MIRA INFORM REPORT

 

 

Report Date :

13.07.2012

 

IDENTIFICATION DETAILS

 

Name :

CHINA STEEL CHEMICAL CORPORATION

 

 

Registered Office :

5F.-1, No.47, Chung Hua 4th Rd., Kaohsiung

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

03.02.1989

 

 

Com. Reg. No.:

23221384

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Production, processing and sale of coal tar distilling products, light oil products and coke

 

 

No. of Employees :

About 150 Employees

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Taiwan

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

Contact Points

 

Company Name:

China Steel Chemical Corporation

Supplied Name:

China Steel Chemical Corporation

Trading Address:

5F.-1, No.47, Chung Hua 4th Rd., Kaohsiung, Taiwan, R.O.C.

Supplied Address:

5th Floor 47 Chung Hua 4th Road Kaohsiung Taiwan

Telephone Number:

+886-7-338-3515

Fax Number:

+886-7-338-3516 

E-mail:

cscc@e-cscc.com.tw

Website:

www.cscc.com.tw

 

Company Identification Details

 

Registered Name:

China Steel Chemical Corporation

Registered Address:

5F.-1, No.47, Chung Hua 4th Rd., Kaohsiung, Taiwan, R.O.C.

Date of Foundation:

1989-2-3

Registration Number:

23221384

Registry:

Department of Commerce, Ministry of Economic Affairs, R.O.C.

Registered Capital:

NTD 3,000,000,000 (USD 100,200,000)

(As of 2012.07, 1 NTD = 0.0334 USD)

Paid-up Capital:

NTD 2,369,044,800 (USD 79,126,096)

Legal Representatives:

Yuemin Zhong

Legal Form:

Joint Stock Company

Principal Activities:

Production, processing and sale of coal tar distilling products, light oil products and coke

Staff:

About 150 Employees

Listed at Stock Exchange:

Yes; Stock Symbol: 1723

Date of Last Annual Return:

2011-10-11

 

History

 

Subject was incorporated on 1989-2-3 with registered number 23221384 as Joint Stock Company in Taiwan.

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

 

Shareholders

 

Name

Subscription Shares

China Steel Corporation 

68,787,183       

 

China Synthetic Rubber Corporation

 

13,459,096

 

Gao Duan Investment Corporation (Translated)

441,220

CTCI Corporation

2,426,916

The information above is that of subject’s major shareholders.

 


Subsidiaries & Branches

Parent Company

Name

China Steel Corporation 

Address

No.1,Chung Kang Road Kaohsiung Taiwan

Tel

+886-7-8021111

Fax

+886-7-8018434

Listed at Stock Exchange:

Yes Stock Symbol: 2002

Notes:

China Steel Corporation is principally engaged in steel business. The Company manufactures various steel products, including plate products, steel bars, wire rod products, hot rolled products, cold rolled products, electro galvanizing steel products, hot-dip galvanizing steel products and electromagnetic steel sheets. The Company's products are applied to ships, bridges, containers, trucks, steel structures, automobiles, furniture, home appliances, hardware fittings, computers, motors and transformers, among others. The Company distributes its products in the domestic market and to overseas markets, including Hong Kong, Mainland China, Japan, Malaysia, South Korea, Indonesia, Thailand, Vietnam and Singapore.

 

Personnel Information

 

Core Management

 

Directors

1

Name

Yuemin Zhong

Position

Board Chairman

2

Name

Ruoqi Zou

Position

Director

3

Name

Maogen Wang

Position

Director/ Manager

Date of Appointment

2009-9-1

3

Name

Jincai Qiu

Position

Director

4

Name

Guozhen Zhangjian

Position

Director

5

Name

Chengyun Gu

Position

Director

6

Name

Xiongjie Peng

Position

Director

7

Name

Zhongyi Lin

Position

Director

8

Name

Hezong Chen

Position

Director

9

Name

Junyan Yu

Position

Supervisor

10

Name

Wenyuan Chen

Position

Supervisor

11

Name

Kaijie Jia

Position

Supervisor

Personnel Structure

 

Total Employees

About 150 Employees

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

5F.-1, No.47, Chung Hua 4th Rd., Kaohsiung, Taiwan, R.O.C.

