MIRA INFORM REPORT

 

 

Report No. :

299489

Report Date :

09.01.2015

 

IDENTIFICATION DETAILS

 

Name :

KING TECH CORPORATION

 

 

Registered Office :

Pacific Marx Nihonbashi-tomizawacho 2F., 10-18, Nihonbahsi-tomizawacho, Chuo-ku, Tokyo 103-0006

 

 

Country :

Japan

 

 

Date of Incorporation :

24.10.2000

 

 

Com. Reg. No.:

0100-01-071373

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is trading computer hardware, software and peripherals

 

 

No. of Employee :

40

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow But Correct

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

JAPAN ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. The new government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy.

 

Source : CIA


Company name

 

KING TECH CORPORATION

 

 

OUTLINE

 

Country:                                                Japan

Company name:                        KING TECH CORPORATION

Name in local language: KING TECH, K.K.  (株式会社キング・テック)

Office address:                         Pacific Marx Nihonbashi-tomizawacho 2F., 10-18,

                                                Nihonbahsi-tomizawacho, Chuo-ku, Tokyo 103-0006

Office tel:                                             03-5643-2671

Website:                                               www.kingtech.co.jp/

Business type:                          Trader

Industry:                                               Computer & Information Products

Established:                              October 24, 2000

Capital:                                                 Jp. 148,200,000 yen

Employees:                              40

Corporate formation:                 Private

Corporation No.:                       0100-01-071373 (Tokyo Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

 

Paid up capital                          Jp. 148,200,000 yen

Number of authorized shares     32,000 shares

Number of outstanding shares   6,952 shares

Number of shareholders                        67

 

Major shareholders                                          shares (%)

---------------------------------------------------------------------------------------------

Mr. Yuan-yang Wang, president                         2,940 (42.3)

Talen Gain Development Ltd. (Hong Kong)           960 (13.8)

Ryoyoh Electro Corp.                                        880 (12.7)

Cremax Tech Corp.(Taiwan)                                  360 ( 5.2)

M. Fan-qi Wang                                                             164 ( 2.4)

Digital China Co., Ltd.                                       n. a.

I.I.M. Corp.                                                                     n. a.

 

 

DETAILED PRODUCT CLASSFICATION & ACTIVITY

 

Activity                         Product/Service Description

-------------------------------------------------------------------------------

Trading                         Computer and its parts

Trading                         Computer peripherals

Service                         Travel agency

Service                         Workers dispatch agency

 

 

COMPANY MANAGEMENT

 

President                      Mr. Yuan-yao Wang (王遠耀)

Nationality:                    China

 

Director                                    Mr. Wei Guo (郭為)

Nationality:                    China

 

Director                                    Mr. Etsuro Nakagawa

Nationality:                    Japan

 

Auditor                                     Mr. Akio Asakura

Nationality:                    Japan

 

 

 

Note: The names of director(s) and auditor(s) are phonetically spelt.

All of the board members except Mr. Wang are outside(inactive) members.

 

*Key Personnel*

=============

Mr. Yuan-yao Wang

Representative director since its establishment

Born on April 8, 1966 in China

Registered home address: 2-9-10-303, Senju-azuma, Adachi-ku, Tokyo 120-0025

 

 

FINANCIALS

 

Currency: (local currency - Jp. yen)

-------------------------------------------------------------------------------------

 Year   |         Sales                  |       Net Income    

-------------------------------------------------------------------------------------

2008

2,107,086,000

15,357,000

2009

2,555,054,000

1,809,000

2010

3,297,742,000

1,929,000

2011

3,111,090,000

1,154,000

2012

1,619,833,000

2,119,000

2013

1,031,400,000

2,864,000

FINANCIAL DESCRIPTION

 

*Book Closing*

============

September 30th

 

 

*Financials*

==========

As a private limited company, no official financial statement is required to be disclosed publicly.

 

 

*Bank Details*

============

Bank Name:      Bank of Tokyo-Mitsubishi UFJ, Ltd.

Branch:             Kasuga-cho

 

 

Bank Name:      Mizuho Bank, Ltd.

Branch:             Ginza-dori

 

Bank Name:     Sumitomo Mitsui Banking Corp.

Branch:             Nihonbashi-higashi

 

Bank Name:      Resona Bank, Ltd.

Branch:             Muromachi

 

 

*Credit Opinion*

=============

A Tokyo-based small-sized firm specializing in trading computer hardware, software and peripherals with 13-year business history.

 

Business size looks small for its customers list, which show more than 80.

 

Investment has been aggressively implemented despite its small equity and net income.

 

It is uncertain who else backs up the subject financially besides The Bank of Tokyo-Mitsubishi UFJ, Ltd.

 

Sales almost halved for Sep. 2012 term from the previous year while the net profit was increased, and sale further declined for 2013 term with the net income up.

 

The exact financial condition is not available due to non disclosure of its financial statements.

 

At any rate a minimal net profit has been worked out.

 

When we researched the subject last time in January 2014, we found the following facts:

 

The website says the subject holds 25.61% of issued shares of REMIX POINT CORP., but the latest financial report shows that KING TECH SERVICE(HK) LTD. holds 11.9% and the subject itself holds 4.8% only.

