MIRA
INFORM REPORT
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Report Date : |
10.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
CHINA MAN-MADE FIBER CORP |
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Registered Office : |
10fl World Trade Bldg 50 Hsing Sheng South Rd Section 1,
Chungcheng Dist Taipei City 100 |
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Country : |
Taiwan |
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Financials (as on) : |
2005 |
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Date of Incorporation : |
11.05.1955 |
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Com. Reg. No.: |
07066907 |
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Legal Form : |
Public |
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Line of Business : |
Manufacture of man-made fibers,
chemicals and related products |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 5000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Name and address
CHINA MAN-MADE FIBER CORP
10FL WORLD TRADE BLDG 50 HSING SHENG SOUTH RD SECTION 1
CHUNGCHENG DIST TAIPEI CITY 100, TAIWAN
TEL: 886-2-23937111
FAX: 886-2-23910462
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 11, 1955
REGISTRATION NO. : 07066907
LEGAL FORM : PUBLIC
CHIEF EXECUTIVE : MR. CHAO-CHING WANG (CHAIRMAN)
STAFF STRENGTH : 580
CAPITAL : US$ 442,637,760
BUSINESS LINE : MANUFACTURER
TURNOVER : NTD 13,542,540,000 (AS OF 2005)
EQUITIES : NTD 17,874,211,000 (AS OF 2005)
PAYMENT : ABOVE AVERAGE
RECOMM. CREDIT RANGE : USD 5,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : TWD 33.07160 = US$1 AS OF 2007-4-10
*Company History*
===============
1995 - Opened a co-generation plant in Kaohsiung.
2 December, 1963 - Listed on Taiwan's Stock Exchange.
*Company
Registration*
===================
License number : 07066907
Date of issued : 11 May, 1955
Issuing authority : Ministry of Economic Affairs (MOEA)
*Licenses &
Permits*
=================
(1)
License number : 99661662
Date issued : 31 December, 1990
Issuing authority : Industrial Development Bureau, MOEA
Type of license : Factory (I) License
(2)
License number : 99632954
Date issued : 25 September, 1969
Issuing authority : Industrial Development Bureau, MOEA
Type of license : Factory (II) License
*Capital Details*
=============
Share value : NTD 10.00/-each
Authorized capital : NTD 14,700,000,000.00
Capital increase : NTD 14,641,000,000.00
Initial paid-up capital : NTD 40,000,000.00
Paid-up capital increase : NTD 14,641,000,000.00
Year of increase : 2007
*Office &
Facilities*
===============
Size : 1,126.04 sq ft (Approx)
Location : Central Business District
Property status : Owned by CHINA MAN-MADE FIBER CORP.
Type of building : Commercial Building
Other Contact Details
-----------------------------
Fax no. : 2-23933522
E-mail : fin@cmfc.com.tw
*Factories, Size
& Location*
======================
Type of building : Industrial building
Building size : 1,689,984 sq ft (Approx)
Land size : 102,700 sq ft (Approx)
Location : Industrial district
Other Contact Details
-----------------------------
Tel no. : 7-39110462
Fax no. : 7-39110462
*Corporate &
Organization Structure*
=============================
A large company operated and managed by an experienced team of professionals.
*Industry Ranking*
================
(1)
Considered as one of Taiwan's leading Ethylene Glycol producers.
(2)
Generally regarded as one of the Top 1,000 Companies in Manufacturing Industry of Taiwan.
*Sales Ranking*
=============
Generally regarded as one of the top 500 manufacturing companies in Taiwan in terms of sales.
*Reputation*
==========
Reference checking for the purpose of establishing the firm's reputation within the respective industry failed to reveal any negative information.
*Auditor *
========
KWANG-I & CO, CPA's
*Registrar*
=========
CHINA MAN-MADE FIBERS CORP - Stock Dept
Stock Market Code : 1718
Web site: www.cmfc.com.tw The design is professional and the content is well organized. At present it is in both Chinese and English versions.
E-mail: sal@cmfc.com.tw
For the past two years there is no record of litigation.
*Major Shareholders*
=================
Shareholders' Name No. of Shares
--------------------------- ------------------
PAN ASIA CHEMICAL CORP 188,175,171
SHEEN REN KNITTING FACTORY CO LTD 91,966,546
Management: Mr. Wen-lung Yen, Manager
Ms. Olivia Ching-ying Su, Manager
Mr. Chien-tsun Chang, Manager
Name Nationality Job Description Dept. / Division
Mr. Wen-lung Yen Taiwanese Manager Construction
Ms. Olivia Ching-ying Su Taiwanese Manager Finance
Mr. Chien-tsun Chang Taiwanese Manager I.T.
