MIRA INFORM REPORT

Report Date :

22.10.2013

IDENTIFICATION DETAILS

Name :	COSTCO PRESIDENT TAIWAN INC.

Registered Office :	No.656, Chung Hwa 5th Road, Kaohsiung, Taiwan, R.O.C.

Country :	Taiwan

Date of Incorporation :	08.02.1996

Com. Reg. No.:	96972798

Legal Form :	Joint Stock Company

Line of Business :	Subject is a trader of groceries.

No. of Employees :	3,400

RATING & COMMENTS

MIRA’s Rating :

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 – March 31^st, 2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Taiwan

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

Contact Points

Company Name:	Costco President Taiwan Inc.
Supplied Name:	Costco President Taiwan
Trading Address:	No.255, Minshan St., Neihu Dist., Taipei City, Taiwan (R.O.C.)
Supplied Address:	Min Shan Street Neihu Taipei Taiwan Roc
Telephone Number:	+886-2-8791-9988

The exact name and address are as above.

Company Identification Details

Registered Name:	Costco President Taiwan Inc.
Registered Address:	No.656, Chung Hwa 5th Road, Kaohsiung, Taiwan, R.O.C.
Date of Foundation:	1996-2-8
Registration Number:	96972798
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 9,000,000,000 (USD 301,500,000) (As of 2013.10, 1 NTD = 0.0335 USD)
Paid-up Capital:	NTD 8,709,052,000 (USD 291,753,242)
Legal Representatives:	Sihan Zhang
Legal Form:	Joint Stock Company
Principal Activities:	Trading of groceries and etc.
Staff:	About 3,400 Employees
Listed at Stock Exchange:	No
Date of Last Annual Return:	2013-7-10

History

Subject was incorporated on 1996-2-8 with registered number 96972798 as Joint Stock Company in Taiwan.

Shareholders

Name	Subscription Shares
Costco Wholesale Corporation	478,997,860
Da Li International Enterprise Co, Ltd (Liberal translation)
384,051,236
President Group	7,856,104

The information above is that of subject’s major shareholders

Subsidiaries & Branches

Related Companies

1
Name	Costco Wholesale Corporation
Address	999 Lake Drive Issaquah, WA 98027 U.S.A
2
Name	Da Li International Enterprise Co, Ltd (Liberal translation)
Registered Address	10F., No.59, Wufu 3rd Rd., Qianjin Dist., Kaohsiung City, Taiwan (R.O.C.)
Registration Number	79854678
Registry:	Economic Development Bureau Kaohsiung City Government
Date of Registration	1981-10-30
Registered Capital:	NTD 499,800,000 (USD 16,743,300) (As of 2013.10, 1 NTD = 0.0335 USD)
Paid-up Capital:	NTD 499,800,000 (USD 16,743,300)
Legal Representatives:	Mingxiang Li
Legal Form:	Joint Stock Company
Date of Last Annual Return	2012-3-3
3
Name	President Group
Registered Address	1-4F., No.262, Wufu 2nd Rd., Xinxing Dist., Kaohsiung City, Taiwan (R.O.C.)
Registration Number	83396274
Date of Registration	1973-6-15
Registered Capital:	NTD 552,515,220 (USD18,509,260) (As of 2013.10, 1 NTD = 0.0335 USD)
Paid-up Capital:	NTD 552,515,220 (USD 16,743,300)
Legal Representatives:	NTD 552,515,220 (USD18,509,260)
Legal Form:	Joint Stock Company
Date of Last Annual Return	2012-10-22
Telephone Number	+886-7-261-3060
Fax Number	+886-7-261-8881

