On September 19^th, Honglizhihui issued a notification that in order to expand the production scale of LED lead frame and precision components, so that it can provide better supporting service of raw material to the LED production base of Jiangxi Hongli Opto-Electronic Co.,Ltd (It’s referred as Jiangxi Hongli below),  its fully owned subsidiary Dongguan Liangyou Hardware Co.,Ltd. ( It’s referred as Liangyou Hardware below) is planning to invest no more than 100 million RMB of its own raised funds to create production project for LED lead frame and lens in the industry park of Administration committee in airport economic zone in Nanchang. 

Furthermore, in order to realize this project, Liangyou Hardware is planning to register and set up a fully owned subsidiary: Nanchang Liangyou Hardware Co.,Ltd in Nanchang.( It’s temporary name, the formal name will be finalized after the industrial and commercial registration is completed, it’s referred as “Project Company” below), this company will be for the investment and business operation in the future. 

Based on related documents, it shows that Liangyou Hardware was established in 2017, its main business includes: R&D、Production 、Sales of electronic products and accessories as well as precision components. Furthermore, the project company’s main business includes: The R&D、Production 、Sales of electronic products and accessories as well as precision components.

Through this investment, it can improve Liangyou Hardware’s production scale for LED lead frame and precision components, which makes Liangyou Hardware the leading LED lead frame manufacturer in China, as well as the leading precision component manufacturer in the industry. Thus, it will provide better supporting service of raw material to the LED production base of Jiangxi Hongli, which will help the company to improve its profitability and core competence.