FSL cut "parent" Zhongxin in new energy

Get the opposite of what one wants For FSL, the company's new energy from the original head of Zhong Xincai's vision has become increasingly distant.

In August 29th, following the June this year announced its intention to Clearing Corp's New Energy Company -- Guangdong fozhao GuoXuan Power Battery Co Ltd (fozhao GuoXuan) after the company released the same day in the mid year performance report at the same time, and the disclosure of its other New Energy Company Qinghai fozhao lithium electric Co. Ltd. (cathode material fozhao lithium battery) the latest the progress of equity transfer.

FSL said in a statement on the same day, in order to avoid further losses, reduce the risk of investment, focus on the development of the main business, the company's board of directors agreed to transfer 51% stake in fozhao lithium. Previously, due to the influence of market sales channels and other factors, as the Buddha lithium has failed to normal production and operation, and will undertake plant rental, equipment depreciation and other expenses. Audited by an accounting firm, as of June 30, 2013 the cumulative loss of 19 million 762 thousand and 500 yuan.

The results show that the equity transfer, finally, Wuxi maritime investment company limited to 10 million 17 thousand and 800 yuan low successfully won the 51% stake in fozhao lithium. At the outset, the company's cash contribution amounted to 25 million 500 thousand yuan.

"As the Buddha has been in the production of lithium, no production operations are normal basically. If you do not stop in time, the company will continue to bear the cost of factory rent, equipment depreciation. The same day, the company insiders say.

At the same time, the same day, FSL, a paper petition will be the company's third new energy subsidiary - Qinghai Buddha according to lithium energy development Co., ltd..

The company said, according to the issues of Qinghai lithium energy fails to return the loan, the company has repeatedly sent by the Dunning letter and sent people to Qinghai collection, promote the timely repayment. But as of August 26, 2013, Qinghai lithium energy has not yet returned arrears. In order to ensure the safety of the company's funds, protect the legitimate rights and interests of the company is not compromised, the board of directors agreed to initiate proceedings against Qinghai lithium energy.

In May 2013, the company served as chairman by Pan Jie, Zhongxin will no longer serve as the company director. It is worth mentioning that, in the wake of the resignation of the post of chairman of the board of directors, FSL for the Buddha's attitude towards lithium energy has undergone a radical change.

Data show that the Buddha according to Li energy was founded in 2009, when FSL invested 29 million 230 thousand yuan, accounting for the total share capital of $38%. In its latest ownership structure, FSL cash contribution increased to 38 million yuan, the shareholding ratio unchanged.

In addition, Zhong Xincai, second son Zhong Yonghui 29% of the shares held by the Qinghai skyline (Hongkong) rare element technology development company limited to technology invested 33 million yuan, accounting for 33% of the shareholding ratio. Up to now, the Buddha according to the legal representative of lithium energy is still served by Zhong Xincai.

In early December 18, 2012, FSL released a claim to provide financial assistance to the shares of the company's announcement, the Board agreed to cash to fund and bank loans to fozhao lithium energy financial assistance funding amounted to 43 million 320 thousand yuan. Period of four months from the date of the company and the commercial bank, according to the agreement signed by Li Li Li energy.

At that time, in Zhongxin still served as chairman of the company and the vote to avoid a situation, the board of Directors believes that the financial aid will not affect the normal operation of the company, at the same time can solve fozhao lithium energy short-term liquidity problems, the early realization of investment income, in line with the overall interests of the company.

In fact, as early as January 5, 2011, the company also borrowed fozhao lithium hand to fozhao lithium energy for financial assistance, amounting to 25 million yuan. April 2, 2011, the above 25 million yuan loan and loan interest of $282071 has been returned to the former.

However, since its inception, the Buddha has not yet achieved profitability lithium energy. As of June 30, 2013, according to Buddha lithium energy revenue 0 yuan, operating profit of -515.22 million, net profit of -515.22 million.

With the bell to go to the company's management, FSL is accelerating its pace of retreat in the field of new energy.

According to the company disclosed in the report shows that during the reporting period, lighting equipment and lighting all the income of the company revenues and profits from the traditional and new energy projects are lost.

In this regard, the Yangtze River Securities analyst Zhang Xiang seems, the domestic lithium battery material manufacturers loss is not surprising. At present, the key materials of lithium batteries include positive electrode, negative electrode, electrolyte and separator. Due to the limited demand for expansion, there are many problems.

Due to the domestic lithium battery related materials in excess capacity stage, the upstream raw material prices in the next period of time will remain low. Zhang Xiang said. With the gradual increase in the low-end market competition, gross profit margin will accelerate decline. By then, even if the bulk shipments can not compensate for the negative impact of gross profit decline. "

Buddha according to the country is now facing the fate of being liquidated. In June 18th this year, the company announced that the audit by the accounting firm, as of the end of 2012, the company accumulated losses of 13 million 855 thousand and 800 yuan. In view of the above situation, in order to avoid greater losses, the joint venture by the full and friendly consultations, decided to cancel the cancellation of the kingdom of Zhao xuan.