MIRA INFORM REPORT

Report No. :	337085
Report Date :	21.08.2015

IDENTIFICATION DETAILS

Name :	YONG JU PRECISION TECHNOLOGY CO., LTD.

Registered Office :	1F., No.258, Dajhong S. St., South District, Taichung City 402, Taiwan (R.O.C.)

Country :	Taiwan

Date of Incorporation :	28.05.2007

Com. Reg. No.:	28723512

Legal Form :	Joint Stock Company

Line of Business :	Manufacturing and Sales of Machining Centers.

No. of Employees :	About 50

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 – March 31, 2015

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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. 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. However, follow-on components of the ECFA, including a signed agreement on trade in services and negotiations on trade in goods and dispute resolution, have stalled. In early 2014, the government bowed to public demand and proposed a new law governing the oversight of cross-Strait agreements, before any additional deals with China are implemented; the legislature has yet to vote on such legislation, leaving the future of ECFA up in the air as President MA enters his final full year in office. MA has portrayed ECFA as Taiwan’s key to greater participation in East Asia’s free trade networks.

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 expected to account for nearly 20% of the island's total population by 2025.

The island runs a trade surplus, largely because of its surplus with China, and its foreign reserves are the world's fifth largest, behind those of China, Japan, Saudi Arabia, 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, the Taiwan Central Bank signed a memorandum of understanding (MOU) 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 has helped Taiwan develop into a local RMB hub.

Closer economic links with the mainland bring greater opportunities for Taiwan’s economy but also pose new challenges as the island becomes more economically dependent on China at a time when political differences remain unresolved. During 2014, the press paid increasing attention to domestic economic issues, while pushing aside the debates over trade liberalization that were a hallmark of MA’s tenure. The media focused on the divide between Taiwan’s “haves” and “have nots,” providing extensive coverage of public frustration with stagnant wages, skyrocketing housing prices, and the difficulty of finding decent entry-level jobs.

Source : CIA

Contact Points

Company Name:	YONG JU PRECISION TECHNOLOGY CO., LTD.
Supplied Name:	YOUNG JU PRECISION TECHNOLOGY CO LTD
Trading Address:	No.6-2, Lane 292, Da Lin Road, Da Ya District, Taichung City, 42847, Taiwan, R.O.C
Supplied Address:	No 6-2 292 Lane Da Tin Rd, Da Ya District Taichung City Taiwan
Telephone Number:	+886-4-2565-3981
Fax Number:	+886-4-2560-8430

Notes: The exact name and address are as above.

Company Identification Details

Registered Name:	Yong Ju Precision Technology Co., Ltd.
Registered Address:	1F., No.258, Dajhong S. St., South District, Taichung City 402, Taiwan (R.O.C.)
Date of Foundation:	2007-5-28
Registration Number:	28723512
Registry:	Taichung City Government
Registered Capital:	NTD 60,000,000 (USD 1,926,000) (As of 2015.8, 1 NTD = 0.0321 USD)
Paid-up Capital:	NTD 60,000,000 (USD 1,926,000)
Legal Representatives:	Fushua Chen
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and Sales of Machining Centers.
Staff:	About 50 Employees (Taiwan)
Listed at Stock Exchange:	No
Date of Last Annual Return:	2012-3-14

History

Subject was incorporated on 2007-5-28 with registered number 28723512 as Joint Stock Company in Taiwan.

Corporate Structure

Factory

Address:	No.37, Lane 298, Beitun Rd., Beitun Dist., Taichung City, Taiwan (R.O.C.)
Date of Registration:	2009-2-17
Factory Registration Number:	99720549
Factory Manager:	Fushua Chen
Status:	In production
Date of Last Annual Return:	2009-2-17
Major Products:	291 machinery and equipment for processing metal

Related company

Name	Kunshan Chin Yong High Precision Machinery Co.,Ltd.
Address	5F, No.2001, Beimen Road, Chengbei Town, Kunshan City, Jiangsu Province, China.
Tel	+86-512-5777-9409
Fax	+86-512-5793-1256

Shareholders

Major Shareholders

Name	Subscription Shares
Fushua Chen	1,800,000
Zhengfang Chen	1,200,000
Wenjin Chen	1,200,000
Shuzhen Huang	600,000
Shufen Chen	1,200,000

Management Information

Core Management

Directors

1
Name		Fushua Chen
Position		Board Chairman
2
Name	Zhengfang Chen
Position		Director
3
Name	Wenjin Chen
Position		Director
4
Name	Shuzhen Huang
Position		Director
5
Name	Shufen Chen
Position		Supervisor

Personnel Structure

Total Employees

About 50 Employees (Taiwan)

Operation Information

Offices & Factories

	Headquarters
Add	No.6-2, Lane 292, Da Lin Road, Da Ya District, Taichung City, 42847, Taiwan, R.O.C

Production Information

Subject is engaged in manufacturing of machining centers.

Subject has a factory in Taiwan for production.

Subject has obtained certifications of ISO9001, ISO 14001, JISB6338, VDI/DGQ3441and ISO-8636.

Purchase Information

The registered activities of subject:

Business Code	Details
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

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

It is introduced that subject imports technology from abroad, such as Japan and Germany.

Sales Information

Subject is engaged in sale of machining centers.

It is introduced that subject’s products are mostly applied to industries of automotive and aircraft, etc.

Subject’s sales regions are Asia, Europe, America.

Subject’s major customers are manufacturers of machinery and equipment, mold factories, etc.

Major products

Types	Products
SDW series	Moving-crossrail (W-travel) Machining Center
SD series	Sliding Double Column Machining Center
GM series	Gantry type Machining Center
HDT series	Milling, Drilling & Tapping Machining Center
HRP series	High Rapidly Precision Machining Center
FDW series	Fixed Double Column Moving-Crossrail (W-travel) Machining Center
FD series	Fixed Double Column Machining Center
FQ Series	High-precision High-speed Fixed Double Column Machining Center

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Products	Raw material
Payment Terms	Cash, T/T

Import

Products	Raw material
Payment Terms	L/C, T/T

Sales

Domestic Markets

Product	Machining centers
Selling Terms	Cash, T/T

Export

Product	Machining centers
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 declined to disclose its financials citing the grounds of company’s confidentiality; from other sources we could not obtain such information, either.

Banker

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	Mr. Chen
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.23
UK Pound	1	Rs.102.20
Euro	1	Rs.72.57

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	TPT

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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