MIRA INFORM REPORT

Report Date :

22.01.2014

IDENTIFICATION DETAILS

Name :	TAH KONG CHEMICAL INDUSTRIAL CORP
Registered Office :	7F, No. 778, Section 4, Pa Te Road, Nangang District, Taipei, 115
Country :	Taiwan
Financials (as on) :	31.12.2012
Date of Incorporation :	20.04.1966
Legal Form :	Public Independent
Line of Business :	Manufacture and distribution of pigments. The Company provides processed pigments, including polyvinyl chloride (PVC) color pigments
No. of Employees :	326

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 :	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 – 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

Tah Kong Chemical Industrial Corp

7F, No. 778, Section 4,
Pa Te Road, Nangang District
Taipei, 115
Taiwan
Tel:	886-2-27859081
Fax:	886-2-27850907
www.tkc.com.tw

Employees:

326

Company Type:

Public Independent

Traded:

Gre Tai Security Market:

4706

Incorporation Date:

20-Apr-1966

Auditor:

Deloitte & Touche LLP

Fiscal Year End:	31-Dec-2012
Reporting Currency:	Taiwanese New Dollar
Annual Sales:	53.4 ^1
Net Income:	2.8
Total Assets:	55.5 ^2
Market Value:	47.4
	(27-Dec-2013)

Business Description

Tah Kong Chemical Industrial Corp. is principally engaged in the manufacture and distribution of pigments. The Company provides processed pigments, including polyvinyl chloride (PVC) color pigments, polyolefin color pigments, polyurethane (PU) color pigments and color pastes for printing and dying, among others; organic pigments, including color pigment powders and wet pigment cakes, as well as other products. Its products are applied primarily in the manufacture of electric wires, thin films, fibers, household electric products, automobile products, synthetic leathers, cloths, inks, plastic products, stationeries, textile products and paper boxes, among others. The Company distributes its products principally in Taiwan, Japan, Southeast Asia and the United States. For the nine months ended 30 September 2013, Tah Kong Chemical Industrial Corp revenues increased 4% to NT$1.22B. Net income increased 15% to NT$81.8M. Revenues reflect Service Revenue increase of 30% to NT$1.8M. Net income benefited from Foreign Exchange Gain/Losses increase from NT$979K (expense) to NT$12.3M (income), G/L on Fin Assets - Fair Value increase from NT$482K to NT$4M (income), Miscellaneous Income increase of 90% to NT$4.6M (income)

Industry

Industry	Basic Chemical Manufacturing
ANZSIC 2006:	1812 - Basic Organic Chemical Manufacturing
ISIC Rev 4:	2011 - Manufacture of basic chemicals
NACE Rev 2:	2014 - Manufacture of other organic basic chemicals
NAICS 2012:	325130 - Synthetic Dye and Pigment Manufacturing
UK SIC 2007:	2014 - Manufacture of other organic basic chemicals
US SIC 1987:	2865 - Cyclic Organic Crudes and Intermediates, and organic Dyes and Pigments

Key Executives

Name	Title
Mingfa Huang	General Manager, Director
Meina Wu	Head of Finance, Head of Accounting
Zonghui Yang	Special Assistant
Jiahui Deng	Chairman of the Board
Liangjie Chen	Director

Significant Developments

Topic	#*	Most Recent Headline	Date
Dividends	1	Tah Kong Chemical Industrial Corp Announces FY 2012 Dividend Payment	22-Mar-2013

Financial Summary

As of 30-Sep-2013

Key Ratios	Company	Industry
Current Ratio (MRQ)	3.89	2.18
Quick Ratio (MRQ)	2.33	1.35
Debt to Equity (MRQ)	0.14	0.82
Sales 5 Year Growth	2.44	6.26
Net Profit Margin (TTM) %	5.81	10.56
Return on Assets (TTM) %	5.63	8.26
Return on Equity (TTM) %	7.36	22.07

Stock Snapshot

Traded: Gre Tai Security Market: 4706

As of 27-Dec-2013

   Financials in: TWD

Recent Price	18.00	EPS	1.03
52 Week High	18.35	Price/Sales	0.90
52 Week Low	14.35	Dividend Rate	1.00
Avg. Volume (mil)	0.0001	Price/Earnings	13.26
Market Value (mil)	1,422.54	Price/Book	1.11
		Beta	0.72

