MIRA INFORM REPORT

Report Date :

25.10.2013

IDENTIFICATION DETAILS

Name :	DAIREN CHEMICAL CORPORATION
Registered Office :	7th Fl, No.301, Songkiang Road, Taipei Taiwan R.O.C.
Country :	Taiwan
Date of Incorporation :	30.06.1979
Com. Reg. No.:	12233428
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and sales of chemicals
No. of Employees :	1,000

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 – March 31^st, 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 and address

Company Name:	Dairen Chemical Corporation
Supplied Name:	Dairen Chemical Corporation
Trading Address:	9th Fl., No.301, Songkiang Road, Taipei Taiwan R.O.C.
Supplied Address:	9th Floor No. 301, Song Kiang Road, Taipei, Taiwan.
Telephone Number:	+886-2-7743-1500
Fax Number:	+886-2-2509-9619
E-mail:	service@dcc.com.tw

The exact name and address are as above.

Credit Summary

Credit Opinion:	Business connections are permissible.
Risk Analysis:	Average creditworthiness

Company Identification Details

Registered Name:	Dairen Chemical Corporation
Registered Address:	7th Fl, No.301, Songkiang Road, Taipei Taiwan R.O.C.
Date of Foundation:	1979-6-30
Registration Number:	12233428
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 1,415,015,390 (USD 47,403,016) (As of 2013.10, 1 NTD = 0.0335 USD)
Paid-up Capital:	NTD 1,415,015,390 (USD 47,403,016)
Legal Representatives:	Shuhong Lin
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sales of chemicals and etc.
Staff:	About 1,000 Employees
Listed at Stock Exchange:	No
Date of Last Annual Return:	2013-6-19

History

Subject was incorporated on 1979-6-30 with registered number 12233428 as Joint Stock Company in Taiwan.

Shareholders

Name	Subscription Shares
Shuhong Lin	1,049,407
Qingyuan Huang
3,735,286
Xinyi Zheng	1,817,927
Heqing Huang	2,260,190
Longxing Liao	1,919,933
Wanzhi Zheng	11,793
Qiongyu Liao	662,320
Chang Chun Petrochemical Co., Ltd.	56,849,844
Taichang Tanghuang	2,536,354
Tianran Huang	592,214
Xiandong Lin	1,556,428
Xianzhang Chen	459,851
Zheng Zheng	1,414,933
Hedong Huang	2,249,878
Limin Huang	290,973
Hezhou Huang	2,247,890
Anxian Lu	94,869

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

Subsidiaries & Branches

Related Companies

1
Name	Chang Chun Petrochemical Co., Ltd.
Registered Address	7th Fl, No.301, Songkiang Road, Taipei Taiwan R.O.C.
Registration Number	11384806
Date of Foundation:	1964-7-10
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 5,090,293,860 (USD 170,524,844) (As of 2013.10, 1 NTD = 0.0335 USD)
Paid-up Capital:	NTD 5,090,293,860 (USD 170,524,844)
Legal Representatives:	Shuhong Lin
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2012-6-7
Telephone Number:	+886-2-2503-8131
Fax Number:	+886-2-2503-3378
2
Name	CCD (Singapore) Pte Ltd
Address	29 Tembusu Avenue, Jurong Island, Singapore 627535
Telephone Number	+65-6515-5060
Fax Number	+65-6515-4307
3
Name	Chang Chun Dairen Chemical (Pan Jin) Co., Ltd
Address	1106, Hon-Guan building, LiaoBin Economic Zone, Pan-Jin, Liao-Nin,China
Telephone Number	+86-427-677-5001
Fax Number	+86-427-677-5012
4
Name	Chang Chun Plastics Co., Ltd.
Address	No.301 Songkiang Road, 7th Floor, Taipei 104 Taiwan
5
Name	Chang Chun Petrochemical Co., Ltd.
Address	No.301 Songkiang Road, 7th Floor, Taipei 104 Taiwan
6
Name	Nan Pao Resins Chemical Co., Ltd.
Address	12, Nan Hai Village, Shee Kang Shang, Tainan, Taiwan, R.O.C

