MIRA INFORM REPORT

 

 

Report Date :

29.04.2013

 

IDENTIFICATION DETAILS

 

Name :

NITORI TAIWAN CO., LTD.

 

 

Registered Office :

6F., No.98, Sec. 2, Wenhua Rd., Banqiao Dist., New Taipei City 22041

 

 

Country :

Taiwan

 

 

Financials (as on) :

20.02.2013

 

 

Date of Incorporation :

06.12.2006

 

 

Com. Reg. No.:

28454066

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Trading of household items and etc.

 

 

No. of Employees :

About 290 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, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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. 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 1.8%, due primarily to a 13.1% year-on-year decline in exports. In 2010 GDP grew 10.7%, as exports returned to the level of previous years, and in 2011, grew 4.1%. In 2012, however, growth fell to 1.3%, 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 except for the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, so far Taiwan has been excluded from this greater economic integration in part because of its diplomatic status. Negotiations continue on such follow-on components of ECFA regarding trade in goods and services. The MA administration has said that the ECFA will serve as a stepping stone toward trade pacts with other key trade partners, which Taiwan subsequently launched with Singapore and New Zealand. 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 11.2% of the island's total population as of 2012. The island runs a large trade surplus largely because of its surplus with China, and its foreign reserves are the world's fifth largest, behind China, Japan, Saudi Arabia, and Russia. In 2006 China overtook 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. In August 2012, Taiwan Central Bank signed a memorandum of understanding on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese RMB and the New Taiwan dollar across the Strait, which could help develop Taiwan into a local RMB hub. 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:

Nitori Taiwan Co., Ltd.

Supplied Name:

NITORI TAIWAN CO LTD.

Trading Address:

6F., No.98, Sec. 2, Wenhua Rd., Banqiao Dist., New Taipei City 22041, Taiwan (R.O.C.)

Supplied Address:

2F No. 480 Sec 1, Jhonghua Rd., Jhongli Citytaoyuan County 32068

Telephone Number:

+886-3-461-0973

Fax Number:

+886-3-461-0148

Notes: The exact name is as above. The supplied address is the former address and correct address is as we supplied.

 

Credit Summary

 

Credit Opinion:

Business connections are permissible.

 

Company Identification Details

 

Registered Name:

Nitori Taiwan Co., Ltd.

Registered Address:

6F., No.98, Sec. 2, Wenhua Rd., Banqiao Dist., New Taipei City 22041, Taiwan (R.O.C.)

Date of Foundation:

2006-12-6

Registration Number:

28454066

Registry:

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

Registered Capital:

NTD 940,000,000 (USD 31,490,000)

(As of 2013.4, 1 NTD = 0.0335 USD)

Paid-up Capital:

NTD 940,000,000 (USD 31,490,000))

Legal Representatives:

Xiongyi Fengqing

Legal Form:

Joint Stock Company

Principal Activities:

Trading of household items and etc.

Staff:

About 290 Employees

Listed at Stock Exchange:

No

Date of Last Annual Return:

2012-5-21

 

History

Subject was incorporated on 2006-12-6 with registered number 28454066 as Joint Stock Company in Taiwan.

 

Change of Address

Former Address

2F., No.480, Sec. 1, Jhonghua Rd., Jhongli City, Taoyuan County 32068, Taiwan (R.O.C.)

Current Address

6F., No.98, Sec. 2, Wenhua Rd., Banqiao Dist., New Taipei City 22041, Taiwan (R.O.C.)

 

Shareholders

 

Name

Subscription Shares

Nitori Holdings Co Ltd.

94,000,000       

 

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

 

Subsidiaries & Branches

 

Parent Companies

Name

Nitori Holdings Co Ltd.

