|
Report Date : |
08.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
CHUNG HWA CHEMICAL INDUSTRIAL WORKS, LTD. |
|
|
|
|
Registered Office : |
No.30, Ching Chien 5th Rd, Kuan Yin
Industrial Dist, Taoyuan Conuty 328 |
|
|
|
|
Country : |
Taiwan |
|
|
|
|
Financials (as on) : |
30.09.2012 |
|
|
|
|
Date of Incorporation : |
30.10.1956 |
|
|
|
|
Com. Reg. No.: |
03558206 |
|
|
|
|
Legal Form : |
Joint Stock Company |
|
|
|
|
Line of Business : |
Manufacture and sales of chemicals and etc. |
|
|
|
|
No. of Employees : |
About 200 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: |
Chung Hwa Chemical Ind Works Ltd |
|
Trading Address: |
No.30, Ching Chien 5th
Rd, Kuan Yin Industrial Dist, Taoyuan Conuty 328, Taiwan |
|
Supplied Address: |
No 30 Ching Chien 5th Rod Kuan Yin
Industrial District Kuan Yin Hsiang Taoyuan Hsien Taiwan 328 |
|
Telephone Number: |
+886-3-483-0504 |
|
Fax Number: |
+886-3-483-3429 |
|
E-mail: |
Notes: The exact name and address are as
above.
Subject was incorporated
on 1956-10-30 with registered number 03558206
as Joint Stock Company in
Taiwan.
Subject listed on Taiwan Stock Exchange on 2000-09-11.
|
Name |
Subscription Shares |
|
Wenyuan Gan |
2,863,314 |
| Wenzhong
Gan |
4,883,788 |
|
Yiling Feng |
436,291 |
|
Huaien Sheng |
98,988 |
|
Hangao Gan |
902,541 |
|
Tixiang Wei |
679 |
|
Xianxiong Chen |
1,248,870 |
|
Wenli Gan |
6,076,882 |
The information above is that of subject’s major shareholders.
Related Companies
|
Name |
Jiangsu Honest Fine Chemical Co. Ltd |
|
Address |
Binjiang Fine Chemical Engineering Industrial Park, Beixin Town,
Qidong City, Jiangsu Province, China |
|
Tel |
+86-513-8388-7696 |
|
Fax |
+86-513-8388-6398 |
|
Major Products |
Nytration, sulfonation and etc. |
Factory
|
Name |
Changhua Factory |
|
Address |
No.6-3,Gongdong 3rd Rd, Hemei Township, Changhua County
508, Taiwan (R.O.C) |
|
Telephone Number |
+886-4-797-8200 |
|
Registration Number |
+886-4-797-8201 |
Core Management
Directors
|
1 |
|
|
Name |
Wenyuan Gan |
|
Position |
Board Chairman |
|
Date of Appointment |
1999-4-9 |
|
2 |
|
|
Name |
Wenzhong Gan |
|
Position |
|
|
3 |
|
|
Name |
Yiling Feng |
|
Position |
|
|
4 |
|
|
Name |
Huaien Sheng |
|
Position |
|
|
5 |
|
|
Name |
Hangao Gan |
|
Position |
|
|
6 |
|
|
Name |
Tixiang Wei |
|
Position |
|
|
7 |
|
|
Name |
Xianxiong Chen |
|
Position |
Director |
|
8 |
|
|
Name |
Ruian Cai |
|
Position |
|
|
9 |
|
|
Name |
Wenli Gan |
|
Position |
Supervisor |
|
10 |
|
|
Name |
Shuwan Tang |
|
Position |
Supervisor |
Personnel
Structure
|
Total Employees |
About 200 Employees |
Offices &
Factories
|
|
Headquarters |
|
Add |
No.30, Ching Chien 5th Rd, Kuan Yin Industrial Dist, Taoyuan Conuty
328, Taiwan |
Production
Information
Subject is a manufacturer of chemicals and etc.
Subject has two factories in Taoyuan County and Changhua County, Taiwan
for production.
It is introduced that the subject’s production capacity of sulfuric acid
is over 400 tons per month.
Purchase
Information
The registered activities of subject:
|
Business Code |
Details |
|
C801010 |
Basic chemical industry |
|
C801990 |
Manufacture of other chemical materials |
|
C802080 |
Manufacture of environment medicine |
|
C802200 |
Manufacture of coating, painting, dye and oil paint. |
|
C802990 |
Manufacture of other chemicals |
|
F401010 |
International trade |
|
ZZ99999 |
Besides licensed business, all other business items those are not
banned or restricted. |
It is introduced that the subject purchases raw materials in domestic
market.
The subject is engaged in manufacturing of
chemicals and etc.
It is introduced that the subject’s selling territory is mainly in the
Taiwan domestic market.
