Guizhou Redstar Developing (600367.SH) subsidiary Dazhu Hongdie to cease production, with future operations to be taken over by Redsta.

Hongxing Development (600367.SH) announced that its controlling subsidiary, Chongqing Dazu Hongdie Strontium Co., Ltd. (referred to as Dazu Hongdie), needs to relocate to a chemical park in accordance with the "Guiding Opinions of the General Office of the State Council on Promoting the Relocation and Transformation of Hazardous Chemical Production Enterprises in Urban Population Intensive Areas" (State Council Document [2017] No. 77). The relocation and expansion project of Chongqing Rui Desi Optical Technology Co., Ltd. (referred to as Rui Desi), in which the shareholders of Rui Desi and Dazu Hongdie are the same and the shareholding proportions are consistent, has been basically completed and is ready for trial production. The company plans to stop production at Dazu Hongdie, and after the shutdown, some production equipment will be transferred to the company's controlling subsidiary Rui Desi, which will take over the subsequent business of Dazu Hongdie.