Address

6-20, Kamiya 3-chome, Kita-ku, Tokyo, Japan

Telephone Number

+81- 6741-1235

Listed at Stock Exchange:

Yes; (Stock Symbol:9843)

 

Subsidiary Companies

1

Name

Nitori Taiwan Co., Ltd. Taipei Branch

Registered Address

B1, No.100, Dunhua Bei Road, Song Shan District, Taipei County, Taiwan

Legal Form

Joint Stock Company

Registration Number

28991066

Date of Registration

2010-2-4

2

Name

Nitori Taiwan Co., Ltd. Zhongli Branch

Registered Address

No.480, Sec. 1, Zhonghua Rd., Zhongli City, Taoyuan County 32068, Taiwan (R.O.C.)

Legal Form

Joint Stock Company

Registration Number

24307992

Date of Registration

2008-11-18

3

Name

Nitori Taiwan Co., Ltd. Tainan Branch

Registered Address

No.685, Sec. 2, Zhonghua W. Rd., West Central District, Tainan City 700, Taiwan (R.O.C.)

Legal Form

Joint Stock Company

Telephone Number

+886-6-358-8998

Fax Number

+886-6-358-9819

Registration Number

29064381

Date of Registration

2008-10-7

 

 

Personnel Information

Core Management

Directors

1

Name

Xiongyi Fengqing

Position

Board Chairman

2

Name

Junzhi Baijing

Position

Director

3

Name

Zhengyan Jia

Position

Director

4

Name

Longnan Jiubao

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 290 Employees

 

 

Operation Information

Offices & Factories

 

 

Headquarters

Add

6F., No.98, Sec. 2, Wenhua Rd., Banqiao Dist., New Taipei City 22041, Taiwan (R.O.C.)

 

Production Information

l  The subject is a trader of household items and etc without any production activities.

 

Purchase Information

l  The registered activities of subject:

Business Code

Details

ZZ99999

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

 

l  It is introduced that subject purchase products both in domestic and overseas markets.

 

Sales Information

 

l  The subject is mainly engaged in sales of household items and etc.

l  It is introduced that subject’s major products include furniture, furnishings, household goods and etc.

l  It is introduced that subject’s selling territory is mainly in domestic market.

l  It is introduced that subject’s major customers are direct customers and etc.

l  It is introduced that subject has about 14 stores in Taipei, New Taipei, Taoyuan, Hsinchu, Taichung, Tainan and Kaohsiung, Taiwan.

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

Purchase

 

Domestic Purchase

Product

Payment Terms

Proportion

Household items and etc.

COD,CBD and etc

100%

 

Foreign Purchase

Product

Payment Terms

Proportion

Household items and etc.

CBD and etc

100%

 

Sales

Domestic Markets

Product

Sales Terms

Proportion

Household items and etc.

COD,CBD and etc

100%

 

Export

The subject has little export.

 

Financial Information

 

Subject has no obligations to disclose its financial statements to the third party according to the relevant policy in Taiwan and the only source from which we can obtain the information is the subject itself.

Subject’s relevant staff Ms. Xu declined to disclose its financials citing the grounds of company’s confidentiality; from other source we can not obtain the relevant information, either.

 

We found the consolidated financial information of subject’s parent company (Nitori Holdings Co Ltd.) from public files for reference.

 

Consolidated Balance Sheet

 

                                                                    Unit:USD /000

Date

2012-2-20

2013-2-20

Assets

 

 

Current assets

 

 

Cash and deposits

235,749

188,002

Notes and accounts receivable-trade

110,325

109,372

Merchandise and finished goods

302,713

308,358

Work in process

2,060

2,541

Raw materials and supplies

15,739

17,186

Deferred tax assets

51,275

28,330

Other

135,272

120,805

Allowance for doubtful accounts

-88

-32

Total current assets

853,071

774,573

Noncurrent assets

 

 

Property, plant and equipment

 

 

Buildings and structures

1,405,251

1,352,583

Accumulated depreciation

-516,367

-508,187

Buildings and structures, net

888,871

844,396

Machinery, equipment and vehicles

62,882

60,685

Accumulated depreciation

-30,863

-30,337

Machinery, equipment and vehicles, net

32,006

30,337

Tools, furniture and fixtures

96,671

94,887

Accumulated depreciation

-58,586

-60,098

Tools, furniture and fixtures, net

38,086

34,789

Land

821,153

754,686

Lease assets

47,004

42,432

Accumulated depreciation

-4,949

-6,768

Lease assets, net

42,055

35,664

Construction in progress

24,118

13,055

Total property, plant and equipment

1,846,313

1,712,959

Intangible assets

 

