MIRA INFORM REPORT

 

 

Report Date :

29.01.2013

 

IDENTIFICATION DETAILS

 

Name :

ZIG SHENG INDUSTRIAL CO., LTD.

 

 

Registered Office :

No.60, Dongwanshou Rd., Xinling Vil., Gueishan Township, Taoyuan County 33355

 

 

Country :

Taiwan

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

18.08.1969

 

 

Com. Reg. No.:

43295237

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacture and trade of nylon chip and the related products.

 

 

No. of Employees :

About 1,300 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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

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:

ZIG SHENG INDUSTRIAL CO., LTD.

Supplied Name:

ZIG SHENG INDUSTRIAL CO LTD.

Trading Address:

2F., No.70, Xining N. Rd., Datong Dist., Taipei City 10342, Taiwan, R.O.C

Supplied Address:

2FL 70 Shi Ning N Rd. 43295237, Taipei

Telephone Number:

+886-2-25557151

Fax Number:

+886-2-25505652

E-mail:

teana_yen@zigsheng.com

Notes:   The supplied address is incomplete, and the exact address is as above.

 

 

Company Identification Details

 

Registered Name:

ZIG SHENG INDUSTRIAL CO., LTD.

Registered Address:

No.60, Dongwanshou Rd., Xinling Vil., Gueishan Township, Taoyuan County 33355, Taiwan (R.O.C.)

Date of Foundation:

1969-8-18

Registration Number:

43295237

Registry:

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

Registered Capital:

NTD 8,000,000,000 (USD 271,202,000)

(As of 2013.1, 1 NTD = 0.03390 USD)

Paid-up Capital:

NTD 6,057,063,170 (USD 205,336,000)

Legal Representatives:

Shouchun Ye

Legal Form:

Joint Stock Company

Principal Activities:

Manufacture and trade of nylon chip and the related products.

Staff:

About 1,300 Employees

Listed at Stock Exchange:

Yes (Public, TPE:1455) 

Date of Last Annual Return:

2012-8-21

 

 

History

 

Subject was incorporated on 1969-8-18 with registered number 43295237 as Joint Stock Company in Taiwan.

Subject was listed on Taiwan Stock Exchange on 1993-10-07

 

Awards

Year

Awards

2009

Blue chip importer and exporter

2010

Blue chip importer and exporter

2011

Blue chip importer and exporter

 

Standard of Blue chip importer and exporter

Unit: USD

Year

Amount

2009

15,000,000

2010

20,000,000

2011

22,000,000

 

 

Shareholders

 

           

Name

Subscription Shares

Shouchun Ye

25,438,560

Baihuang Su

48,772,728

Qinglang Su

16,044,407

Zonghao Ye

12,368,626

Yisheng You

1,557,279

Qingyuan Su

48,527,118

Guansheng Investment Co., Ltd

7,907,476

 

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

 

 

Subsidiaries & Branches

 

Factories:

1

Name

KWEI SHAN 1st Factory district

Address:

No.60, Dongwanshou Rd., Xinling Vil , Gueishan Township, Taoyuan County 33355, Taiwan

Tel

+886-3-3295267

Fax

+886-3-3295270

2

Name

KUAN YIN 2nd Factory district

Address:

No. 522, Sec. 1, Chenggong Rd., Guanyin Township, Taoyuan County 32844, Taiwan

Tel

+886-3-4838961

Fax

+886-3-4837154

3

Name

KUAN YIN 3rd Factory district

Address:

No. 506, Sec. 1, Chenggong Rd., Guanyin Township, Taoyuan County 32844, Taiwan

Tel

+886-3-4832267

Fax

+886-3-4837594

4

Name

DAY UAN Factory district

Address:

No.17, Dagong Rd., Dayuan Township, Taoyuan County 33759, Taiwan

Tel

+886-3-3869910

Fax

+886-3-3869120

 

 

Personnel Information

 

Core Management

 

Directors

1

Name

Shouchun Ye

Position

Board of Chairman

2

Name

Baihuang Su

Position

Director

3

Name

Qinglang Su

Position

Director

4

Name

Zonghao Ye

Position

Director

5

Name

Yisheng You

Position

Director

6

Name

Qingyuan Su

Position

Supervisor

7

Name

Guansheng Investment Co., Ltd

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 1,300 Employees

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

2F., No.70, Xining N. Rd., Datong Dist., Taipei City 10342, Taiwan, R.O.C

 

Production Information

 

Subject is a manufacturer of nylon chips and the related products with the production activities

 

Purchase Information

 

The registered activities of subject:

Business Code

Details

1

Process , manufacture and trade of nylon products

2

Manufacture and trade of chemical products

3

Manufacture and trade of polyester products

ZZ99999

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

 

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

 

Sales Information

 

Subject is mainly engaged in manufacturing and trading of nylon chip and the related products.

