MIRA INFORM REPORT

Report Date :

26.11.2014

IDENTIFICATION DETAILS

Name :	YUAN LONG STAINLESS STEEL CORP.

Formerly Known as :	Yuan Long Stainless Steel Corporation

Registered Office :	No.28, Daye S. Rd., Siaogang District, Kaohsiung City 812

Country :	Taiwan

Date of Incorporation :	09.12.2005

Com. Reg. No.:	27699704

Legal Form :	Joint Stock Company

Line of Business :	· engaged in manufacturing of steel products Engaged in steel rolling and squeezing Engaged in steel secondary processing Engaged in manufacturing of automobile and related components Subject product ranges includes · Stainless Steel Stainless Steel Packing

No. of Employees	About 200 Employees

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	Unknown

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 – June 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Taiwan

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:	Yuan Long Stainless Steel Corp.
Supplied Name:	YUAN LONG STAINLESS STEEL CORP
Trading Address:	No.28, Daye S. Rd., Siaogang District, Kaohsiung City 812, Taiwan (R.O.C.)
Supplied Address:	NO.28 DA - YE S. RD., HSIANO- KANG 812 KAO HSIUNG CITY TAIWAN
Telephone Number:	+886-7-975-7988
Fax Number:	+886-7-975-7989
E-mail:	sales@ylss.com.tw
Website:	www.ylss.com.tw

Notes: The exact name and address are as above.

Credit Summary

Credit Opinion:

Business connections are permissible.

Company Identification Details

Registered Name:	Yuan Long Stainless Steel Corp.
Registered Address:	No.28, Daye S. Rd., Siaogang District, Kaohsiung City 812, Taiwan (R.O.C.)
Date of Foundation:	2005-12-9
Registration Number:	27699704
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 2,000,000,000 (USD 68,000,000) (As of 2014.11, 1 NTD = 0.0340 USD)
Paid-up Capital:	NTD 2,000,000,000 (USD 68,000,000)
Legal Representatives:	Kunyan Li
Legal Form:	Joint Stock Company
Principal Activities:	· engaged in manufacturing of steel products Engaged in steel rolling and squeezing Engaged in steel secondary processing Engaged in manufacturing of automobile and related components
Staff:	About 200 Employees
Listed at Stock Exchange:	No
Date of Last Annual Return:	2014-7-21

History

Subject was incorporated on 2005-12-9 with registered number 27699704 as Joint Stock Company in Taiwan.

Change of Name

Former English Name:	Yuan Long Stainless Steel Corporation
Current English Name:	Yuan Long Stainless Steel Corp.

Corporate Structure

Factory

Address:	No.28, Daye S. Rd., Siaogang District, Kaohsiung City 812, Taiwan (R.O.C.)
Date of Registration:	2006-9-20
Factory Registration Number:	64006006
Factory Manager:	Kunyan Li
Status:	In Production
Date of Last Annual Return:	2008-4-15
Major Products:	241 steel

Shareholder

Major Shareholder

Name	Subscription Shares
Asia Cement Corporation	200,000,000

Shareholder Information:

Registered Name:	Asia Cement Corporation
Registered Address:	30th-31th Fls., Taipei Metro Tower No.207, Sec.2, Tun Hwa S. Rd., Taipei
Date of Foundation:	1957-3-21
Registration Number:	03244509
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 36,000,000,000 (USD 1,224,000,000) (As of 2014.11, 1 NTD = 0.0340 USD)
Paid-up Capital:	NTD 33,614,471,980 (USD 1,142,892,047)
Legal Representatives:	Xudong Xu
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2014-9-17

Management Information

Core Management

Directors

1
Name		Kunyan Li
Position		Board Chairman
2
Name	Xuping Xu
Position		Director
3
Name	Canfen Zheng
Position		Director
4
Name	Boran Zheng
Position		Director & Manager
Appointment Date of Manager		2013-6-28
5
Name	Chunming Chen
Position		Director
6
Name	Lingling Wu
Position		Supervisor
7
Name	Congming Chen
Position		Supervisor

Personnel Structure

Total Employees

About 200 Employees

Operation Information

Offices & Factories

	Headquarters
Add	No.28, Daye S. Rd., Siaogang District, Kaohsiung City 812, Taiwan (R.O.C.)

Production Information

l Subject is engaged in manufacturing of steel products, .

l Subject has a factory (about 73,000 square meters) in Kaohsiung City, Taiwan for production.

l Subject’s annual production capacity is about 130,000 MT.

l Subject obtained the certifications of ISO 9001, ISO 14001, OHSAS 18001, ISO 15506, .

l Subject’s major production facilities include bright annealing line, 20-high sendzimir mill, tension leveling line, skin pass mill, coil build-up line, coil grinding line, roll grinding machine, grinding and polishing line, coil inspection line, .

Purchase Information

l The registered activities of subject:

Business Code	Details
CA01020	Steel rolling and squeezing
CA01050	Steel secondary processing
CB01010	Manufacturing of machinery
CD01030	Manufacturing of automobile and related components
F106010	Wholesale of hardware
F111090	Wholesale of building materials
F199990	Other wholesale business
F401010	International trade business
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

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

Sales Information

l Subject is engaged in sale of steel products, .

l Subject’s major products are stainless steel and stainless steel packing, .

l Subject’s sales regions include Asia, Europe and America, .

l Subject’s major customers are Acinox S.A., Aceros Luisesco Sa, .

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

1. Domestic Purchase

Products	Raw materials,
Payment Terms	Cash, T/T,

2. Import

Products	Raw materials,
Payment Terms	T/T,

Sales

1. Domestic Markets

Product	Steel products,
Selling Terms	Cash, T/T,

2. Export

Product	Steel products,
Selling Terms	L/C, T/T,

Financial Information

Subject has no obligations to disclose its financial statements to the third party according to the relevant policy in Taiwan and the only source from which we can obtain the information is the subject itself.

Subject’s relevant staff Ms. Jian declined to disclose its financials citing the grounds of company’s confidentiality; from other sources we could not obtain such information, either.

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. Jian
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.92
UK Pound	1	Rs.97.12
Euro	1	Rs.76.93

INFORMATION DETAILS

Analysis Done by :	RAS

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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