Subject’s products are used for chemical manufacturing, petroleum
industry, electrochemical product, specialty chemical and etc.
It is introduced that subject’s minimal quantity is 80 barrels (about
250 Kg/barrel).
Major products
|
Type |
Product |
Application |
|
Inorganic chemicals |
Chemical manufacturing, petroleum industry |
|
|
Dilute Sulfuric Acid |
Chemical manufacturing |
|
|
Oleum |
Electrochemical product, speciality chemical |
|
|
Chlorosulfonic Acid |
Organically synthesized chlorosulfonic agent |
|
|
Aluminum Sulfate |
Water purifying, water processing |
|
|
Poly Aluminum Chloride |
Water purifying, water processing |
|
|
Sodium Silicate |
Detergent, adhesive, casting industry, kiln industry, |
|
|
Fine Chemicals |
o/p- Toluenesulfonamide |
Fluorenscent pigment、Melamine plasticizer、nail polish
resin、Wood furbishing agent。 |
|
p-toluenesulfonyl chloride |
Dye、Pharmacceutical,agriculture chemical、surfactant and
resinsynthesis |
|
|
benzoic acid |
Resin synthesis、dye stuff、PVC stabilizer |
|
|
waterborne emulsion monomer |
The waterborne monomers of many Kinds of resin, polyester, alkyd, etc. |
|
|
Bisphenol-S |
PC, epoxy, polyester resins; Leuco dye developer, thermo-resistance
agent |
|
|
SS-diol (ES-solid) |
Waterborne resin monomer(sodium sulfonic type), surfactant monomer,
CD-PET monomer |
|
|
5-(sodiosulfo) |
Waterborne resin monomer(sodium sulfonic type), surfactant monomer,
CD-PET monomer, Antistatic agent, master batch Additives(for PA6/GF), color
toner, color fixer |
|
|
Chemical Trading Products |
Phosphoric Acid |
Industrial use: plating body polish, steel anticorrosive organic
synthesis, catalyst in plastic industry. Medicine industry: to produce
glycerol sodium polyacrylate, iron and PH modifier. Food industry: sour
additive, Ph modifier, cane sugar refining. |
|
Polyphosphoric Acid |
Metal finishing, water processing, textile industry, beverage industry |
|
|
Sodium Tripolyphosphate |
Detergent, china industry, quality improvement agent, metal finishing,
water processing, cement industry, paper manufacture industry. |
|
|
Tetrasodium Pyrophosphate |
Food processing, water processing, detergent, metal finishing, silica
gel industry, fire retardant. |
|
|
Sodium |
Plating industry, food processing, metal finishing. |
|
|
Sodium Chlorite |
Bleach and sterilization, detergent |
|
|
Sodium Hexametaphosphate |
Water processing, detergent, food processing. |
|
|
Tetrapotassium Pyrophosphate |
Detergent, plating industry, food processing |
|
|
Sodium Trimetaphosphate |
Food processing |
Import and export right:
|
Import right |
Yes |
|
Export right |
Yes |
Domestic Purchase (Taiwan)
|
Payment Terms |
Proportion |
|
|
Raw materials |
COD, CBD, etc. |
100% |
Foreign Purchase
The subject has
little import.
Sales
Domestic Markets (Taiwan)
|
Sales Terms |
Proportion |
|
|
Chemicals |
CBD, etc. |
100% |
Export
The subject has
little export.
