Agreement orders into LED listed companies unspoken rules?

January 8th, KingSun emergency announcement announced that Guangzhou and Choi Ji culture dissemination limited company to terminate the agreement, the 1 billion 500 million single "freeze" 4 million 670 thousand. However, the first half of this year, BDO claimed 5 signed large orders for the contract, but in November 2012 the media exposure, 5 a total of 1 billion 75 million yuan contract in 4 for the framework agreement (about 1 billion yuan), with no risk of default, a sales contract, but there is no record of delivery. Two events are "agreement" order, this is a coincidence, or is it LED industry listed companies play the unspoken rules?

The 1 billion secret contract

In the first quarter of half a year ago, investors also excited elec-tech. The announcement of the LED "breath Elec-Tech daily operation of major contracts total up to 1 billion 75 million yuan".

However, in October 26th three quarterly bulletin of the eye popping: 1~9 months of this year, the total revenue of 1 billion 945 million yuan, representing a decrease of 5.49%; attributable to shareholders of listed companies net profit of 115 million yuan, down 57.41%. But on the other hand, as of September, the company included in the current profit or loss of government subsidies has reached 164 million yuan.

Accompanied by dismal performance is that the above 5 contracts totaling about $1 billion 75 million in the first three quarters of this year to honor only $59 million 58 thousand and 500.

In November 2012 the media exposure, a total of about 1 billion 75 million yuan contract, there are more than 1 billion yuan contract (only after the "five contract" orders amounting to 54 million 110 thousand yuan for the formal contract for the sale of the purchaser) without the risk of default, and the purchaser Shareholder Information disclosure norms circumstances.

In this regard, China responded that the specific issues in the agreement in the subsequent formal contract or order to be further defined, and signed a formal contract or order is still uncertain. And said that the company has made a risk warning in the relevant announcement, there is no false statement or misleading investors.

Elec-Tech yesterday admitted that "the performance of the contract situation is not ideal, may not be able to complete the sales amount stipulated in the contract in the contract agreed time, please note that the majority of investors investment risk. "

On the ground of 1 billion 500 million order tracking

In November 25, 2011, just landing small plates KingSun attracts a large number of funds to join, although the market to new lows, but the stock has remained strong, the listing date to December 22nd rose more than 20% of the maximum period, institutions frequently appeared billboard. In December 22nd, KingSun rose to uncover the mystery. The company signed a major agreement, Guangzhou Ji Color Culture Communication Co., Ltd. (hereinafter referred to as Kat color company) plans to purchase 1 billion 500 million yuan in the company's display screen for 5 years. However, such a heavy agreement, followed by the implementation of the road is faltering. Yesterday, KingSun sudden announcement, announce the termination agreement with Choi Ji company.

KingSun company signed an agreement with Choi Ji, the disclosure of the cooperation company. Announcements, the company registered capital of only 5 million yuan, is a little-known company. Choi Ji company also is the Xinhua news agency Xinhua media advertising agency in Guangdong Province, in accordance with the scope of the Xinhua news agency have provisions in the development, use and management of business rights, has a good reputation, large scale, strong financial strength, good performance ability.

However, only 5 million yuan of registered capital of the company can be regarded as "with strong financial strength and good performance ability"? In addition, KingSun read the prospectus found that there are many problems in production capacity of the company, display and other products in 2010 total revenue of only 56 million 150 thousand yuan, accounting for 10.17%; 2011 1~6 month, display and other but the product total revenue 11 million 405 thousand and 900 yuan, accounting for only 3.57%. How can such capacity to ensure the completion of 5 of the order of 1 billion 500 million years, many investors have questioned the agreement.

Facing the market challenge, KingSun quick response. Publicly stated that the company and its own color companies have the ability to perform: the color of the company needs to purchase funds from the screen self financing, information dissemination of revenue and advertising operating income of the project. In addition, the company revealed that the agreement before the signing of the project had a detailed understanding, and the color of the company's ability to operate the project assessment. According to the analysis of "Xinhua media LED display project future operations, companies that Kyrgyzstan color company has to undertake the project and the implementation of the agreement; and for its own capacity, KingSun believes that in view of the project is taken in the next 5 years by instalments, flat single way, will not cause too much pressure on the company's display capacity. Single process, beyond their own production capacity, the company will be the actual situation of outsourcing production.

Although the huge orders early sign, KingSun "believe" ability to fulfill the agreement with the two sides. However, according to the company in October 13, 2012 to disclose the data, in 2012 the company had originally planned to buy 300 million yuan of the amount of only $4 million 667 thousand. Six months later, its performance was significantly lower than the expected 300 million yuan. Accounted for only about 1.5% of the total annual purchase amount of the project; the contract covers a total area of about 256.38 square meters. This is the first half of 2012, the actual implementation of the 4 million 667 thousand figures.

In the face of such embarrassing data, KingSun explained that due to the market demand for LED display can not effectively release, LED display business competition, the government for approval of the screen construction more rigorous, and the cooperation in construction construction company