MIRA INFORM REPORT

 

 

Report Date :

12.02.2014

 

IDENTIFICATION DETAILS

 

Name :

HONG HO PRECISION TEXTILE CO., LTD.

 

 

Registered Office :

No.473, Zhongshan S. Rd., Yongkang Dist., Tainan City 710, Taiwan (R.O.C.)

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

09.06.1978

 

 

Com. Reg. No.:

73641170

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

 Manufacturing and sale of textile and garment.

 

 

No. of Employees :

1,000

 

 

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 150,000

 

 

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 – December 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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:

Hong Ho Precision Textile Co., Ltd.

Supplied Name:

HONG HO PRECISION TEXTILE CO., LTD.

Trading Address:

No.473, Zhongshan S. Rd., Yongkang Dist., Tainan City 710, Taiwan (R.O.C.)

Supplied Address:

3F,NO.45,LANE 3,JI HU RD., NEI HU DISTRICT,TAIPEI CITY 114,TAIWAN ,R.O.C.

Telephone Number:

+886-6-233-3133

Fax Number:

+886-6-233-2133

Notes: The exact name and address are as above and the supplied address belongs to subject’s Taipei Branch.

 

 

Credit Summary

 

Credit Rating:

Maximum credit USD 150,000

Credit Opinion:

Business connections are permissible.

Risk Analysis:

Average creditworthiness

 

 

Company Identification Details

 

Registered Name:

Hong Ho Precision Textile Co., Ltd.

Registered Address:

No.473, Zhongshan S. Rd., Yongkang Dist., Tainan City 710, Taiwan (R.O.C.)

Date of Foundation:

1978-6-9

Registration Number:

73641170

Registry:

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

Registered Capital:

NTD 3,600,000,000 (USD 122,400,000)

(As of 2014.02, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 1,386,215,130 (USD 47,131,314)

Legal Representatives:

Dagong Huang

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sale of textile and garment.

Staff:

About 1,000 Employees (Group)

Listed at Stock Exchange:

Yes; Stock Code: 1446

Date of Last Annual Return:

2013-6-19

 

 

History

 

Subject was incorporated on 1978-6-9 with registered number 73641170 as Joint Stock Company in Taiwan.

 

Subject listed on Taiwan Stock Exchange on 1991-10-15.

 

 

Shareholders

 

Name

Subscription Shares

Gao Sheng Investment Co., Ltd. (Literal Translation)

5,631,014

Huanyong Luo

5,292,078

Yi Sheng Investment Co., Ltd. (Literal Translation)

2,198,140

 

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

 

Shareholder Information:

1

Registered Name:

Gao Sheng Investment Co., Ltd. (Literal Translation)

Registered Address:

5th Floor, No.186, Sec 4, Nanjing East Road, Songshan District, Taipei City, Taiwan

Date of Foundation:

1999-7-19

Registration Number:

70383058

Registry:

Taipei City Government

Registered Capital:

NTD 80,000,000 (USD 2,720,000)

(As of 2014.02, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 80,000,000 (USD 2,720,000)

Legal Representatives:

Tongqing Zengzhang

Legal Form:

Joint Stock Company

Listed at Stock Exchange:

No

Date of Last Annual Return:

2012-5-22

2

Registered Name:

Yi Sheng Investment Co., Ltd. (Literal Translation)

Registered Address:

10th Floor, No.31, Sec 2, Sanmin Road, Fugui Li, Banqiao District, New Taipei City, Taiwan

Date of Foundation:

2006-2-27

Registration Number:

28000017

Registry:

New Taipei City Government

Registered Capital:

NTD 26,900,000 (USD 914,600)

(As of 2014.02, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 26,900,000 (USD 914,600)

Legal Representatives:

Miaoqi Chen

Legal Form:

Joint Stock Company

Listed at Stock Exchange:

No

Date of Last Annual Return:

2012-11-27

 

 

Subsidiaries & Branches

 

Factory

Address:

A Area, No.473, Zhongshan S. Rd., Yongkang Dist., Tainan City 710, Taiwan (R.O.C.)

