Innuovo: Announcement on output suspension of a wholly-owned subsidiary's share company
2018-05-08 18:17:22 [Print]
Innuovo Technology Co., Ltd. announced on May 7 that following the decision from the board meeting, the company decided to suspend production for Ganzhou Tongcheng Rare Earch New Material Co., Ltd., a share company of its wholly-owned subsidiary Zhejiang Innuovo Magnetics Co., Ltd. due to losses for consecutive years.
Tongcheng Rare Earth was founded in February 2010 with a registered capital of RMB185 million. With business focus on processing of rare earth NdFeB scraps, Dongyang Tongcheng Magnets Co., Ltd. holds 54.05% of its stake while Innuovo Magnetics holds 45.95% of its stake. As of March 31, 2018, the total value of the rare earth assets was RMB273.0339 million and the total liabilities was RMB199.1572 million. The operating income from Jan to Mar in 2018 was zero and the net profit was RMB-1.822 million (unaudited).
Due to the adjustment of related national industrial policies, the market competition of the rare earth waste separation industry is fierce in China and the overall capacity is in surplus, which have caused a seriously insufficient operating rate of Tongcheng Rare Earth, resulting in losses for consecutive years and difficulties in operation. Thus, Tongcheng Rare Earth decided to commence the board meeting and decided to suspend production.
Tongcheng Rare Earth was founded in February 2010 with a registered capital of RMB185 million. With business focus on processing of rare earth NdFeB scraps, Dongyang Tongcheng Magnets Co., Ltd. holds 54.05% of its stake while Innuovo Magnetics holds 45.95% of its stake. As of March 31, 2018, the total value of the rare earth assets was RMB273.0339 million and the total liabilities was RMB199.1572 million. The operating income from Jan to Mar in 2018 was zero and the net profit was RMB-1.822 million (unaudited).
Due to the adjustment of related national industrial policies, the market competition of the rare earth waste separation industry is fierce in China and the overall capacity is in surplus, which have caused a seriously insufficient operating rate of Tongcheng Rare Earth, resulting in losses for consecutive years and difficulties in operation. Thus, Tongcheng Rare Earth decided to commence the board meeting and decided to suspend production.
