(Yicai Global) Aug. 8 -- Ningbo Exciton Technology Co. [SHE:300566] -- formerly Ningbo Exciton New Material Technology Co. -- will invest CNY51.1 million to buy a 51 percent stake in Zhejiang Ziguang Technology Co., a high-tech optical product firm, thus expanding its main business applications.
Exciton Technology and Ziguang Technology's controlling shareholder -- Zhejiang-based Ningbo Hongfeng Equity Investment Partnership -- signed an equity transfer agreement for the former to acquire a 51 percent stake in Ziguang Technology for USD8.36 million (CNY56.1 million), thereby becoming the company's largest shareholder, Exciton Technology announced Aug. 7.
Ningbo Hongfeng will still hold the remaining 44 percent stake in Ziguang Technology after the deal wraps up.
Formed in 1999, Ziguang Technology specializes in developing, producing and selling high-tech optical products. Its patented optical glasses sell in more than 2,000 stores across China.
An anti-UV optical film Ziguang Technology independently developed won an invention patent from China's State Intellectual Property Office in 2010, thus indicating that the company's research and development of optical film ranks first in China.
Exciton Technology products' main use is in liquid crystal displays, new energy and LED lighting, public information shows. After acquiring Ziguang Technology, the company will further expand its optical film applications, thereby bringing new profit growth points, it said.