Lukang Culture (601599): We Plan To Invest 500 Million Yuan To Establish Huaibei Subsidiary.

Lukang culture (601599.SH) announced that in August 26, 2019, the company and the Anhui Huaibei Economic Development Zone Management Committee, on the basis of equality and voluntariness, have signed the "framework agreement on the wool textile industry cooperation between Jiangsu Lukang culture Limited by Share Ltd and Anhui Huaibei Economic Development Zone" based on relevant laws and regulations. Under this background, the company and Huaibei City Construction Investment Holding Group Co., Ltd., Anhui Long Hua Hui equity investment management partnership (limited partnership) plan to jointly invest 1 billion yuan in the Anhui Economic Development Zone of Anhui Province, and set up subsidiary company Technology Co., Ltd.

The registered capital of Lukang, Huaibei is 1 billion yuan, of which the company invested 500 million yuan in its own assets, accounting for 50% of the registered capital. Huaibei Construction Investment Holding Group Co., Ltd. invested RMB 300 million yuan, or 30% of its registered capital, with its own or self raised funds. The subsidiary fund of Anhui Long Hua Hui equity investment management partnership (limited partnership) invested 200 million yuan in its own or self raised capital, accounting for 30% of the registered capital.