Hengshuncuye subsidiary to carry out strategic cooperation with new Henderson

Hengshuncuye (600305) announcement today, the company is a subsidiary of Jiangsu Wenrun photoelectric Co., the company intends to increase their investment, and the new Henderson International (Group) Co., Ltd. to carry out strategic cooperation, multilateral consultations on related matters, signed the "investment agreement" before.

The parties agreed to on the basis of the total net assets of Wenrun company after assessment as the basis for pricing, the implementation of the capital increase of Wenrun company, owned by the new Henderson company Chinese photoelectric Investment Limited company to subscribe in cash for all new registered capital. After the completion of the capital, the registered capital of Wenrun company increased from 40 million yuan to 135 million yuan, of which: China photoelectric 69.44% stake; hengshuncuye Holdings 25.47%. At the same time, the new Henderson also promised to support the development of the company and Zhenjiang Wenrun optoelectronic industry, will be held before the end of 2008 to invest in Zhenjiang to establish a LED application products production base, the new Henderson investment of not less than $12 million.

Due to the steady run company after the capital increase, the new Henderson is Chinese Wenrun photoelectric will become the controlling shareholder of the company, thus increase the implementation will bring a certain impact on the total assets, hengshuncuye consolidated sales revenue, profits.

Source: News Network