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Hu An Cable delays expansion plans
MAINBOARD-LISTED Hu An Cable Holdings, a China-based electrical wires and cables manufacturer, has announced a change in use of its proceeds from the Taiwan Depository Receipts issue in October 2010.
Due to the economic slowdown, tightened credit controls and business risks in China's current market environment, Hu An has decided to delay its expansion plans.
Along with its working capital requirements, Hu An has re-allocated the previously untilised proceeds of NTW217.9 million (S$9.12 million), which was intended for the acquisition of new land and production machinery, and the construction of new workshops and production lines, to be used as working capital.
Hu An had previously disclosed on Nov 13, 2014 that it had utilised approximately NTW598.1 million of the proceeds from the Taiwan Depository Receipts issue.
In the same statement in November 2014, Hu An had revealed that in the short run, the traditional cables and wires industry has been impacted by China's weaker economic performance.
On Monday, before news of the announcement, Hu An's counter fell 3.57 per cent, or 0.2 Singapore cents, closing at S$0.054.