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Wuhan Quanhua Optoelectronics Investment sets up subsidiary to expand LED traffic lighting market

Quanhua Optoelectronics announced on the evening of July 24th that the company planned to jointly invest with Peng Jiping and Du Xinquan to establish Wuhan Quanhua Transportation Facilities Co., Ltd., with the registered address at Building 2, Guannan Industrial Park, Gaoxin 2nd Road, Donghu Development Zone, Wuhan City, with a registered capital of RMB 5.5 million. Among them, the company invested RMB 2.805 million, accounting for 51% of the registered capital; Peng Jiping contributed RMB 1.43 million, accounting for 26% of the registered capital; Du Xinquan contributed RMB 1.265 million, accounting for 23% of the registered capital.
The announcement stated that companies entering new fields can use existing production facilities and technical capabilities to enter the transportation facilities market, producing traffic strobe lights (existing products), security monitoring fill lights (existing products), traffic lights and other related LED lamps. In view of the recent official implementation of the new national standard for road traffic lights GB14887-2011, more than 90% of strobe lights, fill lights, signal lights and other products used in traffic facilities use LED, and the company has mature technology and production capabilities. At the same time, with the acceleration of the country's urbanization process and the upgrading of products required by new national standards, the demand for lighting fixtures in the field of transportation facilities has grown rapidly. There is no traffic light manufacturer in Hubei Province. In order to better serve the traffic light demand and expand the market, the company plans to establish a holding subsidiary to enter the traffic light field. The company is currently conducting relevant product certification work.
Quanhua Optoelectronics stated that the purpose of external investment is to broaden the company's business scope, enter new market areas, increase the company's income channels, and increase the company's ability to resist risks; the risks that may arise from the investment depend on the future development of Wuhan Quanhua Transportation Facilities Co., Ltd.; the planned investment in the establishment of a joint venture subsidiary is an important measure for the company to implement its development strategy and is of great significance to the company's future development.  
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