MIRA INFORM REPORT

 

 

Report Date :

11.02.2014

 

IDENTIFICATION DETAILS

 

Name :

DKSH TAIWAN LTD.

 

 

Registered Office :

1,3,5,7-10F, 24, 26-10F, 22-10F-1 No.22, Lane 407, Sec. 2, Tiding Blvd., Neihu District, Taipei City 114

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

04.12.2001

 

 

Com. Reg. No.:

70824858

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Trading of daily supplies, medical devices, chemical products

 

 

No. of Employees :

1,200

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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:

DKSH Taiwan Ltd.

Supplied Name:

DKSH Taiwan Ltd

Trading Address:

10F., No.22, Lane 407, Sec. 2, Tiding Blvd., Neihu District, Taipei City 114, Taiwan (R.O.C.)

Supplied Address:

10F, ND 22 Lane 407 Ti Ding Blvd Section 2 Neihu Technology Park Taipei 114

Telephone Number:

+886-2-8752-6666

Fax Number:

+886-2-8752-6000

Notes: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

DKSH TAIWAN LTD.

Registered Address:

1,3,5,7-10F, 24, 26-10F, 22-10F-1 No.22, Lane 407, Sec. 2, Tiding Blvd., Neihu District, Taipei City 114, Taiwan (R.O.C.)

Date of Foundation:

2001-12-4

Registration Number:

70824858

Registry:

Taipei City Government

Registered Capital:

NTD 300,000,000 (USD 9,930,000)

(As of 2014.2, 1 NTD = 0.0331 USD)

Paid-up Capital:

NTD 223,365,000 (USD 7,393,381.5 )

Legal Representatives:

Charles Toomey

Legal Form:

Joint Stock Company

Principal Activities:

Trading of daily supplies, medical devices, chemical products and etc.

Staff:

About 1,200 Employees

Listed at Stock Exchange:

No

Date of Last Annual Return:

2013-3-6

 

 

History

 

Subject was incorporated on 2001-12-4 with registered number 70824858 as Joint Stock Company in Taiwan.

 

Change of Name

Former Chinese Name

迪恆股份有限公司

Current Chinese Name

台灣大昌華嘉股份有限公司

 

Former English Name

Diethelm Keller(Taiwan) & Co., Ltd.

Current English Name

DKSH Taiwan Ltd.

 

Shareholders

 

           

Name

Subscription Shares

DKSH Holding Ltd.

22,336,500

 

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

 

 

Subsidiaries & Branches

 

Parent Company

Name

DKSH Holding Ltd.

Address

Wiesenstrasse 8, 8034 Zurich, Switzerland

Telephone Number

+41-44-386-72-72

Fax Number

+41-44-386-72-82

Staff:

About 26,263 Employees

Listed at Stock Exchange:

Yes; (Public, SWX:DKSH)

 

Related Companies

1

Name

DKSH Management Ltd.

Address

Wiesenstrasse 8, 8034 Zurich, Switzerland

Telephone Number

+41-44-386-72-72

Fax Number

+41-44-386-72-82

2

Name

DKSH International Ltd.

Address

Wiesenstrasse 8, 8034 Zurich, Switzerland

Telephone Number

+41-44-386-72-72

Fax Number

+41-44-386-72-82

3

Name

DKSH Management (Thailand) Limited

Address

2106 Sukhumvit Road, Bangchak, Prakhanong 10260 Bangkok

Thailand

Telephone Number

+66 2 220 9733

4

Name

DKSH Management Pte. Ltd.

Address

238A Thomson Road, #25-01/03, Novena Square Office Tower A, 307684 Singapore

Telephone Number

+65 6578 9830

Fax Number

+65 6578 9844

5

Name

DKSH Pharmaceutical (Shanghai) Ltd.

Address

Shanghai

6

Name

DKSH Hong Kong Ltd.

Address

Hong Kong

7

Name

DKSH Japan K.K.

Address

Tokyo

8

Name

DKSH India Pvt. Ltd.

Address

Bombay-Mumbai

9

Name

DKSH (China) Co. Ltd.

Address

Shanghai

10

Name

Edward Keller (Shanghai) Ltd.

Address

Shanghai

Note: It is introduced that subject has many members covering all over the world, we listed 10 members as subject's related companies for references.

 

 

Personnel Information

 

Core Management

 

Directors

1

Name

Charles Toomey

Position

Board Chairman

2

Name

Gonpo Tsering

Position

Director

3

Name

Xuehui Cheng

Position

Director

4

Name

Claus Hendrik Bressmer

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 1,200 Employees

 


 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

10F., No.22, Lane 407, Sec. 2, Tiding Blvd., Neihu District, Taipei City 114, Taiwan (R.O.C.)

 

Production Information

 

Subject is a trader of daily supplies, medical devices, chemical products and etc without any production activities

 

Purchase Information

 

The registered activities of subject:

Business Code

Details

F108021 

Wholesales of western medicine.

F208021 

Retails of western medicine.

F108031 

Wholesales of medical devices.

F208031 

Retails of medical devices.