Mr. Chin-hu Hsieh Taiwanese Manager Production
Mr. Wan-chun Hsu Taiwanese Manager Production
Mr. Yung-ta Liu Taiwanese Manager Sales
Mr. Kuo-chin Chen Taiwanese Manager Technical
Mr. Tom Hung-yang Wu Taiwanese Deputy Manager
Ms. Chia-yu Chen Taiwanese Finance Executive
Mr. Kuei-hsien Wang Taiwanese General Manager
*Key Personnel*
=============
(1)
Mr. Chao-ching Wang
Date of birth : 10 December, 1946
Work experience : More than 20 years
Resident status : Taiwan
Responsibilities : Handles the daily operation of the firm including all financials and legal matter
Other positions : Currently employed in the following companies:
- TA YI DEVELOPMENT CO LTD
- FENG-YUAN ENGINEERING CORP
(2)
Ms. Olivia Ching-ying Su
Email : olivia-su@cmfc.com.tw
(3)
Mr. Tom Hung-yang Wu
Email : tom-wu@cmfc.com.tw
*Main Products &
Services*
======================
Specializes in the manufacture of man-made fibers, chemicals and related products.
Products: Parchment
Polymers for textile
Centrifuges
Chemical wood pulps
Coals
*Brand*
=======
CMFC
*Payment Terms*
==============
Sales
------
Local : 30-60 days credit
Export : Letter of Credit (L/C)
Telegraphic Transfer (T/T)
Purchases
--------------
Local : 30-60 days credit
Import : Letter of Credit (L/C)
Telegraphic Transfer (T/T)
*Detailed Products
Specification*
==========================
Product details include:
(1) Cellophane
Principal uses: - Cellophane adhesive tape
- Cigarettes, and Cigars direct wraps
(2) Ethylene Glycol:
Principal uses: - Polyesters, antifreeze ice and snow removal, high temperature coolant explosives
- Plastics, solvents, brake oil
- Conditioning agent, air treatment
- Surfactants, Glycol ethers
(3) Viscose Rayon Filament Yarn
Principal uses: - Weaving, knitting
(4) Rayon Staple Fiber
Principal uses: - Rayon fabrics
*Assets*
=======
Type : Machinery & Equipment
Amount : NTD 4 billion
*Production Capacity*
==================
Item Maximum capacity/Tons Current capacity/Tons
------- --------------------------------- -----------------------------
Ethylene Glycol 270,000 290,162
Ethylene Oxide 22,500 22,708
Nonyl Phenol 22,500 21,127
*Associations*
============
Member of :
- TAIWAN UNION CPA'S
*Competitors*
===========
The following locally based companies supply similar range of products:
- HUNG CHOU CHEMICAL INDUSTRY CO LTD
- TONG-HWA SYNTHETIC FIBER CO LTD
- CHUNG FU CHEN YEH ENTERPRISE CORP
- TAINAN SPINNING CO LTD
- KING TEXTILE CO LTD
- KAUO HENG PRECISION MACHINERY INDUSTRIAL CO LTD
*Domestic Raw
Material Suppliers*
===========================
Major local suppliers include :
- NAN CHUNG PETROCHEMICAL CORP
- CHINA AMERICAN PETROCHEMICAL CO LTD (CAPCO LTD)
- CHINESE PETROLEUM CORP
*Domestic Customers*
==================
Major local customers include:
- NAN YANG PLASTIC PRODUCTS CO LTD
- LEALEA ENTERPRISE CO LTD
- CHUNG SHING TEXTILE CO LTD
*Local Distribution
Network*
=======================
85% of the annual turnover is attributed to local sales. Breakdown as follows:
Industry %
------------ -----
Textile 90
Plastic 10
Note:
Sales are achieved through the following distribution channels:
1. 5% of sales through agents
2. 95% of sales directly to end-users.
Breakdown of local sales per product as follows:
Product %
----------- ---
Ethylene Oxide 30 (Sold to chemical factories)
Rayon 100 (Sold to local factories)
Polyester Silk 7
Nonyl Phenol 50
Ethylene Glycol 20
*Export
Markets*
==============
15% of the annual turnover is attributed for export.
Breakdown of export per product as follows:
Product %
----------- ---
Nonyl Phenol 65
Polyester Silk 2
Ethylene Glycol -
*Overseas Suppliers*
=================
- PETROLEUM CORP
*Overseas Customers*
=================
- HISTOL LTD
*International Trade
Ranking*
=======================
The firm has been ranked among Taiwan's Top Importers/Exporters based on the standard measured by the
Board of Foreign Trade (BOFT) :
Details of ranked are as follows :
Year Ranked
------ ----------
1997 0245
2005 0392
*LOCAL BRANCHES &
MANAGEMENT*
=================================
Branch : CHINA MAN-MADE FIBER CORP
Branch Address : 236, Lane 2, Shuang Shih St Toufen Chen, Miaoli Hsien 351
Branch Tel : [+886] 3-7663666
Branch Fax : [+886] 3-7591172
Branch Employees : 80
*Subsidiaries, Joint-ventures & Affiliates*
================================
Maintains investments in NAN CHUNG PETROCHEMICAL CO LTD.
