|
Report Date : |
06.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
DEUCHEM CO., LTD. |
|
|
|
|
Registered Office : |
92, Kuang-Fu North Road, Hsinchu Industrial
Park, Hukou, Hsinchu, |
|
|
|
|
Country : |
Taiwan |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
04.02.1981 |
|
|
|
|
Com. Reg. No.: |
05027751 |
|
|
|
|
Legal Form : |
Joint Stock Company |
|
|
|
|
Line of Business : |
Manufacturing and sales of chemicals, etc |
|
|
|
|
No. of Employees : |
About 125 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 – 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 - 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
|
Company Name: |
|
|
Supplied Name: |
|
|
Trading Address: |
92, Kuang-Fu North Road, Hsinchu Industrial Park, Hukou, Hsinchu,
Taiwan, R.O.C. |
|
Supplied
Address: |
|
|
Telephone
Number: |
+886-3-598-4035 |
|
Fax Number: |
Notes: The exact name and address are as
above.
|
Registered Name: |
DEUCHEM CO.,
LTD. |
|
Registered
Address: |
92, Kuang-Fu
North Road, Hsinchu Industrial Park, Hukou, Hsinchu, Taiwan, R.O.C. |
|
Date of
Foundation: |
1981-4-2 |
|
Registration
Number: |
05027751 |
|
Registry: |
MOEA Central
Office |
|
Registered
Capital: |
(As of 2012.11,
1 NTD = 0.0339 USD) |
|
Paid-up Capital: |
NTD 240,000,000
(USD ) |
|
Legal
Representatives: |
Charles Gregory
McClatchy |
|
Legal Form: |
|
|
Principal
Activities: |
|
|
Staff: |
|
|
Listed at Stock Exchange: |
|
|
Date of Last Annual Return: |
Subject was incorporated
on 1981-4-2 with registered number 05027751
as Joint Stock Company in
Taiwan.
|
Name |
Subscription Shares |
|
Elementis Plc |
24,000,000 |
The information above is that of subject’s major shareholders.
Parent Company
|
Name: |
Elementis Plc |
|
Address: |
10 Albemarle Street, London W1S 4HH, UK |
|
Telephone Number |
+44-20-7408-9300 |
|
Fax Number |
+44-20-7493-2194 |
|
Listed at Stock Exchange |
Yes; Stock
Symbol: ELM |
|
Email: |
Related Company
|
Name: |
Deuchem (Shanghai) Chemical Co., Ltd |
|
Address: |
99 Lian Yang Road Song Jiang Industrial Zone Shanghai |
|
Telephone Number |
+86-21-5774-0348 |
|
Fax Number |
+86-21-5774-7483 |
Core Management
Directors
|
1 |
|
|
Name |
Charles Gregory McClatchy |
|
Position |
Board Chairman |
|
2 |
|
|
Name |
Brian Geoffrey Taylorson |
|
Position |
Director |
|
3 |
|
|
Name |
Liyun Su |
|
Position |
Director |
|
4 |
|
|
Name |
Shiqin Zhang |
|
Position |
Director |
|
5 |
|
|
Name |
Joseph Michael Budd |
|
Position |
Director |
|
6 |
|
|
Name |
Walker Mayo Allen III |
|
Position |
Supervisor |
Personnel
Structure
|
Total Employees |
About 125
Employees |
Offices &
Factories
|
|
Headquarters |
|
Add |
92, Kuang-Fu North Road, Hsinchu Industrial
Park, Hukou, Hsinchu, Taiwan, R.O.C. |
Production
Information
Subject is engaged in manufacturing of chemicals, etc.
Subject has factories in Hsinchu, Taiwan and shanghai city, China for
production.
Purchase
Information
The registered activities of subject:
|
Business Code |
Details |
|
C802120 |
Manufacturing of industrial additive |
|
C802150 |
Manufacturing of dye and pigment |
|
C802030 |
Manufacturing of coating and painting |
|
F113010 |
Wholesale of machinery |
|
F113050 |
Wholesale of office equipment |
|
F107020 |
Wholesale of dye and pigment |
|
C801040 |
Manufacturing of synthetic resin |
|
I301010 |
Software service |
|
I301020 |
Data processing service |
|
I301030 |
Electronic information service |
|
ZZ99999 |
Besides licensed business, all other
business items those are not banned or restricted. |
The components and raw materials for production are purchased from both
home and abroad.
Subject is engaged in sales of chemicals,
etc.
Subject’s sales regions include Asia, Europe and America, etc.
Subject’s major customers include painting manufacturer, coating
manufacturer, ink manufacturer, and leather manufacturer, etc.