Subsidiaries

1
Name	Dairen Chemical (M) Sdn. Bhd.
Address	PLO 18, Tanjung Langsat Industrial Estate, Mukim Sg. Tiram, 81700 Pasir Gudang, Johor, Malaysia
Telephone Number	+60-7-256-5800
Fax Number	+60-7-256-5799
2
Name	Dairen Chemical (Jiangsu) Co., Ltd.
Address	No.1 Dalian Road, Yangzhou Chemical Industry Park,211900 Yangzhou, Jiangsu, China
Telephone Number	+86-514-8326-8888
Fax Number	+86-514-8329-8855

Branch Companies

Name	Mailiao Branch
Registered Address	No.25 Formosa Industrial Park, Sansheng Village, Mailiao Township, Yunlin County
Registration Number	70760067
Date of Registration	1999-12-27
Manager Name	Xianzhang Chen
Date of Last Annual Return	2002-5-7

Factories

1
Name:	Mailiao Factory
Address:	No.25 Formosa Industrial Park, Sansheng Village, Mailiao Township, Yunlin County
Date of Foundation:	2001-3-7
Date of Registration:	2001-11-1
Factory Registration Number:	99653185
Factory Manager:	Zhiquan Cai
Status:	In Production
Date of Last Annual Return:	2012-8-23
Major Products:	182 Petrochemical materials
Telephone Number	+886-5-681-2201
Fax Number	+886-5-681-2212
Factory Area	About 84,459 square meters
Staff	About 230 Employees
2
Name:	Kaohsiung Factory
Address:	1-3 Hsing-Kung Road Ta-She Industrial Zone 815 Kaohsiung, Taiwan
Date of Foundation:	1983-7-26
Date of Registration:	1990-12-31
Factory Registration Number:	99661598
Factory Manager:	Laixun Ye
Status:	In Production
Date of Last Annual Return:	2007-12-24
Major Products:	181 Basic chemical material 184 Synthetic resin, plastic and rubber
Telephone Number	+886-7-351-4151
Fax Number	+886-7-351-4090
Factory Area	About 42,180 square meters
Staff	About 177 Employees
3
Name:	Ta-Fa Factory
Address:	No.8-1, Huaxi Rd., Daliao Dist., Kaohsiung City 831, Taiwan (R.O.C.)
Date of Foundation:	1988-8-31
Date of Registration:	1999-2-9
Factory Registration Number:	99661626
Factory Manager:	Mingzhao Li
Status:	In Production
Date of Last Annual Return:	2011-7-22
Major Products:	199 Other chemical products

Personnel Information

Core Management

Directors

1
Name	Shuhong Lin
Position	Board Director
2
Name	Qingyuan Huang
Position	Vice Chairman of the Board of Directors
3
Name	Xinyi Zheng
Position	Managing Director
4
Name	Heqing Huang
Position	Managing Director
Date of Appointment	1994-3-19
5
Name	Longxing Liao
Position	Managing Director
6
Name	Wanzhi Zheng
Position	Director
7
Name	Qiongyu Liao
Position	Director
8
Name	Rongzong Chen
Position	Director
9
Name	Taichang Tanghuang
Position	Director
10
Name	Tianran Huang
Position	Director
11
Name	Xiandong Lin
Position	Director
12
Name	Xianzhang Chen
Position	Director
Date of Appointment	1980-1-24
13
Name	Zheng Zheng
Position	Director
14
Name	Hedong Huang
Position	Director
15
Name	Limin Huang
Position	Director
16
Name	Shiguang Su
Position	Supervisor
17
Name	Hezhou Huang
Position	Supervisor
18
Name	Jinjun Cai
Position	Supervisor
19
Name	Kunyuan Huang
Position	Supervisor
20
Name	Anxian Lu
Position	Supervisor

Note: In the last report you ordered on 2012-9-25, the information of director “Xianzhang Chen” is incorrect, the correct date of appointment is 1980-1-24.

Personnel Structure

Total Employees

About 1,000 Employees

Operation Information

Offices & Factories

	Headquarters
Add	9th Fl., No.301, Songkiang Road, Taipei Taiwan R.O.C.

