A big move for the group: to set up a item company to cancel educational subsidiaries.

This year, the Chang Fang Group (hereinafter referred to as the "company") has been moving continuously, and its main developments are focused on developing the main business of the company, focusing on off grid lighting and other fields. In recent days, the company has announced that it plans to set up 5000KK packaging production projects, and invest in the item company to develop intelligent lighting and healthy lighting. In addition, the company also announced the cancellation of a wholly owned subsidiary of the development education business, making it more clear that the company will focus on the development of LED lighting.

The total investment of item company is not less than 2 billion yuan.

According to the announcement of today's morning, the company signed the agreement on investment and construction of 5000KK packaging production project cooperation agreement with the Nanchang Airport Economic Zone Management Committee (hereinafter referred to as the "Airport Management Committee") and the supplementary agreement on investment and construction of 5000KK packaging production projects. The investment of the equipment mode and the industry guidance fund of the airport management committee will be funded in cash and jointly invested in the establishment of the Nanchang airport item company (hereinafter referred to as "item company").

Item company mainly produces direct plug-in and patch type LED lighting source devices, and develops intelligent lighting, healthy lighting, special lighting, civil military integration industry, and LED lighting energy-saving lamps, solar lighting products, electronic products and so on. The item company has a registered capital of not less than 900 million yuan, and the company holds a item company not less than 50% of the shares. The airport management committee holds no more than 50% of the item company shares, and the company occupies the controlling shareholder status. The total investment of the project is not less than 2 billion yuan, and the first phase investment is 1 billion yuan (of which the equipment investment is not less than 600 million yuan).

Cancellation of long distance education wholly-owned subsidiaries, main business development of cohesion

On the same day, the group also announced that the company held the twenty-first meeting of the third board of directors in July 2, 2018 to consider and adopt the motion to cancel the wholly owned subsidiary. The company decided to liquidate and cancel a wholly owned subsidiary, Shenzhen Qianhai Long Distance Education Technology Co., Ltd. (hereinafter referred to as "long distance education") based on reducing the company's management costs, improving operational efficiency and fully integrating resources.

Statistics show that as of December 31, 2017, the total assets of the long distance education were 97 million 441 thousand yuan, net assets of 94 million 10 thousand and 500 yuan, operating income of 676 thousand and 500 yuan, and net profit of -447.91 million yuan.

Chang Fang Group said that the cancellation of long distance education was based on the overall strategic planning of the company. After the cancellation of the long term education, the company will no longer extend to the education industry, develop its main business and continue to promote the development of LED and off grid lighting. Canceling the long distance education helps to optimize the assets structure of the company, reduce the management cost, improve the management efficiency of the company assets and the overall business benefit. After the cancellation of the long term education, the scope of the consolidated financial statements will change accordingly. However, the cancellation of long distance education does not have a significant impact on the overall business development and profitability of the company, and will not have a substantive impact on the consolidated statements.

It is also worth mentioning that, with regard to stopping the expansion of the education industry, the long side group had acted earlier. In April, the company terminated the cooperation framework agreement signed with the Beijing universal arts education consulting Limited by Share Ltd, and planned to focus on the main business. (text: LEDinside Janice finishing)

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