|
Report No. : |
354293 |
|
Report Date : |
11.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
FALCON MACHINE TOOLS CO., LTD. |
|
|
|
|
Registered Office : |
No.12, Lung Shan 2nd St., Daya Dist.,
Taichung City 428 |
|
|
|
|
Country : |
Taiwan |
|
|
|
|
Financials (as on) : |
31.12.2014 (Consolidated) |
|
|
|
|
Date of Incorporation : |
13.04.1978 |
|
|
|
|
Com. Reg. No.: |
55848584 |
|
|
|
|
Legal Form : |
Joint Stock Company |
|
|
|
|
Line of Business : |
Manufacturing and sale of grinding machines. |
|
|
|
|
No. of Employee : |
About 270 |
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: |
|
|
Supplied Address: |
|
|
Telephone Number: |
+886-4-799-1126 |
|
Fax Number: |
|
|
E-mail: |
Notes: The exact address
is as above.
Subject was incorporated on 1978-4-13 with registered
number 55848584 as Joint Stock Company in Taiwan.
Subject listed on
Taiwan Over-The-Counter Securities Exchange on 1998-3-25.
Factories
|
1 |
|
|
Address: |
No.12, Lung Shan 2nd St., Daya Dist., Taichung City 428, Taiwan
(R.O.C.) |
|
Date of
Foundation: |
1987-6-15 |
|
Date of
Registration: |
1990-1-11 |
|
Factory
Registration Number: |
99642670 |
|
Factory Manager: |
Booming Zhang |
|
Status: |
In Production |
|
Date of Last Annual Return: |
2005-2-2 |
|
Major Products: |
291 machinery
equipment for processing metals |
|
2 |
|
|
Name: |
Quanxing Factory |
|
Address: |
No. 34, Xinggong
Rd., Xidi Village, Shengang Xiang, Zhanghua County, Taiwan |
|
Date of
Foundation: |
1992-2-18 |
|
Date of
Registration: |
1995-10-4 |
|
Factory
Registration Number: |
99645328 |
|
Factory Manager: |
Booming Zhang |
|
Status: |
In Production |
|
Date of Last Annual Return: |
2001-7-13 |
|
Major Products: |
291 machinery
equipment for processing metals 293 general
machinery equipment |
|
3 |
|
|
Name: |
Quanxing the 3rd Factory |
|
Address: |
2F, No. 262,
Xinggong Rd., Xidi Village, Shengang Xiang, Zhanghua County, Taiwan |
|
Date of
Registration: |
2006-1-25 |
|
Factory
Registration Number: |
99679973 |
|
Factory Manager: |
Booming Zhang |
|
Status: |
In Production |
|
Date of Last Annual Return: |
2006-1-25 |
|
Major Products: |
293 general
machinery equipment |
Related Companies
|
1 |
|
|
Name |
Chevalier
Machinery Inc. |
|
Tel: |
+1-562-903-1929 |
|
Fax: |
+1-562-903-3959 |
|
Email: |
|
|
2 |
|
|
Name |
Chevalier
Machinery Co., Ltd. (Suzhou) |
|
3 |
|
|
Name |
Focus CNC Co.,
Ltd. |
Major Shareholders
|
Name |
Subscription Shares |
|
Baoming Zhang |
|
|
3,119,000 |
|
|
Baoyuan Zhang |
3,965,309 |
|
Zhongding
Investment Co., Ltd. (Literal Translation) |
2,077,000 |
|
Hua Liu |
1,274,000 |
|
Huizhen Zhao |
775,000 |
|
Mengru Ji |
615,309 |
Core Management
Directors
|
1 |
||
|
Name |
Baoming Zhang |
|
|
Position |
Chairman of the
Board |
|
|
2 |
||
|
Name |
Baoyuan Zhang |
|
|
Position |
Vice Chairman of
the Board |
|
|
3 |
||
|
Name |
Jingpu Liu |
|
|
Position |
Director |
|
|
4 |
||
|
Name |
Huaizhi Zheng |
|
|
Position |
Director |
|
|
5 |
||
|
Name |
Hua Liu |
|
|
Position |
Director |
|
|
6 |
||
|
Name |
Zhenteng Cai |
|
|
Position |
Independent
Director |
|
|
7 |
||
|
Name |
Qindu Xiao |
|
|
Position |
Independent
Director |
|
|
8 |
||
|
Name |
Huizhen Zhao |
|
|
Position |
Supervisor |
|
|
9 |
||
|
Name |
Mengru Ji |
|
|
Position |
Supervisor |
|
Personnel Structure
|
Total Employees |
About 270
Employees |
Offices & Factories
|
|
Headquarters |
|
Add |
Production Information
Subject is engaged
in manufacturing of grinding machines, etc.
