Zhongli Group terminates BAK Power's tens of billions of restructuring and abandons its entry into the lithium-ion battery category

A major restructuring plan with a price of tens of billions and planning for nearly a year, the 'termination button' was pressed at the beginning of 2019. On the evening of January 10, Zhongli Group announced that it would terminate the acquisition of Shenzhen BAK Power Lithium Battery Co., Ltd. This also means that Zhongli Group has given up entering the lithium-ion battery category. Zhongli Group explained that the decision was made in conjunction with the macro situation and the actual situation of the company. A person familiar with the matter disclosed to a reporter from the Securities Times·e Company that with the decline of the lithium-ion battery subsidy policy, Zhongli Group believed that the target company was overvalued, and finally decided to withdraw and move into the electronics field. At the same time, Wang Weifeng, the chairman of Zhongli Group and the son of the actual controller, announced his appointment as the general manager of the company. He happened to have previously served as the general manager of the subsidiary. Termination of the acquisition of BAK Power Early last year, Zhongli Group announced a major asset restructuring notice, announcing that it intends to acquire shares held by Shenzhen BAK Battery Co., Ltd. and Tibet Haoze Trading Co., Ltd. by way of issuing shares and paying cash. The equity of the underlying company. It is initially estimated that the transaction price may reach 10 billion yuan. For this major asset reorganization, Zhongli Group has been preparing for nearly a year and will suspend trading on February 5, 2018. Since then, trading was resumed on July 28 last year and continued to promote major asset restructuring. Until January 10 this year, Zhongli Group announced the termination of this transaction. Regarding the reason for the termination of this major asset reorganization, Zhongli Group explained that during the planning of the major asset reorganization, it faces macroeconomic environmental factors such as large fluctuations in the secondary market and deleveraging, combined with the actual situation of the target company and the company’s future development plan. , There is greater uncertainty about this major asset reorganization. The company carefully listened to the opinions of all parties and discussed with all parties to the transaction. In order to adequately protect the interests of all shareholders of the company and all parties to the transaction, the company decided to terminate this major asset reorganization. Zhongli Group stated that the termination of the major asset restructuring is the result of careful study by the company and friendly discussions with relevant parties. It will not adversely affect the company's business development, operating performance and financial status. The person familiar with the matter disclosed that the 'stop button' was pressed this time because the company believes that with the decline of the lithium-ion battery subsidy policy, Zhongli Group believes that the valuation of the target company is too high, and continued acquisitions will bring more to the company. Risks, so in the form of seeking stability, the above decision was finally made. Prior to this, there was also news that BAK Dynamics plans to be listed on the Science and Technology Innovation Board independently. As a shareholder of BAK, Changxin Technology stated earlier this month that it was informed that BAK Power had received information collection forms from relevant departments and obtained an on-site visit from the Shanghai Stock Exchange. BAK Dynamics is currently undergoing a shareholding system reform. Focusing on electronics, Zhongli Group also stated in the announcement that it has made a new strategic plan for future development: continue to develop and expand with high quality in the areas of special cables, new polymer materials, optical communications, and photovoltaics. Zhangda electronic products, focusing on Zhangdaguang cables, photovoltaic industry chain, overseas business and overseas projects including energy storage products. Continue to promote technological innovation, increase automation and intelligent manufacturing technology, strengthen the company's development stamina, and maintain its leading position in the industry. The Securities Times reporter noticed that on December 11 last year, Zhongli Group announced that it would raise 1.68 billion yuan through a non-public issuance of stocks and acquire 49.14% of shares in Zhongli Electronic Information Technology Co., Ltd., a holding subsidiary, to change it. It is a wholly-owned subsidiary. Zhongli Group stated: The acquisition of Zhongli Electronics’ equity will help to fully utilize Zhongli Electronics’ industrial advantages, improve company performance, urge the company to further extend the communications product industry chain, improve the company’s high-end communications product structure, and expand its sales scale. Strengthen market competitiveness and sustainable development capabilities to lay a solid foundation for the realization of the company's long-term strategic plan. On January 10, Zhongli Group received the acceptance slip from the China Securities Regulatory Commission for the above-mentioned additional issuance. The CSRC considered that the application materials were complete and conformed to the statutory form, and decided to accept the administrative license application. 'Shaodongjia' announced the termination of the major asset reorganization. At the same time, Zhongli Group also announced that the company's director and general manager Chen Bohan would no longer serve as the company's general manager. Nominated by the company's chairman Wang Boxing, the board of directors agreed to appoint Wang Weifeng as the company's general manager. Up to now, Wang Weifeng directly holds 7.2 million shares of Zhongli Group, accounting for 0.83% of the company's total share capital. It is worth noting that Wang Weifeng, who was born in 1980, has a father-son relationship with Wang Boxing and was once the general manager of Zhongli Electronics. The emergence of Zhongli Group's 'father-son gear' has also sent a signal to the outside world to enhance electronic competitiveness and seek progress while maintaining stability. According to the announcement, Wang Weifeng graduated from Canayo Moc University and Shanghai Jiaotong University MBA, and has served as deputy general manager and general manager in many companies. In particular, the position of general manager at Zhongli Electronic Information Technology Co., Ltd. is also in line with the new positioning of 'key electronic products' mentioned in the announcement, and it can be regarded as a familiar road.