Family corporation is the biggest risk for Eton to IPO
Since its IPO prospectus published in Eton (according to Dayton, Guangdong Electronic Technology Co., Ltd.), was questioned from all sides, but the China Business News reporter that the investors a high degree of family oriented is facing Eton Electronics the greatest risk.
"Prior to the issue, according to Dayton to invest 98% of the shares of the Company held the position of absolute control. According to Dayton Investment Limited, a wholly-owned subsidiary of a high tree Li Yongqiang, Li Yongsheng and Tommy Lee brothers indirectly through the tall trees Limited holds 98% of the shares of the Company. "This is the text of the Eton electronic prospectus. Even after the successful IPO, Li Yongqiang, Li Yongsheng and Tommy Lee will continue to hold 75.34% of the shares according to the Dayton Electronic position of absolute control.
The pros and cons of well-known family business, family business does have a high efficiency, the advantage of flexible response in the early days; enterprises bigger, this family structure is often a lack of effective oversight, arbitrary large, could easily lead to mistakes in decision making. Especially after the listing, this family business is difficult to protect the interests of minority shareholders, including the company's prospectus also said: "If the actual controller using their dominant, the appointment and removal of the company's business through the exercise of voting rights, etc. decision-making and control, will be likely to prejudice the interests of minority shareholders of the Company and the Company. "
In fact, the the Eton family business decision arbitrariness risk is emerging. Such as the land issue, according to Dayton IPO prospectus, the company has four land has not yet fully developed, the four land "Fu Guo Yong (2008) No. 040117, in the House State (2008) 040 118 No., Fu Guo Yong (2008) 040 119 number and Fu Guo Yong (2008) No. 040120.
According to the provisions of section 26 of the People's Republic of China on Urban Real Estate Administration Law ":" Transfer to obtain land use rights for real estate development, land use must be agreed upon in accordance with the land use rights grant contract, to commence development period of land development over the grant contract agreed to commence development did not start to develop at least one year, you can charge the equivalent of less than 20% of the land use right grant ?????; development has not started at least two years, free land use rights. "
Eton electronic prospectus, "the four plots two years has not yet commenced, State gratis risk." At present, although has not been recovered, but do not rule out the risk of State gratis. According to the Dayton Electronic beginning to get to, certainly not planning to win not commenced within two years, and in fact not fully commenced after two years, indicating Eton larger arbitrary decision-making, the lack of rigorous argument, this is a family business minds fever forehead decision typical performance of a beat.
Secondly, the drawbacks of tax evasion behavior has even according to Dayton exposed. January 2006 to January 2008, according to Dayton bonded imported double-sided CCL 163,885.49 kg 70,779.12 kg, copper foil, prepreg fiberglass resin piece of 286,147.64 kg 30,795,872.8 yuan worth of products PCB for sale in the domestic leakage payment of the tax 5,752,957.32 yuan. During this period, according to Dayton electrons also domestic purchase of double-sided CCL 631,126.98 kg and bonded imported double-sided CCL 631,126.98 kilograms be exchanged for manual bonded export 33,120,430.02 yuan, the amount involved in evasion of tax of 5,901,141.7 yuan. Eton above behavior by the Gongbei Customs penalties of 10 million yuan.
Eton above behavior has not only more profit for the company, but by punishment, affect the company's image, which is the performance of the drawbacks of another family business family management. Imagine, if this is not a family business, major decisions require the vote of the Board of Directors of the Company of Fiscal Evasion with respect to Taxes on Income models of behavior are not the approval of the shareholders gained nothing in there would be such a loss to meters practice.
Of particular note is the Lee family business also registered outside the range of the company. It is reported that Lee's three brothers are Canadian citizenship. In 1998, the Lee brothers set up in Samoa according to Benton investment; Eton limited liability company established in 2000, according to Dayton investment for the shareholders of the limited liability company in accordance with Dayton, and engaged in PCB production business in the Mainland; 2001 Lee The family became the tall trees of the BVI company investments; 2002 high tree investment acquisition Eton investment after the events of this acquisition, all included in the bag of Lee's three brothers, according to the Dayton Department of the company; 2007, Lee's three brothers began to goal of turning the territory of A-share market, in order to complete the plan successfully listed in the A-share market, according to the Dayton limited into Eton shares acquired in accordance with Dayton multilayer Eton Electronics, according to Dayton and associated companies are Yao management and so on.
Special needs, the Lee family since the last century began investing activities in the Hong Kong listed company Termbray Industries International (Holdings) Co., Ltd. holds more than 60% of the equity. Headed by a name yet manage (Trust) Co., Ltd. was established in the British Virgin Islands in 2006, the business of the company is operating the the Lee family court Trust Fund, the company also owns Termbray international the Xindi property, Sheng Group the other 9 shijiazi, Sun Company. In addition, the clan's parents, Li Li and Liang Liping also set up a number of companies. In the Lee family investment registered a series of companies, Yong Di limited development Ken Shaoguan Tenda no actual operating Li Liang limited, Prime Time Group, MJS limited, welcomes domain is limited, and the domain of international as well as Tenda innovation The company as a shell company. And most of the companies are registered in offshore.
In recent years, offshore companies inside and outside the tax system the phenomenon of differences of Fiscal Evasion with respect to Taxes on Income shall have occurred, the more serious is the "turtle" back listed companies, overseas background it is difficult to verify the identification, it is easy to associate Insider trading, investors, more unknown factors, are at greater risk.
As famous china pcb manufacturer, Eton has imported many advanced equipments in its china pcb manufacturer, which is famous pcb manufacturer in China