Subject has
factories in Taiwan for production.
It is introduced
that subject has a factory in the Mainland of China for production, but we
cannot obtain the detail information.
Subject obtained
the certification of ISO 9001, ISO 14001 and CE.
Purchase Information
The
registered activities of subject:
|
Business Code |
Details |
|
CB01010 |
Machinery and
Equipment Manufacturing |
|
CB01990 |
Other machinery manufacturing |
|
CC01010 |
Electricity
generation and transmission distribution machinery manufacturing |
|
CC01990 |
Other mechanical
electrical and electronic equipment manufacturing industry |
|
CC01110 |
Computer and peripheral
equipment manufacturing industry |
|
CD01060 |
Aircraft and
parts manufacturing |
|
CE01010 |
General
instrument manufacturing |
|
CE01990 |
Other optical and
precision equipment manufacturing |
|
CP01010 |
Hand tools
manufacturing |
|
E604010 |
The machinery
installation industry |
|
I501010 |
Product designing
|
|
F113010 |
Mechanical
wholesaling |
|
F113020 |
Electrical
wholesaling |
|
F113030 |
Precision
instruments wholesaling |
|
F113050 |
Computer and transactional
machine equipment wholesaling |
|
F113990 |
Other mechanical
appliances wholesale |
|
F114070 |
Wholesaling
aircraft and parts |
|
F213010 |
Electrical
appliance retailing |
|
F213030 |
Computers and transactional
machinery and equipment retail |
|
F213040 |
Precision
instruments retail |
|
F213080 |
Mechanical
equipment retail |
|
F213990 |
Other mechanical
appliances retail |
|
F214070 |
Aircraft and
spare parts retail |
|
F401010 |
The international
trade |
|
ZZ99999 |
Besides licensed
business, all other business items those are not banned or restricted. |
The components and
raw materials for production are both purchased at home and abroad.
Subject is engaged in sale of grinding machines
The major products
are grinding machines, milling machines, vertical lathes and lathes and so on.
It is introduced
that subject has its own brand “CHEVALIER”.
It is introduced that
subject’s products are applied for school training, aviation, electronics,
computers and shipbuilding industry.
Subject’s sales
regions domestic market and abroad.
It is introduced
that subject’s sales ratio is: domestic sales 6%; foreign sales 94%.
It is introduced
that subject has agents in Asia, Africa, America, Europe
The detail
information of the subject’s products is as follows:
|
Category |
Products |
|
Grinding machines |
CNC surface/profile
grinder, double column grinder, vertical cylindrical grinder, vertical disc
surface grinder, semi-automatic grinder, fully-automatic grinder, manual
surface grinder |
|
Milling machines |
Vertical
machining center, gantry type machining center, manual milling machines |
|
Vertical lathes |
CNC vertical
turning lathes |
|
Lathes |
Slant bed CNC
lathe, multi-function CNC lathes |
Import and export
right:
|
Import right |
Yes |
|
Export right |
Yes |
Purchase
Domestic
Purchase
|
Products |
Components and
raw materials |
|
Payment Terms |
T/T, Cash |
Import
|
Products |
Components and
raw materials |
|
Payment Terms |
L/C, T/T |
Domestic Markets
|
Product |
Grinding machines |
|
Selling Terms |
T/T, Cash |
Export
|
Product |
Grinding machines |
|
Selling Terms |
L/C, T/T |
Unit: NTD/000
|
Consolidated |
2014-12-31 |
2013-12-31 |
|
Current assets |
|
|
|
Cash and cash
equivalents |
336,122 |
320,525 |
|
Notes receivable,
net |
47,863 |
29,532 |
|
Accounts receivable,
net |
465,450 |
447,008 |
|
Other account
receivable, net |
17,109 |
16,446 |
|
Inventories |
1,537,141 |
1,384,077 |
|
Prepayment |
86,168 |
79,727 |
|
Other current
assets |
5,060 |
5,331 |
|
Total current
assets |
2,494,913 |
2,282,646 |
|
Non-current
assets |
|
|
|
Financial assets
for sale-non-current net |
6,377 |
7,480 |
|
Financial assets
valued by cost- non-current net |
1,200 |
1,200 |
|
Bond investment
with non-active market-non-current net |
