MIRA INFORM REPORT

 

 

Report Date :

16.12.2014

 

IDENTIFICATION DETAILS

 

Name :

SONG HO INDUSTRIAL CO., LTD.

 

 

Registered Office :

No.61, Nan-Kong 3 Road, Nan Tou City Nan Tou Hsien

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

15.09.1972

 

 

Com. Reg. No.:

85611896

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

·         engaged in Manufacturing & sale of Steel Products including Steel Bar, Steel Wire, Wire Rope, Cold Drawing Finished Bar, Water-Control Gate Machinery, Galvanized Steel Strand and Inner Cable

·         Engaged in Steel Rolling and Extruding

·         Engaged in Secondary processing of steel materials

·         Engaged in manufacturing Steel Wires and Cables

·         Engaged in manufacturing Metal Wire Products

 

 

No of Employees :

About 280 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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are other major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, and following the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, Taiwan in July 2013 signed a free trade deal with New Zealand—Taipei’s first-ever with a country with which it does not maintain diplomatic relations—and in November inked a trade pact with Singapore. Negotiations continue on follow-on components of ECFA regarding trade in goods and a dispute resolution mechanism; a trade in services agreement is under review in the legislature. 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 overall trade surplus largely because of its surplus with China, and its foreign reserves are the world's sixth largest, behind China, Japan, Saudi Arabia, Russia, and Switzerland. 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. Taiwan since 2009 has gradually loosened rules governing Chinese investment on the island, and has also secured greater market access for its investors in the mainland. 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:

Song Ho Industrial Co., Ltd.

Supplied Name:

SONG HO INDUSTRIAL CO., LTD

Trading Address:

No.61, Nan-Kong 3 Road, Nan Tou City Nan Tou Hsien

Supplied Address:

HEAD OFFICE # 61, NAN-KONG 1 ROAD, NAN TOU CITY NAN TOU HSIEN 540, TAIWAN

Telephone Number:

+886-49-225-3551

Fax Number:

+886-49-225-3395

E-mail:

sales@songho.com

Notes: The exact name and address are as above.

 

 

Credit Summary

 

Credit Opinion:

Business connections are permissible.

 

 

Company Identification Details

 

Registered Name:

Song Ho Industrial Co., Ltd.

Registered Address:

No.61, Nan-Kong 3 Road, Nan Tou City Nan Tou Hsien

Date of Foundation:

1972-9-15

Registration Number:

85611896

Registry:

MOEA Central Office

Registered Capital:

NTD 500,000,000 (USD 17,000,000)

(As of 2014.12, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 496,220,760 (USD 16,871,506)

Legal Representatives:

Minshun Lin

Legal Form:

Joint Stock Company

Principal Activities:

engaged in Manufacturing & sale of Steel Products including Steel Bar, Steel Wire, Wire Rope, Cold Drawing Finished Bar, Water-Control Gate Machinery, Galvanized Steel Strand and Inner Cable

Staff:

About 280 Employees

Listed at Stock Exchange:

Yes; Stock Code: 5016

Date of Last Annual Return:

2014-6-24

 

History

 

Subject was incorporated on 1972-9-15 with registered number 85611896 as Joint Stock Company in Taiwan.

 

Subject listed on Taiwan Over-The-Counter Securities Exchange on 2001-3-5.

 

Corporate Structure

 

Factories

1

Address:

No.61, Nan-Kong 3 Road, Nan Tou City, Nan Tou Hsien

Date of Foundation:

1969-1-1

Factory Registration Number:

99652224

Factory Manager:

Minshun Lin

Status:

In Production

Date of Last Annual Return:

2014-4-23

Major Products:

291 metal processing machinery

293 general machinery

2

Address:

No. 328, Zhonghua Rd., Yongfeng Li, Nan Tou City, Nan Tou Hsien, Taiwan

Date of Foundation:

2000-5-5

Date of Registration:

2000-7-6

Factory Registration Number:

99652292

Factory Manager:

Minshun Lin

Status:

In Production

Date of Last Annual Return:

2000-7-6

Major Products:

293 general machinery

 


 

Shareholders

 

Major Shareholders

Name

Subscription Shares     

 

Minshun Lin

 

4,626,300

 

Tingfang Lin

6,551,030

Huiyan Hong

3,867,470

Yifu Jian

46,328

Jinnan Li

209,000

Yanyu Liu

2,502,715

Jiagui Hong

186,340

 

 

Management Information

 

Core Management

Directors

1

Name

Minshun Lin

Position

Board Chairman

2

Name

Tingfang Lin

Position

Deputy Chairman

3

Name

Huiyan Hong

Position

Director

4

Name

Yifu Jian

Position

Director

5

Name

Jinnan Li

Position

Director

6

Name

Yanyu Liu

Position

Supervisor

7

Name

Jiagui Hong

Position

Supervisor

 

Personnel Structure

Total Employees

About 280 Employees

 

 

Operation Information

 

Offices & Factories

 

Headquarters

Add

No.61, Nan-Kong 3 Road, Nan Tou City Nan Tou Hsien

 

Production Information

l  Subject is engaged in manufacturing of steel products

l  It is introduced that subject’s Nan Kong factory is about 49,000 square meters.

l  Subject obtained the certifications of ISO 9002 and ISO 14001.

