Red Star Development (600367.SH) subsidiary Dazu Red Butterfly has suspended production, and the follow-up business will be taken over by Ruitersida.

News from Wisdom Finance APP, Red Star Development (600367.SH) has announced that its controlling subsidiary, Chongqing Dazu Hongdie Strontium Industry Co., Ltd. (referred to as Dazu Hongdie), needs to relocate to a chemical industrial park according to the "Guidelines of the General Office of the State Council on Promoting the Relocation and Transformation of Hazardous Chemical Production Enterprises in Urban Population Concentration Areas" (State Council Document No. [2017]77). The relocation and expansion project of Chongqing Ruidesida Optoelectronic Technology Co., Ltd. (referred to as Ruidesida, with the same shareholders as Dazu Hongdie and the same proportion of shareholding) has been basically completed and is ready for trial production. The company plans to suspend production at Dazu Hongdie, and after the suspension, some production equipment will be transferred to the company's controlling subsidiary Ruidesida. The subsequent business of Dazu Hongdie will be taken over by Ruidesida.