MIRA INFORM REPORT

 

 

Report Date :

05.08.2014

 

IDENTIFICATION DETAILS

 

Name :

TAIWAN PROSPERITY CHEMICAL CORPORATION

 

 

Registered Office :

9Fl., No.113, Sec. 2, Chung-Shan N. Rd., Taipei 104

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

28.05.1991

 

 

Com. Reg. No.:

86120031

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Engaged in manufacturing and sale of chemicals

 

Subject product ranges includes :

·         Cumene

Acetone

Bisphenol

Cyclohexanone

Marin Anhydride

 

 

No. of Employees :

170

 

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 :

Slow but correct

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 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are other major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, and following the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, Taiwan in July 2013 signed a free trade deal with New Zealand—Taipei’s first-ever with a country with which it does not maintain diplomatic relations—and in November inked a trade pact with Singapore. Negotiations continue on follow-on components of ECFA regarding trade in goods and a dispute resolution mechanism; a trade in services agreement is under review in the legislature. 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 overall trade surplus largely because of its surplus with China, and its foreign reserves are the world's sixth largest, behind China, Japan, Saudi Arabia, Russia, and Switzerland. 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. Taiwan since 2009 has gradually loosened rules governing Chinese investment on the island, and has also secured greater market access for its investors in the mainland. 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:

TAIWAN PROSPERITY CHEMICAL CORPORATION

Supplied Name:

Taiwan Prosperity Chemical Corpn

Trading Address:

9Fl., No.113, Sec. 2, Chung-Shan N. Rd., Taipei 104, Taiwan, R.O.C.

Supplied Address:

Floor No 9 No 113 Chung Shan North Road Sec 2 Taipei Taiwan ROC

Telephone Number:

+886-2-2563-3228

Fax Number:

+886-2-2563-5181

Notes: The exact address is as above.

 

 

Company Identification Details

 

Registered Name:

Taiwan Prosperity Chemical Corporation

Registered Address:

9Fl., No.113, Sec. 2, Chung-Shan N. Rd., Taipei 104, Taiwan, R.O.C.

Date of Foundation:

1991-5-28

Registration Number:

86120031

Registry:

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

Registered Capital:

NTD 4,000,000,000 (USD 136,000,000)

(As of 2014.03, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 2,919,750,000 (USD 99,271,500)

Legal Representatives:

Chengyun Gu

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sale of chemicals

Staff:

About 170 Employees

Listed at Stock Exchange:

Yes; Stock Symbol: 4725

Date of Last Annual Return:

2012-6-25

 

 

History

 

Subject was incorporated on 1991-5-28 with registered number 86120031 as Joint Stock Company in Taiwan.

 

Subject was listed on Taiwan Stock Exchange on 2007-10-2.

 

 

Shareholders

 

Name

Subscription Shares

Taiwan Cement Corporation

145,987,998     

 

Renhe Jiao

 

9,000

 

 

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

 

Shareholder Information:

Registered Name:

Taiwan Cement Corp.

Registered Address:

No.113, Sec.2, Chung Shan N. Rd., Taipei City, Taiwan, R.O.C.

Telephone Number:

+886-2-2531-6533

Fax Number:

+886-2-2531-6529

Date of Foundation:

1950-12-29

Registration Number:

11913502

Registry:

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

Registered Capital:

NTD 40,073,866,000 (USD 1,362,511,444)

(As of 2014.03, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 36,921,758,690 (USD 1,255,339,795.46)

Legal Representatives:

Chengyun Gu

Legal Form:

Joint Stock Company

Listed at Stock Exchange:

Yes; Stock Symbol: 1101

Date of Last Annual Return:

2013-7-8

 

 

Subsidiaries & Branches

 

Parent Company

Registered Name:

Taiwan Cement Corp.

Registered Address:

No.113, Sec.2, Chung Shan N. Rd., Taipei City, Taiwan, R.O.C.