 

Purchase Information

l  The registered activities of subject:

Business Code

Details

CA01020

Steel Rolling and Extruding

CA01050

Secondary processing of steel materials

CA01060

Steel Wires and Cables Manufacturing

CA02090

Metal Wire Products Manufacturing

CA03010

Metal Heat Treating

CA04010

Surface treatment

CB01010

Machinery and Equipment Manufacturing

CB01990

Other mechanical equipment manufacturing

CC01010

Power Generation, Transmission and Distribution Machinery Manufacturing

CI01010

Rope, Cable and Net Manufacturing

E604010

Installation of l Machinery and Equipment

F401010

International Trading Business

F113990

Manufacturing of other mechanical appliances

F213990

Retailing of other mechanical appliance

C801060

Manufacturing of synthetic rubber

C804020

Manufacturing of industrial rubber products

C804990

Manufacturing of other rubber products

ZZ99999

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

 

l  The raw materials for production are mostly purchased in domestic market.

 

Sales Information

l  Subject is mainly engaged in sale of steel products

l  The major products sold by the subject include Steel Bar, Steel Wire, Wire Rope, Cold Drawing Finished Bar, Water-Control Gate Machinery, Galvanized Steel Strand and Inner Cable

l  Subject’s sales regions include domestic market, Japan, Korea, India, Southeast Asia, Europe and America, etc.

l  One of the subject’s major customers is WCJ Pilgrim Wire Llc.

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

1.     Domestic Purchase

Products

Raw materials

Payment Terms

Cash, T/T, etc

 

2.     Import

Subject has little import.

 

Sales

1.     Domestic Markets

Product

Steel products

Selling Terms

Cash, T/T, etc

 

2.     Export

Product

Steel products

Selling Terms

L/C, T/T, etc

 

Balance Sheet

 

Unit: NTD/000

Consolidated

2013-12-31

2012-12-31

Current assets

 

 

Cash and cash equivalents

338,084

275,123

Notes receivable, net

225,019

205,792

Accounts receivable, net

389,028

347,552

Other receivable, net

8,144

9,783

Inventories

710,291

669,704

Prepayment

10,747

10,433

Other current assets

13,666

8,097

Total current assets

1,694,979

1,526,484

Non-current assets

 

 

Non-current financial assets at cost –non current

63,649

57,071

Property, plant and equipment

1,084,660

969,432

Investment property, net

668

668

Intangible assets

246

0

Deferred tax assets

43,876

43,515

Other non-current assets

18,896

25,625

Total non-current assets

1,211,995

1,096,311

Total assets

2,906,974

2,622,795

Current liabilities

 

 

Short-term borrowings

310,998

180,832

Short-term notes and bills payable

109,847

59,919

Notes payable

199,907

162,140

Accounts payable

36,511

35,510

Other payables

62,999

57,994

Current tax liabilities

19,112

2,141

Other current liabilities

232,351

219,902

Total current liabilities

971,725

718,438

Non-current liabilities

 

 

Long-term loan

647,782

660,162

Deferred tax liabilities

167,603

167,603

Other non-current liabilities

86,853

93,810

Total non-current liabilities

902,238

921,575

Total liabilities

1,873,963

1,640,013

Equity attributable to owners of parent

 

 

Share capital

 

 

Ordinary share

496,221

496,221

Total capital stock

496,221

496,221

Capital surplus

 

 

Capital surplus

8,000

8,000

Retained earnings

 

 

Legal reserve

156,209

152,622

Special reserve

4,147

73,010

Unappropriated retained earnings (accumulated deficit)

361,087

248,181

Total retained earnings

521,443

473,813

Other equity interest

 

 

Total other equity interest

-30

-2,517

Treasury stock

0

0

Total equity attributable to owners of parent

1,025,634

975,517

Non-controlling interests

7,377

7,265

Total equity

1,033,011

982,782

Equivalent issue shares of advance receipts for ordinary share

0

0

Number of shares in entity held by entity and by its subsidiaries

0

0

 

Profit and Loss Account

 

Unit: NTD/000

Consolidated

2013

2012

Total operating revenue

2,619,626

2,622,008

Total operating costs

2,317,886

2,401,335

Gross profit (loss) from operations

301,740

220,673

Gross profit (loss) from operations, net

301,740

220,673

Operating expenses

 

 

