MIRA
INFORM REPORT
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Report Date : |
29.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
SOLAR FINE CHEMICAL CO. LTD |
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Registered Office : |
19FL Formosa Bldg 161-1 Sung Teh Rd Hsin-I Dist Taipei City 110 |
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Country : |
Taiwan |
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Financials (as on) : |
2006 |
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Date of Incorporation : |
30.03.1984 |
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Com. Reg. No.: |
09458767 |
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Legal Form : |
Private |
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Line of Business : |
Importing of a wide range of acids, potassium carbonate and related to
ingredients for both in-house use, and
sales to third parties |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name and address
SOLAR FINE
CHEMICAL CO LTD
19FL FORMOSA BLDG 161-1 SUNG TEH RD HSIN-I DIST TAIPEI CITY 110, TAIWAN
TEL: 886-2-23468022
FAX: 886- 2-27592760
EXECUTIVE SUMMARY
INCORPORATION DATE :
MARCH 30, 1984
REGISTRATION NO. :
09458767
LEGAL FORM :
PRIVATE
CHIEF EXECUTIVE :
MR. CHUNG-JUNG HSUEH (CHAIRMAN)
STAFF STRENGTH :
98
CAPITAL :
US$ 16,608,785
BUSINESS LINE :
MANUFACTURER
TURNOVER :
NTD 518,448,000 (AS OF 2006)
EQUITIES :
NTD 715,393,000 (AS OF 2006)
PAYMENT :
ABOVE AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 1,000,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
TWD 32.32250 = US$ 1
Adopted
abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
M - million
TWD –Taiwan New Dollars
*Company History*
===============
1984 - Established
factory in Taoyuan Industrial Park.
- Started production of direct dyes and reactive dyes.
1986 -
Started production of bi-functional reactive dyes and printing reactive dyes
- Relocated to Hsin Yi Rd
- Increased capacity to 200 metric tons.
1990 -
Established second factory in Taoyuan Industrial Park.
- Invested on FAR STAR CO.
1991 -
Started production of leather, disperse and acid dyes.
1994 -
Transferred to present location.
1996 -
Applied for being quoted on the Stock Market.
1997 -
Established the 3rd Production Plant.
1999 -
Applied for ETAD Membership.
- Applied for ISO 14001 certificate
*Capital Details*
============
Initial registered capital
: NTD 12,000,000.00
Capital increases as follows :
Date
Increase (NTD)
-------
-------------------------
August 1984
22,500,000.00
October 1988 44,500,000.00
June 1990
90,000,000.00
February 1991
160,000,000.00
1992
196,000,000.00
November 1993
306,250,000.00
September 1994
395,828,600.00
September 1995
435,411,460.00
September 1996
457,182,030.00
September 1997
480,041,130.00
September 1998
504,043,180.00
September 1999
529,245,340.00
September 2000 550,415,150.00
*Licenses & Permits*
=================
(1)
License number : 9962896400
Date issued : 24 Mar, 1984
Issuing authority : Industrial Development Bureau, MOEA
(2)
License number : 9962896300
Date issued :
21 Mar, 1990
Issuing authority : Industrial Development Bureau, MOEA
*Office & Facilities*
================
Size : 155 sq. meter (Approx)
Location : Central Business District
Property status :
Owned by SOLAR FINE CHEMICAL CO LTD
Other Contact Details
-----------------------------
Tel no. : 2-27592659
E-mail : -
solar614@solarine.com.tw
Previous Contact Details
---------------------------------
(1)
Address :
6Fl, 1, Lane 88, An Ho Rd 106 Taipei City, Taiwan
(2)
Address : 5, Alley 20, Lane 265, Hsin Yi Rd
Section 4, 106 Taipei City, Taiwan
Tel : 2-27029379
Fax : 2-27086650
*Factories, Size & Locations*
======================
The firm maintains two manufacturing premises as listed below
(1)
Size : 2,582 square meter (Approx)
Location : Taoyuan Hsien
Type of building : Industrial Building
Property status : Owned by SOLAR FINE CHEMICAL CO LTD
(2)
Size : 691 square meter (Approx)
Location : Taoyuan Hsien
Type of building : Industrial Building
Property status : Owned by SOLAR FINE CHEMICAL CO LTD
*Corporate & Organization Structure*
=============================
A large - sized company operated and managed by an experienced team of
professionals.
