MIRA INFORM REPORT

Report No. :	492008
Report Date :	14.02.2018

IDENTIFICATION DETAILS

Name :	YUANG HSIAN METAL INDUSTRIAL CORP.

Registered Office :	No.175, Chang Shui Rd., Chang Hua, Taiwan 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 & rod

No. of Employees :	200

RATING & COMMENTS

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

MIRA’s Rating :

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

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

Company name and address

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 R.O.C.
Telephone Number:	+886-4761-3688/4752-4626
Fax Number:	+886-4761-2289
E-mail:	info@yhm.com.tw yhmco@ms2.hinet.net

Notes: The exact name and address are as above.

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 16,988,100)
Paid-up Capital:	NTD 499,650,000 (USD 16,988,100)
Legal Representatives:	Qingxiu Zhang
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sale of copper alloy wire & rod, etc.
Staff:	About 200 employees
Listed at Stock Exchange:	No
Date of Last Annual Return:	2017-4-6

History

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

Corporate Structure

Factories

1
Address:	No.175, Chang Shui Rd., Citong Li, 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 metal
2
Name:	The 2^nd Factory
Address:	No.35, Ln. 183, Chang Shui Rd., Citong Li, 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

Shareholders

Major Shareholders

Name	Subscription Shares
Qingxiu Zhang
2,743
Guoyang Zhang	2,249
Guogeng Zhang	4,000
Guoguan Zhang	3,055
Guoda Zhang	2,921

Management Information

Core Management

Directors

1
Name		Qingxiu Zhang
Position		Chairman of the Board
2
Name	Guoyang Zhang
Position		Director
3
Name	Guogeng Zhang
Position		Director
4
Name	Guoguan Zhang
Position		Director
5
Name	Guoda Zhang
Position		Supervisor

Personnel Structure

Total Employees

About 200 employees

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 & rod, etc.

Subject has factories in Taiwan for production.

Subject obtained the certifications 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.
--	Import and export of above products and its raw materials
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 purchased both at home and abroad.

Sales Information

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

The major products are free cutting brass wire & rod, copper alloy wire, EDM wire, copper anode, soudronic can welding wire and so on.

It is introduced that the products are applied for industries of electronics, chemical engineering, jewelry, etc.

It is introduced that subject has its own brand named "YUANCUT".

Subject’s sales regions include domestic market, Asia, Europe, North and South America, Oceania, South Africa, etc.

The general delivery lead time of subject is about 15-30 days.

It is introduced that subject’s major customers include Offshore Metals America Inc. and NICKUNJ EXIMP ENTERPRISES PVT. LTD (India), 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 & rod, etc.
Selling Terms	T/T, Cash, etc.

Export

Product	Copper alloy wire & rod, 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

Name	Mega International Commercial Bank Co., Ltd.

Note: The supplied Bankers: FIRST COMMERCIAL BANK is not confirmed from any source.

Public Record

Mortgage

1
Case Type:	Chattel Mortgage
Registered Number:	060851
Debtor Name:	Yuang Hsian Metal Industrial Corp.
Registry:	MOEA Central Office
Name of Mortgagee:	The International Commercial Bank of China, Chang Hua Branch
Date of Registration:	1999-2-1
Amount of Secure Claims:	NTD 43,200,000
Type of Mortgage:	Machinery equipment or tools
2
Case Type:	Chattel Mortgage
Registered Number:	058942
Debtor Name:	Yuang Hsian Metal Industrial Corp.
Registry:	MOEA Central Office
Name of Mortgagee:	The International Commercial Bank of China, Chang Hua Branch
Date of Registration:	1998-8-13
Amount of Secure Claims:	NTD 11,000,000
Type of Mortgage:	Machinery equipment or tools
3
Case Type:	Chattel Mortgage
Registered Number:	067497
Debtor Name:	Yuang Hsian Metal Industrial Corp.
Registry:	MOEA Central Office
Name of Mortgagee:	CTBC Bank Co., Ltd. Chang Hua Branch
Date of Registration:	2000-9-11
Amount of Secure Claims:	NTD 26,400,000
Type of Mortgage:	Machinery equipment or tools
4
Case Type:	Chattel Mortgage
Registered Number:	082913
Debtor Name:	Yuang Hsian Metal Industrial Corp.
Registry:	MOEA Central Office
Name of Mortgagee:	Bank of Communications Co., Ltd. Chang Hua Branch
Date of Registration:	2005-3-21
Amount of Secure Claims:	NTD 45,500,000
Type of Mortgage:	Machinery equipment or tools

Lawsuit

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

Special Note

Interview Details

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 :	NIS

Report Prepared by :	SYL

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.