|
Report Date : |
01.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
LCY CHEMICAL CORP. |
|
|
|
|
Registered Office : |
4F., No.83, Sec.4, Bade Rd., Songshan Dist., |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2012 |
|
|
|
|
Date of Incorporation : |
06.11.1965 |
|
|
|
|
Com. Reg. No.: |
39054405 |
|
|
|
|
Legal Form : |
Joint Stock Company |
|
|
|
|
Line of Business : |
Manufacture and sales of Petrochemical raw materials |
|
|
|
|
No. of Employees : |
About 1,738 employees |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
Status : |
Good |
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Taiwan |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. In keeping with this trend, some large, state-owned banks and industrial firms have been privatized. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. In 2009, Taiwan's GDP contracted 1.9%, due primarily to a 20% year-on-year decline in exports. In 2010 GDP grew 10.9%, as exports returned to the level of previous years, and in 2011, grew 5.2%. However, 2012 growth will likely be less, according to most forecasters, because of softening global demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, but so far Taiwan has been excluded from this greater economic integration largely because of its diplomatic status with the exception of the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010. The MA administration has said that the ECFA will serve as a stepping stone toward trade pacts with other regional partners, and negotiations on a deal with Singapore began this year. Follow-on components of ECFA, including deals on trade in goods, services, and investment, have yet to be completed. 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 accounting for 10.9% of the island's total population as of 2011. The island runs a large trade surplus, and its foreign reserves are the world's fourth largest, behind China, Japan, and Russia. Since 2005 China has overtaken 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. Three financial memorandums of understanding, covering banking, securities, and insurance, took effect in mid-January 2010, opening the island to greater investments from the mainland's financial firms and institutional investors, and providing new opportunities for Taiwan financial firms to operate in China. Closer economic links with the mainland bring greater opportunities for the Taiwan economy, but also poses new challenges as the island becomes more economically dependent on China while political differences remain unresolved.
Source : CIA
|
Company Name: |
|
|
Supplied Name: |
|
|
Trading Address: |
|
|
Supplied Address: |
|
|
Telephone Number: |
|
|
Fax Number: |
|
|
E-mail: |
Notes: Subject’s exact name and address are as above and subject did not
introduce the supplied address.
|
Credit Opinion: |
|
Registered Name: |
LCY Chemical Corp. |
|
Registered Address: |
|
|
Date of Foundation: |
|
|
Registration Number: |
39054405 |
|
Registry: |
Department of Commerce, Ministry of Economic Affairs, R.O.C. |
|
Registered Capital: |
NTD 10,000,000,000 (USD 334,000,000) (As of 2012.06, 1 NTD = 0.0334 USD) |
|
Paid-up Capital: |
NTD 8,032,423,680 (USD 271,495,920) |
|
Legal Representatives: |
Mouwei Li |
|
Legal Form: |
|
|
Principal Activities: |
|
|
Staff: |
|
|
Listed at Stock
Exchange: |
Yes Stock Symbol: 1704
|
|
Date of Last
Annual Return: |
Subject was incorporated on
Subject was listed on Taiwan Stock Exchange on
Change of Name
|
Former English Name |
Lee Chang Yung Chemical Industry Corporation |
|
Current English Name |
Lcy Chemical Corp. |
Awards
|
Year |
Awards |
|
2008 |
Blue chip
importer and exporter |
|
2009 |
Blue chip
importer and exporter |
|
2010 |
Blue chip
importer and exporter |
Standard of Blue
chip importer and exporter
Unit: USD
|
Year |
Amount |
|
2008 |
19,000,000 |
|
2009 |
15,000,000 |
|
2010 |
20,000,000 |
|
Name |
Subscription Shares |
|
Mouwei Li |
64,796,756 |
|
Fu Ju Co., Ltd (Literal Translation) |
|
|
3,228,939 |
|
|
Li Cheng Enterprises Co., Ltd (Literal
Translation) |
79,724,431 |
The information
above is that of subject’s major shareholders.
Branch
|
Registered
Number |
53016522 |
|
Name |
Nanzi Branch |
|
Manager Name |
Congxian Shi |
|
Address |
No. 16, Zhonglin
Road, Xiaogang District, Kaohsiung, Taiwan |
|
Date of Last
Annual Return: |
|
Group Companies
(factories)
|
Zhenjiang LCY General Chemical Co., Ltd. |
It is introduced
that subject has factories in Kaohsiung, Siaogang, Linyuan and Ta-She, Taiwan, but
the detailed address are not disclosed.
