|
Report No. : |
349348 |
|
Report Date : |
17.11.2015 |
IDENTIFICATION DETAILS
|
Name : |
KMC CHAIN INDUSTRIAL CO., LTD. |
|
|
|
|
Registered Office : |
No.41, Chung Shan Rd., Xinhua Dist., Tainan
City 712 |
|
|
|
|
Country : |
Taiwan |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
20.08.1977 |
|
|
|
|
Com. Reg. No.: |
73626826 |
|
|
|
|
Legal Form : |
Joint Stock Company |
|
|
|
|
Line of Business : |
Manufacturing and sales of bicycle
components. |
|
|
|
|
No. of Employee : |
About 200 Employees |
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 : |
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 – 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., No.425,
Jhonghua Rd., Yongkang Dist., Tainan City 710, Taiwan (R.O.C.) |
|
Supplied Address: |
8F-1, NO.
425,CHUNG HUA ROAD YUNG KANG CITY, TAIWAN COUNTRY TAIWAN R.O.C |
|
Telephone Number: |
+886-6-201-9103 |
|
Fax Number: |
|
|
Website: |
Notes: The exact name and address are as above.
Subject was incorporated
on 1977-08-20 with registered number 73626826
as Joint Stock Company in Taiwan.
|
Former English Name: |
Kuei Meng Industrial Co., Ltd. |
|
Current English Name: |
KMC Chain Industrial Co., Ltd. |
Parent Company
|
Registered Name: |
KMC (Kuei Meng) International Inc. |
|
Registered Address: |
8/F-5, No.425, Jhonghua Rd., Yongkang Dist., Tainan City 710, Taiwan
(R.O.C.) |
|
Date of Foundation: |
1989-04-20 |
|
Registration Number: |
22099483 |
|
Registry: |
Department of Commerce, Ministry of Economic Affairs, R.O.C. |
|
Legal Representatives: |
Yingjin Wu |
|
Legal Form: |
Joint Stock Company |
|
Listed at Stock Exchange: |
Yes; Stock Code: 5306 |
|
Date of Last Annual Return: |
2015-09-17 |
Factory
|
Address: |
No.41, Chung Shan Rd., Xinhua Dist., Tainan City 712, Taiwan (R.O.C.) |
|
Date of Foundation: |
1983-12-23 |
|
Date of Registration: |
1984-06-15 |
|
Factory Registration Number: |
99658852 |
|
Factory Manager: |
Ruizhang Wu |
|
Status: |
In Production |
|
Date of Last Annual Return: |
2015-11-04 |
|
Major Products: |
259 Other metal products 312 Locomotive and parts 313 Bicycle and parts |
Major Related Companies
|
1 |
|
|
Name |
AMC Chain Industrial Co., Ltd. |
|
Address |
No.11, Alley 55, Lane 264, Jhongshan N. Rd.,
Yongkang Dist., Tainan City 710, Taiwan (R.O.C.) |
|
Tel Number: |
+886-6-232-1141 |
|
Fax Number: |
+886-6-233-2924 |
|
Date of Foundation: |
2006-7-26 |
|
Registration Number: |
28367632 |
|
Registry: |
Tainan City Government |
|
Legal Representatives: |
Nengjia Wu |
|
Legal Form: |
Joint Stock Company |
|
2 |
|
|
Name |
CNet Technology Corporation. |
|
Region |
USA |
|
3 |
|
|
Name |
KMC Transmission (Chengdu) 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 Shareholder
|
Name |
Subscription Shares |
|
82,277,147 |
Core Management
Directors
|
1 |
||
|
Name |
Ruizhang Wu |
|
|
Position |
Chairman of the Board |
|
|
2 |
||
|
Name |
Xingjuan Wu |
|
|
Position |
Director |
|
|
3 |
||
|
Name |
Ruilin Xu |
|
|
Position |
Director |
|
|
4 |
||
|
Name |
Rongcan Xu |
|
|
Position |
Supervisor |
|
Personnel
Structure
|
Total Employees |
About 200 Employees |
Offices &
Factories
|
|
Headquarters |
|
Add |
8F., No.425, Jhonghua Rd., Yongkang Dist., Tainan City 710, Taiwan
(R.O.C.) |
Production
Information
Subject is engaged in manufacturing of bicycle components
Subject has a factory in Taiwan for production.
