Guang Bao 530 million sells three subsidiaries, focusing on key areas such as LED and outdoor lighting.

On the (11) day, the first board of directors of the company has signed the equity transfer agreement to sell the 100% stake of its three subsidiary companies, including Zhuhai Mobile Communications Technology Co., Ltd., Guangzhou Guang Bao mobile electronic parts Co., Ltd. and Shenzhen light treasure mobile precision mould Co., Ltd. through the signing of the equity transfer agreement. Shenzhen listed company Zhejiang star Polytron Technologies Inc (hereinafter referred to as "Star Technology") subsidiary Toptouch Technology Co., Ltd. The price of the equity transaction is RMB 530 million yuan, but the final transaction price should be adjusted according to the relevant provisions of the "equity trading contract".

Star technology was established in September 2003 and listed on Shenzhen Stock Exchange in August 2011. In 2017, its revenue was 5 billion 600 million yuan and net profit was 70 million yuan. It was mainly engaged in research and development of screen protection glass, touch module and mechanism parts.

Chen Guangzhong, vice chairman and chief executive officer of Guang Bao group, said that the five major networking applications (IoT) of cloud computing, cloud computing, LED and outdoor lighting, automotive electronics, industrial automation and intelligent medical care have been the focus of the group's transformation and development. Affected by the rapid changes in the global mobile device market, the operational adjustment of this mobile phone related business will help the group focus on core technology and competitiveness, continuously optimize profitability and product mix, and enhance the long-term interests of shareholders, customers and employees.

The equity delivery will be subject to the approval of the competent authorities in accordance with the law, and is expected to be completed in the fourth quarter of 2018. Guang Bao said that the transaction had no significant impact on the financial business of the company. It will make relevant announcements and declarations according to the law when the actual transaction is completed.

Source: Taiwan Economic Daily

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