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Established Timber Manufacturing Business In Huzhou For Sale

Huzhou, Zhejiang, China
Asking Price:
$1,500,000 (USD) Furniture / Fixtures and Inventory / Stock included
Sales Revenue:
$1M - $5M (USD)
Cash Flow:
$500K - $2.5M (USD)

This business has been operating for over twelve years. It is part of a group of three companies, the others being in Australia and Hong Kong. The three companies operate as a group, with the Australian company being the oldest, having been established in 1997. The owner is considering retirement within the next few years, but is prepared to manage through a considerable transition period. The main business is a wholly owned foreign enterprise (WFOE) established eleven years in China, properly registered and profitable with no debts, loans or other encumbrances. Annual sales have averaged around USD2.0m and profit is around USD250k per year. Would consider selling the group as a package. All three companies are debt free. Clients in Japan, Australia and NZ. Currently re-orienting the company to more domestic sales because there is enormous opportunity in that sector. We produce flooring, decking and furniture and have been located in the same factory from the outset. This factory can be expanded.

Stock, equipment and cash to the value of approximately USD2m. Realistic about price. The advantage of this business is that it is well established. We have spent a lot of money on branding and have a terrific reputation as a high-end producer. The hard work of set up and reputation building has been done and there are excellent prospects for growth, particularly in the domestic market. Within one hundred and fifty kilometers of the factory are over 80 million urban consumers and this is the richest part of China. There is no need for major re-investment and income stream is solid with an established and diverse client base. Revenue this year has taken a hit, but we are debt free and will turn a small profit in 2020. We are currently looking at opportunities in a specialized higher value-added market, which we are very positive about. Trading is also highly prospective using this company as a base.

Work force of about 25 including office staff of three. Very stable with good and dedicated managers. Morale and company culture is excellent.

For more information, please contact us by using the form below.

Property Information

Real Estate:

Lease

Lease Terms:

2 years left on lease. Can be extended.

Leasehold Rent:

$120,000 (USD) per annum

Lease Rent:
$2 (USD) per sq ft per annum
Location:

Huzhou City, Zhejiang Province. 1.5 hours from Hongqiao Airport, Shanghai

Premises Details:

Total leased area of about 6,600m2 of factory and warehouse area.

Planning Consent:

Company is properly constituted under Chinese law and the factory has all of the correct certifications and meets all of the required environmental, health and safety and fire regulations.

Business Operation

Expansion Potential:

Two further floors available totalling another 3,000m2. Would be suited to furniture or parquetry production.

Competition / Market:

The city in which we are located is a wood production cluster. The advantage of this is that experienced labour, machine maintenance and auxiliary services are readily available. Of course, it means intense competition too, but we are in a niche market catering for high-end customers. We aim to generate maximum profits from modest turnover, which insulates us against market shocks to some extent. Covid 19 is another story, of course, but we expect to weather it.

Reasons for selling:

I am 65 years old and my wife is 61. We are not in any hurry to move on, but we have to be realistic about how long we can continue with the energy levels required to keep developing the business. Our kids have their own careers and our workers are not in a position to do an MBO.

Trading hours:

7:30 am to 5:00 pm

Employees:
25
Years established:
12 years

Other Information

Support & training:

Willing to remain on modest salary for about two years by negotiation.

Owner financing:
Owner financing is available. Please contact the seller for more information.
Financing available:

We would accept a partial payment with the balance over a number of years, subject to conditions.

Furniture / Fixtures value:
$500,000 (USD) - included in the asking price
Inventory / Stock value:
$1,500,000 (USD) - included in the asking price
Website:
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Related Documents:
Relocatable:
This business can be relocated.

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