MIRA INFORM REPORT

 

 

Report Date :

06.02.2013

 

IDENTIFICATION DETAILS

 

Name :

PAN ASIA CHEMICAL CORPORATION

 

 

Registered Office :

11F, No.50, Sec.1, Hsin Sheng South Road, Taipei

 

 

Country :

Taiwan

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

06.04.1982

 

 

Com. Reg. No.:

05712099

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacture and trade of non-ionic surfactants, etc

 

 

No. of Employees :

About 100 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

(31.03.2011)

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


Contact Points

 

Company Name:

Pan Asia Chemical Corporation

Supplied Name:

PAN ASIA CHEMICAL CORP

Trading Address:

11F, No.50, Sec.1, Hsin Sheng South Road, Taipei, Taiwan, R.O.C.

Supplied Address:

WORLD TRADE BUILDING (11TH FLOOR) NO. 50, SEC 1, HSIN SHENG SOUTH RD TAIPEI TAIW

Telephone Number:

+886-2-2351-1212

Fax Number:

+886-2-2396-2946

E-mail:

paccsale@pacc.com.tw

Notes:

The correct address is as above.

 

Credit Summary

 

Credit Opinion:

Business connections are permissible.

 

Company Identification Details

 

Registered Name:

Pan Asia Chemical Corporation

Registered Address:

11F, No.50, Sec.1, Hsin Sheng South Road, Taipei, Taiwan, R.O.C.

Date of Foundation:

1982-4-6

Registration Number:

05712099

Registry:

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

Registered Capital:

NTD 2,500,000,000 (USD 83,500,000)

(As of 2013.1, 1 NTD = 0.0334 USD)

Paid-up Capital:

NTD 2,222,464,920 (USD 74,230,328.33)

Legal Representatives:

Guifeng Wang

Legal Form:

Joint Stock Company

Principal Activities:

Manufacture and trade of non-ionic surfactants, etc

Staff:

About 100 Employees

Listed at Stock Exchange:

Yes (Public, TPE: 4707) 

Date of Last Annual Return:

2012-6-22

 

History

Subject was incorporated on 1982-4-6 with registered number 05712099 as Joint Stock Company in Taiwan.

Subject was listed on Taiwan Stock Exchange on 1998-05-20.

 

Awards

Year

Awards

2009

Blue chip importer and exporter

2010

Blue chip importer and exporter

2011

Blue chip importer and exporter

 

Standard of Blue chip importer and exporter

Unit: USD

Year

Amount

2009

15,000,000

2010

20,000,000

2011

22,000,000

 

Shareholders

 

Name

Subscription Shares

Sheng Ren Knitting Factory Co., Ltd. (Translated)

13,313,350

China Man-made Fiber Investment Co., Ltd. (Translated)

11,000,571

Gannan Chen

51,300

Ke Yi Bao Investment Co., Ltd. (Translated)

128,000

Dayin Ye

128,253

 

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

 

Subsidiaries & Branches

Plant

Address

No.8-1, Jingjian Rd., Dashe Shiang, Kaohsiung County 815, Taiwan (R.O.C.)

Telephone Number

+886-7-3511318

Fax Number

+886-7-3510409

 

 

Personnel Information

Core Management

 

Directors

1

Name

Guifeng Wang

Position

Chairman

2

Name

Yongda Liu

Position

Vice Chairman

3

Name

Qingfeng Chen

Position

Director and Manager

Date of Appointment

2005-3-24

4

Name

Changchen Lin

Position

Director

5

Name

Gannan Chen

Position

Director

6

Name

Shiyi Jiang

Position

Supervisor

7

Name

Dayin Ye

Position

Supervisor

8

Name

Changhai Wang

Position

Manager

Date of Appointment

2002-12-31

9

Name

Guoqing Chen

Position

Manager

Date of Appointment

2011-6-20

Personnel Structure

 

Total Employees

About 100 Employees

 

 

Operation Information

Offices & Factories

 

 

Headquarters

Add

11F, No.50, Sec.1, Hsin Sheng South Road, Taipei, Taiwan, R.O.C.

Production Information

 

l         Subject is engaged in manufacturing various non-ionic surfactants, such as Polyethylene Glycol, Polyoxyethylene Alkyl Phenly Ether, Polyoxyethylene Alkyl Amine Ether, Special Nonionic Surfactants, etc.

l         It is introduced that subject has a factory in Kaohsiung County, Taiwan.

