MIRA INFORM REPORT

 

 

Report Date :

25.09.2012

 

 

 

 

Tel. No.:

+886 2-25153969

 

 

IDENTIFICATION DETAILS

 

Name :

TAIWAN PULP & PAPER CORPORATION

 

 

Registered Office :

10F, No.96, Sec.1, Chienkuo N. Rd., Taipei

 

 

Country :

Taiwan

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

09.09.1948

 

 

Com. Reg. No.:

11912102

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and sales of pulp, cultural paper and chemical products

 

 

No. of Employees :

About 600 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 :

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 – 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

 


Taiwan - ECONOMIC OVERVIEW

 

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

 

 

 


Contact Points

 

Company Name:

Taiwan Pulp & Paper Corporation

Supplied Name:

Taiwan Pulp & PaperCorporation

Trading Address:

10F, No.96, Sec.1, Chienkuo N. Rd., Taipei, Taiwan, R.O.C.

Supplied Address:

10 F No 90 Sec 1 Chien-Kuo North Road Taipei

Telephone Number:

+886-2-2515-3969

Fax Number:

+886-2-2515-3956

E-mail:

pulpaper@tppc.com.tw

Website:

www.tppc.com.tw

Notes: The exact name and address are as above.

 

 

Credit Summary

 

Credit Opinion:

Business connections are permissible.

 

 

Company Identification Details

 

Registered Name:

Taiwan Pulp & Paper Corporation

Registered Address:

10F, No.96, Sec.1, Chienkuo N. Rd., Taipei, Taiwan, R.O.C.

Date of Foundation:

1948-9-9

Registration Number:

11912102

Registry:

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

Registered Capital:

NTD 6,000,000,000 (USD 204,000,000)

(As of 2012.09, 1 NTD = 0.034 USD)

Paid-up Capital:

NTD 4,020,005,500 (USD 136,680,187)

Legal Representatives:

Shumei Zhang

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sales of pulp, cultural paper and chemical products

Staff:

About 600 Employees

Listed at Stock Exchange:

Yes; Stock Symbol: TPE: 1902

Date of Last Annual Return:

2012-7-30

 

 

History

 

Subject was incorporated on 1948-9-9 with registered number 11912102 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

Tai Di Investment Co., Ltd. (Literal Translation)

3,387,760

Tai Zhan Investment Co., Ltd. (Literal Translation)

7,096,700

Qian Shun Hang Corporation (Literal Translation)

1,176,125

Jia Ji Investment Co., Ltd. (Literal Translation)

15,304,981

He Wang Investment Co., Ltd. (Literal Translation)

6,996,000

Du Wanquan Charity Foundation (Literal Translation)

1,432,776

Quan Jin Investment Co., Ltd. (Literal Translation)

848,000

Peishan He

715,096

 

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

 

 

Subsidiaries & Branches

 

Factory

Name

Xinying Factory

Address

No. 94, Nanzhi St., Xinying Dist, Tainan City, Taiwan, R.O.C.

Telephone Number

+886-6-656-3811

Fax Number

+886-6-656-2845

 

Related Companies

1

Name

Hoa Viet Joint Venture Co., Ltd.

Address

Long Thanh My Ward, district 9, Ho Chih Minh City, Vietnam

Telephone Number

+84-8-2800130

Fax Number

+84-8-280-0120

2

Name

Gia Phu Packaging Co., Ltd.

Address

Tan Thuan Export Processing Zone, the 1 road, district 7, Ho Chih Minh City, Vietnam

Telephone Number

+84-8-770-1045

Fax Number

+84-8-770-1236

Principal Activities

Manufacturing and sales of packing cartons

3

Name

Minh Phu Co., Ltd

Address

Thong Nhat Road, Di An Town, Di An District, Binh Duong Province, Vietnam

Telephone Number

+84-650-790360

Fax Number

+84-650-732907

Principal Activities

Manufacturing and sales of packing cartons

4

Name

Ji Phu Paper Company Ltd.

Address

D1-2-2,D1-3, khu cong nghiep Dai Dang, phuong Phu Tan, thi xa Thu Dau Mot, tinh Binh Duong, Vietnam

Telephone Number

+84-650-558006

Fax Number

+84-650-558009

Area

About 60,000 square meter

Principal Activities

Manufacturing and sales of packing cartons

Production Capacity

About 6,000,000 square meters per month

 

 

Personnel Information

 

Core Management

Directors

1

Name

Shujuan Zhang

Position

Board Director

2

Name

Bohong Zhang

Position

Director

Date of Appointment

1995-11-16

3

Name

Hengyi Du

Position

Director

4

Name

Jinhong Pan

Position

Director

5

Name

Congming Jian

Position

Director

6

Name

Tiaorong Yang

Position

Director

7

Name

Wenjin Gao

Position

Director

8

Name

Zecheng Luo

Position

Director

9

Name

Jianzhi Liu

Position

Director

10

Name

Guozhen Zeng

Position

Supervisor

11

Name

Mingzhe Li

Position

Supervisor

12

Name

Peishan He

Position

Supervisor

 

 

 

 

 

Personnel Structure

Total Employees

About 600 Employees

 

 

Operation Information

 

Offices & Factories

 

Headquarters

Add

10F, No.96, Sec.1, Chienkuo N. Rd., Taipei, Taiwan, R.O.C.