|
|
2012-9-30 |
2011-9-30 |
|
Assets |
|
|
|
Current Assets |
|
|
|
Cash and cash equivalents |
38,598 |
44,070 |
|
Notes receivable - net |
262,143 |
245,082 |
|
Accounts receivable - net |
414,032 |
363,978 |
|
Inventories |
297,221 |
263,336 |
|
Other prepayments |
24,327 |
38,009 |
|
Other current assets |
8,183 |
5,505 |
|
Current assets |
1,044,504 |
959,980 |
|
Funds and Investments |
|
|
|
Equity investments under equity method |
33,084 |
75,880 |
|
Investments |
33,084 |
75,880 |
|
Funds and long-term investments |
33,084 |
75,880 |
|
Fixed Assets |
|
|
|
Cost |
|
|
|
Land |
293,746 |
114,970 |
|
Buildings and structures |
198,832 |
188,833 |
|
Machinery and equipment |
826,502 |
741,510 |
|
Transportation equipment |
45,188 |
40,060 |
|
Office equipment |
49,766 |
50,181 |
|
Other facilities |
68,586 |
61,381 |
|
Fixed assets cost |
1,482,620 |
1,196,935 |
|
Accumulated depreciation |
-699,453 |
-654,523 |
|
Construction in process and prepayment for equipments |
55,660 |
68,226 |
|
Fixed assets |
838,827 |
610,638 |
|
Intangible Assets |
|
|
|
Deferred pension cost |
0 |
1,037 |
|
Intangible assets |
0 |
1,037 |
|
Other Assets |
|
|
|
Rental assets |
26,817 |
63,366 |
|
Idled assets |
24,875 |
204,106 |
|
Other assets - other |
14,439 |
18,218 |
|
Other assets |
66,131 |
285,690 |
|
Assets |
1,982,546 |
1,933,225 |
|
Liabilities and Stockholders' Equity |
|
|
|
Liabilities |
|
|
|
Current Liabilities |
|
|
|
Short-term borrowings |
280,000 |
294,500 |
|
Short-term notes and bills payable |
179,861 |
239,679 |
|
Notes payable |
13,310 |
16,435 |
|
Accounts payable |
154,793 |
114,086 |
|
Income tax payable |
11,247 |
5,862 |
|
Accrued expenses |
79,191 |
71,227 |
|
Other payables |
24,248 |
26,972 |
|
Other current liabilities |
2,728 |
659 |
|
Current liabilities |
745,378 |
769,420 |
|
Long term Liabilities |
|
|
|
Reserves |
|
|
|
Reserve for land revaluation increment tax |
10,202 |
10,202 |
|
Reserves |
10,202 |
10,202 |
|
Other Liabilities |
|
|
|
Pension reserve / accrued pension liability |
9,193 |
9,323 |
|
Guarantee deposits received |
270 |
270 |
|
Deferred income tax liabilities |
811 |
1,088 |
|
Other liabilities |
10,274 |
10,681 |
|
Liabilities |
765,854 |
790,303 |
|
Stockholders' Equity |
|
|
|
Capital |
|
|
|
Common stock |
935,000 |
860,000 |
|
Capital Surplus |
|
|
|
Capital surplus - additional paid-in capital |
316 |
316 |
|
Capital surplus - long-term equity investments |
4,248 |
4,248 |
|
Capital surplus - premium from merger |
9,009 |
9,009 |
|
Capital surplus |
13,573 |
13,573 |
|
Retained Earnings |
|
|
|
Legal reserve |
123,207 |
110,838 |
|
Unappropriated retained earnings |
137,588 |
148,822 |
|
Retained earnings |
260,795 |
259,660 |
|
Stockholders' Equity and Other adjustment |
|
|
|
Cumulative translation adjustments |
10,105 |
11,631 |
|
Net loss not recognized as pension cost |
-2,781 |
-1,942 |
|
Equity adjustments |
7,324 |
9,689 |
|
Stockholders- equity |
(USD 41,124,189.60) |
(USD 38,630,763.60) |
|
Number of treasury stock acquired by the company and subsidiaries
(unit: share) |
0 |
0 |
|
|
0 |
0 |
(As of 2013.02, 1 NTD = 0.0338 USD)
Unit: NTD/000
|
|
2012-1-1~2012-9-30 |
2011-1-1~2011-9-30 |
|
Sales |
(USD 55,676,137.40) |
(USD 52,632,886.80) |
|
Sales returns |
389 |
1,041 |
|
Sales discounts and allowances |
8,840 |
16,993 |
|
Sales |
1,637,994 |
1,539,152 |
|
Operating income |
1,637,994 |
1,539,152 |
|
Operating costs |
1,393,468 |
1,290,597 |
|
Gross profit (loss) from operations |
244,526 |
248,555 |
|
Selling expense |
92,657 |
87,982 |
|
General and administrative expenses |
24,453 |
24,261 |
|
Research and development expenses |
13,552 |
16,246 |
|
Operating expenses |
130,662 |
128,489 |
|
Operating income (loss) |
113,864 |
120,066 |
|
Non-Operating Income |
|
|
|
Interest income |
8 |
6 |
|
Gains on disposal of fixed assets |
14 |
493 |
|
Foreign exchange gains |
1,236 |
1,324 |
|
Rent income |
1,001 |
1,441 |
|
Miscellaneous income |
3,670 |
9,723 |
|
Non-operating revenues and gains |
5,929 |
12,987 |
|
Non-Operating Expenses |
|
|
|
Interest expense |
3,663 |
3,131 |
|
Losses from long-term equity investments under the equity method |
4,622 |
