Crystal-Optech acquires coating equipment from Optorun in JPY33.6bn related party deal

Zhejiang Crystal-Optech Technology Co., Ltd. (Crystal-Optech) announced its plan to purchase coating equipment from its associated company, Optorun Co., Ltd. The total transaction value is JPY33,600 million. This amount represents 0.18% of Crystal-Optech’s 2024 audited net assets. Crystal-Optech holds a 16.33% stake in Optorun and is its largest shareholder, with Mr. Lin Min, a director of Crystal-Optech, also serving as a director at Optorun, thus classifying this as a related party transaction.

The deal, aimed at enhancing Crystal-Optech's strategic development and optical product lines, was approved by the company’s Seventh Board of Directors' Independent Directors' Special Meeting and the Seventh Board of Directors' Third Meeting, with related party director Mr. Lin Min abstaining. This transaction is considered a normal commercial activity, conducted on market-based principles, and is expected to positively impact Crystal-Optech’s production and operations without harming the interests of shareholders.

Cumulative related party transactions between Crystal-Optech, its subsidiaries, and Optorun (including other related parties under common control) have reached 3,177.01 million yuan year-to-date as of this announcement. The payment for the equipment will be made in three installments: 30% upfront, 60% before shipment, and the remaining 10% after final acceptance and commissioning.