3decades

MIRA INFORM REPORT

Report No. :	489165
Report Date :	02.02.2018

IDENTIFICATION DETAILS

Name :	SHINE KON ENTERPRISE CO., LTD.

Registered Office :	No.1, Lane 171, Dongjiulu St., Jiulu Li, Guishan Dist., Taoyuan City 33353, Taiwan, R. O. C.

Country :	Taiwan

Financials (as on) :	31.12.2016

Date of Incorporation :	22.04.1983

Com. Reg. No.:	31198604

Legal Form :	Private Limited Company

Line of Business :	Trading business of plastic machinery and equipment and the whole plant planning output

No. of Employees :	65

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating

Explanation

Rating Comments

Medium Risk

Business dealings permissible on a regular monitoring basis

Status :	Moderate

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

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

Taiwan

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

TAIWAN - ECONOMIC OVERVIEW

Taiwan has a dynamic capitalist economy that is driven largely by industrial manufacturing, and especially exports of electronics, machinery, and petrochemicals. This heavy dependence on exports exposes the economy to fluctuations in global demand. Taiwan's diplomatic isolation, low birth rate, rapidly aging population, and increasing competition from China and other Asia Pacific markets are other major long-term challenges.

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 of that year, 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 uncertain. President TSAI since taking office in May 2016 has promoted greater economic integration with South and Southeast Asia through the New Southbound Policy initiative and has also expressed interest in Taiwan joining the Trans-Pacific Partnership as well as bilateral trade deals with partners such as the US.

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 with many economies, including China and the US, 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 and has also secured greater market access for its investors on 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 renminbi (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 opportunities for Taiwan’s economy but also pose challenges as political differences remain unresolved and China’s economic growth is slowing. Domestic economic issues loomed large in public debate ahead of the January 2016 presidential and legislative elections, including concerns about stagnant wages, high housing prices, youth unemployment, job security, and financial security in retirement.

Source : CIA

ESSENTIAL CORPORATE INFORMATION

Registration No.：

31198604

English Company Name：

SHINE KON ENTERPRISE CO., LTD.

Registered Address in English：

No.1, Lane 171, Dongjiulu St., Jiulu Li, Guishan Dist., Taoyuan City 33353, Taiwan, R. O. C.

Address of Operating Office：

Same as above

URL：

http://www.shinekon.com.tw/

E-mail：

sk_sales@shinekon.com.tw；shinekon@sketech.com；sketech@ms3.hinet.net

TEL：

+886-3-3297218

FAX：

+886-3-3296557

+886-3-3291327

Established on：

April 22, 1983

No. of Employees：

Business Type：

Manufacturing Service Banking/Financing

NACE Code：

2841

2890

2896

3320

Business Size：

Super Large Large Medium Medium-Small Small

Legal Form：

Private Limited Company

● FACTORY AND BRANCH

Item		Address	Registration No.	Tel.	Fax.
	Factory	1F., No.22, Aly. 10, Lane 82, Yongfeng Rd., Bailu Li, Bade Dist., Taoyuan City 33466	99622765	NIL	NIL

● AFFILIATE

Registration No.		Company Name		Registered Person-in-Charge	Relationship to Subject Company
Registration No.		Chinese	English	Registered Person-in-Charge	Relationship to Subject Company
	22554790	遠雄國際投資(股)	FAR GLORY INTERNATIONAL INVESTMENT CO.,LTD.	Chao, Wen-Chia	Affiliate	Subsidiary
Information provided by Mr. Lee of financial department, ext. 110

● HISTORY

Change in Company Name/Form
	Subject company has kept its present name and form since its establishment.

● CAPITAL INCREASE/DECREASE

	Registered capital read at the time of establishment: N/A
Subsequent Capital Increase/Decrease
	YES
	Registered capital read NT$	198,000,000	in	NIL/	NIL	paid up to NT$	198,000,000
	Registered capital read NT$	60,000,000	in	NIL/	NIL	paid up to NT$	60,000,000

● PLAN FOR CAPITAL INCREASE/DECREASE & STOCK LISTING - NIL

● ACTUAL BUSINESS ITEMS/ ACTIVITIES

1.	Trading business of plastic machinery and equipment and the whole plant planning output

● MAIN SHAREHOLDERS

Name			Position	Stake (NT$)	Ratio (%)	Note
Representative of FAR GLORY INTERNATIONAL INVESTMENT CO.,LTD.
	Chao, Wei-Fen	趙惟芬	Chairman	9,363,640	15.61
	Chao, Ming-Fei	趙明飛	Director
	Wu, Yung-Fu	吳永富	Director
Representative of FAREAST LAND DEVELOPMENT CO., LTD.
	Chen, Yu-Mei	陳玉梅	Supervisor	9,120,000	15.20
Total No. of Shareholders：Declined
Source：Information obtained from the Taoyuan City Government

