MIRA INFORM REPORT

 

 

 

 

Report Date :

26.06.2013

 

IDENTIFICATION DETAILS

 

Name :

YC INOX CO., LTD.

 

 

Formerly Known as:

Yeun Chyang Industrial Co., Ltd.

 

 

Registered Office :

No.270, Sec.4, Jungshan Rd., Shijou Shiang, Chang-Hwa Hsien

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

31.01.1973

 

 

Com. Reg. No.:

59068700

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturer and sales of stainless steel products

 

 

No. of Employees :

About 780 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

 

Maximum Credit Limit : 

USD 2,000,000

 

 

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:

YC Inox Co., Ltd.

Former Name:

Yeun Chyang Industrial Co., Ltd.

Supplied Name:

YC Inox Co Ltd

Trading Address:

No.270, Sec.4, Jungshan Rd., Shijou Shiang, Chang-Hwa Hsien, Taiwan, R.O.C.

Supplied Address:

No 270 Sec 4 Jungshan Rd Shijou Chang HWa

Telephone Number:

+886-4-889-9666

Fax Number:

+886-4-889-9783

E-mail:

ys@ycinox.com

Notes: Subject’s exact name and address are as above.

 

 

Credit Summary

 

Credit Rating:

Maximum credit USD 2,000,000

Credit Opinion:

Business connections are permissible.

 

 

Company Identification Details

 

Registered Name:

YC Inox Co., Ltd.

Registered Address:

No.270, Sec.4, Jungshan Rd., Shijou Shiang, Chang-Hwa Hsien, Taiwan, R.O.C.

Date of Foundation:

1973-1-31

Registration Number:

59068700

Registry:

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

Registered Capital:

NTD 4,600,000,000 (USD 156,400,000)

(As of 2013.06, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 3,701,188,570 (USD 125,840,411)

Legal Representatives:

Qingke Zhang

Legal Form:

Joint Stock Company

Principal Activities:

Manufacture and sales of stainless steel products

Staff:

About 780 Employees

Listed at Stock Exchange:

Yes; Stock Symbol: 2034

Date of Last Annual Return:

2013-4-22

 

 

History

 

Subject was incorporated on 1973-1-31 with registered number 59068700 as Joint Stock Company in Taiwan.

 

Subject was listed on Taiwan Stock Exchange on 2001-9-17.

 

Change of Name

Former Name

Yeun Chyang Industrial Co., Ltd.

Current Name

YC Inox Co., Ltd.

 

 

Shareholders

 

Name

Subscription Shares

Taiqiang Investment Co., Ltd (Literal Translation)

50,031,539       

 

Jinyu Zhang

 

4,332,935

 

Lielin Zhan

260,000

Liangzhi Zhang

219,017

Songlin Shi

1,958,000

Tianshang Xie

3,583,098

Zuoxiang Xu

50,000

 

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

 

Subsidiaries & Branches

Factories

1

Name:

Shijou Factory

Address:

No.270, Sec.4, Jungshan Rd., Shijou Shiang, Chang-Hwa Hsien, Taiwan, R.O.C.

2

Name:

Puoshing Factory

Address:

No. 33, Sec. 4, Yuanlu Rd., Puoshing, Chang-Hwa, Taiwan

Telephone Number:

+886-4-829-2226

Fax Number:

+886-4-829-2741

3

Name:

Douliou Factory

Address:

No.29, Ke-jia Rd., Douliou City, Yunlin County 640, Taiwan

Telephone Number:

+886-5-551-1100

Fax Number:

+886-5-551-1133

Offices

1

Name:

Taipei Office

Address:

4F.-2, No.88, Jhouzih St., Neihu District, Taipei City 114, Taiwan

Telephone Number:

+886-2-2657-5999

Fax Number:

+ 886-2-2657-3666

2

Name:

Kaohsiung Office

Address:

2F., No. 293, Jhongjheng Rd., Niaosong , Kaohsiung, Taiwan

Telephone Number:

+886-7-733-5568

Fax Number:

+886-7-733-5633

 

 




Personnel Information

 

Core Management

Directors

1

Name

Qingke Zhang

Position

Board Chairman

2

Name

Jinpeng Zhang

Position

Director

3

Name

Jinyu Zhang

Position

Director & Manager

Date of Appointment

1999-10-25

4

Name

Lielin Zhan

Position

Director

5

Name

Liangzhi Zhang

Position

Director

6

Name

Songlin Shi

Position

Director

7

Name

Tianshang Xie

Position

Supervisor

8

Name

Zuoxiang Xu

Position

Supervisor

Personnel Structure

Total Employees

About 780 Employees

 

 

Operation Information

 

Offices & Factories

 

Headquarters

Add

No.270, Sec.4, Jungshan Rd., Shijou Shiang, Chang-Hwa Hsien, Taiwan, R.O.C.