	Price % Change	Rel S&P 500%
4 Week	2.27%	0.73%
13 Week	11.46%	7.48%
52 Week	23.71%	10.86%
Year to Date	22.03%	10.09%

1 - Profit & Loss Item Exchange Rate: USD 1 = TWD 29.57962

2 - Balance Sheet Item Exchange Rate: USD 1 = TWD 29.012

Corporate Overview

Tah Kong Chemical Industrial Corp

Location
7F, No. 778, Section 4,
Pa Te Road, Nangang District
Taipei, 115
Taiwan

Tel:	886-2-27859081
Fax:	886-2-27850907

www.tkc.com.tw

Quote Symbol - Exchange
4706 - Gre Tai Security Market
Sales TWD(mil):	1,580.8
Assets TWD(mil):	1,609.4
Employees:	326
Fiscal Year End:	31-Dec-2012

Industry:	Chemical Manufacturing

Incorporation Date:	20-Apr-1966
Company Type:	Public Independent
Quoted Status:	Quoted

Chairman of the Board:	Jiahui Deng

Industry Codes

ANZSIC 2006 Codes:
1812	-	Basic Organic Chemical Manufacturing
1813	-	Basic Inorganic Chemical Manufacturing

ISIC Rev 4 Codes:
2011	-	Manufacture of basic chemicals

NACE Rev 2 Codes:
2014	-	Manufacture of other organic basic chemicals
2013	-	Manufacture of other inorganic basic chemicals

NAICS 2012 Codes:
325130	-	Synthetic Dye and Pigment Manufacturing
325180	-	Other Basic Inorganic Chemical Manufacturing

US SIC 1987:
2865	-	Cyclic Organic Crudes and Intermediates, and organic Dyes and Pigments
2819	-	Industrial Inorganic Chemicals, Not Elsewhere Classified

UK SIC 2007:
2014	-	Manufacture of other organic basic chemicals
2013	-	Manufacture of other inorganic basic chemicals

Business Description

Tah Kong Chemical Industrial Corp. is principally engaged in the manufacture and distribution of pigments. The Company provides processed pigments, including polyvinyl chloride (PVC) color pigments, polyolefin color pigments, polyurethane (PU) color pigments and color pastes for printing and dying, among others; organic pigments, including color pigment powders and wet pigment cakes, as well as other products. Its products are applied primarily in the manufacture of electric wires, thin films, fibers, household electric products, automobile products, synthetic leathers, cloths, inks, plastic products, stationeries, textile products and paper boxes, among others. The Company distributes its products principally in Taiwan, Japan, Southeast Asia and the United States. For the nine months ended 30 September 2013, Tah Kong Chemical Industrial Corp revenues increased 4% to NT$1.22B. Net income increased 15% to NT$81.8M. Revenues reflect Service Revenue increase of 30% to NT$1.8M. Net income benefited from Foreign Exchange Gain/Losses increase from NT$979K (expense) to NT$12.3M (income), G/L on Fin Assets - Fair Value increase from NT$482K to NT$4M (income), Miscellaneous Income increase of 90% to NT$4.6M (income).

More Business Descriptions

Manufacture and distribution of polyvinyl chloride (PVC) color pigments, polyurethane (PU) color pigments, color pastes for printing and dying; provision of technology services; distributes its products in Taiwan, the United States, Japan and Southeast Asia.

Financial Data

Financials in:	TWD(mil)
Revenue:	1,580.8
Net Income:	82.3
Assets:	1,609.4
Long Term Debt:	0.0
Total Liabilities:	323.4
Working Capital:	0.5
Date of Financial Data:	31-Dec-2012

1 Year Growth

-0.3%

-19.6%

-1.2%

Market Data

Quote Symbol:	4706
Exchange:	Gre Tai Security Market
Currency:	TWD
Stock Price:	18.0
Stock Price Date:	12-27-2013
52 Week Price Change %:	23.7
Market Value (mil):	1,422,542.0
SEDOL:	6119524
ISIN:	TW0004706007
Equity and Dept Distribution:
FY'05 interims B/S reclassified. FY'09 Q4 I/S is CLA.

