Attached files
| file | filename |
|---|---|
| EX-10.1 - Chisen Electric Corp | v196502_ex10-1.htm |
| EX-99.1 - Chisen Electric Corp | v196502_ex99-1.htm |
| EX-10.2 - Chisen Electric Corp | v196502_ex10-2.htm |
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date of
Report (Date of the earliest event reported): September 6, 2010
CHISEN ELECTRIC
CORPORATION
(Exact
name of registrant as specified in charter)
|
Nevada
|
333-128532
|
20-2190950
|
|
(State
or other jurisdiction of incorporation)
|
(Commission
File Number)
|
(IRS
Employer Identification No.)
|
|
Jingyi
Road, Changxing Economic Development
Zone,
Changxing, Zhejiang Province,
The People’s Republic of
China
|
N/A
|
|
(Address
of principal executive offices)
|
(Zip
code)
|
Registrant's
telephone number, including area code: (86)
572-6267666
Not
Applicable
(Former
name or former address, if changed since last report)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
|
o
|
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|
|
o
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
o
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
|
|
o
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
|
ITEM
1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On
September 6, 2010, Chisen Electric Jiangsu Company Limited (“CEJC”), a subsidiary
of Changxing Chisen Electric Company., Ltd. (“CCEC”), the chief
operating subsidiary of Chisen Electric Corporation, a Nevada corporation (the
“Registrant”)
entered into a Project Investment Agreement and a Supplemental Agreement to the
Project Investment Agreement (together, the “Agreement”) with the
Jiangsu Xuyi Economic Development Zone Administrative Committee (the “Committee”). Pursuant
to the Agreement, CEJC shall invest, in the aggregate, approximately RMB1.2
billion (approximately $177 million) in three stages to establish the Chisen
Circular Economy Industry Park for the manufacturing of lead acid and
lithium-ion batteries and other related products in the Jiangsu Xuyi Economic
Development Zone. In the first stage, CEJC shall invest approximately
RMB422 million (approximately $62 million), including approximately RMB150
million (approximately $22 million) in fixed assets. CEJC shall
commence construction after obtaining the approval certificate of construction
plan and within 20 days from the date of the Agreement. All construction shall
be completed on or before December 31, 2011.
In
exchange for CEJC’s investment, CEJC shall enjoy the lowest control standard for
the price of land in Jiangsu Province (RMB19,000 (approximately $2,200) per
hectare), and the Committee shall assist CEJC in implementing the project,
including but not limited to, the acquisition of land use rights, the obtainment
of certificates for production plants and buildings, and the
provision of infrastructure in the transferred land such as water supply,
drainage, gas, electricity, cable TV, roads and telecommunications.
The
Committee agreed to grant preferential tax policies on Value Add Tax and
Enterprise Income Tax to CEJC. However these policies will be forfeited if taxes
levied from the project are less than RMB30,000 (approximately $4,400) per
hectare on average (the Company will initially acquire a total area equal to
277.48 hectares in the first stage and an aggregate of 1,000 hectares for all
three stages). The preferred policies include, but are not limited
to, a 50% refund on value-added taxes for the first 5 years followed by a 25%
refund in the following 5 years, and an exemption of the local portion of
enterprise income tax for the first 6 years followed by a 50% reduction in the
following 4 years. The policies shall commence upon the completion of
the construction and the commencement of production.
In the
event that CEJC fails to commence construction and is delayed more than 7 days,
the Committee has the right to terminate the Agreement and reclaim the
land. In the event that CEJC fails to follow the construction
schedule, the Committee has the right to reclaim the land. If the
land remains unused for more than one year, the Committee has the right to levy
a penalty equal to 20% of the land transfer amount per hectare. If
the land remains unused for more than two years, then the Committee has right to
terminate the Agreement and reclaim the land.
The
foregoing description of the Agreement does not purport to be completed and is
qualified in its entirety by reference to such documents, which are attached as
Exhibits 10.1 and 10.2 to this Current Report on Form 8-K and incorporated
herein by reference.
ITEM
8.01 OTHER EVENTS.
On August
23, 2010, CCEC, the chief operating subsidiary of the Registrant, formed a
subsidiary in the PRC called Chisen Electric Jiangsu Company Limited in JiangSu
Province, China. CEJC’s registered capital is RMB150,000,000, of
which CCEC holds 98% (RMB147,000,000) and the Registrant’s CEO Mr. Xu Kecheng
holds 2% (RMB 3,000,000). CEJC intends to produce lead acid
batteries, battery plates, battery assembling systems, lithium-ion batteries,
battery chargers, power management systems and related parts for manufacturing
and sales in the Jiangsu Xuyi Economic Development Zone in Jiangsu Province, the
PRC.
On
September 1, 2010, the Company issued a press release (the “Press Release”)
announcing that it has launched a new company website in English at www.chisenelectric.com. A
copy of the Press Release is attached hereto as Exhibit 99.1 and is incorporated
herein in its entirety by reference to such exhibit.
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ITEM
9.01 FINANCIAL STATEMENTS AND EXHIBITS
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(a)
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Not
applicable.
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(b)
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Not
applicable.
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(c)
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Not
applicable.
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(d)
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Exhibits:
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EXHIBIT
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DESCRIPTION
|
LOCATION
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||
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Exhibit
10.1
|
Xuyi
Economic Development Zone Project Investment Agreement, dated September 6,
2010, by and between Chisen Electric Jiangsu Company Limited and Jiangsu
Xuyi Economic Development Zone Administrative Committee
|
Provided
herewith
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||
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Exhibit
10.2
|
Xuyi
Economic Development Zone Project Investment Agreement Supplemental
Agreement, dated September 6, 2010, by and between Chisen Electric Jiangsu
Company Limited and Jiangsu Xuyi Economic Development Zone Administrative
Committee
|
Provided
herewith
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||
|
Exhibit
99.1
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Press
Release
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Provided
herewith
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, as amended, the
Company has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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Date:
September 13, 2010
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CHISEN
ELECTRIC CORPORATION
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By:
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/s/ Xu
Kecheng
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Name:
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Xu
Kecheng
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Its:
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Chief
Executive Officer
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