|
Report Date : |
27.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
T.N.C. INDUSTRIAL CO., LTD. |
|
|
|
|
Registered Office : |
19fl., No.1071, Chung Cheng Road, Taoyuan City, Taoyuan County 330 |
|
|
|
|
Country : |
Taiwan |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
30.06.1954 |
|
|
|
|
Com. Reg. No.: |
38033305 |
|
|
|
|
Legal Form : |
Joint Stock Company |
|
|
|
|
Line of Business : |
Manufacture and trade of chemical products and the related products. |
|
|
|
|
No. of Employees : |
About 200 Employees |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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. 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 1.8%, due
primarily to a 13.1% year-on-year decline in exports. In 2010 GDP grew 10.7%,
as exports returned to the level of previous years, and in 2011, grew 4.0%. In
2012, however, growth fell to 1.3%, 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 except for the landmark Economic
Cooperation Framework Agreement (ECFA) signed with China in June 2010, so far
Taiwan has been excluded from this greater economic integration in part because
of its diplomatic status. Negotiations continue on such follow-on components of
ECFA regarding trade in goods and services. The MA administration has said that
the ECFA will serve as a stepping stone toward trade pacts with other key trade
partners, which Taiwan subsequently launched with Singapore and New Zealand.
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 11.2% of the island's
total population as of 2012. The island runs a large trade surplus largely
because of its surplus with China, and its foreign reserves are the world's
fifth largest, behind China, Japan, Saudi Arabia, and Russia. In 2006 China
overtook 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. In August 2012, Taiwan Central Bank signed a memorandum of
understanding on cross-Strait currency settlement with its Chinese counterpart.
The MOU allows for the direct settlement of Chinese RMB and the New Taiwan
dollar across the Strait, which could help develop Taiwan into a local RMB hub.
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: |
19fl., No.1071, Chung Cheng Road, Taoyuan
City, Taoyuan County 330, Taiwan, R.O.C. |
|
Supplied Address: |
|
|
Telephone Number: |
+886-3-3566289 |
|
Fax Number: |
|
|
E-mail: |
Notes:
The exact name is as above.
The supplied address is incomplete, and the exact address is as above.
|
Credit Opinion: |
Subject was incorporated on
Subject was listed
on Taiwan Stock Exchange on
|
Subscription Shares |
|
|
Hongxin Lin |
5,779,981 |
|
Lixing Investment Co., Ltd |
4,000,961 |
|
Yuchuan Lin |
3,511,412 |
|
Fumei Qiu Lin |
1,270,955 |
|
Heqing Wang
|
1,110,009 |
|
Nian Wu |
671,811 |
|
Zhengyi Xu |
622,101 |
|
Yiqin Lin |
2,128,051 |
|
Juanjuan Lin |
1,226,932 |
|
Guoyan Ye |
150,141 |
The information
above is that of subject’s major shareholders.
|
Address |
29-35, Kengkou Village,
Xuzhu Town, Taoyuan County, Taiwan |
Related Companies
|
1 |
|
|
Name |
China
Nitrocellulose Company |
|
Registered
Address |
Hong Kong |
|
2 |
|
|
Name |
Xinxiang TNC
Chemical Ltd. |
|
Registered
Address |
Xinxiang, China |
|
2 |
|
|
Name |
Korea CNC Ltd. |
|
Registered
Address |
Korea |
Core
Management
Directors
|
1 |
|
|
Name |
Hongxin Lin |
|
Position |
Board of
Chairman |
|
2 |
|
|
Name |
Zongyi Wu |
|
Position |
Vice Chairman |
|
3 |
|
|
Name |
Yuchuan Lin |
|
Position |
Director |
|
4 |
|
|
Name |
Fumei Qiu Lin |
|
Position |
Director |
|
5 |
|
|
Name |
Heqing Wang |
|
Position |
Director |
|
6 |
|
|
Name |
Nian Wu |
|
Position |
Director |
|
7 |
|
|
Name |
Zhengyi Xu |
|
Position |
Director |
|
8 |
|
|
Name |
Gengbu Lin |
|
Position |
Director |
|
9 |
|
|
Name |
Wenqing Zheng |
|
Position |
Director |
|
10 |
|
|
Name |
Yiqin Lin |
|
Position |
Supervisor |
|
11 |
|
|
Name |
Juanjuan Lin |
|
Position |
Supervisor |
|
12 |
|
|
Name |
Guoyan Ye |
|
Position |
Supervisor |
Personnel
Structure
|
Total Employees |
About 200 Employees |
Offices
& Factories
|
|
Headquarters |
|
Add |
19fl., No.1071, Chung Cheng Road, Taoyuan City, Taoyuan County 330,
Taiwan, R.O.C. |
Production
Information
l
Subject is a manufacturer of chemical products and the related products
with the production activities
Purchase
Information
l
The registered activities of subject:
|
Business Code |
Details |
|
C801010 |
basic chemical industry |
|
C801020 |
Manufacture of oil and the related products |
|
C801030 |
Manufacture of precious chemical materials |
|
C801100 |
Manufacture of plastic and the related products |
|
C802090 |
Manufacture of cleaning products |
|
C802120 |
Manufacture of industrial additive |
|
C802200 |
Manufacture of painting and the related products |
|
CC01110 |
Manufacture of computer and the related products |
|
F401010 |
International Trade |
|
ZZ99999 |
Besides licensed business, all other business items
those are not banned or restricted. |
l
The components and raw material for production are
purchased from local.