Core
Management
Directors
|
1 |
|
|
Name |
Mouwei Li |
|
Position |
Board Chairman
& Manager |
|
Date of
Appointment s |
|
|
2 |
|
|
Name |
Kunzhi Li |
|
Position |
Director |
|
3 |
|
|
Name |
Saifen Yang |
|
Position |
Director |
|
4 |
|
|
Name |
Minggong Li |
|
Position |
Director |
|
5 |
|
|
Name |
Zhengcheng Wei |
|
Position |
Director |
|
6 |
|
|
Name |
Xianjin Wu |
|
Position |
Director |
|
7 |
|
|
Name |
Congxian Shi |
|
Position |
Director |
|
8 |
|
|
Name |
Xunjia Zhuang |
|
Position |
Supervisor |
|
9 |
|
|
Name |
Kuncan Wang |
|
Position |
Supervisor |
Personnel
Structure
|
Total Employees |
About 1,738 employees
(as of |
Offices
& Factories
|
|
Headquarters |
|
Add |
|
Production
Information
l
Subject is a manufacturer of polypropylene (PP), solvents
and other chemical products and it has Four factories in Taiwan and four
factories (related Companies) in China and also a manufacturing site in USA,
while the details are not disclosed.
l
It is introduced that all of subject’s plants have
been ISO 14001 certified
Purchase
Information
l
The registered activities of subject:
|
Business Code |
Details |
|
C801020 |
Manufacture of petrochemical materials |
|
C801100 |
Manufacture of Synthetic Resin and Plastics |
|
C801060 |
|
|
G801010 |
Warehousing industry |
|
C801010 |
Basic chemical industry |
|
C802120 |
Manufacture of industrial additives |
|
C802200 |
|
|
F107990 |
Wholesales of other chemical products |
|
F207990 |
Details of other chemical products |
|
D201040 |
Packing industry of liquefied petroleum gas (LPG) |
|
C803011 |
Oil refining industry |
|
I601010 |
Leasing industry |
|
F112040 |
Wholesales of petroleum products |
|
F212050 |
Retails of petroleum products |
|
F401041 |
Manufacturing and exporting industry |
|
F112011 |
|
|
F107200 |
Wholesales of chemical raw materials |
|
F207200 |
Retails of chemical raw materials |
|
ZZ99999 |
Besides licensed business, all other business
items those are not banned or restricted. |
l
Subject purchases raw
materials both at home and abroad.
l
Subject is engaged in distribution of polypropylene
(PP), solvents and other chemical products. And it provides methanol products,
including methanol, formaldehyde, paraformaldehyde and dimethyl ether, among
others; solvents, including ethyl acetate, isopropyl alcohol and methyl
isobutyl ketone, as well as electronic chemical products, PP related products,
thermoplastic rubber and liquefied petroleum gas (LPG).
l
Subject’s products are applied in the manufacture
of resins, agricultural pesticides, catalysts, medicines, paintings, inks,
artificial leather products, shoes, industrial products, electronic components,
toys and electrical appliances, among others.
l
Subject’s products are both sold in domestic and
overseas market
Import and export
right:
|
Import right |
Yes |
|
Export right |
Yes |
Purchase
Domestic Purchase
|
Payment Terms |
Proportion |
|
|
Raw materials, etc |
COD, Credit Sales, etc |
100% |
Foreign Purchase
|
Payment Terms |
Proportion |
|
|
Raw materials, etc |
CBD, etc |
100% |
Sales
Domestic Markets
|
Sales Terms |
Proportion |
|
|
Petrochemical raw
materials, etc |
CBD, etc |
100% |
Export
|
Sales Terms |
Proportion |
|
|
Petrochemical raw
materials, etc |
CBD, etc |
100% |
Unit: NTD/000
|
|
|
|
|
Assets |
|
|
|
Current Assets |
|
|
|
Cash and cash
equivalents |
494,895.00 |
1,073,683.00 |
|
Financial assets
measured at fair value through profit or loss - current |
88,492.00 |
30,763.00 |
|
Available-for-sale
financial assets - current |
104,890.00 |
336,453.00 |
|
Financial assets
carried at cost - current |
0.00 |
19,617.00 |
|
Notes receivable
- net |
129,407.00 |
91,312.00 |
|
Accounts
receivable - net |
1,271,303.00 |
1,385,092.00 |
|
Accounts
receivable - related parties - net |
36,180.00 |
24,312.00 |
|
