BDO LED lighting asset integration failed

Suspension of more than three months of de Ho Runda (002005) announcement on the evening of 13, said the company decided to terminate the planning of asset integration. According to reports, the company is planning a major event for the integration of LED lighting assets. The company promised not to plan these major events within three months.

Reasons for termination of significant events. Elec-Tech said, the major issues in the planning process, NVC and NVC before there was a division director of CEO, Wu Changjiang. In mid September 2014, early November, Wu Changjiang was found illegal guarantee matters related to reduce the carrying amount of cash caused by NVC, has seriously affected the asset integration ability to pay.

The company said that with the NVC board were repeated communication, careful analysis of the level of debt and cash flow situation of NVC, and discusses the possibility of NVC change payment tools. But considering NVC's production is recovering, affected by the violation of security matters, the decline of its cash reserves, and also do not have the additional shares of the time window, so that there is not the right time to perform the integration of assets.

It is worth mentioning that, in 10, Elec-Tech has announced that Wu Changjiang in Chongqing for alleged violations of NVC Chongqing Huabian Lamp Manufacturing Co. Ltd. and other 4 companies provide huge bank loan guarantee collateral security. A total of 8 loans of nearly 400 million yuan, 173 million yuan of illegal guarantee plus September disclosure, Chongqing NVC total was 550 million yuan bank deduct forcibly assume joint liability guarantee.

In addition, the company also said Chairman Wang Donglei in an interview in November 11, 2014 also mentioned the integration issues of LED lighting assets, the matters subject to execution. Although the company terminated the LED lighting asset integration issues, but later the company will continue to promote the depth of cooperation with NVC, to promote the healthy development of the two listed companies.

Wang Donglei in an interview also said that the current NVC all the bases including the headquarters were under control, all operators and distributors also support the development of the company. The next step Elec-Tech ready to integrate NVC brand resources, business platform for the development of O2O intelligent Home Furnishing set and lighting, take the assets to raise public mode transition to the internet.

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