Telephone Number:

+886-2-2531-6533

Fax Number:

+886-2-2531-6529

Date of Foundation:

1950-12-29

Registration Number:

11913502

Registry:

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

Registered Capital:

NTD 40,073,866,000 (USD 1,362,511,444)

(As of 2014.03, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 36,921,758,690 (USD 1,255,339,795.46)

Legal Representatives:

Chengyun Gu

Legal Form:

Joint Stock Company

Listed at Stock Exchange:

Yes; Stock Symbol: 1101

Date of Last Annual Return:

2013-3-7

 

Factory

Name:

Linyuan Plant

Address:

Linyuan Industrial Zone, Linyuan Township, Kaohsiung County, Taiwan

Date of Foundation:

1992-8-25

Date of Registration:

1995-10-16

Factory Registration Number:

99661829

Factory Manager:

Qingyuan Lai

Status:

In Production

Date of Last Annual Return:

2013-8-19

Major Products:

182 Petrochemical materials

Principal Activity

Subject has 6 plants on the address above for manufacturing of cumene, acetone, bisphenol, cyclohexanone, and marin anhydride

 

 

Personnel Information

 

Core Management

 

Directors

1

Name

Chengyun Gu

Position

Board Chairman

2

Name

Anping Zhang

Position

Director

3

Name

Boyuan Wang

Position

Director

4

Name

Fulong Chen

Position

Director

5

Name

Renhe Jiao

Position

Independent Director

6

Name

Zhiren Sheng

Position

Independent Director

7

Name

Zinan Jia

Position

Independent Director

8

Name

Tianfu Zhao

Position

Manager

Dare of Appointment

2012-4-2

 

Personnel Structure

 

Total Employees

About 170 Employees

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

9Fl., No.113, Sec. 2, Chung-Shan N. Rd., Taipei 104, Taiwan, R.O.C.

 

Production Information

 

·         Subject is a manufacturer of chemicals

·         Subject has six plants (total area is about 13 hectare) in Linyuan Township, Kaohsiung County, Taiwan for production.

·         Subject’s factory obtained the certifications of ISO 9002 and ISO 14001.

 

Purchase Information

 

The registered activities of subject:

Business Code

Details

C801020

Manufacture of petrochemical materials

F107200

Wholesales of chemical materials

F107990

Wholesales of other chemical products

F207200

Retails of chemical materials

F207990

Retails of other chemical products

ZZ99999

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

The raw materials for production are purchased from both home and abroad.

 

Sales Information

 

·         The subject is mainly engaged in sale of chemicals

·         Subject’s sales regions include Taiwan, Mainland China, Japan, South Korea, Australia, USA, and other Asian countries.

·         It is introduced that subject has a proportion of 50% for export.

·         Subject’s products are applied to manufacturing of fibers, engineering plastics, industrial solvents, and auto-materials

·         Subject’s major customers are China Petroleum & Chemical, Kaohsiung Monomer Company Ltd, Chimei Asahi Corporation, “ThaiPC”, and “Sumitomo”

·         Subject’s major competitors in Taiwan are Formosa Chemicals & Fibre Corporation and Chang Chung Group.

 

Major products

 

Product

1

Cumene

2

Acetone

3

Bisphenol

4

Cyclohexanone

5

Marin Anhydride

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase

Product

Payment Terms

Proportion

Raw materials

COD, Credit sales

100%

 

Foreign Purchase

Product

Payment Terms

Proportion

Raw materials

CBD, Credit Sales

100%

 

Sales

 

Domestic Markets

Product

Sales Terms

Proportion

Chemicals

COD, Credit sales

100%

 

Export

Product

Sales Terms

Proportion

Chemicals

CBD

100%

 

 

Balance Sheet

 

Unit: NTD/000

 

2012-12-31

2011-12-31

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

441,196.00

715,789.00

Financial assets measured at fair value through profit or loss - current

816.00

2,254,886.00

Available-for-sale financial assets - current

634,827.00

529,683.00

Accounts receivable - net

3,025,001.00

1,966,792.00

Other receivables

50,482.00

59,374.00

Inventories

1,226,709.00

918,549.00

Other prepayments

113,458.00

164,967.00

Other current assets

46,681.00

125,061.00

Current assets

5,539,170.00

6,735,101.00

Funds and Investments

 

 

Fixed Assets

 

 

Cost

 

 

Land

896,825.00

896,825.00

Buildings and structures

135,703.00

133,901.00

Machinery and equipment

13,942,409.00

13,568,472.00

Leased assets

313,387.00

287,521.00

Other facilities

218,995.00

205,178.00

Fixed assets cost

15,507,319.00

15,091,897.00

Accumulated depreciation

-9,603,597.00

-8,770,412.00

Accumulated impairment - fixed assets

-12,108.00

-13,315.00

Construction in process and prepayment for equipments

633,157.00

707,616.00

Fixed assets

6,524,771.00

7,015,786.00

Intangible Assets

 

 

OtherAssets

 

 