Date of Registration:

2011-10-11

Factory Registration Number:

67000205

Factory Manager:

Dagong Huang

Status:

In Production

Date of Last Annual Return:

2011-10-11

Major Products:

112 weaving

 

Branch Company

Name

Taipei Branch

Address

3rd Floor, No. 45, Sec 3, Jihu Road, Neihu District, Taipei City, Taiwan

Registration Number

16088121

Date of Registration

1997-7-29

Status

Live Company

Manager Name

Tianming He

Date of Last Annual Return

2003-8-4

Subsidiaries

1

Name

Hong Hwa Holdings Limited

Principal Activities

Investment business

2

Name

Hong He Investment Co., Ltd (Literal Translation)

Principal Activities

Investment business

3

Name

Hong Yang Leasing Co., Ltd. (Literal Translation)

Principal Activities

Leasing business

4

Name

United Intercontinental Ltd.

Address

Mexico

Principal Activities

Manufacturing and sale of garment, etc

 

Personnel Information

 

Core Management

 

Directors

1

Name

Dagong Huang

Position

Board Chairman

2

Name

Tianming He

Position

Director/ Manager

Date of Appointment

2006-8-1

3

Name

Daquan Chen

Position

Director

4

Name

Suhua Huang

Position

Director

5

Name

Huanyong Luo

Position

Director

6

Name

Jiandong Lv

Position

Supervisor

7

Name

Miaoqi Chen

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 1,000 Employees (Group)

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

No.473, Zhongshan S. Rd., Yongkang Dist., Tainan City 710, Taiwan (R.O.C.)

 

Production Information

 

l         Subject is engaged in manufacturing of textile and garment, etc

l         Subject has factories in Tainan City, Taiwan and Mexico for production.

l         Subject obtained the certification of ISO 9001:2000.

 

Purchase Information

 

l         The registered activities of subject:

Business Code

Details

C301010

Spinning industry

C302010

Weaving industry

C305010

Printing and dyeing industry

C306010

Garment industry

E301010

Water treatment business

E302010

Installation of waste disposal equipment

E303010

Air pollution prevention

E303020

Noise and vibration prevention

E303030

Land pollution prevention

F104010

Wholesale of textile

F104020

Wholesale of garment

F204010

Retail of textile

F204020

Retail of garment

F401030

Manufacturing output

H701010

Development of residence and building

H701020

Development and leasing of industrial premises

H701040

Development of specific area

H701050

Invest in public construction

I401010

Advertisement service

ZZ99999

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

 

l         The raw materials such as polyester filament and textured yarn, etc for production are mostly purchased in domestic market.

 

Sales Information

 

l         Subject is engaged in sale of textile, etc.

l         The major products sold by subject include long fiber cloth, gray cloth and garment, etc.

l         The textiles sold by subject are applied to manufacturing of upholstery and leisure wear, etc.

l         Subject’s sales regions include Mainland China, Japan, South Korea, Vietnam, Sri Lanka, USA and Canada, etc.

l         One of subject’s major customers is Belmont Fabrics L.L.C.

 

Import and export right:

Import right

Yes

Export right

Yes

 

Settlements

 

Purchase

 

Domestic Purchase

Product

Terms

Proportion

Raw materials

Cash, T/T, etc

100%

 

Foreign Purchase

 

Subject has little import.

 

Sales

 

Domestic Markets

Product

Terms

Proportion

Textile, etc

Cash, T/T, etc

100%

 

Export

Product

Terms

Proportion

Textile, etc

L/C, T/T, etc

100%

 

 

Balance Sheet

Unit: NTD/000

 

2012-12-31

2011-12-31

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

238,223.00

549,660.00

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

3,848.00

2,031.00

Notes receivable - net

829.00

1,150.00

Accounts receivable - net

27,545.00

25,865.00

Other financial assets - current

1,007.00

5,389.00

Inventories

1,510,200.00

1,085,522.00

Other current assets

31,413.00

14,965.00

Current assets

1,813,065.00

1,684,582.00

Funds and Investments

 

 

Equity investments under equity method

443,817.00

466,655.00

Investments

443,817.00

466,655.00

Funds and long-term investments

443,817.00

466,655.00

Fixed Assets

 

 

Cost

 

 

Land

387,158.00

387,080.00

Machinery and equipment

74,161.00

74,161.00

Utilities equipment

538.00

538.00

Transportation equipment

7,209.00

4,609.00

Leasehold improvements

19,827.00

19,827.00

Other facilities

8,239.00

8,050.00

Revaluation increment

0.00

0.00

Cost and revaluation increment

497,132.00

494,265.00

Accumulated depreciation

-89,172.00

-85,016.00

Accumulated impairment - fixed assets

-174,000.00

-174,000.00

Fixed assets

233,960.00

235,249.00

Intangible Assets

 

