MIRA INFORM REPORT

 

 

Report Date :

25.09.2012

 

IDENTIFICATION DETAILS

 

Name :

NEW BEST WIRE INDUSTRIAL CO., LTD.

 

 

Registered Office :

No.12-19, Lai Guan Liau, Chia Lie Dist., Tainan City

 

 

Country :

Taiwan

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

25.11.1993

 

 

Com. Reg. No.:

84703335

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacture and sales of wire rods, etc

 

 

No. of Employees :

About 268 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

 


 

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:

New Best Wire Industrial Co., Ltd.

Supplied Name:

New Best Wire Industrial Co Ltd

Trading Address:

No.12-19, Lai Guan Liau, Chia Lie Dist., Tainan City, Taiwan (R.O.C.)

Supplied Address:

No 12-19 Lai Guam Liau Chia Lie Jeng Tainan

Telephone Number:

+886-6-7263311

Fax Number:

+886-6-7263300

Notes: Subject’s exact name and address are as above.

 

 

Credit Summary

 

Credit Opinion:

Business connections are permissible.

 

 

Company Identification Details

 

Registered Name:

New Best Wire Industrial Co., Ltd.

Registered Address:

No.12-19, Lai Guan Liau, Chia Lie Dist., Tainan City, Taiwan (R.O.C.)

Date of Foundation:

1993-11-25

Registration Number:

84703335

Registry:

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

Registered Capital:

NTD 1,000,000,000 (USD 33,700,000)

(As of 2012.09, 1 NTD = 0.0337 USD)

Paid-up Capital:

NTD 995,740,000 (USD 33,556,438)

Legal Representatives:

Yutang Wu

Legal Form:

Joint Stock Company

Principal Activities:

Manufacture and sales of wire rods, etc

Staff:

About 268 employees

Listed at Stock Exchange:

Company over-the-counter Stock Symbol; 5013

Date of Last Annual Return:

2012-8-28

 

History

 

Subject was incorporated on 1993-11-25 with registered number 84703335 as Joint Stock Company in Taiwan.

Subject got over-the-counter with the Stock Symbol as 5013 on 2000-5-8

 

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

Yutang Wu

4,114,041         

Huotu Wang

4,983,620

Zhengkun Chen

3,670,839

Caiming Liu

414,120

Guangrong Investment Co, Ltd 

(Literal Translation)

1,543,013

Changyuan Chen

1,023,248

 

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

 

 

Subsidiaries & Branches

 

Related Company

Name

Suzhou New Best Wire Tech Co. , Ltd

Address

No. 8, NEW BEST Road, Xinhua Industrial Management Area, Wangting Town, Xiangcheng District, Suzhou City, China

Tel:

+86-512-66709826?66708707

Fax:

+86-512-66709827?

 

Other Address

Name

TELEP Factory

Address

No. 1-25, Lai Guan Liau, Chia Lie, Tainan 722, Taiwan, R.O.C.

Tel:

+886-6-7263399

Fax:

+886-6-7266026

 

 

Personnel Information

 

Core Management

Directors

1

Name

Yutang Wu

Position

Board Chairman & Manager

Date of Appointment

2011-3-15

2

Name

Huotu Wang

Position

Director

3

Name

Zhengkun Chen

Position

Director

4

Name

Caiming Liu

Position

Director

5

Name

Mengying Wu

Position

Director

6

Name

Changyuan Chen

Position

Supervisor

7

Name

Wenquan Ruan

Position

Supervisor

 

Personnel Structure

Total Employees

About 268 employees

 

 

Operation Information

 

Offices & Factories

 

Headquarters

Add

No.12-19, Lai Guan Liau, Chia Lie Dist., Tainan City, Taiwan (R.O.C.)

