MIRA INFORM REPORT

Report No. :	492148
Report Date :	14.02.2018

IDENTIFICATION DETAILS

Name :	NAM LIONG ENTERPRISE CO., LTD.
Registered Office :	No.10 Lane 41 Chou-Wei St. Yen-Chou Li, Yung Kang Dist., Tainan City, Taiwan, R.O.C.
Country :	Taiwan
Date of Incorporation :	18.12.1972
Com. Reg. No.:	73176434
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and Sale of Textiles and etc.
No. of Employees :	About 500

RATING & COMMENTS

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

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

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

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
Taiwan	A1	A1

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

Contact Points

Company Name:	NAM LIONG ENTERPRISE CO., LTD.
Supplied Name:	NAM LIONG ENTERPRISES CO LTD
Trading Address:	No.10 Lane 41 Chou-Wei St. Yen-Chou Li, Yung Kang Dist., Tainan City, Taiwan, R.O.C.
Supplied Address:	Taiwan
Telephone Number:	+886-6-253-4161
Fax Number:	+886-6-254-0813
E-mail:	sponge@namliong.com.tw

Notes: The exact name and address are as above.

Company Identification Details

Registered Name:	Nam Liong Enterprise Co., Ltd.
Registered Address:	No.10 Lane 41 Chou-Wei St. Yen-Chou Li, Yung Kang Dist., Tainan City, Taiwan, R.O.C.
Date of Foundation:	1972-12-18
Registration Number:	73176434
Registry:	Tainan City Government
Registered Capital:	NTD 500,000,000 (USD 15,000,000) (As of 2018.02, 1 NTD = 0.03 USD)
Paid-up Capital:	NTD 102,000,000 (USD 3,060,000)
Legal Representatives:	Dengbo Xiao
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sale of textiles and etc.
Staff:	About 500 Employees
Listed at Stock Exchange:	No
Date of Last Annual Return:	2017-7-6

History

Subject was incorporated on 1972-12-18 with registered number 73176434 as Joint Stock Company in Taiwan.

Corporate Structure

Factories

1
Address:	No.10 Lane 41 Chou-Wei St. Yen-Chou Li, Yung Kang Dist., Tainan City, Taiwan, R.O.C.
Date of Foundation:	1973-11-29
Date of Registration:	1975-4-15
Factory Registration Number:	99661026
Factory Manager:	Dengbo Xiao
Status:	In Production
Date of Last Annual Return:	2002-9-27
Major Products:	111 spinning 112 woven cloth 113 non woven cloth 115 textile 121 tatting garment 122 knitted garment 123 garment accessories 130 leather, fur and related products 210 plasthetics
2
Name:	Niaosong Factory
Address:	Bldg A, No.127, Zhengbei 5^thRoad, Sanmin Li, Yongkang District, Tainan City, Taiwan
Telephone Number:	+886-6-242-0633
Fax Number:	+886-6-242-0649
Date of Foundation:	1998-1-13
Date of Registration:	1998-7-6
Factory Registration Number:	99656324
Factory Manager:	Dengbo Xiao
Status:	In Production
Date of Last Annual Return:	2013-6-19
Major Products:	111 spinning 220 plasthetics 332 medical equipment and supplies
Tel	+886-6-2420633
Fax	+886-6-2420649
3
Address:	No.357, Ren’ai St., Yongkang Dist., Tainan City, Taiwan (R.O.C.)
Date of Registration:	2017-6-8
Factory Registration Number:	67001793
Factory Manager:	Dengbo Xiao
Status:	In Production
Date of Last Annual Return:	2017-6-8
Major Products:	115 textile
Address:	No.57, Lane 217, Sec. 1, Changhe Rd., Annan Dist., Tainan City, Taiwan (R.O.C.)
Date of Registration:	2015-12-14
Factory Registration Number:	T6700401
Factory Manager:	Dengbo Xiao
Status:	In Production
Date of Last Annual Return:	2015-12-14
Major Products:	113 non woven cloth

Major Related Companies

Dongguan Nanguang Rubber & Plastics Products Co., Ltd. (Dongguan City, China)

Dongguan Nande Rubber & Plastics Products Co., Ltd. (Dongguan City, China)

Shanghai Nande Textile Science & Technology Co., Ltd. (Shanghai City, China)

Dongguan Nanxiang Sporting Products Co., Ltd. (Dongguan City, China)

Dongguan Nanliang Rubber Products Co., Ltd. (Dongguan City, China)

Jiaxing Nanxiong High Polymer Materials Co., Ltd. (Taiwan)

Glomex Inc. (USA)

Shareholders

Major Shareholders

Name	Subscription Shares
Dengbo Xiao
2,322,682
Quancheng Wang	191,183
Chonghu Xiao	379,145
Chunchi Hong	828,960
Yuli Lai	75,829
Jiasheng Gu	318,482

Management Information

Core Management

Directors

1
Name		Dengbo Xiao
Position		Board Chairman
2
Name	Quancheng Wang
Position		Director
3
Name	Chonghu Xiao
Position		Director
4
Name	Chunchi Hong
Position		Director
5
Name	Yuli Lai
Position		Director
6
Name	Jiasheng Gu
Position		Supervisor

Personnel Structure

Total Employees

About 500 Employees

Operation Information

Offices & Factories

	Headquarters
Add	No.10 Lane 41 Chou-Wei St. Yen-Chou Li, Yung Kang Dist., Tainan City, Taiwan, R.O.C.

