Foshan Lighting "Processing" Two Lithium Battery Project Company

Foshan Lighting announced on the evening of June 17 that the company plans to deal with two lithium battery project companies to strengthen the direction of the main business related to lighting.

According to the announcement, the company intends to transfer a 51% stake in Qinghai Fozhao Lithium Electrode Materials Co., Ltd. at a price not lower than the evaluation price. As early as August 17, 2012, the company had jointly invested with Qinghai Weili New Energy Materials Co., Ltd. and other four companies to establish Qinghai Fozhao Lithium Battery Co., Ltd., which invested 25.5 million Yuan, accounting for 51% of the shares. However, due to factors such as market sales channels, Fossil Lithium Battery Co., Ltd. has not been able to operate normally. As of the end of 2012, it has accumulated a loss of 11.23 million Yuan, and will still bear the expenses of factory rent and equipment depreciation. The transfer of the equity of Fozhao Lithium Electric Co., Ltd. is to avoid further expansion of losses, reduce investment risks, and concentrate on developing the main business.

In addition, the company also intends to liquidate and cancel Guangdong Fozhao Guoxuan power battery Co., Ltd. It is reported that the company signed an agreement for Foshan Lighting and Hefei Guoxuan in April 2011 to jointly set up the fund. Since the establishment of the company, the joint venture has invested a large amount of manpower and material resources in market development and production preparation, but with the changes in the market environment, the company has not been able to operate normally. Audited by an accounting firm, the company's accumulated losses amounted to 13.856 million Yuan as of the end of 2012. In order to avoid greater losses, the parties decided to liquidate and cancel the Buddha Zhao Guoxuan through full and friendly negotiations.

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