MIRA INFORM REPORT

 

 

Report Date :

21.06.2013

 

IDENTIFICATION DETAILS

 

Name :

CHAHENG PRECISION CO., LTD.

 

 

Registered Office :

No.9, Luke 10th Rd., Luzhu Dist., Kaohsiung City 821

 

 

Country :

Taiwan

 

 

Date of Incorporation :

24.10.1987

 

 

Com. Reg. No.:

22540430

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and sales of aircraft and its related components.

 

 

No. of Employees :

About 260 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 4.0%. 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:

Chaheng Precision Co., Ltd.

Supplied Name:

CHAHENG PRECISION CO

Trading Address:

No.9, Luke 10th Rd., Luzhu Dist., Kaohsiung City 821, Taiwan (R.O.C.)

Supplied Address:

9, Lu Ko 10th Rd., Kaohsiung City 82151 Taiwan

Telephone Number:

+886-7-695-5598

Fax Number:

+886- 7-695-5589

Notes: The exact name and address are as above.

 

Credit Summary

 

Credit Opinion:

Business connections are permissible.

 

Company Identification Details

 

Registered Name:

Chaheng Precision Co., Ltd.

Registered Address:

No.9, Luke 10th Rd., Luzhu Dist., Kaohsiung City 821, Taiwan (R.O.C.)

Date of Foundation:

1987-10-24

Registration Number:

22540430

Registry:

Southern Taiwan Science Park Administration

Registered Capital:

NTD 500,000,000 (USD 16,750,000)

(As of 2013.6, 1 NTD = 0.0335 USD)

Paid-up Capital:

NTD 336,060,450 (USD 16,750,000)

Legal Representatives:

Yizhen Ji

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sales of aircraft and its related components.

Staff:

About 260 Employees

Listed at Stock Exchange:

No

Date of Last Annual Return:

2013-3-21

 

History

 

Subject was incorporated on 1987-10-24 with registered number 22540430 as Joint Stock Company in Taiwan.

 

Shareholders

 

Name

Subscription Shares

Yizhen Ji

1,860,000         

 

Menghuang You

 

1,117,292

 

Jialing Su

2,000

Changing Investment Limited (Liberal Translation)

7,836,057

Thunder Power Co, Ltd

2,699,997

Xiongsheng Investment Limited (Liberal Translation)

445,466

Blade Aerospace Limited

5,313,481

Yuqing Zhang

915,484

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

 

Subsidiaries & Branches

 

Branch Companies

Name

Chaheng Precision Co., Ltd. Benjhou Industrial Park Branch

Former Name

Chaheng Precision Co., Ltd. Kaohsiung Science Park Branch

Registered Address

No.41, Bengong 1st Rd., Gangshan Dist., Kaohsiung City 820, Taiwan (R.O.C.)

Registration Number

13111845

Date of Registration

2008-4-30

Status

Live Company

Manager Name

Yizhen Ji

Date of Last Annual Return

2010-7-20

Telephone Number:

+886-7-623-2576

Fax Number:

+886-7-695-5589

Description

The company is mainly engaged in manufacturing of aero-engine fan blades.

 

Factories

Name

Benjhou 2nd Factory

Address

No.30, Bengong W. Rd., Gangshan Dist., Kaohsiung City 820, Taiwan (R.O.C.

Description

The factory is mainly in engaged in aerospace precision stamping and forming business.

 

 

Personnel Information

 

Core Management

 

Directors

1

Name

Yizhen Ji

Position

Board Chairman

2

Name

Menghuang You

Position

Director

3

Name

Jialing Su

Position

Director

4

Name

Changing Investment Limited (Liberal Translation)

Position

Director

5

Name

Thunder Power Co, Ltd

Position

Director

6

Name

Xiongsheng Investment Limited

Position

Director

7

Name

Lingqian Zeng

Position

Supervisor

8

Name

Wuxiong Wu

Position

Supervisor

9

Name

Yuqing Zhang

Position

Supervisor

Personnel Structure

 

Total Employees

About 260 Employees

 

 

Operation Information

Offices & Factories

 

 

Headquarters

Add

No.9, Luke 10th Rd., Luzhu Dist., Kaohsiung City 821, Taiwan (R.O.C.)

 

Production Information

 

l         The subject is a manufacturer of aircraft and its related components.

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

l         It is introduced that subject has obtained following certifications:

 

Quality System Accreditation

AFNOR ISO9002 certified

AFNOR AS9100 certified

AIDC S-200 certified

GE Aviation S-1000 certified

Rolls-Royce CQC103 certified

Snecma GRP0087 certified

Honeywell ACS certified

Sumitomo certified

Eaton certified

Ametek certified

Woodward certified

33 Aerospace Special Process Certifications

Blue Etch, BEA Cleaning

Varnish, DFL Coating

Degreasing

Pickling

Shot Peening

FPI

Plasma Coating -WC 17%

Cu, Ni, In Coating

Arcwire Coating

RTV

Aluminum-Silicon And Polyester Coating

T400 Coating

T800 Coating

Vacuum Heat Treatment

Brazing

Precipitation Hardening

Stress Relieving

TIG Welding

Laser Welding

CNC EDM

Fast Hole EDM

Wire Cut

Hole Making

Metallographic Optical

Hardness Test

Plasma Deposit Examination

Macrographic Inspection

Tensile Test

Erosion Testing

Wet Chemical Analysis

X-Ray

Laser Cutting

Laser Marking

 

Purchase Information

 

l         The registered activities of subject:

Business Code

Details

CB01010

Manufacturing of machinery and equipment.

CB01990

Manufacturing of other machinery.

CC01080

Manufacturing of electronic components.

CD01060

Manufacturing of aircraft and its components.

CQ01010

Manufacturing of molds.

F401010

International trading business.

Researching, developing, manufacturing, producing and sales of following products:

1

Aerospace precision ring components.

2

Aerospace air-foil blade.

3

Sideline in international trading business of above related products.

 

l         It is introduced that subject purchases raw materials, components, equipment and etc both in domestic and overseas markets.

 

Sales Information

 

l         The subject is mainly engaged in sales of aircraft and its related components.

l         It is introduced that subject’s selling territory include Asia, USA, Canada, Europe and etc.

l         It is introduced that subject’s major customers are manufactures of aircrafts and etc.

l         It is introduced that subject’s products are applied to airplane, airbus, Boeing and etc.

l         It is introduced that subject is the second supplier of GE Aviation in Taiwan.

 

Major Products

1

Aero-engine Fan Blade

2

Aero-engine Compressor Assembly

3

Aero-engine OGV Diffuser

4

Aero-engine Combustor Assembly

5

Super Alloy Stamping & Forming Assemblies

6

Aero-engine Assemblies & Others

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

 

 

Settlements

 

Purchase

 

Domestic Purchase

Product

Payment Terms

Proportion

Raw materials, components, equipment and etc

COD, CBD and etc

100%

 

Foreign Purchase

Product

Payment Terms

Proportion

Raw materials, components, equipment and etc

CBD and etc

100%

Sales

 

Domestic Markets

Product

Sales Terms

Proportion

Aircraft and its related components.

CBD and etc

100%

 

Export

Product

Sales Terms

Proportion

Aircraft and its related components

CBD and 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. Su 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

 

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. Su


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.70

UK Pound

1

Rs.92.22

Euro

1

Rs.79.18

 

 

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.