MIRA INFORM REPORT

 

 

Report Date :

30.05.2014

 

IDENTIFICATION DETAILS

 

Name :

SHIEH YIH MACHINERY INDUSTRY CO., LTD.

 

 

Registered Office :

No.446, Nan Shang Rd., Kueisan Hsiang, Taoyuan

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

02.03.1982

 

 

Com. Reg. No.:

36096704

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

engaged in manufacturing & sale of mechanical press including servo press, special application press, high speed press, C frame & straight 1~ 2 point mechanical presses.

 

 

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 – 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

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate 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:

Shieh Yih Machinery Industry Co., Ltd.

Supplied Name:

Shieh Yin Machinery Industries Co Ltd

Trading Address:

No.446, Nan Shang Rd., Kueisan Hsiang, Taoyuan, Taiwan

Supplied Address:

Factory No 446, Nan Shang Road, Kaeisan Hsiang Taoyuan

Telephone Number:

+886-3-212-1008/352-5466

Fax Number:

+886-3-212-1006/352-5488

 

Notes: The exact name and address are as above.

 

 

Credit Summary

 

Credit Opinion:

Business connections are permissible.

 

 

Company Identification Details

 

Registered Name:

Shieh Yih Machinery Industry Co., Ltd.

Registered Address:

No.446, Nan Shang Rd., Kueisan Hsiang, Taoyuan, Taiwan

Date of Foundation:

1982-3-2

Registration Number:

36096704

Registry:

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

Registered Capital:

NTD 2,028,000,000 (USD 67,126,800)

(As of 2014.05, 1 NTD = 0.0331 USD)

Paid-up Capital:

NTD 1,434,811,100 (USD 47,492,247)

Legal Representatives:

Yahui Guo

Legal Form:

Joint Stock Company

Principal Activities:

engaged in manufacturing & sale of mechanical press including servo press, special application press, high speed press, C frame & straight 1~ 2 point mechanical presses.

Staff:

About 400 Employees

Listed at Stock Exchange:

Yes; (Stock Code: 4533)

Date of Last Annual Return:

2013-7-3

 

 

History

 

Subject was incorporated on 1982-3-2 with registered number 36096704 as Joint Stock Company in Taiwan.

 

Subject was listed on Taiwan exchange on 2002-4-26.

 

 

Shareholders

 

Name

Subscription Shares

Yahui Guo

3,616,138         

Yucheng Investment Co., Ltd. (Literal Translation)

 

12,000,000

 

Ziwu Luo

1,130,831

 

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

Shareholder Information:

Name:

Yucheng Investment Co., Ltd. (Literal Translation)

Registered Address:

9F, No. 183, Gangqian Rd., Neihu Dist., Taipei City, Taiwan

Date of Foundation:

2009-11-27

Registration Number:

24483527

Registry:

Taipei City Government

Registered Capital:

NTD 150,000,000 (USD 4,965,000)

(As of 2014.5, 1 NTD = 0.0331 USD)

Paid-up Capital:

NTD 127,100,000 (USD 4,207,010)

Legal Representatives:

Xiue Chen

Legal Form:

Joint Stock Company

Listed at Stock Exchange:

No

Date of Last Annual Return:

2014-5-15

 

Subsidiaries & Branches

 

Factory

Address:

No.446, Nan Shang Rd., Kueisan Hsiang, Taoyuan, Taiwan

Date of Foundation:

1969-1-1

Date of Registration:

1983-1-31

Factory Registration Number:

99624211

Factory Manager:

Yahui Guo

Status:

In Production

Date of Last Annual Return:

2013-5-29

Major Products:

293 ordinary engineering devices

Relate Companies

1

Name:

Xie Yi Tech Machinery (China) Co., Ltd

Address:

No.88 Xing Puzhong Lu, Qiandeng Kunshan City, Jiangsu, China

Tel:

+86-512-5740-7900

Fax:

+86-512-5740-7899

2

Name:

Xie Yi Tech Machinery (China) Co., Ltd (Dongguan)

Address:

1F Hsin-sin Builing Kun-Don, Duan Bo Chong She Ho-Men Ehen

Tel:

+86-512-57407900

Fax:

+86-512-57407899

3

Name:

Seyi-America, Inc.