Subject introduced that its major products sold as following:

 

Product

Engineering Plastic

CPL

 

E.P. Grade Nylon 6 Chip

 

Composite Materials

Nylon Fiber

Spinning Grade Nylon 6 Chip

 

Nylon 6 Filament

 

Nylon Textured Yarn

Polyester Fiber

PTA EG

 

Polyester Chip

 

Polyester Filament

 

Polyester Textured Yarn

 

Others

Subject’s selling territory covers all over the world, such as U.S.A, Europe and so on.

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Subject declined to disclose the purchase settlements information, and from other sources, we couldn’t obtain the information, either.

 

Sales

 

Domestic Markets

Product

Sales Terms

Proportion

Nylon chip and the related products

COB, CBD, etc

100%

 

Export

Product

Sales Terms

Proportion

Nylon chip and the related products

L/C , T.T, etc.   

100%

Notes: Subject’s settlement for export is generally in USD

 

 

Balance Sheet

 

Unit: NTD /000

 

2012-9-30

2011-9-30

 Assets

 

 

        Current Assets

 

 

          Cash and cash equivalents

29,729.00

14,193.00

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

378,262.00

578,913.00

          Notes receivable - net

404,984.00

305,925.00

          Notes receivable - related parties - net

0.00

18.00

          Accounts receivable - net

1,172,776.00

1,200,064.00

          Accounts receivable - related parties - net

75,408.00

93,027.00

          Other receivables

66,400.00

92,379.00

          Other financial assets - current

0.00

2.00

          Inventories

2,703,372.00

4,104,828.00

          Other prepayments

33,524.00

33,063.00

          Other current assets

21,360.00

67,635.00

            Current assets

4,885,815.00

6,490,047.00

        Funds and Investments

 

 

          Financial assets carried at cost - non current

151,222.00

151,222.00

            Funds and long-term investments

151,222.00

151,222.00

        Fixed Assets

 

 

        Cost

 

 

          Land

1,561,421.00

1,884,415.00

          Buildings and structures

2,799,159.00

2,377,112.00

          Machinery and equipment

7,791,111.00

7,049,699.00

          Transportation equipment

69,650.00

67,420.00

          Other facilities

177,502.00

164,512.00

          Revaluation increment

480,571.00

480,574.00

          Cost and revaluation increment

12,879,414.00

12,023,732.00

          Accumulated depreciation

-5,731,630.00

-5,301,970.00

          Construction in process and prepayment for equipments

331,822.00

674,605.00

            Fixed assets

7,479,606.00

7,396,367.00

        Intangible Assets

 

 

          Deferred pension cost

0.00

0.00

            Intangible assets

0.00

0.00

        OtherAssets

 

 

            Rental assets

551,414.00

578,598.00

          Guarantee deposits paid

2,157.00

3,215.00

          Deferred charges

50,102.00

36,386.00

          Deferred income tax assets - non current

142,032.00

31,585.00

            Other assets

745,705.00

649,784.00

            Assets

13,262,348.00

14,687,420.00

        Liabilities and Stockholders' Equity

 

 

        Liabilities

 

 

        Current Liabilities

 

 

          Short-term borrowings

1,106,587.00

3,881,245.00

          Short-term notes and bills payable

899,649.00

649,658.00

          Notes payable

254,866.00

222,479.00

          Notes payable - related parties

27.00

0.00

          Accounts payable

897,354.00

1,155,468.00

          Accounts payable - related parties

312.00

315.00

          Income tax payable

439.00

103,879.00

          Accrued expenses

267,989.00

252,882.00

          Other payables

68,448.00

161,949.00

          Advance receipts

136,407.00

83,231.00

          Long-term liabilities - current portion

0.00

0.00

          Other current liabilities

739.00

893.00

            Current liabilities

3,632,817.00

6,511,999.00

        Long term Liabilities

 

