Semiconductors Limited (hereinafter referred to as "Plessey") and increase Plessey's capital, which will be used for Plessey to purchase Micro LED-related fixed assets and supplement working capital.
According to available information, Plessey was founded in 2000 and focuses on developing ultra-high resolution Micro LED displays for AR and VR devices. Plessey has collaborated with AR glasses manufacturer Vuzix and internet technology giant Meta, among others, to jointly develop AR/VR micro-display technology.
Image source: Plessey
In terms of technological achievements, Plessey has collaborated with companies to launch monochrome passive matrix Micro LED displays; launched 0.26-inch monochrome Micro LED display modules; developed 2.5μm ultra-high resolution Micro LED displays; and launched the world's first silicon-based InGaN red LED, among other products.
In January of this year, Plessey and Meta released their latest technological research results, jointly developing the world's brightest red Micro LED display, which can provide up to 6,000,000 nits of brightness at high resolution (<5 micrometers).
In terms of performance, although the Micro LED technology industry is still in its early stages of development, Plessey has been profitable in recent years thanks to its Micro LED business. Specifically, in fiscal year 2024, Plessey achieved revenue of approximately US$74.79 million and net profit of approximately US$12.41 million; in fiscal year 2025, Plessey's revenue was approximately US$72.72 million and net profit was approximately US$2.8 million.
Goertek Upgrades VR/AR Glasses Business, Further Strengthens Micro LED Technology <br /> As a well-known domestic OEM manufacturer of precision components such as acoustics and optics, as well as smart hardware, Goertek has long supplied international brands such as Apple and Meta. In 2021, driven by strong demand for Apple's TWS earphones, Goertek's performance reached a historical high, with net profit attributable to the parent company reaching 4.307 billion yuan. However, this success was short-lived. With the continuous reduction of orders from major customers, Goertek's performance continued to shrink in 2022 and 2023.
To avoid dependence on major clients, Goertek continues to develop its smart hardware business, primarily focusing on VR/AR headsets and smart game consoles, aiming to transform into a VR/AR OEM manufacturer and create a new growth curve. In the first half of 2022, smart hardware became Goertek's largest business segment, boosting the company's overall gross profit margin.
According to relevant data, Goertek currently holds a major share of the VR/AR terminal equipment market, providing overall OEM services for VR/AR glasses products to many well-known technology companies such as Meta, Pico, Sony, Samsung, Huawei, and Xiaomi. It also supplies optical and acoustic modules and other products, providing customers with VR/AR system-level solutions from components to modules and then to complete devices.
In the field of optical technology, Goertek established Goertek Optics in 2012, dedicated to the research and development and production of optical display technologies such as VR&AR and micro-projection. In 2020, Goertek Optics built a 12-inch wafer nanoimprint diffraction waveguide automated mass production line and has successively and successfully developed AR optical engine products based on DLP, LCoS, Micro LED and other technologies.
In the field of Micro LED technology, Goertek has developed a single-layer lens full-color AR diffractive waveguide display module and a Micro LED single green diffractive waveguide display module, which can help manufacturers create portable, stylish consumer-grade AR glasses with outstanding visual effects.
The completion of the acquisition of Plessey will undoubtedly further strengthen Goertek's optical display capabilities in the XR business. By improving its Micro LED micro-display technology layout, Goertek's VR/AR glasses business will achieve more comprehensive development.
Goertek stated that the purpose of this investment is to promote the development of AR glasses-related industries, enhance the company's resource integration capabilities in the upstream of the industry chain, strengthen strategic cooperation with leading customers in the industry, support the future development of the company's related businesses, and obtain investment returns.
This investment will enable Goertek to further promote the maturity of Micro LED technology and products, which will help the company's future development of AI smart glasses and AR augmented reality businesses.