Address:

203 Lemon Creek Drive, Unit A, Walnut, Ca 91789 U.S.A.

Tel:

+1-909-839-1151

Fax:

+1-909-455-7700

4

Name:

Seyi-America, Inc.

Address:

843 Joint Park Blvd Tullahoma TN 37388

Tel:

+1-931-455-7700

Fax:

+1-931-455-6092

 

Personnel Information

 

Core Management

Directors

1

Name

Yahui Guo

Position

Chairman of the Board

2

Name

Gengyi Zheng

Position

Director

3

Name

Tingjun Guo

Position

Director

4

Name

Huixiong Yu

Position

Independent Director

5

Name

Haiqing Wang

Position

Independent Director

6

Name

Jinren Fu

Position

Supervisor

7

Name

Ziwu Luo

Position

Supervisor

 

Personnel Structure

Total Employees

About 400 Employees

 

Operation Information

 

Offices & Factories

 

Headquarters

Add

No.446, Nan Shang Rd., Kueisan Hsiang, Taoyuan, Taiwan

 

Production Information

l         Subject is engaged in manufacturing of mechanical press

l         Subject has a factory (about 12,500 square meters) in Taiwan for production.

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

 

Purchase Information

l         The registered activities of subject:

Business Code

Details

CB01010 

Machinery and equipment manufacturing

CB01990 

Other machinery manufacturing

I301010 

Information software services

I599990 

Other design

ZZ99999 

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

 

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

 

Sales Information

l         Subject is engaged in sale of mechanical press

l         The major products sold by subject include servo press, special application press, high speed press, C frame & straight 1~ 2 point mechanical presses

l         Subject’s sales regions include domestic market, Japan, Korea, Vietnam, India, Southeast Asia, US, Canada, Europe, Brazil, Australia, etc.

l         Subject has service carters in Tianjin City, Qingdao City, Kunshan City, Dongguan City, Fuzhou City, etc. of Mainland China.

 

Import and export right:

Import right

Yes

Export right

Yes

 

Settlements

 

Purchase

Domestic Purchase

Product

Terms

Proportion

Components and raw materials, etc.

T/T, Cash, etc

100%

 

Foreign Purchase

Product

Terms

Proportion

Components and raw materials, etc.

L/C, T/T, etc

100%

 

Sales

Domestic Markets

Product

Terms

Proportion

Mechanical press, etc.

T/T, Cash, etc

100%

Export

Product

Terms

Proportion

Mechanical press, 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

644,470.00

729,341.00

Changes in fair value included in the profits and losses of the financial assets - current

2,646.00

2,453.00

Notes receivable - net

88,070.00

138,119.00

Accounts receivable - net

150,683.00

194,425.00

Accounts receivable - related parties - net

102,812.00

193,149.00

Other receivables-current

9,809.00

11,757.00

Other receivables-related parties

105,343.00

55,924.00

Inventories

562,830.00

567,381.00

Other current assets

64,939.00

64,285.00

Current assets

1,731,602.00

(USD 57,316,026.20

1,956,834.00

(USD 64,771,205.40)

