MIRA INFORM REPORT

 

 

Report Date :

25.03.2013

 

IDENTIFICATION DETAILS

 

Name :

CVC TECHNOLOGIES INC.

 

 

Registered Office :

No.190, Gongye 9th Rd., Dali Dist., Taichung City 412

 

 

Country :

Taiwan

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

19.08.2002

 

 

Com. Reg. No.:

80234971

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and sales of machinery, etc.

 

 

No. of Employees :

About 170 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 :

Exists

 

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:

CVC Technologies Inc.

Supplied Name:

CVC TECHNOLOGIES INC

Trading Address:

No.190, Gongye 9th Rd., Dali Dist., Taichung City 412, Taiwan (R.O.C.)

Supplied Address:

No. 190, Gongye 9th Road, Dali Dist., Taichang City 41280

Telephone Number:

+886-4-3705-6666

Fax Number:

+886-4-2496-9633

E-mail:

sales@cvctechnologies.com 

Website:

www.cvc-tech.com 

Notes: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

CVC Technologies Inc.

Registered Address:

No.190, Gongye 9th Rd., Dali Dist., Taichung City 412, Taiwan (R.O.C.)

Date of Foundation:

2002-8-19

Registration Number:

80234971

Registry:

MOEA Central Office

Registered Capital:

NTD 300,000,000 (USD 10,200,000)

(As of 2013.03, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 206,360,000 (USD 7,016,240)

Legal Representatives:

Shenghui Yang

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sales of machinery, etc

Staff:

About 170 Employees

Listed at Stock Exchange:

Yes; Stock Symbol: 4744

Date of Last Annual Return:

2012-7-9

 

History

 

Subject was incorporated on 2002-8-19 with registered number 80234971 as Joint Stock Company in Taiwan.

 

Subject was listed on Taiwan Stock Exchange on 2009-5-27.

 

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

Shenghui Yang

4,207,500         

 

Shihao Yang

 

2,365,000

 

Fengzhu Guoshi

968,000

Yutian Xie

11,000

Yizhen Lin

176,010

Jinyu Song

118,800

 

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

 


Subsidiaries & Branches

 

Related Companies

1

Name

CVC Technologies, Inc. (USA)

Address

10861 Business Drive, Fontana, CA 92337

Telephone Number

+1-909-355-0311

Fax Number

+1-909-355-0411

2

Name

Shanghai Huangjiang Light Industry Machinery Co., Ltd.

Address

1 Building, Lane 1343, Tongpu Rd., Putuo District, Shanghai, China 200333

Telephone Number

+86-21-5270-3030

Fax Number

+86-21-5269-6019

 

 

Personnel Information

 

Core Management

 

Directors

1

Name

Shenghui Yang

Position

Board Chairman

2

Name

Shihao Yang

Position

Director

3

Name

Fengzhu Guoshi

Position

Director

4

Name

Yutian Xie

Position

Independent Director

5

Name

Wensen Luo

Position

Independent Director

6

Name

Wentian Zhang

Position

Supervisor

7

Name

Yizhen Lin

Position

Supervisor

8

Name

Jinyu Song

Position

Supervisor

 

Personnel Structure

Total Employees

About 170 Employees

 

 

Operation Information

 

Offices & Factories

 

Headquarters

Add

No.190, Gongye 9th Rd., Dali Dist., Taichung City 412, Taiwan (R.O.C.)

 

Production Information

l  Subject is engaged in manufacturing of machinery, etc.

l  It is introduced that subject has a factory (about 20,000 square meters) in Taichung city, Taiwan for production.

l  Subject obtained the certifications of ISO 9001:2000, CE and UL.

 

Purchase Information

l  The registered activities of subject:

Business Code

Details

CC01110

Manufacturing of computer and office equipment

CB01010

Manufacturing of machinery

F113050

Wholesale of computer and office equipment

F213030

Retail of computer and office equipment

F113010

Wholesale of machinery

F213080

Retail of machinery

F401010

International trade business

F208040

Retail of cosmetic

F108040

Wholesale of cosmetic

IG01010

Biological technology service

F102170

Wholesale of food and grocery

I301030

Electronic information supply service

I301020

Data processing service

F113030

Wholesale of precise instrument

F213040

Retail of precise instrument

JE01010

Leasing industry

F108021

Wholesale of western medicine

F208021

Retail of western medicine

F108011

Wholesale of traditional Chinese medicine

F208011 

Retail of traditional Chinese medicine

F114060

Wholesale of ship and its parts

F214060

Retail of ship and its parts

C802100

Manufacturing of cosmetic

F108051

Sales of cosmetic pigments

ZZ99999

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

 

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

l  It is introduced that subject imports some technology from Europe and USA.

 

Sales Information

l  Subject is engaged in sales of machinery, etc.

l  The major products sold by subject include automatic labeling machinery, pharmaceutical packaging machinery, nutriceutical packaging, liquid and tablet full line, etc.

l  Subject’s sales regions include mainland China, Japan, South Korea, Africa, Europe and America, etc.

l  It is introduced that subject has a research and development centre in Italy.

l  Subject has their own brand “CVC”.