*(Subsidiaries, Joint-ventures & Affiliates)
================================
Company Name : FORMOSA IMPERIAL WINESELLER CORP
Address : 11Fl World Trade Bldg 50 Hsing Sheng South Rd Section 1 Chungcheng Dist Taipei City 100 Taiwan
Country : Taiwan
Relationship : Affiliate
Legal Form : Private Limited Company
Company Type : Importer
Industry : Beverages
Company Name : PAN ASIA CHEMICAL CORP
Address : 11Fl World Trade Bldg 50 Hsing Sheng South Rd Section 1 Chungcheng Dist Taipei City 100 Taiwan
Country : Taiwan
Relationship : Affiliate
Legal Form : Public Listed Company
Company Type : Manufacturer
Industry : Chemicals
Company Name : RELIANCE SECURITIES CO LTD
Country : Taiwan
Relationship : Subsidiary
Legal Form : Private Limited Company
Company Type : Service
Industry : Financial Services - General
Company Name : RELIANCE SECURITIES INVESTMENT TRUST CO LTD
Address : 4Fl, 50, Hsin Shen South Rd, Section 1 Chungcheng Dist Taipei City 100 Taiwan
Country : Taiwan
Relationship : Subsidiary
Legal Form : Private Limited Company
Company Type : Service
Industry : Financial Services - General
Company Name : SHEEN REN KNITTING FACTORY CO LTD
Address : 3Fl World Trade Bldg 50 Hsing Sheng South Rd Section 1 Chungcheng Dist Taipei City 100 Taiwan
Country : Taiwan
Relationship : Affiliate
Legal Form : Private Limited Company
Company Type : Manufacturer
Industry : Textiles & Raw Material
Company Name : TA YI DEVELOPMENT CO LTD
Address : 2 Alley 3 Lane 19 Kuang Fu Rd Section 1 Sanchung City 241 Taipei Hsien Taiwan
Country : Taiwan
Relationship : Affiliate
Legal Form : Private Limited Company
Company Type : Manufacturer
Industry : Garments & Accessories
PAYMENT RATING :2 OBTAINED SCORES : 80
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Rating Key |
Implication |
Implications |
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1 |
Scores 85–100 |
Excellent |
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2 |
Scores 75 – 84 |
Above Average |
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3 |
Scores 50 – 74 |
Average |
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4 |
Scores 35 – 49 |
Fair |
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5 |
Scores 15 – 34 |
Below Average |
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6 |
Scores 01 – 14 |
Poor |
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NR |
No Data |
No Data |
The rating
indicates the payment pattern of SC based upon our Payment Database, comments
from suppliers of SC, information from banks (if available), as well as
industrial sources.
Dealings on
open terms may be possible for FAIRLY LARGE amounts depending on individual
judgement experience.
*Bank Details*
============
(1)
Bank : FIRST COMMERCIAL BANK
Branch : Nantzu Dist Kaohsiung City
Type of account : Checking
Account no. : 70730004677
Swift code : FCBKTWTP
(2)
Bank : CHANG HWA COMMERCIAL BANK
Account no. : 113160025550
Swift code : CCBCTWTP
Balance Sheet
Currency : NTD
Denomination : In Thousands
2001 2002 2003 2004 2005
------ ------ ------ ------ ------
Current Assets 5,208,073 5,361,894 6,783,425 10,179,663 9,876,445
Funds & long-term investments 4,768,120 5,385,433 4,161,233 4,834,655 6,676,275
Property 10,370,648 9,871,293 9,266,650 8,461,831 6,186,593
Other Assets 1,176,267 676,066 689,700 3,039,095 3,627,157
Total Assets 21,602,186 21,328,608 20,937,322 26,543,028 26,385,733
Current Liabilities (Before) 6,574,289 6,120,444 6,519,131 4,566,931 4,661,827
(After) 6,574,289 6,120,444 6,519,131 5,281,429 -
Long-term Liabilities 6,937,087 6,642,358 3,758,103 2,849,227 3,714,892
Other Liabilities 38,896 120,608 128,740 157,869 134,803
Total Liabilities (Before) 13,550,272 12,883,410 10,405,974 7,574,027 8,511,522