 

OtherAssets

 

 

Rental assets

0.00

0.00

Idled assets

40,019.00

130,724.00

Deferred income tax assets - non current

144,466.00

140,297.00

Other assets - other

6,674.00

11,076.00

Other assets

191,159.00

282,097.00

Assets

2,682,001.00

2,668,583.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

Notes payable

92,331.00

61,915.00

Accounts payable

72,173.00

25,000.00

Accounts payable - related parties

5,382.00

2,238.00

Income tax payable

23,608.00

0.00

Accrued expenses

16,139.00

19,488.00

Other current liabilities

2,190.00

8,052.00

Current liabilities

211,823.00

116,693.00

Long term Liabilities

 

 

Long-term borrowings

500,000.00

500,000.00

Long-term liabilities

500,000.00

500,000.00

Reserves

 

 

Other Liabilities

 

 

Guarantee deposits received

96.00

98.00

Other liabilities

96.00

98.00

Liabilities

711,919.00

616,791.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

1,386,215.00

1,386,215.00

Capital Surplus

 

 

Capital surplus - additional paid-in capital

297,239.00

297,239.00

Capital surplus - other

393.00

393.00

Capital surplus

297,632.00

297,632.00

Retained Earnings

 

 

Legal reserve

60,057.00

28,480.00

Unappropriated retained earnings

213,662.00

315,770.00

Retained earnings

273,719.00

344,250.00

Stockholders' Equity and Other adjustment

 

 

Cumulative translation adjustments

12,516.00

23,695.00

Equity adjustments

12,516.00

23,695.00

Stockholdersˉ equity

1,970,082.00

(USD 66,982,788.00)

2,051,792.00

(USD 69,760,928.00)

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

0.00

0.00

 

0.00

0.00

(As of 2014.02, 1 NTD = 0.0340 USD)

 

 

Profit and Loss Account

 

Unit: NTD/000

 

2012

2011

Sales

346,027.00

(USD 11,764,918.00)

533,245.00

(USD 18,130,330.00)

Sales returns

50.00

0.00

Sales discounts and allowances

234.00

366.00

Sales

345,743.00

532,879.00

Operating income

345,743.00

532,879.00

Operating costs

299,713.00

494,091.00

Gross profit (loss) from operations

46,030.00

38,788.00

Selling expense

31,419.00

27,192.00

General and administrative expenses

29,150.00

34,694.00

Operating expenses

60,569.00

61,886.00

Operating income (loss)

-14,539.00

-23,098.00

Non-Operating Income

 

 

Interest income

4,396.00

4,013.00

Dividends

0.00

139.00

Investment income

0.00

139.00

Gains on disposal of fixed assets

9,226.00

568,414.00

Foreign exchange gains

0.00

3,899.00

Rent income

2,773.00

8,688.00

Miscellaneous income

2,691.00

3,830.00

Non-operating revenues and gains

19,086.00

588,983.00

Non-Operating Expenses

 

 

Interest expense

38.00

4,020.00

Losses from long-term equity investments under the equity method

7,720.00

132,572.00

Investment loss

7,720.00

132,572.00

Foreign exchange losses

3,329.00

0.00

Loss on depreciation and valuation loss form idle assets

435.00

3,298.00

Revaluation loss on financial assets

183.00

984.00

Miscellaneous disbursements

40.00

4,438.00

Non-operating expenses and losses

11,745.00

145,312.00

Income from continuing operations before income tax

-7,198.00

420,573.00

Income tax expense (benefit)

21,747.00

17,780.00

Income from continuing operations

-28,945.00

402,793.00

Net income (loss)

-28,945.00

(USD -984,130.00)

402,793.00

(USD 13,694,962.00)

Primary Earnings per Share

 

 

Income (loss) from continuing operations

-0.21

2.91

Cumulative effect of changes in accounting principle

0.00

0.00

Primary earnings per share

-0.21

2.91

(As of 2014.02, 1 NTD = 0.0340 USD)

 

 

 

 

 

 

 

Cash Flows

 

Unit: NTD/000

 

2012

2011

Cash Flows from Operating Activities - Indirect Method

 

 

Net Income (Loss)

-28,945.00

402,793.00

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

 

 

