MIRA INFORM REPORT

 

 

Report Date :

14.05.2014

 

IDENTIFICATION DETAILS

 

Name :

VICTOR TAICHUNG MACHINERY WORKS CO., LTD.

 

 

Registered Office :

No. 2088, Section 4, Taiwan Boulevard Road, Taichung 407, Taiwan, R.O.C.

 

 

Country :

Taiwan

 

 

Financials (as on) :

30.06.2013

 

 

Date of Incorporation :

08.10.1963

 

 

Com. Reg. No.:

51817603

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and sales of machining centers.

 

 

No. of Employees

850

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Taiwan

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  High Risk

C1

High Risk

 

C2

Very High Risk

 

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:

Victor Taichung Machinery Works Co., Ltd.

Supplied Name:

Victor Taichung Machinery Works Co Ltd

Trading Address:

No.266, Sec.3, Taichung Kan Road, Taichung, Taiwan, R.O.C.

Supplied Address:

266, Sec 3, Taichung Kan Rd,

Telephone Number:

+886-4-2359-2101

Fax Number:

+886-4-2359-2943

E-mail:

info@mail.or.com.tw

Website:

www.or.com.tw

Notes: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

Victor Taichung Machinery Works Co., Ltd.

Registered Address:

No. 2088, Section 4, Taiwan Boulevard Road, Taichung 407, Taiwan, R.O.C.

Date of Foundation:

1963-10-8

Registration Number:

51817603

Registry:

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

Registered Capital:

NTD 2,000,000,000 (USD 68,000,000)

(As of 2014.05, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 1,100,000,000 (USD 37,400,000)

Legal Representatives:

Minghe Huang

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sales of machining centers.

Staff:

About 850 Employees

Status:

Manufacturing and sale of machinery, etc

Listed at Stock Exchange:

No

Date of Last Annual Return:

2014-4-22

 

 

History

 

Subject was incorporated on 1963-10-8 with registered number 51817603 as Joint Stock Company in Taiwan.

Subject was listed on Taiwan stock exchange on 1990-11-30 with stock symbol: 8707 and delisted on 1998-11-17.

From subject’s history, we found the local court judged subject reorganization on 2000-3-25 and it has been finished on 2013-10-21.

Definition of reorganization:

A process designed to revive a financially troubled or bankrupt firm. Reorganization involves the restatement of assets and liabilities, as well as holding talks with creditors in order to make arrangements for maintaining repayments.

 

 

Shareholders

 

Name

Subscription Shares

V.T.M. Company Ltd.

6,000,010

Juhe Investment Co., Ltd. (Literal Translation)

10,993,026

Juzhong Investment Co., Ltd. (Literal Translation)

10,991,163

Tingyun Huang

8,939

Dingyao Investment Co., Ltd. (Literal Translation)

10,434,730

 

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


Subsidiaries & Branches

 

1

Registered Name:

V.T.M. Company Ltd.

Registered Address:

13-1, 11th Rd., Taichung Industrial Park, Taichung, Taiwan, R.O.C.

Date of Foundation:

1987-1-24

Registration Number:

22384114

Registry:

Taichung City Government

Registered Capital:

NTD 120,000,000 (USD 4,080,000)

(As of 2014.05, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 120,000,000 (USD 4,080,000)

Legal Representatives:

Juhe Investment Co., Ltd. (Literal Translation)

Legal Form:

Joint Stock Company

Listed at Stock Exchange:

No

Date of Last Annual Return:

2013-7-11

2

Registered Name:

Juhe Investment Co., Ltd. (Literal Translation)

Registered Address:

1st Floor, No.1, Lane 121, Furen Street, Tuku Li, West District, Taichung City, Taiwan

Date of Foundation:

2002-10-8

Registration Number:

80055370

Registry:

Taichung City Government

Registered Capital:

NTD 5,500,000 (USD 187,000)

(As of 2014.05, 1 NTD = 0.0340 USD)

Legal Representatives:

Dechuan Liao

Legal Form:

Private Limited Liabilities Company

Listed at Stock Exchange:

No

Date of Last Annual Return:

2013-8-19

3

Registered Name:

Dingyao Investment Co., Ltd. (Literal Translation)

Registered Address:

4/F-1, No.262, Sec 2, Henan Road, Fengjia Li, Xitun District, Taichung City, Taiwan

Date of Foundation:

2000-11-2

Registration Number:

12646618

Registry:

Taichung City Government

Registered Capital:

NTD 5,000,000 (USD 170,000)

(As of 2014.05, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 5,000,000 (USD 170,000)

Legal Representatives:

Shihong Chen

Legal Form:

Joint Stock Company

Listed at Stock Exchange:

No

Date of Last Annual Return:

2012-10-26

Factories

1

Address:

No. 2088, Section 4, Taiwan Boulevard Road, Taichung 407, Taiwan, R.O.C.

