heng ya electric receives us$50 million syndicated loan; ta ya group’s operating performance this year is much anticipated-凯发备用地址
heng ya electric, ta ya group’s wholly-owned subsidiary, has been granted a syndicated loan of us$50 million from a consortium of taiwanese banks. the signing took place this morning (june 8, 2017) in ta ya guanmiao headquarters (tainan, taiwan), co-chaired by ta ya group’s chairman, shen shang-hung, and taishin international bank’s general manager, zhong long-yu. whether in taiwan or china, the ta ya group has seen much continuous operating improvements and is anticipated to carry on delivering favorable performance this year.
the us$50 million joint loan is coordinated and co-organized by taishin international bank and mega international commercial bank, with active participation from five other banks: shanghai commercial & savings bank, chang hwa bank, hua nan bank, cathay united bank and shin kong bank.
chairman, shen shang-hung states: “since its inception 62 years ago, the ta ya group has had long-standing relationships with various banks in taiwan. the syndicated loan from four years ago is now being renewed today. four years on, the management in china has seen much challenges, whether it be in finance, foreign exchange or horizontal competition. i would like to thank the bank consortium for all the support in helping heng ya through the economic downturn.” general manager, zhong long-yu, says: “we are glad to see heng ya has come through its rough patch. we also hope to carry on working with the ta ya group in the future, should the opportunities arise.”
shen shang-hui, general manager of heng ya electric, states: “this is our fourth syndicated loan, and we would like to extend our gratitude to the bank consortium for the ongoing support. the changan plant is positioned as the production base for the business group’s extra fine wires, whereas the quanshan plant is positioned as the production base for the copper-clad aluminum wires and aluminum wires. this year both plants have seen a significant rise in all operating figures compared with last year, not only in terms of sales volume but also the gross margin that has grown due to product structure modification and processing cost increases. in addition, the defect rate is also distinctly improved. currently, the local government is imposing tougher inspections on environmental protection and the deleveraging policy is increasing financial costs, as places pronounced pressure on those competitors not up to par and is expected to benefit heng ya’s further expansion in business. adhering to ta ya group’s management ideals of the pristine homeland foundation, heng ya will continue with its environmental friendly measures and maintain its competitive advantages.
earlier today, in the same place, the ta ya group held its 2017 annual meeting of shareholders, led by chairman, shen shang-hung, and attended by the entire board of directors and supervisors, as well as general managers for all its business groups. in the meeting, the year 2016 business report and financial statements and the year 2016 appropriation of profit and loss were passed, and no dividends would be issued for the year 2017.
regarding shareholders’ concern over the operational performance in mainland china, heng ya’s general manager, shen shang-hui, expresses: “due to the local controls on foreign exchange, risks have been difficult to avoid effectively. but fortunately, with much operational improvement, we are gradually receiving loan support from banks in china, which will further lower the exchange risks in renminbi.
ta ya reported consolidated sales of nt$14.268 billion in 2016, albeit a decrease of nt$921 million compared with that in 2015. yet with a net income of nt$28.136 million, 0.20% rate of return and nt$0.05 earnings per share (eps), ta ya is indicated to have risen above the company deficit in 2016 and is forecast to grow significantly in the overall revenues and profits for the entire ta ya group.