Guarantee deposits paid

62,301.00

62,601.00

Deferred charges

214,789.00

279,308.00

Deferred income tax assets - non current

72,311.00

27,392.00

Other assets - other

55,481.00

14,459.00

Other assets

404,882.00

383,760.00

Assets

12,468,823.00

14,134,647.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

Short-term borrowings

1,075,980.00

935,655.00

Financial liabilities measured at fair value through profit or loss - current

0.00

902.00

Accounts payable

1,827,972.00

797,300.00

Income tax payable

0.00

232,339.00

Accrued expenses

212,909.00

284,699.00

Other payables - related parties

49,765.00

36,636.00

Other payables

66,578.00

24,110.00

Long-term liabilities - current portion

1,903,200.00

878,400.00

Other current liabilities

39,798.00

43,996.00

Current liabilities

5,176,202.00

3,234,037.00

Long term Liabilities

 

 

Long-term borrowings

200,000.00

1,903,200.00

Long-term notes and accounts payable

72,754.00

109,327.00

Long-term notes and accounts payable - related parties

39,576.00

39,576.00

Long-term liabilities

312,330.00

2,052,103.00

Reserves

 

 

Other Liabilities

 

 

Pension reserve / accrued pension liability

102,535.00

123,418.00

Guarantee deposits received

16,283.00

16,229.00

Other liabilities

118,818.00

139,647.00

Liabilities

5,607,350.00

5,425,787.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

2,919,750.00

2,919,750.00

Capital Surplus

 

 

Capital surplus - additional paid-in capital

690,000.00

690,000.00

Capital surplus

690,000.00

690,000.00

Retained Earnings

 

 

Legal reserve

1,287,784.00

1,054,257.00

Special reserve

283,054.00

0.00

Unappropriated retained earnings

1,858,795.00

4,327,907.00

Retained earnings

3,429,633.00

5,382,164.00

Stockholders' Equity and Other adjustment

 

 

Unrealized gains (losses) on financial instruments

-177,910.00

-283,054.00

Equity adjustments

-177,910.00

-283,054.00

Stockholders - equity

6,861,473.00

(USD 233,290,082.00)

8,708,860.00

(USD 296,101,240.00)

Number of treasury stock acquired by the company and subsidiaries (unit: share)

0.00

0.00

 

0.00

0.00

(As of 2014.03, 1 NTD = 0.0340 USD)

 

Profit and Loss Account

 

Unit: NTD/000

 

2012-1-1~2012-12-31

2011-1-1~2011-12-31

Sales

25,451,425.00

(USD 865,348,450.00)

27,319,955.00

(USD 928,878,470.00)

Sales returns

25,751.00

37,246.00

Sales

25,425,674.00

27,282,709.00

Operating income

25,425,674.00

27,282,709.00

Cost of sales

24,928,162.00

23,800,740.00

Operating costs

24,928,162.00

23,800,740.00

Gross profit (loss) from operations

497,512.00

3,481,969.00

Selling expense

493,023.00

443,560.00

General and administrative expenses

95,441.00

155,639.00

Research and development expenses

33,111.00

57,587.00

Operating expenses

621,575.00

656,786.00

Operating income (loss)

-124,063.00

2,825,183.00

Non-Operating Income

 

 

Interest income

5,873.00

7,937.00

Dividends

11,293.00

10,844.00

Investment income

11,293.00

10,844.00

Foreign exchange gains

0.00

16,646.00

Revaluation gain on financial assets

8,636.00

19,025.00

Miscellaneous income

62,660.00

28,765.00

Non-operating revenues and gains

88,462.00

83,217.00

Non-Operating Expenses

 

 

Interest expense

53,366.00

64,655.00

Revaluation loss on financial liabilities

0.00

902.00

Miscellaneous disbursements

31,290.00

20,833.00

Non-operating expenses and losses

84,656.00

86,390.00

Income from continuing operations before income tax

-120,257.00

2,822,010.00

Income tax expense (benefit)

-21,768.00

486,736.00

Income from continuing operations

-98,489.00

2,335,274.00

Net income (loss)

-98,489.00

(USD 3,348,626.00)

2,335,274.00

(USD 79,399,316.00)

Primary Earnings per Share

 

 

Primary earnings per share

-0.34

8.00

Diluted earnings per share

 

 

(As of 2014.03, 1 NTD = 0.0340 USD)

 

 

 

 

 

 

 

 

 

Cash Flows

 

Unit: NTD/000

 

2012-1-1~2012-12-31

2011-1-1~2011-12-31

Cash Flows from Operating Activities - Indirect Method

 

 

Net Income (Loss)

-98,489.00

2,335,274.00

Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities

 

 

