It’s too late for Foshan Lighting to make up for it. After the 515 shareholders filed a lawsuit against Foshan Lighting, the incident continued to ferment. Shareholder complaints and the recent high-level shocks have caused Foshan Lighting to fall into a pattern of internal and external troubles. This result also makes Foshan Lighting lose its opportunity to transform into LED lighting.
The amount of the claim is over 200 million yuan
According to Foshan Lighting's announcement, 515 people have filed a civil lawsuit against Foshan Lighting on the grounds of “securities misrepresentation disputesâ€, with a claim amount of 73.43 million yuan and 82,000 Hong Kong dollars. In this regard, according to Li Jian, one of the plaintiff's attorneys and senior partner of Zhejiang Yufeng Law Firm, he is currently preparing for the fourth batch of stockholder litigation materials, which will be submitted to the court later this month. He said that according to the current number of lawsuits and the amount of claims, the final number of plaintiffs may exceed 2,000, and the amount of claims may exceed 200 million yuan.
In this regard, some industry experts pointed out that the lighting industry is currently transforming to LED lighting, and LED lighting has been in the profit of the Red Sea, making a large number of lighting companies collapsed last year, a large number of government aid to survive. At this time, Foshan Lighting broke out in an investor class action lawsuit, which will undoubtedly make the company worse in the LED lighting transformation. The relevant person in charge of the Foshan Lighting Board Secretariat did not make too many remarks when interviewed by Beijing Commercial Daily. It only said that the company's handling method is to respond to the lawsuit. As for the follow-up measures, it will be released in the form of an announcement.
However, this evasive response seems to expose the anxiety of Foshan Lighting. Because according to past practice, the probability of Foshan Lighting winning is almost zero. It is understood that in the past ten years, about 15,000 investors have filed more than 90 listed companies on the grounds of false statements on securities, claiming about 1.5 billion yuan. In most of these cases, the plaintiffs finally obtained all or by mediation or judgment. Most of the losses. In addition, Foshan Lighting has been punished by the Securities and Futures Commission for the existence of violations. In Li Jian's view, this will make Foshan Lighting's chances of winning the law plummet.
Former chairman involved in related party transactions
The trigger for complaints from Foshan Lighting was received on March 6, 2013 by the Guangdong Securities Regulatory Commission of the China Securities Regulatory Commission. The penalty decision made an administrative punishment for Foshan Lighting Zhong Xincai and Zou Jianping, the relevant parties to Foshan Lighting Disclosure and Violation, and Zhong Xincai was the former chairman of Foshan Lighting.
According to the announcement, Foshan Lighting had regular reports in 2010 and 2011, and the information disclosure of the interim report was illegal. Among them, only the amount involved in the unrelated disclosure of related transactions exceeded 100 million yuan. It is understood that Foshan Lighting concealed transactions with several related companies. In 2010, it involved funds of 39,394,600 yuan, and in 2011, the funds involved reached 83.21 million yuan. Most of the affiliated companies are controlled by relatives such as the son of Zhong Xincai directly or indirectly.
This has also led many insiders to speculate that Zhong Xincai may have transferred profits through such related transactions and guarantees. The high-level change after the event seems to increase this possibility. Just before and after the incident, Foshan Lighting experienced a series of high-level changes. The former deputy general manager of the company, Zou Jianping, resigned from Foshan Lighting on September 24 last year. Zhao Yong, former director and deputy general manager, resigned from his position at the end of last year. Zhong Xincai no longer served as the general manager of the company in April this year. Later, in May Foshan Lighting held a general meeting of shareholders, Zhong Xincai resigned as the chairman of Foshan Lighting.
Business or away from the center stage
However, for Foshan Lighting, its biggest problem may not be the litigation of shareholders and the change of high-level, but it may miss a big opportunity for LED lighting development, which may cause Foshan Lighting to be surpassed by competitors or further widen the gap. So far away from the central stage of the future lighting industry.
For all lighting companies, the development of LED lighting is a challenge and a big opportunity. Some insiders are blunt, and the high-growth period of LED lighting will be in the next eight years from now. During this period, the lighting industry is very likely to reshuffle, whoever can take the lead, who is likely to dominate the future lighting industry.
Foshan Lighting is a bit weak in the face of this big opportunity. He Zaihua, a senior researcher at China Investment Consulting, believes that from the perspective of the financial report of listed companies, Foshan Lighting's performance indicators are normal, its core competitiveness and internal structure are relatively perfect, and the company's modern management system is relatively mature. Will not have a big impact on the company's physical operations. However, the disclosure of violations of laws and regulations by listed companies will inevitably affect the reputation of the company, and may be adversely affected in the financing and sales links in the future.