 

Production Information

 

l         Subject is engaged in the production, processing and sale of coal tar distilling products, light oil products and coke, etc

 

Purchase Information

 

l         The registered activities of subject:

Business Code

Details

C801010

Basic chemical industrial manufacturing

F107100

Basic chemical materials wholesaling

F107110

Petrochemical materials Wholesaling

F107170

Industrial additives wholesaling

F120010

fireproofing materials wholesaling

F401010

International Trading Business

I101131

Chemical consulting industry

ZZ99999

Besides licensed business, all other business items those are not banned or restricted.

 

l         Subject did not introduce its purchasing information

Sales Information

 

l         The subject is mainly engaged in coal tar distilling products, light oil products and coke, etc

l         Subject’s coal tar distilling products include soft pitch, creosote oils, raw naphthalene, refined naphthalene, special asphalt, roof caulk glue, wood cosmoline and dinaphthol, etc

l         Subject also supplies light oil products include toluene, benzene and solvent.

l         Subject distributes its products in domestic markets and to overseas markets, including Mainland China, Japan, Vietnam, South Korea, Hong Kong, India, Myanmar, Indonesia and Malaysia, etc

l         Subject obtained the certifications of ISO 9001: 2000, ISO14001 and OHSAS 18001.

 

Major products sold

1

Soft Pitch

2

Creosote Oil

3

Refined Naphthalene

4

Benzene

5

Toluene

6

Metallurgical Coke

7

Green Mesophase Power

8

Dye intermediate

 

Import and export right:

Import right

Yes

Export right

Yes

 

Settlements

 

Purchase

 

Subject did not introduce its purchasing terms.

 

Sales

 

Domestic Markets (Taiwan)

Product

Sales Terms

Proportion

Coal tar distilling products, light oil products and coke, etc

CBD, etc

100%

 

Export

Product

Sales Terms

Proportion

Coal tar distilling products, light oil products and coke, etc

CBD, etc

100%

Notes: Subject’s settlement for export is generally in USD

 

Balance Sheet

 

Unit: NTD/000

 

2012-3-31

2011-3-31

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

1,313,410.00

586,846.00

Financial assets measured at fair value through profit or loss-current

754,046.00

1,420,477.00

Available-for-sale financial assets-current

31,763.00

52,991.00

Held-to-maturity financial assets-current

25,000.00

0.00

Notes receivable-net

19,101.00

13,375.00

Accounts receivable-net

582,714.00

581,727.00

Accounts receivable-related parties-net

158,392.00

189,788.00

Other receivables

13,100.00

11,694.00

Inventories

429,226.00

333,770.00

Other current assets

71,974.00

90,654.00

Current assets

3,398,726.00

3,281,322.00

Funds and Investments

 

 

Held-to-maturity financial assets-non current

25,000.00

50,000.00

Financial assets carried at cost-non current

35,722.00

36,434.00

Debt investments without active market-non current

50,000.00

50,000.00

Equity investments under equity method

2,316,903.00

2,275,515.00

Investments

2,316,903.00

2,275,515.00

Funds and long-term investments

2,427,625.00

2,411,949.00

Fixed Assets

 

 

Cost

 

 

Land

104,724.00

104,724.00

Buildings and structures

370,205.00

288,133.00

Machinery and equipment

2,747,528.00

2,429,012.00

Transportation equipment

69,111.00

54,141.00

Other facilities

63,193.00

43,761.00

Revaluation increment

0.00

0.00

Cost and revaluation increment

3,354,761.00

2,919,771.00

Accumulated depreciation

-2,096,735.00

-2,035,919.00

Construction in process and prepayment for equipments

306,434.00

409,274.00

Fixed assets

1,564,460.00

1,293,126.00

Intangible Assets

 

