San’an Opto board has approved an equity share transfer agreement signed with Cher Detank.

According to San’an Opto’s development plans to better support subsidiary Wuhu Anrui Opto’s development, the board considered acquiring all of Cher Detank’s share in the company, and will be using RMB 40.79 million (US $6.65 million) from its own account. After the equity share transfer, Wuhu Anrui Opto will become a wholly owned subsidiary of San’an Opto.

Wuhu Anrui Optoelectronics (芜湖安瑞光电) is a joint venture set up by San’an Opto and Cher Detank. The subsidiary’s registered finance was RMB 80 million. Initially, San’an Opto held a 51 percent stake in the company, while Cher Detank held the remaining 49 percent, according to data compiled. The subsidiary is mainly involved in LED package, applications, automobile lighting and other related component designs, manufacturing, sales and other services. 

As of June 30, 2014, Wuhu Anrui OPtoelectronics total assets reached about RMB 1.90 billion, but also incurred a total loss of RMB 1.17 billion. During the first half of 2014, the subsidiary’s revenue reached RMB 154.47 million, while net profit was about RMB 8.29 million.