 

Leasehold right

58,900

53,352

Other

23,301

18,499

Total intangible assets

82,201

71,851

Investments and other assets

 

 

Investment securities

10,363

10,792

Long-term loans receivable

4,183

7,291

Guarantee deposits

245,698

196,712

Lease deposits

185,894

160,589

Deferred tax assets

44,417

25,502

Other

83,922

74,637

Allowance for doubtful accounts

-339

-246

Total investments and other assets

574,174

475,299

Total noncurrent assets

2,502,701

2,260,120

Total assets

3,355,772

3,034,693

Liabilities

 

 

Current liabilities

 

 

Notes and accounts payable-trade

146,841

138,012

Short-term loans payable

325,625

68,531

Lease obligations

3,266

2,626

Income taxes payable

193,116

141,418

Provision for bonuses

24,394

22,257

Provision for point card certificates

16,644

18,691

Provision for discount to shareholders

716

929

Accounts payable-other

112,699

98,281

Deferred tax liabilities

0

0

Asset retirement obligations

389

256

Other

136,327

99,178

Total current liabilities

960,093

590,243

Noncurrent liabilities

 

 

Long-term loans payable

51,664

76,377

Lease obligations

39,279

32,995

Deferred tax liabilities

13

11

Provision for retirement benefits

21,894

19,898

Provision for directors' retirement benefits

2,990

2,530

Asset retirement obligations

19,583

18,894

Other

62,643

54,547

Total noncurrent liabilities

198,091

205,284

Total liabilities

1,158,196

795,527

Net assets

 

 

Shareholders' equity

 

 

Capital stock

167,944

142,720

Capital surplus

169,652

144,673

Retained earnings

2,107,323

2,123,281

Treasury stock

-209,308

-177,092

Total shareholders' equity

2,235,624

2,233,582

Accumulated other comprehensive income

 

 

Valuation difference on available-for-sale securities

2,073

3,053

Deferred gains or losses on hedges

-1,646

20,015

Foreign currency translation adjustment

-43,776

-24,338

Total accumulated other comprehensive income

-43,336

-1,249

Subscription rights to shares

5,288

6,437

Minority interests

-

384

Total net assets

2,197,576

2,239,155

Total liabilities and net assets

3,355,772

3,034,693

 

 

Consolidated Profit and Loss Account

 

                                                                    Unit: USD/000

Date

2011-2-21~2012-2-20

2012-2-21~2013-2-20

Net sales

4,157,970

3,723,196

Cost of sales

1,847,469

1,667,079

Gross profit

2,310,489

2,056,106

Selling, general and administrative expenses

1,582,552

1,399,082

Operating income

727,936

657,024

Non-operating income

 

 

Interest income

4,911

3,768

Dividends income

201

171

Foreign exchange gains

5,339

-

Vending Machine Income

2,877

2,455

Gain on Sales of Valueable

1,193

1,783

Interest on refund

515

1,270

Other

3,178

2,167

Total non-operating income

18,251

11,646

Non-operating expenses

 

 

Interest expenses

3,140

2,018

Foreign exchange losses

-

2,583

Other

38

149

Total non-operating expenses

3,178

4,761

Ordinary income

743,010

663,909

Extraordinary income

 

 

Gain on sales of noncurrent assets

38

9,554

Gain on bad debts recovered

729

-

Gain on abolishment of retirement benefit plan

1,306

-

Other

38

299

Total extraordinary income

2,135

9,853

Extraordinary loss

 

 

Loss on sales and retirement of noncurrent assets

1,306

1,014

Penalty for the scrap & build of outlets

5,828

1,836

Loss on valuation of investment securities

703

-

Impairment loss

-

587

Loss on disaster

17,988

-

Loss on adjustment for changes of accounting standard for asset retirement obligations