Organizational Chart
-------------------------
Board of
Shareholders
|------------------
Supervisor
Directors
|
Chairman
|
General Manager
|------------------ Auditing Section
|------------------------------------------------------------------------------------------------|
| | | |
Product Business Division
Sales Dept
Financial Dept
General Affair Dept
| | | |
|-----------------------| |----------------| |---------------| |-------------------------------------|
| |
| | | | | |
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R&D Q/C Factory Interior
Exporting Accounting Cashier Purchase Human Stock
Computer
Dept Dept Dept Section
Section Section Section Section Resource Service Center
Section Section
Section
*Industry Ranking*
===============
(1)
Considered as one of Taiwan's largest manufacturing corporations.
Details of rank as follows:
Year Rank
------- -------
1992 678
(2)
Generally regarded as one of the Top 5000 Companies in Manufacturing
Industry of Taiwan.
Details of rank are as follows:
Year Rank
------- ---------
2004 3253
2005 3372
2006 3256
*Accountants*
============
- CLOCK & CO
- MOORE STEPHENS TAIWAN
*Reputation*
===========
Reference checking for the purpose of establishing the firm's reputation
within the respective industry failed to reveal any negative information.
Web site: www.solarfine.com.tw
The design is professional and the content is well organized. At present it is
in English version.
E-mail: solar@tptsl.seed.net.tw
For the past two years there is no record of litigation.
*Major Shareholders*
================
Shareholders' Name Corporate No. of Shares
--------------------------
------------------------------------------------ ------------------
Mr. Yu-Fung Chiu - 5,960,573
Mr. Kuo-lian Kuo
HOLMSGREEN HOLDINGS CO LTD
3,476,348
Mr. Chung-an Hsueh - 2,701,849
Mr. Shih-hsiung Wang - 2,318,002
Mr. Ming-yen Hsieh - 2,061,563
Mr. A-sung Huang -
1,906,442
Mr. Chung-jung Hsueh -
1,880,418
Ms. Hsiu-ying Hsueh - 826,059
Mr. Chung-chang Hsueh - 805,506
Mr. Hsin-yuan Hsieh - 788,905
Management: Mr. Chung-cheng
Hsueh, Manager
Ms. Su-jui Chen, Manager
Mr. A-sung Huang, Director
Name Nationality
Job Description Dept. / Division
Mr. Chung-cheng Hsueh Taiwanese
Manager Factory
Ms. Su-jui Chen Taiwanese
Manager Quality Control
Mr. A-sung Huang Taiwanese
Director Sales
Ms. Hsiu-ying Hsueh Taiwanese
Department Head -
Mr. Chung-an Hsueh Taiwanese
General Manager -
Mr. Chung-chang Hsueh Taiwanese
Manager -
Mr. Chung-chieh Hsueh Taiwanese Manager -
Mr. Ming-yen Hsieh Taiwanese
Vice General Manager -
*Key Personnel*
============
Mr. Chung-jung Hsueh
Founder : Co-founder
Work experience : More than
22 years
Responsibilities : Handles
the daily operation of the firm including all financials, sales and legal
matters.
Resident status : Taiwan
Other position :
Chairman of ADJ SHEUAN CO LTD
*Main Products & Services*
=====================
Specializes in the following areas of work:
1. Importing of a wide range of acids, potassium carbonate and related
to ingredients for both in-house use, and
sales to third parties.
2. Manufacturing of various types of dyestuffs.
3. Selling to both domestic and international markets of products
produced by the firm.