Financial assets for sale-non current

37,730.00

11,506.00

Cost measure of financial assets-non current

7,000.00

7,000.00

Equity method long term investment

1,324,336.00

1,281,821.00

Long-term investment fund in advance

60,047.00

0.00

Investment

1,384,383.00

1,281,821.00

Funds and investments

1,429,113.00

1,300,327.00

Land

125,720.00

125,720.00

Buildings and structures

222,623.00

218,839.00

Machinery and equipment

287,361.00

355,979.00

Transportation equipment

92.00

4,627.00

Office equipment

7,730.00

15,950.00

Other facilities

20,557.00

67,269.00

Revaluation increment

0.00

0.00

Cost and revaluation increment

664,083.00

788,384.00

Accumulated depreciation

-338,099.00

-442,049.00

Fixed assets-net

325,984.00

346,335.00

Computer software cost

16,403.00

13,329.00

Intangible Assets

16,403.00

13,329.00

Leasing assets

120,986.00

122,132.00

Refundable deposits

1,797.00

1,355.00

Deferred expenses

5,521.00

1,778.00

Other assets

128,304.00

125,265.00

Assets

3,631,406.00

3,742,090.00

Short-term borrowings

153,446.00

11,834.00

Notes payable

3,216.00

5,344.00

Accounts payable

579,414.00

658,017.00

Accounts payable-related parties

1,895.00

4,281.00

Expenses payable

93,483.00

118,361.00

Advance receipt

159,538.00

88,436.00

Long term Liabilities within one year and one operating cycle

0.00

56,773.00

Other current liabilities

5,616.00

3,443.00

Current liabilities

996,608.00

946,489.00

Long-term borrowings

303,280.00

412,652.00

Long-term liabilities

303,280.00

412,652.00

Pension reserve / accrued pension liability

151,037.00

145,861.00

Deposits received

363.00

352.00

Deferred income tax

112,197.00

112,437.00

Other liabilities-other

5,900.00

4,095.00

Other liabilities

269,497.00

262,745.00

Liabilities

1,569,385.00

1,621,886.00

Common stock

1,434,811.00

1,454,811.00

Capital surplus-share premium account

309,716.00

349,220.00

Capital surplus-storage stock trading

5,030.00

0.00

Capital surplus-employee stock options

2,378.00

2,378.00

Capital surplus

317,124.00

351,598.00

Legal reserve

152,764.00

134,986.00

Inappropriate retained earnings

122,019.00

106,429.00

Retained earnings

274,783.00

241,415.00

Cumulative translation adjustments

47,473.00

89,210.00

Net loss not recognized as pension cost

19,165.00

2,941.00

Treasury stock

-31,335.00

-19,771.00

Stockholders‘ equity and other adjustment

35,303.00

72,380.00

Stockholders‘ equity

2,062,021.00

(USD 68,252,895.10)

2,120,204.00

(USD 70,178,752.40)

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

3,047,000.00

2,000,000.00

(As of 2014.05, 1 NTD = 0.0331 USD)

 

Profit/Loss Account

Unit: NTD/000

 

2012

2011

Sales

1,907,246.00

(USD 63,129,842.60)

2,384,719.00

(USD 78,934,198.90)

Sales of depreciation

1,428.00

2,682.00

Sales net income

1,905,818.00

2,382,037.00

Other operating income

51,398.00

55,063.00

Operating income

1,957,216.00

2,437,100.00

Cost of sales

1,525,595.00

1,940,017.00

Other operating costs

4,556.00

5,829.00

Operating costs

1,530,151.00

1,945,846.00

Gross profit (loss) from operations

427,065.00

491,254.00

Affiliate companies unrealized profits

5,900.00

4,095.00

Affiliate companies realized profits

4,095.00

10,293.00

Distribution cost

219,155.00

269,653.00

General and administrative expenses

102,613.00

132,409.00

Research and development expenses

63,823.00

37,365.00

Operating expenses

385,591.00

439,427.00

Operating income (loss)

39,669.00

58,025.00

Interest income

5,250.00

2,329.00

Investment income

93,930.00

129,461.00

Investment income of equity method

93,256.00

129,118.00

Income gain

674.00

343.00

Gains on disposal of fixed assets

23.00

0.00

Interest on exchange

0.00

21,910.00

Rental income

5,784.00

5,673.00

Financial assets evaluation

193.00

0.00

Financial liability evaluation

1,890.00

0.00

Miscellaneous income

29,618.00

19,759.00

Non-operating revenues and gains

136,688.00

179,132.00

Interest expense

7,049.00

8,015.00

Fix assets loss

9.00

614.00

Loss on exchange

19,446.00

0.00

Financial assets evaluation loss

0.00

48.00

Miscellaneous expenses

2,368.00

8,134.00

Non-operating expenses and losses

28,872.00

16,811.00

Net pre-tax profit (loss) of continue to business units

147,485.00

220,346.00

Income tax expense (benefit)

25,466.00

42,563.00

Net interest (loss) from continuing operations

122,019.00

177,783.00

Net income (loss)

122,019.00

177,783.00

Primary Earnings per Share

0.86

1.24

(As of 2014.05, 1 NTD = 0.0331 USD)

 

Financial Ratio

 

 

2012

2011

Net income (loss)

122,019.00

177,783.00

Depreciation expense

30,659.00

34,770.00

Amortization expense

5,009.00

4,300.00

Bad debt expense item number (income)

-14,931.00

6,134.00

Obsolete stocks, scrap and bed debts loss (back up interest)

299.00

-8,470.00

Investment loss (income) recognized under equity method

-93,256.00

-129,118.00

Disposition and discard fixed assets losses (interest)