 

Production Information

l  Subject’s business can be divided into two parts: wire business and EP business

l  Subject is engaged in manufacture of Carbon steel wires, stainless steel wire and alloy steel wire rods, etc

l  It is introduced that subject has been certificated by ISO-TS 16949-2002 and ISO 9001: 2000, etc

 


Purchase Information

l  The registered activities of subject:

Business Code

Details

--

Manufacture, processing and sales of wire rods, stainless steel wire rods, black wires, Metal wires, screws, Nut wires, Galvanized steel wire nails and Iron plate of stainless steel plates, etc

--

Import and export trading business of the above mentioned products.

CB01010 

Manufacture of mechanical equipment

F401010 

International Trading Business

ZZ99999 

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

l  Subject purchases mainly from domestic market and it cooperates with the local steel mills, etc

 

Sales Information

l  The subject is mainly engaged in sales of Carbon steel wires, stainless steel wire and alloy steel wire rods, etc

l  Subject’s products are applied to TFT and LCD industry, electronic industry and automatic industry, etc

l  Subject’s products are both sold in domestic and overseas market

 

Major products

Wire Business

Stainless Steel Wire (SAE / AISI)

Carbon Steel Wire (SAE / AISI)

Alloy Steel Wire (SAE / AISI)

EP Business

EP Grade

MPEP (ECB) Grade

BA Grade

Automatic Welding Fitting

Manual Welding Fitting

Tank

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

Domestic Purchase

Product

Payment Terms

Proportion

Metal materials, etc

CBD, COD, Credit Sales, etc

100%

 

Foreign Purchase

Subject has little import business of raw materials.

 

Sales

Domestic Markets

Product

Sales Terms

Proportion

Wire Rods, etc

CBD, etc

100%

 

Export

Product

Sales Terms

Proportion

Wire Rods, etc

CBD, etc

100%

 

 

Balance Sheet

 

Unit: NTD/000

 

2012-6-30

2011-6-30

Cash and cash equivalents

58,871

86,243

Notes receivable - net

104,829

59,282

Accounts receivable - net

441,045

559,862

 Accounts receivable - related parties - net

20,746

9,449

Other receivables

11,970

24,470

Other receivables - related parties

18,561

216

Current assets

1,936,481

1,629,918

Inventories

1,264,247

883,257

Inventories-manufacturing

1,264,247

883,257

Advance Payment

8,107

4,346

Other current assets

8,105

2,793

Deferred Income Tax Assets - Flow

579

2,384

Restricted assets

147

400

Other Current Assets-Other

7,379

9

Investment

435,687

373,701

Long-term investments at equity,

435,687

373,701

Funds And Long-Term Investments

435,687

373,701

Land

360,707

317,034

Buildings And Structures

265,128

264,132

Machinery and equipment

450,672

440,781

Transporting Equipment

6,977

6,142

Office Equipment

3,527

2,560

Total  Fixed assets Costs

1,122,928

1,062,059

Appraisal Increment

.

.

Accumulated depreciation

-383,926

-325,537

Total Net Fixed Assets

801,586

778,572

Total Cost and Appraisal Increment

1,122,928

1,062,059

Construction in progress and Prepayments for equipment

62,584

42,050

Construction in progress

29,485

.

Prepayments for equipment

33,099

42,050

Other Devices

35,917

31,410

Deferred Pension Costs

74

221

Total Intangible Assets

74

221

Guaranteed Deposits Paid

1,132

765

Deferred Charges

8,800

6,987

Long-Term Notes Receivable and funds

.

.

Overdue Receivables

.

.

