We did hear of interested venture capitalists in the AGM address. So this is a start from that.
Also I guess it is giving (away to) these new guys (venture capitalists) a piece of the action, without them taking part in the Arasor story. They want the bit they can see profit in.
But it also enables ARR to keep going on what Novalux was developing anyway, with ARR's technology added on. And without risk to ARR's capital. (what there is of it).
I sort of read in the announcement that the CEO wants his Necsel light engine baby to be delineated and separate from the general ARR structure.
And that might be very good, since ARR hasn't made decisions well in the past as far as earnings go, and it might also mean the separate departments can allow for genuine productivity from the Necsel group to just do it, and get on with the show and make it happen, without hippos/ stick-in-the-mud decision crimpers from ARR getting in the way. ARR has bought lots of small electronic businesses in the past and that fraternity is probably an odd mix of souls (and egos).
I read 'focus' in the announcement as well. Focus to get on with it, outside of entanglements created from past ARR deals. And focus helps develop vision, and vision ties the rest of the group towards an end, eventually.
Inflation is running around 8-11% in China so 10% is relative and probably expected these days.(except in US where it's sort of imploding on itself with debt and lack of credit at the same time).
ARR still has the reigns to this and it isn't going away anywhere. I see this like what it says it is. A spin out. Imagine a mining company spinning out another company from it's resources. New shares blah blah, but overall assets and profits still are designed, to come back in part to the source where it might not have happened before.
