Elec-Tech implicated or suffer a loss of 44 million 380 thousand yuan

Elec-Tech issued 10 shares of the company on major risk issues notice, the disclosure of NVC have significant illegal guarantees, will likely bring investment losses for the company.

Wu Changjiang is involved in illegal guarantee loss of funds and NVC

Elec-Tech recently received the NVC board bulletin, the Chongqing Municipal Higher People's court in the NVC board request freeze bank accounts in Chongqing NVC cleaning process, there is a serious risk because of Wu Changjiang and other matters: the original Chongqing NVC management was a major violation of security issues, will bring huge economic losses for Chongqing nvc.

Elec-Tech holds the Hongkong Stock Exchange listed company NVC holdings of 846 million shares of common stock limited company, accounting for 27.03% of the outstanding common stock, as the largest shareholder.

Notice that Wu Changjiang et al Chongqing NVC bank for Chongqing en Weixi Industrial Development Co. Ltd., Chongqing Lei Lijie Industrial Co., Ltd. to two development bank loans to provide huge collateral security guarantee. The NVC board of directors preliminary understanding, grace Wei West shareholders Wu Xianming is one of Wu Changjiang's father-in-law, en Weixi company is an affiliate of Wu Changjiang; potential related party company is Wu Changjiang Lei lijie. At present, the two companies borrow money unaccounted for, has not been able to repay bank loans, Chongqing NVC will likely bear huge joint liability.

For the serious violations of security issues, Wu Changjiang did not inform the NVC board of directors, no more consideration and approval of NVC board of directors, the shareholders' meeting. According to the NVC board of directors of Wu Changjiang Chongqing NVC original management mandate, Wu Changjiang has no right to NVC under the relevant assets of the subsidiary to provide guarantee for other party.

The bank accountable. Elec-Tech or loss of 44 million 380 thousand yuan

As of now, Chongqing NVC company informed Lei Lijie, en Wei West has to China Dadukou branch of bank submitted anticipatory breach notification letter, Chinese Dadukou branch of bank under the loan contract to exercise the loan ahead of maturity and rights, Lei Lijie company, en Wei west company for early repayment of the loan principal of 163 million 600 thousand yuan and the loan as of August 31, 2014 the interest of 590 thousand yuan. But the borrower Lei Lijie company, the company has refused to perform the obligation to repay. China Dadukou branch of Bank of Chongqing had sent the NVC to fulfill security responsibilities notice requirements, Chongqing NVC fulfill warranty obligations. If the collateral obligation is enforced banks, will caused direct economic losses of about 164 million 200 thousand yuan in Chongqing nvc.

Elec-Tech is the largest shareholder of NVC, as of now, the company of NVC's long-term equity investment amounted to 1 billion 617 million yuan. In view of the above risk issues will likely bring huge economic losses for NVC, the company will be based on the progress of the event assessment on the impact of investment, and in strict accordance with the relevant provisions of accounting standards for accounting treatment China.

According to estimates if NVC to fulfill the Elec-Tech, guarantee the loss of 164 million 200 thousand yuan, the pro rata basis maximum loss amount of about 44 million 380 thousand yuan. After consulting the lawyer, because of irregularities in the operation of the bank guarantee matters in Chongqing NVC, Chongqing NVC will claim their legitimate rights to the relevant parties through judicial means, whether a loss will occur is still uncertain.

De Ho Runda said in the announcement, firmly support the NVC board of directors, the shareholders' meeting to remove Wu Changjiang's position, firmly support the NVC for the action taken to reduce and recover the loss of the company.

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