Products: Acid dyes
Acids
Bifunctional
reactive dyes
Brightening
agents
Chemical
dyestuff
*Brand*
======
SFC
SOLACION HE
SOLACION P
SOLACRON DISPERSE
SOLAR ACID
SOLAR LEATHER
SOLAR WHITE
SOLARUS
SOLAZOL
SOLAZOL SP
*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)
*Quality Certification*
=================
Type of certification : ISO 9002
Issuing authority : TUV
Year of certification :
1997
*Association*
==========
Member of :
- American Association of Textile Chemists and Colorists (AATCC), since
1998
*Competitors*
===========
The following locally based companies supply identical range of products
:
- EVERLIGHT CHEMICAL INDUSTRIAL CORP
- ALLIED INDUSTRIAL CORP LTD
- EVERTEX DYEING & FINISHING CO LTD
- EXON SCIENCE INC
- CHEMTEX CO LTD
- T N C INDUSTRIAL CO LTD
- ORIENTAL GIANT DYES & CHEMICAL INDUSTRIAL CORP
- A & Z CHEMICAL INDUSTRIAL CORP
- CHROMA CHEMICAL CORP
- TAIWAN MODERN DYESTUFFS & PIGMENTS CO LTD
- WILL GOOD CHEMICAL CORP
- DYEXCEL CHEMICAL INDUSTRIAL CORP
*Production Capacity*
==================
Item : Dyestuffs
Current capacity : 7,500
tons/year
Item Output
value Current Capacity(MT/year)
----------
------------------ ------------------------------------
Acid dyes 9,000,000 91
Leather dyes 43,000,000 308
Reactive dyes 230,000,000 1,971
Super direct dyes 233,000,000 1,956
*Detailed Product Specifications*
==========================
Product Brand Names Applications
----------- ------------------
------------------
Reactive dyes
Cold Type SOLAZOL SP Dyeing of Cotton, Rayon
& SOLAZOL
Hot Type SOLACION
HE Dyeing of
Cotton, Rayon
Printing SOLACION P Dyeing of Cotton, Rayon
Super Direct Dyes
SOLARUS Dyeing of Cotton, Rayon and
Paper
Leather Dyes SOLAR LEATHER Dyeing of Leather
Acid Dyes SOLAR ACID Dyeing of
Nylon, Wool and Silk
Disperse Dyes
SOLACRON DISPERSE
Dyeing of Polyester
Whitening Agents SOLAR WHITE Whitening
Cellulose & Polyester Fibers
*Domestic Suppliers*
================
Major local suppliers include:
- FAR STAR SUPER CHEMICAL CO LTD
- TAIWAN SALT INDUSTRIAL CORP
*Domestic Customers*
================
Major local customers include:
- ORIENTAL GIANT DYES & CHEMICAL INDUSTRIAL CORP
- TAIWAN MODERN DYESTUFFS & PIGMENTS CO LTD
- I-HWA INDUSTRIAL CO LTD
- KO HO CHEMICAL CO LTD
- T&T INDUSTRIES CORP.
*Local Distribution Network*
=====================
Approximately 60% annual turnover is attributed to local sales.
*Export Markets*
==============
Approximately 40% annual turnover is attributed to export.
*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 rank are as follows:
Year Rank
------- --------
2001 1776
2002 1817
2003 2340
*(Subsidiaries, Joint-ventures & Affiliates)
===============================
Company Name : FAR STAR
SUPER CHEMICAL CO LTD
Address : 19Fl Formosa Bldg
159-161 Sung Teh Rd Hsin-i Dist Taipei City 110 Taiwan
Country : Taiwan
Relationship : Affiliate
Legal Form : Private company
with limited liability
Company Type : Manufacturer
Industry : Chemicals
Company Name : SHANGYU SOLAR FINE CHEM CO LTD
Address : Zhejiang Hangzhou Gulf Fine Chemical Zone
Shangyu 312369 Zhejiang China
Country : China
Relationship :
Subsidiary
Legal Form : Private company with limited liability
Company Type : Manufacturer
Industry : Chemicals
PAYMENT
RATING : 2 OBTAINED SCORES :
82
|
Rating Key |
Implication |
Implications |
|
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*
===========
Bank Name : FIRST COMMERCIAL
BANK CO LTD
Branch : Chungcheng Dist, Taipei City
Branch Address : 10Fl, 30 Chungking South Rd Section 1 Chungcheng Dist
Taipei City 100 (Head Office)
SWIFT Code : FCBKTWTP
Bank Name : MEGA INT'L COMMERCIAL BANK CO LTD
Branch : Chungcheng Dist, Taipei City
Branch Address : 123 Jhongsiao E Rd Section 2 Chungcheng Dist Taipei
City 100 (Head Office)