Date of Foundation:

1972-8-16

Date of Registration:

1973-9-30

Factory Registration Number:

99670361

Factory Manager:

Minghe Huang

Status:

In Production

Date of Last Annual Return:

2014-3-4

Major Products:

291 metal processing machinery

293 general machinery

319 Other unclassified transport machine and parts

2

Name:

Houli Casting Factory

Address:

No.13, Wansheng Lane, Guangfu Li Neidong Road, Houli District, Taichung City, Taiwan

Telephone Number:

+886-4-2557-5533

Fax Number:

+886-4-2557-2211

Date of Foundation:

1985-6-28

Date of Registration:

1986-1-6

Factory Registration Number:

99636127

Factory Manager:

Minghe Huang

Status:

In Production

Date of Last Annual Return:

2002-6-3

Major Products:

259 other metal products

3

Name:

Taichung Industrial Factory

Address:

No.13, 11th Road, Taichung Industrial Park, Taichung City, Taiwan

Telephone Number:

+886-4-2359-0919

Fax Number:

+886-4-2359-2425

Date of Foundation:

1981-7-23

Date of Registration:

1989-5-24

Factory Registration Number:

99670210

Factory Manager:

Minghe Huang

Status:

In Production

Date of Last Annual Return:

1989-5-24

Major Products:

292 other special-purpose mechanical device

269 other electronic components

4

Name:

Lugang Plant

Address:

No.5, 6th Logong South Road, Dongshi Li, Lugang Town, Changhua County, Taiwan

Telephone Number:

+886-47-813633

Fax Number:

+886-47-813630

Date of Registration:

2010-4-14

Factory Registration Number:

99681147

Factory Manager:

Minghe Huang

Status:

In Production

Date of Last Annual Return:

2010-4-14

Major Products:

291 metal processing machinery

254 metal processing

Major Related Companies

1

Name:

Zhong Tai Precision Machinery (Tianjin) Co., Ltd.

Address:

No.16, Economic And Technical Development Zone 4th Street, Tianjin City, China

Telephone Number:

+86-22-2532-1592

Fax Number:

+86-22-2532-2805

2

Name:

Zhong Tai Precision Machinery (Tianjin) Co., Ltd.

Address:

No.2, Jianye 1st Road, East Zone, Guangzhou Economic And Technical Development Zone, Guangzhou City, Guangdong Province, China

Telephone Number:

+86-20-8226-4885

Fax Number:

+86-20-8226-4861

 

 

Personnel Information

 

Core Management

 

Directors

1

Name

Minghe Huang

Position

Board Chairman/ Manager

Date of Appointment

1997-12-1

2

Name

Meixing Lu

Position

Deputy Chairman

3

Name

Dechuan Liao

Position

Director

4

Name

Shihua Qiu

Position

Director

5

Name

Shihong Chen

Position

Director

6

Name

Yiying Huang

Position

Director

7

Name

Wenzhi Xu

Position

Director

8

Name

Tingyun Huang

Position

Supervisor

9

Name

Canhui Chen

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 850 Employees

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

1F, No.266, Sec.3, Taichung Kan Road, Taichung, Taiwan, R.O.C.

Production Information

 

l         Subject is engaged in manufacturing of machining centers, etc.

l         Subject has factories in Taiwan for production.

l         Subject obtained the certifications of ISO 9001 and ISO 14001.

 

Purchase Information

 

l         The registered activities of subject:

Business Code

Details

--

Manufacturing and sales of precision high speed lathe, computerized numerical control lathe, mvery singleining center

--

Manufacturing and sales of injection molding machine

--

Manufacturing and sales of all kinds of rubber machinery

--

Manufacturing and sales of all kinds of valves

--

Manufacturing and sales of all kinds of metal plate

--

Manufacturing and sales of all kinds of aviation equipment parts

--

Manufacturing and sales of all kinds of electronic machinery and equipment

--

Manufacturing and sales of all kinds of machinery parts

--

Import and export of above items and its related parts

--

Purchasing of raw materials for its related company in foreign countries

--

Import of its related company products in foreign countries

--

As agent and marketing of all kinds of above mentioned items.

