MLS (also known as Forest Lighting) announced Tuesday, the company will be pumping in another RMB 500 million (US $71.95 million) in a subsidiary of Chinese LED chip manufacturer Aucksun Opto to expand in the upstream LED sector.

About RMB 348.8 million will be listed as Aucksun Opto’s subsidiary Huian Aucksun Opto’s registered capital, while the remaining funds will be invested as additional paid-in capital.

Prior to the latest investment, Aucksun Opto’s registered capital neared RMB 600 million, the company and its subsidiary Jiangsu Aucksun Opto respectively held shares of 66.67% and 33.33% in the Huian subsidiary.

Following the latest investment from MLS, Huian Aucksun Opto’s registered capital will peak toRMB 1.3 billion. MLS will acquire 26.88% shares in Huian Aucksun Opto. Meanwhile, MLS will obtain one seat on the three member board, and appoint a member to the Board of Supervisors.

LED chips manufactured at the Huaian Aucksun Opto plant will be preferentially supplied to MLS at market retail price.

According to MLS the strategic investment will assist it in extending into the upstream LED industry, and comprehensively integrate the company’s supply chain. This is crucial for MLS future developments, and at the same time will improve the company’s branding strategy, stabilize its raw material supply channels and improve its revenue. This can effectively improve the company’s revenue and improve its core competitiveness.