Selling expenses

84,191

78,765

Administrative expenses

67,631

65,221

Research and development expenses

5,188

5,139

Total operating expenses

157,010

149,125

Net operating income (loss)

144,730

71,548

Non-operating income and expenses

 

 

Other income

2,455

4,403

Other gains and losses, net

-3,799

-4,966

Finance costs, net

18,180

17,421

Total non-operating income and expenses

-19,524

-17,984

Profit (loss) from continuing operations before tax

125,206

53,564

Total tax expense (income)

25,648

17,127

Profit (loss) from continuing operations

99,558

36,437

Profit (loss)

99,558

36,437

Other comprehensive income

 

 

Exchange differences on translation

3,131

-3,168

Actuarial gains (losses) on defined benefit plans

3,171

-10,754

Income tax related to components of other comprehensive income

1,048

-2,343

Other comprehensive income, net

5,254

-11,579

Total comprehensive income

104,812

24,858

Profit (loss), attributable to:

 

 

Profit (loss), attributable to owners of parent

99,581

36,789

Profit (loss), attributable to non-controlling interests

-23

-352

Comprehensive income attributable to:

 

 

Comprehensive income, attributable to owners of parent

104,700

25,346

Comprehensive income, attributable to non-controlling interests

112

-488

Basic earnings per share

 

 

Total basic earnings per share

2.01

0.74

Diluted earnings per share

 

 

Total diluted earnings per share

2.01

0.74

 

Cash Flows

 

Unit: NTD/000

Consolidated

2013

2012

Cash flows from (used in) operating activities, indirect method

 

 

Profit (loss) from continuing operations before tax

125,206

53,564

Profit (loss) before tax

125,206

53,564

Depreciation expense

82,218

92,485

Amortization expense

395

1,584

Provision (reversal of provision) for bad debt expense

9,975

4,497

Interest expense

18,180

17,421

Interest income

-431

-645

Dividend income

-258

-1,340

Loss (gain) on disposal of property, plant and equipment

-200

-416

Loss (gain) on disposal of investment property

0

-1,290

Non-cash gains and losses items

109,879

112,296

Decrease (increase) in notes receivable

-19,227

58,290

Decrease (increase) in accounts receivable

-51,451

19,637

Decrease (increase) in other receivables

1,673

-5,896

Decrease (increase) in inventories

-40,587

174,938

Decrease (increase) in prepayment

-314

9,309

Decrease (increase) in other current assets

-5,569

1,804

Total changes in operating assets

-115,475

258,082

Increase (decrease) in notes payable

37,767

-75,428

Increase (decrease) in accounts payable

1,001

1,418

Increase (decrease) in other payable

5,752

-12,952

Increase (decrease) in other current liabilities

302

-8,097

Increase (decrease) in accrued pension liabilities

-3,786

-3,690

Total changes in operating liabilities

41,036

-98,749

Total changes in operating assets and liabilities

-74,439

159,333

Total adjustments

35,440

271,629

Cash inflow (outflow) generated from operations

160,646

325,193

Interest received

397

722

Dividends received

258

1,340

Interest paid

-18,202

-17,618

Income taxes refund (paid)

-10,086

-41,212

Net cash flows from (used in) operating activities

133,013

268,425

Cash flows from (used in) investing activities

 

 

Proceeds from disposal of financial assets at cost

-6,578

0

Acquisition of property, plant and equipment

-132,464

-46,926

Proceeds from disposal of property, plant and equipment

1,265

1,913

Proceeds from disposal of investment properties

0

11,845

Increase in other non-current assets

-51,114

-95,032

Net cash flows from (used in) investing activities

-188,891

-128,200

Cash flows from (used in) financing activities

 

 

Increase in short-term loans

2,037,652

1,489,100

Decrease in short-term loans

-1,907,486

-1,541,734

Increase in short-term notes and bills payable

419,216

319,421

Decrease in short-term notes and bills payable

-369,288

-339,461

Proceeds from long-term debt

350,001

388,200

Repayments of long-term debt

-350,234

-343,986

Cash Dividends

-54,583

-124,055

Net cash flows from (used in) financing activities

125,278

-152,515

Effect of exchange rate changes on cash and cash equivalents

-6,439

-1,815

Net increase (decrease) in cash and cash equivalents

62,961

-14,105

Cash and cash equivalents at beginning of period

275,123

289,228

Cash and cash equivalents at end of period

338,084

275,123

Cash and cash equivalents reported in the statement of financial position

338,084

275,123

Note: Subject didn’t submit its individual financial information; we obtained its consolidated financials as follows for reference.

The above financial figures are based on the IFRSs Accounting System.

 

 

Bankers

 

Subject declined to disclose its bank details; from other source we could 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.

 

 

Special Note

 

Interview Details

Name

Ms. Wu

Department

Sales Department

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.65

UK Pound

1

Rs.98.53

Euro

1

Rs.78.02

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.