Production Information

Subject is a manufacturer of chemicals and etc.

It is introduced that subject has factories in Taiwan, mainland China, and Malaysia for production.

It is introduced that subject has obtained ISO9002, ISO 14001, OHSAS 18001, OHSAS 18001, ISO 9001: 2000 and etc certifications.

Subject’s production capacities as follows for reference:

Unit: MT

Product	Annual Capacity
Vinyl Acetate	1000,000
EVA Emulsion	330,000
VAE Powder	52,000
EVCL(EVA-VC / EVCL)	11,000
Vinyl Acetate	30,000
Nitrogen	35,000
Liquefied Carbon Dioxide	28,000
Allyl Alcohol	740,000
1,4-Butanediol	630,000
2-Methyl- 1,3-Propanediol	126,000
n-Propanol	63,000
iso-Butanol	63,000
AMPO	500
Polyteramethylene-Ether-Glycol	300,000
Tetrahydrofuran	510,000

Purchase Information

The registered activities of subject:

Business Code	Details
--	Manufacturing and sales of vinyl acetate, acetic ether, oxygen, nitrogen, ethylene, methylpropanediol, polytetramethylene ether glycol, carbon dioxide, propenyl, propyl alcohol, and hydrogen
--	Import and export of above products
C801010	Manufacturing of basic chemicals
C801020	Manufacturing of petrochemical materials
C801030	Manufacturing of precision chemical materials
C801040	Manufacturing of synthetic resin
C801050	Manufacturing of plastic raw material
C801060	Manufacturing of synthetic rubber
C801070	Manufacturing of high pressure gas
C802020	Manufacturing of artificial fiber
C802030	Manufacturing of coating and paint
C802120	Manufacturing of industrial additive
C901060	Manufacturing of fireproofing
C802120	Manufacturing of fertilizer
C802170	Manufacturing of toxic chemical substances
CC01010	Manufacturing of generator, transmission, and power distribution machinery
CC01050	Manufacturing of data storage and process equipment
CC01080	Manufacturing of electronic components
E599010	Piping engineering
I601010	Leasing industry
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

It is introduced that raw material and etc for production are mostly purchased from abroad.

It is introduced that subject imports technology from German and Japan.

Sales Information

The subject is mainly engaged in sales of chemicals and etc.

It is introduced that subject’s selling territory includes China, It is introduced that subject imports technology from German and Japan.

It is introduced that subject has many cooperative agencies selling its products covering all over the world.

Major Products

	Product
1	Vinyl Acetate
2	Vinyl Acetate-Ethylene Copolymer Emulsion
3	Ethylene-Vinyl Acetate-Vinyl Chloride Emulsion
4	Ethylene-Vinyl Chloride Emulsion
5	Vinyl Acetate-Ethylene Redispersible Powder
6	Ethyl Acetate
7	Nitrogen
8	Liquefied Carbon Dioxide
9	Allyl Alcohol
10	1,4-Butanediol
11	2-Methyl- 1,3-Propanediol
12	n-Propanol
13	iso-Butanol
14	Alkoxylated 2-Methyl-1,3-Propanediol
15	Polytetramethylene-Ether-Glycol
16	Tetrahydrofuran

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase (Taiwan and Mainland, China)

Product	Payment Terms	Proportion
Raw material and etc	COD, CBD, etc	100%

Foreign Purchase

Product	Payment Terms	Proportion
Raw material and etc	CBD, etc	100%

Sales

Domestic Markets (Taiwan)

Product	Sales Terms	Proportion
Chemicals	COD, CBD, Credit Sales, etc	100%

Export

Product	Sales Terms	Proportion
Chemicals	CBD, etc	100%

Subject’s settlement for export is generally in USD

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 Mr. Xie 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

Mr. Xie

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:

100 – 150 risky points	Very good creditworthiness
151 – 250 risky points	Good creditworthiness
251 – 320 risky points	Average creditworthiness
321 – 400 risky points	Poor creditworthiness
401 – 500 risky points	Insufficient creditworthiness
501 – 600 risky points	Business connection is rejected

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.41
UK Pound	1	Rs.99.53
Euro	1	Rs.84.82

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.