(After) 13,550,272 12,883,410 10,405,974 8,288,525 -
Common stock 9,123,038 9,123,038 9,123,038 12,100,000 14,641,000
Capital Reserve 1,168,044 1,344,635 2,625,961 3,954,373 4,245,449
Retained Earnings (Before) 75,866 (549,564) 2,042,102 3,478,162 900,333
(After) 75,866 (549,564) 211,212 888,164 -
Total Shareholder's Equity (Before) 8,051,914 8,445,198 10,531,348 18,969,001 17,874,211
(After) 8,051,914 8,445,198 10,531,348 18,254,503 -
Income Statement
Currency : NTD
Denomination : In Thousands
2001 2002 2003 2004 2005
------ ------ ------ ------ ------
Operating Revenue 8,643,154 8,476,752 11,246,158 14,244,158 13,542,540
Gross Profit 837,605 780,103 2,040,208 3,248,030 1,303,197
Operating Incom 416,818 345,515 1,507,423 2,692,490 684,053
Non-operating Inc 572,540 174,317 1,290,101 1,965,273 1,246,993
Non-operating Exp 989,274 1,156,630 963,929 560,919 1,870,824
Net Income 8,252 (617,178) 2,042,102 3,266,950 12,169
Earnings (losses) per share (After) 0.01 (0.72) 2.30 2.48 0.01
*Financial Ratios*
==============
2001 2002 2003 2004 2005
------ ------ ------ ------ ------
Ratio of liabilities to assets (%) 62.74 60.40 47.70 28.53 32.26
Ratio of long-term capital to
fixed assets (%) 150.32 152.84 130.85 232.27 329.44
Current ratio (%) 79.22 78.37 104.05 201.03 211.86
Quick ratio (%) 47.39 49.19 79.82 144.30 123.50
Interest coverage 1.00 (0.19) 6.88 39.40 1.67
Turnover of receivable (times) 5.37 5.17 6.84 9.43 7.41
Average collection period of receivable - - - - -
Turnover of inventories (times) 5.59 7.16 10.23 10.85 11.25
Turnover of expense (times) 6.01 6.14 8.67 8.05 10.00
Average days of sales 65 51 36 34 39
Turnover of fixed assets (times) 0.83 0.86 1.21 1.68 2.19
Turnover of total assets (times) 0.40 0.40 0.54 0.54 0.51
Return on total assets (%) 0.02 (1.01) 10.80 14.10 0.30
Return on shareholder's equity (%) 0.11 (7.48) 21.52 22.15 0.07
Operating income 4.57 3.79 16.52 22.25 4.67
Net Income before tax 0.00 (6.98) 20.10 31.43 0.41
Profit margin (%) 0.10 (7.28) 18.16 22.94 0.09
Retroactive 0.01 (0.72) 2.30 2.48 0.01
Cash flows ratio (%) (5.13) 13.21 31.37 52.73 44.82
Cash flows adequacy (%) (17.37) (8.69) 77.31 2.66 7.19
Cash reinvestment ratio (%) (1.65) 3.83 9.60 8.29 6.99
Degree of operating leverage 2.65 5.24 1.99 1.33 2.55
Degree of financial leverage (2.03) (1.83) 1.27 1.04 1.15
*Financial Summary
(Currency: U.S. $'s)
===============================
Year Sales Assets Net Income
1998 $189,392,000.00 $818,343,259.26 -$38,873,518.52
1999 $149,421,500.00 $761,316,437.50 -$9,541,031.25
2000 $197,724,852.26 $681,728,024.88 -$33,387,993.78
2001 $250,817,005.22 $626,877,132.91 $239,466.05
2002 $243,654,843.35 $613,067,203.22 -$17,740,097.73
2003 $324,283,679.35 $603,729,008.07 $58,884,140.72
2004 $428,395,729.32 $798,286,556.39 $98,254,135.34
2005 $427,884,360.19 $833,672,448.66 $384,486.57
*Int´l Trade Activity
(Currency: U.S. $'s)
==============================
Year Imports Exports Total
1997 $46,800,000.00 $31,900,000.00 $78,700,000.00
1998 $51,000,000.00 $35,900,000.00 $86,900,000.00
1999 n/a $147,927,285.00 $147,927,285.00
2000 n/a $195,747,603.74 $195,747,603.74
2001 $1,813,697.04 $2,150,899.59 $3,964,596.63
2002 $2,101,178.50 $2,563,955.16 $4,665,133.66
2003 $27,419,837.00 $51,669,479.9 $79,089,316.99
2004 $39,625,230.02 $58,234,628.00 $97,859,858.02
2005 $31,626,103.00 $65,906,304.99 $97,532,407.99
SC is considered an old-established business in medium size. It is considered a credit line up to USD 5,000,000 appears to be within SC’s capacities.
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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 and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)