 

Deferred pension cost

2,232.00

2,513.00

Intangible assets

2,232.00

2,513.00

Other Assets

 

 

Rental assets

542,098.00

537,246.00

Guarantee deposits paid

640.00

441.00

Deferred income tax assets - non current

15,260.00

27,269.00

Other assets - other

6.00

6.00

Other assets

558,004.00

564,962.00

Assets

7,951,047.00

7,553,872.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

Short-term borrowings

96,814.00

52,878.00

Financial liabilities measured at fair value through profit or loss - current

0.00

620.00

Accounts payable

26,570.00

29,582.00

Accounts payable - related parties

286,352.00

334,656.00

Income tax payable

314,273.00

324,858.00

Accrued expenses

265,823.00

250,643.00

Other current liabilities

46,487.00

27,911.00

Current liabilities

1,036,319.00

1,021,148.00

Long term Liabilities

 

 

Reserves

 

 

Other Liabilities

 

 

Pension reserve / accrued pension liability

101,814.00

98,036.00

Other liabilities

101,814.00

98,036.00

Liabilities

1,138,133.00

1,119,184.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

2,369,044.00

2,369,044.00

Capital Surplus

 

 

Capital surplus-additional paid-in capital

218.00

161.00

Capital surplus-treasury stock transactions

322,831.00

269,430.00

Capital surplus-long-term equity investments

109,103.00

95,555.00

Capital surplus

432,152.00

365,146.00

Retained Earnings

 

 

Legal reserve

1,305,550.00

1,114,115.00

Special reserve

100,191.00

100,191.00

Unappropriated retained earnings

2,868,235.00

2,589,291.00

Retained earnings

4,273,976.00

3,803,597.00

Stockholders' Equity and Other adjustment

 

 

Cumulative translation adjustments

-33,889.00

-38,918.00

Net loss not recognized as pension cost

-56,439.00

-38,564.00

Unrealized gains (losses) on financial instruments

-20,664.00

126,320.00

 

-151,266.00

-151,937.00

Equity adjustments

-262,258.00

-103,099.00

Stockholders‘ equity

6,812,914.00

(USD 227,551,328)

6,434,688.00

(USD 214,918,579)

Number of treasury stock acquired by the company and subsidiaries (unit: share)

6,770,537.00

6,800,537.00

 

0.00

0.00

(As of 2012.07, 1 NTD = 0.0334 USD)

 

Profit and Loss Account

    Unit: NTD/000

 

2012-1-1

~2012-3-31

2011-1-1

~2011-3-31

Sales

2,258,935.00

(USD 75,448,429)

2,433,009.00

(USD 81,262,501)

Other operating revenue

17,325.00

25,544.00

Operating income

2,276,260.00

2,458,553.00

Operating costs

1,603,342.00

1,711,642.00

Gross profit (loss) from operations

672,918.00

746,911.00

Selling expense

41,942.00

45,750.00

General and administrative expenses

21,482.00

33,446.00

Research and development expenses

18,857.00

15,246.00

Operating expenses

82,281.00

94,442.00

Operating income (loss)

590,637.00

652,469.00

Non-Operating Income

 

 

Interest income

5,561.00

4,038.00

Income from long-term equity investments under the equity method

24,628.00

28,855.00

Investment income

24,628.00

28,855.00

Reversal of provision for bad debts

0.00

22,048.00

Miscellaneous income

9,924.00

9,394.00

Non-operating revenues and gains

40,113.00

64,335.00

Non-Operating Expenses

 

 

Interest expense

493.00

421.00

Foreign exchange losses

6,548.00

7,298.00

Miscellaneous disbursements

1,248.00

7,582.00

Non-operating expenses and losses

8,289.00

15,301.00

Income from continuing operations before income tax

622,461.00

701,503.00

Income tax expense (benefit)

90,745.00

99,083.00

Income from continuing operations

531,716.00

602,420.00

Net income (loss)

531,716.00

(USD 17,759,314)