Total Other Assets

9,932

7,752

Total Assets

3,183,760

2,790,164

Short-term borrowings

200,000

29,901

Notes payable

142,301

154,649

 Accounts payable

41,567

30,332

Income Tax Payable

11,314

19,939

 Accrued expenses

52,265

62,978

Changes in the fair value of the financial liability on profit and loss-flow

1,727

707

Current Liabilities

584,545

491,859

Other Payables

56,957

44,370

Advance Receipt

5,969

2,585

Long-Term Liabilities - Current Portion

72,000

128,000

Long-Term Loans - Current Portion

72,000

128,000

 Other Current Liabilities

445

18,398

Current Liabilities-Others

445

18,398

Long-Term Borrowings

1,037,963

826,000

Long Term Bank Loans

1,037,963

826,000

Long-Term Liabilities

1,037,963

826,000

Retirementallowancereserve/ Accrued Pension Liabilities

37,869

42,285

Deferred Income Taxes

26,694

21,980

Deferred income tax liabilities - non-current

26,694

21,980

Other liabilities

6,887

7,776

Deferred Credit-Affiliate Company Benefi

6,887

7,776

Total Other Liabilities

71,450

72,041

Total Liabilities

1,693,958

1,389,900

Ordinary Share Capital

976,215

871,620

stock dividends to Be Assigned

19,525

104,595

Capital Stock

995,740

976,215

Capital surplus - Share Premium Account

10,337

10,337

Capital surplus - Common stock share premium

10,337

10,337

Capital surplus - long-term equity investments

951

951

Capital surplus-Other

158

90

Capital surplus- Other

158

90

Total Capital surplus

11,446

11,378

Legal Surplus

154,713

136,247

Special Reserve

25,408

25,408

Unappropriated retained earnings

285,954

262,533

Accumulated Profit Or Loss

285,954

262,533

Retained Earnings

466,075

424,188

Cumulative translation adjustments

32,572

11,111

Net Loss Not Recognized As Pension Cost

-16,031

-22,628

Stockholders' Equity and Other adjustment

16,541

-11,517

Issued shares equivalent to Shareholder funds received in advance (under the provision of Shareholder’s Equity)

-.

-.

Number of Treasury Stock Acquired by  Parent Company and Subsidiaries (unit: Share)

-.

-.

Total Stockholders' Equity

1,489,802

(USD 50,206,327)

1,400,264

(USD 47,188,897)

(As of 2012.09, 1 NTD = 0.0337 USD)

 

 

Profit and Loss Account

 

Unit: NTD/000

 

2012-1-1

~2012-6-30

2011-1-1

~2011-6-30

Sales

1,527,948

(USD 51,491,848)

1,922,022

(USD 64,772,141)

Net Sales

1,451,767

1,846,438

Total sales revenue

1,479,010

1,865,979

Sales returns

25,441

18,533

Sales discounts and allowances

1,802

1,008

Total Labor income

76,181

75,584

Processing income

76,181

75,584

total cost of sales

1,448,530

1,754,636

cost of goods sold

1,386,913

1,693,436

Total service costs

61,617

61,200

Processing costs

61,617

61,200

Gross profit (loss) from operations

79,418

167,386

Unrealized Gains on Intercompany Transactions

1,372

1,541

Realized Gains on Intercompany Transactions

1,637

623

Operating expenses

65,027

66,059

Selling expense

40,906

43,727

General and administrative expenses

22,027

20,707

Research and development expenses

2,094

1,625

Operating income (loss)

14,656

100,409

Non-operating revenues and gains

44,577

33,863

Interest income

54

77

Investment income

17,238

26,359

Inome from investments under the equity method

17,238

26,359

Gains on disposal of fixed assets

3

766

Foreign exchange income

.

769

Income from Bad debt turning

16,860

.

Revaluation gain on financial assets

4,953

179

Miscellaneous income

5,469

5,713

Non-Operating Expenses and Loss

17,895

11,805

Interest expense

10,905

8,740

Loss on Disposal of fixed assets

643

2,776

Foreign exchange losses

6,347

.

Miscellaneous disbursements

.

289

Income from continuing operations before income tax

41,338

122,467

Income tax expense (benefit)

16,645

23,336

Unit Net Income from continuing operations

24,693

99,131

Net income (loss)

24,693

(USD 832,154)

99,131

(USD 3,340,715)

Primary Earnings per Share(Unit: NTD)

0.25

1.00

Diluted earnings per share(Unit: NTD)

0.25

0.99

(As of 2012.09, 1 NTD = 0.0337 USD)

 

Bankers

 

Subject did not introduce its bank details and 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.53.29

UK Pound

1

Rs.86.44

Euro

1

Rs.68.95

 

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.