SinoHub Receives New Bank Line for More than $6 Million from Shenzhen Branch of Hangzhou Bank
SinoHub, Inc. (OTC Bulletin Board: SIHI), which conducts substantially all of
its operations in
subsidiary SinoHub Electronics Shenzhen Limited, today announced that its
SinoHub SCM Shenzhen Limited unit has closed a new
the
The full amount of the line, if available, may be used to obtain Letters
of Credit (LCs) and up to
cash line. There is a 20% cash deposit requirement on LCs. Under the terms of
the agreement, Hangzhou Bank will issue LCs to SinoHub SCM Shenzhen for terms
up to 120 days. Interest on the cash line will be at least 1.1 times the base
deposit interest rate as announced by the People’s Bank of
currently 4.12%. The bank line expires on
The company said it will use the funds for continued expansion of its
electronic component procurement-fulfillment and component sales business
lines in
electronic component supply chain management (SCM) services in
(import/export, warehousing, logistics and other related services), SinoHub is
leveraging the relationships it has with electronic component suppliers,
design houses and manufacturers that use its SCM services to gain ground in
the procurement-fulfillment and component sales businesses.
“We are experiencing increasing demand in our procurement-fulfillment and
component sales business lines so we expect to be able to put these new funds
to work in short order,” said
SinoHub. “We are pleased that Hangzhou Bank has decided to back SinoHub, and
we are honored to be the first major loan recipient from their new
branch.”
“SinoHub’s business model and the strong platform they have built to
support it are unique in
branch of the Hangzhou Bank. “We are delighted to add a company with such
great potential to our growing portfolio of commercial customers.”
“This commitment from Hangzhou Bank is a testament to the solid financial
condition of our company, and shows great confidence in our ability to
generate strong results, even in a year which is proving difficult for many
other companies,” said De Hai Li, SinoHub’s CFO. “We are pleased to be working
with
relationship.”
About SinoHub
SinoHub, Inc., founded in 2000 by veteran entrepreneur
electronic component industry veteran Lei Xia to facilitate the electronics
revolution in
with transparent information access for participants in the electronic
components supply chain in
Web site at http://www.sinohub.com .
Cautionary Statement Regarding Forward-looking Information
Some of the statements contained in this press release that are not
historical facts constitute forward-looking statements under the federal
securities laws. You can identify forward-looking statements by the use of the
words “may,” “will,” “should,” “could,” “expects,” “plans,” “anticipates,”
“believes,” “estimates,” “predicts,” “intends,” “potential,” “proposed,” or
“continue” or the negative of those terms. These statements involve risks
known to us, significant uncertainties, and other factors, many of which we
cannot predict with accuracy and some of which we might not even anticipate,
which may cause our actual results, levels of activity, performance, or
achievements to be materially different from any future results, levels of
activity, performance, or achievements expressed or implied by those
forward-looking statements. Readers are cautioned not to place undue reliance
on these forward-looking statements.
Among the factors about which we have made assumptions are:
1. SinoHub will be able to put these new funds to work in short order;
2. The platform SinoHub has built to support its business model is strong;
3. SinoHub's business model and the platform SinoHub has built to support
it are unique in China;
4. SinoHub's financial condition is solid; and
5. SinoHub can generate solid results even in a year which is proving
difficult for many other companies.
Except as required by law, we assume no obligation to update any forward-
looking statements publicly, or to update the reasons actual results could
differ materially from those anticipated in any forward-looking statements,
even if new information becomes available in the future. For further
information on factors which could impact us and the statements contained
herein, see the “Risk Factors” included in Item 1A of our Annual Report on
Form 10-K. We assume no obligation to update and supplement forward-looking
statements that become untrue because of subsequent events, new information or
otherwise.
For more information, please contact:
SinoHub, Inc.:
Falicia Cheng
Tel: +86-755-2661-1080
Email: falicia@sinohub.com
In the U.S.:
PondelWilkinson Inc.
Laurie Berman/Angie Yang
Tel: +1-310-279-5980
Email: investor@pondel.com
SOURCE SinoHub, Inc.