Depreciation Expense

835,020.00

807,820.00

Amortization Expense

75,636.00

86,150.00

Loss (Gain) on Disposal of Property, Plant and Equipment

-9.00

0.00

Unrealized Revaluation Loss (Gain) on Financial Assets and Liabilities

-8,636.00

-18,123.00

Loss (Gain) on Deferred Income Tax

-21,696.00

-16,830.00

Changes in Operating Assets and Liabilities

 

 

Decrease (Increase) in Financial Assets Held for Trading

2,261,804.00

773,258.00

Decrease (Increase) in Accounts Receivable

-1,058,209.00

-221,287.00

Decrease (Increase) in Accounts Receivable - Related Parties

0.00

508,634.00

Decrease (Increase) in Other Receivables

8,892.00

138,936.00

Decrease (Increase) in Inventories

-308,160.00

157,228.00

Decrease (Increase) in Prepaid Expenses

51,509.00

13,042.00

Decrease (Increase) in Other Current Assets

55,157.00

-17,799.00

Increase (Decrease) in Accounts Payable

1,030,672.00

-653,841.00

Increase (Decrease) in Income Tax Payable

-232,339.00

-295,559.00

Increase (Decrease) in Accrued Expenses

-71,790.00

-66,058.00

Increase (Decrease) in Other Payable - Related Parties

13,129.00

651.00

Increase (Decrease) in Other Current Liabilities

-6,853.00

-5,723.00

Increase (Decrease) in Accrued Pension Liabilities

-20,883.00

-8,177.00

Net Cash Provided by (Used in) Operating Activities

2,504,755.00

3,517,596.00

Cash Flows from Investing Activities

 

 

Purchase of Property, Plant and Equipment

-301,537.00

-486,419.00

Proceeds from Disposal of Property, Plant and Equipment

9.00

0.00

Decrease (Increase) in Refundable Deposits

300.00

1,513.00

Increase in Deferred Charges

-11,117.00

-55,402.00

Decrease (Increase) in Other Assets

-41,022.00

-1,164.00

Net Cash Provided by (Used in) Investing Activities

-353,367.00

-541,472.00

Cash Flows from Financing Activities

 

 

Increase (Decrease) in Short-term Loans

140,325.00

-162,305.00

Repayment of Long-term Debt

-678,400.00

-878,400.00

Increase (Decrease) in Guarantee Deposits Received

54.00

5,739.00

Increase (Decrease) in Lease Payable

-33,918.00

-31,658.00

Cash Dividends Paid

-1,854,042.00

-2,426,312.00

Other Financing Activities

0.00

39,576.00

Net Cash Provided by (Used in) Financing Activities

-2,425,981.00

-3,453,360.00

Net Increase (Decrease) in Cash and Cash Equivalents

-274,593.00

-477,236.00

Cash and Cash Equivalents, Beginning of year

715,789.00

1,193,025.00

Cash and Cash Equivalents, End of year

441,196.00

715,789.00

Supplemental Cash Flow Information

 

 

Interest Paid

52,533.00

66,754.00

Interest Paid- Excluding Capitalized Interest

52,533.00

66,754.00

Income Tax Paid

238,552.00

799,125.00

Non-cash Investing and Financing Activities

 

 

Current Portion of Long-term Liabilities

1,903,200.00

878,400.00

Investing Activities Affecting Both Cash and Non-cash Items

 

 

Cash Paid for Acquisition of Property, Plant and Equipment

 

 

Increase in Property, Plant and Equipment

344,005.00

475,470.00

Increase (Decrease) in Payable for Equipment Purchased

-42,468.00

10,949.00

Cash Paid for Acquisition of Property, Plant and Equipment

301,537.00

486,419.00

 

 

Bankers

 

Subject did not introduce its bank details; from other source we can not obtain the relevant information, either.

 

Public Record

 

Mortgage

 

Case Type:

Certificate No.:

Debtor Name:

Document Number:

Date of Registration:

Date of Alteration:

Status:

Chattel Mortgage

047055

Taiwan Prosperity Chemical Corporation

240965

1995/2/9

 

Paid off

Chattel Mortgage

048831

Taiwan Prosperity Chemical Corporation

247061

1995/8/29

 

Paid off

Chattel Mortgage

097287

Taiwan Prosperity Chemical Corporation

09830436040

2009/5/4

 

 

 

Lawsuit

 

Up to date of reporting, no existing or latent litigation of the subject has been found.

 

 

Interview Details

 

Name

Ms. Wu

Department

Sales Department

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.02

UK Pound

1

Rs.102.69

Euro

1

Rs.81.91

 

INFORMATION DETAILS

 

Report Prepared by :

TPT

 

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.