 

Production Information

l         Subject is engaged in manufacturing of pulp, cultural paper and chemical products, etc.

l         Subject has a factory (about 510,000 square meters) in Tainan city, Taiwan for production of pulp, cultural paper and chemical, etc.

l         Subject’s factory departments as follows for reference:

 

Department

1

Pulp Making Department

2

Paper Making Department

3

Chemicals Department

4

Engineering Department

5

Safety and Environment Department

6

Quality Control Section

7

General Affairs Section

8

Materials Section

9

Cost Accounting Section

 

 

 

 

 

 

 

Purchase Information

l         The registered activities of subject:

Business Code

Details

--

Manufacturing and sales of paper pulp and paper

--

Processing of paper products

--

Sales of paper raw materials

 --

Research and improvement of paper technology

--

Planting of fibrous materials used in paper production

--

Other related paper production business

J101030

Waste clear industry

J101040

Waste treatment industry

G202010

Operation of parking lot

G801010

Storage business

ZZ99999

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

 

l         The raw materials for production of pulp and chemicals are purchased both home and abroad as follows for reference:

 

Raw material

Origin

Wood Chip

Mainland China, Vietnam, Thailand, Australia, and Indonesia

Sylvite

Canada

 

Sales Information

l         Subject is engaged in sales of pulp, cultural paper and chemical products, etc.

l         Subject’s sales regions include domestic market, other Asian Countries, Europe, and America, etc.

l         Subject obtained the certifications of ISO 9001, PEFC and OSHAS 18001.

 

 

 

Major products sold

Type

Product

Application

Pulp

Kraft pulp

Local writing paper, household paper and industrial paper.

Paper

Woodfree paper

Printing and finishing in magazines, books, playbills, brochures, calendars, ledgers, envelopes, notebooks, etc.

Machine glazed paper

Calendar or packaging

Printing paper

Calendar

Fruit bag base paper

Fruit bag

Hand towel

Home and public place for cleaning and wiping

Chemical

Liquefied chlorine

--

Hydrochloride

--

Sodium hypochlorite

--

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

Domestic Purchase (Taiwan and Mainland, China)

Product

Payment Terms

Proportion

Raw materials

COD, CBD, etc

100%

 

Foreign Purchase

Product

Payment Terms

Proportion

Raw materials

CBD, etc

100%

 

Sales

Domestic Markets (Taiwan)

Product

Sales Terms

Proportion

Pulp, paper and chemical

COD, CBD, Credit Sales, etc

100%

 

Export

Product

Sales Terms

Proportion

Pulp, paper and chemical

CBD, etc

100%

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

 

 

Financial Information

 

Unit: NTD/000

Date

2012-6-30

2011-6-30

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

51,545.00

135,995.00

Notes receivable - net

62,022.00

81,159.00

Accounts receivable - net

291,967.00

376,471.00

Other receivables

4,812.00

16,502.00

Inventories

1,667,032.00

2,003,020.00

Prepaid expenses

293,797.00

269,379.00

Other prepayments

28,531.00

39,600.00

Other current assets

193,588.00

177,206.00

Current assets

2,593,294.00

3,099,332.00

Funds and Investments

 

 

Financial assets carried at cost - non current

727.00

727.00

Equity investments under equity method

2,716,695.00

2,497,460.00

Investments

2,716,695.00

2,497,460.00

Funds and long-term investments

2,717,422.00

2,498,187.00

Fixed Assets

 

 

Cost

 

 

Land

173,527.00

173,535.00

Land improvements

121,203.00

118,865.00

Buildings and structures

781,534.00

757,816.00

Machinery and equipment

5,696,311.00

6,005,531.00

Transportation equipment

70,833.00

68,315.00

Other facilities

79,666.00

72,264.00

Revaluation increment

2,866,986.00

2,890,624.00

Cost and revaluation increment

9,790,060.00

10,086,950.00

Accumulated depreciation

-5,552,688.00

-5,934,427.00

Construction in process and prepayment for equipments

35,356.00

55,752.00

Fixed assets

4,272,728.00

4,208,275.00

Intangible Assets

 

