MIRA INFORM REPORT

Report Date :

28.12.2013

IDENTIFICATION DETAILS

Name :	SUN YARN TEXTILE CO., LTD.
Registered Office :	No.697, Sec.2, Chang Tsao Rd., Homei Township, Chang Hwa County 508
Country :	Taiwan
Date of Incorporation :	07.04.1969
Com. Reg. No.:	59214014
Legal Form :	Joint Stock Company
Line of Business :	Engaged in producing cotton and blended yarn for Denim, Curtains, home textile
No. of Employees :	About 200 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 :	Slow but Correct
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 – September 30th, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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:	Sun Yarn Textile Co., Ltd.
Supplied Name:	SUN YARN TEXTILE CO LTD.
Trading Address:	No.697, Sec.2, Chang Tsao Rd., Homei Township, Chang Hwa County 508, Taiwan, R.O.C.
Supplied Address:	697, Chang Tsao Rd., Sec 2, Homei, Chang Hua
Telephone Number:	+886-4-752-5121
Fax Number:	+886-4-761-4412
E-mail:	sy@sunyarn.com.tw

Notes: The exact name and address are as above.

Credit Summary

Credit Opinion:

Business connections are permissible.

Company Identification Details

Registered Name:	Sun Yarn Textile Co., Ltd.
Registered Address:	No.697, Sec.2, Chang Tsao Rd., Homei Township, Chang Hwa County 508, Taiwan, R.O.C.
Date of Foundation:	1969-4-7
Registration Number:	59214014
Registry:	MOEA Central Office
Registered Capital:	NTD 190,400,000 (USD 6,378,400) (As of 2013.12, 1 NTD = 0.0335 USD)
Paid-up Capital:	NTD 190,400,000 (USD 6,378,400)
Legal Representatives:	Zongxian Wei
Legal Form:	Joint Stock Company
Principal Activities:	Engaged in producing cotton and blended yarn for Denim, Curtains, home textile
Staff:	About 200 Employees
Listed at Stock Exchange:	No
Date of Last Annual Return:	2012-6-1

History

Subject was incorporated on 1969-4-7 with registered number59214014 as Joint Stock Company in Taiwan.

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

(Unit: NTD)

Name	Subscription Amount
Zongxian Wei	1,001,414
Jingxiang Fang	319,377
Hexiong Lin	318,137
Xueling Deng	50,000
Zengmao Lin	186,000
Zonghui Wei	1,956,791
Zongzhe Wei	913,619
Baichuan Huang	57,700
Lingtian Wei	190,400
Zengguang Lin	129,082

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

Subsidiaries & Branches

Factories

1
Address:	No.697, Sec.2, Chang Tsao Rd., Homei Township, Chang Hwa County 508, Taiwan, R.O.C.
Date of Foundation:	1969-1-1
Date of Registration:	1969-1-1
Factory Registration Number:	99649083
Factory Manager:	Zongxian Wei
Status:	In Production
Date of Last Annual Return:	2004-12-28
Major Products:	111 Spinning 112 Weaving
2
Name:	Sioushuei Factory
Address:	134. Minjhu St., Sioushuei, Changhwa, Taiwan
Date of Foundation:	1969-1-1
Date of Registration:	1974-5-10
Factory Registration Number:	99649855
Factory Manager:	Zongxian Wei
Status:	In Production
Date of Last Annual Return:	2012-10-6
Major Products:	111 Spinning 112 Weaving
Telephone Number	+886-4-769-2510
Fax Number	+886-4-769-4215

Office

Name	Taipei Office
Address	27. 2F., Yanping N. Road, Sec.1, Taipei, Taiwan
Telephone Number	+886-2-2555-3469
Fax Number	+886-2-2558-3825

Personnel Information

Core Management

Directors

1
Name	Zongxian Wei
Position	Board Director
Date of Appointment	1986-8-1
2
Name	Jingxiang Fang
Position	Director
3
Name	Hexiong Lin
Position	Director
4
Name	Xueling Deng
Position	Director
5
Name	Zengmao Lin
Position	Director
6
Name	Zonghui Wei
Position	Director
7
Name	Zongzhe Wei
Position	Director
8
Name	Baichuan Huang
Position	Director
9
Name	Lingtian Wei
Position	Supervisor
10
Name	Zengguang Lin
Position	Supervisor

Personnel Structure

Total Employees

About 200 Employees

Operation Information

Offices & Factories

	Headquarters
Add	No.697, Sec.2, Chang Tsao Rd., Homei Township, Chang Hwa County 508, Taiwan, R.O.C.

