MIRA INFORM REPORT

 

 

Report Date :

09.05.2012

 

IDENTIFICATION DETAILS

 

Name :

REWARD WOOL INDUSTRY CORPORATION 

 

 

Registered Office :

12th Fl., No.310, Sec.4, Chung Hsiao E. Rd., Taipei

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

23.07.1964

 

 

Com. Reg. No.:

11311608

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Sales of Wool Tops, Superwash Tops, Carbonized Wool, and Wool Grease

 

 

No. of Employees :

About 110 Employees

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Taiwan

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


Contact Points

 

Company Name:

Reward Wool Industry Corporation

Supplied Name:

Reward Wool Industry Corporation

Trading Address:

12th Floor, Kuangfu Building 310, Sec 4, Chung Hsiao Fast Road, Taipei 106, Taiwan

Supplied Address:

12th Floor Kuang Fu Building 310 Sec-4 Chung Hsiao East Taipei 106

Telephone Number:

+886-2-27811161

Fax Number:

+886-2-27114312

E-mail:

reward@reward.com.tw

 

 

Credit Summary

 

Credit Opinion:

Business connections are permissible.

 

 

Company Identification Details

 

Registered Name:

Reward Wool Industry Corporation

Registered Address:

12th Fl., No.310, Sec.4, Chung Hsiao E. Rd., Taipei, Taiwan

Date of Foundation:

1964-7-23

Registration Number:

11311608

Registry:

Department of Commerce, Ministry of Economic Affairs, R.O.C.

Registered Capital:

NTD 1,793,000,000 (USD 61,105,100)

(As of 2012.5, 1 NTD = 0.03408 USD)

Paid-up Capital:

NTD 1,793,000,000 (USD 61,105,100)

Legal Representatives:

Rouer Ying

Legal Form:

Joint Stock Company

Principal Activities:

Sales of Wool Tops, Superwash Tops, Carbonized Wool, and Wool Grease

Staff:

About 110 Employees

Listed at Stock Exchange:

Yes (Public, TPE:1423) 

Date of Last Annual Return:

2010-4-27

 

 

History

 

Year

Events

1988

Production capacity of wool top and carbonized wool was greatly expanded.

1992

Jointly invested in Reward (Ningbo) Wool Industry Co., Ltd. to develop mainland China market

1995

Equipped Kroy/CMT processing system for making value-added superwash and lustre soft tops.

 

Subject was incorporated on 1964-7-23 with registered number 11311608 as Joint Stock Company in Taiwan.

Subject was listed on Taiwan Stock Exchange on 1979-04-02.

 

Awards

Year

Awards

2008

Blue chip importer and exporter

2009

Blue chip importer and exporter

2010

Blue chip importer and exporter

 

Standard of Blue chip importer and exporter

Unit: USD

Year

Amount

2008

19,000,000

2009

15,000,000

2010

20,000,000

 


Shareholders

 

Name

Subscription Shares

Zhong Cheng Investment Co. (translated)

25,971,338       

 

Xinhe Xingyang Co. (translated)

 

3,104,203

 

Yong Fu Investment Co. (translated)

416,039

Li Tai Investment Co. (translated)

9,482,794

Notes:

The information above is that of subject’s major shareholders.

 

 

Subsidiaries & Branches

 

l         Subject has two factories in Liu-Tu and Hsin-Wu, Taiwan.

Plant:

Site Area:  

Liu-Tu 

29,639m2

Hsin-Wu

53,309 m2    

 

And subject has a subsidiary located in Ningbo, China, but subject declined to disclose more details about it.

 

 

Personnel Information

 

Core Management

Directors

1

Name

Rouer Ying

Position

Board Chairman

2

Name

Chaoming Chen

Position

Director

3

Name

Minghao Ying

Position

Director

4

Name

Meilan Yu

Position

Director

5

Name

Xiwan Xu

Position

Director

6

Name

Lianghong Wu

Position

Director

7

Name

Guanzhi Wang

Position

Director

8

Name

Musheng Cao

Position

Supervisor

9

Name

Xiangyi Cao

Position

Supervisor

 

Personnel Structure

Total Employees

About 110 Employees

 

 

Operation Information

 

Offices & Factories

 

Headquarters

Add

12th Fl., No.310, Sec.4, Chung Hsiao E. Rd., Taipei, Taiwan

 

Production Information

l         Subject is a manufacturer of wool tops, superwash tops, carbonized wool, and wool grease    with the production activities

Purchase Information

l         The registered activities of subject:

Business Code

Details

1

Manufacturing and sales of wool top(including carbonized wool)

2

Processing of other wool’s shrinkproof and dyeing and finishing

3

Import and export related mentioned business

4

Warehouse of related raw materials

l         The raw material for production is mostly purchased from abroad.

Sales Information

l         The subject is mainly engaged in manufacturing and trading of Wool Tops, Superwash Tops, Carbonized Wool, and Wool Grease.

l         Subject introduced that the materials are directly purchased from Australia

l         The subject sells products all over the world.

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

Subject declined to disclose the purchase settlements information, and from other sources, we couldn’t obtain the information, either.