602,420.00

(USD 20,120,828)

Primary Earnings per Share

 

 

Primary earnings per share

2.31

2.62

Diluted earnings per share

 

 

Diluted earnings per share

2.30

2.61

(As of 2012.07, 1 NTD = 0.0334 USD)


Cash Flows

Unit: NTD/000

 

2012-1-1

~2012-3-31

2011-1-1

~2011-3-31

Cash Flows from Operating Activities –Indirect Method

 

 

Net Income (Loss)

531,716

602,420

Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities

 

 

Depreciation Expense

54,626

39,743

Provision (Reversal of Provision) for Bad Debts Losses

0

(22,048)

Loss (Gain) on Decline (Recovery) in Market Value, Scrap and Obsolescence of Inventories

4,336

5,233

Investment Loss (Income) Recognized under Equity Method

(24,628)

(28,855)

Cash Dividends Received from Investments Accounted for under Equity Method

0

9,865

Unrealized Revaluation Loss (Gain) on Financial Assets and Liabilities

(4,395)

(129)

Loss (Gain) on Deferred Income Tax

339

(1,520)

Other Adjustments to Reconcile Net Income

1,249

6,533

Changes in Operating Assets and Liabilities

 

 

Decrease (Increase) in Notes Receivable

8,967

(7,580)

Decrease (Increase) in Accounts Receivable

(154,932)

(96,489)

Decrease (Increase) in Accounts Receivable – Related Parties

(15,201)

(24,418)

Decrease (Increase) in Other Receivables

1,668

(4,731)

Decrease (Increase) in Inventories

7,067

(91,820)

Decrease (Increase) in Other Current Assets

(11,514)

(37,855)

Increase (Decrease) in Accounts Payable

343

3,910

Increase (Decrease) in Accounts Payable – Related Parties

13,009

86,583

Increase (Decrease) in Income Tax Payable

76,645

100,273

Increase (Decrease) in Accrued Expenses

(8,902)

21,203

Increase (Decrease) in Other Current Liabilities

(5,792)

2,690

Increase (Decrease) in Accrued Pension Liabilities

(2,707)

(2,434)

Net Cash Provided by (Used in) Operating Activities

471,894

560,574

Cash Flows from Investing Activities

 

 

Acquisition of Financial Assets as Fair Value through Profit or Loss

(515,000)

(1,327,000)

Proceeds from Disposal of Financial Assets as Fair Value through Profit or Loss

280,115

1,308,493

Purchase of Property, Plant and Equipment

(39,499)

(212,600)

Decrease (Increase) in Restricted Assets

0

(3,500)

Net Cash Provided by (Used in) Investing Activities

(274,384)

(234,607)

Cash Flows from Financing Activities

 

 

Increase (Decrease) in Short-term Loans

(38,535)

(150,675)

Cash Dividends Paid

(2)

0

Net Cash Provided by (Used in) Financing Activities

(38,537)

(150,675)

Net Increase (Decrease) in Cash and Cash Equivalents

158,973

175,292

Cash and Cash Equivalents, Beginning of year

1,154,437

411,554

Cash and Cash Equivalents, End of year

1,313,410

586,846

Supplemental Cash Flow Information

 

 

Interest Paid- Excluding Capitalized Interest

508

419

Income Tax Paid

13,761

330

Investing Activities Affecting Both Cash and Non-cash Items

 

 

Cash Paid for Acquisition of Property, Plant and Equipment

 

 

Increase in Property, Plant and Equipment

32,983

123,089

Increase (Decrease) in Payable for Equipment Purchased

6,516

89,511

Cash Paid for Acquisition of Property, Plant and Equipment

39,499

212,600

 

Bankers

 

Subject declined to disclose its bank details; from other source we can not obtain the relevant information, either.

 

Public Record

 

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.

 

 

Interview Details

 

Name

Ms. Yu

Department

Sales department

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.70

UK Pound

1

Rs.86.28

Euro

1

Rs.68.15

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.