MIRA INFORM REPORT

 

 

Report Date :

28.11.2012

 

IDENTIFICATION DETAILS

 

Name :

YC INOX CO., LTD.

 

 

Registered Office :

No.270, Sec.4, Jungshan Rd., Shijou Shiang, Chang-Hwa Hsien

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

31.01.1973

 

 

Reg. No.:

59068700

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacture and sales of stainless steel products

 

 

No. of Employees :

Over 700 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 :

Good

Payment Behaviour :

Regular

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Taiwan

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

Taiwan - ECONOMIC OVERVIEW

 

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. In keeping with this trend, some large, state-owned banks and industrial firms have been privatized. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. In 2009, Taiwan's GDP contracted 1.9%, due primarily to a 20% year-on-year decline in exports. In 2010 GDP grew 10.9%, as exports returned to the level of previous years, and in 2011, grew 5.2%. However, 2012 growth will likely be less, according to most forecasters, because of softening global demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, but so far Taiwan has been excluded from this greater economic integration largely because of its diplomatic status with the exception of the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010. The MA administration has said that the ECFA will serve as a stepping stone toward trade pacts with other regional partners, and negotiations on a deal with Singapore began this year. Follow-on components of ECFA, including deals on trade in goods, services, and investment, have yet to be completed. Taiwan's Total Fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 accounting for 10.9% of the island's total population as of 2011. The island runs a large trade surplus, and its foreign reserves are the world's fourth largest, behind China, Japan, and Russia. Since 2005 China has overtaken the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Three financial memorandums of understanding, covering banking, securities, and insurance, took effect in mid-January 2010, opening the island to greater investments from the mainland's financial firms and institutional investors, and providing new opportunities for Taiwan financial firms to operate in China. Closer economic links with the mainland bring greater opportunities for the Taiwan economy, but also poses new challenges as the island becomes more economically dependent on China while political differences remain unresolved.

 

Source : CIA


Contact Points

 

Company Name:

YC INOX CO., LTD.

Supplied Name:

YC Inox Co Ltd

Trading Address:

No.270, Sec.4, Jungshan Rd., Shijou Shiang, Chang-Hwa Hsien, Taiwan, R.O.C.

Supplied Address:

No 270 Sec 4 Jungshan Rd Shiang Chang HWa Taiwan

Telephone Number:

+886-4-8899666

Fax Number:

+886-4-8899768

E-mail:

ys@ycinox.com

Notes:

Subject’s exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

YC Inox Co., Ltd.

Registered Address:

No.270, Sec.4, Jungshan Rd., Shijou Shiang, Chang-Hwa Hsien, Taiwan, R.O.C.

Date of Foundation:

1973-1-31

Registration Number:

59068700

Registry:

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

Registered Capital:

NTD 4,600,000,000 (USD 153,640,000)

(As of 2012.11, 1 NTD = 0.0334 USD)

Paid-up Capital:

NTD 3,701,188,570 (USD 123,619,698)

Legal Representatives:

Qingke Zhang

Legal Form:

Joint Stock Company

Principal Activities:

Manufacture and sales of stainless steel products

Staff:

Over 700 employees

Listed at Stock Exchange:

Yes Stock Symbol 2034

Date of Last Annual Return:

2012-7-4

 

 

History

 

Subject was incorporated on 1973-1-31 with registered number 59068700 as Joint Stock Company in Taiwan.

Subject was listed on Taiwan Stock Exchange with the stock symbol 2034 on 2001-9-17

 

Change of Name:

Former English Name

Yeun Chyang Industrial Co., Ltd.

Current English Name

YC Inox Co., Ltd.

 

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

Taiqiang Investment Co., Ltd (Literal Translation)

50,031,539       

 

Jinyu Zhang

 

4,332,935

 

Lielin Zhan

260,000

Liangzhi Zhang

219,017

Songlin Shi

1,693,396

Zhengxiong Pan

233,857

Tianshang Xie

3,583,098

Taishan Chen

116,743

Zuoxiang Xu

50,000

 

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

 

 

Subsidiaries & Branches

 

Sales offices and factory

1

Name

Intl. Sales & Marketing Dept.

Contact Person

Senior Manager (Sheet/Plate/Coil) Mr.Alfred Kuo

Tel:

+ 886-4-8899666 EXT:231

E-mail:

alfred@ycinox.com

2

Name

Intl. Sales & Marketing Dept.