Subsidiaries

Company	Percentage Owned	Country
TKC International Investment Corp	100%	SAMOA
Tah Kong Fine Chemical (Kunshan) Co Ltd	100%	PEOPLE'S REPUBLIC OF CHINA

Key Corporate Relationships

Auditor:	Deloitte & Touche LLP
Auditor:	Deloitte & Touche, Deloitte & Touche LLP

Tah Kong Chemical Industrial Corp Taipei, , Taiwan, Tel: 886-2-27859081, URL: http://www.tkc.com.tw/

Executives Report

Board of Directors

Name	Title	Function	Source
Jiahui Deng	Chairman of the Board	Chairman	Reuters
Biography: Deng Jiahui has been serving as Chairman of the Board in Tah Kong Chemical Industrial Corp since May 30, 1996. Deng also serves as Chairman of the Board in a chemical company, an investment company and an optoelectronic material company, as well as Director in another chemical company, another investment company, a chemical industry company, TKC INTERNATIONAL INVESTMENT CORP and TKC Global Investment corp. Deng used to be Manager in GatewayProduct Co. Deng holds a Master's degree from New York University, the United States. Education: New York University, M
Liangjie Chen	Director	Director/Board Member	Reuters
Biography: Chen Liangjie has been serving as Director in Tah Kong Chemical Industrial Corp since June 9, 2011. Chen also serves as Director in TKC INTERNATIONAL INVESTMENT CORP, as well as General Manager in an optoelectronic material company. Chen used to be Finance Manager and Manager-General Affairs Division in another company.
Masahiro Ito	Director	Director/Board Member
Kazuyuki Matsuo	Director	Director/Board Member
Yoichi Nagai	Director	Director/Board Member

Executives

Name	Title	Function
Mingfa Huang	General Manager, Director	Division Head Executive
Biography: Huang Mingfa has been serving as General Manager and Director in Tah Kong Chemical Industrial Corp since December 1, 2001. Huang also serves as Director in another chemical industry company, an investment company and TKC Global Investment corp., as well as General Manager in a chemical company. Compensation/Salary:3,327,000 Compensation Currency: TWD
Meina Wu	Head of Finance, Head of Accounting	Finance Executive
Zonghui Yang	Special Assistant	Other

Tah Kong Chemical Industrial Corp

Significant Developments

Tah Kong Chemical Industrial Corp Announces FY 2012 Dividend Payment

Mar 22, 2013

Tah Kong Chemical Industrial Corp announced that it will pay a cash dividend of NTD 1 per share, or NTD 79,030,093 in total to shareholders for fiscal year 2012.