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

Domestic Purchase

Product

Payment Terms

Proportion

Components

COD, CBD, etc

100%

Foreign Purchase

Product

Payment Terms

Proportion

Components

CBD, etc

100%

Sales

Domestic Markets

Product

Sales Terms

Proportion

Machinery

COD, CBD, etc

100%

Export

Product

Sales Terms

Proportion

Machinery

CBD, etc

100%

 

Balance Sheet

 

Unit: NTD/000

 

2012-6-30

2011-6-30

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

73,368.00

27,281.00

Accounts receivable - net

73,457.00

105,192.00

Accounts receivable - related parties - net

75,106.00

92,113.00

Other receivables - related parties

63,922.00

44,364.00

 Other financial assets-current

19,485.00

27,850.00

Inventories

190,588.00

177,009.00

Prepayment

4,740.00

8,990.00

Other current assets

17,007.00

25,245.00

Current assets

517,673.00

508,044.00

Funds and Investments

 

 

 Long-term equity investment under equity method

39,201.00

62,120.00

Investments

39,201.00

62,120.00

Funds and investments

39,201.00

62,120.00

Fixed Assets

 

 

Cost

 

 

Land

112,617.00

112,617.00

Buildings and structures

246,084.00

244,811.00

Machinery and equipment

56,859.00

55,874.00

Transportation equipment

2,514.00

2,514.00

Other facilities

34,413.00

33,780.00

Cost of fixed assets

452,487.00

449,596.00

Accumulated depreciation

-50,622.00

-31,480.00

Construction in process and prepayment for equipments

1,325.00

1,449.00

Fixed assets

403,190.00

419,565.00

Intangible Assets

 

 

Computer software cost

388.00

112.00

Deferred pension costs

15,830.00

19,588.00

Other intangible assets

10,515.00

12,033.00

Intangible assets

26,733.00

31,733.00

Other Assets

 

 

Guarantee deposits paid

2,532.00

3,951.00

Deferred expenses

1,747.00

1,644.00

 Deferred income tax assets-non current

1,934.00

889.00

Other assets

6,213.00

6,484.00

Assets

993,010.00

1,027,946.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

Short-term borrowing

216,253.00

245,043.00

Notes payable

1,343.00

7,168.00

Accounts payable

151,530.00

141,512.00

Accounts payable - related parties

254.00

4,591.00

Income tax payable

67.00

80.00

Accounts payable - related parties

3,601.00

0.00

Advance receipts

22,971.00

23,058.00

Long-Term Liabilities -Current Portion

10,775.00

0.00

Other current liabilities

37,903.00

40,028.00

Current liabilities

444,697.00

461,480.00

Long-term Liabilities

 

 

Long-term loan

174,686.00

176,000.00

Long-term liabilities

174,686.00

176,000.00

Reserves

 

 

Other Liabilities

 

 

Pension reserve / accrued pension liability

32,116.00

32,505.00

Other liabilities - other

21,555.00

16,653.00

Other liabilities

53,671.00

49,158.00

Liabilities

673,054.00

686,638.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

206,360.00

206,360.00

Capital Surplus

 

 

Capital surplus–share premium

113,640.00

159,640.00

Capital surplus–long-term investments

13.00

13.00

Capital surplus

113,653.00

159,653.00

Retained Earnings

 

 

Legal reserve

0.00

32,971.00

Unappropriated retained earnings

2,231.00

-53,337.00

Retained earnings

2,231.00

-20,366.00

Stockholders' Equity and Other adjustment

 

 

Cumulative translation adjustments

-2,288.00

-4,339.00

Stockholders' equity and other adjustment

-2,288.00

-4,339.00

Stockholders-equity

319,956.00

(USD 10,878,504.00)

341,308.00

(USD 11,604,472.00)

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

0.00

0.00

Equivalent shares of outstandings of advance receipts for common stock (Unit: share)

0.00

0.00

(As of 2013.03, 1 NTD = 0.0340 USD)

 

Profit and Loss Account

 

Unit: NTD/000

 

2012-1-1~2012-6-30

2011-1-1~2011-6-30

Sales

379,613.00

(USD 12,906,842.00)

399,831.00

(USD 13,594,254.00)

Sales returns

5,774.00

19,305.00

Sales discount

63.00

1,287.00

Sales

373,776.00

379,239.00

Operating income

373,776.00

379,239.00

Cost of selling

269,218.00

281,916.00

Operating costs

269,218.00

281,916.00

Gross profit (loss) from operations

104,558.00

97,323.00

Unrealized gains on intercompany transactions

-1,848.00

-6,205.00

Selling expense

43,677.00

58,526.00

General and administrative expenses

17,781.00

34,994.00

Research and development expenses

20,172.00

25,831.00

Operating expenses

81,630.00

119,351.00

Operating income (loss)

24,776.00

-15,823.00

Non-Operating Income

 

 