Production Information

l Subject is a manufacturer of textiles

l It is introduced that subject has two factories in Taiwan for production.

Annual production capacity of OE yarn

OE yarn

180,000 bales (32,659,200 KGS)

Purchase Information

l The registered activities of subject:

Business Code	Details
--	Operation of spinning, weaving and other textiles printing and dyeing business.
--	Import and export of above products
--	Processing and sales of above products
--	Leasing of frozen storage, processing of food, operating of supermarket, sales of garment computer equipment
--	Operation and reinvestment of above

l It is introduced that subject’s raw materials, equipment are both at home and abroad.

Materials sources:

	Internal		Overseas
Rate	10%		90%
Material	Comber Acrylic	Polyester Rayon	Cotton	Comber

Equipment Sources:

Internal	Overseas
Blow room Others Ex：electric forklift、computers & machine parts	Blow Room Comber	Blow Room Comber

Sales Information

l The subject is mainly engaged in sales of textiles

l It is introduced that subject’s selling territory is in Southeast Asia, Europe, America, and other Asian countries

l It is introduced that subject’s major customers are manufacturers of cloth, garments

l It is introduced that subject’s sales revenue is about USD 46,000,000 last year.

Major Products

Product	Application
Cotton Yarn	Denim, Gery Cloth, Curtains
Slub Yarn	Denim
Rayon Yarn	Clothing For Lady
Polyester Yarn	Table Cloth, Umbrellas, Curtains
Blended Yarn	Back Cloth For Brushing
Acrylic Yarn	Sweaters

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase (Taiwan and Mainland, China)

Product	Payment Terms	Proportion
Machines and raw materials	COD, CBD, etc	100%

Foreign Purchase

Product	Payment Terms	Proportion
Machines and raw materials	CBD, etc	100%

Sales

Domestic Markets

Product	Sales Terms	Proportion
Textiles and etc.	COD, CBD, etc	100%

Export

Product	Sales Terms	Proportion
Textiles and etc.	CBD, etc	100%

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

Bankers

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

Public Record

Mortgage

Case Type:	Certificate No.:	Debtor Name:	Document Number:	Date of Registration:	Date of Alteration:	Status:
Chattel Mortgage	042487	Sun Yarn Textile Co., Ltd.	098634	1993/5/24		Paid Off
Chattel Mortgage	046165	Sun Yarn Textile Co., Ltd.	188876	1994/10/11		Paid Off
Chattel Mortgage	046213	Sun Yarn Textile Co., Ltd.	189060	1994/10/17		Paid Off
Chattel Mortgage	049748	Sun Yarn Textile Co., Ltd.	694438	1995/12/19		Paid Off
Chattel Mortgage	052027	Sun Yarn Textile Co., Ltd.	472641	1996/10/1		Paid Off
Chattel Mortgage	052030	Sun Yarn Textile Co., Ltd.	472639	1996/10/1		Paid Off
Chattel Mortgage	056137	Sun Yarn Textile Co., Ltd.	995923	1997/11/27	1998/1/3	Paid Off
Chattel Mortgage	062314	Sun Yarn Textile Co., Ltd.	856875	1999/6/23		Paid Off
Chattel Mortgage	066799	Sun Yarn Textile Co., Ltd.	572745	2000/7/20		Paid Off
Chattel Mortgage	069716	Sun Yarn Textile Co., Ltd.	09005071410	2001/3/20		註銷
Chattel Mortgage	072429	Sun Yarn Textile Co., Ltd.	09105050290	2002/1/31		Paid Off
Chattel Mortgage	078041	Sun Yarn Textile Co., Ltd.	09200504270	2003/12/17		Paid Off
Chattel Mortgage	083013	Sun Yarn Textile Co., Ltd.	09405091700	2005/3/29		Paid Off
Chattel Mortgage	086529	Sun Yarn Textile Co., Ltd.	09505083120	2006/3/7		Paid Off
Chattel Mortgage	087961	Sun Yarn Textile Co., Ltd.	09505137400	2006/7/17		Paid Off
Chattel Mortgage	104563	Sun Yarn Textile Co., Ltd.	10030365660	2011/8/29		Paid Off

Lawsuit

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

Interview Details

Name	Ms. Liu
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.06
UK Pound	1	Rs.102.03
Euro	1	Rs.85.27

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%)

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