 

          Long-term borrowings

2,099,606.00

699,794.00

            Long-term liabilities

2,099,606.00

699,794.00

        Reserves

 

 

          Reserve for land revaluation increment tax

137,395.00

137,395.00

            Reserves

137,395.00

137,395.00

        Other Liabilities

 

 

          Pension reserve / accrued pension liability

210,270.00

173,100.00

          Guarantee deposits received

19,335.00

19,335.00

            Other liabilities

229,605.00

192,435.00

            Liabilities

6,099,423.00

7,541,623.00

        Stockholders' Equity

 

 

        Capital

 

 

          Common stock

6,057,063.00

5,187,092.00

        Capital Surplus

 

 

          Capital surplus - additional paid-in capital

377,227.00

352,927.00

          Capital surplus - treasury stock transactions

43,700.00

43,700.00

          Capital surplus - long-term equity investments

32,107.00

32,107.00

            Capital surplus

453,034.00

428,734.00

        Retained Earnings

 

 

          Legal reserve

127,833.00

114,575.00

          Special reserve

4,606.00

9,747.00

          Unappropriated retained earnings

174,258.00

1,064,659.00

            Retained earnings

306,697.00

1,188,981.00

        Stockholders' Equity and Other adjustmen

 

 

          Cumulative translation adjustments

-4,606.00

-4,606.00

          Net loss not recognized as pension cost

0.00

-5,141.00

          Unrealized Revaluation Increment

350,737.00

350,737.00

            Equity adjustments

346,131.00

340,990.00

          Stockholdersˉ equity

7,162,925.00

7,145,797.00

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

0.00

0.00

          

0.00

0.00

 

 

Profit and Loss Accounts

 

Unit: NTD /000

 

2012-1-1

To 2012-9-30

2011-1-1

To 2011-9-30

          Sales

13,012,327.00

14,814,634.00

          Sales returns

9,443.00

21,332.00

          Sales discounts and allowances

19,558.00

7,757.00

          Sales

12,983,326.00

14,785,545.00

          Operating income

12,983,326.00

14,785,545.00

          Operating costs

12,874,758.00

13,736,049.00

          Gross profit (loss) from operations

108,568.00

1,049,496.00

          Selling expense

185,555.00

182,580.00

          General and administrative expenses

114,722.00

89,321.00

          Research and development expenses

51,501.00

55,723.00

          Operating expenses

351,778.00

327,624.00

          Operating income (loss)

-243,210.00

721,872.00

        Non-Operating Income

 

 

          Interest income

61.00

24.00

          Dividends

38,001.00

36,413.00

          Investment income

38,001.00

36,413.00

          Gains on disposal of fixed assets

2,643.00

560.00

          Gains on sale of investments

8,976.00

17,489.00

          Foreign exchange gains

5,056.00

71,405.00

          Rent income

38,951.00

40,535.00

          Revaluation gain on financial assets

13,031.00

0.00

          Miscellaneous income

37,075.00

32,783.00

          Non-operating revenues and gains

143,794.00

199,209.00

        Non-Operating Expenses

 

 

          Interest expense

51,918.00

29,282.00

          Loss on disposal of fixed assets

4,636.00

0.00

          Foreign exchange losses

0.00

0.00

          Revaluation loss on financial assets

0.00

15,350.00

          Miscellaneous disbursements

28,659.00

28,186.00

          Non-operating expenses and losses

85,213.00

72,818.00

          Income from continuing operations before income tax

-184,629.00

848,263.00

          Income tax expense (benefit)

-40,679.00

97,287.00

          Income from continuing operations

-143,950.00

750,976.00

          Net income (loss)

-143,950.00

750,976.00

        Primary Earnings per Share

 

 

          Primary earnings per share

-0.25

1.45

        Diluted earnings per share

 

 

 

Bankers

 

The bankers’ information is not available from the subject or other sources.

 

 

Public Record

 

Mortgage

 

No chattel mortgage record of subject has been found within the recent 3 months.

 

Lawsuit

 

Lawsuit Number:

2013-1-29

Lawsuit Date:

2008-3-20

Lawsuit Cause:

Service by publication

 

 

Interview Details

 

Name

Ms. Xie

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.89

UK Pound

1

Rs.84.92

Euro

1

Rs.72.51

 

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.