Annual Income Statement

Tah Kong Chemical Industrial Corp

Taipei, Taiwan, Tel: 886-2-27859081, URL: http://www.tkc.com.tw/

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2012	Reclassified Normal 31-Dec-2012	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009
Filed Currency	TWD	TWD	TWD	TWD	TWD
Exchange Rate (Period Average)	29.57962	29.39004	31.497037	33.023867	31.543497
Auditor	Deloitte & Touche LLP	Deloitte & Touche LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation
Net Sales	0.1	0.1	0.1	0.1	0.0
Gross Revenue	53.5	54.0	51.9	41.2	48.6
Sales Returns and Allowances	-0.1	-0.2	-0.2	-0.1	-0.5
Revenue	53.4	53.9	51.8	41.2	48.2
Other Revenue	-	-	0.3	0.3	0.2
Other Revenue, Total	-	-	0.3	0.3	0.2
Total Revenue	53.4	53.9	52.1	41.5	48.4
Cost of Revenue	43.6	43.8	41.8	33.5	40.6
Cost of Revenue, Total	43.6	43.8	41.8	33.5	40.6
Gross Profit	9.8	10.1	10.0	7.7	7.6
Selling/General/Administrative Expense	4.9	5.0	4.7	3.8	4.5
Total Selling/General/Administrative Expenses	4.9	5.0	4.7	3.8	4.5
Research & Development	1.3	1.4	1.4	1.2	1.3
Depreciation	-	-	0.0	-	-
Depreciation/Amortization	-	-	0.0	-	-
Impairment-Assets Held for Use	-	-	0.0	0.0	0.0
Unusual Expense (Income)	-	-	0.0	0.0	0.0
Total Operating Expense	49.8	50.3	48.0	38.5	46.3
Operating Income	3.6	3.7	4.1	3.0	2.1
Interest Expense - Non-Operating	-0.1	-0.1	-0.1	-0.1	-0.2
Interest Expense, Net Non-Operating	-0.1	-0.1	-0.1	-0.1	-0.2
Interest Income - Non-Operating	0.0	0.0	0.0	0.0	0.0
Investment Income - Non-Operating	-0.4	0.3	0.0	-0.2	0.4
Interest/Investment Income - Non-Operating	-0.3	0.3	0.1	-0.2	0.4
Interest Income (Expense) - Net Non-Operating Total	-0.4	0.2	0.0	-0.3	0.3
Gain (Loss) on Sale of Assets	0.0	0.0	0.0	0.0	0.0
Other Non-Operating Income (Expense)	0.2	0.2	0.3	0.0	0.2
Other, Net	0.2	0.2	0.3	0.0	0.2
Income Before Tax	3.4	4.0	4.4	2.7	2.5
Total Income Tax	0.6	0.6	0.8	0.4	0.4
Income After Tax	2.8	3.5	3.6	2.3	2.1
Minority Interest	0.0	0.0	0.0	0.0	0.0
Net Income Before Extraord Items	2.8	3.5	3.6	2.3	2.1
Net Income	2.8	3.5	3.6	2.3	2.1
Income Available to Common Excl Extraord Items	2.8	3.5	3.6	2.3	2.1
Income Available to Common Incl Extraord Items	2.8	3.5	3.6	2.3	2.1
Basic/Primary Weighted Average Shares	79.0	79.0	79.0	79.0	79.0
Basic EPS Excl Extraord Items	0.04	0.04	0.05	0.03	0.03
Basic/Primary EPS Incl Extraord Items	0.04	0.04	0.05	0.03	0.03
Dilution Adjustment	0.0	-	-	-	-
Diluted Net Income	2.8	3.5	3.6	2.3	2.1
Diluted Weighted Average Shares	79.4	79.0	79.0	79.0	79.0
Diluted EPS Excl Extraord Items	0.04	0.04	0.05	0.03	0.03
Diluted EPS Incl Extraord Items	0.04	0.04	0.05	0.03	0.03
Dividends per Share - Common Stock Primary Issue	0.03	0.03	0.03	0.02	0.02
Gross Dividends - Common Stock	2.7	2.7	2.5	1.7	1.3
Interest Expense, Supplemental	0.1	0.1	0.1	0.1	0.2
Interest Capitalized, Supplemental	-	-	0.0	0.0	0.0
Depreciation, Supplemental	2.2	2.2	2.1	2.2	2.7
Total Special Items	0.0	0.0	0.0	0.0	0.0
Normalized Income Before Tax	3.4	4.0	4.4	2.7	2.5
Effect of Special Items on Income Taxes	0.0	0.0	0.0	0.0	0.0
Inc Tax Ex Impact of Sp Items	0.6	0.6	0.8	0.4	0.4
Normalized Income After Tax	2.8	3.5	3.6	2.3	2.1
Normalized Inc. Avail to Com.	2.8	3.5	3.6	2.3	2.1
Basic Normalized EPS	0.04	0.04	0.05	0.03	0.03
Diluted Normalized EPS	0.03	0.04	0.05	0.03	0.03
Amort of Intangibles, Supplemental	0.0	0.0	0.0	0.0	0.0
Research & Development Exp, Supplemental	1.3	1.4	1.4	1.2	1.3
Normalized EBIT	3.6	3.7	4.1	3.0	2.1
Normalized EBITDA	5.8	5.9	6.2	5.2	4.8
Current Tax - Total	0.6	0.4	0.4	0.4	0.3
Current Tax - Total	0.6	0.4	0.4	0.4	0.3
Deferred Tax - Total	0.0	0.1	-0.1	0.0	0.1
Deferred Tax - Total	0.0	0.1	-0.1	0.0	0.1
Other Tax	0.0	-	0.5	0.0	0.0
Income Tax - Total	0.6	0.6	0.8	0.4	0.4
Interest Cost - Domestic	0.2	0.2	0.2	0.2	0.2
Service Cost - Domestic	0.1	0.1	0.1	0.1	0.2
Expected Return on Assets - Domestic	-0.1	-0.1	-0.1	-0.1	-0.2
Actuarial Gains and Losses - Domestic	0.0	0.0	0.1	0.1	0.1
Transition Costs - Domestic	0.1	0.1	-	0.0	0.0
Domestic Pension Plan Expense	0.3	0.2	0.2	0.2	0.3
Defined Contribution Expense - Domestic	0.2	0.2	-	-	-
Total Pension Expense	0.4	0.4	0.2	0.2	0.3
Discount Rate - Domestic	1.88%	2.00%	2.00%	2.00%	2.50%
Expected Rate of Return - Domestic	1.88%	2.00%	2.00%	2.00%	2.50%
Compensation Rate - Domestic	2.00%	2.50%	2.00%	1.75%	1.75%
Total Plan Interest Cost	0.2	0.2	0.2	0.2	0.2
Total Plan Service Cost	0.1	0.1	0.1	0.1	0.2
Total Plan Expected Return	-0.1	-0.1	-0.1	-0.1	-0.2

