APT to Close Shenzhen Operations in China
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Uni Core Holdings Corp. (UCHC), a Hong Kong-based holding company, reports that it has filed for bankruptcy protection for its Shenzhen Factory of the APT Paper Group (APT), one of UCHC's subsidiaries. The Shenzhen facility was negatively impacted by the downturn of the Chinese and worldwide economy coupled with a shortage of required cash flow to meet current production needs. APT Shenzhen has been struggling for a long time and management has decided to close it down.
UCHC's Board says it believes this move will allow the company to devote the expected cash savings to bolster the healthier APT Group's Qingdao and Suzhou factories, which remain fully operational. UCHC management's goal is to turn the remaining APT operations profitable within six months.
UCHC plans to soon initiate a Valuation Report and an Audit of Prosperous Agriculture Co., its farm business, to consolidate their financial results with the Group. UCHC recently appointed a New York-based investment advisor to aid in the business restructuring and an investment banker to potentially raise capital.
APT Paper Group, a wholly owned subsidiary of UCHC, headquartered in Shenzhen, Guangdong, China, was founded in November 1993. APT's products include honeycomb paper pallets, honeycomb paper panels, honeycomb paper cartons, honeycomb paper coffins, honeycomb paper cushions, paper slip-sheets, paper corner protectors, and corrugated paper products. APT holds patents throughout the world on many of its products. The company's customers include Walmart, Costco, Sam's Club, Sony, Nokia, DHL, Haier, and Hisense, among others.
Prosperous Agriculture, 51% of which is owned by UCHC, is headquartered in Xi'an, Shaanxi Province, China. It manufactures and distributes agricultural products.
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