Production Information

Subject is engaged in manufacturing of textile and etc.

Subject has factories in Tainan City, Taiwan for production.

It is introduced that subject’s related company has plants in Dongguan City, Guangdong Province, the mainland of China for production.

Subject obtained the certification of ISO 9001:2008.

Purchase Information

The registered activities of subject:

Business Code	Details
C301010	Spinning industry
C302010	Weaving industry
C303010	Non weaving industry
C306010	Garment industry
C399990	Manufacturing of other textile products
C402030	Manufacturing of leather and fur products
C804020	Manufacturing of industrial rubber products
C804990	Manufacturing of other rubber goods
C805020	Manufacturing of plastic film and bag
C805990	Manufacturing of other plasthetics
C901010	Manufacturing of ceramics and ceramics products
C901020	Manufacturing of glass and glass products
C901060	Manufacturing of refractory materials
CF01011	Manufacturing of medical equipment
CI01020	Manufacturing of carpet and felt
CK01010	Shoes industry
CM01010	Manufacturing of suitcase and bag
CZ99990	Manufacturing of other unclassified industrial products
F104110	Wholesale of textiles, garments, shoes, hats, umbrellas and accessories
F105050	Wholesale of furniture, bedding, kitchen utensil and decoration
F106050	Wholesale of glass-ceramic ware
F107170	Wholesale of industrial auxiliaries
F107990	Wholesale of other chemical products
F108031	Wholesale of medical equipment
F109070	Wholesale of stationery, musical instrument and recreational supply
F120010	Wholesale of refractory material
F199990	Other wholesale business
F204110	Retail of textiles, garments, shoes, hats, umbrellas and accessories
F205040	Retail of furniture, bedding, kitchen utensil and decoration
F207990	Retail of other chemical products
F208031	Retail of medical equipment
F209060	Retail of stationery, musical instrument and recreational supply
F214040	Retail of bicycle and related components
F220010	Retail of refractory material
F299990	Other retail business
F399040	No store retail
F401010	International trade business
G799990	Other supporting and auxiliary transport business
I103060	Management consulting business
I199990	Other consulting business
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

The raw materials for production are mostly purchased in domestic market.

Sales Information

Subject is engaged in sale of textile and etc.

It is introduced that subject was divided into 4 divisions including rubber sponge division, fastening-tapes division, tech-textile division and tech material division.

Subject’s major products include rubber sponge sheet, fabric, embossed, neoskin, ultra multi skin (UMS), hook & loop, Pile Weatherstripping, webbing bands, brushed fabric, multi-functional fabric series, high performance yarn, webbing series, protective product series, multi-functional laminates series, waterproof glove insert series and etc.

The products are applied to shoes, garment, sport goods, medical equipment and automotive interior trim, etc.

Subject has its own brands such as SEAMATE, i-FOAM AND CMATE and etc.

Subject’s sales region covers Asia, Europe, America and etc.

Subject’s major customers are textile industry, garment industry and etc.

Subject has many foreign customers such as Techniclean Halco Inc, Eastex Products Inc, Entremonde Polyecoaters Ltd and De Calzado Jovical S A., etc.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

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

Import

Subject has little import.

Sales

Domestic Markets

Product	Textile materials, etc
Selling Terms	Cash, T/T, etc

Export

Product	Textile materials, 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 Ms. Lin 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

1
Case Type:	Chattel Mortgage
Registered Number:	000163
Debtor Name:	Nam Liong Enterprise Co., Ltd.
Registry:	Economic Development Bureau, Tainan City Government
Name of Mortgagee:	Land Bank of Taiwan
Date of Registration:	2011-12-23
Amount of Secure Claims:	NTD 37,643,000
Type of Mortgage:	Machinery, equipment and tools
2
Case Type:	Chattel Mortgage
Registered Number:	064961
Debtor Name:	Nam Liong Enterprise Co., Ltd.
Registry:	Economic Development Bureau, Tainan City Government
Name of Mortgagee:	Bank of Communications Co., Ltd
Date of Registration:	2000-2-19
Amount of Secure Claims:	NTD 19,746,000
Type of Mortgage:	Machinery, equipment and tools

Lawsuit

Trial Number:	2003,Nanjian,594
Date of Trial:	2003-4-14
Reason:	Payment for goods
Claimant:	Nam Liong Enterprise Co., Ltd.
Defendant:	Shuiying Diving Equipments Enterprise Company (Literal Translation)

Special Note

Interview Details

Name	Ms. Lin
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.28
UK Pound	1	INR 89.02
Euro	1	INR 78.93
TWD	1	INR 2.19

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

INFORMATION DETAILS

Analysis Done by :	DIV
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.