Contact Person

Manager (Pipe/Tube)

Ms.Heather Yen

Tel:

+886-4-8899666 Ext:219

E-mail:

yc@ycinox.com 

3

Name:

Shijou Factory

Address:

No.270, Sec.4, Jungshan Rd., Shijou Shiang, Chang-Hwa Hsien, Taiwan, R.O.C.

Tel

+886-4-8899666

Fax

+886-4-8899768

 

 

Personnel Information

 

Core Management

 

Directors

1

Name

Qingke Zhang

Position

Board Chairman

2

Name

Jinpeng Zhang

Position

Director

3

Name

Jinyu Zhang

Position

Director & Manager

Date of Appointment

1999-10-25

4

Name

Lielin Zhan

Position

Director

5

Name

Liangzhi Zhang

Position

Director

6

Name

Songlin Shi

Position

Director

7

Name

Zhengxiong Pan

Position

Director

8

Name

Tianshang Xie

Position

Supervisor

9

Name

Taishan Chen

Position

Supervisor

10

Name

Zuoxiang Xu

Position

Supervisor

 

Personnel Structure

 

Total Employees

Over 700 employees

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

No.270, Sec.4, Jungshan Rd., Shijou Shiang, Chang-Hwa Hsien, Taiwan, R.O.C.

 

Production Information

 

Subject is engaged in manufacture of stainless steel products and subject has been certificated by JIS MARK, ISO 14001, OHSAS 18001, ISO9002 and TOSHMS, etc

It is introduced that subject’s monthly production capacity of stainless steel plate reaches 23,000 metric tons and monthly production capacity of stainless steel pipe is 10,000 metric tons

 

Purchase Information

 

The registered activities of subject:

Business Code

Details

CA01050 

Steel secondary processing industry

CA03010 

Heat treatment industry

CA04010 

Surface treatment

E599010 

Piping engineering

F106010 

Wholesales of hardware

F401010 

International Trading Business

ZZ99999 

Besides licensed business, all other business items those are not banned or restricted.

 

Subject purchases both at home and abroad and it is introduced that the steel materials are mainly purchased from steel mills in Taiwan.

Subject purchases raw materials including 304, 304L, 316, 316L, etc.

 

Sales Information

 

The subject is mainly engaged in sales of stainless steel products.

Subject’s products are both sold in domestic and overseas market and subject’s sales business spreads over the whole world.

 

Major products sold

1

Stainless Steel Coil

2

Stainless Steel Sheet

3

Stainless Steel Welded Pipe

4

 Stainless Steel Welded Tube

5

 Stainless Steel Angles

6

Stainless Steel Flat Bar

7

Stainless Steel U Channel

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase

Product

Payment Terms

Proportion

Raw materials, etc

Credit Sales, COD, etc

100%

 

Foreign Purchase

Product

Payment/Terms

Proportion

Raw materials, etc

CBD, L/C, etc

100%

 

Sales

 

Domestic Markets

Product

Sales Terms

Proportion

Stainless steel products

CBD, etc

100%

 

Export

Product

Sales Terms

Proportion

Stainless steel products

CBD, L/C, etc

100%

 

Balance Sheet

 

Unit: NTD/000

 

2012-3-31

2011-3-31

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

363,654.00

167,370.00

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

7,752.00

11,155.00

Notes receivable - net

116,962.00

115,724.00

Accounts receivable - net

2,638,399.00

2,636,613.00

Other receivables

555,331.00

340,466.00

Inventories

5,346,402.00

6,461,517.00

Other prepayments

73,463.00

219,578.00

Other current assets

30,769.00

1,560.00

Current assets

9,132,732.00

9,953,983.00

Funds and Investments

 

 

Financial assets carried at cost - non current

187,444.00

187,444.00

Equity investments under equity method

117,185.00

128,530.00

Investments

117,185.00

128,530.00

Funds and long-term investments

304,629.00

315,974.00

Fixed Assets

 

 

Cost

 

 

Land

1,087,269.00

1,087,269.00

Buildings and structures

596,556.00

524,822.00

Machinery and equipment

1,512,555.00

1,323,701.00

Transportation equipment

96,062.00

84,420.00

Office equipment

31,345.00

29,445.00

Leasehold improvements

4,380.00

4,380.00

Other facilities

174,314.00

158,134.00

Fixed assets cost

3,502,481.00

3,212,171.00

Accumulated depreciation

-1,135,608.00

-989,660.00

Construction in process and prepayment for equipments

33,166.00

69,612.00

Fixed assets

2,400,039.00

2,292,123.00

Intangible Assets

 