--

Import and export of building materials and construction machinery

CA04010

Metal surface treatment business

CB01010

Manufacturing of machinery

CC01080

Manufacturing of electronic components

E301010

Water treatment engineering business

J101040

Waste disposal business

F401010

International trade business

F401021

Import of Rf equipment controlled by telecommunications regulation

 

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

l         It is introduced that subject imports technology from Japan and Germany, etc.

 

Sales Information

 

l         Subject is engaged in sales of machining centers, etc.

l         The major products sold by subject include CNC machine center, vertical machine centre and horizontal machining center.

l         Subject’s sales regions include Taiwan, mainland China, other Asian countries, Europe, South Africa, and America, etc.

l         It is introduced that subject has technical support and distribution centers in USA, UK, France, German, South Africa, Malaysia, Thailand, and China.

l         Subject has their own brands “VICTORY” and “FORTUNE”.

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase

Product

Terms

Proportion

Components

Cash, T/T, etc

100%

 

Foreign Purchase

Product

Terms

Proportion

Components

L/C, T/T, etc

100%

Sales

 

Domestic Markets

Product

Terms

Proportion

Machines

Cash, T/T, Credit Sale, etc

100%

 

Export

Product

Terms

Proportion

Machines

L/C, T/T, etc

100%

 

 

Balance Sheet

 

Unit: NTD/000

Date

2013-6-30

2012-6-30

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

208,158.00

521,277.00

Available-for-sale financial assets - current

5,672.00

4,699.00

Notes receivable - net

164,929.00

145,211.00

Notes receivable - related parties - net

69,245.00

88,642.00

Accounts receivable - net

401,998.00

472,293.00

Accounts receivable - related parties - net

677,135.00

794,606.00

Other receivables - related parties

179,436.00

99,789.00

Other financial assets - current

37,165.00

38,728.00

Inventories

1,393,267.00

1,571,904.00

Other current assets

187,615.00

211,627.00

Current assets

3,324,620.00

3,948,776.00

Funds and Investments

 

 

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

13,563.00

13,615.00

Equity investments under equity method

448,544.00

438,059.00

Investments

448,544.00

438,059.00

Funds and investments

462,107.00

451,674.00

Fixed Assets

 

 

Cost

 

 

Land

227,212.00

227,212.00

Land improvements

5,884.00

5,884.00

Buildings and structures

602,364.00

606,531.00

Machinery and equipment

252,159.00

249,373.00

Transportation equipment

45,511.00

44,795.00

Office equipment

8,402.00

11,061.00

Leasing assets

200,556.00

200,556.00

Other facilities

103,777.00

112,366.00

Revaluation increment

155,565.00

155,565.00

Cost and revaluation increment

1,601,430.00

1,613,343.00

Accumulated depreciation

-498,839.00

-441,191.00

Construction in process and prepayment for equipments

241.00

788.00

Fixed assets

1,102,832.00

1,172,940.00

Intangible Assets

 

 

Deferred pension costs

0.00

0.00

Intangible assets

0.00

0.00

Other Assets

 

 

Assets leased

190,869.00

197,439.00

Deferred expenses

0.00

0.00

Long-term notes, account receivables - related parties

0.00

0.00

Deferred income tax assets - non current

56,323.00

48,920.00

Other assets - other

16,902.00

23,083.00

Other assets

264,094.00

269,442.00

Assets

5,153,653.00

5,842,832.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

Short-term borrowings

250,000.00

229,112.00

Short-term notes and bills payable

0.00

0.00

Accounts payable

827,505.00

847,999.00

Accounts payable - related parties

127,891.00

227,899.00

Income tax payable

36,572.00

53,267.00

Accrued expenses

168,924.00

223,867.00

Other accrued payables

0.00

0.00

Long-term liabilities -current portion

59,167.00

146,739.00

Other current liabilities

99,649.00

111,437.00

Current liabilities

1,569,708.00

1,840,320.00

Long-term Liabilities

 

 

Long-term loans

86,911.00

501,792.00

Long-term notes and accounts payable

186,646.00

194,874.00

Long-term liabilities

273,557.00

696,666.00

Reserves

 

 