 

Deferred pension cost

19,771.00

24,076.00

Intangible assets

19,771.00

24,076.00

Other Assets

 

 

Idled assets

7,853.00

22,831.00

Guarantee deposits paid

3,411.00

3,379.00

Deferred charges

2,814.00

3,729.00

Long-term notes and accounts receivable

0.00

0.00

Other assets

14,078.00

29,939.00

Assets

9,617,293.00

9,859,809.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

Short-term borrowings

522,208.00

718,482.00

Short-term notes and bills payable

99,911.00

39,952.00

Notes payable

28,742.00

53,321.00

Accounts payable

231,389.00

383,540.00

Income tax payable

0.00

33,804.00

Accrued expenses

204,764.00

269,518.00

Other payables

214,113.00

259,201.00

Advance receipts

27,778.00

63,309.00

Long-term liabilities - current portion

155,600.00

45,600.00

Other current liabilities

6,865.00

7,830.00

Current liabilities

1,491,370.00

1,874,557.00

Long term Liabilities

 

 

Long-term borrowings

785,600.00

411,200.00

Long-term liabilities

785,600.00

411,200.00

Reserves

 

 

Reserve for land revaluation increment tax

829,925.00

837,148.00

Reserves

829,925.00

837,148.00

Other Liabilities

 

 

Pension reserve / accrued pension liability

451,926.00

457,193.00

Guarantee deposits received

496.00

769.00

Deferred income tax liabilities

47,020.00

150,816.00

Other liabilities - other

5,706.00

5,706.00

Other liabilities

505,148.00

614,484.00

Liabilities

3,612,043.00

3,737,389.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

4,020,005.00

3,857,675.00

Stock dividend to be distributed

0.00

231,460.00

Capital Surplus

 

 

Capital surplus - additional paid-in capital

958,762.00

975,244.00

Capital surplus - treasury stock transactions

130,629.00

119,989.00

Capital surplus

1,089,391.00

1,095,233.00

Retained Earnings

 

 

Legal reserve

171,575.00

150,683.00

Unappropriated retained earnings

429,628.00

712,792.00

Retained earnings

601,203.00

863,475.00

Stockholders' Equity and Other adjustment

 

 

Cumulative translation adjustments

-602,829.00

-803,862.00

Net loss not recognized as pension cost

-70,614.00

-97,119.00

Unrealized Revaluation Increment

968,094.00

975,558.00

Equity adjustments

294,651.00

74,577.00

Stockholders’ equity

6,005,250.00

(USD 204,178,500)

6,122,420.00

(USD 208,162,280)

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

0.00

0.00

 

0.00

0.00

(As of 2012.09, 1 NTD = 0.034 USD)

 

 

Profit and Loss Account

 

Unit: NTD/000

Date

2012-1-1~2012-6-30

2011-1-1~2011-6-30

Sales

2,076,019.00

(USD 70,584,646)

2,496,534.00

(USD 84,882,156)

Sales returns

1,074.00

1,125.00

Sales discounts and allowances

4,352.00

7,375.00

Sales

2,070,593.00

2,488,034.00

Net construction revenue (for construction contracting business)

14,126.00

47,520.00

Construction and engineering revenue

14,126.00

47,520.00

Operating income

2,084,719.00

2,535,554.00

Cost of sales

2,029,925.00

2,191,295.00

Cost of construction

11,972.00

44,736.00

Cost of construction and engineering service

11,972.00

44,736.00

Operating costs

2,041,897.00

2,236,031.00

Gross profit (loss) from operations

42,822.00

299,523.00

Selling expense

88,730.00

113,792.00

General and administrative expenses

71,446.00

90,189.00

Operating expenses

160,176.00

203,981.00

Operating income (loss)

-117,354.00

95,542.00

Non-Operating Income

 

 

Interest income

69.00

92.00

Income from long-term equity investments under the equity method

71,159.00

85,293.00

Dividends

129.00

145.00

Investment income

71,288.00

85,438.00

Gains on disposal of fixed assets

0.00

667.00

Foreign exchange gains

3,985.00

9,335.00

Rent income

181.00

234.00

Miscellaneous income

7,079.00

510.00

Non-operating revenues and gains

82,602.00

96,276.00

Non-Operating Expenses

 

 

Interest expense

8,753.00

6,453.00

Loss on disposal of fixed assets

33,234.00

75.00

Financial expense

219.00

268.00

Revaluation loss on financial assets

0.00

431.00

Miscellaneous disbursements

31.00

909.00

Non-operating expenses and losses

42,237.00

8,136.00

Income from continuing operations before income tax

-76,989.00

183,682.00

Income tax expense (benefit)

