MIRA INFORM REPORT

 

 

Report No. :

347388

Report Date :

03.11.2015

 

IDENTIFICATION DETAILS

 

Name :

L.K. MACHINERY CORP.

 

 

Registered Office :

No.30, Keyuan Rd., Xitun Dist., Taichung City 40763

 

 

Country :

Taiwan

 

 

Date of Incorporation :

04.11.2002

 

 

Com. Reg. No.:

80072883

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Subject is engaged in manufacturing and sales of CNC machining center products

 

 

No. of Employee :

About 100

 

 

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 :

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

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

 

Contact Points

 

Company Name:

L.K. Machinery Corp.

Supplied Name:

L K Machinery Corp

Trading Address:

No.30, Keyuan Rd., Xitun Dist., Taichung City 40763, Taiwan (R.O.C.)

Supplied Address:

No 30, Keyuan Xitun Dist Taichung City 407 Taiwan

Telephone Number:

+886-4-2461-9797

Fax Number:

+886-4-2461-1555

E-mail:

infosales@lkmachinery.com.tw

Website:

http://www.lkmachinery.com.tw

Notes: The exact name and address are as above.

 

Company Identification Details

 

Registered Name:

L.K. MACHINERY CORP.

Registered Address:

No.30, Keyuan Rd., Xitun Dist., Taichung City 40763, Taiwan (R.O.C.)

Date of Foundation:

2002-11-04

Registration Number:

80072883

Registry:

Central Taiwan Science Park Bureau, MOST

Registered Capital:

NTD 211,000,000 (USD 6,541,000)

(As of 2015.10, 1 NTD = 0.031 USD)

Paid-up Capital:

NTD 211,000,000 (USD 6,541,000)

Legal Representatives:

Zhuoming Liu

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sales of CNC Machining Center products.

Staff:

About 100 Employees

Listed at Stock Exchange:

No

Date of Last Annual Return:

2014-02-05

 

History

 

Subject was incorporated on 2002-11-04 with registered number 80072883 as Joint Stock Company in Taiwan.

 

Corporate Structure

 

Factory

Name:

Zhongke Factory

Address:

No.30, Keyuan Rd., Xitun Dist., Taichung City 40763, Taiwan (R.O.C.)

Date of Registration:

2012-05-31

Factory Registration Number:

93B00132

Factory Manager:

Mengcong Lin

Status:

In Production

Date of Last Annual Return:

2012-09-07

Major Products:

291 Metal processing machinery equipment

 

Related Companies

1

Name:

L.K. Machinery International Limited (L.K. Group HQ)

Address:

Unit A, G/F., & Unit A, /F., Mai Wah Industrial Buliding, 1-7 Wah Sing Street, Kwai Chung, N.T., Hong Kong

Tel:

+852-3412-5500

Fax:

+852-3412-5522

2

Name:

Shanghai Atech Machinery Co. LTD.

Address:

42, Min Yi Road, Xin Qiao Development Area Song Jiang Industry Zone, Shanghai PRC

Tel:

+86-021-5768-5788

Fax:

+86-021-5768-6013

3

Name:

L.K. Thai Prex Engineering

Address:

99/10 Moo 2, T.Bankao, A. Panthong, Chonburi 20160 Thailand

Tel:

+0-3845-4809

Fax:

+0-3815-6098

4

Name:

IDRA s.r.l. (L.K. Group)

Address:

Via dei Metalli, 2-25039 Travagliato-Brescia-Italy

Tel:

+39-030-20111

Fax:

+39-030-2002-345

5

Name:

Mir Stanochnika LLC

Address:

115114, Moscow, Derbenevskaya Str. 20, Building 24, 2nd Floor

Tel:

+7-495-95-96-777

Fax:

+7-495-95-96-777 ((Extension number 108 or 107)

6

Name:

L.K. Machinery, INC.

Address:

4508 128th Avenue Holland, MI 49424 USA

Tel:

+616-796-0777

Fax:

+616-582-6060

7

Name:

Cosa Intermaquinas Comercio De Maquinas E Equipametntos Ltda

Address:

Rua Eduardo Ferragut, 72-Portal-CEP:13280-000-Vinhedo-SP Brazil

Tel:

+19-3886-3003

 

 

Shareholder

 

Major Shareholder

 

Name

Subscription Shares     

Cyberbay Pte Ltd

21,100,000

 


Management Information

Core Management

 

Directors

1

Name

Zhuoming Liu

Position

Chairman of the Board

2

Name

Jiaji Kang

Position

Director

3

Name

Xiaozheng Sheng

Position

Director

4

Name

Jianming Huang

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 100 Employees

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

No.30, Keyuan Rd., Xitun Dist., Taichung City 40763, Taiwan (R.O.C.)

 

Production Information

 

l  Subject is engaged in manufacturing of CNC Machining Center products, etc. 

l  Subject has a factory in Taiwan for production.

l  Subject obtained the certification of ISO 9001 and ISO 14001.

 

Purchase Information

 

l  The registered activities of subject:

Business Code

Details

E604010

Machinery installation industry

F106030

Mould wholesaling

F113010

Machinery wholesaling

F401010

International trade

ZZ99999

Besides licensed business, all other business items those are not banned or restricted

 

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

 

Sales Information

 

l  Subject is engaged in sales of CNC machining center products, etc. 

l  The major products are vertical machining center, horizontal machining center, pallet changer VMC, 5 axis machining center, high-speed bridge-type machining center, etc.

l  It is introduced that the products are mainly applied for electronics, automotive, mold & die, aerospace, household appliances, general machining, die casting after production, etc.

l  Subject’s sales regions include domestic market, Southeast Asia and Europe, etc. 

l  Subject’s major customers are manufacturers of parts of 3C, automotive and die casting after production, etc.

 

Import and export right:

Import right

Yes

Export right

Yes

 

Settlements

 

Purchase

 

1.     Domestic Purchase

Products

Raw materials and components, etc.

Payment Terms

T/T, Cash, etc.

 

2.     Import

Products

Raw materials and components, etc.

Payment Terms

L/C, T/T, etc.

 

Sales

 

1.     Domestic Markets

Product

CNC Machining Center products, etc. 

Selling Terms

T/T, Cash, etc.

 

2.     Export

Product

CNC Machining Center products, etc. 

Selling Terms

L/C, T/T, etc.

 

 

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.

 

 

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

Mr. Lv

Department

Sales Department

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.48

UK Pound

1

Rs.101.06

Euro

1

Rs.72.22

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

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.