MIRA INFORM REPORT

Report No. :	343717
Report Date :	12.10.2015

IDENTIFICATION DETAILS

Name :	YUANG HSIAN METAL INDUSTRIAL CORP.

Registered Office :	No.175, Chang Shui Rd., Chang Hua R.O.C.

Country :	Taiwan

Date of Incorporation :	31.08.1976

Com. Reg. No.:	59246402

Legal Form :	Joint Stock Company

Line of Business :	Manufacturing and Sale of Copper Alloy Wire.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

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

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:	Yuang Hsian Metal Industrial Corp.
Supplied Name:	YUANG HSIAN METAL INDUSTRIAL CORP
Trading Address:	No.175, Chang Shui Rd., Chang Hua Taiwan R.O.C.
Supplied Address:	175 CHANG SHOEI ROAD CHANG HUA
Telephone Number:	+886-4-752-4626/761-3688
Fax Number:	+886-4-761-1717

Company Identification Details

Registered Name:	Yuang Hsian Metal Industrial Corp.
Registered Address:	No.175, Chang Shui Rd., Chang Hua Taiwan R.O.C.
Date of Foundation:	1976-8-31
Registration Number:	59246402
Registry:	MOEA Central Office
Registered Capital:	NTD 499,650,000 (USD 15,489,150) (As of 2015.10, 1 NTD = 0.0310 USD)
Paid-up Capital:	NTD 499,650,000 (USD 15,489,150)
Legal Representatives:	Qingxiu Zhang
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sale of copper alloy wire, etc.
Staff:	N/A
Listed at Stock Exchange:	No
Date of Last Annual Return:	2014-11-11

Note: Subject declined to disclose the number of staff, and from other source we cannot obtain the information, either.

History

Subject was incorporated on 1976-8-31 with registered number 59246402 as Joint Stock Company in Taiwan.

Corporate Structure

Factories:

1
Name:	The Second Factory
Address:	No.35, Ln.183, Chang Shui Rd., Chang Hua Taiwan R.O.C.
Date of Foundation:	1998-3-10
Date of Registration:	2000-3-20
Factory Registration Number:	99647566
Factory Manager:	Qingxiu Zhang
Status:	In production
Date of Last Annual Return:	2014-3-4
Major Products:	243 Copper
2
Address:	No.175, Chang Shui Rd., Chang Hua Taiwan R.O.C.
Date of Foundation:	1979-3-19
Date of Registration:	1982-1-4
Factory Registration Number:	99647521
Factory Manager:	Qingxiu Zhang
Status:	In production
Date of Last Annual Return:	2014-3-4
Major Products:	243 Copper 249 Other basic metals

Shareholders

Major Shareholders

Name	Subscription Shares
Qingxiu Zhang	2,743
Guozhen Zhang
3,067
Guotong Zhang	2,607
Guoguan Zhang	3,055
Gouda Zhang	2,921

Management Information

Core Management

Directors

1
Name		Qingxiu Zhang
Position		Board Chairman
2
Name	Guozhen Zhang
Position		Director
3
Name	Guotong Zhang
Position		Director
4
Name	Guoguan Zhang
Position		Director
5
Name	Gouda Zhang
Position		Supervisor

Operation Information

Offices & Factories

	Headquarters
Add	No.175, Chang Shui Rd., Chang Hua Taiwan R.O.C.

Production Information

Subject is engaged in manufacturing of copper alloy wire, etc.

Subject has factories in Taiwan for production.

Subject obtained the certification of ISO 9001 and ISO 9002.

Purchase Information

The registered activities of subject:

Business Code	Details
--	Advanced nonferrous metal materials manufacturing business.
--	Copper alloy wire and rod manufacturing business.
--	Copper, iron, castings of milling manufacturing processing business.
--	Automobile motorcycle bicycle parts manufacturing processing and sale.
--	All kinds of precision machinery parts manufacturing business.
CB01010	Machinery and equipment manufacturing industry.
--	Before the relevant raw materials and products import and export business.
F199990	Other wholesale (copper slag and zinc slag).
F299990	Other retail (copper slag and zinc slag).
F401010	International trade industry.
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

The raw materials for production are both purchased at home and abroad.

Sales Information

Subject is engaged in sale of copper alloy wire, etc.

The major products sold by the subject include free cutting brass rod & wire, copper alloy wire, EDM wire, copper anode, soudronic can welding wire, etc.

It is introduced that the products’ range of the subject is 12.0 – 0.10m/m.

Subject’s sales regions domestic market, Japan, Southeast Asia, USA, South America, South Africa, Australia, etc.

Subject’s major customers are manufacturers of electronic products, computers and autos, etc.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Products	Raw materials, etc.
Payment Terms	T/T, Cash, etc.

Import

Products	Raw materials, etc.
Payment Terms	L/C, T/T, etc.

Sales

Domestic Markets

Product	Copper alloy wire, etc.
Selling Terms	T/T, Cash, etc.

Export

Product	Copper alloy wire, 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

Case Type:	Chattel Mortgage
File No.:	082913
Debtor Name:	Yuang Hsian Metal Industrial Corp.
Document Number:	09405088370
Date of Registration:	2005-3-21

Lawsuit

Up to date of reporting, no existing or latent litigation of the subject has been found.

Special Note

Interview Details

Name	Mr. Zhang
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.78
UK Pound	1	Rs.99.54
Euro	1	Rs.73.08

INFORMATION DETAILS

Analysis Done by :	KAS

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.