Overcapacity and structural imbalances are major problems in the LED lighting industry. The negative effects of the expansion of the leading production capacity will soon be revealed. Although the capacity contained in the LED lighting market will gradually be released, core indicators such as product profitability and corporate net profit growth will decline significantly, and the sales price of related products will also fall, and the price war will not be far behind. “At the same time that major changes may occur in the industry environment, the management of Foshan Lighting has changed frequently. This is very unfavorable for the company's stable operation and strategic adjustment. Foshan Lighting will be in the double barrier of internal and external troubles in the future.†He Zaihua said.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
The amount of the claim is over 200 million yuan
According to Foshan Lighting's announcement, 515 people have filed a civil lawsuit against Foshan Lighting on the grounds of “securities misrepresentation disputesâ€, with a claim amount of 73.43 million yuan and 82,000 Hong Kong dollars. In this regard, according to Li Jian, one of the plaintiff's attorneys and senior partner of Zhejiang Yufeng Law Firm, he is currently preparing for the fourth batch of stockholder litigation materials, which will be submitted to the court later this month. He said that according to the current number of lawsuits and the amount of claims, the final number of plaintiffs may exceed 2,000, and the amount of claims may exceed 200 million yuan.
In this regard, some industry experts pointed out that the lighting industry is currently transforming to LED lighting, and LED lighting has been in the profit of the Red Sea, making a large number of lighting companies collapsed last year, a large number of government aid to survive. At this time, Foshan Lighting broke out in an investor class action lawsuit, which will undoubtedly make the company worse in the LED lighting transformation. The relevant person in charge of the Foshan Lighting Board Secretariat did not make too many remarks when interviewed by Beijing Commercial Daily. It only said that the company's handling method is to respond to the lawsuit. As for the follow-up measures, it will be released in the form of an announcement.
However, this evasive response seems to expose the anxiety of Foshan Lighting. Because according to past practice, the probability of Foshan Lighting winning is almost zero. It is understood that in the past ten years, about 15,000 investors have filed more than 90 listed companies on the grounds of false statements on securities, claiming about 1.5 billion yuan. In most of these cases, the plaintiffs finally obtained all or by mediation or judgment. Most of the losses. In addition, Foshan Lighting has been punished by the Securities and Futures Commission for the existence of violations. In Li Jian's view, this will make Foshan Lighting's chances of winning the law plummet.
Former chairman involved in related party transactions
The trigger for complaints from Foshan Lighting was received on March 6, 2013 by the Guangdong Securities Regulatory Commission of the China Securities Regulatory Commission. The penalty decision made an administrative punishment for Foshan Lighting Zhong Xincai and Zou Jianping, the relevant parties to Foshan Lighting Disclosure and Violation, and Zhong Xincai was the former chairman of Foshan Lighting.
According to the announcement, Foshan Lighting had regular reports in 2010 and 2011, and the information disclosure of the interim report was illegal. Among them, only the amount involved in the unrelated disclosure of related transactions exceeded 100 million yuan. It is understood that Foshan Lighting concealed transactions with several related companies. In 2010, it involved funds of 39,394,600 yuan, and in 2011, the funds involved reached 83.21 million yuan. Most of the affiliated companies are controlled by relatives such as the son of Zhong Xincai directly or indirectly.
This has also led many insiders to speculate that Zhong Xincai may have transferred profits through such related transactions and guarantees. The high-level change after the event seems to increase this possibility. Just before and after the incident, Foshan Lighting experienced a series of high-level changes. The former deputy general manager of the company, Zou Jianping, resigned from Foshan Lighting on September 24 last year. Zhao Yong, former director and deputy general manager, resigned from his position at the end of last year. Zhong Xincai no longer served as the general manager of the company in April this year. Later, in May Foshan Lighting held a general meeting of shareholders, Zhong Xincai resigned as the chairman of Foshan Lighting.
Business or away from the center stage
However, for Foshan Lighting, its biggest problem may not be the litigation of shareholders and the change of high-level, but it may miss a big opportunity for LED lighting development, which may cause Foshan Lighting to be surpassed by competitors or further widen the gap. So far away from the central stage of the future lighting industry.
For all lighting companies, the development of LED lighting is a challenge and a big opportunity. Some insiders are blunt, and the high-growth period of LED lighting will be in the next eight years from now. During this period, the lighting industry is very likely to reshuffle, whoever can take the lead, who is likely to dominate the future lighting industry.
Foshan Lighting is a bit weak in the face of this big opportunity. He Zaihua, a senior researcher at China Investment Consulting, believes that from the perspective of the financial report of listed companies, Foshan Lighting's performance indicators are normal, its core competitiveness and internal structure are relatively perfect, and the company's modern management system is relatively mature. Will not have a big impact on the company's physical operations. However, the disclosure of violations of laws and regulations by listed companies will inevitably affect the reputation of the company, and may be adversely affected in the financing and sales links in the future.
Overcapacity and structural imbalances are major problems in the LED lighting industry. The negative effects of the expansion of the leading production capacity will soon be revealed. Although the capacity contained in the LED lighting market will gradually be released, core indicators such as product profitability and corporate net profit growth will decline significantly, and the sales price of related products will also fall, and the price war will not be far behind. “At the same time that major changes may occur in the industry environment, the management of Foshan Lighting has changed frequently. This is very unfavorable for the company's stable operation and strategic adjustment. Foshan Lighting will be in the double barrier of internal and external troubles in the future.†He Zaihua said.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
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