 

The latest financial status of REMIX POINT shows 1,756 million JPY of retained loss as of September 30, 2013.

 

The amount of shareholders equity could be estimated around 182 million yen including the unsecured bonds undertaken by the above banker.

 

However, we are unable to find any updated information.

 

We’ve checked the latest available financial report of REMIX POINT, a public listed corporation but the name of Mr. Wang was not listed as a major shareholder as of September 30, 2014.

 

The company history has not been updated.

 

The reason why the subject increased the capital paid in three times in 2014 cannot be specified.

 

 

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

 

*Main Business*

==============

Imports/exports, wholesale, repair work and related services of the following computer-related products:

Total storage products

- Hardware and software relating to disk array

- Hardware and software relating to tape back-up

- Hard ware and software relating to optical back-up

 

PC and peripherals

- Hardware and software relating to UPS

- Memory-related products

- Firewall

- Network equipment and devices

 

Data media services

- Data conversion

- Data erasing

- Library initializing

 

Workers dispatch services

 

Travel agency

 

Offshore development

 

 

ORGANIZATION STRUCTURE

 

*Address*

========

Registered address is same as that of the operating head office.

 

The quoted address, 2-10-1, Nihonbashi-hamacho, Chuo-ku, Tokyo, is the previous address.

 

 

*Company History*

================

Date                             Development

-----------------------------------------------------------

October 24, 2000           Incorporated with an investment of 30,000,000 yen.

                                    Cremax Tech, I.I.M. and others(Taiwan) and other companies

                                    undertook some of the initial fundings.

February 2003               Increased the capital to 49,800,000 yen.

                                    Digital China Co., Ltd. and others undertook the investment.

May 2005                      Acquired the business assets from System Management Inc.

August 2005                  50 million yen of unsecured bond issued and undertaken by The

                                    Bank of Tokyo-Mitsubishi UFJ, Ltd.

March 2006                   Acquired MRF Solution Inc.

July 2006                      Founded King Tech Service (Hong Kong) Ltd.

August 2006                  Increased the capital to the current amount of 99,700,000 yen

                                    together with 49,900,000 yen of capital reserves.

March 2007                   Acquired A & Access Inc.

June 2007                     Established a joint venture, "Iris Corp." with Youth Corp.

March 2008                   100 million yen of unsecured bond issued and undertaken by The

                                    Tokyo-Mitsubishi UFJ, Ltd., again.

April 2008                     Invested to "Seamless Service Inc."

October 2008                Founded a subsidiary, "KT Soft Corp."

                                    Founded a subsidiary, "HPC Tech Corp."

March 2009                   Became a member of CCCJ(Chinese Chamber of Commerce Japan)

                                    and Mr. Wang was appointed as a managing director.

October 24, 2011           Relocated to the current address from the following address:

                                    2-10-1, Nihonbashi-hamacho, Chuo-ku, Tokyo

July 15, 2014                 Increased the capital to JPY 112,200,000.

September 29, 2014      Increased the capital to JPY 133,200,000.

October 9, 2014            Increased the capital to JPY 148,200,000.

 

 

TRADE REFERENCES

 

*Suppliers*

==========

Accordance System Inc.(Taiwan)

Accusys, Inc.(Taiwan)

Areca Technology Corp.(Taiwan)

IBM Japan Ltd.(*)

Ryoyoh Electro Corp.(*)

Daiwabo Information System Co., Ltd.

 

 

Lenovo Japan Corp.(*)

SoftBank BB Corp.

Ohtsuka Corp.

Transcend Japan Inc.

A total of 18 suppliers are listed in its website.

Companies with (*) are the business partners.

 

 

*Customers*

===========

IBM Japan Ltd.(*)

SoftBank BB Corp.

Daiwabo Information System Co., Ltd.

NTT Data Corp.

Ricoh Corp.

The University of Tokyo

More than 80 customers are listed in its website.

 

 

SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

 

Company name:            KING TECH SERVICE(HONG KONG) LTD.

Country:                        Hong Kong

Status:                                      Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            KT SOFT CORP.

Country:                        Japan

Status:                                      Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            HPC TECH CORP.

Country:                        Japan

Status:                                      Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            KING TECH DEVICE CORP.

Country:                        Japan

Status:                                      Subsidiary   

----------------------------------------------------------------------------------------------------

Company name:            IT Storage Service Corp.

Country:                        Japan

Status:                                      Affiliate

----------------------------------------------------------------------------------------------------

 

 

 

Company name:            Guides Inc.

Country:                        Japan

Status:                                      Affiliate   

----------------------------------------------------------------------------------------------------

Company name:            Seamless Service Corp.

Country:                        Japan

Status:                                      Affiliate

----------------------------------------------------------------------------------------------------

Company name:            King Tech Corp. Beijing

Country:                        China

Status:                                      Affiliate  

----------------------------------------------------------------------------------------------------

Company name:            Jiang-Yin Nan-Fang New Tech Sources Co., Ltd.

Country:                        China

Status:                                      Affiliate  


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.39

UK Pound

1

Rs.94.16

Euro

1

Rs.73.61

 

INFORMATION DETAILS

 

Analysis Done by :

RSM

 

 

Report Prepared by :

DPT

 

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.