Aimed at sapphire Reed intends to set up a subsidiary of 40 million yuan

China securities network red October 8th evening announcement, in order to better grasp the investment opportunities, enhance the comprehensive competitiveness, the company invested 40 million yuan to set up investment management company in Henan city of Zhengzhou province (wholly owned subsidiary), sapphire industry as the main direction of investment, a listed company with industrial integration, improve the company's strategic layout.

It is understood that red intends to set up the name of the investment management company, "red Optoelectronics (Zhengzhou) Cci Capital Ltd", the registered capital of 40 million yuan, all funded by its own funds, accounting for 100% of the shares. The company is mainly engaged in equity investment, investment management.

According to the relevant person in charge of Reed, Zhengzhou is located in the center of China, convenient transportation, rapid economic development. In view of its geographical advantages and advantages of industrial development environment, combined with the company's own development needs, funded the establishment of a wholly owned subsidiary of industrial investment management, help the company to better grasp the investment opportunities, with the integration of upstream and downstream industries, improve the company's strategic layout, in order to enhance the company's comprehensive strength and competitiveness.

The first half of this year, benefiting from the sapphire crystal materials and the substantial growth of sapphire crystal growth equipment sales, the company achieved operating income of about 565 million yuan, a growth of 215.54% before the reorganization; net profit of 111 million yuan, an increase of 408.99%.

Due to the planning of non-public offering of shares, red shares since August 24th suspension. According to the progress of the announcement, the company intends to not more than 10 specific investors to issue shares to raise cash for the acquisition of assets and mainly used to supplement working capital. Due to the relevant audit, evaluation and other work has not yet been completed, the specific program still needs further demonstration to determine, plus the additional object has not yet been finalized, the company's shares will continue to be suspended until November 26th.

For more information about LED, please click on China LED network or pay attention to WeChat public account (cnledw2013).