Other
receivables |
248,330.00 |
172,676.00 |
|
Other
receivables - related parties |
27,502.00 |
42,840.00 |
|
Inventories |
3,324,263.00 |
2,992,141.00 |
|
Prepaid expenses |
18,513.00 |
14,168.00 |
|
Other
prepayments |
177,003.00 |
172,903.00 |
|
Other current
assets |
121,885.00 |
118,750.00 |
|
Current assets |
6,042,663.00 |
6,474,710.00 |
|
Funds and
Investments |
|
|
|
Financial assets
carried at cost - non current |
284,171.00 |
364,072.00 |
|
Equity investments
under equity method |
19,875,674.00 |
16,530,210.00 |
|
Investments |
19,875,674.00 |
16,530,210.00 |
|
Funds and
long-term investments |
20,159,845.00 |
16,894,282.00 |
|
Fixed Assets |
|
|
|
Cost |
|
|
|
Land |
2,635,181.00 |
1,931,382.00 |
|
Buildings and
structures |
684,223.00 |
583,682.00 |
|
Machinery and
equipment |
8,672,342.00 |
7,465,500.00 |
|
Transportation
equipment |
78,358.00 |
74,943.00 |
|
Other facilities |
1,142,289.00 |
904,399.00 |
|
Revaluation
increment |
1,993,463.00 |
1,290,490.00 |
|
Cost and
revaluation increment |
15,205,856.00 |
12,250,396.00 |
|
Accumulated
depreciation |
-7,469,618.00 |
-6,984,405.00 |
|
Construction in
process and prepayment for equipments |
990,233.00 |
1,658,627.00 |
|
Fixed assets |
8,726,471.00 |
6,924,618.00 |
|
Intangible
Assets |
|
|
|
Patents |
4,794.00 |
5,700.00 |
|
Computer
software cost |
6,001.00 |
11,242.00 |
|
Other intangible
assets |
66,939.00 |
138,161.00 |
|
Intangible
assets |
77,734.00 |
155,103.00 |
|
OtherAssets |
|
|
|
Idled assets |
664,611.00 |
474,175.00 |
|
Guarantee
deposits paid |
15,453.00 |
17,378.00 |
|
Deferred charges |
39,043.00 |
64,227.00 |
|
Long-term notes
and accounts receivable - related parties |
10,033.00 |
19,992.00 |
|
Other assets -
other |
26,226.00 |
675.00 |
|
Other assets |
755,366.00 |
576,447.00 |
|
Assets |
35,762,079.00 |
31,025,160.00 |
|
Liabilities and
Stockholders' Equity |
|
|
|
Liabilities |
|
|
|
Current
Liabilities |
|
|
|
Short-term
borrowings |
5,458,984.00 |
2,407,844.00 |
|
Financial
liabilities measured at fair value through profit or loss - current |
1,334.00 |
1,843.00 |
|
Notes payable |
5,027.00 |
3,585.00 |
|
Accounts payable |
2,163,977.00 |
2,010,844.00 |
|
Accounts payable
- related parties |
6,356.00 |
8,922.00 |
|
Income tax
payable |
125,445.00 |
322,998.00 |
|
Accrued expenses |
398,265.00 |
495,944.00 |
|
Other payables |
192,307.00 |
174,022.00 |
|
Advance receipts |
128,074.00 |
122,675.00 |
|
Long-term
liabilities - current portion |
714,286.00 |
1,503,571.00 |
|
Other current
liabilities |
996.00 |
22,838.00 |
|
Current
liabilities |
9,195,051.00 |
7,075,086.00 |
|
Long term
Liabilities |
|
|
|
Long-term
borrowings |
500,000.00 |
714,286.00 |
|
Long-term
deferred revenues |
64,396.00 |
76,563.00 |
|
Long-term liabilities |
564,396.00 |
790,849.00 |
|
Reserves |
|
|
|
Reserve for land
revaluation increment tax |
994,802.00 |
571,013.00 |
|
Reserves |
994,802.00 |
571,013.00 |
|
Other
Liabilities |
|
|
|
Guarantee
deposits received |
4,966.00 |
3,396.00 |
|
Deferred income
tax liabilities |
2,051,402.00 |
1,672,856.00 |
|
Other
liabilities - other |
8,629.00 |
4,114.00 |
|
Other
liabilities |
2,064,997.00 |
1,680,366.00 |
|
Liabilities |
12,819,246.00 |
10,117,314.00 |
|
Stockholders'
Equity |
|
|
|
Capital |
|
|
|
Common stock |
8,032,424.00 |
7,505,344.00 |
|
Capital Surplus |
|
|
|
Capital surplus
- additional paid-in capital |
3,991,145.00 |
2,481,556.00 |
|
Capital surplus
- treasury stock transactions |
274,124.00 |
92,308.00 |
|
Capital surplus -
donated assets received |
9,401.00 |
9,401.00 |
|
Capital surplus
- long-term equity investments |
65,894.00 |
192,109.00 |
|
Capital surplus
- premium from merger |
3,600,616.00 |
3,635,942.00 |
|
Capital surplus
- employee stock option |
0.00 |
32,080.00 |
|
Capital surplus |
