This 15-year-old LED packaging factory has caused listed companies to lose more than 300 million Hong Kong dollars in 7 years.

The Hong Kong stock company Landing International (00582) issued an announcement. On April 28, 2017, the company entered into a sale and purchase agreement with the purchaser, pursuant to which the company agreed to sell the entire issued share capital and sales loan of Ace Winner Holdings Limited for HK$50 million.

The announcement shows that Ace Winner Holdings Limited is wholly-owned by the company. The Company is a subsidiary of the Company, Jiangsu Wenrun Optoelectronics Co., Ltd., which is indirectly owned by Ace Winner Holdings Limited and is principally engaged in the design and production of LED products and semiconductor lighting related products.

According to the 69.44% equity price of Wenrun Optoelectronics in 2010, the company's assets have shrunk by more than 80%.

Landing International is principally engaged in integrated resorts, licensed casino and entertainment facilities businesses and property businesses. The company stated that the Disposal will help the Group to allocate resources to its existing businesses (especially integrated resort development) and other potential investments in line with the Group's long-term business strategy, and to minimize the Group's downturn in the LED lighting industry. Market risk.

In the LED packaging industry, Steady Optoelectronics is an uncompromising veteran manufacturer.

Zhenjiang Runrun Electronics Co., Ltd. (hereinafter referred to as Wenrun Electronics), the predecessor of Jiangsu Wenrun, was established in 1991 by a joint venture between Zhenjiang Dantu County Industrial Supply and Marketing Corporation and foreign companies.

In March 2002, Wenrun Electronics Co., Ltd., a local listed company controlled by Zhenjiang, Jiangsu Hengshun Vinegar Co., Ltd. (hereinafter referred to as Hengshun Vinegar Industry, 600305.SH) and Jiangsu Hengshun Group Co., Ltd. (hereinafter referred to as Hengshun Group) The company increased its capital and invested in the company. The company changed its name to Jiangsu Wenrun Photoelectric Co., Ltd.

In line with LED optoelectronics as a hot industry supported by governments at all levels, Hengshun vinegar industry has successively increased capital, but due to its own business conditions, it lacks the intention and strength to continue to increase capital. In September 2006, Hong Kong’s new Henderson’s line of visitors visited Jiangsu’s stable market. In the talks after the routine inspection, Hong Kong Xinhengji proposed to build China's largest optoelectronics industry base in Zhenjiang, which attracted the attention of Zhenjiang Municipal Government and Hengshun Vinegar Industry.

In August 2007, Hong Kong Xinhengji, Hengshun Group and Zhenjiang New Area (the national economic and technological development zone under Zhenjiang City) signed an agreement on the establishment of a high-tech park optoelectronics industrial base, which stipulates that Hong Kong New Henderson will invest in the next 3-5 years. 500-600 million US dollars, fully support the stability of the company in the LED packaging industry and other industries in the field of optoelectronics.

After that, China Optoelectronics Investment Co., Ltd., a wholly-owned subsidiary of Hong Kong Xinheng Group, invested RMB 93.744 million in February 2008 to implement capital increase and share expansion for Jiangsu Wenrun. After the capital increase was completed, China Optoelectronics Investment Co., Ltd. held 69.44%, Hengshun Vinegar Holdings held 25.47%, and Zhenjiang Xinhui Investment Co., Ltd. held 1.22%.

In August 2008, Hong Kong New Henderson and Zhenjiang New District signed a second cooperation agreement, an additional investment of 500-800 million US dollars, and an industrial plot covering an area of about 300 acres.

But soon there were many contradictions between shareholders.

Because there is no such thing as the construction of the photovoltaic industry base in Zhenjiang New District, the gap between Hong Kong Xinhengji and the general manager of the current stable and stable photoelectric company Guo Yuguo is getting bigger. Later, due to the controversy over the investment in the Maanshan project in Anhui, the contradictions between the two sides intensified. In May 2009, Hong Kong New Henderson passed the resolution of Jiangsu Wenrun's board of directors to remove Guo Yuguo's managing director position.

On September 21, 2010, Hong Kong New Henderson completed the equity transfer to Jiangsu Wenrun, and its 69.44% equity was transferred to Hong Kong Main Board listed company Landing International (00582.HK), which benefited from around HK$400 million. After that, Hong Kong’s new Henderson’s “big hand” investment in Zhenjiang also ended.

According to the 2015 annual financial report of Landing International, the annual loss was 988 million yuan. At that time, the company proposed that in view of the decline of the LED lighting industry, the Group will closely monitor the market situation and adjust the pricing strategy to improve the performance of the lighting business, or consider reducing or selling the lighting business.

According to the 2016 financial report data, Wenrun Optoelectronics achieved revenue of approximately HK$330 million in 2016, an increase of 2.44% compared to 2015.

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