MIRA INFORM REPORT

 

 

Report Date :

14.12.2013

 

IDENTIFICATION DETAILS

 

Name :

Fu Chun Shin Machinery Manufacture Co., Ltd.

 

 

Registered Office :

No.269, Bao Dong Rd., Guanmiao Dist., Tainan City 718

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

17.07.1991

 

 

Com. Reg. No.:

86122164

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and sales of machinery

 

 

No. of Employees :

About 300

 

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 4.0%. 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:

Fu Chun Shin Machinery Manufacture Co., Ltd.

Supplied Name:

FU Chun Shin Machinery Manufacture Co Ltd                                                                           

Trading Address:

No.269, Bao Dong Rd., Guanmiao Dist., Tainan City 718, Taiwan R.O.C.

Supplied Address:

No 269 Baodong Road Pitou Village Guanmiao District Tinan City 1841

Telephone Number:

+886-6-595-0688

Fax Number:

+886-6-595-1129

E-mail:

fcs1933@fcs.com.tw

 

Notes: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

Fu Chun Shin Machinery Manufacture Co., Ltd.

Registered Address:

No.269, Bao Dong Rd., Guanmiao Dist., Tainan City 718, Taiwan R.O.C.

Date of Foundation:

1991-7-17

Registration Number:

86122164

Registry:

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

Registered Capital:

NTD 1,500,000,000 (USD 50,850,000)

(As of 2013.12, 1 NTD = 0.0339 USD)

Paid-up Capital:

NTD 1,148,692,950 (USD 38,940,691)

Legal Representatives:

Boxun Wang

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sales of machinery

Staff:

About 300 Employees

Listed at Stock Exchange:

Yes; Stoke Symbol:6603

Date of Last Annual Return:

2013-8-26

 

 

History

 

Subject was incorporated on 1991-7-17 with registered number 86122164 as Joint Stock Company in Taiwan.

 

Subject listed on Taiwan Over-The-Counter Securities exchange on 2004-4-5.

 


Shareholders

 

Name

Subscription Shares

Boxun Wang

9,733,748

Junjie Wang

4,666,588

Bofeng Investment Co. Ltd (Literal Translation)

2,755,743

Jiamiao Qiu

584,000

Junxian Wang

4,648,662

Shiming Chen

446,175

Junyu Wang

572,410

Suzhen Zhang

3,114,715

Feiru Chen

226,600

 

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

 

Shareholder Information:

Registered Name:

Bofeng Investment Co. Ltd (Literal Translation)

Registered Address:

No. 69, 226 Lane, 2 Sec, Huadong Road, East District, Tainan City

Date of Foundation:

1997-5-23

Registration Number:

16012586

Registry:

Tainan City Government

Registered Capital:

NTD 20,100,000 (USD 681,390)

(As of 2013.12, 1 NTD = 0.0339 USD)

Paid-up Capital:

NTD 20,100,000 (USD 681,390)

Legal Representatives:

Suzhen Zhang

Legal Form:

Joint Stock Company

Principal Activities:

General investment

Listed at Stock Exchange:

No

Date of Last Annual Return:

2012-7-24

 

 

Subsidiaries & Branches

 

Related Companies

1

Name

Fu Chun Shin(Ningbo)Machinery Manufacture Co,Ltd

Region

China

Date of Foundation:

2012-3-29

2

Name

Fu Chun Shing Co., Ltd.

Region

British Virgin IS.

Date of Foundation:

1998-4-30

 

 

Sales Offices

1

Name

Mexico office

Telephone number

+52-55-2290-9618

Email

mhc_injection1@hotmail.com

 

Name

Brazil office

Telephone number

+55-11-2722-6766

Email

andre.huang@fcsbrasil.com.br

 

Name

South Africa office

Telephone number

+27-11-786-5228

Email

tarina.vw@hestico.co.za

 

Name

Poland office

Telephone number

+48-22-40-99-118

Email

tel.kom.info@iebm.pl

 

Name

FCS Ningbo

Telephone number

+86-574-5613-8688

Email

cnb@fcs.com.tw

Note:

It is introduced that subject has many members covering all over the world, we offer the major related companies and offices for reference as following:

 

Factories

Address:

No 269-6, 10,A Baodong Road Pitou Village Guanmiao District Tinan City 1841

Date of Foundation:

1986-10-27

Date of Registration:

1988-7-16

Factory Registration Number:

99659196

Factory Manager:

Boxun wang

Status:

In Production

Date of Last Annual Return:

2010-1-14

 

 

Personnel Information

 

Core Management

 

