On Nov. 11 Huali Group said its proposal to invest up to about $500m in an
optical-communications company is a financial investment funded with the
company’s own cash and does not aim to obtain control. Huali said the target’s
technology is relatively advanced and aligned with global leaders. The
investment has board authorization; specific amount, stake and target valuation
remain under discussion. Huali said cash flow is healthy and leverage low, and
the investment will not affect core shoemaking operations or dividend policy.
Management will continue to focus on the shoe business, which is gradually
recovering while international capacity expansion is accelerating.