14,242 |
13,399 |
|
Net investment by
equity method |
25,693 |
27,047 |
|
Property, plant
and equipment |
695,937 |
618,885 |
|
Net investment
real estate |
27,124 |
27,899 |
|
Intangible assets |
5,745 |
5,908 |
|
Deferred tax
assets |
93,481 |
86,398 |
|
Other non-current
assets |
44,836 |
44,457 |
|
Other non-current
assets |
914,635 |
832,673 |
|
Total assets |
3,409,548 |
3,115,319 |
|
Current
liabilities |
|
|
|
Short-term
borrowings |
79,491 |
97,447 |
|
Short-term Notes
payable |
9,974 |
0 |
|
Notes payable |
194,947 |
97,753 |
|
Accounts payable |
384,632 |
301,629 |
|
Other Accounts
payable |
123,271 |
120,179 |
|
Current tax
liabilities |
7,027 |
3,288 |
|
Other current
liabilities |
576,898 |
170,625 |
|
Total current
liabilities |
1,376,240 |
790,921 |
|
Non-current
liabilities |
|
|
|
Long-term borrowings |
849,908 |
1,225,188 |
|
Deferred tax
liabilities |
59,192 |
52,346 |
|
Other non-current
liabilities |
102,405 |
100,178 |
|
Total non-current
liabilities |
1,011,505 |
1,377,712 |
|
Total liabilities |
2,387,745 |
2,168,633 |
|
Owner equity attribute
to parent company |
|
|
|
Share capital |
|
|
|
Ordinary share |
768,803 |
768,803 |
|
Total capital
stock |
768,803 |
768,803 |
|
Capital surplus |
|
|
|
Total Capital
surplus |
11,460 |
11,460 |
|
Retained Earnings |
|
|
|
Special reserve |
49,531 |
49,531 |
|
Unappropriated
retained earnings (accumulated deficit) |
-2,698 |
-30,672 |
|
Total retained
earnings |
46,833 |
18,859 |
|
Other equity |
|
|
|
Total Other
equity |
37,752 |
10,276 |
|
Total equity attributable to
the parent company |
864,848 |
809,398 |
|
Non-controlling
equity |
156,955 |
137,288 |
|
Total equity |
1,021,803 |
946,686 |
Unit: NTD/000
|
Consolidated |
2014 |
2013 |
|
Net sales |
2,472,954 |
2,300,872 |
|
Operating revenue |
2,472,954 |
2,300,872 |
|
Operating costs |
1,874,217 |
1,775,781 |
|
Gross profit
(loss) from operations |
598,737 |
525,091 |
|
Gross profit
(loss) from operations-net |
598,737 |
525,091 |
|
Operating
expenses |
|
|
|
Selling expenses |
295,002 |
272,469 |
|
Administrative expenses |
162,919 |
200,023 |
|
Research and
development expenses |
74,616 |
79,425 |
|
Operating
expenses total |
532,537 |
551,917 |
|
Profit (loss)
from operations |
66,200 |
-26,826 |
|
Non-operating
income and expenses |
|
|
|
Other income |
22,651 |
55,318 |
|
Other income or
loss net |
19,238 |
753 |
|
Financial cost
net |
36,584 |
31,834 |
|
Affiliated
enterprise of recognized by employing the equity method and Joint venture
share profits and losses net |
-1,354 |
-927 |
|
Non-operating income
and expenses |
3,951 |
23,310 |
|
Net income (loss)
before tax |
70,151 |
-3,516 |
|
Tax expense
(income) |
17,202 |
19,947 |
|
Profit (loss)
from continuing operations |
52,949 |
-23,463 |
|
Net income (loss) |
52,949 |
-23,463 |
|
Other net income (loss) |
|
|
|
Foreign cash
balance operating mechanism conversion of the financial statements |
31,305 |
19,137 |
|
Unrealized
evaluation profit or loss of financial assets for sale |
-1,103 |
2,058 |
|
Determine the
welfare program actuarial profit (loss) |
2,220 |
5,135 |
|
Other
comprehensive income tax |
3,102 |
3,148 |
|
Other
comprehensive income net |
29,320 |
23,182 |
|
Comprehensive
income |
82,269 |
-281 |
|
Net profit (loss)
attributable to: |
|
|
|
Net income or
loss of parent company |
26,107 |
-45,853 |
|
Net income or
loss of non-controlling equity |
26,842 |
22,390 |
|
Comprehensive
profit (loss) attributable to: |
|
|
|
Comprehensive
profit (loss) of parent company |
55,450 |
-22,775 |
|
Comprehensive
profit (loss) of non-controlling equity |
26,819 |
22,494 |
|
Basic earnings
per share |
|
|
|
Diluted earnings
per share |
0.34 |
-0.60 |
Unit: NTD/000
|
Consolidated |
2014 |
2013 |
|
Cash flows from
(used in) operating activities, indirect method |
|
|
|
Profit (loss) from
continuing operations before tax |