Interest income

46.00

37.00

Miscellaneous income

6,518.00

1,831.00

Non-operating revenues and gains

6,564.00

1,868.00

Non-operating expenses and losses

 

 

Interest expenses

4,675.00

3,585.00

Loss on investment under the equity method

26,361.00

29,116.00

Investment losses

26,361.00

29,116.00

Loss on disposal of fixed assets

0.00

8,164.00

Foreign exchange losses

32.00

2,242.00

Non-operating expenses and losses

31,068.00

43,107.00

Income from continuing operations before income tax

272.00

-57,062.00

Income tax expense (benefit)

-1,959.00

-2,770.00

Income from continuing operations

2,231.00

-54,292.00

Net income (loss)

2,231.00

(USD 75,854.00)

-54,292.00

(USD -1,845,928.00)

Primary Earnings per Share

 

 

Primary earnings per share

0.11

-2.63

Diluted earnings per share

 

 

Diluted earnings per share

0.11

-2.63

(As of 2013.03, 1 NTD = 0.0340 USD)

 

Cash Flows

 

Unit: NTD/000

 

 

2012-1-1~2012-6-30

2011-1-1~2011-6-30

Cash Flows from Operating Activities - Indirect Method

 

 

Net Income (Loss)

2,231

(54,292)

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

 

 

Depreciation Expense

9,650

7,925

Selling Expense

1,915

1,061

Provision for Bad Debt

-4,946

3,605

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

11,688

171

Loss (Gain) on Inventories

-17

396

Investment Loss (Income) Recognized under Equity Method

26,361

29,116

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

0

8,164

Unrealized gains on intercompany transactions

-1,848

-6,205

Changes in Operating Assets and Liabilities

 

 

Decrease (Increase) in Notes Receivable

1

-60

Decrease (Increase) in Accounts Receivable

12,032

9,072

Decrease (Increase) in Accounts Receivable - Related Parties

8,499

2,165

Decrease (Increase) in Other Receivable

-37,152

-27,612

Decrease (Increase) in Inventories

-52,482

-53,401

Decrease (Increase) in Prepaid Expenses

1,221

253

Decrease (Increase) in Prepayment

7,131

30,628

Decrease (Increase) in Other Current Assets

-579

-4,303

Decrease (Increase) in Other Financial Assets

0

341

Decrease (Increase) in Deferred Income Tax Assets

-1,959

-3,471

Increase (Decrease) in Notes Payable

-2,804

-38,485

Increase (Decrease) in Accounts Payable

58,309

70,193

Increase (Decrease) in Accounts Payable - Related Parties

202

-5,255

Increase (Decrease) in Income Tax Payable

-4

-4,794

Increase (Decrease) in Accrued Expenses

-7,458

-9,130

Increase (Decrease) in Other Accrued Expenses

124

0

Increase (Decrease) in Advance Receipts

-6,402

17,222

Increase (Decrease) in Other Current Liabilities

315

724

Increase (Decrease) in Accrued Pension Liabilities

1,726

1,643

Net Cash Provided by (Used in) Operating Activities

25,754

-24,329

Cash Flows from Investing Activities

 

 

Increase in Long-term Investments at Equity

0

-25,114

Purchase of Property, Plant and Equipment

-690

-24,308

Decrease (Increase) in Refundable Deposits

568

-2,269

Increase (Decrease) in Deferred Expenses

0

-1,719

Increase (Decrease) in Restricted Assets

-416

1,962

Net Cash Provided by (Used in) Investing Activities

-538

-51,448

Cash Flows from Financing Activities

 

 

Increase (Decrease) in Short-term Loans

-26,977

76,543

Long-term Loan

9,461

0

Net Cash Provided by (Used in) Financing Activities

-17,516

76,543

Exchange Influence

0

0

Net Increase (Decrease) in Cash and Cash Equivalents

7,700

766

Cash and Cash Equivalents, Beginning of year

65,668

26,515

Cash and Cash Equivalents, End of year

73,368

27,281

Supplemental Cash Flow Information

 

 

Interest Paid

4,544

3,510

Interest Paid - Excluding Capitalized Interest

4,544

3,510

Income Tax Paid

4

5,527

Non-cash Investing and Financing Activities

 

 

Inventories Transfer to Fixed Asset

0

4,204

Investing Activities Affecting Both Cash and Non-cash Items

 

 

Cash on Purchase of Fixed Assets

 

 

Increased in Fixed Assets

690

24,975

Increase (Decrease) in Accounts Payable for Purchase of Equipment

0

(667)

Cash on Purchase of Fixed Assets

690

24,308

 

 

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

1

Trial Number:

2009,Zhongbu,573

Date of Trial:

2009-4-6

Reason:

Payment for remuneration

2

Trial Number:

2011,Zhonglaojian,11

Date of Trial:

2011-4-28

Reason:

Payment for severance

 

 

Interview Details

 

Name

Ms. Zeng

Department

Sales Department

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.34

UK Pound

1

Rs.82.56

Euro

1

Rs.70.10

 

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.