SWIFT Code : ICBCTWTP
Balance Sheet
Currency : NTD
Denomination : In Thousand
2002 2003 2004
2005 2006
-------------
------------- ------------- ------------- -------------
Current Assets 560,601 629,478 632,086
501,627 557,292
Property 293,662 276,085 266,456
321,032 318,200
Other Assets 4,736 2,833 5,016
5,144 1,436
Total Assets 878,600 936,496 929,383 833,124 883,090
Current Liabilities (Before) 154,296 171,089
190,060 111,113 138,099
(After)
154,296 226,131 217,581 122,121 -
Other Liabilities 18,050 27,794 27,666
25,210 29,598
Total Liabilities (Before) 172,346 198,883
217,726 136,323 167,697
(After)
172,346 253,925 245,247 147,331
-
Common stock 550,415 550,415 550,415 550,415 550,415
Capital Reserve 670 670 670
670 670
Retained Earnings (Before) 155,187 189,019 161,561 145,888
164,334
(After)
155,187 133,977 134,040 134,880 -
Income Statement
Currency : NTD
Denomination : In Thousand
2002 2003 2004 2005
2006
-------------
------------- ------------- ------------- -------------
Operating revenue 578,048 489,431
461,710 464,335 518,448
Gross Profit 73,544 88,359 92,229 78,702 84,529
Operating Income 10,349 27,683 29,180
9,458 6,820
Non-operating income 914 411 64 93 394
Non-operating expense 3,761 490
1,979 2,404 2,380
Net Income (17,402) 33,832 27,584
11,848 29,454
Earnings (losses) per share (After) (0.32)
0.61 0.50 0.22 0.54
*Financial Ratios*
==============
2002 2003 2004
2005 2006
-------------
-------------
------------- ------------- -------------
Ratio of liabilities to Assets % 19.62
21.24 23.43 16.36 18.99
Ratio of long-term capital to
fixed Assets% 240.50 267.17
267.08 217.05 224.82
Current ratio% 363.33 367.92 332.57
451.46 403.55
Quick ratio% 223.07 239.75 222.63
272.70 246.05
Interest coverage - 89.28 18.51
5.30 14.16
Turnover of receivable (times) 3.18
2.95 2.96 2.85 3.07
Average collection period
of receivable 114.93 123.75 123.45
127.92 118.85
Turnover of inventories (times) 1.94 2.06
1.89 1.95 2.18
Average days of sales 187.00 177.00
193.00 187.00 168.00
Turnover of fixed assets (times) 1.97 1.77
1.73 1.45 1.63
Turnover of total assets (times) 0.66 0.52
0.50 0.56 0.59
Return on total assets% (1.59) 3.77
3.12 1.55 3.65
Return on shareholder's Equity% (2.43)
4.69 3.81 1.68
4.17
Operating Income 1.88 5.03 5.42
1.72 1.24
Net Income before tax (4.42) 7.86 6.29 1.88 5.69
Profit margin% (3.01) 6.91 5.97
2.55 5.68
Retroactive (0.32) 0.61 0.50
0.22 0.54
Cash flows ratio% 68.80 55.50 20.39
44.87 3.62
Cash flows adequacy%
32.73 35.12 29.62
44.84 63.90
Cash reinvestment ratio% 10.08 8.57
(1.49) 2.03 0.53
Degree of operating leverage (1.57) 1.02
1.07 1.30 1.08
Degree of financial leverage 31.58 2.05
2.66 7.62 2.70
*Financial Summary (Currency: U.S. $'s)
=============================
Year Sales Assets Net Income
1998 $32,031,100.00 $38,035,766.67 $936,600.00
1999 $23,732,687.50 $33,144,375.00 $648,937.50
2000 $20,751,570.76 $30,704,976.67 -$211,757.39
2001 $16,433,981.43 $27,808,270.46 -$333,981.43
2002 $16,615,349.24 $25,254,383.44 -$500,201.21
2003 $14,112,773.93 $27,003,921.57 $975,547.87
2004 $13,886,015.04 $27,951,368.42 $829,593.98
2005 $14,670,932.07 $26,323,033.18 $374,344.39
2006 $15,672,551.39 $26,695,586.46 $890,386.94
*Int´l Trade Activity (Currency: U.S. $'s)
=============================
Year Imports Exports Total
2001 $7,048,974.99 $6,327,387.99 $13,376,362.98
2002 $6,686,540.99 $6,672,887.99 $13,359,428.98
2003 $5,699,157.99 $5,664,056.00 $11,363,213.99
2004 $5,601,578.98 $5,412,017.98 $11,013,596.96
2005 $6,541,246.98 $5,864,101.99 $12,405,348.97
2006 $7,541,357.98 $6,124,784.98 $13,666,142.96
Over the past 23 years, SC has made a stable growth with fairly good
profit. It is considered a credit line up to USD 1,000,000 appears to be within
SC’s capacities.
