Attached files
| file | filename |
|---|---|
| 8-K - Chisen Electric Corp | v195089_8k.htm |
| EX-10.5 - Chisen Electric Corp | v195089_ex10-5.htm |
| EX-10.6 - Chisen Electric Corp | v195089_ex10-6.htm |
| EX-10.1 - Chisen Electric Corp | v195089_ex10-1.htm |
| EX-10.2 - Chisen Electric Corp | v195089_ex10-2.htm |
| EX-10.3 - Chisen Electric Corp | v195089_ex10-3.htm |
| EX-10.4 - Chisen Electric Corp | v195089_ex10-4.htm |
Chisen
Electric Corporation Plans To Launch Lithium Ion Battery
Production
in New Manufacturing Facility
Replacing
Its Oldest Plant;
Local
Government Will Pay Costs of Building New Plant And
Relocating
Existing Production
ZHEJIANG, CHINA—(August 24,
2010) - Chisen Electric
Corporation (OTCBB: CIEC) (the "Company"), a leading lead-acid motive
battery producer for the electric bicycle market in the People's Republic of
China, announced today it has signed a series of agreements with local
government officials, which provide relocation funding from the government for
moving all current production within a year at its oldest plant (Plant A) at
Jingyi Road in Changxing County to its nearby (1.5 km) Plant B where the Company
also has been manufacturing lead-acid batteries since
2008. Additional funds from the local government for compensation of
the relocation of Plant A also are being provided for the construction of a new
plant, Plant C, roughly 3 km away that will be approximately 50% larger than
Plant A. The Company reported that the combined operations in Plant B
will have the capacity to meet current as well as anticipated future growth
needs stemming from strong market demand for its lead-acid motive
batteries. Most significantly, Plant C, which is expected to be
completed within two years, will house a new business thrust for the Company - -
the production and sale of lithium ion batteries, primarily for powering motors
in a variety of vehicles. It is anticipated that the cost of Plant C
will be paid for by proceeds of the government compensation it is receiving for
the removal of its investment from the Plant A as well as direct government
stipends for funds advanced by the Company.
Paving
The Way For New Growth Opportunity
Mr. Xu
Kecheng, Chairman and CEO, stated, “We are extremely grateful to the local and
regional authorities for helping us consolidate in one convenient location our
lead-acid motive battery business, which has seen very rapid growth in recent
years as a major supplier to China’s bicycle manufacturers and
consumers. Perhaps even more importantly, the way also is now paved
for our Company to apply its expertise to the launch of lithium ion battery
production, which we see as an area with new growth potential.”
Compensation
Highlights
Briefly
describing the August 20, 2010 compensation arrangement with local authorities,
the Company said the Administrative Committee of Changxing Economic Development
Zone Zhejiang (the “Committee”) will compensate Chisen a total of RMB
117,202,100, or US$ 14,120,735 for obtaining the land-use rights to and agreeing
to relocate its manufacturing to a new location. This total also
includes payment for an anticipated two-month suspension of operations at the
old facility, prior to the move to the Company’s newer plant, where the Company
believes it has sufficient capacity to expand production to meet the continuing
increase in demand for its current product line.
The
Company said a full description of the transaction is available in the 8-K filed
today with the U.S. Securities and Exchange Commission.
Lithium
Ion Growth Opportunity
The
Company said the new factory will be specifically designed for the production of
lithium ion batteries, which are becoming increasingly popular in motor
vehicles, consumer electronics, and various industrial
applications.
Mr. Xu
commented, “We believe that our expertise in battery development and production
will enable us to rapidly develop and produce superior lithium ion batteries for
a variety of products, including automobile motors. China has
announced that over the next decade it aims to become the world leader in
battery-powered electric vehicles and, for the most part, we believe that
lithium-ion batteries, with their high energy density and energy to weight
ratios will be the principal power source for the autos, trucks and other
electric vehicles being built. We intend to be a major participant in
the growth we foresee in this area and envision the development of an important
new revenue stream for the Company.”
Other
The
Company said the agreement with the Committee included other benefits in return
for strict adherence to various features, including construction consistent with
land use provisions, the establishment of energy saving and pollution reducing
features, and completion of the construction within two years from the signing
of the agreement. Such benefits would include assistance in obtaining
necessary certifications and approvals as well as reduced taxes. A
principal anticipated contribution of the new plant to the local economy will be
the additional jobs created and the growth in jobs anticipated as the new
business develops.
“We are
proud to be a contributor to the growth and health of the community in which we
operate,” said Mr. Xu Kecheng, “and will continually keep in mind the balance
that must exist in serving the needs of our customers and the needs of our
community.”
Description
of Chisen Electric Corporation
Chisen
Electric Corporation, incorporated in Nevada, USA, and headquartered in Zhejiang
Province, the People's Republic of China, is a leading lead-acid motive battery
producer for China's personal transportation device market. The Company's
battery products are sold under its own brand names and are predominantly used
in electric bicycles. Among all types of batteries for electric bicycles, the
lead-acid motive battery is the preferred choice for electric bicycle
manufacturers in China because of its cost efficiency. In the fiscal year ended
March 31, 2010, the Company manufactured more than 14.48 million batteries and
achieved a market share of approximately 11.84% for its Lead Acid Motive
Batteries for electric bicycles in China.
"Safe Harbor" Statement Under the
Private Securities Litigation Reform Act of 1995:
This news
release contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements are
based on current expectations or beliefs, including, statements concerning the
Company's operations, financial performance and condition. For this purpose,
statements that are not statements of historical fact may be deemed to be
forward-looking statements. The Company cautions that these statements by their
nature involve risks and uncertainties, and actual results my differ materially
depending on a variety important factors, including, but not limited to, the
impact of competitive conditions and effectiveness of marketing; changes in laws
and regulations; fluctuations in costs of production, financing and other
factors as discussed in the Company's reports filed with the Securities and
Exchange Commission from time to time, In addition, the Company disclaims any
obligation to update any forward-looking statement to reflect events or
circumstances after the date hereof. No securities regulatory authority has
either approved or disapproved the contents of this new release. The Company
filings with the US Securities and Exchange Commission, including the annual
report for the fiscal year ended March 31, 2009 on Form 10-K, can be viewed on
EDGAR Online or at www.sec.gov.
Contacts:
Mr. Liu
Chuanjie
Chief
Financial Officer
liuchuanjie@chisenpower.com
Ken
Donenfeld
DGI
Investor Relations
kdonenfeld@dgiir.com,
donfgroup@aol.com
Ph: (212)
425-5700
Fax:
(646) 381-9727