8,793

-

Loss on cancellation of lease contracts

38

427

Other

1,156

192

Total extraordinary losses

35,825

4,078

Income before income taxes and minority interests

709,320

669,684

Income taxes-current

289,486

273,538

Income taxes-deferred

-1,570

13,482

Total income taxes

287,904

287,020

Income before minority interests

421,404

382,654

Minority interests in income

-

384

Net income

421,404

382,269

 

 

Consolidated Cash Flow

 

Date

2011-2-21~2012-2-20

2012-2-21~2013-2-20

Net cash provided by (used in) operating activities

 

 

Income before income taxes and minority interests

709,320

669,684

Depreciation and amortization

113,214

98,047

Impairment loss

-

587

Amortization of goodwill

1,432

-

Loss on adjustment for changes of accounting standard for asset retirement obligations

8,793

-

Increase (decrease) in allowance for doubtful accounts

0

-75

Increase (decrease) in provision for bonuses

2,161

1,366

Increase (decrease) in provision for retirement benefits

-11,167

1,302

Increase (decrease) in provision for point card certificates

-7,047

4,537

Interest and dividends income

-5,112

-3,950

Interest expenses

3,140

2,018

Loss (gain) on sales and retirement of property, plant and equipment

1,256

-8,529

Payment of penalty expense

5,828

1,836

Loss (gain) on valuation of investment securities

703

-

Decrease (increase) in notes and accounts receivable-trade

12,009

-4,740

Decrease (increase) in inventories

-14,960

-54,878

Increase (decrease) in notes and accounts payable-trade

-11,581

9,351

Increase (decrease) in accrued consumption taxes

13,579

-24,797

Other, net

-11,154

8,006

Subtotal

810,438

699,797

Interest and dividends income received

4,836

4,900

Interest expenses paid

-3,153

-1,964

Payment of penalty

-402

-363

Income taxes paid

-260,507

-296,712

Income taxes refund

327

42,581

Net cash provided by (used in) operating activities

551,539

448,217

Net cash provided by (used in) investing activities

 

 

Payments into time deposits

-9,584

-10,162

Proceeds from withdrawal of time deposits

32,584

6,255

Purchase of property, plant and equipment

-276,058

-250,395

Proceeds from sales of property, plant and equipment

88

30,967

Purchase of intangible assets

-6,482

-6,394

Payments for guarantee deposits

-19,734

-4,334

Proceeds from collection of guarantee deposits

2,688

1,206

Payments for lease deposits

-9,195

-5,786

Collection of lease deposits

992

3,864

Proceeds from guarantee deposits received

7,600

2,178

Proceeds from deposits received

3,505

4,302

Purchase of long-term prepaid expenses

-13,327

-2,327

Proceeds from purchase of investments in subsidiaries resulting in change in scope of consolidation

352

-

Payments of loans receivable

-1,369

-3,896

Collection of loans receivable

-

352

Other payments

-38

-171

Other proceeds

-

149

Net cash provided by (used in) investing activities

-287,966

-234,170

Net cash provided by (used in) financing activities

 

 

Net increase (decrease) in short-term loans payable

-104,861

-229,526

Proceeds from long-term loans payable

38,940

117,688

Repayment of long-term loans payable

-78,571

-63,866

Repayments of lease obligations

-2,676

-2,946

Purchase of treasury stock

-1

-10,888

Cash dividends paid

-55,018

-49,819

Proceeds from exercise of stock option

-

4,014

Net cash provided by (used in) financing activities

-202,223

-235,344

Effect of exchange rate change on cash and cash equivalents

-5,301

4,281

Net increase (decrease) in cash and cash equivalents

56,023

-17,015

Cash and cash equivalents at beginning of period

168,346

231,252

Decrease in cash and cash equivalents resulting from exclusion of subsidiaries from consolidation

-1,068

-

Cash and cash equivalents at end of period

231,252

179,505

 


 

Bankers

 

Name

Bank Of Taiwan

 

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

Ms. Xu

Department

Sales Department

E-mail

service@nitori.com.tw

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.29

UK Pound

1

Rs.83.88

Euro

1

Rs.70.67

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.