7,941,180.00 |
6,443,396.00 |
|
Retained
Earnings |
|
|
|
Legal reserve |
1,909,553.00 |
1,594,832.00 |
|
Special reserve |
15,473.00 |
15,473.00 |
|
Unappropriated
retained earnings |
3,962,525.00 |
5,178,629.00 |
|
Retained
earnings |
5,887,551.00 |
6,788,934.00 |
|
Stockholders'
Equity and Other adjustmen |
|
|
|
Cumulative
translation adjustments |
-501,876.00 |
-664,906.00 |
|
Unrealized gains
(losses) on financial instruments |
37,100.00 |
79,967.00 |
|
Unrealized Revaluation
Increment |
1,546,454.00 |
1,076,834.00 |
|
|
0.00 |
-321,723.00 |
|
Equity
adjustments |
1,081,678.00 |
170,172.00 |
|
Stockholdersˉ
equity |
22,942,833.00 (USD 766,290,622) |
20,907,846.00 (USD 698,322,056) |
|
Number of treasury
stock acquired by the company and subsidiaries (unit: share) |
0.00 |
13,100,000.00 |
|
|
0.00 |
0.00 |
(As of 2012.06, 1 NTD =
0.0334 USD)
Unit: NTD/000
|
|
~ |
~ |
|
Sales |
7,116,683.00 (USD 237,697,212) |
7,775,793.00 (USD 259,711,486) |
|
Sales returns |
5,803.00 |
6,931.00 |
|
Sales discounts
and allowances |
1,641.00 |
1,044.00 |
|
Sales |
7,109,239.00 |
7,767,818.00 |
|
Rental revenue |
38,810.00 |
32,065.00 |
|
Operating income |
7,148,049.00 |
7,799,883.00 |
|
Cost of sales |
6,395,200.00 |
6,925,466.00 |
|
Cost of rental |
16,160.00 |
15,461.00 |
|
Operating costs |
6,411,360.00 |
6,940,927.00 |
|
Gross profit
(loss) from operations |
736,689.00 |
858,956.00 |
|
Unrealized gains
on intercompany transactions |
2,231.00 |
1,459.00 |
|
Realized gains
on intercompany transactions |
0.00 |
3,362.00 |
|
Selling expense |
244,478.00 |
264,407.00 |
|
General and
administrative expenses |
72,837.00 |
95,809.00 |
|
Research and
development expenses |
35,639.00 |
43,764.00 |
|
Operating
expenses |
352,954.00 |
403,980.00 |
|
Operating income
(loss) |
381,504.00 |
456,879.00 |
|
Non-Operating Income |
|
|
|
Interest income |
710.00 |
254.00 |
|
Inome from
long-term equity investments under the equity method |
243,451.00 |
837,654.00 |
|
Dividends |
0.00 |
14,245.00 |
|
Investment
income |
243,451.00 |
851,899.00 |
|
Gains on sale of
investments |
0.00 |
26,587.00 |
|
Foreign exchange
gains |
31,236.00 |
24,177.00 |
|
Revaluation gain
on financial assets |
0.00 |
3,776.00 |
|
Miscellaneous
income |
41,340.00 |
24,931.00 |
|
Non-operating
revenues and gains |
316,737.00 |
931,624.00 |
|
Non-Operating Expenses |
|
|
|
Interest expense |
28,139.00 |
14,430.00 |
|
Loss on sale of
investments |
22,103.00 |
0.00 |
|
Impairment loss
on assets |
0.00 |
3,771.00 |
|
Revaluation loss
on financial assets |
53,668.00 |
0.00 |
|
Miscellaneous
disbursements |
1,611.00 |
2,888.00 |
|
Non-operating
expenses and losses |
105,521.00 |
21,089.00 |
|
Income from
continuing operations before income tax |
592,720.00 |
1,367,414.00 |
|
Income tax
expense (benefit) |
187,277.00 |
216,734.00 |
|
Income from
continuing operations |
405,443.00 |
1,150,680.00 |
|
Net income
(loss) |
405,443.00 (USD 13,541,796) |
1,150,680.00 (USD 38,432,712) |
|
Primary Earnings
per Share |
|
|
|
Primary earnings
per share |
0.74 |
1.90 |
|
Diluted earnings
per share |
|
|
|
Diluted earnings
per share |
0.74 |
1.90 |
As of 2012.06, 1 NTD =
0.0334 USD)
Subject did not introduce its bank details; from other source we can not
obtain the relevant information, either.
Mortgage
No chattel mortgage record of subject has been found within the
recent 3 months.
Lawsuit
Up to date of
reporting, no existing or latent litigation of the subject has been found.
|
Department |
Sales department |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.53 |
|
UK Pound |
1 |
Rs.87.48 |
|
Euro |
1 |
Rs.70.89 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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 |
|
---- |
NB |
New Business |
---- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.