CORPORATE SHAREHOLDER OVERVIEW

Registration No.		Company Name		Address
Registration No.		Chinese	English	Address
	22554790	遠雄國際投資(股)	FAR GLORY INTERNATIONAL INVESTMENT CO.,LTD.	30F., No.1, Songgao Rd., Xinyi Dist., Taipei City 11073
	05151717	遠東建設事業(股)	FAREAST LAND DEVELOPMENT CO., LTD.	31F., No.1, Songgao Rd., Xinyi Dist., Taipei City 11073

● RELATIONSHIP BETWEEN MAIN SHAREHOLDERS

Spouse	Parent/Children	Siblings	Relatives/In-Laws	Schoolmates
Associates	Friends	Members in Farglory Group		Institutional Investors
Others (specified as follows)：

MANAGEMENT（CHAIRMAN AND GENERAL MANAGER）

Chairman-cum-General Manager
Name (Chinese)：		趙惟芬		English：	Chao, Wei-Fen (a. k. a.:W. F. JAW)		Sex：	Male	ID No.：	Declined
	Date of Birth：		1938
	Place of Birth：		Taiwan
	Education：		Elementary school
	Experience：		Manipulator, the founder of subject Owner of Yuan Yang Enterprise Store (遠揚企業商行)
	Years in Subject Company’s Line of Business：					More than 40 years
	Other Business Investments - NIL
Information provided by Mr. Lee of financial department, ext. 110

PREMISES

	Registered cum Operating Office：
	The rented premise reports of no initial building registry records.
	Factory：
	The premise is a rented property that reports a total floor space of 93.74 square meters and is registered under the name of Chen Ting-Yao and Chen Jan Yue-Chu.
Note：Information related to ownership status of subject premises is obtained from computerized official records issued by local land administration authority.

● MAJOR PRODUCTION FACILITY

Equipment		Quantity
	Die Casting Equipment	Adequate
	Hot and cold processing equipment	Adequate
	Testing equipment	Adequate

● MORTGAGE RECORD OF MOVEABLE PROPERTIES

	NIL
Source：Information obtained from official records kept by relevant government authorities.

● DOMESTIC SUPPLIERS

Raw Material / Product		Supplier		Payment Term
	Steels		Agents & distributors of CHINA STEEL CORPORATION		T/T on 30-90 Days term (100%)
	Motor		TECO ELECTRIC & MACHINERY CO., LTD.		T/T on 90 Days term (100%)
	Other related materials		Materials companies in related fields		90 Day Post-Dated Check (100%)

● OVERSEAS SUPPLIERS

Raw Material/ Products		Country/Region
	Wheel	Germany
	Bearing	United States
	Payment Terms
	T/T (100%)

● BRAND NAMES OF PRODUCTS LICENSED FOR SALE BY SUBJECT COMPANY

Subject company declines the brand name carried.

● DOMESTIC CUSTOMERS

Raw Material / Product

Customer

Payment Term

Plastic machinery and equipment and the whole plant planning output

NAN YA PLASTICS CORPORATION

FORMOSAN RUBBER GROUP INCORPORATE

OCEAN PLASTICS CO., LTD.

T/T on 30-90 Days term (100%)

● MAIN DOMESTIC SALES CHANNELS - NIL

● OVERSEA CUSTOMERS

Raw Material/ Products		Country/Region
	Plastic machinery & turkey project service (for export)	China, Japan, Malaysia, Singapore, Indonesia, Vietnam, Other SE Asian countries, India, Bangladesh, Pakistan, Israel, Iran, Saudi Arabia, Other Middle East countries, Italy, Other European countries, United States
	Payment Terms
	T/T (100%)

● OVERSEA PRODUCTION BASES / SALES OUTLETS

Country		Name of Company	Type
	Jiangsu, China	KUN SHAN SHINE KON ENTERPRISE CO., LTD.	Factory /Branch
	Shanghai, China	SHANGHAI SHINE KON ENTERPRISE CO., LTD.	Office /Sales point

● COMPLIANCE WITH LOCAL / INTERNATIONAL STANDARDS - NIL

● BANKERS

	Mega International Commercial Bank, Taoyuan Branch	Account No.：Declined
	Active since：Declined	Current Status：Normal Dishonored
Information provided by Mr. Lee of financial department, ext. 110

● PAYMENT RECORD

As of Jan. 26, 2018, relevant records obtained from Clearing House indicate：
	No dishonored banking record filed against subject company during the past three years.
	No dishonored banking record filed against subject company’s registered person-in-charge during the past three year.

