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An informed source pointed out that Tongyuan Precision's fall into bankruptcy liquidation was directly caused by the complete breakdown of its capital chain.
According to the national information network for enterprise bankruptcy reorganization cases, Guangdong Tongyuan Precision Circuit Co., Ltd. (hereinafter referred to as "Tongyuan Precision") has entered the bankruptcy liquidation process.
On November 28, 2025, the Intermediate People's Court of Huizhou City ruled to accept the bankruptcy liquidation application of the company, and on December 23, it appointed Guangdong Zhiming Law Firm as the administrator. On January 4, 2026, the court officially issued a notice, requiring creditors to declare their claims by March 5, and scheduled the first creditors' meeting for March 17.
Former Glorious Days
According to the data, Tongyuan Precision was established in December 2019, with a registered capital of 251.5809 million yuan. It is a manufacturing-oriented group enterprise specializing in the production of HDI, high multi-layer PCB, FPC, SMT, CCS for new energy, and its products cover LED LCD panels, smart phone panels, 5G communication server panels, as well as energy storage and automotive new energy fields. It exports to markets in Europe, America, and Japan. It has three production bases: Tongyuan Technology (Huizhou) Co., Ltd., Guangdong Tongyuan Precision Circuit (Daya Bay) Company, and Jiangxi Jingwei Electronic Circuit Co., Ltd.
Tongyuan Precision is not a "small workshop" type enterprise. At its peak, it was recognized as a "specialized, refined, distinctive and innovative small and medium-sized enterprise" and completed an A-round financing. It is reported that the company's factory covers an area of 40,000 square meters. Since 2021, it has focused on developing the overseas market, the electronic components for new energy vehicles and the Mini LED field, and has established the NED Division and the LED Division.
By the end of 2023, the company has established deep cooperation with several leading clients such as Hyundai of South Korea, Samsung, Xingwangda, Great Wall Motors, Geely, Zhongming, and Liadai. At that time, the company will have sufficient orders and its production capacity utilization rate will exceed 90%.
To ensure quality, the company has introduced a complete set of advanced equipment from places like the United States, Germany, and Japan. It has also passed numerous authoritative certifications such as ISO9001, IATF 16949:2016, ISO14001, and QC080000, and has obtained the UL safety certification from the United States. In the industry, it has established a reputation for technological leadership and excellent quality.
Signs have already emerged
An informed source pointed out that Tongyuan Precision's fall into bankruptcy liquidation was directly caused by the complete breakdown of its capital chain. The root of this crisis lies in the long-term structural adjustment of the lighting industry. Industry data shows that since 2021, the Chinese lighting industry has experienced consecutive negative growth for four years, with the industry scale declining by 7.7% in the first half of 2025. This downward pressure quickly spread to the upstream PCB sector, and for enterprises like Tongyuan Precision, which have highly dependent business on general lighting and mainly rely on mid-to-low-end PCB orders, the impact was particularly significant. The direct consequence was a lack of orders and continuous low capacity utilization, making it difficult for the enterprises to maintain normal operations.
Meanwhile, the overseas markets and the new energy vehicle electronics market that Tongyuan Precision has targeted for expansion require long-term and high-intensity capital investment. Under the circumstances of industry downturn and tightened financing environment, this expansion model that relies on external capital infusion is difficult to sustain, ultimately leading to the inability of the capital chain to support.
As early as April 2025, the Labor and Personnel Dispute Arbitration Court of Huizhou Dalianwan Economic and Technological Development Zone made a final ruling on the labor dispute case between the company and employee Li Miaomiao. The ruling stated that the company was required to pay the total salary of 4,128 yuan for the period from September to November 2024, and to return 105 yuan of the "Love Fund" that had been deducted.
In November of the same year, the Housing Provident Fund Management Center of Huizhou City was unable to contact the relevant employer and other methods of delivery were ineffective. Therefore, they could only issue a public notice to deliver the "Verification Notice", requiring the company to make up for the employee's housing provident fund contributions from December 2020 to January 2025.
According to an insider, by the end of December 2025, its factory in Daya Bay, Huizhou had been shut down, and over 200 employees had been owed wages for more than a year.
Meanwhile, throughout 2025, Tongyuan Precision Company was listed as a dishonest被执行人 by the People's Court of Bao'an District, Shenzhen City four times. The legal representative and the company itself were restricted from enjoying high-end consumption by courts in multiple places such as Huizhou， Shenzhen， Dongguan， and Suzhou 18 times. There were also long-standing unresolved contract disputes with six enterprises including Ganzhou Ming High Technology and Zhuhai Tongyi Electronics. The upstream suppliers' outstanding debts and the downstream's poor collection of payments formed a double pressure.
The bankruptcy case of Tongyuan Precision highlights the typical predicament faced by mid-to-low-end manufacturing enterprises during the industrial transformation period, serving as a warning for similar manufacturing enterprises: While pursuing business diversification and technological upgrading, they must also pay attention to financial stability and establish a risk management mechanism that is compatible with industry cycle fluctuations.
