This is clearly a left field shock - and as difficult for me to get my head around as it is for everyone else.
The Chinese JV remains the main play for SBN. It is clearly under very serious threat - but may not be dead.
It may be a gambit on the Chinese' part (along the lines argued by Harvett). But only maybe.
My take at the moment is that the JV has been hit by a double whammy.
First there was the quality control issue in December (a hanging offence) that was apparently resolved (as reported in the January update). We know that happened - and clearly would have introduced some doubts into the minds of our Chinese partners.
So what has happened since? The 5,000 units were assembled and delivered while SBN was, at the same time, sending out letters inviting partnerships. (We got some feedback on some of this from Paul of ED via Blackhawk1).
I gather similar letters were sent to all our distributors and partners - including SiYi. I suspect that there was something in the way this was handled that seriously offended the Chinese. Hence, their sudden withdrawal.
I'm not sure about this - but it is a possible scenario. We all know how appalling the SBN board's communication skills are (I have never denied that) and how they often treat shareholders with contempt.
Perhaps the Chinese have experienced something similar. But recently - since that positive meeting late last year when they signed the memorandum. That's why I think it has something to do with the seeking of business partners.
If that is the case, we must have resignations from those responsible - perhaps the whole board.
That perhaps will give us the best chance of restoring the relationship with SiYi.
Of couse, my take could be completely wrong. SiYi may be acting on something completely different.
SBN Price at posting:
0.2¢ Sentiment: Hold Disclosure: Held