● STATUS AS QUALIFIED GOVERNMENT SUPPLIER

	Subject company’s status as a qualified government supplier has not been suspended during the past one year.
Source：Public Construction Commission, Executive Yuan, and relevant government agencies.

● LITIGATION/COURT RECORD

	Subject company has been involved in neither litigation nor legal proceeding during the past two years.
Source：Gazettes by the Judicial Yuan of the Republic of China.

● INTELLECTUAL PROPERTY（PATENT and TRADEMARK）

		No patent is found registered under the name of subject company.
		A total of 7 trademarks is found registered under the name of subject company；the most recent 5 items are listed as follows for reference：
No.			Registration No.	Trademark
	1		00454663	SKETECH
	2		00021010	SHINE KON
	3		00328294	SHINE KON
	4		00021011	翔工及圖
	5		00324832	翔工及圖
Source：Intellectual Property Office, Ministry of Economic Affairs, R.O.C.

● OPERATING INCOME 2014~2016（NT$：1,000）

	2016	％	2015	％	2014	％
Domestic Sales	60,000	10.00	－－	－－	－－	－－
Export Value	540,000	90.00	－－	－－	－－	－－
Total	600,000	100	－－	100	－－	100
Growth (%)	－－	%	－－	%	－－	%

● TRADE RECORD（USD）

YEAR	TOTAL IMPORT	TOTAL EXPORT
2016	0-500,000	5,000,000-6,000,000
2015	0-500,000	3,000,000-4,000,000
2014	500,000-1,000,000	5,000,000-6,000,000
Source：Public records at Bureau of Foreign Trade

● 01/01~12/31, 2016：BREAKDOWN OF SALES BY PRODUCTS（NT$：1,000）

PRODUCT		SALES	％
	Plastic machinery & turkey project service (for export)	600,000	100.00

● SALES PERFORMANCE 01~11, 2017（NT$：1,000）

－－

● FINANCIAL PROFILE（NT$：1,000）

As of	12/31/2017	12/31/2016	12/31/2015	12/31/2014
Paid-in Capital	－－	60,000	－－	－－
Net Worth	－－	200,000	－－	－－
Total Liabilities	－－	350,000	－－	－－
Assets	－－	550,000	－－	－－
Business Performance	01~12, 2017	01~12, 2016	01~12, 2015	01~12, 2014
Net Sales	－－	600,000	－－	－－
Operating Income	－－	15,000	－－	－－
Net Income	－－	11,000	－－	－－

Information on net sales provided by subject company; others estimated by

● BANK LINE OF CREDIT

YES, (summarized as follows)：

Subject’s total credit limit is NT$ 500 millions, and the company has withdrawn around 5 millions.

● CORPORATE RANKING 2014~2016

Subject company is not listed in the Top 1000 Largest Corporation in Taiwan and is not listed in the Directory of Leading Importers and Exporters in Taiwan.

SUMMARY

Subject company’s attitude toward credit reporting： Wary but generally cooperative
	Subject company is engaged in trading business of plastic machinery & turkey project service (for export). The products cover rigid /semi-rigid PVC Sheet and film plant equipment, flexible PVC transparent sheet and film plant equipment, PVC leather and sponge leather plant equipment, banner coater, dry/wet PU and PVC synthetic leather plant equipment, automatic screen printing equipment, DMF solvent recovery equipment and injection molding machine. Subject is one of the affiliates of FAR GLORY INTERNATIONL GROUP.
	Approximately 80.00% of the needed raw materials are procured from domestic agents & distributors of CHINA STEEL CORPORATION, TECO ELECTRIC & MACHINERY CO., LTD. and materials companies in related fields. The remaining 20.00% materials are imported from Germany and United States.
	Subject relies mainly on export sale. Export sales revenues account for around 90.00% of the total sales. Major export markets include China, Japan, Malaysia, Singapore, Indonesia, Vietnam, other SE Asian countries, India, Bangladesh, Pakistan, Israel, Iran, Saudi Arabia, other Middle East countries, Italy and other European countries, United States. The rest 10.00% business revenues are contributed by major domestic customers who include NAN YA PLASTICS CORPORATION, FORMOSAN RUBBER GROUP INC. and OCEAN PLASTICS CO., LTD.
	Subject’s oversea branch is founded by company’s sub-investment, having 150 employees.
	According to subject, its sales performance in recent years has been well and of stable growth. It is expected to be optimistic toward sales performance in this year.

RESULT OF MEDIA SEARCH

No adverse news or reports related to subject company and its registered person-in-charge have been identified during the past two years.

OUR COMMENTS

Credit or business dealings with subject company are deemed acceptable while monitoring on a regular basis remains desirable.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.61
UK Pound	1	INR 90.17
Euro	1	INR 78.95
TWD	1	INR 2.19

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	NIY

Report Prepared by :	TPT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.