Annual Balance Sheet

Financials in: USD (mil)

Financial Glossary

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
UpdateType/Date	Restated Normal 30-Sep-2013	Restated Normal 30-Sep-2013	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009
Filed Currency	TWD	TWD	TWD	TWD	TWD
Exchange Rate	29.011999	30.279	29.1565	31.985	32.818
Auditor	Deloitte & Touche LLP	Deloitte & Touche LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation
Cash	5.8	3.6	-	-	-
Cash & Equivalents	3.4	3.0	6.7	7.8	3.6
Short Term Investments	0.9	0.8	1.0	0.7	0.2
Cash and Short Term Investments	10.0	7.5	7.7	8.5	3.8
Accounts Receivable - Trade, Gross	11.2	9.6	11.5	9.4	5.3
Provision for Doubtful Accounts	-0.4	-0.3	-0.4	-0.3	-0.2
Trade Accounts Receivable - Net	10.8	9.3	11.2	9.1	7.3
Notes Receivable - Short Term	2.7	2.8	3.6	2.6	1.9
Other Receivables	0.1	0.1	0.1	0.3	0.2
Total Receivables, Net	13.6	12.1	14.9	12.0	9.4
Inventories - Finished Goods	6.5	6.8	6.0	5.3	7.0
Inventories - Work In Progress	1.6	1.7	1.6	1.2	1.2
Inventories - Raw Materials	9.1	10.1	9.5	5.6	6.6
Inventories - Other	0.7	0.2	-0.2	-0.3	-0.3
Total Inventory	17.9	18.8	16.9	11.7	14.5
Prepaid Expenses	-	-	0.4	0.3	0.3
Other Current Assets	0.3	0.3	0.2	0.7	0.7
Other Current Assets, Total	0.3	0.3	0.2	0.7	0.7
Total Current Assets	41.7	38.7	40.1	33.3	28.7
Buildings	-	-	16.3	15.0	14.7
Machinery/Equipment	-	-	37.1	33.4	32.8
Construction in Progress	-	-	0.2	0.3	0.0
Other Property/Plant/Equipment	-	-	0.0	0.0	0.1
Property/Plant/Equipment - Gross	-	-	53.6	48.8	47.6
Accumulated Depreciation	-	-	-39.8	-34.9	-32.4
Property/Plant/Equipment - Net	12.4	13.8	15.3	15.2	16.5
Intangibles, Net	0.0	0.0	0.5	0.5	0.5
LT Investment - Affiliate Companies	-	-	0.1	0.1	0.0
LT Investments - Other	0.2	0.2	0.0	0.0	0.1
Long Term Investments	0.2	0.2	0.1	0.1	0.1
Deferred Charges	-	-	0.0	0.0	0.0
Deferred Income Tax - Long Term Asset	0.6	0.6	0.2	0.0	0.0
Other Long Term Assets	0.6	0.5	0.2	0.2	0.2
Other Long Term Assets, Total	1.2	1.1	0.4	0.2	0.2
Total Assets	55.5	53.8	56.4	49.2	45.9
Accounts Payable	1.3	0.9	2.3	1.8	1.3
Accrued Expenses	-	-	2.8	2.0	2.0
Notes Payable/Short Term Debt	3.7	3.8	5.2	4.7	4.1
Customer Advances	-	-	0.0	0.0	0.0
Income Taxes Payable	0.5	0.1	0.4	0.4	0.3
Other Payables	2.7	3.6	0.1	0.2	0.1
Other Current Liabilities	0.1	0.0	0.0	0.0	0.0
Other Current liabilities, Total	3.3	3.7	0.5	0.6	0.4
Total Current Liabilities	8.3	8.3	10.9	9.1	7.8
Total Long Term Debt	0.0	0.0	0.0	0.0	0.0
Total Debt	3.7	3.8	5.2	4.7	4.1
Deferred Income Tax - LT Liability	0.1	0.1	-	0.0	0.0
Deferred Income Tax	0.1	0.1	-	0.0	0.0
Minority Interest	0.0	0.0	0.0	0.0	0.0
Reserves	-	-	0.1	0.1	0.1
Pension Benefits - Underfunded	2.7	2.6	1.6	1.5	1.4
Other Long Term Liabilities	0.0	0.0	0.0	0.0	0.0
Other Liabilities, Total	2.7	2.6	1.7	1.6	1.5
Total Liabilities	11.1	11.1	12.6	10.7	9.4
Common Stock	27.2	26.1	27.1	24.7	24.1
Common Stock	27.2	26.1	27.1	24.7	24.1
Additional Paid-In Capital	0.0	0.0	0.2	0.1	0.0
Retained Earnings (Accumulated Deficit)	17.4	16.6	16.1	12.9	11.4
Unrealized Gain (Loss)	-	-	0.2	0.2	0.2
Translation Adjustment	-0.4	0.0	0.2	0.7	0.8
Other Equity, Total	-0.4	0.0	0.2	0.7	0.8
Total Equity	44.3	42.7	43.8	38.6	36.5
Total Liabilities & Shareholders’ Equity	55.5	53.8	56.4	49.2	45.9
Shares Outstanding - Common Stock Primary Issue	79.0	79.0	79.0	79.0	79.0
Total Common Shares Outstanding	79.0	79.0	79.0	79.0	79.0
Treasury Shares - Common Stock Primary Issue	0.0	0.0	0.0	0.0	0.0
Employees	-	-	340	358	355
Number of Common Shareholders	2,728	2,660	-	2,862	2,642
Deferred Revenue - Current	-	-	0.0	0.0	0.0
Pension Obligation - Domestic	-	-	8.1	7.4	7.2
Plan Assets - Domestic	-	-	5.4	5.2	4.8
Funded Status - Domestic	-	-	-2.7	-2.3	-2.4
Accumulated Obligation - Domestic	-	-	6.8	6.3	6.0
Total Funded Status	-	-	-2.7	-2.3	-2.4
Discount Rate - Domestic	-	-	2.00%	2.00%	2.50%
Expected Rate of Return - Domestic	-	-	2.00%	2.00%	2.50%
Compensation Rate - Domestic	-	-	2.00%	1.75%	1.75%
Accrued Liabilities - Domestic	-2.7	-2.6	-1.6	-1.5	-1.4
Net Assets Recognized on Balance Sheet	-2.7	-2.6	-1.6	-1.5	-1.4
Total Plan Obligations	-	-	8.1	7.4	7.2
Total Plan Assets	-	-	5.4	5.2	4.8