l Subject is mainly
engaged in manufacturing and trading of chemical
products and the related products.
l
Subject introduced that
its Major
products sold as following:
|
|
Product |
|
Coating Raw Materials |
Nitrocellulose |
|
|
NC solution |
|
|
Plasticized Nitrocellulose |
|
Electronic Chemical |
|
|
|
Others |
l
Subject introduced that its Nitrocellulose annual production
is about 35,000 tons per year.
l
Subject introduced that it obtained the ISO 9001－2008 certification.
l
Subject’s selling territory covers both domestic
and overseas markets.
Import and export
right:
|
Import right |
Yes |
|
Export right |
Yes |
Subject declined to
disclose the purchase settlements information, and from other sources, we
couldn’t obtain the information, either.
Sales
Domestic Markets
|
Sales Terms |
Proportion |
|
|
Chemical products and the related products |
COB, CBD, etc |
100% |
Export
|
Sales Terms |
Proportion |
|
|
Chemical products and the related products |
L/C , T.T, etc. |
100% |
Notes: Subject’s settlement for export is generally in USD
Unit: NTD/000
|
|
|
|
|
Assets |
|
|
|
Current Assets |
|
|
|
Cash and cash equivalents |
96,006.00 |
102,411.00 |
|
Financial assets measured at fair value through profit or loss -
current |
6,551.00 |
5,545.00 |
|
Notes receivable - net |
37,361.00 |
56,403.00 |
|
Notes receivable - related parties - net |
32.00 |
41.00 |
|
Accounts receivable - net |
425,669.00 |
407,885.00 |
|
Accounts receivable - related parties - net |
33.00 |
10.00 |
|
Other receivables |
8,390.00 |
22,197.00 |
|
Other financial assets - current |
0.00 |
12,057.00 |
|
Inventories |
266,606.00 |
439,956.00 |
|
Other prepayments |
22,594.00 |
29,728.00 |
|
Other current assets |
3,768.00 |
7,327.00 |
|
Current assets |
867,010.00 |
1,083,560.00 |
|
Funds and Investments |
|
|
|
Financial assets carried at cost - non current |
25,271.00 |
25,624.00 |
|
Equity investments under equity method |
155,502.00 |
222,867.00 |
|
Investments |
155,502.00 |
222,867.00 |
|
Funds and long-term investments |
180,773.00 |
248,491.00 |
|
Fixed Assets |
|
|
|
Cost |
|
|
|
Land |
40,794.00 |
39,293.00 |
|
Buildings and structures |
409,295.00 |
372,945.00 |
|
Machinery and equipment |
941,261.00 |
881,703.00 |
|
Other facilities |
165,145.00 |
172,442.00 |
|
Revaluation increment |
81,200.00 |
81,200.00 |
|
Cost and revaluation increment |
1,637,695.00 |
1,547,583.00 |
|
Accumulated depreciation |
-718,110.00 |
-654,980.00 |
|
Construction in process and prepayment for equipments |
219,693.00 |
185,004.00 |
|
Fixed assets |
1,139,278.00 |
1,077,607.00 |
|
Intangible Assets |
|
|
|
Other Assets |
|
|
|
Rental assets |
311,851.00 |
317,318.00 |
|
Guarantee deposits paid |
1,318.00 |
1,318.00 |
|
Deferred charges |
742.00 |
1,274.00 |
|
Deferred income tax assets - non current |
36,238.00 |
28,083.00 |
|
Other assets |
350,149.00 |
347,993.00 |
|
Assets |
2,537,210.00 |
2,757,651.00 |
|
Liabilities and Stockholders' Equity |
|
|
|
Liabilities |
|
|
|
Current Liabilities |
|
|
|
Short-term borrowings |
70,000.00 |
105,000.00 |
|
Short-term notes and bills payable |
0.00 |
49,891.00 |
|
Financial liabilities measured at fair value through profit or loss -
current |
0.00 |
141.00 |
|
Notes payable |
149,612.00 |
114,032.00 |
|
Notes payable - related parties |
92,377.00 |
74,670.00 |
|
Accounts payable |
25,011.00 |
30,199.00 |
|
Accounts payable - related parties |
24,864.00 |
24,497.00 |
|
Income tax payable |
20,931.00 |
64,335.00 |
|
Accrued expenses |
76,143.00 |
124,112.00 |
|
Other payables |
5,799.00 |
4,589.00 |
|
Current liabilities |
464,737.00 |
591,466.00 |
|
Long term Liabilities |
|
|
|
Long-term borrowings |
75,000.00 |
140,810.00 |
|
Long-term liabilities |
75,000.00 |
140,810.00 |
|
Reserves |