Major products sold
|
Type |
Product |
|
Industrial Additive |
Anti-settling agent Thickening agent Dispersing agent Antifoaming agents Flatting agent Adhesion promoter Powder coating additives |
|
Synthetic Resin |
Hydroxy acrylic resin Thermoplastic acrylic resin Hydroxy polyester resin Silicone modified polyester resin UV-curable oligomers |
Import and export right:
|
Import right |
Yes |
|
Export right |
Yes |
Domestic Purchase
|
Payment
Terms |
Proportion |
|
|
Raw
materials |
COD,
CBD, etc |
100% |
Foreign Purchase
|
Payment
Terms |
Proportion |
|
|
Raw
materials |
CBD,
etc |
Sales
Domestic Markets
|
Sales
Terms |
Proportion |
|
|
Chemicals |
COD,
CBD, Credit Sales, etc |
100% |
Export
|
Sales
Terms |
Proportion |
|
|
Chemicals |
CBD,
etc |
100% |
Notes: Subject’s
settlement for export is generally in USD
Subject has no obligations to disclose its
financial statements to the third party according to the relevant policy in
Taiwan and the only source from which we can obtain the information is the
subject itself.
Subject’s relevant staff Ms. Wu declined to
disclose its financials citing the grounds of company’s confidentiality; we
supplied the financials of subject’s parent company Elementis Plc for reference.
Consolidated Balance Sheet
Unit: USD/000
Consolidated Profit and Loss Account
Unit: USD/000
|
|
2011 |
2010 |
|
Revenue |
760.5 |
697.4 |
|
Cost of sales |
(473.6) |
(445.0) |
|
Gross profit |
286.9 |
252.4 |
|
Distribution
costs |
(82.7) |
(82.8) |
|
Administrative
expenses |
(39.6) |
(67.3) |
|
Operating profit |
164.6 |
102.3 |
|
Finance income |
2.6 |
0.4 |
|
Finance costs |
(5.2) |
(6.7) |
|
Profit before
income tax |
162.0 |
96.0 |
|
Tax |
(37.9) |
(21.9) |
|
Profit for the
year |
124.1 |
74.1 |
|
Attributable to: |
|
|
|
Equity holders
of the parent |
124.1 |
|
|
Non-controlling
interests |
-- |
-- |
|
|
124.1 |
74.1 |
|
Earnings per
share |
|
|
|
Basic (cents) |
27.8 |
16.7 |
|
Diluted (cents) |
27.2 |
16.5 |
Consolidated Cash Flows
|
|
2011 |
2010 |
|
Operating
activities: |
|
|
|
Profit for the
year |
124.1 |
74.1 |
|
Adjustments for: |
|
|
|
Finance income |
(2.6) |
(0.4) |
|
Finance costs |
5.1 |
6.7 |
|
Tax charge |
37.9 |
21.9 |
|
Depreciation and
amortisation |
19.9 |
21.4 |
|
Decrease in
provisions |
(3.2) |
(0.7) |
|
Pension
contributions net of current service cost |
(22.0) |
(18.4) |
|
Share based
payments |
2.6 |
2.0 |
|
Exceptional
items |
(27.5) |
– |
|
Cash flow in respect
of exceptional items |
31.8 |
(40.7) |
|
Operating cash
flow before movement in working capital |
66.1 |
65.9 |
|
(Increase)/decrease
in inventories |
(17.8) |
1.7 |
|
Decrease/(increase)
in trade and other receivables |
12.8 |
(7.7) |
|
(Decrease)/increase
in trade and other payables |
(4.2) |
7.9 |
|
Cash generated
by operations |
56.9 |
67.8 |
|
Income taxes
paid |
(8.0) |
(5.6) |
|
Interest paid |
(4.2) |
(3.9) |
|
Net cash flow
from operating activities |
144.7 |
58.3 |
|
Investing
activities: |
|
|
|
Interest
received |
0.9 |
0.7 |
|
Disposal of
property, plant and equipment |
2.1 |
2.1 |
|
Purchase of
property, plant and equipment |
(22.5) |
(15.7) |
|
Purchase of
business |
-- |
1.1 |
|
Acquisition of
intangible assets |
(0.4) |
(0.4) |
|
Net cash flow
from investing activities |
(19.9) |
(12.2) |
|
Financing
activities: |
|
|
|
Issue of shares
by the Company and the ESOT |
3.9 |
0.6 |
|
Dividends paid |
(21.9) |
(20.0) |
|
Receipt of
unclaimed dividends |
-- |
0.8 |
|
Purchase of
shares by the ESOT |
(2.2) |
(2.4) |
|
Decrease in
borrowings |
(97.9) |
(15.7) |
|
Net cash used in
financing activities |
(118.1) |
(36.7) |
|
Net increase in
cash and cash equivalents |
6.7 |
9.4 |
|
Cash and cash
equivalents at 1 January |
40.8 |
28.8 |
|
Foreign exchange
on cash and cash equivalents |
0.7 |
2.6 |
|
Cash and cash
equivalents at 31 December |
48.2 |
40.8 |
Subject declined to disclose its bank details;
from other source we cannot 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.
|
Name |
Ms. Wu |
|
Department |
Sales Department |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.29 |
|
|
1 |
Rs.83.96 |
|
Euro |
1 |
Rs.71.88 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.