7,034 |
|
Investment loss |
4,622 |
7,034 |
|
Loss on disposal of fixed assets |
506 |
2,396 |
|
Miscellaneous disbursements |
8,972 |
10,458 |
|
Non-operating expenses and losses |
17,763 |
23,019 |
|
Income from continuing operations before income tax |
102,030 |
110,034 |
|
Income tax expense (benefit) |
20,400 |
17,850 |
|
Income from continuing operations |
81,630 |
92,184 |
|
Net income (loss) |
(USD 2,759,094) |
(USD 3,115,819.20) |
|
Primary Earnings per Share |
|
|
|
Primary earnings per share |
0.87 |
0.99 |
|
Diluted earnings per share |
|
|
(As of 2013.02, 1 NTD = 0.0338 USD)
Unit: NTD/000
|
|
2012 |
2011 |
|
Cash Flows from Operating Activities - Indirect Method |
|
|
|
Net Income (Loss) |
81,630 |
92,184 |
|
Adjustments to Reconcile Net Income to Net Cash Provided by (Used in)
Operating Activities |
|
|
|
Depreciation Expense |
87,209 |
63,051 |
|
Amortization Expense |
885 |
1,126 |
|
Provision (Reversal of Provision) for Bad Debts Losses |
10,338 |
2,750 |
|
Loss (Gain) on Decline (Recovery) in Market Value, Scrap and
Obsolescence of Inventories |
(957) |
(1,329) |
|
Investment Loss (Income) Recognized under Equity Method |
4,622 |
7,034 |
|
Loss (Gain) on Disposal of Property, Plan and Equipment |
492 |
1,903 |
|
Changes in Operating Assets and Liabilities |
|
|
|
Decrease (Increase) in Notes Receivable |
26,148 |
(16,168) |
|
Decrease (Increase) in Accounts Receivable |
(61,112) |
(29,960) |
|
Decrease (Increase) in Inventories |
(26,648) |
(28,548) |
|
Decrease (Increase) in Other Prepayments |
130 |
(11,722) |
|
Decrease (Increase) in Other Current Assets |
429 |
(1,427) |
|
Decrease (Increase) in Deferred Tax Assets |
(1,495) |
548 |
|
Decrease (Increase) in Other Operating Assets |
906 |
(1,291) |
|
Increase (Decrease) in Notes Payable |
3,912 |
(9,391) |
|
Increase (Decrease) in Accounts Payable |
9,445 |
5,752 |
|
Increase (Decrease) in Income Tax Payable |
(1,571) |
(18,254) |
|
Increase (Decrease) in Accrued Expenses |
2,036 |
(3,590) |
|
Increase (Decrease) in Other Payables |
258 |
574 |
|
Increase (Decrease) in Other Current Liabilities |
322 |
(5,331) |
|
Increase (Decrease) in Accrued Pension Liabilities |
(141) |
(645) |
|
Net Cash Provided by (Used in) Operating Activities |
136,838 |
47,266 |
|
Cash Flows from Investing Activities |
|
|
|
Purchase of Property, Plant and Equipment |
(127,352) |
(129,253) |
|
Proceeds from Disposal of Property, Plant and Equipment |
76,888 |
2,967 |
|
Decrease (Increase) in Refundable Deposits |
8,538 |
3,679 |
|
Net Cash Provided by (Used in) Investing Activities |
(41,926) |
(122,607) |
|
Cash Flows from Financing Activities |
|
|
|
Increase (Decrease) in Short-term Loans |
(51,000) |
55,500 |
|
Increase (Decrease) in Short-term Notes and Bills Payable |
(9,990) |
59,884 |
|
Increase (Decrease) in Guarantee Deposits Received |
(1,203) |
0 |
|
Cash Dividends Paid |
(37,000) |
(35,000) |
|
Net Cash Provided by (Used in) Financing Activities |
(99,193) |
80,384 |
|
Net Increase (Decrease) in Cash and Cash Equivalents |
(4,281) |
5,043 |
|
Cash and Cash Equivalents, Beginning of year |
42,879 |
39,027 |
|
Cash and Cash Equivalents, End of year |
38,598 |
44,070 |
|
Supplemental Cash Flow Information |
|
|
|
Interest Paid- Excluding Capitalized Interest |
3,647 |
3,563 |
|
Income Tax Paid |
23,466 |
35,556 |
|
Non-cash Investing and Financing Activities |
|
|
|
Cumulative Translation Adjustments |
(845) |
4,072 |
|
Investing Activities Affecting Both Cash and Non-cash Items |
|
|
|
Cash Paid for Acquisition of Property, Plant and Equipment |
|
|
|
Increase in Property, Plant and Equipment |
112,932 |
118,733 |
|
Increase (Decrease) in Payable for Equipment Purchased |
14,420 |
10,520 |
|
Cash Paid for Acquisition of Property, Plant and Equipment |
127,352 |
129,253 |
Mortgage
No chattel mortgage record of subject has been found within the recent 3
months.
Lawsuit
|
2006,Taoxiao,263 |
|
|
Date of Trial: |
2006-4-6 |
|
Reason: |
|
Name |
Ms. Chen |
|
Department |
Sales Department |
|
E-mail |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.14 |
|
|
1 |
Rs.83.26 |
|
Euro |
1 |
Rs.71.93 |
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.