|
|
|
Reserve for land revaluation increment tax |
39,666.00 |
39,666.00 |
|
Reserves |
39,666.00 |
39,666.00 |
|
Other Liabilities |
|
|
|
Pension reserve / accrued pension liability |
73,027.00 |
70,506.00 |
|
Guarantee deposits received |
2,260.00 |
2,260.00 |
|
Other liabilities |
75,287.00 |
72,766.00 |
|
Liabilities |
654,690.00 |
844,708.00 |
|
Stockholders' Equity |
|
|
|
Capital |
|
|
|
Common stock |
1,278,139.00 |
1,278,139.00 |
|
Capital Surplus |
|
|
|
Capital surplus - long-term equity investments |
10,903.00 |
10,903.00 |
|
Capital surplus |
10,903.00 |
10,903.00 |
|
Retained Earnings |
|
|
|
Legal reserve |
132,832.00 |
85,143.00 |
|
Unappropriated retained earnings |
397,694.00 |
477,966.00 |
|
Retained earnings |
530,526.00 |
563,109.00 |
|
Stockholders' Equity and Other adjustment |
|
|
|
Cumulative translation adjustments |
43,591.00 |
44,328.00 |
|
Net loss not recognized as pension cost |
-22,173.00 |
-25,070.00 |
|
Unrealized Revaluation Increment |
41,534.00 |
41,534.00 |
|
Equity adjustments |
62,952.00 |
60,792.00 |
|
Stockholdersˉ equity |
1,882,520.00 |
1,912,943.00 |
|
Number of treasury stock acquired by the company and subsidiaries
(unit: share) |
0.00 |
0.00 |
Unit: NTD/000
|
|
2012 |
2011 |
|
Sales |
2,333,629.00 |
2,521,304.00 |
|
Sales returns |
2,341.00 |
3,167.00 |
|
Sales discounts and allowances |
3,118.00 |
397.00 |
|
Sales |
2,328,170.00 |
2,517,740.00 |
|
Operating income |
2,328,170.00 |
2,517,740.00 |
|
Cost of sales |
1,765,228.00 |
1,811,720.00 |
|
Operating costs |
1,765,228.00 |
1,811,720.00 |
|
Gross profit (loss) from operations |
562,942.00 |
706,020.00 |
|
Selling expense |
138,714.00 |
125,128.00 |
|
General and administrative expenses |
57,829.00 |
66,465.00 |
|
Research and development expenses |
21,476.00 |
20,353.00 |
|
Operating expenses |
218,019.00 |
211,946.00 |
|
Operating income (loss) |
344,923.00 |
494,074.00 |
|
Non-Operating Income |
|
|
|
Interest income |
777.00 |
223.00 |
|
Income from long-term equity investments under the equity method |
0.00 |
29,984.00 |
|
Dividends |
1,114.00 |
974.00 |
|
Investment income |
1,114.00 |
30,958.00 |
|
Gains on sale of investments |
116.00 |
24.00 |
|
Foreign exchange gains |
0.00 |
22,178.00 |
|
Revaluation gain on financial assets |
1,147.00 |
0.00 |
|
Miscellaneous income |
28,241.00 |
26,375.00 |
|
Non-operating revenues and gains |
31,395.00 |
79,758.00 |
|
Non-Operating Expenses |
|
|
|
Interest expense |
1,912.00 |
2,405.00 |
|
Losses from long-term equity investments under the equity method |
66,464.00 |
0.00 |
|
Investment loss |
66,464.00 |
0.00 |
|
Foreign exchange losses |
20,447.00 |
0.00 |
|
Revaluation loss on financial assets |
0.00 |
490.00 |
|
Revaluation loss on financial liabilities |
0.00 |
141.00 |
|
Miscellaneous disbursements |
7,196.00 |
39,588.00 |
|
Non-operating expenses and losses |
96,019.00 |
42,624.00 |
|
Income from continuing operations before income tax |
280,299.00 |
531,208.00 |
|
Income tax expense (benefit) |
57,254.00 |
54,311.00 |
|
Income from continuing operations |
223,045.00 |
476,897.00 |
|
Net income (loss) |
223,045.00 |
476,897.00 |
|
Primary Earnings per Share |
|
|
|
Primary earnings per share |
1.75 |
3.73 |
|
Diluted earnings per share |
|
|
|
Diluted earnings per share |
1.74 |
3.71 |
The bankers’ information
is not available from the subject or other sources.
Mortgage
No chattel mortgage record of subject has been found within the recent 3
months.
Lawsuit
|
Lawsuit Number: |
95,Laotao Jian,10 |
|
Lawsuit Date: |
|
|
Lawsuit Cause: |
Payment of superannuation |
|
Name |
Mr. Zhang |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.70 |
|
|
1 |
Rs.92.25 |
|
Euro |
1 |
Rs.78.38 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.