|
Report No. : |
352249 |
|
Report Date : |
03.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
KMC (KUEI MENG) INTERNATIONAL INC. |
|
|
|
|
Registered Office : |
8F.-5, No.425, Jhonghua Rd., Yongkang Dist.,
Tainan City 710, (R.O.C.) |
|
|
|
|
Country : |
Taiwan |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
20.04.1989 |
|
|
|
|
Com. Reg. No.: |
22099483 |
|
|
|
|
Legal Form : |
Joint Stock Company |
|
|
|
|
Line of Business : |
Manufacturing and Sales of Bicycle Chain and
Motorcycle Component. |
|
|
|
|
No. of Employees : |
About 200 Employees (Taiwan) About 5000 Employees (Group) |
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, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Taiwan |
A1 |
A1 |
|
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 |
|
Company Name: |
|
|
Supplied Name: |
|
|
Trading Address: |
8F.-5, No.425, Jhonghua Rd., Yongkang Dist.,
Tainan City 710, Taiwan (R.O.C.) |
|
Supplied Address: |
8F-5, NO.425, JHONGHUA RD.,YONGKANG
DIST.,TAINAN CITY 710, TAIWAN |
|
Telephone Number: |
+886-6-303-7111 |
|
Fax Number: |
|
|
E-mail: |
Notes: The exact name and address are as above.
Subject was incorporated on 1989-04-20 with registered number 22099483 as Joint Stock Company in
Taiwan.
Change of Name
|
Former English
Name: |
Cnet Technology Inc. |
|
Current English
Name: |
KMC (Kuei Meng) International Inc. |
Subject listed on
Taiwan Over-The-Counter Securities Exchange on 1995-12-26.
Related Companies
|
1 |
|
|
Name |
KMC Chain Ind.
Co., Ltd |
|
Tel |
+886-6-201-9103 |
|
Fax |
+886-6-201-9107 |
|
2 |
|
|
Name |
Cnet Technology
Corporation |
|
Region |
America |
|
3 |
|
|
Name |
KMC Transmission
(Cheng Du) Co., Ltd. |
|
Tel |
+86-28-8485-2227 |
|
4 |
|
|
Name |
KMC Chain
(Vietnam) Co., Ltd. |
|
Tel |
+84-8-866-2823 |
|
5 |
|
|
Name |
KMC Transmission
(S.H.) Co., Ltd. |
|
Tel |
+86-512-5345-1661 |
Major Shareholders
|
Name |
Subscription Shares |
|
KMC Transton Industries Limited |
|
|
45,154,530 |
|
|
Dingnan Gao |
1,853,890 |
Shareholder
Information:
|
Registered Name: |
KMC Transton Industries Limited |
|
Registered Address: |
8F.-1, No.425, Jhonghua Rd., Yongkang Dist., Tainan City 710, Taiwan
(R.O.C.) |
|
Date of Foundation: |
1991-01-14 |
|
Registration Number: |
23968994 |
|
Registry: |
Department of
Commerce, Ministry of Economic Affairs, R.O.C. |
|
Registered Capital: |
NTD 500,000,000 (USD 15,500,000) (As of 2015.12, 1 NTD = 0.031 USD) |
|
Paid-up Capital: |
NTD 500,000,000 (USD 15,500,000) |
|
Legal Representatives: |
Yingjin Wu |
|
Legal Form: |
Joint Stock
Company |
|
Date of Last Annual Return: |
2013-10-22 |
Core Management
Directors
|
1 |
||
|
Name |
Yingjin Wu |
|
|
Position |
Chairman of the
Board |
|
|
2 |
||
|
Name |
Ruizhang Wu |
|
|
Position |
Director &
Manager |
|
|
Date of
Appointment for Manager |
2011-10-04 |
|
|
3 |
||
|
Name |
Jiongfen Wang |
|
|
Position |
Director |
|
|
4 |
||
|
Name |
Jincheng Jian |
|
|
Position |
Independent
Director |
|
|
5 |
||
|
Name |
Minglong Wang |
|
|
Position |
Independent
Director |
|
|
6 |
||
|
Name |
Yanggang Xu |
|
|
Position |
Supervisor |
|
|
7 |
||
|
Name |
Dingnan Gao |
|
|
Position |
Supervisor |
|
Personnel
Structure
|
Total Employees |
About 200
Employees (Taiwan) About 5000
Employees (Group) |
Offices &
Factories
|
|
Headquarters |
|
Add |
8F.-5, No.425,
Jhonghua Rd., Yongkang Dist., Tainan City 710, Taiwan (R.O.C.) |
Production
Information
Subject is engaged
in manufacturing of bicycle chain and motorcycle component, etc.