Depreciation Expense

4,156.00

6,442.00

Investment Loss (Income) Recognized under Equity Method

7,720.00

132,572.00

Cash Dividends Received from Investments Accounted for under Equity Method

1,650.00

14,259.00

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

-9,226.00

-568,414.00

Other Adjustments to Reconcile Net Income

435.00

3,298.00

Changes in Operating Assets and Liabilities

 

 

Decrease (Increase) in Financial Assets Held for Trading

183.00

984.00

Decrease (Increase) in Notes Receivable

321.00

5,708.00

Decrease (Increase) in Accounts Receivable

-1,680.00

44,425.00

Decrease (Increase) in Inventories

-424,678.00

-312,161.00

Decrease (Increase) in Other Current Assets

-15,885.00

-2,378.00

Decrease (Increase) in Other Financial Assets

4,382.00

-3,790.00

Decrease (Increase) in Deferred Tax Assets

-2,514.00

17,780.00

Decrease (Increase) in Other Operating Assets

4,402.00

-1,102.00

Increase (Decrease) in Notes Payable

30,416.00

49,709.00

Increase (Decrease) in Accounts Payable

47,173.00

3,714.00

Increase (Decrease) in Accounts Payable - Related Parties

3,144.00

-38,275.00

Increase (Decrease) in Income Tax Payable

23,608.00

0.00

Increase (Decrease) in Accrued Expenses

-3,349.00

1,548.00

Increase (Decrease) in Other Current Liabilities

-5,862.00

-191.00

Net Cash Provided by (Used in) Operating Activities

-364,549.00

-243,079.00

Cash Flows from Investing Activities

 

 

Acquisition of Financial Assets as Fair Value through Profit or Loss

-2,000.00

0.00

Purchase of Property, Plant and Equipment

-2,867.00

973,414.00

Proceeds from Disposal of Property, Plant and Equipment

99,496.00

-82,117.00

Decrease (Increase) in Restricted Assets

71.00

-2,049.00

Net Cash Provided by (Used in) Investing Activities

94,700.00

889,248.00

Cash Flows from Financing Activities

 

 

Increase (Decrease) in Short-term Loans

0.00

-275,000.00

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

0.00

-49,962.00

Increase (Decrease) in Other Borrowings

0.00

136,429.00

Increase (Decrease) in Guarantee Deposits Received

-2.00

-358.00

Cash Dividends Paid

-41,586.00

0.00

Net Cash Provided by (Used in) Financing Activities

-41,588.00

-188,891.00

Effect of Exchange Rate Changes

0.00

0.00

Net Increase (Decrease) in Cash and Cash Equivalents

-311,437.00

457,278.00

Cash and Cash Equivalents, Beginning of year

549,660.00

92,382.00

Cash and Cash Equivalents, End of year

238,223.00

549,660.00

Supplemental Cash Flow Information

 

 

Interest Paid

10,917.00

10,197.00

Capitalized Interest

-10,880.00

-6,192.00

Interest Paid- Excluding Capitalized Interest

37.00

4,005.00

Income Tax Paid

653.00

0.00

Non-cash Investing and Financing Activities

 

 

Cumulative Translation Adjustments

-11,179.00

11,152.00

Others

0.00

875,696.00

 

 

Public Record

 

Mortgage

 

1

Case Type:

Chattel Mortgage

Certificate No.:

038512

Debtor Name:

Hong Ho Precision Textile Co., Ltd.

Document Number:

327142

Date of Registration:

1991-11-1

Date of Alteration:

1991-11-1

Status:

Paid off

2

Case Type:

Chattel Mortgage

Certificate No.:

044799

Debtor Name:

Hong Ho Precision Textile Co., Ltd.

Document Number:

198304

Date of Registration:

1994-4-12

Date of Alteration:

--

Status:

Paid off

3

Case Type:

Chattel Mortgage

Certificate No.:

059621

Debtor Name:

Hong Ho Precision Textile Co., Ltd.

Document Number:

830922

Date of Registration:

1998-10-14

Date of Alteration:

1999-6-10

Status:

Paid off

4

Case Type:

Chattel Mortgage

Certificate No.:

063849

Debtor Name:

Hong Ho Precision Textile Co., Ltd.

Document Number:

523101

Date of Registration:

1999-11-16

Date of Alteration:

--

Status:

Paid off

 

Lawsuit

 

Up to date of reporting, no existing or latent litigation of the subject has been found.

 

 

Interview Details

 

Name

Ms. Yang

Department

Sales Department

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.43

UK Pound

1

Rs.102.48

Euro

1

Rs.85.28

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.