E604010 

Installation of machinery.

EZ05010 

Installation of instrument and apparatus.

F106020 

Wholesales of daily supplies.

F113010 

Wholesales of machinery.

F113020 

Wholesales of electrical appliances.

F113030 

Wholesales of precision instrument.

F113070 

Wholesales of telecommunication equipment.

F206020 

Retails of daily supplies.

F213010 

Retails of electrical appliances.

F213040 

Retails of precision instrument.

F213060 

Retails of telecommunication equipment.

F213080 

Retails of machinery and molds.

F401010 

International trading business.

G801010 

Storage.

IZ06010 

Packaging industry.

E801070 

Installation of cooking utensils and plumping products.

F107030 

Wholesales of cleaning supplies.

F207030 

Retails of cleaning supplies.

F107010 

Wholesales of coating and covering.

F107020 

Wholesales of dyes and pigments.

F107070 

Wholesales of medicine for animals.

F108040 

Wholesales of cosmetics.

F207020 

Retails of dyes and pigments.

F207050 

Retails of fertilizers.

F207070 

Retails of medicine for animals.

F207080 

Retails of environmental medicine.

F208040 

Retails of cosmetics.

F113990 

Wholesales of other machinery and tools.

F213990 

Retails of other machinery and tools.

CB01010 

Manufacturing of machinery and equipment.

CC01030 

Manufacturing of electrical appliances and audio visual electronic products.

E603050 

Project of automatic controlling device.

E603080 

Project of traffic signs.

G202010 

Operating of parks.

E605010 

Installation of computer.

F118010 

Wholesales of information software.

F218010 

Retails of information software.

I301010 

Servicing of information software.

I301020 

Handling with the files.

I301030 

Servicing of electronic information supplying.

F107080 

Wholesales of environmental medicine.

F102170 

Wholesales of food and miscellaneous goods.

F104110 

Wholesales of cloth, apparel, shoes, caps, umbrella and accessories of garment.

F204110 

Retails of cloth, apparel, shoes, caps, umbrella and accessories of garment.

F105050 

Wholesales of furniture, sleeping supplied, kitchenware and decorations.

F205040 

Retails of furniture, sleeping supplied, kitchenware and decorations.

F203010 

Retails of food, drinks and miscellaneous goods.

F113060 

Wholesales of measuring instruments directives.

F113100 

Wholesales of equipment for pollution prevention.

F213050 

Retails of measuring instruments directives.

F213100 

Retails of equipment for pollution prevention.

F207010 

Retails of coating and covering.

F112040 

Wholesales of petroleum product.

F212050 

Retails of petroleum product.

F102030 

Wholesales of cigarettes and wine.

F113050 

Wholesales of computer and related equipment.

F203020 

Retails of cigarettes and wine.

F213030 

Retails of computer and related equipment

F401171 

Importing of alcohol.

F102040 

Wholesales of drinks.

F401021 

Importing of radio-frequency devices under telecommunications regulation.

C802041 

Manufacturing of western medicine.

CF01011 

Manufacturing of medical devices.

ZZ99999 

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

 

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

It is introduced that subject has about 192 suppliers covering all over the wordl.

 

Sales Information

 

The subject is mainly engaged in sales of daily supplies, medical devices, chemical products and etc.

It is introduced that subject’s selling territory’s selling territory is mainly in Taiwan, Hong Kong and the mainland of China, etc.

It is introduced that subject has 25,000 stores in Taiwan for retails.

It is introduced that subject is an agent and distributor of the famous pet food brands named “Eukanuba” in Taiwan.

 

Major Products and Services

Products and Services

Items

Healthcare

Ethical pharmaceuticals, over-the-counter (OTC), consumer health, as well as medical devices, and are delivered to multiple professional healthcare outlets.

Technology

Technical and service solutions in the areas of industry, infrastructure, energy, research, food and beverage, as well as advanced metals.

Fast Moving Consumer Goods

Daily supplies and etc.

Luxury & Lifestyle

Cosmetics and etc

Performance Materials

Beverage & Dairy, Food Supplements & Nutrition, and Food Service.

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase

Product

Payment Terms

Proportion

Daily supplies, medical devices, chemical products and etc.

COD, CBD and etc

100%

 

Foreign Purchase

Product

Payment Terms

Proportion

Daily supplies, medical devices, chemical products and etc.

CBD and etc

100%

 

Sales

 

Domestic Markets

Product

Sales Terms

Proportion

Daily supplies, medical devices, chemical products and etc.

COD, CBD and etc

100%

 

Export

Product

Sales Terms

Proportion

Daily supplies, medical devices, chemical products and etc.

CBD and etc

100%

 

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.

We found the consolidated financial information of subject’s parent company (DKSH Holding Ltd.) from public files for reference.