It is introduced
that subject has factories in Taiwan, and subject’s group has factories in
Shenzhen, Guangdong Province, China and Vietnam. But we didn’t obtain the
detail information.
Subject obtained
the certification of ISO 9002.
Purchase
Information
The
registered activities of subject:
|
Business Code |
Details |
|
CC01060 |
Cable machinery equipment manufacturing industry |
|
CC01070 |
Wireless communications equipment manufacturing machinery |
|
CC01101 |
Controlled telecommunications radio-frequency devices manufacturing |
|
F401010 |
The international trade |
|
CC01110 |
Computer and peripheral equipment manufacturing industry |
|
F114030 |
Gasoline, locomotive parts equipped with wholesalers |
|
F214030 |
Equipped with car, motorcycle parts retail |
|
CD01040 |
The locomotive and its parts manufacturing |
|
CD01050 |
Bicycle and parts manufacturing |
|
CD01990 |
Other means of transport and its parts manufacturing |
|
F114040 |
Wholesaling bicycle and its parts |
|
F214040 |
Bicycles and spare parts retail |
|
F214990 |
Other means of transport and its spare parts retail |
|
F114990 |
Other means of transport and its parts wholesaling |
|
ZZ99999 |
Besides licensed business, all other business items those are not
banned or restricted. |
The components and
raw materials for production are purchased from both home and abroad.
Subject is engaged in sales of bicycle chain and motorcycle component,
etc.
The major products
are engine chain, motorcycle chain, bicycle assembler, etc.
The brand of
subject’s products is “KMC”.
The products are
applied in mountain bike, road bicycle, performance car, Comfort Bike, etc.
Subject’s sales
regions include domestic market, Southeast Asia, America and Europe, etc.
One of subject’s
major customers is MTB Bundesliga International.
Import and export
right:
|
Import right |
Yes |
|
Export right |
Yes |
Purchase
Domestic
Purchase
|
Products |
Raw materials and components, etc. |
|
Payment Terms |
T/T, Cash, etc. |
Import
|
Products |
Raw materials and components, etc. |
|
Payment Terms |
L/C, T/T, etc. |
Domestic Markets
|
Product |
Bicycle chain and motorcycle component, etc. |
|
Selling Terms |
T/T, Cash, etc. |
Export
|
Product |
Bicycle chain and motorcycle component, etc. |
|
Selling Terms |
L/C, T/T, etc. |
Unit: NTD/000
|
Consolidated |
2014-12-31 |
2013-12-31 |
|
Current Assets |
|
|
|
Cash and cash equivalents |
664,199 |
680,737 |
|
Notes receivable - net |
34,891 |
33,209 |
|
Accounts receivable - net |
369,017 |
231,509 |
|
Accounts receivable - related parties - net |
41,411 |
12,603 |
|
Tax assets |
8,809 |
3,954 |
|
Inventories |
525,093 |
507,869 |
|
Other current assets |
269,528 |
51,334 |
|
Current assets |
1,912,948 |
1,521,215 |
|
Non-current available-for-sale financial assets, net |
0 |
13,711 |
|
Real property, plant and equipment |
823,726 |
498,374 |
|
Net investment real estate |
38,831 |
39,254 |
|
Intangible Assets |
385,014 |
259,065 |
|
Deferred income tax assets |
72,733 |
67,805 |
|
Other non-current assets |
275,152 |
189,918 |
|
Non-current assets |
1,595,456 |
1,068,127 |
|
Liabilities |
3,508,404 |
2,589,342 |
|
Current Liabilities |
|
|
|
Short-term borrowing |
86,256 |
468,866 |
|
Short-term notes and bills payable |
0 |
49,997 |
|
Notes payable |
34,153 |
32,673 |
|
Accounts payable |
114,359 |
121,788 |
|
Account payable-related party |
99,986 |
67,764 |
|
Other accounts payable |
113,676 |
109,294 |
|
Income tax liability |
62,141 |
26,693 |
|
Other current liabilities |
7,666 |
5,534 |
|
Current liabilities |
518,237 |
882,609 |
|
Non-current liabilities |
|
|
|
Long-term borrowings |
