Sanlux Co., Ltd. resolved to purchase the shares of stock from Xishuangbanna Lubo Rubber Co., Ltd. directly and indirectly with its own funds of 162,503,200 Yuan on September 29. As a result, Sanlux achieved to hold 92.22% of the shares.

According to Sanlux, this acquisition is conducive to providing the company with a stable and quality supply channel of natural rubber and reducing the negative impact on the company caused by price fluctuation of natural rubber and conduces to the improvement of industry chain layout and the promotion of earning capacity.

Lubo Rubber is said to be a company engaged in rubber planting, natural rubber processing and trade, with over 20,000 mu of rubber trees and 49 mu of rubber processing factory in Laos. It was a main natural rubber supplier of Sanlux.

Sanlux is a national leading enterprise in the field of rubber V-belt. As the annual costs of rubber materials, such as natural rubber, synthetic rubber, etc., account for 30% ~ 40% of raw materials for rubber belt products in Sanlux, the rubber price fluctuation is a great influence on its business results.