 

Purchase Information

 

l         The registered activities of subject:

Business Code

Details

C801020

Manufacture of petrochemical materials

C802090

            Manufacture of Cleaning supplies

D101050

Cogeneration Industry

F212011

Gas station business

F212061

Refueling station business

H701010 

Development and rental of housing and building

ZZ99999

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

 

l         It is introduced that subject purchases raw materials such as ethylene oxide and nonyl phenol from their cooperative company China Man-made Fiber Corporation.

l         Other raw materials are mainly imported from foreign countries.

 

Sales Information

 

l         Subject is engaged in sales of various non-ionic surfactants, such as Polyethylene Glycol, Polyoxyethylene Alkyl Phenly Ether, Polyoxyethylene Alkyl Amine Ether, Special Nonionic Surfactants, etc.

l         Subject’s sales regions include Southeast Asia, Singapore, Australia, Japan, etc and the export proportion is 32%.

l         Subject’s products are applied to medical science, fiber, detergent, pesticides, and metal, rubber, paper and pulp, paint, and cosmetics industries.

l         Subject has their own brand “PANNOX”.

l         Subject obtained the certification of ISO 9001: 2000.

 

Major products sold

1

Polyethylene Glycol

2

Polyoxyethylene Alkyl Phenly Ether

3

Polyoxyethylene Alkyl Amine Ether

4

Polyoxyethylene Alkyl Ether

5

Polyoxyethylene Fatty Acid Ether

6

Polyoxyethylene Sorbitan Fatty Acid Ether

7

Polyoxypropylene Polyoxyethylene Ether

8

Special Nonionic Surfactants

9

Ester for Cosmetic Catalogue

10

Ester for Lubricant Catalogue

11

Polyethylene Gloycol Ester Catalogue

12

Ester for Detergent

13

Spinning oil for polyester yarn

14

Ester for PU products

15

Sorbitan Fatty Acid Ester

 

Import and export right:

Import right

Yes

Export right

Yes

 

Settlements

Purchase

 

Domestic Purchase (Taiwan)

Product

Payment Terms

Proportion

Raw material

COD, CBD, Credit Sales, etc

100%

 

Foreign Purchase

Product

Payment Terms

Proportion

Raw material

CBD, etc

100%

 

Sales

 

Domestic Markets (Taiwan and Mainland, China)

Product

Sales Terms

Proportion

Non-ionic surfactants

COD, CBD, etc

100%

 

Export

Product

Sales Terms

Proportion

Non-ionic surfactants

CBD, etc

100%

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

 

Balance Sheet

                                                                   Unit: NTD/000

Date

2012-9-30

2011-9-30

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

90,279.00

70,877.00

Net notes receivable

39,648.00

51,111.00

net account receivable

214,019.00

255,351.00

Net accounts receivable – related parties

0.00

764.00

Other accounts receivable

14,498.00

42,357.00

Inventory

249,253.00

350,498.00

advance payment

41,799.00

62,509.00

Other Current Assets

18,246.00

5,712.00

Current Assets

667,742.00

839,179.00

Funds and investment

 

 

Available-for-sale financial assets- non current

443,446.00

373,234.00

Financial assets carried at cost

2,040,458.00

2,040,458.00

Long term equity investment by the equity method

1,773,393.00

1,384,734.00

Advance long-term investment

0.00

225,547.00

investment

1,773,393.00

1,610,281.00

Funds and investment

4,257,297.00

4,023,973.00

fixed assets

 

 

cost

 

 

Land

79,177.00

79,177.00

Buildings and constructures

305,576.00

305,576.00

machine equipment

1,239,732.00

1,030,386.00

Transporting equipment

17,454.00

16,896.00

office equipment

10,812.00

10,441.00

Other equipment

218,217.00

394,926.00

appraisal increment

190,954.00

190,954.00

total cost and revaluation

2,061,922.00

2,028,356.00

accumulated depreciation

-329,169.00

-242,846.00

construction in progress and prepayments for equipment

50,986.00

51,906.00

Net fixed assets

1,783,739.00

1,837,416.00

intangible asset

 

 

Other Assets

 

 

guarantee deposit and margin paid

17.00

17.00

deferred expenses

558.00

918.00

Deferred income tax assets –non current

35,913.00

51,179.00

Total other assets

36,488.00

52,114.00

Total assets

6,745,266.00

6,752,682.00

Liabilities and equity

 