Purchase
Information
The registered activities of subject:
|
Business Code |
Details |
|
CD01040 |
Manufacturing of motor and components |
|
CD01050 |
Manufacturing of bicycle and components |
|
I103060 |
Management consultant service |
|
F401010 |
International trade business |
|
CD01990 |
Manufacturing of other transport machine and
components |
|
F401021 |
Import of RF equipment controlled by telecom |
|
F213060 |
Retail of telecommunications equipment |
|
F113070 |
Wholesale of telecommunications equipment |
|
F114030 |
Wholesale of automobile and motor components |
|
F114040 |
Wholesale of bicycle and components |
|
F114990 |
Wholesale of other transport machine and
components |
|
F214030 |
Retail of automobile and motor components |
|
F214040 |
Retail of bicycle and components |
|
F214990 |
Retail of other transport machine and
components |
|
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
components
The major products are bicycle chain, KMC easy chain checker, chain lube
and ceramic-like coated chain
The products of subject are mainly applied for Tour, City & Fixed
Gear, MTB, Road & Cross, BMX, Fixie & Track, e-Bike and Trekking
Subject’s sales regions include domestic market, Southeast Asia, North America and Europe
Subject’s major customers are manufacturers of bicycles
Import and export right:
|
Import right |
Yes |
|
Export right |
Yes |
Purchase
Domestic Purchase
|
Products |
Raw materials and components |
|
Payment Terms |
T/T, Cash |
Import
|
Products |
Raw materials and components |
|
Payment Terms |
L/C, T/T |
Domestic Markets
|
Product |
Bicycle components |
|
Selling Terms |
T/T, Cash |
Export
|
Product |
Bicycle components |
|
Selling Terms |
L/C, T/T |
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.
We found the consolidated financial
information of subject’s parent company (KMC (Kuei Meng) International Inc.)
from public files for reference.
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
assets |
|
|
|
Financial
assets available for sale - non current |
0 |
13,711 |
|
Property,
plant and equipment |
823,726 |
498,374 |
|
Net
investment real estate |
38,831 |
39,254 |
|
Intangible
Assets |
385,014 |
259,065 |
|
Deferred tax
assets |
72,733 |
67,805 |
|
Other
non-current assets |
275,152 |
189,918 |
|
Total other
non-current assets |
1,595,456 |
1,068,127 |
|
Total assets |
3,508,404 |
2,589,342 |
|
Current
liability |
|
|
|
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 |
|
Accounts
payable - related parties |
99,986 |
67,764 |
|
Other
accounts payable |
113,676 |
109,294 |
|
Tax liability
|
62,141 |
26,693 |
|
Other current
liability |
7,666 |
5,534 |
|
Total current
liability |
518,237 |
882,609 |
|
Non-current
liability |
|
|
|
Long-term
borrowings |
500,000 |
0 |
|
Deferred tax
liability |
200,910 |
189,116 |
|
Other
non-current liability |
24,570 |
20,801 |
|
Total non-current
liability |
725,480 |
209,917 |
|
Total
liability |
1,243,717 |
1,092,526 |
|
Ordinary capital stock |
1,092,102 |
1,056,102 |
|
Total capital stock |
1,092,102 |
1,056,102 |
|
Capital surplus |
|
|
|
Total 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 |
|
|
|
Total other equity |
61,295 |
18,480 |
|
Total equity attributable to owners parent |
2,264,479 |
1,496,634 |
|
Non-controlling interests |
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 |
|
Operating expenses |
|
|
|
Selling expenses |
250,013 |
124,181 |
|
Administrative expenses |
149,082 |
102,126 |
|
Research and development expenses |
12,097 |
15,974 |
|
Total operating expenses |
411,192 |
242,281 |
|
Operating income (loss) |
537,203 |
402,793 |
|
Non-operating income and expenses |
|
|
|
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 evaluation profit (loss) of financial assets available for sale |
-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) of the former equity under the jointly control |
0 |
-9,875 |
|
Profit (loss), attributable to
non-controlling interests |
14 |
-9,856 |
|
Comprehensive income, attributable to: |
|
|
|
Comprehensive income, attributable to owners
of parent |
505,777 |
406,010 |
|
Comprehensive income, the former equity
under the jointly control |
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 |
|
Bad debt
expense item number (income) |
-860 |
-4,302 |
|
Interest expense |
7,946 |
4,517 |
|
Interest income |
-6,697 |
-3,099 |
|
Dividends
income |
0 |
-645 |
|
Loss (gain) on disposal of property, plant and equipment |
278 |
-164 |
|
Loss (gain) on disposal of investment |
-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 |
|
Decrease (increase) in accounts receivable-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 |
|
Increase (decrease) in other payable |
17,978 |
8,436 |
|
Increase (decrease) in other current liabilities |
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 |
|
Cash flows from (used in) investing activities |
|
|
|
Disposal of the financial assets for sales |
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 collected |
0 |
645 |
|
Net cash flows from (used in) investing activities |
-955,701 |
-307,004 |
|
Cash flows from (used in) financing activities |
|
|
|
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 notes and bills payable |
0 |
49,997 |
|
Decrease in short-term notes and bills payable |
-49,997 |
0 |
|
Long-term borrowings |
550,000 |
20,000 |
|
Repayment of
long-term borrowings |
-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 |
Ms. Cai |
|
Department |
Sales Department |
|
E-mail: |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.17 |
|
|
1 |
Rs.100.66 |
|
Euro |
1 |
Rs.70.97 |
INFORMATION DETAILS
|
Analysis Done by
: |
KIN |
|
|
|
|
Report Prepared
by : |
ANK |
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.