Wuhu Token Science(RCode:300088:) filed it will jointly form an opto-electrical subsidiary called Shanghai Tengxin Opto-electrical with registered capital of 254 million yuan, reports yicai.com.

Token Science, Arrow Display (Shanghai) and Shanghai Xinlan Assets Management will respectively contribute 59.49 million yuan, 145 million yuan, and 2.77 million yuan for stakes of 28.67 percent, 70 percent, and 1.33 percent, for the first investment phase. Arrow Display is controlled by Shanghai Yidian Holding Group, which is under the State-owned Assets Supervision and Administration Commission of Shanghai.

The subsidiary will specialize in the design, research, and production of capacitive touch screens and other opto-electrical products and equipment, as well as providing related technical consulting and services. The subsidiary will start production in July 2012 with planned capacities of 20,000 pieces of the fifth-generation touch screen product called SENSOR.

For the second investment phase, British Virgin Islands-registered Cando Investment will purchase the 70-percent stake held by Arrow Display. Token Science and Xinlan will inject 92.27 million yuan and 4.29 million yuan in the joint venture. Cando Investment, Token Science, and Xinlan will ultimately hold stakes of 55 percent, 43 percent, and two percent in the joint venture. Cando’s legal representative, Ling Anhai, has held the post of general manager of Arrow Display since 2002.

As agreed by all parties, Token Science may seek 100-percent control over the joint venture when its performance meets certain criteria.