Sales

Domestic Markets (Taiwan)

Product

Sales Terms

Proportion

Wool Tops, Superwash Tops, Carbonized Wool, and Wool Grease

CBD, etc

100%

Export

Product

Sales Terms

Proportion

Wool Tops, Superwash Tops, Carbonized Wool, and Wool Grease

T.T, L/C, CBD, etc

100%

 

 

Balance Sheet

Unit: NTD/000

 

2012-3-31

2011-3-31

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

492,540.00

903,646.00

Financial assets measured at fair value through profit or loss - current

0.00

8,937.00

Accounts receivable - net

18,142.00

44,620.00

Other receivables

5,141.00

7,399.00

Inventories

869,353.00

321,341.00

Other prepayments

22,900.00

49,547.00

Other current assets

28,906.00

4,353.00

Current assets

1,436,982.00

1,339,843.00

Funds and Investments

 

 

Available-for-sale financial assets - non current

2,938.00

3,525.00

Financial assets carried at cost - non current

680.00

680.00

Equity investments under equity method

475,251.00

447,276.00

Investments

475,251.00

447,276.00

Funds and long-term investments

478,869.00

451,481.00

Fixed Assets

 

 

Cost

 

 

Land

38,922.00

38,922.00

Buildings and structures

292,628.00

317,373.00

Machinery and equipment

1,074,902.00

1,077,464.00

Transportation equipment

8,602.00

9,792.00

Other facilities

9,413.00

11,558.00

Revaluation increment

235,222.00

235,222.00

Cost and revaluation increment

1,659,689.00

1,690,331.00

Accumulated depreciation

-1,238,641.00

-1,251,340.00

Construction in process and prepayment for equipments

593.00

165.00

Fixed assets

421,641.00

439,156.00

Intangible Assets

 

 

Other Assets

 

 

Idled assets

437,853.00

440,953.00

Guarantee deposits paid

34.00

34.00

Deferred income tax assets - non current

14,735.00

29,373.00

Other assets

452,622.00

470,360.00

Assets

2,790,114.00

2,700,840.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

Accounts payable

3,194.00

4,760.00

Accrued expenses

18,617.00

20,632.00

Advance receipts

4,710.00

9,061.00

Other current liabilities

532.00

716.00

Current liabilities

27,053.00

35,169.00

Long term Liabilities

 

 

Reserves

 

 

Reserve for land revaluation increment tax

193,097.00

193,097.00

Reserves

193,097.00

193,097.00

Other Liabilities

 

 

Pension reserve / accrued pension liability

114,394.00

117,619.00

Guarantee deposits received

1,687.00

1,653.00

Other liabilities

116,081.00

119,272.00

Liabilities

336,231.00

347,538.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

1,750,000.00

1,750,000.00

Capital Surplus

 

 

Capital surplus - additional paid-in capital

96,562.00

96,562.00

Capital surplus - treasury stock transactions

21,604.00

21,604.00

Capital surplus - long-term equity investments

9,261.00

9,261.00

Capital surplus - other

138.00

138.00

Capital surplus

127,565.00

127,565.00

Retained Earnings

 

 

Legal reserve

74,186.00

74,186.00

Unappropriated retained earnings

-77,755.00

-138,527.00

Retained earnings

-3,569.00

-64,341.00

Stockholders' Equity and Other adjustment

 

 

Cumulative translation adjustments

151,567.00

111,171.00

Unrealized gains (losses) on financial instruments

76.00

663.00

Unrealized Revaluation Increment

428,244.00

428,244.00

Equity adjustments

579,887.00

540,078.00

Stockholdersˉ equity

2,453,883.00

2,353,302.00

Number of treasury stock acquired by the company and subsidiaries (unit: share)

0.00

0.00

 

 

Profit and Loss Accounts

Unit: NTD/000

 

2011-4-1

To 2012-3-31

2010-4-1

To 2011-3-31

Sales

277,989.00

363,685.00

Other operating revenue

18,007.00

20,912.00

Operating income

295,996.00

384,597.00

Cost of sales

252,345.00

345,138.00

Other operating costs

8,258.00

9,257.00

Operating costs

260,603.00

354,395.00

Gross profit (loss) from operations

35,393.00

30,202.00

Selling expense

2,607.00

4,903.00

General and administrative expenses

6,849.00

7,237.00

Operating expenses

9,456.00

12,140.00

Operating income (loss)

25,937.00

18,062.00

Non-Operating Income

 

 

Interest income

921.00

2,004.00

Rent income

2,995.00

2,760.00

Revaluation gain on financial assets

0.00

13.00

Miscellaneous income

695.00

559.00

Non-operating revenues and gains

4,611.00

5,336.00

Non-Operating Expenses

 

 

Interest expense

78.00

18.00

Foreign exchange losses

194.00

730.00

Miscellaneous disbursements

2,427.00

2,310.00

Non-operating expenses and losses

2,699.00

3,058.00

Income from continuing operations before income tax

27,849.00

20,340.00

Income tax expense (benefit)

2,316.00

3,347.00

Income from continuing operations

25,533.00

16,993.00

Net income (loss)

25,533.00

16,993.00

Primary Earnings per Share

 

 

Primary earnings per share

0.15

0.10

Diluted earnings per share

 

 

 

 

Bankers

 

Name

Taiwan Bank

 

 

Public Record

 

Mortgage

No chattel mortgage record of subject has been found within the recent 3 months.

 

Lawsuit

Up to date of reporting, no existing or latent litigation of the subject has been found.

 

Interview Details

 

Name

Mr. Chan

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.34

UK Pound

1

Rs.86.09

Euro

1

Rs.69.37

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.