Lok Tianwei Silicon Industry arrears not also major shareholder Leshan Electric Power was dragged into the water

Since last year, a number of listed companies have fallen into polysilicon "traps". As Leshan le Tianwei Silicon Technology Co., Ltd. (hereinafter referred to as "Le Tianwei Silicon") the two major shareholders of the *st Tianwei (600550.SH) and Leshan Electric Power (600644.SH) due to the overdue loans, respectively, are required to fulfill the security obligations. *st Tianwei has been plunged into a huge loss due to the polysilicon business and is in consultation with Leshan electric power, which plans to sell to the latter all the shares of Le Tianwei silicon. However, as a controlling shareholder of the Leshan Electric power in the last year, the net loss of nearly 300 million yuan, still continue to the Lok Tianwei silicon industry injection, trying to "gamble" in the polysilicon industry. A new energy industry person to the "First financial daily" reporter said, le tianwei silicon Industry since 2009 production to now, has not reached the mass production, the product has not been tested by the market, so cast more funds to carry out technical reform is also basically difficult to achieve the desired effect. The subsidiary was Dun April 3 night, the Leshan Electric power issued a notice, recently its subsidiary company Le Tianwei Silicon Co., Ltd. received weapons equipment Group Financial Limited Liability Company (hereinafter referred to as "military-loaded finance company") reminder letter, the military outfit Finance company requirements Le Tianwei Silicon Company to fulfill its repayment obligations. The military outfit Finance Company believes that according to the agreement between Leshan Electric power and *st Tianwei, the investor should provide guarantee or shareholder financing according to the proportion of the capital contribution for Lok Tianwei Silicon Company's financing loan. Lok Electric Tianwei Silicon Company's borrowings in financial institutions are guaranteed by the Leshan electric power and *st Tianwei in proportion to their contribution. Le electric Tianwei Silicon Company is by *st Tianwei and Leshan Electric power jointly funded 500 million yuan in December 2007, two companies hold 49% and 51% of the equity. Lok Electric Tianwei Silicon Co., Ltd. originally planned to invest about 2.2 billion yuan, the construction of 3000 tons/year polysilicon project. However, due to the decline in polysilicon prices, le Tianwei 3000 tons/year polysilicon project has been discontinued since November 2011. Ping an securities [Weibo] the executive general manager of the Ministry of Energy and Finance, Wang Haiseng, told the first financial daily that Leshan power and *st Tianwei had invested too much in the Polysilicon field, resulting in a very high depreciation cost each year. In order to ensure that the Lok Tianwei Silicon Company discontinued the technical renovation period due to debt repayment, * St Tianwei from March 2013 to September to the Lok Tianwei Silicon Co., Ltd. to provide a total of 325.4 million yuan of commissioned loans, which through the military-installed financial company to the Lok Tianwei Silicon Industry company to provide about 297 million yuan of commissioned loans, through the industrial and Commercial Bank of Baoding Chaoyang Branch to its 27.57 million-yuan commissioned loans. However, in the above commissioned loans, there are already two principal amounts of 44.745 million yuan and 67.09 million yuan of loans expired on March 29, 2014. The military outfit Finance Company request Lok Electricity Tianwei Silicon industry repayment afore-mentioned two loan principal and interest, Shing and so on 6.8089 million yuan, Shangbi the finance company to pay the entrusted loan handling fee 52,800 yuan, total nearly 119 million yuan. Want to gamble again？ *st Tianwei, which has been dragged down by new energy industries such as polysilicon, has gradually stripped the new energy industry and started to take a hard turn, as the Leshan Electric Power, which holds 51% per cent of the silicon industry in Le Tianwei, plans to receive it and inject it continuously. April 1, *st Tianwei announced that the Leshan Electric Power has signed the "about the Leshan le Tianwei Silicon Technology Limited liability company equity and other matters of the framework Agreement." According to the agreement, as the current Leshan le Tianwei Silicon Technology Limited liability company (hereinafter referred to as "Le Electric Tianwei") operating difficulties, *st Tianwei proposed the transfer of the interest of the 49% shares of Le Tianwei. On the same day, Leshan Electric Power said, in order to ensure the holding subsidiary of Le Tianwei Silicon capital demand, does not appear the risk of capital chain breakage, the company provides funds of about 110 million yuan for the Lok Tianwei Silicon industry daily capital turnover. "Due to the low threshold of polysilicon technology, in addition to this year's PV module prices have been slightly down, so the current polysilicon prices have been at the best period, there is no room for rise, the price can be maintained in 16~17 dollars/kg is good, le tianwei silicon Industry for technical transformation, and plans to expand capacity, nor is it particularly competitive. "Wang Haiseng said. In fact, as at the end of 2013, Leshan Electric power to the Lok Tianwei silicon industry to provide loans or commissioned a loan of 889 million yuan, including the way to increase capital to provide 195 million yuan. In the continuous provision of funds to the subsidiary, Leshan Electric Power itself has encountered a "big trouble." 2013 annual results show that the Leshan electric power to achieve operating income of 1.463 billion yuan, an increase of 0.87% than last year, to achieve operating profit-632 million yuan, lower than the last year 8464.31%, the net profit of the listed company shareholders is-299 million yuan, down 750.75%. Leshan power performance of a large "dive" and directly related to polysilicon. On the one hand, Lok electric Tianwei silicon industry due to the production of technical innovation, only a small amount of inventory sales, at the same time in order to maintain the day-to-day expenditure and technical transformation of the early investment, the increase in external financing, resulting in a corresponding increase in financial costs; On the other hand, Leshan electric power increased the polysilicon inventory, fixed assets, under construction projects to reduce the value of the preparation, increase 2013, Lok electricity Tianwei Silicon net profit is-739 million yuan, the influence belongs to the listed company shareholder's net profit is 377 million yuan. Last year, the Leshan electric Power for the holding subsidiary of Le Tianwei silicon industry using money or products, materials payment part of the outstanding works and materials, the remaining part of the way to be exempted from debt restructuring, resulting in debt restructuring gains and losses also reached 11.6443 million yuan. However, le electric tianwei silicon industry's technical transformation investment is far from over. Leshan Electric Power said, according to the Feasibility study report, the Lok Tianwei Silicon Industry technical renovation project Total investment will be in the original 759 million yuan on the basis of the increase to 989 million yuan. At the same time, as at the end of 2013, le Tianwei Silicon has been put into the total technical transformation funds 85.7 million yuan, mainly completed the reduction of tail gas energy-saving renovation projects. The new energy analyst said to the first financial daily reporter that there are not so many people bullish on the polysilicon industry,The so-called technical transformation, after three or four years, the market has been numb, Leshan power continuous capital investment may be a greater part of the reason from the need for some kind of capital operation.