 

 

Balance Sheet

                                                                 Unit: CHF/Million

Date

2012-12-31

2011-12-31

Cash and cash equivalents

253.60

192.80

Trade receivables

1,623.40

1,511.90

Inventories

848.80

792.40

Prepaid expenses

26.90

20.50

Other receivables

221.50

196.10

Current income tax receivable

3.80

3.60

Current assets

2,978.00

2,717.30

Intangible assets

130.00

119.50

Other receivables

3.50

6.10

Property, plant and equipment

143.80

147.70

Financial assets

25.10

25.60

Investments in associates

23.60

3.90

Retirement benefit assets

21.50

20.90

Deferred tax assets

29.50

27.10

Non-current assets

377.00

350.80

Total assets

3,355.00

3,068.10

Borrowings

118.50

226.60

Trade payables

1,505.60

1,354.70

Current income tax liabilities

34.00

29.40

Other payables and accrued expenses

344.90

320.50

Current provisions

3.70

7.30

Current liabilities

2,006.70

1,938.50

Borrowings

80.90

44.20

Other non-current liabilities

18.70

18.30

Deferred tax liabilities

18.70

20.60

Non-current provisions

4.10

5.40

Retirement benefit obligations

21.50

18.40

Non-current liabilities

143.90

106.90

Total liabilities

2,150.60

2,045.40

Share capital

6.40

6.30

Reserves and retained earnings

1,164.60

989.20

Equity attributable to the shareholders of the Group

1,171.00

995.50

Non-controlling interest

33.40

27.20

Total equity

1,204.40

1,022.70

Total equity and liabilities

3,355.00

(USD 3,733,779,500)

3,068.10

(USD 3,414,488,490)

(As of 2014.2, 1 CHF = 1.1129 USD)

 

 

Profit and Loss Account

                                                                 Unit: CHF/Million

Date

2012

2011

Net sales

8,834.10

(USD 9,831,469,890)

7,340.00

(USD 8,168,686,000)

Other income

44.40

53.90

Goods and material purchased and consumables used

-7,489.10

-6,191.60

Employee benefit expenses

-519.70

-457.30

Depreciation, amortization and impairments

-42.70

-37.80

Other operating expenses

-549.70

-469.60

Operating profit (EBIT)

277.30

237.60

Net finance costs

-13.90

-8.80

Gain on sale of shareholding

24.90

0.10

Share of profit of associates

0.10

0.30

Profit before tax

288.40

229.20

Income tax expenses

-79.00

-76.90

Profit after tax

209.40

152.30

Attributable to:

 

 

Shareholders of the Group

201.20

147.10

Non-controlling interest

8.20

5.20

Earnings per share for profit attributable to the shareholders of the Group

 

 

Basic earnings per share

3.18

2.37

Diluted earnings per share

3.11

2.31

(As of 2014.2, 1 CHF = 1.1129 USD)

 

 

Cash Flow

 

Date

2012-1-1~2012-3-31

2011-1-1~2012-12-31

Profit before tax

288.40

229.20

Non-cash adjustments

 

 

Depreciation, amortization and impairments on

 

 

Property, plant and equipment

31.30

24.30

Intangible assets

11.40

13.50

Recycling of currency translation losses of business disposed

7.10

--

Share-based payment transaction expense

13.90

23.90

Gain on sale of tangible and intangible assets

-7.40

-0.30

Net finance costs

13.90

8.80

Share of profit of associates

-0.10

-0.30

Gain on bargain purchase

-1.40

-22.20

Gain on sale of shareholding

-32.00

--

Gain on remeasuring the previous interest to fair value

--

-3.70

Change in provisions and other non-current liabilities

-3.20

0.90

Change in other non-current assets

1.90

10.80

Working capital adjustments

 

 

Increase in trade and other receivables and prepayments

-173.20

-101.80

Increase in inventories

-61.10

-111.50

Increase in trade and other payables

184.60

147.00

Interest received

1.00

2.00

Interest paid

-8.50

-8.30

Taxes paid

-76.40

-78.30

Net cash flows from operations

190.20

134.00

Proceeds from sale of property, plant and equipment

12.30

3.10

Purchase of property, plant and equipment

-47.70

-39.00

Proceeds from sale of intangible assets

0.50

2.10

Purchase of intangible assets

-5.80

-9.70

Proceeds from sale of financial assets

1.20

--

Purchase of financial assets and investments in associates

-20.90

-0.30

Acquisition of subsidiary net of cash

-15.00

-24.20

Disposal of subsidiary net of cash

39.40

--

Net cash flows used in investing activities

-36.00

-68.00

Proceeds from current and non-current borrowings

395.20

360.70

Repayment of current and non-current borrowings

-453.10

-275.20

Dividend paid

-40.80

-247.20

Net proceeds from net investment hedges

7.60

7.00

Proceeds from sale of treasury shares

--

0.20

Dividend paid to non-controlling interest

-2.10

-1.80

Net cash flows from financing activities

-93.20

-156.30

Cash and cash equivalents, as of January

192.80

287.60

Effect of exchange rate changes

-0.20

-4.50

Net increase/(decrease) in cash and cash equivalents

61.00

-90.30

Cash and cash equivalents, as of December 31

253.60

192.80

 

 

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. Lee

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.19

UK Pound

1

Rs.102.14

Euro

1

Rs.84.74

 

 

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.