Silan Micro intends to increase capital of 20 million yuan to Mekale Optoelectronics

On March 18, 2014, Silan Micro announced that the company intends to transfer 26.67% of the equity of Hangzhou Meikale Optoelectronics Co., Ltd. held by Hangzhou Shilan Mingxin Technology Co., Ltd., a wholly-owned subsidiary, to the equity transfer. The price is 24 million yuan. After the completion of the equity transfer, the company plans to increase the capital of Hangzhou Meikale Optoelectronics Co., Ltd. by 20 million yuan. Upon completion of the capital increase, the company will hold a 40% stake in Hangzhou Meikale Optoelectronics Co., Ltd.

Mekale Optoelectronics Co., Ltd. is a wholly-owned subsidiary of Shilan Mingxin, a wholly-owned subsidiary of the company. It is mainly engaged in LED packaging business. Due to the expected recovery of LED industry, Meika Optoelectronics has become the most certain business segment in the listed company system. One of the company's direct shareholding and capital increase of 20 million yuan is conducive to enhancing its capital strength and operating level, consolidating the development foundation, and will have a positive impact on the company's profitability.

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