Zico Chemistry: Dealer shares trigger a bizarre lawsuit

"Investor" researcher Li Qingzhou Chemical Co., Ltd. 's success, let a lot of people jubilant, in addition to Zico chemical control of the actual Zhao Dongzhi and some stock executives, as well as the company's big dealer bosses.　　Dealer shares, nature is conducive to improve the enthusiasm of dealers, but it is also give us a trace of fear, the listing will produce the effect will be produced in tandem with the company, thus constituting a common beautification of the issuer's performance benefits driven. Dealers also sparked a suspicious lawsuit, 2010, has been a shareholder qualification certificate but failed to buy a stake in the Zibo Bo Shuo Chemical two prosecutions Zico chemistry, but again two of strange in a short time.　　We speculate that this is the Zico chemical to make a certain compensation in the condition of the exchange of Bo Shuo Chemical, so as to avoid the lawsuit on the Zico of the smooth listing of chemical barriers. Mysterious TL company Zico Chemical main PVC plastic modifier, the main products include ACR impact processing modifier, Amb modifier and ACM low-temperature toughening Agent, of which, ACR product sales accounted for more than 70%. The company was first established in December 2003, and in September 2009 completed restructuring.　　The company actually controls artificial Zhao Dongzhi.　　According to the prospectus disclosed, the company ACR processing modifier in the domestic market share of more than 30%, "in the industry's exclusive independent research and development and production of Amb modifier, ACM low-temperature toughening agent products, compared with the market existing products have a clear competitive advantage."　　However, domestic ACR industry ranked third, the company's main competitor Shandong Huaxing Auxiliaries Co., Ltd., a sales director said that Zico Chemical, Shandong Huaxing and Shandong Richful (the second domestic ACR manufacturers) The three companies, "are taught by the same teacher, technically at the same level." From the company's sales structure, 2007-2009 years, the sales of direct customers accounted for about 35% of total sales, but from 2009 onwards the size of the increase in sales, 69.7%, the corresponding, the dealer's sales accounted for the ratio down to 30.3%, to the first half of 2010,　　The proportion of direct sales rose further to 75%, and the share of distribution continued to fall to 25%. We note that in the company's largest five direct customers, TL Chemical Co., Ltd. as a single largest customer, the first half of 2010 sales reached 35 million yuan, the proportion of total sales reached 10.3%, there is a certain degree of single customer dependence, increased business risk.　　And the second largest customer of Korea Dan Stone Company's sales gap is large, only 6.92 million yuan, accounting for only 2%. TL Chemical Co., Ltd. is a company? The prospectus has not been disclosed and we have not been able to find any information on the company through various means, for this reason, the contact number of the head of Securities department, the Secretary of the Board and the deputy general Manager, Yang Yuanqui, which was issued on January 24, was answered by an employee of the purchasing department of the company. This is just a public fax call from the company, "This call is hard to find Yang.　　From January 24 to 25th, we made several calls to Yang Yuanqui's mobile phone in Beijing, which was not answered. Dealers benefit binding to this issue before the release, in addition to Zhao Dongzhi, the company also has 45 natural shareholders.　　Among them, there are a large number of dealers in the owner of the body. After inspection, the company's shareholder dealer sales in the dealer occupies a large proportion in 2009, the shareholder dealer sales accounted for 88.7% of all dealers, accounting for the proportion of total sales of 26.9%, 2009 respectively 85.2% and 21.33%.　　Visible, the shareholder dealer to the company sale importance. In accordance with the 2009 sales, the company's first three major dealers are holding the company's shares, sales accounted for more than 8.9% of the first major dealer customers Shandong Yiyuan Chemical Co., Ltd., the legal representative of Sun Chuo holding 5.35% per cent of Japan branch; the second largest customer Hangzhou Zico Chemical Co., Ltd. sales accounted for 8.4%,　　The legal representative Cuillon holds 3.61% of the company's shares, and the third-largest distributor Yiyuan Zico Polymer Materials Co., Ltd. sales accounted for 5.7%, the legal representative of the Tang Shouyu holds 2.11% shares in Japan.　　