August 30 – TDG Holding (600330) plans to invest 360 million yuan to upgrade a facility that produces four-inch LED sapphire substrate, with annual capacity of 600,000 pieces, reports yicai.com, citing a company filing. It expects the upgrade to contribute 298.8 million yuan of revenue and yield net profit of 77.323 million yuan annually, for a yield rate of 21.31 percent and an investment return period of 5.94 years.

TDG Holding, which was founded in 1999, stepped into the LED sapphire substrate industry last year.

The Haining-based firm reported yesterday that it plans to spend 19.15 million yuan to acquire a 100-percent stake in Liuan Towin Electronic Technology from Shanghai Towin Investment and Development and Liuan Tianrui Real Estate. That would be classified as a related-party transaction. Towin Investment and Development’s share controller, Towin Holding, are also the share controllers of TDG Holding.

Towin Electronic Technology was founded in September last year with registered capital of 20 million yuan. It incurred a loss of 676,500 yuan in the first half of 2011, and it had net assets of 19.15 million yuan as of June 30. TDG Holding acquired Towin Electronic Technology, in order to reduce the production cost of magnetic materials.

TDG Holding’s net profit tumbled 22.16 percent year-on-year to 23.52 million yuan in the first half of 2011, with earnings per share of 0.04 yuan, due to declining sales of solar products and increasing investments in new materials and new energy industries.

Shares of TDG Holding (600330) traded at 11.71 yuan as of 11:12 this morning.