-14.00

614.00

Financial assets and liabilities unrealized loss evaluation (interest)

-193.00

48.00

Unrealized profits and losses between affiliate companies

1,805.00

0.00

Realized profits and losses between affiliate companies

0.00

-6,198.00

Loss (gain) on deferred income tax

21,312.00

40,426.00

Operating assets and liabilities net change

 

 

Notes receivable (increase) decrease

50,329.00

-27,389.00

Accounts receivable (increase) decrease

58,393.00

2,368.00

Decrease (increase) in accounts receivable - related parties

90,337.00

-33,763.00

Other accounts receivable (increase) decrease

1,948.00

721.00

Decrease (increase) in other accounts receivable - related parties

-49,419.00

-55,924.00

Decrease (increase) in inventories

4,252.00

-68,913.00

Increase (decrease) in accounts payable

-20,442.00

-2,013.00

Increase (decrease) in other operating assets

0.00

-1,699.00

Increase (decrease) in notes payable

-2,128.00

-9,601.00

Increase (decrease) in accounts payable

-78,603.00

32,178.00

Increase (decrease) in accounts payable- related parties

-2,386.00

4,281.00

Increase (decrease) in accounts payable

-23,199.00

66,345.00

Decrease (increase) in other accounts receivable - related parties

0.00

-11,553.00

Decrease (increase) in advance receipt

71,102.00

10,645.00

Decrease (increase) in other current assets

2,173.00

-242.00

Decrease (increase) inaccrued pension liabilities

5,176.00

3,759.00

Net cash provided by (used in) operating activities

180,242.00

29,489.00

Net cash of investment activities

 

 

Gain financial assets for sale

-10,000.00

0.00

Increase (decrease) in long term investment amount

-60,047.00

0.00

Acquisition of fixed assets

-9,172.00

-11,658.00

Discipline fixed assets amount

24.00

0.00

Increase (decrease) in refundable deposits

-442.00

-7.00

Increase in deffered expenses

-4,900.00

0.00

Increase (decrease) in restricted assets

7,240.00

9,764.00

Purchase of intangible assets

-8,605.00

-11,296.00

Net cash provided by (used in) investing activities

-85,902.00

-13,197.00

Cash flow of financing activities

 

 

Increase (decrease) in short term borrowing

141,612.00

1,847.00

Long term borrowing

1,308,980.00

495,000.00

Repay long-term borrowing

-1,475,125.00

-296,345.00

Increase (decrease) in deposits received

11.00

62.00

Issue cash stock interest

-123,354.00

-86,089.00

Storage stocks to buy back the cost

-31,335.00

0.00

Net cash provided by (used in) financing  activities

-179,211.00

114,475.00

Net increase (decrease) in cash and cash equivalents

-84,871.00

130,767.00

Cash and cash equivalents, beginning of year

729,341.00

598,574.00

Cash and cash equivalents, end of year

644,470.00

729,341.00

Complementary reveal of cash flow

 

 

Interest paid

7,569.00

7,836.00

Decrease: capitalized interest

0.00

0.00

Interest paid- excluding capitalized interest

7,569.00

7,836.00

Income tax paid

4,370.00

3,869.00

Investment and financing activities non influencing cash flow

 

 

Long-term debt in one year

0.00

56,773.00

 

Note: We cannot obtain the new financial information of 2013, and the subject declined to disclose the information, either.

 

 

Bankers

 

Subject declined to disclose any information about bankers, and we can not obtain the information from other source.

 

 

Public Record

 

Mortgage

1

Case Type:

Chattel Mortgage

Certificate No.:

074479

Debtor Name:

Shieh Yih Machinery Industry Co., Ltd.

Document Number:

09105151880

Date of Registration:

2002-11-18

2

Case Type:

Chattel Mortgage

Certificate No.:

080901

Debtor Name:

Shieh Yih Machinery Industry Co., Ltd.

Document Number:

09305167980

Date of Registration:

2004-9-8

3

Case Type:

Chattel Mortgage

Certificate No.:

080903

Debtor Name:

Shieh Yih Machinery Industry Co., Ltd.

Document Number:

09305167990

Date of Registration:

2004-9-8

 

Lawsuit

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

 

 

Interview Details

 

Name

Mr. Guo

Department

Sales Department

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.84

UK Pound

1

Rs.98.41

Euro

1

Rs.80.03

 

 

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.