70,151 |
-3,516 |
|
Profit (loss)
before tax |
70,151 |
-3,516 |
|
Depreciation
expense |
65,673 |
73,045 |
|
Amortization
expense |
422 |
24 |
|
Interest expenses |
36,584 |
31,833 |
|
Interest income |
-2,022 |
-3,469 |
|
Income (loss)
shares by equity method recognized by affiliated enterprise |
1,354 |
927 |
|
Loss (gain) on
disposal of property, plant and equipment |
267 |
6,028 |
|
Profit (loss) on
disposal of investment |
0 |
-1,762 |
|
Unrealized foreign
exchange loss (gain) |
102,278 |
106,626 |
|
Decrease
(increase) in notes receivable |
-18,331 |
39,996 |
|
Decrease
(increase) in accounts receivable |
-18,442 |
-92,216 |
|
Decrease
(increase) in other accounts receivable |
-663 |
5,166 |
|
Decrease (increase)
in inventories |
-153,064 |
20,600 |
|
Decrease
(increase) in prepayment |
-9,877 |
-19,450 |
|
Decrease
(increase) in other current assets |
271 |
2,881 |
|
Total net changes
in operating assets |
-200,106 |
-43,023 |
|
Increase (decrease)
in notes payable |
97,194 |
-41,142 |
|
Increase
(decrease) in accounts payable |
83,003 |
-9,458 |
|
Increase
(decrease) in other accounts payable |
3,096 |
15,296 |
|
Increase
(decrease) in advance receipt |
-14,991 |
7,007 |
|
Increase (decrease)
in other current liabilities |
2,772 |
459 |
|
Increase
(decrease) in accrued pension liabilities |
-4,634 |
-6,129 |
|
Increase
(decrease) in operating liabilities |
9,196 |
15,104 |
|
Total net changes
in operating liabilities |
175,636 |
-18,863 |
|
Total changes in
operating assets and liabilities |
-24,470 |
-61,886 |
|
Total adjustments |
77,808 |
44,740 |
|
Cash inflow
(outflow) generated from operations |
147,959 |
41,224 |
|
Interest received |
2,022 |
3,469 |
|
Interest paid |
-36,588 |
-31,717 |
|
Income taxes
refund (paid) |
-16,802 |
-23,787 |
|
Net cash flows
from (used in) operating activities |
96,591 |
-10,811 |
|
Cash flows from
(used in) investing activities |
|
|
|
Disposal of
financial assets for sale |
0 |
3,206 |
|
Acquisition of non-active
market bond investment |
-843 |
-13,399 |
|
Acquisition of
property, plant and equipment |
-153,401 |
-134,098 |
|
Proceeds from
disposal of property, plant and equipment |
23,073 |
7,796 |
|
Acquisition of
intangible assets |
0 |
-1,240 |
|
Increase in other
non-current assets |
-639 |
-25,494 |
|
Increase in
prepayment of equipment |
-9,102 |
0 |
|
Decrease in
prepayment of equipment |
7,987 |
0 |
|
Net cash flows
from (used in) investing activities |
-132,925 |
-163,229 |
|
Net cash flows from
(used in) financing activities |
|
|
|
Increase in
short-term borrowing |
375,973 |
347,324 |
|
Decrease in
short-term borrowing |
-393,929 |
-366,824 |
|
Increase in
short-term notes payable |
9,974 |
0 |
|
Proceeds from
long-term debt |
173,481 |
213,587 |
|
Repayments of
long-term debt |
-126,990 |
-11,758 |
|
Increase in
deposits received |
0 |
0 |
|
Decrease in
deposits received |
-115 |
0 |
|
Decrease in lease
payable |
-3,279 |
-21,997 |
|
Increase in cash |
0 |
0 |
|
Changes in non-controlling
equity |
-7,152 |
-5,960 |
|
Net cash flows
from (used in) financing activities |
27,963 |
154,372 |
|
Effect of
exchange rate changes on cash and cash equivalents |
23,968 |
13,579 |
|
Net increase
(decrease) in cash and cash equivalents |
15,597 |
-6,089 |
|
Cash and cash
equivalents at beginning of period |
320,525 |
326,614 |
|
Cash and cash
equivalents at end of period |
336,122 |
320,525 |
|
Cash and cash
equivalents reported in the statement of financial position |
336,122 |
320,525 |
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. Zhang |
|
Department |
Sales Department |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.79 |
|
|
1 |
Rs.101.37 |
|
Euro |
1 |
Rs.73.46 |
|
TWD |
1 |
Rs. 2.04 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KIN |
|
|
|
|
Report Prepared
by : |
ASH |
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.