The southeast is mired in lithium battery business and may face the risk of delisting

On April 28, the announcement of the old plastic film and plastic packaging products company, Great Southeast, showed that the company will terminate the implementation of the “300 million Ah high-energy lithium-ion battery construction project”. It is understood that the implementation of the project is the company's wholly-owned subsidiary Zhejiang Green Sea, the project is expected to have a total investment of 79.56 million Yuan. As of December 31, 2017, the company has invested a total of 83.767 million Yuan, with a project progress of 10.53%. The southeast is plunged into the muddy battery business and faces the risk of delisting.

The southeast is immersed in the lithium battery business, facing the risk of delisting

The southeast said that due to the current uncertainties in the subsidies for automotive batteries in the relevant national departments and the weak downstream demand, the company's power products have been carefully expanded in the face of sluggish market demand. At the same time, there is a large increase in the price of raw materials on the lithium battery, which causes the prices trend of the finished product market to be unclear. The company plans to terminate the implementation of the project in order to avoid the above risks.

At present, the lithium battery business involved in the southeast mainly includes lithium battery separators and lithium ion batteries. It is understood that the southeast has been involved in lithium battery separators for more than seven years, and has been involved in lithium-ion batteries for at least five years. Big Southeast wants to transform lithium battery to seek new profit growth points. Nowadays, the lithium battery business seems to be the “dumping bottle” for the company's development.

According to financial data, in 2016, the revenue of the large southeast lithium battery separator business was 1,565,500 Yuan, and the total revenue was 0.16%; the lithium battery business was 7,847,400 Yuan, and the total revenue was 0.79%. In 2017, the company's diaphragm sales volume was only 1,174,800 square meters, down 30.94% year-on-year; lithium battery sales volume was 1,337,700, down 24.35% year-on-year.

On the one hand, the development of lithium battery business is not satisfactory. On the other hand, the company's heavy-duty online game field is also slow. In 2016 and 2017, the net profit of the Great Southeast is 186 million Yuan and 568 million Yuan respectively. To make matters worse, the first quarter report showed that the large southeast achieved revenue of 291 million Yuan, up 31.28% year-on-year; net profit loss was 6,457,700 Yuan, down 169.2% year-on-year. This means that the dilemma in the Great Southeast is still not improving.

It is worth mentioning that the southeast that is in deep trouble will usher in the controlling shareholder. On January 2 this year, the southeast announced that the company's controlling shareholder, the Group is negotiating with Jiangsu Baineng New Energy Automobile Co., Ltd. about the equity transfer. If the agreement is signed and the transfer is finally completed, the company's control will change.

The page contains the contents of the machine translation.