MIRA INFORM REPORT

Report No. :	491689
Report Date :	15.02.2018

IDENTIFICATION DETAILS

Name :	HONG JIANG ELECTRONICS CO., LTD.
Registered Office :	5F, No. 649-3, Zhongzheng Rd., Xinzhuang Dist., New Taipei City 24257, Taiwan, R. O. C.
Country :	Taiwan
Date of Incorporation :	21.09.1994
Com. Reg. No.:	89855177
Legal Form :	Private limited company
Line of Business :	R&D, design, manufacture and sale of elevator peripherals, industrial TFT display monitor & human-machine interactive device, digital communication integration system, web-based monitoring and control system, building automation management monitoring and control system and industrial factory & commercial building automation system
No. of Employees :	100

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 :	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

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

GIVEN DATA OF SUBJECT COMPANY

Given Name：	HONG JIANG ELECTRONICS CO LTD
Given Address：	9F, No 649-3, Zhongzheng Rd, Xinzhuang, Dist, New Taipei City 24257
Verification Remark：	The given address refers to that of subject company’s： Factory

ESSENTIAL CORPORATE INFORMATION

Registration No.：	89855177
English Company Name：	HONG JIANG ELECTRONICS CO., LTD.
Registered Address in English：	5F, No. 649-3, Zhongzheng Rd., Xinzhuang Dist., New Taipei City 24257, Taiwan, R. O. C.
Address of Operating Office：	Same as above
URL：	http://www.hj.com.tw/; http://www.elevatorcomponents.com/
E-mail：	export@hj.com.tw
TEL：	+886-2-2903-7228
FAX：	+886-2-2903-7256
Established on：	September 21, 1994
No. of Employees：	100
Business Type：	Manufacturing Service Banking/Financing
NACE Code：	2710	2711	2712
Business Size：	Super Large Large Medium Medium-Small Small
Legal Form：	Private limited company

FACTORY AND BRANCH

Item		Address	Registration No.	Tel.	Fax.
	Factory	5F & 9F, No. 649-3, Zhongzheng Rd., Xinzhuang Dist., New Taipei City 24257	65000257	+886-2-2903-7228	+886-2-2903-7256
	Electronics Plant	8F, No. 651-7 & 651-8, Zhongzheng Rd., Xinzhuang Dist., New Taipei City 24257 24257	65004412

AFFILIATE

Registration No.		Company Name		Registered Person-in-Charge	Relationship to Subject Company
			English
	29131889		Te Yi Lian Ho Technology Co., Ltd.	Tseng, Chiu-Hao	Affiliate	Subsidiary
Information obtained from secondary sources

HISTORY

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

CAPITAL INCREASE/DECREASE

	Current registered capital read NT$ 150,000,000 (fully paid-up) at the time of establishment.
Subsequent Capital Increase/Decrease
	NIL

PLAN FOR CAPITAL INCREASE/DECREASE & STOCK LISTING – NIL

ACTUAL BUSINESS ITEMS/ ACTIVITIES

1.

R&D, design, manufacture and sale of elevator peripherals, industrial TFT display monitor & human-machine interactive device, digital communication integration system, web-based monitoring and control system, building automation management monitoring and control system and industrial factory & commercial building automation system, etc.

MAIN SHAREHOLDERS

Name		Position	Stake (NT$)	Ratio (%)	Note
	Hung, Chi-Jung	Chairman	149,600,000	99.74
	Tseng, Chiu-Hao	Director	200,000	0.13
	Tai, Mei-Kuei	Director	200,000	0.13
	Liu, Yu-Ying	Supervisor	0	0.00
Total No. of Shareholders：3

CORPORATE SHAREHOLDER OVERVIEW – NIL

RELATIONSHIP BETWEEN MAIN SHAREHOLDERS

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

MANAGEMENT（CHAIRMAN AND GENERAL MANAGER）

Chairman cum General Manager（President）
English：		Hung, Chi-Jung			Sex：	Male	ID No.：		Declined
	Date of Birth：		In his 50s
	Place of Birth：		Taiwan
	Education：		College graduate
	Experience：		Declined
	Years in Subject Company’s Line of Business：							More than 20 years
	Other Business Investments									Position
				English Company Name
				Te Yi Lian Ho Technology Co., Ltd.						Director

PREMISES

	Registered cum Operating Office, Factory：
	The self-owned premise reports a total floor space of 652.68 square meters and is registered under the name of HONG JIANG ELECTRONICS CO., LTD.. The premise has been mortgaged to Mega International Commercial Bank at a maximum mortgage value of NT$ 60,000,000 for a term of 30 years starting on June 19, 2017.
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
	Related production facilities	Adequate

MORTGAGE RECORD OF MOVEABLE PROPERTIES

NIL

DOMESTIC SUPPLIERS

Raw Material / Product		Supplier		Payment Term
	Metal, Plastics, Electronic parts		Companies in related fields		Based on agreed terms

OVERSEAS SUPPLIERS

Raw Material/ Products		Country/Region
	Electronic parts	China, Hong Kong, Japan, Thailand, Other SE Asian countries
	Payment Terms
	Based on agreed terms

