Refond Optoelectronics recently announced its board members approved two proposals including the termination of its subsidiary in Dongyuan city in Guangdong Province, China, and forming a joint venture with foreign investors.

To lower management costs, reduce management level employees, and improve the company’s management. The company stated it terminated subsidiary Rsee, which is based in Dongyuan, Guangdong Province of China.

Since Rsee never formally entered operations, it will have limited impact on Refond Optoelectronics revenue. The board approved cancelling the subsidiary and has acquired approval from board members, and no further board reviews will be required. The terminated subsidiary is not an affiliated trade transaction nor does it meet regulations for asset restructure under “Provisions on Issues Concerning Regulating the Material Asset Reorganizations of Listed Companies.”

Additionally, the board agreed to invest in a joint venture formed with nine other investors, the new company will be temporarily named Shenzhen Refond Laser Video Technology Company. The joint venture’s listed capital is RMB 5.95 million (US $890,000) with finance of RMB 1.17 million, and RMB 2 million set aside for equipment. The joint venture’s registered capital amounts to about 53.2%, while the nine investors provide the remaining 46.8% finance of RMB 2.78 million.

The joint investment was established with the aim to kick off new business models and partnership development in the laser end product market. The company is strengthening its market position in the light source sector to raise its profitability.