Reserve for land revaluation increment tax

54,095.00

54,095.00

Reserves

54,095.00

54,095.00

Other Liabilities

 

 

Pension reserve / accrued pension liability

366,659.00

345,597.00

Other liabilities - other

0.00

0.00

Other liabilities

366,659.00

345,597.00

Liabilities

2,264,019.00

2,936,678.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

1,100,000.00

1,100,000.00

Capital Surplus

 

 

Capital surplus - share premium

235,701.00

235,701.00

Capital surplus - treasury stock transactions

1,253.00

1,253.00

Capital surplus - gain on sale of fixed assets

2,142.00

2,142.00

Capital surplus - long-term investment

14,003.00

14,003.00

Capital surplus

253,099.00

253,099.00

Retained Earnings

 

 

Legal reserve

382,893.00

382,893.00

Unappropriated retained earnings

955,106.00

1,000,807.00

Retained earnings

1,337,999.00

1,383,700.00

Stockholders' Equity and Other adjustment

 

 

Cumulative translation adjustments

315,768.00

295,146.00

Net loss not recognized as pension cost

-204,984.00

-212,570.00

Unrealized gains (losses) on financial instruments

4,299.00

3,326.00

Unrealized revaluation increments

87,151.00

87,151.00

Treasury stock

-3,698.00

-3,698.00

Stockholders' equity and other adjustment

198,536.00

169,355.00

Stockholders‘ equity

2,889,634.00

(USD 98,247,556.00)

2,906,154.00

(USD 98,809,236.00)

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 2014.05, 1 NTD = 0.0340 USD)

 

 

Profit and Loss Account

 

Unit: NTD/000

Date

2012-7-1~2013-6-30

2011-7-1~2012-6-30

Sales

2,078,912.00

2,757,398.00

Sales returns

5,523.00

15,080.00

Sales

2,073,389.00

(USD 70,495,226.00)

2,742,318.00

(USD 93,238,812.00)

Operating income

2,073,389.00

2,742,318.00

Operating costs

1,778,764.00

2,292,900.00

Gross profit (loss) from operations

294,625.00

449,418.00

Unrealized gains on intercompany transactions

0.00

0.00

Realized gains on intercompany transactions

1,381.00

206.00

Selling expense

172,640.00

261,015.00

General and administrative expenses

59,992.00

69,135.00

Research and development expenses

80,933.00

79,806.00

Operating expenses

313,565.00

409,956.00

Operating income (loss)

-17,559.00

39,668.00

Non-Operating Income

 

 

Interest income

960.00

608.00

Investment income

0.00

0.00

Income from investments under the equity method

0.00

0.00

Gains on sale of fixed assets

0.00

0.00

Foreign exchange gains

34,797.00

0.00

Rent income

6,256.00

5,114.00

Miscellaneous income

3,930.00

14,419.00

Non-operating revenues and gains

45,943.00

20,141.00

Non-Operating Expenses

 

 

Interest expenses

6,267.00

6,653.00

Investment losses

17,261.00

32,397.00

Foreign exchange loss

0.00

20,712.00

Impairment loss on assets

0.00

0.00

Miscellaneous disbursements

3,286.00

2,448.00

Non-operating expenses and losses

26,814.00

62,210.00

Income from continuing operations before income tax

1,570.00

-2,401.00

Income tax expense (benefit)

14,901.00

26,579.00

Income from continuing operations

-13,331.00

-28,980.00

Net income (loss)

-13,331.00

(USD -453,254.00)

-28,980.00

(USD -985320.00)

 (As of 2014.05, 1 NTD = 0.0340 USD)

Note: Since subject is not a public company now, we could just obtain the above financial information from public files for reference.

 

 

Bankers

 

Subject declined to disclose its bank details; from other source we cannot obtain the relevant information, either.


Public Record

 

Mortgage

 

1

Case Type:

Conditional Sale

Certificate No.:

027903

Debtor Name:

Victor Taichung Machinery Works Co., Ltd.

Document Number:

09305084890

Date of Registration:

2004-3-5

Status:

Paid off

2

Case Type:

Chattel Mortgage

Certificate No.:

097558

Debtor Name:

Victor Taichung Machinery Works Co., Ltd.

Document Number:

09830449710

Date of Registration:

2009-6-17

 

 

Interview Details

 

Name

Ms. Chen

Department

Sales Department

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.87

UK Pound

1

Rs.100.98

Euro

1

Rs.82.40

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.