The dealer's share is advantageous to the company and the dealer's benefit binding, undoubtedly, is advantageous to enhances the dealer to the lawsuit loyalty and the sales enthusiasm, to the company's performance growth is not good. However, it should also be seen at the same time, dealers are also corporate customers, the sale of shareholders have constituted a serious related party sales, in the market-building effect of the drive, the shareholders of the distributor and the company share a false increase in sales motives and possibilities, although there is no evidence,　　But investors still need to remain cautious about the rapid growth in sales.　　Interestingly, the dealer's stake also sparked a lawsuit. May 2010, as the company's third largest distributor in 2007, Zibo Bo Shuo Chemical Company filed a civil lawsuit, the request Zico chemical repayment of its investment 3 million yuan and the benefits of 1,187,550 yuan, in July, Weifang, the court dismissed the lawsuit.　　August 2010, Bo Shuo Chemical filed a civil appeal to the High Court of Shandong province, requesting the revocation of the above-mentioned judgment of Weifang Chinese Academy and the revision of law. In this when the mouth, Bo Shuo Chemical industry in less than two months after the suspicious withdraw, September 28, 2010, High Court in Shandong province to allow Bo Shuo Chemical withdrew the appeal.　　November 1, 2010, Bo Shuo Chemical and Changle County People's court in Shandong province to bring civil action, to repay the December 27, 2005 won the equity bonus of 100,000 yuan.　　A short 8 days later, Bo Shuo Chemical but also strange to Changle County court withdrew the prosecution. Through these can be seen, Bo Shuo Chemical once acquired a stake in Zico chemical qualifications, but for some reason eventually Zico chemical cancellation, these reasons may be, 2008, Bo Shuo Chemical distribution sales only 1.386 million yuan, which led to the prosecution of Bo Shuo Chemical. As for the Bo Shuo Chemical's withdrawal, we believe that this lawsuit if the normal launch will be on the listingconstitutes a serious impact, Zico chemical has to be through other ways to the Bo Shuo chemical compensation, as a condition of exchange, Bo Shuo Chemical choice to withdraw. Unfortunately, we can not find any information on the Bo Shuo Chemical industry through the public information and contact methods.　　To the above lawsuit, we interviewed the Zico chemical IPO handling lawyer Beijing Kangda law firm Lihe, the other side said, does not accept any interview, to this matter all legal opinion has already to the company board secretary Yang Yuanqui to reflect.　　The investment of intangible assets violates the previous capital and increase of Zico chemistry in the company law, the large shareholder has repeatedly invested in the valuation value of intangible assets, and the amount of capital contribution is higher, although the financing process conforms to local policy, but violates the provisions of the company law. In 2003 when the company was established, the large shareholder Zhao Dongzhi the land use right to invest 2.64 million yuan, the proportion of registered capital reached 28.4%.　　According to the prospectus disclosed that the right to use the land for the Zhao Dongzhi agreement to sell the way to obtain, but the original value of the book is zero, in Shandong Xinhua Limited liability accounting firm after the valuation of the sudden increase to 2.64 million yuan. 2005 when the company increased capital, Yong-li chemical Industry and intangible assets-patented technology, nuclear and shell bond between the nuclear-shell graft copolymer and its preparation method of 13.48 million yuan to increase capital.　　As the patented technology has been identified as Zhao Dongzhi practically all, therefore, Yong-Li Chemical will be the above-mentioned increase in the acquisition of shares and free transfer to Zhao Dongzhi.　　The book value of the patented technology is zero, after the evaluation of Shouguang Ludong Limited liability accounting firm, the value reached 13.48 million yuan. After the increase, the intangible assets of the proportion of the investment reached the Zico chemical registered capital of 30%, in violation of the "Company law" intangible assets in the capital should not exceed 20% of the provisions. Although the provisions of Shandong Province to encourage the financing of technology to make these actions conform to local policy, but local laws and regulations in conflict with the state, when the national laws and regulations prevail.