ZitCong Inc. is a Taiwanese owned multinational corporation. It has been operating in Taiwan for the...

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ZitCong Inc. is a Taiwanese owned multinational corporation. It has been operating in Taiwan for the past 17 years. Its main office is in Taipei. Its main line of business is marketing of second hand vehicles from Europe, Japan and South Korea. Such vehicles are completely overhauled. The company lives with the mission of providing the transportation needs and conveniences of the riding public. It is also engaged in the marketing of vehicle parts from abroad. It is registered in the Securities and Exchange Commission as Zitkong Inc. For the fiscal year 2001, it has registered an asset of $ 420 million, gross revenue of $215 million, net income of $ 14 million and payables amounting to $ 176 million. For the year 2015, its asset has ballooned to $ 680 million, gross revenue of $ 198 million, net income of $ 2.7 million and liability $ 178 million. Its top management is composed of mainly Taiwanese nationals. It imposes a corporate culture of professionalism and consumer first service. For the year 2002, it is on top of competition in its line of business with respect to complaints and litigation. On February 1998, Alilea Jao, an inventory clerk, was pinned by a truck hawler during her duty. The management declared it as an accident. The employee died on the spot. Her family was paid $ 125 thousand. Five months thereafter, series of accidents involving 9 of its sold vehicles happened. Eleven fatalities were registered. Investigators cited mechanical breakdown specifically break failures as the caused of the accidents. The cases are still under court proceedings. On November 2000, two Arab investors infused funds in the company. Twenty days after, some Taiwanese stockholders sold their stocks of Zitcong as a reaction to the entry of other nationals. Thereafter, Zitcong became a multicultural company of Taiwanese, Arab, Japanese, Korean, Australian and Singaporean The start of the first quarter of 2001 was welcomed with a labor strike. The labor union asked for the implementation of minimum wage and guaranteed security of tenure. For the entire labor force, forty two percent of the total working force are casual. Seventeen percent are permanent and the rest are contractual. Eight months after, the National Labor Relations Commission decided in favor of the workers. Heavy fines paid by Zitcong to the government for violating labor laws. On May 26, 2001, the company achieved an ISO 4200 accreditation, the highest confirmation in the industry. ISO 4200 covers facility security and safety. Eighty eight days after, ISO 9006 on environment protection was achieved by Zitcong. Before the end of 2001, the company's second warehouse where there was stockpile of Japan motor parts got burned and as consequence two in-house workers died. The cause of the fire was faulty electrical wiring. Until now, suppliers of the motor parts have not been paid due to an unknown reason. Coincidentally, during the fire investigation, authorities discovered traces of illegal stockpiling of toxic used crude oil. No case was filed against Zitcong. Zitcong management tried to settle the issue through compromise and under the table agreement. Also on the same period, the company gave the permanent employees their 13th and 15th month pay. Zitcong was enlisted in the Taiwanese Stock exchange making its securities officially offered, listed and traded. The initial price was $ 2.50 per share. In 2002 eighteen sold vehicles suffered major accidents due to brake malfunctioning. The Chairman of the Board, who owns the majority of stocks, of the company resigned as an honorable act of mea culpa. He was succeeded by his son - a fresh college graduate from Harvard University. On July 2002, the corporation decided to get vertical by engaging in bus operations in Bangkok, Thailand. A month after, the management announced that the company is also embarking in food business. Taiwanese dishes as the main drawing charm. On March 2003, it absorbed two of its biggest competitors thus benefiting from the additional assets of $ 220 million, network of clients and experience. However, $ 250 million was added to its liabilities. To offset this, the company filed a $ 400 million loan from several banks. Only ANZ Bank and Standard Chartered didn't turn down the application for loans. However, initial screening and investigation showed that Standard Chartered is not keen on granting the loan. ZitCong Inc. is a Taiwanese owned multinational corporation. It has been operating in Taiwan for the past 17 years. Its main office is in Taipei. Its main line of business is marketing of second hand vehicles from Europe, Japan and South Korea. Such vehicles are completely overhauled. The company lives with the mission of providing the transportation needs and conveniences of the riding public. It is also engaged in the marketing of vehicle parts from abroad. It is registered in the Securities and Exchange Commission as Zitkong Inc. For the fiscal year 2001, it has registered an asset of $ 420 million, gross revenue of $215 million, net income of $ 14 million and payables amounting to $ 176 million. For the year 2015, its asset has ballooned to $ 680 million, gross revenue of $ 198 million, net income of $ 2.7 million and liability $ 178 million. Its top management is composed of mainly Taiwanese nationals. It imposes a corporate culture of professionalism and consumer first service. For the year 2002, it is on top of competition in its line of business with respect to complaints and litigation. On February 1998, Alilea Jao, an inventory clerk, was pinned by a truck hawler during her duty. The management declared it as an accident. The employee died on the spot. Her family was paid $ 125 thousand. Five months thereafter, series of accidents involving 9 of its sold vehicles happened. Eleven fatalities were registered. Investigators cited mechanical breakdown specifically break failures as the caused of the accidents. The cases are still under court proceedings. On November 2000, two Arab investors infused funds in the company. Twenty days after, some Taiwanese stockholders sold their stocks of Zitcong as a reaction to the entry of other nationals. Thereafter, Zitcong became a multicultural company of Taiwanese, Arab, Japanese, Korean, Australian and Singaporean The start of the first quarter of 2001 was welcomed with a labor strike. The labor union asked for the implementation of minimum wage and guaranteed security of tenure. For the entire labor force, forty two percent of the total working force are casual. Seventeen percent are permanent and the rest are contractual. Eight months after, the National Labor Relations Commission decided in favor of the workers. Heavy fines paid by Zitcong to the government for violating labor laws. On May 26, 2001, the company achieved an ISO 4200 accreditation, the highest confirmation in the industry. ISO 4200 covers facility security and safety. Eighty eight days after, ISO 9006 on environment protection was achieved by Zitcong. Before the end of 2001, the company's second warehouse where there was stockpile of Japan motor parts got burned and as consequence two in-house workers died. The cause of the fire was faulty electrical wiring. Until now, suppliers of the motor parts have not been paid due to an unknown reason. Coincidentally, during the fire investigation, authorities discovered traces of illegal stockpiling of toxic used crude oil. No case was filed against Zitcong. Zitcong management tried to settle the issue through compromise and under the table agreement. Also on the same period, the company gave the permanent employees their 13th and 15th month pay. Zitcong was enlisted in the Taiwanese Stock exchange making its securities officially offered, listed and traded. The initial price was $ 2.50 per share. In 2002 eighteen sold vehicles suffered major accidents due to brake malfunctioning. The Chairman of the Board, who owns the majority of stocks, of the company resigned as an honorable act of mea culpa. He was succeeded by his son - a fresh college graduate from Harvard University. On July 2002, the corporation decided to get vertical by engaging in bus operations in Bangkok, Thailand. A month after, the management announced that the company is also embarking in food business. Taiwanese dishes as the main drawing charm. On March 2003, it absorbed two of its biggest competitors thus benefiting from the additional assets of $ 220 million, network of clients and experience. However, $ 250 million was added to its liabilities. To offset this, the company filed a $ 400 million loan from several banks. Only ANZ Bank and Standard Chartered didn't turn down the application for loans. However, initial screening and investigation showed that Standard Chartered is not keen on granting the loan.