Directors

1

Name

Boxun wang

Position

Board Chairman

2

Name

Junjie wang

Position

Vice-President

3

Name

Fengbo wang

Position

Director

4

Name

Jiamiao qiu

Position

Director

5

Name

Junxian wang

Position

Director

6

Name

Shiming chen

Position

Director

7

Name

Junyu wang

Position

Director

8

Name

Wenbin cai

Position

Independent Director

9

Name

Shuangxi zhuang

Position

Independent Director

10

Name

Suzhen zhang

Position

Supervisor

11

Name

Zongzheng wu

Position

Supervisor

12

Name

Feiru chen

Position

Supervisor

13

Name

Shengzong Cai

Position

Manager

Date of Appointment

2001-10-1

 

Personnel Structure

 

Total Employees

About 300 Employees

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

No.269, Bao Dong Rd., Guanmiao Dist., Tainan City 718, Taiwan R.O.C.

 

Production Information

 

·         Subject is engaged in manufacturing of machinery, etc.

·         Subject has factories in Taiwan and the mainland of China for production.

·         Subject obtained the certification of ISO9001, CE, etc.     

 

Purchase Information

 

The registered activities of subject:

Business Code

Details

--

Plastic injection machine, mold manufacturing, etc

--

Vehicle parts and electronic components, such as plastic products manufacturing, processing and buying and selling business

CB01990

Other mechanical manufacturing kitchen waste processor

CC01020

Wire and cable manufacturing

CB01010

Machinery and equipment manufacturing

ZZ99999

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

 

The components and raw material for production are purchased both home and abroad.

 

 

Sales Information

 

·         The subject is mainly engaged in sales of injection molding machine, etc.

·         The major injection molding machines sold by subject include standard, power-saving, high-speed precise, giant, multi-component, thermosetting, packaging application, rubber, etc.

·         The products are applied in Hardware, Opto-electronics industry, mobile manufacture, connector, Auto parts industry, etc.

·         The subject sales regions covered all over the world.

·         Subject’s main customers include Chi Mei Corporation, The Great Wall Group Co., Ltd, etc.

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase

Product

Terms

Proportion

Components and raw material

Cash, T/T

100%

 

Foreign Purchase

Product

Terms

Proportion

Components and raw material

L/C

100%

 

Sales

 

Domestic Markets

Product

Terms

Proportion

Machinery

T/T, Cash

100%

 

Export

Product

Terms

Proportion

Machinery

L/C,

100%

 

 

Balance Sheet

 

Unit: NTD/000

 

2012-12-31

2011-12-31

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

68,424.00

76,785.00

 Available-for-sale financial assets - current

1,495.00

2,329.00

Notes receivable - net

202,676.00

189,348.00

Accounts receivable - net

280,193.00

246,486.00

Accounts receivable - related parties - net

37,705.00

37,648.00

Other receivables - related parties

143,275.00

88,311.00

Inventories

575,623.00

458,956.00

Other current assets

33,752.00

39,621.00

Current assets

1,343,143.00

1,139,484.00

Funds and Investments

 

 

Long-term investments under equity method

1,130,191.00

1,174,951.00

Real estate investment

133,175.00

0.00

Investments

1,263,366.00

1,174,951.00

Funds and investments

1,263,366.00

1,174,951.00

Fixed Assets

 

 

Cost

 

 

Land

153,900.00

153,900.00

Buildings and structures

240,013.00

240,235.00

Machinery and equipment

182,993.00

164,338.00

Utilities equipment

12,121.00

11,878.00

Transportation equipment

12,218.00

12,544.00

office equipment

16,462.00

15,763.00

Other facilities

9,458.00

6,284.00

Revaluation increment

350,215.00

350,215.00

Cost and revaluation increment

977,380.00

955,157.00

Accumulated depreciation

(261,100.00)

(240,833.00)

Construction in process and prepayment for equipments

72,019.00

33,736.00

Fixed assets

788,299.00

748,060.00

Intangible Assets

 

 

Business mark right

48.00

82.00

Patent rights

162.00

230.00

Computer software cost

4,618.00

2,849.00

Other intangible assets

4,020.00

6,171.00

Intangible assets

8,848.00

9,332.00

OtherAssets

 