14,212.00

4,693.00

Income from continuing operations

-91,201.00

178,989.00

Net income (loss)

-91,201.00

(USD -3,100,834)

178,989.00

(USD 6,085,626)

Primary Earnings per Share

 

 

Primary earnings per share

-0.23

0.46

Diluted earnings per share

 

 

Diluted earnings per share

0.00

0.46

(As of 2012.09, 1 NTD = 0.034 USD)

 

 

Cash flows

 

Unit: NTD/000

Date

2012-1-1~2012-6-30

2011-1-1~2011-6-30

Cash Flows from Operating Activities-Indirect Method

 

 

Net Income (Loss)

(91,201)

178,989

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

 

 

Depreciation Expense

118,739

117,134

Amortization Expense

604

535

Provision (Reversal of Provision) for Bad Debts Losses

-6,361

0

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

-31,550

-575

Investment Loss (Income) Recognized under Equity Method

-71,159

-85,293

Loss (Gain) on Disposal of Property, Plant and Equipment

33,234

-592

Unrealized Revaluation Loss (Gain) on Financial Assets and Liabilities

0

431

Loss (Gain) on Deferred Income Tax

14,212

-29,110

Changes in Operating Assets and Liabilities

 

 

Decrease (Increase) in Notes Receivable

32,123

40,355

Decrease (Increase) in Accounts Receivable

17,547

-9,625

Decrease (Increase) in Other Receivables

58,272

-1,585

Decrease (Increase) in Inventories

78,168

-411,562

Decrease (Increase) in Prepaid Expenses

-16,812

698

Decrease (Increase) in Other Prepayments

-4,486

27,087

Decrease (Increase) in Other Operating Assets

-2,669

-8,244

Increase (Decrease) in Notes Payable

-25,457

-22,572

Increase (Decrease) in Accounts Payable

-78,079

158,050

Increase (Decrease) in Income Tax Payable

-33,804

33,804

Increase (Decrease) in Accrued Expenses

-19,742

-40,431

Increase (Decrease) in Other Payables

1

-15,516

Increase (Decrease) in Receipts in Advance

15,400

28,922

Increase (Decrease) in Other Current Liabilities

-550

267

Increase (Decrease) in Accrued Pension Liabilities

12,623

15,017

Net Cash Provided by (Used in) Operating Activities

-947

-23,816

Cash Flows from Investing Activities

 

 

Purchase of Property, Plant and Equipment

-208,963

-117,886

Proceeds from Disposal of Property, Plant and Equipment

0

1,071

Decrease (Increase) in Refundable Deposits

48

101

Increase in Deferred Charges

-366

-3,266

Decrease (Increase) in Restricted Assets

-28,740

0

Net Cash Provided by (Used in) Investing Activities

-238,021

-119,980

Cash Flows from Financing Activities

 

 

Increase (Decrease) in Short-term Loans

-180,185

4,588

Increase (Decrease) in Short-term Notes and Bills Payable

-10,041

-89,951

Proceeds from Long-term Debt

2,300,000

17,200

Repayment of Long-term Debt

-2,032,800

0

Increase (Decrease) in Guarantee Deposits Received

-270

-20

Net Cash Provided by (Used in) Financing Activities

76,704

-68,183

Net Increase (Decrease) in Cash and Cash Equivalents

-162,264

-211,979

Cash and Cash Equivalents, Beginning of year

213,809

347,974

Cash and Cash Equivalents, End of year

51,545

135,995

Supplemental Cash Flow Information

 

 

Interest Paid

9,028

6,238

Interest Paid- Excluding Capitalized Interest

9,028

6,238

Income Tax Paid

33,804

0

Non-cash Investing and Financing Activities

 

 

Current Portion of Long-term Liabilities

155,600

45,600

Conversion of Bonds to Common Stock

0

16,700

Investing Activities Affecting Both Cash and Non-cash Items

 

 

Cash Paid for Acquisition of Property, Plant and Equipment

 

 

Cash Paid for Acquisition of Property, Plant and Equipment

208,963

117,886

Other Supplemental Information

 

 

Cash dividends from equity-method investees

0

0

Cash dividends distributed from equity-method investees

0

5,848

Beginning balance of receivables

0

0

Ending balance of receivables (included in other receivables)

0

-5,848

Cash received

0

0

Cash paid for cash dividends

0

0

Cash dividends distribution

201,000

231,461

Beginning balance of payables

0

0

Ending balance of payables (included in other payables)

-201,000

-231,461

Cash paid

0

0

 

 

Bankers

 

Subject declined to disclose its bank details; from other source we cannot 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. Luo

Department

Sales Department

 

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.29

UK Pound

1

Rs.86.44

Euro

1

Rs.68.95

 

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%)

 

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.