Production Information

l         Subject is engaged in manufacture of stainless steel products.

l         It is introduced that subject has three factories (total area is about 170,000 square meters) in Taiwan for production.

l         Subject obtained the certifications of JIS MARK, ISO 14001, OHSAS 18001, ISO 9002 and TOSHMS, etc.

l         Subject’s monthly production capacity (end of 2012) is as followed for reference.

Product

Monthly Production Capacity

Stainless Steel Plate

26,000 metric ton

Stainless Steel Pipe

10,000 metric ton

Purchase Information

l         The registered activities of subject:

Business Code

Details

CA01050

Steel secondary processing industry

CA03010

Heat treatment industry

CA04010

Surface treatment

E599010

Piping engineering

F106010

Wholesales of hardware

F401010

International Trading Business

ZZ99999

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

l         Subject purchases both at home and abroad and it is introduced that the steel materials are mainly purchased from steel mills in Taiwan.

 

Sales Information

l         The subject is mainly engaged in sales of stainless steel products.

l         Subject’s sales regions include Asia, Europe, America, Africa and Australia, etc.

l         Subject’s products are applied in industries such as chemical, construction, food, machinery, environment protection, fire fighting and telecommunication, as well as the manufacture of doors, windows and shelves, etc.

l         Subject’s major customers are Chung Hsin Electric & Machinery Mfg. Corp. Ltd., CTCI Corporation, Pinacle Stainless Steel Inc., and Toyota Argentina SA., etc.

Major products sold

1

 Stainless Steel Coil

2

 Stainless Steel Sheet

3

Stainless Steel Welded Pipe

4

 Stainless Steel Welded Tube

5

 Stainless Steel Angles

6

 Stainless Steel Flat Bar

7

Stainless Steel U Channel

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

Domestic Purchase

Product

Payment Terms

Proportion

Raw materials, etc

Credit Sales, Cash, T/T, etc

100%

Foreign Purchase

Product

Terms

Proportion

Raw materials, etc

T/T, L/C, etc

100%

 

Sales

Domestic Markets

Product

Terms

Proportion

Stainless steel products

Cash,, T/T, etc

100%

Export

Product

Terms

Proportion

Stainless steel products

T/T, L/C, etc

100%

 

Balance Sheet

 

Unit: NTD/000

 

2012-12-31

2011-12-31

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

437,808.00

472,922.00

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

7,629.00

6,183.00

Notes receivable - net

89,832.00

84,909.00

Accounts receivable - net

2,300,684.00

2,635,610.00

Other receivables

326,352.00

662,480.00

Inventories

4,666,172.00

5,352,743.00

Other prepayments

26,070.00

17,551.00

Other current assets

24,735.00

32,382.00

Current assets

7,879,282.00

9,264,780.00

Funds and Investments

 

 

Financial assets carried at cost - non current

276,958.00

187,444.00

Equity investments under equity method

116,118.00

97,144.00

Investments

116,118.00

97,144.00

Funds and long-term investments

393,076.00

284,588.00

Fixed Assets

 

 

Cost

 

 

Land

1,087,269.00

1,087,269.00

Buildings and structures

597,960.00

564,836.00

Machinery and equipment

1,540,198.00

1,495,998.00

Transportation equipment

89,211.00

79,948.00

Office equipment

32,287.00

31,393.00

Leasehold improvements

4,380.00

4,380.00

Other facilities

183,592.00

173,504.00

Fixed assets cost

3,534,897.00

3,437,328.00

Accumulated depreciation

-1,244,852.00

-1,097,056.00

Construction in process and prepayment for equipments

142,526.00

39,242.00

Fixed assets

2,432,571.00

2,379,514.00

Intangible Assets

 

 

Deferred pension cost

0.00

0.00

Intangible assets

0.00

0.00

OtherAssets

 

 