 

Deferred pension cost

0.00

3,301.00

Intangible assets

0.00

3,301.00

OtherAssets

 

 

Guarantee deposits paid

160.00

160.00

Deferred charges

35,299.00

28,796.00

Long-term notes and accounts receivable

0.00

0.00

Deferred income tax assets - non current

16,200.00

15,625.00

Other assets - other

92,252.00

73,592.00

Other assets

143,911.00

118,173.00

Assets

11,981,311.00

12,683,554.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

Short-term borrowings

2,537,599.00

3,393,657.00

Short-term notes and bills payable

99,909.00

99,884.00

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

0.00

0.00

Notes payable

1,056.00

828.00

Accounts payable

484,301.00

216,437.00

Income tax payable

93,342.00

63,879.00

Accrued expenses

184,850.00

173,520.00

Other payables

12,639.00

28,673.00

Advance receipts

245,647.00

295,031.00

Long-term liabilities - current portion

35,508.00

398,799.00

Other current liabilities

15,679.00

10,411.00

Current liabilities

3,710,530.00

4,681,119.00

Long term Liabilities

 

 

Bonds payable

0.00

0.00

Long-term borrowings

1,319,569.00

860,285.00

Long-term liabilities

1,319,569.00

860,285.00

Reserves

 

 

Reserve for land revaluation increment tax

890.00

890.00

Reserves

890.00

890.00

Other Liabilities

 

 

Pension reserve / accrued pension liability

125,536.00

116,863.00

Guarantee deposits received

181,151.00

256,063.00

Other liabilities - other

3,793.00

3,793.00

Other liabilities

310,480.00

376,719.00

Liabilities

5,341,469.00

5,919,013.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

3,701,189.00

3,698,582.00

Advance receipts for common stock

0.00

176.00

Capital Surplus

 

 

Capital surplus - additional paid-in capital

1,843,398.00

1,831,010.00

Capital surplus - stock option

0.00

9,696.00

Capital surplus - other

5,239.00

5,239.00

Capital surplus

1,848,637.00

1,845,945.00

Retained Earnings

 

 

Legal reserve

514,270.00

457,197.00

Special reserve

22,004.00

29,513.00

Unappropriated retained earnings

574,834.00

725,930.00

Retained earnings

1,111,108.00

1,212,640.00

Stockholders' Equity and Other adjustmen

 

 

Net loss not recognized as pension cost

-30,608.00

-22,004.00

Unrealized gains (losses) on financial instruments

9,404.00

29,090.00

Unrealized Revaluation Increment

112.00

112.00

Equity adjustments

-21,092.00

7,198.00

Stockholdersˉ equity

6,639,842.00

(USD 221,770,723)

6,764,541.00

(USD 225,935,669)

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

0.00

0.00

 

0.00

17,620.00

                                                            (As of 2012.11, 1 NTD = 0.0334 USD)

 

Profit and Loss Account

 

Unit: NTD/000

 

2012-1-1

~2012-3-31

2011-1-1

~2011-3-31

Sales

6,595,082.00

(USD 220,275,739)

6,101,870.00

(USD 203,802,458)

Sales returns

4,016.00

1,415.00

Sales discounts and allowances

296.00

8.00

Sales

6,590,770.00

6,100,447.00

Operating income

6,590,770.00

6,100,447.00

Cost of sales

6,316,342.00

5,766,100.00

Operating costs

6,316,342.00

5,766,100.00

Gross profit (loss) from operations

274,428.00

334,347.00

Selling expense

190,211.00

165,065.00

General and administrative expenses

25,911.00

27,553.00

Operating expenses

216,122.00

192,618.00

Operating income (loss)

58,306.00

141,729.00

Non-Operating Income

 

 

Interest income

3.00

2.00

Inome from long-term equity investments under the equity method

10,965.00

2,273.00

Investment income

10,965.00

2,273.00

Gains on disposal of fixed assets

340.00

1,139.00

Foreign exchange gains

0.00

44,860.00

Revaluation gain on financial assets

1,568.00

883.00

Miscellaneous income

1,808.00

2,396.00

Non-operating revenues and gains

14,684.00

51,553.00

Non-Operating Expenses

 

 

