On January 8, China’s leading LED backlighting company Jufei Optoelectronic Co., Ltd (300303.SZ) announced that it has planned to purchase 100 % shares of Shenzhen Xionglian Industry Co., Ltd. from Xionglian Hatting Factory for 136 million yuan. The payment will draw on the excessive capital raised.

According to Jufei Optoelectronic Co., Ltd, the company’s existing manufacturing premise is inadequate now to meet the demand of further development. After the completion of this equity acquisition, Jufei will use the purchase target’s existing facilities to expand production scale. For the part of short-term surplus facilities, the company will put it for temporary lease. The acquisition target adjacent to Shenzhen China South City enjoys advantageous location, thereby with high rental demand and good rent prospect.