Guarantee deposits paid

153.00

160.00

Deferred charges

32,723.00

35,758.00

Long-term notes and accounts receivable

0.00

0.00

Deferred income tax assets - non current

16,356.00

16,143.00

Other assets - other

92,352.00

91,660.00

Other assets

141,584.00

143,721.00

Assets

10,846,513.00

12,072,603.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

Short-term borrowings

1,673,556.00

2,864,509.00

Short-term notes and bills payable

99,968.00

99,875.00

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

0.00

0.00

Notes payable

268.00

722.00

Accounts payable

234,208.00

245,086.00

Income tax payable

0.00

92,749.00

Accrued expenses

186,697.00

219,033.00

Other payables

8,173.00

37,143.00

Advance receipts

208,265.00

225,189.00

Long-term liabilities - current portion

77,174.00

35,508.00

Other current liabilities

16,980.00

9,926.00

Current liabilities

2,505,289.00

3,829,740.00

Long term Liabilities

 

 

Bonds payable

0.00

0.00

Long-term borrowings

1,548,549.00

1,325,723.00

Long-term liabilities

1,548,549.00

1,325,723.00

Reserves

 

 

Reserve for land revaluation increment tax

890.00

890.00

Reserves

890.00

890.00

Other Liabilities

 

 

Pension reserve / accrued pension liability

125,119.00

125,199.00

Guarantee deposits received

173,780.00

184,932.00

Other liabilities - other

3,793.00

3,793.00

Other liabilities

302,692.00

313,924.00

Liabilities

4,357,420.00

5,470,277.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

3,701,189.00

3,701,189.00

Advance receipts for common stock

0.00

0.00

Capital Surplus

 

 

Capital surplus - additional paid-in capital

1,843,398.00

1,843,398.00

Capital surplus - stock option

0.00

0.00

Capital surplus - other

5,239.00

5,239.00

Capital surplus

1,848,637.00

1,848,637.00

Retained Earnings

 

 

Legal reserve

561,056.00

514,270.00

Special reserve

30,608.00

22,004.00

Unappropriated retained earnings

368,025.00

546,394.00

Retained earnings

959,689.00

1,082,668.00

Stockholders' Equity and Other adjustment

 

 

Net loss not recognized as pension cost

-29,227.00

-30,608.00

Unrealized gains (losses) on financial instruments

8,693.00

328.00

Unrealized Revaluation Increment

112.00

112.00

Equity adjustments

-20,422.00

-30,168.00

Stockholders - equity

6,489,093.00

(USD 220,629,162.00)

6,602,326.00

(USD 224,479,084.00)

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

0.00

0.00

 

0.00

0.00

(As of 2013.06, 1 NTD = 0.0340 USD)

 

 

Profit and Loss Account

 

Unit: NTD/000

 

2012

2011

Sales

24,278,258.00

(USD 825,460,772.00)

27,419,623.00

(USD 932,267,182.00)

Sales returns

18,903.00

19,619.00

Sales discounts and allowances

9,715.00

629.00

Sales

24,249,640.00

27,399,375.00

Operating income

24,249,640.00

27,399,375.00

Cost of sales

22,901,135.00

26,056,898.00

Operating costs

22,901,135.00

26,056,898.00

Gross profit (loss) from operations

1,348,505.00

1,342,477.00

Selling expense

816,438.00

730,537.00

General and administrative expenses

115,621.00

127,163.00

Operating expenses

932,059.00

857,700.00

Operating income (loss)

416,446.00

484,777.00

Non-Operating Income

 

 

Interest income

390.00

253.00

Income from long-term equity investments under the equity method

10,609.00

0.00

Dividends

492.00

214.00

Investment income

11,101.00

214.00

Gains on disposal of fixed assets

0.00

6,298.00

Gains on sale of investments

218.00

351.00

Foreign exchange gains

0.00

105,267.00

Revaluation gain on financial assets

1,446.00

0.00

Miscellaneous income

13,702.00

34,541.00

Non-operating revenues and gains

26,857.00

146,924.00

Non-Operating Expenses

 

 

Interest expense

42,463.00

50,794.00

Losses from long-term equity investments under the equity method

0.00

351.00

Investment loss

0.00

351.00

Loss on disposal of fixed assets

2,038.00

0.00

Foreign exchange losses

28,733.00

0.00

Revaluation loss on financial assets

0.00

3,667.00

Revaluation loss on financial liabilities

0.00

391.00

Miscellaneous disbursements

2,589.00

1,260.00

Non-operating expenses and losses

75,823.00

56,463.00

Income from continuing operations before income tax

367,480.00

575,238.00

Income tax expense (benefit)

46,316.00

107,376.00

Income from continuing operations

321,164.00

467,862.00

Cumulative effect of changes in accounting principle

0.00

0.00

Net income (loss)