 

leased property

247,781.00

219,177.00

Guarantee deposits paid

5,717.00

3,444.00

Deferred charges

2,881.00

4,285.00

Long-term notes receivable and payment

8,816.00

23,154.00

 Other assets - other

55,298.00

23,191.00

Other assets

320,493.00

273,251.00

Assets

3,724,149.00

3,345,078.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

short-term borrowing

308,287.00

45,091.00

Short-term notes and bills payable

44,996.00

0.00

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

70.00

323.00

notes payable

3,130.00

1,076.00

Accounts payable

227,539.00

254,494.00

Accounts payable - related parties

51,312.00

39,016.00

Income tax payable

15,263.00

0.00

Accrued expenses

82,147.00

87,887.00

advance receipt

178,474.00

97,706.00

Long-Term Liabilities -Current Portion

69,170.00

55,570.00

Other current liabilities

20,852.00

28,892.00

Current liabilities

1,001,240.00

610,055.00

Long term Liabilities

 

 

Long-term borrowings

637,279.00

594,918.00

Long-term liabilities

637,279.00

594,918.00

Reserves

 

 

Reserve for land revaluation increment tax

222,545.00

222,545.00

Reserves

222,545.00

222,545.00

Other Liabilities

 

 

Pension reserve / accrued pension liability

74,020.00

74,517.00

Guarantee deposits received

9,865.00

9,865.00

deferred income taxes

86,167.00

81,523.00

Other liabilities - other

6,653.00

7,960.00

Other liabilities

176,705.00

173,865.00

Liabilities

2,037,769.00

1,601,383.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

1,119,736.00

1,066,415.00

Capital Surplus

 

 

Capital surplus - additional paid-in capital

93,076.00

183,722.00

Capital reserves - storage stock trading

1,500.00

1,500.00

Capital surplus

94,576.00

185,222.00

Retained Earnings

 

 

Legal reserve

78,950.00

65,896.00

The special reserve

2,786.00

2,786.00

No amount of retained earnings

236,353.00

229,663.00

Retained earnings

318,089.00

298,345.00

Stockholders' Equity and Other adjustment

 

 

Cumulative translation adjustments

52,833.00

83,791.00

Net loss not recognized as pension cost

(19,542.00)

(17,748.00)

Unrealized Revaluation Increment

127,670.00

127,670.00

Treasury stock

(6,982.00)

0.00

Equity adjustments

153,979.00

193,713.00

Stockholders‘ equity

1,686,380.00

1,743,695.00

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

450,000.00

0.00

Equivalent Shares of Outstandings of Advance Receipts for Common Stock (Unit: Share)

0.00

0.00

 

 

Profit and loss account

 

Unit: NTD/000

 

2012

2011

Sales

1,668,598.00

1,886,723.00

Return Inward

12,068.00

412.00

Sales discounts and allowances

2,480.00

8,710.00

Sales

1,654,050.00

1,877,601.00

Operating income

1,654,050.00

1,877,601.00

Operating costs

1,348,256.00

1,573,021.00

Gross profit (loss) from operations

305,794.00

304,580.00

Unrealized interests between affiliate companies

4,626.00

7,010.00

Affiliate company has achieved between interests

5,280.00

2,359.00

Selling expense

198,071.00

186,376.00

General and administrative expenses

57,516.00

63,133.00

research and development expenses

33,226.00

32,265.00

Operating expenses

288,813.00

281,774.00

Operating income (loss)

17,635.00

18,155.00

Non-Operating Income

 

 

Interest income

7,949.00

6,365.00

Income from long-term equity investments under the equity method

32,474.00

116,466.00

Gains on disposal of fixed assets

227.00

303.00

Foreign exchange gains

0.00

3,973.00

Rental Income

32,109.00

28,939.00

Financial assets evaluation

2,590.00

0.00

Miscellaneous income

6,168.00

11,105.00

Non-operating revenues and gains

81,517.00

167,151.00

Non-Operating Expenses

 

 

Interest expense

15,998.00

14,141.00

Loss on disposal of fixed assets

9.00

41.00

loss on exchange

12,561.00

0.00

Financial liability loss evaluation

0.00

1,739.00

Sundry Expenses

6,510.00

6,570.00

Non-operating expenses and losses

35,078.00

22,491.00

Income from continuing operations before income tax

64,074.00

162,815.00

Income tax expense (benefit)

26,993.00

32,277.00

Income from continuing operations

37,081.00

130,538.00

Net income (loss)

37,081.00

130,538.00

Primary Earnings per Share

 

 

Primary earnings per share

0.33

1.30

Diluted earnings per share

 

 

Diluted earnings per share

0.33

1.30

 

 

Cash flow:

 

Unit: NTD/000

 

2012

2011

Cash Flows from Operating Activities - Indirect Method

37,081.00

130,538.00

Net Income (Loss)

 

 

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

28,773.00

27,823.00

Depreciation Expense

5,927.00

8,506.00

The number of differences between the net pension costs and contributions

-1,794.00

-4,474.00

The equity method to recognize the investment losses (gains)

