Lianjian Optoelectronics stated that due to the development of the company's business, it has set up a wholly-owned subsidiary “Shenzhen Lianjian Photoelectric Co., Ltd.†in Shenzhen with its own funds of RMB 10 million (actually the name approved by the industrial and commercial department shall prevail, hereinafter referred to as “ The wholly-owned subsidiary ") gradually invested the relevant personnel and resources of the company's LED display business segment into the wholly-owned subsidiary, and took over and continued to develop the LED display business for the business platform, thereby causing the company's original LED display business to sink. In order to adjust the organizational structure of the listed company, the parent company of the listed company will be used as the LED display business and the advertising media business group management and control platform, and each business segment will be operated independently by the wholly-owned subsidiary to promote the optimal allocation of the company's industrial resources and improve the overall company. Operational efficiency, promote the company's transformation and upgrading, cross-border group development, and realize the company's long-term vision of “the nation's leading outdoor communication preferred brandâ€.
The investment to establish a wholly-owned subsidiary is based on the organizational structure of the company to adjust and optimize the allocation of industrial resources. After adjustment, the overall operational efficiency of the company can be improved, and the synergy effect after mergers and acquisitions can be fully utilized to enable the company to obtain the scale of the industrial chain extension. With resource advantages, there is no significant risk.
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