Acquisition Analysis: Evidence from TCL's Acquisition of Zhonghuan Electronics

With the rapid development of internet industry in China, the market competition is becoming increasingly fierce. Therefore, more and more enterprises are willing to expand their impact by cross-industry mergers. This study examines the performance of cross-industry mergers through the case of TCL Corporation's acquisition of Zhonghuan Electronics, using the Balanced Scorecard (BSC) framework. The analysis reveals that while the merger initially imposed short-term financial pressures, it generated long-term strategic value. Zhonghuan's leadership in N-type silicon wafer technology and its vertical integration of the industrial chain strengthened TCL's technological edge and supported its global expansion. BSC evaluation highlights synergies in technology integration, market penetration, and green transition across financial, customer, internal process, learning and growth dimensions. The cyclicality of the photovoltaic industry underscores the necessity for enterprises to balance short-term risks with long-term opportunities. Strategic recommendations include optimizing production capacity, accelerating technological innovation, reducing financial leverage, and integrating ESG practices to enhance sustainable competitiveness. The findings provide a multidimensional methodology for evaluating cross-industry mergers and actionable insights for corporate strategic transformation, emphasizing cost efficiency and innovation as key drivers of success in post-cycle industry recovery.