-32,474.00

-116,466.00

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

38,594.00

0.00

Investment Loss (Income) Recognized under Equity Method

-218.00

-262.00

Financial assets and liabilities unrealized loss evaluation (interest)

581.00

5,626.00

Other Adjustments to Reconcile Net Income

 

 

Changes in Operating Assets and Liabilities

-13,328.00

-20,765.00

Decrease (Increase) in Notes Receivable

-33,707.00

-3,441.00

Decrease (Increase) in Accounts Receivable

-57.00

-6,722.00

Decrease (Increase) in Accounts Receivable - Related Parties

13,257.00

0.00

Decrease (Increase) in Other Receivable- Related Parties

-116,667.00

-46,654.00

Decrease (Increase) in Inventories

1,738.00

18,892.00

Impairment Losses on Financial Asset

-3,369.00

1,941.00

Decrease (Increase) in Inventories

14,338.00

-13,777.00

Notes payable increase (decrease)

2,054.00

-7,110.00

Decrease (Increase) in Other Current Assets

-26,955.00

-16,346.00

Increase (Decrease) in Accounts Payable

12,296.00

13,381.00

Increase (Decrease) in Accounts Payable - Related Parties

15,263.00

0.00

Increase (Decrease) in Income Tax Payable

-5,740.00

16,300.00

Advance payment increase (decrease)

80,768.00

-23,915.00

Increase (Decrease) in Other Payable - Related Parties

-8,540.00

9,020.00

Deferred income tax liabilities increase (decrease)

10,985.00

30,333.00

Accrued pension liabilities increase (decrease)

-497.00

5,781.00

Deferred credits increase (decrease)

-654.00

4,651.00

Operating activities net cash inflow, outflow)

17,655.00

12,860.00

cash flows from investing

 

 

Acquisition of Investments Accounted for by Equity Method

-97,579.00

-140,549.00

Purchase of Property, Plant and Equipment

80.00

2,340.00

Proceeds from Disposal of Property, Plant and Equipment

-2,273.00

-1,498.00

Decrease (Increase) in Refundable Deposits

-418.00

-2,600.00

Other receivables - participants increase or decrease

-68,221.00

-47,847.00

Restricted assets increase or decrease

8,166.00

-2,992.00

Increase in Deferred Charges

-3,621.00

-3,676.00

Purchase of real estate investment cost

-133,227.00

0.00

Other assets increase or decrease

-32,773.00

-22,525.00

Purchase of Intangible Assets

-329,866.00

-219,347.00

Net Cash Provided by (Used in) Investing Activities

 

 

Cash Flows from Financing Activities

263,196.00

38,122.00

Increase (Decrease) in Short-term Loans

44,996.00

0.00

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

55,961.00

-72,161.00

In the margin increase or decrease

0.00

-720.00

Cash dividends

-53,321.00

-79,732.00

increment of cash

0.00

272,250.00

Storage stocks to buy back the cost

-6,982.00

0.00

Exercise of Employee Stock Options

303,850.00

157,759.00

Net Cash Provided by (Used in) Financing Activities

-8,361.00

-48,728.00

Net Increase (Decrease) in Cash and Cash Equivalents

76,785.00

125,513.00

Cash and Cash Equivalents, Beginning of year

68,424.00

76,785.00

Cash and Cash Equivalents, End of year

 

 

Supplemental Cash Flow Information

18,425.00

14,398.00

Capitalized interest

-2,427.00

-257.00

Do not contain capitalization interest paid in current period of interest

15,998.00

14,141.00

Interest Paid- Excluding Capitalized Interest

4,115.00

0.00

Does not affect the cash flow of investment and financing activities

 

 

Due within one year of long-term liabilities

69,170.00

55,570.00

Inventory turns column fixed assets

0.00

1,166.00

cumulative translation adjustment

-30,958.00

50,272.00

 

 

Bankers

 

Subject declined to disclose its bank details; from other source we cannot obtain the relevant information, either.

 

 

Public Record

 

Mortgage

 

Case Type:

Chattel Mortgage

Certificate No.:

081792

Debtor Name:

Fu Chun Shin Machinery Manufacture Co., Ltd.

Document Number:

09305198770

Date of Registration:

2004/11/29

 

Lawsuit

 

1

Trial Number:

2008,Nanjian,1394

Date of Trial:

2008-12-31

Reason:

Repay The Loan

2

Trial Number:

2006,Nanjianbu,136

Date of Trial:

2006-12-1

Reason:

Repay The Deposit

 

 

Interview Details

 

Department

Sales Department

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.13

UK Pound

1

Rs.101.53

Euro

1

Rs.85.41

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.