Yesterday (16), Lianchuang Optoelectronics announced that it plans to establish a wholly-owned subsidiary with a wholly-owned subsidiary of Jiangxi Lianchuangzhiguang Technology Co., Ltd. (hereinafter referred to as "Lianchuangzhiguang") at a price of RMB 590.5 million. Temporarily named Linkong Zhiguang Co., Ltd. (hereinafter referred to as "target company"), the company will hold 100% equity of the target company. After the target company was established in accordance with the law and regulations, Lianchuang Optoelectronics plans to transfer 33.02% equity of the target company to Nanchang Linkong Industrial Equity Investment Management Co., Ltd. (hereinafter referred to as "Linkong Industrial Investment Company") and introduce new investors with a transaction amount of 1.95 100 million yuan.
The announcement shows that Lianchuang Zhiguang mainly produces backlight products, which are widely used in many electronic fields such as mobile phones, home appliances, and flat panel displays. The target company is mainly engaged in the research and development, production and sales of optoelectronic components and their series of products.
Lianchuang Optoelectronics said that Lianchuang Zhiguang's operating income has maintained rapid growth in recent years, and its net profit level is stable. As the global LED business accelerates to gather in China, the overall revenue level of domestic backlight manufacturers is expected to be further improved. Based on the consolidation of the original market leading position, Zhiguang Company actively expands industrial control, automotive and other industrial and automotive products to achieve Product line expansion and new profit points.
In addition, because of business development needs, Lianchuang Optoelectronics plans to sign an "Equity Transfer and Repurchase Agreement" with Linkong Industrial Investment Company to transfer 33.02% of the target company to Linkong Industrial Investment Company for a price of 195 million. Shares, and assume the obligation to buy back such shares in accordance with this agreement.
Lianchuang Optoelectronics said that the company's target company established with 100% equity of Lianchuang Zhiguang held by the company is a business cooperation platform built by the company. The company's transfer of 33.02% equity of the target company to Linkong Industrial Investment Company will strive for good development resources and opportunities for the company and its subsidiary Lianchuang Zhiguang, help to expand the company's production capacity, promote corporate strategic upgrading, and quickly seize the industry's development opportunities To improve the company's market competitiveness.
After the completion of the transaction, Lianchuang Optoelectronics' shareholding in Lianchuang Zhiguang was adjusted from 100% directly to 66.98% indirect. Lianchuang Zhiguang is still the company's controlling subsidiary and is still within the scope of the company's consolidated statement. After the company subsequently repurchases the 33.02% equity held by Linkong Industrial Investment Company according to the agreement, Lianchuang Zhiguang will remain a wholly-owned subsidiary of the company. This transaction will not have a significant impact on the company's operating performance this year.
According to LEDinside, Lianchuang Optoelectronics began to increase the development of optoelectronic products last year. Last year, the company reached a cooperation with the Institute of Applied Electronics (10 institutes) of the Chinese Academy of Engineering Physics and jointly invested in the establishment of a joint venture company, Zhongjiu Optoelectronics, to develop optoelectronic products and laser technology, with a total investment of 1 billion yuan. At present, the production and operation of Zhongjiu Optoelectronics is normal, the construction of a high-power semiconductor laser module packaging production line has been completed, and trial production has been completed, and small batch production has been completed.