Interest expense

12,157.00

11,741.00

Investment loss

0.00

0.00

Loss on disposal of fixed assets

0.00

0.00

Foreign exchange losses

27,473.00

0.00

Miscellaneous disbursements

900.00

401.00

Non-operating expenses and losses

40,530.00

12,142.00

Income from continuing operations before income tax

32,460.00

181,140.00

Income tax expense (benefit)

4,020.00

31,306.00

Income from continuing operations

28,440.00

149,834.00

Net income (loss)

28,440.00

(USD 949,896)

149,834.00

(USD 5,004,456)

Primary Earnings per Share

 

 

Primary earnings per share

0.08

0.41

Diluted earnings per share

 

 

Diluted earnings per share

0.08

0.40

                                                                                      (As of 2012.11, 1 NTD = 0.0334 USD)

 

 

Cash Flows

 

Unit: NTD/000

 

2012-1-1

~2012-3-31

2011-1-1

~2011-3-31

Cash Flows from Operating Activities - Indirect Method

 

 

Net Income (Loss)

28,440

149,834

Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities

 

 

Depreciation Expense

40,735

40,816

Amortization Expense

1,948

2,163

Amortization of Discounts (Premiums) on Bonds Payable

0

499

Loss (Gain) on Decline (Recovery) in Market Value, Scrap and Obsolescence of Inventories

0

0

Investment Loss (Income) Recognized under Equity Method

(10,965)

(2,273)

Loss (Gain) on Disposal of Property, Plan and Equipment

(340)

(1,139)

Unrealized Revaluation Loss (Gain) on Financial Assets and Liabilities

(1,568)

(883)

Changes in Operating Assets and Liabilities

 

 

Decrease (Increase) in Notes Receivable

(32,053)

(73,603)

Decrease (Increase) in Accounts Receivable

(2,789)

(171,804)

Decrease (Increase) in Other Receivables

107,149

107,473

Decrease (Increase) in Inventories

6,341

(1,103,468)

Decrease (Increase) in Other Prepayments

(55,912)

104,186

Decrease (Increase) in Other Current Assets

(1,872)

0

Decrease (Increase) in Deferred Tax Assets

3,428

11,196

Increase (Decrease) in Notes Payable

334

75

Increase (Decrease) in Accounts Payable

239,215

(9,079)

Increase (Decrease) in Income Tax Payable

593

19,293

Increase (Decrease) in Accrued Expenses

(34,183)

(44,984)

Increase (Decrease) in Other Payables

0

0

Increase (Decrease) in Receipts in Advance

20,458

36,167

Increase (Decrease) in Other Current Liabilities

5,753

1,226

Increase (Decrease) in Accrued Pension Liabilities

337

1,127

Net Cash Provided by (Used in) Operating Activities

315,049

(933,178)

Cash Flows from Investing Activities

 

 

Purchase of Property, Plant and Equipment

(86,973)

(74,248)

Proceeds from Disposal of Property, Plant and Equipment

943

2,000

Increase in Deferred Charges

(884)

(1,490)

Decrease (Increase) in Other Assets

(592)

0

Net Cash Provided by (Used in) Investing Activities

(87,506)

(73,738)

Cash Flows from Financing Activities

 

 

Increase (Decrease) in Short-term Loans

(326,910)

962,396

Increase (Decrease) in Short-term Notes and Bills Payable

34

(94)

Repayment of Long-term Debt

(6,154)

(41,779)

Increase (Decrease) in Guarantee Deposits Received

(3,781)

(12,722)

Net Cash Provided by (Used in) Financing Activities

(336,811)

907,801

Effect of Exchange Rate Changes

0

0

Net Increase (Decrease) in Cash and Cash Equivalents

(109,268)

(99,115)

Cash and Cash Equivalents, Beginning of year

472,922

266,485

Cash and Cash Equivalents, End of year

363,654

167,370

Supplemental Cash Flow Information

 

 

Interest Paid- Excluding Capitalized Interest

12,430

11,277

Income Tax Paid

0

816

Non-cash Investing and Financing Activities

 

 

Current Portion of Long-term Liabilities

35,508

398,799

Conversion of Bonds to Common Stock

0

386

 

 

Bankers

 

Subject did not introduce its bank details; from other source we can not obtain the relevant information, either.

 

 

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

 

Department

Sales department

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.70

UK Pound

1

Rs.89.34

Euro

1

Rs.72.35

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.