321,164.00

(USD 10,919,576.00)

467,862.00

(USD 15,907,308.00)

Primary Earnings per Share

 

 

Primary earnings per share

0.87

1.26

Diluted earnings per share

 

 

Diluted earnings per share

0.87

1.26

 (As of 2013.06, 1 NTD = 0.0340 USD)

 

Cash Flows

 

Unit: NTD/000

 

2012

2011

Cash Flows from Operating Activities - Indirect Method

 

 

Net Income (Loss)

321,164.00

467,862.00

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

 

 

Depreciation Expense

166,598.00

168,027.00

Amortization Expense

8,098.00

9,684.00

Amortization of Discounts (Premiums) on Bonds Payable

0.00

1,628.00

Difference Between Net Pension Cost and Plan Contribution

1,300.00

4,160.00

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

0.00

0.00

Investment Loss (Income) Recognized under Equity Method

-10,609.00

351.00

Loss (Gain) on Disposal of Property, Plant and Equipment

2,038.00

-6,298.00

Property, Plant and Equipment Transferred to Expenses

0.00

0.00

Unrealized Revaluation Loss (Gain) on Financial Assets and Liabilities

-1,446.00

4,058.00

Changes in Operating Assets and Liabilities

 

 

Decrease (Increase) in Notes Receivable

-4,923.00

-42,788.00

Decrease (Increase) in Accounts Receivable

334,926.00

-170,801.00

Decrease (Increase) in Other Receivables

336,128.00

-214,541.00

Decrease (Increase) in Inventories

686,571.00

5,306.00

Decrease (Increase) in Other Prepayments

-8,519.00

238,941.00

Decrease (Increase) in Other Current Assets

-5,421.00

65,773.00

Decrease (Increase) in Deferred Tax Assets

12,855.00

-18,645.00

Increase (Decrease) in Notes Payable

-454.00

-31.00

Increase (Decrease) in Accounts Payable

-10,878.00

19,570.00

Increase (Decrease) in Income Tax Payable

-92,749.00

48,163.00

Increase (Decrease) in Accrued Expenses

-32,336.00

529.00

Increase (Decrease) in Other Payables

0.00

0.00

Increase (Decrease) in Receipts in Advance

-16,924.00

-33,675.00

Increase (Decrease) in Other Current Liabilities

7,054.00

741.00

Net Cash Provided by (Used in) Operating Activities

1,692,473.00

548,014.00

Cash Flows from Investing Activities

 

 

Acquisition of Financial Assets Carried at Cost

-89,514.00

0.00

Purchase of Property, Plant and Equipment

-265,295.00

-277,573.00

Proceeds from Disposal of Property, Plant and Equipment

12,386.00

11,965.00

Decrease (Increase) in Refundable Deposits

7.00

0.00

Increase in Deferred Charges

-2,816.00

-23,586.00

Decrease (Increase) in Restricted Assets

0.00

0.00

Decrease (Increase) in Other Assets

-692.00

-18,068.00

Net Cash Provided by (Used in) Investing Activities

-345,924.00

-307,262.00

Cash Flows from Financing Activities

 

 

Increase (Decrease) in Short-term Loans

-1,190,953.00

433,248.00

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

93.00

-103.00

Repayments of Bonds

0.00

-50,100.00

Proceeds from Long-term Debt

300,000.00

1,000,000.00

Repayment of Long-term Debt

-35,508.00

-885,507.00

Increase (Decrease) in Guarantee Deposits Received

-11,152.00

-83,853.00

Cash Dividends Paid

-444,143.00

-448,000.00

Net Cash Provided by (Used in) Financing Activities

-1,381,663.00

-34,315.00

Net Increase (Decrease) in Cash and Cash Equivalents

-35,114.00

206,437.00

Cash and Cash Equivalents, Beginning of year

472,922.00

266,485.00

Cash and Cash Equivalents, End of year

437,808.00

472,922.00

Supplemental Cash Flow Information

 

 

Interest Paid- Excluding Capitalized Interest

42,909.00

50,354.00

Income Tax Paid

126,210.00

77,857.00

Non-cash Investing and Financing Activities

 

 

Current Portion of Long-term Liabilities

77,174.00

35,508.00

Conversion of Bonds to Common Stock

0.00

5,509.00

 

Bankers

 

Subject did not introduce its bank details; from other source we can not 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. Wang

Department

Sales Department

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.70

UK Pound

1

Rs.92.25

Euro

1

Rs.78.38

 

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%)

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.