Lianchuang Optoelectronic to boost control in Xiamen Hualian Electronics

Jiangxi Lianchuang Optoelectronic Science & Technology's controlling subsidiary, Xiamen Hualian Electronics Co., Ltd., plans to repurchase 44,591,000 shares, representing 34.49% of its total share capital, from shareholder Lianfa Group Co., Ltd. for up to 319,932,200 yuan. This transaction will reduce Hualian Electronics' registered capital from 129,290,000 yuan to 84,699,000 yuan.

Upon completion, Lianchuang Optoelectronic's stake in Hualian Electronics will rise from 50.01% to 76.34%. This increase in ownership will give Lianchuang Optoelectronic absolute control over Hualian Electronics' shareholder resolutions, facilitating decision-making and accelerating initiatives like equity incentives and talent reforms. The acquisition cost is based on an assessed valuation of 115,951.07 million yuan for Hualian Electronics' total equity as of December 31, 2024.

The transaction was approved by the company's Eighth Board of Directors and does not require shareholder approval. The deal is subject to Lianfa Group's shares undergoing a public tender process as per state-owned asset transfer regulations and Hualian Electronics completing creditor notification procedures for the capital reduction.