Branch Companies

1
Name	Costco President Taiwan Inc. Chiayi Branch
Registered Address	No.668, Zhongxiao Rd., East Dist., Chiayi City 60080, Taiwan (R.O.C.)
Registration Number	53666362
Date of Registration	2013-3-5
Manager Name	Sihan Zhang
Date of Last Annual Return	2013-8-8
Telephone Number	+886-2-8791-9988#211
Fax Number	+886-2-2792-2998
2
Name	Costco President Taiwan Inc. Taoyuan Branch
Registered Address	No.369, Sec. 1, Nankan Rd., Luzhu Township, Taoyuan County 33859, Taiwan
Registration Number	53026887
Date of Registration	2012-3-7
Manager Name	Sihan Zhang
Date of Last Annual Return	2012-7-25
Telephone Number	+886-2-8791-9988#215
Fax Number	+886-2-2792-2998
3
Name	Costco President Taiwan Inc. Chung Ho Branch
Registered Address	2F, 3F, No.347, Sec.2, Chung-Shan Rd., Zhonghe Dist., New Taipei City 235, Taiwan (R.O.C.)
Registration Number	80033968
Date of Registration	2003-11-27
Manager Name	Sihan Zhang
Date of Last Annual Return	2005-1-11
Telephone Number	+886-2-2242-5289
Fax Number	+886-2-2242-0567
4
Name	Costco President Taiwan Inc. Dashun Branch
Registered Address	No.111, Dashun 1st Rd., Gushan Dist., Kaohsiung City 804, Taiwan (R.O.C.)
Registration Number	29181888
Date of Registration	2010-9-10
Manager Name	Sihan Zhang
Date of Last Annual Return	2011-7-28
Telephone Number	+886-2-8791-9988
Fax Number	+886-2-2792-2998
5
Name	Costco President Taiwan Inc. Depot Branch
Registered Address	No.198, Datan S. Rd., Guanyin Township, Taoyuan County 32841, Taiwan (R.O.C.)
Registration Number	53665618
Date of Registration	2013-2-8
Manager Name	Sihan Zhang
Date of Last Annual Return	2013-5-16
Telephone Number	+886-2-8791-9988
Fax Number	+886-2-2792-2998
6
Name	Costco President Taiwan Inc. Hsinchu Branch
Registered Address	No.188, Cihyun Rd., East Dist., Hsinchu City 30072, Taiwan (R.O.C.)
Registration Number	28435913
Date of Registration	2008-6-6
Manager Name	Sihan Zhang
Date of Last Annual Return	2009-6-6
Telephone Number	+886-3-563-8000
7
Name	Costco President Taiwan Inc. Nei Hu Warehouse
Registered Address	#268, 1 Section Jiu-Zong Road, Nei Hu, Taipei Taiwan
Registration Number	16439323
Date of Registration	1998-3-4
Manager Name	Sihan Zhang
Date of Last Annual Return	2010-6-18
Telephone Number	+886-2-8791-0110
Fax Number	+886-2-8791-0597
8
Name	Costco President Taiwan Inc. Shih Chih Warehouse
Registered Address	#158, Section One, Datung Rd., Xizhi Dist., New Taipei City 221, Taiwan (R.O.C.)
Registration Number	16846757
Date of Registration	1999-6-16
Manager Name	Sihan Zhang
Date of Last Annual Return	1999-12-20
Telephone Number	+886-2-8791-0110
Fax Number	+886-2-2641-1441
9
Name	Costco President Taiwan Inc. Tainan Branch
Registered Address	No.8, Sec. 4, Hewei Rd., North Dist., Tainan City 70454, Taiwan (R.O.C.)
Registration Number	28995746
Date of Registration	2010-5-20
Manager Name	Sihan Zhang
Date of Last Annual Return	2011-8-4
Telephone Number	+886-2-87910-9988#215
Fax Number	+886-2-2792-2998
10
Name	Costco President Taiwan Inc.Taichung Branch
Registered Address	No.289, Wunsin S. 3rd Rd., Nantun District, Taichung City 408, Taiwan (R.O.C.)
Registration Number	27948648
Date of Registration	2006-11-17
Manager Name	Sihan Zhang
Date of Last Annual Return	2007-7-23
Telephone Number	+886-4-2252-0728

Personnel Information

Core Management

Directors

1
Name	Sihan Zhang
Position	Board Chairman
Date of Appointment	1996-1-24
2
Name	Guanyu Wu
Position	Board Chairman
3
Name	Xin Na Ge
Position	Director
4
Name	W. Craig Jelinek
Position	Director
5
Name	James P. Murphy
Position	Director
6
Name	Guangxi Xu
Position	Director
7
Name	Huijun Xia
Position	Director
8
Name	Mingxiang Li
Position	Director
9
Name	Daini Wan
Position	Supervisor
10
Name	Zhenyu Xia
Position	Supervisor

Personnel Structure

Total Employees

About 3,400 Employees

Operation Information

Offices & Factories

	Headquarters
Add	No.255, Minshan St., Neihu Dist., Taipei City, Taiwan (R.O.C.)

Production Information

Subject is a trader of groceries and etc and etc without any production activities

Purchase Information

l The registered activities of subject:

Business Code	Details
F108021	Wholesales of western medicine.
F208021	Retails of western medicine.
F108011	Wholesales of traditional Chinese medicine.
F208011	Retails of traditional Chinese medicine.
F108031	Wholesales of medical device.
F208031	Retails of medical device.
F101081	Wholesales of seeds and seedlings.
F113060	Importing of measuring instruments directives.
F401021	Importing of radio-frequency devices for telecommunications regulation.
F201061	Retails of seeds and seedlings.
F213050	Retails of measuring instruments directives.
F203020	Retails of cigarette and wine.
F201010	Retails of agricultural products.
A102060	Food dealers.
F102030	Wholesales of cigarette and wine.
F401161	Importing of cigarette.
F401171	Importing of wine.
F401010	International trading business.
G801010	Storage.
IZ06010	Trimming and packaging industry.
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

l It is introduced that subject purchases its products both at home and abroad.

Sales Information

l The subject is mainly engaged in sales of groceries and etc.

l It is introduced that subject’s selling territory is mainly Taiwan domestic market.

l It is introduced that subject’s major customers are direct customers and etc.

l It is introduced that subject has about 8 supermarkets in Taiwan for sales.

l It is introduced that subject has its own brand named “Kirkland Signature”.

l It is introduced that subject has two kinds of memberships, business and gold star.

Major Products

	Product
1	Personal items
2	Outdoor goods and Household Goods
3	Processed food
4	Fresh food

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Product	Payment Terms	Proportion
Groceries and etc	COD, CBD and etc	100%

Foreign Purchase

Product	Payment Terms	Proportion
Groceries and etc	CBD and etc	100%

Sales

Domestic Markets

Product	Sales Terms	Proportion
Groceries and etc	COD, CBD and etc	100%

Export

The subject has little export.

Financial Information

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. Chen declined to disclose its financials citing the grounds of company’s confidentiality; from other source we can not obtain the relevant information, either.

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. Chen

Credit Index Explanation

The credit index is in fact the number of risky points. The lower credit index is, the higher is the creditworthiness of the company. The following table can be used for evaluation of the creditworthiness of a company:

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.49
UK Pound	1	Rs.99.41
Euro	1	Rs.84.12

INFORMATION DETAILS

Report Prepared by :

NIS

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.