500,000 |
0 |
|
Deferred income tax liabilities |
200,910 |
189,116 |
|
Other non-current liabilities |
24,570 |
20,801 |
|
Non-current liabilities |
725,480 |
209,917 |
|
Liabilities |
1,243,717 |
1,092,526 |
|
Equity attributable to owners of parent |
|
|
|
Share capital |
|
|
|
Ordinary share |
1,092,102 |
1,056,102 |
|
Total capital stock |
1,092,102 |
1,056,102 |
|
Capital surplus |
|
|
|
Capital surplus |
352,800 |
0 |
|
Legal reserve |
48,324 |
8,332 |
|
Unappropriated retained earnings |
709,958 |
413,720 |
|
Retained earnings |
758,282 |
422,052 |
|
Other equity |
61,295 |
18,480 |
|
Total equity attributable to owners parent |
2,264,479 |
1,496,634 |
|
uncontrolled
equity |
208 |
182 |
|
Total equity |
2,264,687 |
1,496,816 |
Unit: NTD/000
|
Consolidated |
2014 |
2013 |
|
Sales net income |
2,779,566 |
2,091,947 |
|
Operating income |
2,779,566 |
2,091,947 |
|
Cost of sales |
1,831,171 |
1,446,873 |
|
Operating costs |
1,831,171 |
1,446,873 |
|
Gross profit (loss) from operations |
948,395 |
645,074 |
|
Gross profit (loss) from operations, net |
948,395 |
645,074 |
|
Sale expense |
250,013 |
124,181 |
|
Administrative expense |
149,082 |
102,126 |
|
Research and development expenses |
12,097 |
15,974 |
|
Operating expenses |
411,192 |
242,281 |
|
Operating income (loss) |
537,203 |
402,793 |
|
Non-operating revenues and costs |
|
|
|
Other income |
8,899 |
5,377 |
|
Other gains and losses, net |
15,862 |
-457 |
|
Finance costs, net |
7,946 |
4,517 |
|
Total non-operating income and expenses |
16,815 |
403 |
|
Profit (loss) from continuing operations before tax |
554,018 |
403,196 |
|
Income tax expense (income) |
91,969 |
25,447 |
|
Profit (loss) from continuing operations |
462,049 |
377,749 |
|
Profit (loss) |
462,049 |
377,749 |
|
Other comprehensive profit and loss (net) |
|
|
|
Exchange differences on translation |
60,628 |
4,592 |
|
Unrealized loss evaluation (interest) of financial assets for sell |
-7,496 |
2,807 |
|
Actuarial gains (losses) on defined benefit plans |
1,116 |
-4,288 |
|
Income tax related to components of other comprehensive income |
10,494 |
1,172 |
|
43,754 |
1,939 |
|
|
Total comprehensive income |
505,803 |
379,688 |
|
Net profit (loss) attributable to: |
|
|
|
Profit (loss), attributable to owners of parent |
462,035 |
397,480 |
|
Profit (loss), attributable to non-controlling interests |
0 |
-9,875 |
|
Comprehensive income, attributable to: |
14 |
-9,856 |
|
Net profit (loss) attributable to: |
|
|
|
Comprehensive income, attributable to owners of parent |
505,777 |
406,010 |
|
Under the common control remote holder
rights (consolidated profit and loss) |
0 |
-13,165 |
|
Comprehensive income, attributable to non-controlling interests |
26 |
-13,157 |
|
Basic earnings per share |
|
|
|
Profit (loss) from continuing operations |
4.31 |
3.76 |
|
Basic earnings per share |
4.31 |
3.76 |
|
Profit (loss) from continuing operations |
4.31 |
3.76 |
|
Diluted earnings per share |
4.31 |
3.76 |
Unit: NTD/000
|
Consolidated |
2014 |
2013 |
|
Cash flows from
(used in) operating activities, indirect method |
|
|
|
Profit (loss)
from continuing operations before tax |
554,018 |
403,196 |
|
Profit (loss)
before tax |
554,018 |
403,196 |
|
Depreciation expense |
67,211 |
53,390 |
|
Amortization expense |
57,256 |
38,159 |
|
Provision (reversal of provision) for bad debt expense |
-860 |
-4,302 |
|
Interest expense |
7,946 |
4,517 |
|
Interest income |
-6,697 |
-3,099 |
|
Dividend income |
0 |
-645 |
|
Loss (gain) on
disposal of property, plant and equipment |
278 |
-164 |
|
Loss (Gain) on Disposal of Investments |
-17,192 |
0 |
|
