Jiangsu Zhongli Group Co., Ltd. announced recently that it has signed an Equity Transfer Agreement with Xinya Electronic Co., Ltd. According to the agreement, Zhongli Group will transfer its 100% equity of Guangdong Zhongde Cable Co., Ltd. and its 30% equity of Suzhou Cableplus Technologies Co., Ltd. to Xinya Electronic. Once the transaction is completed, the company will no longer hold shares in Guangdong Zhongde and Suzhou Cableplus.
Both subsidiaries are cable manufacturers. As early as last year, Zhongli Group tried to sell the equity of Guangdong Zhongde, but later said it was suspended due to the COVID-19 epidemic. In addition, Zhongli Group also sold a 49% stake in the joint venture, YOFC Zhongli, to YOFC. Even so, the company has not completely withdrawn from the optical communication market and still retains part of its business.