 

Liabilities

 

 

Current Liabilities

 

 

Short-term borrowing

1,370,000.00

1,413,000.00

account payable

60,204.00

68,998.00

account payable- related parties

197,721.00

192,708.00

income tax payable

0.00

5,525.00

expense payable

32,730.00

39,244.00

Other payable

9,487.00

1,925.00

A year or an operating cycle of long-term liabilities due within

150,000.00

0.00

Other Current Liabilities

3,022.00

6,788.00

Current Liabilities

1,823,164.00

1,728,188.00

Long term Liabilities

 

 

Long term borrowing

1,020,000.00

1,200,000.00

Long term Liabilities

1,020,000.00

1,200,000.00

preparation

 

 

Land value-added tax preparation

44,888.00

44,888.00

Total preparation

44,888.00

44,888.00

Other Liabilities

 

 

Retirement preparation / accrued pension liabilities

27,832.00

27,047.00

Margin deposit

2,000.00

2,000.00

Total other Liabilities

29,832.00

29,047.00

Total Liabilities

2,917,884.00

3,002,123.00

shareholders’ equity

 

 

capital stock

 

 

Common capital stock

2,222,465.00

2,254,465.00

paid in surplus

 

 

Capital surplus – premium

863,623.00

876,058.00

Capital surplus – treasury stock transactions

28,848.00

19,530.00

Capital surplus – long-term investment

13,739.00

26,675.00

Total capital surplus

906,210.00

922,263.00

retained earnings

 

 

Statutory surplus reserve

87,087.00

78,296.00

Special reserve

5,312.00

144,422.00

No appropriation of retained earnings

404,153.00

232,461.00

Total retained earnings

496,552.00

455,179.00

Total other equity adjustments

 

 

net loss not recognized as pension cost

-3,818.00

0.00

unrealized gains or losses

154,737.00

77,858.00

Unrealized revaluation

146,066.00

146,066.00

treasury stock

-94,830.00

-105,272.00

Total shareholders’ equity and other adjustment

202,155.00

118,652.00

Total shareholders’ equity

3,827,382.00

3,750,559.00

Treasury Stock of held by parent company also as held by subsidiaries (Unit: Shares)

7,271,000.00

7,831,000.00

New Issued (under stockholders' equity section) shares Equivalents (Unit: Shares)

0.00

0.00

 

Profit and Loss Account

                                                                    Unit: NTD/000

Date

2012-1-1

To 2012-9-30

2011-1-1

To 2011-9-30

Sales revenue

1,852,320.00

2,320,595.00

sales return

68.00

0.00

sales allowance

31.00

0.00

Net sales

1,852,221.00

2,320,595.00

Total operating income

1,852,221.00

2,320,595.00

Total operating cost

1,817,691.00

2,176,027.00

Gross profit (loss)

34,530.00

144,568.00

distribution expense

35,420.00

38,379.00

Administrative and general expenses

23,310.00

35,210.00

Operating expenses

58,730.00

73,589.00

Net operating income (net loss)

-24,200.00

70,979.00

Operating income and profit

 

 

interest income

49.00

41.00

Investment income

134,486.00

64,273.00

investment income recognized under equity method

133,936.00

63,067.00

dividend revenue

550.00

1,206.00

profit on exchange

0.00

9,597.00

Evaluation of financial assets

0.00

0.00

miscellaneous income

3,597.00

1,865.00

Operating income and profit

138,132.00

75,776.00

Operating expenses and losses

 

 

interest charge

33,031.00

23,993.00

Disposal of fixed assets loss

0.00

149.00

exchange loss

4,312.00

0.00

impairment loss

0.00

5,273.00

Miscellaneous cost

6.00

81.00

Operating expenses and losses

37,349.00

29,496.00

continue the business unit net profit before tax (net loss)

76,583.00

117,259.00

Income tax expense (interest)

3,871.00

-1,911.00

Continue the business unit net profit (net loss)

72,712.00

119,170.00

net profit (net loss)

72,712.00

119,170.00

Basic earnings per share

0.34

0.54

Dilute earning per share

0.34

0.54

 

 

Bankers

 

Name

Taichung Bank

 

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

 

Interview Date

2013-2-5

Name

Pauline

Department

Sales Department

E-mail

pauline-yen@pacc.com.tw

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.29

UK Pound

1

Rs.83.96

Euro

1

Rs.71.88

 

 

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.