Impairment loss
on non-financial assets |
11,157 |
1,632 |
|
Unrealized loss
(gain) on foreign currency exchange |
-4,220 |
2,134 |
|
Other items |
-135 |
-131 |
|
Non-effect on
cash gains and losses items |
114,744 |
91,491 |
|
Decrease
(increase) in notes receivable |
-720 |
9,244 |
|
Decrease
(increase) in accounts receivable |
-2,838 |
40,032 |
|
Accounts receivable (increase) decrease-related party |
21,819 |
-33,444 |
|
Decrease
(increase) in inventories |
33,495 |
16,163 |
|
Decrease
(increase) in other current asset |
34,092 |
-5,882 |
|
Total changes in
operating assets |
85,848 |
26,113 |
|
Increase
(decrease) in notes payable |
1,480 |
-2,503 |
|
Increase
(decrease) in accounts payable |
-37,383 |
-5,195 |
|
Increase (decrease) in accounts payable-related party |
-76,580 |
12,859 |
|
Other increase (decrease) in accounts payable |
17,978 |
8,436 |
|
Other increase (decrease) in current liability |
1,687 |
918 |
|
Increase (decrease) in accrued pension liabilities |
3,769 |
394 |
|
Total changes in
operating liabilities |
-89,049 |
14,909 |
|
Total changes in
operating assets and liabilities |
-3,201 |
41,022 |
|
Total adjustments |
111,543 |
132,513 |
|
Cash inflow
(outflow) generated from operations |
665,561 |
535,709 |
|
Income taxes
refund (paid) |
-75,859 |
-43,837 |
|
Net cash flows
from (used in) operating activities |
589,702 |
491,872 |
|
Disposal of
financial assets for sale |
23,407 |
0 |
|
Acquisition of subsidiaries (Deducting the
cash) |
-689,113 |
-298,777 |
|
Acquisition of
property, plant and equipment |
-67,131 |
-29,993 |
|
Disposal of
property, plant and equipment |
358 |
15,509 |
|
Acquisition of
intangible assets |
-446 |
-3,508 |
|
Increase in other
financial assets |
-230,066 |
-615 |
|
Decrease in other
financial assets |
589 |
7,385 |
|
Increase in other
non-current assets |
0 |
-745 |
|
Interests
collected |
6,701 |
3,095 |
|
Dividend received |
0 |
645 |
|
Net cash flows from (used in) investment activities |
-955,701 |
-307,004 |
|
Increase in
short-term borrowing |
2,435,782 |
2,691,268 |
|
Decrease in
short-term borrowing |
-2,816,954 |
-2,590,960 |
|
Increase in short term note |
0 |
49,997 |
|
Decrease in short term note |
-49,997 |
0 |
|
Long-term
borrowings |
550,000 |
20,000 |
|
Repayments of
long-term debt |
-50,000 |
-50,000 |
|
Cash dividends
paid |
-126,732 |
-25,759 |
|
Cash capital
increase |
388,800 |
0 |
|
Interest paid |
-7,862 |
-4,474 |
|
Net cash flows
from (used in) financing activities |
323,037 |
90,072 |
|
Effect of
exchange rate changes on cash and cash equivalents |
26,424 |
3,469 |
|
Net increase (decrease)
in cash and cash equivalents |
-16,538 |
278,409 |
|
Cash and cash
equivalents at beginning of period |
680,737 |
402,328 |
|
Cash and cash
equivalents at end of period |
664,199 |
680,737 |
|
Cash and cash equivalents
reported in the statement of financial position |
664,199 |
680,737 |
Note: Subject didn’t submit its individual financial information; we
obtained its consolidated financials as above for reference.
The above financial figures are based on the IFRSs
Accounting System.
Subject declined to
disclose its bank details; from other source we could not obtain the relevant
information, either.
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.
Interview
Details
|
Name |
Mr. Chen |
|
Department |
Sales Department |
|
E-mail |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.62 |
|
|
1 |
Rs.100.34 |
|
Euro |
1 |
Rs.70.67 |
|
TWD |
1 |
Rs.2.03 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
HEE |
|
|
|
|
Report Prepared
by : |
NIT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.