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
	Elevator electronic pieces Industrial electronic automation control equipments		TAIWAN MITSUBISHI ELEVATOR CO., LTD. FUJITEC TAIWAN CO., LTD. OTIS ELEVATOR COMPANY (TAIWAN) LIMITED KONE ELEVATORS TAIWAN CO., LTD.		Based on agreed terms

MAIN DOMESTIC SALES CHANNELS – NIL

OVERSEAS CUSTOMERS

Raw Material/ Products		Country/Region
	Elevator electronic pieces Industrial electronic automation control equipments	SE Asia, India, Middle East, United States, Europe, Latin America
	Payment Terms
	Based on agreed terms

OVERSEAS PRODUCTION BASES / SALES OUTLETS

Country		Name of Company	Type
	Shanghai, China		Factory	Subsidiary/Branch	Office	Other：

COMPLIANCE WITH LOCAL / INTERNATIONAL STANDARDS

ISO-9001:2008 certified in 2001

BANKERS

Mega International Commercial Bank, Xinzhuang Branch	Account No.：Declined
Active since：Declined	Current Status：Normal Dishonored

PAYMENT RECORD

As of Feb. 09, 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 QUALIFIED GOVERNMENT SUPPLIER

Subject company’s status as a qualified government supplier has not been suspended during the past one year.

LITIGATION/COURT RECORD

Subject company has been involved in neither litigation nor legal proceeding during the past two years.

INTELLECTUAL PROPERTY（PATENT and TRADEMARK）

		A total of 3 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		00169089	宏匠實業股份有限公司標章(一)
	2		00169751	宏匠實業股份有限公司標章(二)
	3		00812865	宏匠實業股份有限公司標章
		A total of 3 patents is found registered under the name of subject company；the most recent 5 items are listed as follows for reference：
No.			Registration No.	Patent
	1		545481	電梯顯示屏幕之亮度自動調變裝置 Automatically illumination control device of an elevator display screen
	2		436217	對講機 INTERCOM
	3		400851	電梯車廂之緊急通報裝置 Emergency communication device in the elevator car

OPERATING INCOME 2014~2016（NT$：1,000）

Subject company declines to reveal related information for security reasons.

TRADE RECORD（USD）

YEAR	TOTAL IMPORT	TOTAL EXPORT
2016	0-500,000	2,000,000-3,000,000
2015	0-500,000	2,000,000-3,000,000
2014	0-500,000	2,000,000-3,000,000

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

Subject company declines to reveal related information for security reasons.

SALES PERFORMANCE 01~12, 2017（NT$：1,000）

－－

FINANCIAL PROFILE（NT$：1,000）

Subject company declines to reveal related information for security reasons.

BANK LINE OF CREDIT

YES, (summarized as follows)：However, subject declined to reveal the total credit limit.

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： Not cooperative (declining to provide detailed information)
	The employee, Ms. Hu at accounting dept., receiving credit report declined to provide any background information and claimed to consider cooperation only if the identity of our client was revealed. Since the subject declined to provide further financial and operational information, there is no way to predict the prospect of subject’s business performance. Proper caution is a must in any business dealings with the subject.
	Secondary source indicates that subject is specialized in R&D, design, manufacture and sale of elevator peripherals, industrial TFT display monitor & human-machine interactive device, digital communication integration system, web-based monitoring and control system, building automation management monitoring and control system and industrial factory & commercial building automation system, etc.
	Product items include elevator intercom system, speech synthesizer, electronic floor arrival ring(bell), elevator digital communication system, emergent direct talk system, nearby monitor & control system, elevator carriage data display system and power supply, mainly relying on sale of elevator electronic pieces. Currently, subject plans to establish production base at Bangkok (at Thailand) and still under conducting process (not into formal production). Products are promoting under self-owned brand, HONG JIANG, over domestic and international market.
	Most of the business products or needed raw materials are procured from domestic companies in related fields. The rest few of them are imported from China, Hong Kong, Japan, Thailand and other SE Asian countries, etc.
	Subject relies mainly on export sale that accounts for approximately 70.00% of its total business revenues. Major export markets include SE Asia, India, Middle East, United States, Europe and Latin America, etc. The rest 30.00% business revenues are contributed by domestic customers that include TAIWAN MITSUBISHI ELEVATOR CO., LTD., FUJITEC TAIWAN CO., LTD., OTIS ELEVATOR COMPANY (TAIWAN) LIMITED and KONE ELEVATORS TAIWAN CO., LTD., etc. Subject’s customers include many world well-known brands that include Mitsubishi, Hitachi, OTIS, FUJITEC and KONE, etc.
	Secondary source indicates that its self-owned capital appears to be roughly enough to meet the operational needs, load of liabilities and/or loans from shareholders seem to be at acceptable level; short-term solvency is normal. Sales performance in recent years appears to be steady with approximate annual sale revenues around NT$ 200 to 600 millions.

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

Not enough information and data could be obtained to facilitate the rating. Proper caution is a must in any business dealings with subject company.

APPENDICES - NIL

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.13
UK Pound	1	INR 89.17
Euro	1	INR 79.39
TWD	1	INR 2.20

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

INFORMATION DETAILS

Analysis Done by :	PRI
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)

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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.