Attached: trade references
SIC PRODUCT CLASSIFICATION & ACTIVITY
Activity Code Product/Service Description
Manufacturing 2800 Chemicals
and Allied Products
Manufacturing 2819 Industrial
inorganic chemicals,
Manufacturing 2869 Industrial
organic chemicals,
Manufacturing 2899 Chemical
preparations,
Trading 2800 Chemicals
and Allied Products
Trading 2899 Chemical
preparations,
HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY
Activity Code Product/Service Description
Exporting 2914691000 Quinone photographic chemicals
Exporting 3204121000 Acid dyes, whether or not premetalized, and preparations based
thereon, acid
black
31, etc
Exporting 3809910000 Finishing agents and dye carriers containing 5 percent or more
by weight of 1 or
more
aromatic or modified aromatic substances
Importing 2811 Inorganic
acids & inorganic oxy nonmet comp
Importing 2811195050 Other inorganic acids
Importing 2904900800 Monochloromononitrobenzenes
Importing 2907210000 Resorcinol and its salts
Importing 2908200000 Derivatives of phenols or phenol-alchls containing only sulfo
groups, their salts
and
esters
Importing 2912120000 Ethanal (acetaldehyde)
Importing 2914709000 Other halogenated, sulfonated, nitrated or nitrosated
derivatives of non-aromatic
ketones
and quinones whether or not with other oxygen function
DETAILED PRODUCT
CLASSIFICATION & ACTIVITY
Activity Product/Service Description
Manufacturer Chemical
products
Manufacturer Chemicals
Manufacturer Acid dyes
Manufacturer Direct dyes
Manufacturer Disperse dyes
Manufacturer Leather dyes
Manufacturer Reactive dyes
Manufacturer Chemical
dyestuff
Manufacturer Textile dyes
Manufacturer Brightening
agents
INTERNATIONAL
TRADE : ACTIVITY & MARKETS
Exporting to Africa
Exporting to Argentina
Exporting to Asia
Exporting to Australia
Exporting to Bangladesh
Exporting to Belgium
Exporting to Brazil
Exporting to Canada
Exporting to Colombia
Exporting to Ecuador
Exporting to Egypt
Exporting to Europe
Exporting to Germany
Exporting to Greece
Exporting to Hong Kong
Exporting to India
Exporting to Indonesia
Exporting to Iran
Exporting to Italy
Exporting to Japan
Exporting to Macau
Exporting to Malaysia
Exporting to Mauritius
Exporting to Middle East
Exporting to Mongolia
Exporting to Morocco
Exporting to Netherlands
Exporting to Pakistan
Exporting to Panama
Exporting to Peru
Exporting to Philippines
Exporting to Singapore
Exporting to South Korea
Exporting to Spain
Exporting to Sri Lanka
Exporting to Syria
Exporting to Thailand
Exporting to Turkey
Exporting to USA
Exporting to United Kingdom
Exporting to Zimbabwe
Importing from Asia
Importing from Belgium
Importing from Canada
Importing from China
Importing from Europe
Importing from India
Importing from Italy
Importing from Japan
Importing from Thailand
Importing from USA
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 |
|
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. |
Small |
|
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 |
|
<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%)