MIRA INFORM REPORT

 

 

Report Date :

12.03.2013

 

IDENTIFICATION DETAILS

 

Name :

SHE HONG INDUSTRIAL CO., LTD.

 

 

Registered Office :

No.6, Road 6, Industrial Area, Taichung

 

 

Country :

Taiwan

 

 

Date of Incorporation :

23.12.1970

 

 

Com. Reg. No.:

51321357

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and sales of CNC machine tools, etc

 

 

No. of Employees :

About 400 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

(31.03.2011)

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:

She Hong Industrial Co., Ltd.

Supplied Name:

SHE HONG INDUSTRIAL CO LTD

Trading Address:

No.6, Road 6, Industrial Area, Taichung Taiwan R.O.C.

Supplied Address:

6 Road, Industrial Area taichung, Taiwan

Telephone Number:

+886-4 2359-2747

Fax Number:

+886-4-2358-1793

E-mail:

public@hartford.com.tw

Website:

www.hartford.com.tw

Notes: The exact name and address are as above.

 

Credit Summary

 

Credit Opinion:

Business connections are permissible.

 

Company Identification Details

 

Registered Name:

She Hong Industrial Co., Ltd.

Registered Address:

No.6, Road 6, Industrial Area, Taichung Taiwan R.O.C.

Date of Foundation:

1970-12-23

Registration Number:

51321357

Registry:

MOEA Central Office

Registered Capital:

NTD 462,000,000 (USD 15,708,000)

(As of 2012.12, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 462,000,000 (USD 15,708,000)

Legal Representatives:

Guanling Chen

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sales of CNC machine tools, etc

Staff:

About 400 Employees

Listed at Stock Exchange:

No

Date of Last Annual Return:

2012-3-12

 

History

Subject was incorporated on 1970-12-23 with registered number 51321357 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

2009

15,000,000

2010

20,000,000

2011

22,000,000

 

Shareholders

 

Name

Subscription Shares

Guanling Chen

53,060 

 

Shu You

 

54,882

 

Pinwan Chen

53,060

Jianzhi Chen

181,215

 

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

 


Subsidiaries & Branches

It is introduced that subject has two factories in Taichung, Taiwan and one factory in Thailand. But the detail information we cannot obtain from any sources.

 

Related Company

Name

Hartford Motors Co., Ltd.

Address

No.3, Jingke North Road, Taichung, Taiwan

Telephone Number

+886-4-2359-9218

Fax Number

+886-4-2359-3673

 

Personnel Information

Core Management

 

Directors

1

Name

Guanling Chen

Position

Board Director

2

Name

Shu You

Position

Director

3

Name

Pinwan Chen

Position

Director

4

Name

Jianzhi Chen

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 400 Employees

Operation Information

Offices & Factories

 

 

Headquarters

Add

No.6, Road 6, Industrial Area, Taichung Taiwan R.O.C.

 

Production Information

 

l         Subject is engaged in manufacturing of CNC machine tools, etc.

l         Subject has two factories in Taichung, Taiwan and one factory in Thailand for production.

l         It is introduced that the area of subject’s Taiwan factories is about 70,000 square meters.

l         The annual capacity of subject is about 2,000 machines.

 

Purchase Information

 

l         The registered activities of subject:

Business Code

Details

--

Manufacturing, processing, and sales of automobile, motor, and machine element

--

Manufacturing, processing, and sales of ironmongery

--

Manufacturing, processing, and sales of all kinds of machinery and hardware tool

ZZ99999

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

 

l         The components and raw materials for production are mostly purchased from both home and abroad.

 

Sales Information

 

l         Subject is engaged in sales of CNC machine tools, etc.

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

l         Subject obtained the certification of ISO 9002.

l         Subject’s major customers include Pratt Whitney, General electric, Toyota Honda, and I.A.I, etc.

 

Major products sold

 

Product

1

Vertical Machining Center

2

Double Column Machining Center

3

Multi-Surface Double Column Machining Center

4

Horizontal Machining Center

5

Precision Boring & Milling Machine

6

Special Purpose Machining Center

7

5 Axis Machining Center

 

Import and export right:

Import right

Yes

Export right

Yes

 

Settlements

Purchase

 

Domestic Purchase

Product

Payment Terms

Proportion

Components, etc

COD, CBD, etc

100%

Foreign Purchase

Product

Payment Terms

Proportion

Components, etc

CBD, etc

100%

 

Sales

Domestic Markets

Product

Sales Terms

Proportion

Machines, etc

COD, CBD, etc

100%

Export

Product

Sales Terms

Proportion

Machines, 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. Dai 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. Dai

Department

Sales Department

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.29

UK Pound

1

Rs.81.08

Euro

1

Rs.70.61

 

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

 

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.