By Sep. 25, Hualian Sunshine continued to get three loans totaled 60 million yuan from banks, although the company has been involved in financial crisis. The amounts of two three-month period loans are 20.84 million yuan and 20.95 million yuan. The six-month period loans are 3 million U.S. dollars. The lending of these banks after Hualian Sunshine’s crisis seems unreasonable.
As of Oct. 8, several banks in Fujian, Shenzhen, Zhejiang and Beijing provided Hualian Sunshine about 70 loans, totaling up to the amount of 4.456 billion yuan, of which 13 loans are in U.S. dollar, involving an amount of 75.99 million U.S. dollars and the total RMB loans are 57, involving an amount of 3.936 billion yuan. Most of the loans are 2-years short-term, and only 2 loans are 5-year long-term with total amount of 1.575 billion yuan, the due date is of April 2011.
In addition to bank loans, Hualian Sunshine also issued a large number of letters of credit, for a total of 4.04 billion yuan. September 2008 issuing the number 14. As of Oct. 8, 114 bank notes has not yet been expired, involving an amount of 1.15 billion yuan.
Hualian Holding (currently the second largest shareholder) has revealed that at the end of 2007, Hualian Sunshine’s assets-liability ratio was as high as 90%. Due to rising prices of raw materials and weak downstream demand, Hualian Sunshine last year lost 960 million yuan and continued to make loss in the first half of this year.
As of October 8, Hualian Sunshine’s bank loans is up to the amount of 4.456 billion yuan, of which the amount of USD is 75.99 million U.S. dollars and the amount of RMB is 3.936 billion yuan.
Source: ccfgroup