Hong Kong-listed Tongfang Youyou (HK.01868) recently announced that Heshan Tongfang Lighting, a wholly-owned subsidiary of the company, recently signed a framework agreement with the Heshan Industrial City Management Committee. Tongfang Science and Technology City.
According to the investment framework agreement, Heshan Tongfang and the Heshan Industrial City Management Committee will cooperate on the investment and construction of the electronic information industry in Heshan Industrial City and the LE D lighting industry technology park. According to the plan, the park will be divided into four bases according to different functions, namely, a lighting technology town for the promotion and display of LED lighting products, a new light source production base for the production of LED lighting products, and lighting for the development of LED lighting products. Industrial incubation base and lighting headquarters for overall management.
At the same time, Heshan Tongfang will re-plan its land use rights in Gonghe Town, Heshan City, in order to invest in and build a science and technology park that can provide a comprehensive network of industrial and living services, including science and technology office buildings, lighting development museums And lighting product display area, etc. The Science and Technology Park will occupy a total construction area of approximately 560,000 square meters.
Heshan Tongfang will also transfer to the Heshan Industrial City Management Committee the land use rights of a plot of about 40 acres and the buildings on the plot to provide space for the overall re-planning of Heshan Industrial City. In exchange, the Heshan Industrial City Management Committee will transfer to Heshan Tongfang the land use right of an area of about 90 mu for the construction of new buildings used as new offices and production plants. The parties will appoint an independent third-party valuer to value the above-mentioned properties, and the difference between the two valuations will be made up by the relevant parties in cash. Heshan Tongfang will streamline its internal resources and build and develop a new lighting product production base for its LE D decorative lights and LE D general lighting products business on the new land.
Tongfang Youyou said that the investment framework agreement marks the group's continued efforts to expand its existing R&D, sales and production of LED decorative lights, LED general lighting products, LED professional lighting products and engineering business; and Heshan Industrial City Management The cooperation of the committee also demonstrates the commitment and confidence of local government agencies in the business and operations of the Group.
Tongfang Youyou, formerly known as Zhen Mingli, is located in Gonghe, Heshan. It is mainly engaged in LED lighting and lighting business. It was listed in Hong Kong in December 2006. In August 2014, Tsinghua Tongfang subscribed for new shares and became the controlling shareholder of Zhenmingli. The company also changed its name to Tongfang Youyou.
