Hongli Optoelectronics sets foot in Internet finance

As the "Internet finance" concept stocks rise to the sky, more and more A-share companies are involved in this hot topic. Hongli Optoelectronics has become the latest case by investing in Cayman Netli.

Hongli Optoelectronics announced today that the company plans to set up a wholly-owned subsidiary, Hong Kong Hongli, in Hong Kong with US$10 million. At the same time, Hong Kong Hongli will set up BVI Hongli in the British Virgin Islands with US$10 million. BVI Hongli will invest US$10 million in Cayman Wangli. After the capital increase is completed, BVI Hongli will account for 10% of Cayman Wangli's equity. Hongli Optoelectronics has thus indirectly entered the field of Internet finance.

The announcement shows that the main business of Cayman Wangli and its domestic company Wangli Technology controlled by the agreement is Internet financial online lending business. With industry asset securitization as the core, it cooperates with core enterprises in various industries in China to design and issue credit products and provide financial services to high-quality small and medium-sized enterprises in various industries. At the same time, online sales are conducted to public investors through the Wanglibao platform (including but not limited to the Wanglibao website and mobile APP client). As an information intermediary platform, the Wanglibao platform only provides information and consulting services and does not intervene in capital transactions. The company's income mainly comes from the intermediary service fees collected from borrowers. Wangli Technology's Internet financial loan business was officially launched in August 2014. As of March 31, 2015, the Wanglibao platform has accumulated more than 250,000 registered investors.

Financial data shows that as of March 31, 2015, Wangli Technology, a domestic company controlled by Cayman Wangli Agreement, had total assets of RMB 5.2608 million and net assets of -604,700 yuan; from January to March 2015, it achieved total operating income of RMB 4.0629 million and a net loss of RMB 3.7188 million.

Hongli Optoelectronics stated that as the domestic leader in white light LED packaging, the company has established a brand image in the LED industry. By increasing its investment in Cayman Wangli, the company will enter the field of Internet finance and take the lead in strategic cooperation with Cayman Wangli and its agreement-controlled Wangli Technology in the LED industry and carry out LED industry financial services, striving to become a leader in financial services in the LED industry. At the same time, small and medium-sized enterprises in the LED industry can obtain financing support more efficiently, greatly easing the financial tension, which is conducive to the development of the LED industry, and also helps the company to expand its LED business faster and gradually establish an ecological platform of the company's main LED business + Internet finance + Internet of Vehicles.