Annual Cash Flows

Financials in: USD (mil)

Financial Glossary

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2012	Reclassified Normal 31-Dec-2012	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009
Filed Currency	TWD	TWD	TWD	TWD	TWD
Exchange Rate (Period Average)	29.57962	29.39004	31.497037	33.023867	31.543497
Auditor	Deloitte & Touche LLP	Deloitte & Touche LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation
Net Income/Starting Line	2.8	3.5	3.6	2.3	2.1
Depreciation	2.2	2.3	2.1	2.2	2.7
Depreciation/Depletion	2.2	2.3	2.1	2.2	2.7
Amortization of Intangibles	-	-	0.0	0.0	0.0
Amortization	-	-	0.0	0.0	0.0
Deferred Taxes	0.0	0.1	0.5	0.0	0.1
Unusual Items	0.0	0.0	0.0	0.2	0.0
Equity in Net Earnings (Loss)	0.0	0.1	0.0	0.1	0.0
Other Non-Cash Items	0.5	0.1	0.0	0.1	0.1
Non-Cash Items	0.5	0.2	0.0	0.3	0.1
Accounts Receivable	-1.0	2.3	-1.6	-2.1	2.3
Inventories	1.2	-2.6	-3.7	3.1	-2.6
Prepaid Expenses	-	-	0.0	0.0	-0.1
Other Assets	0.1	0.0	-0.1	-0.5	-0.1
Accounts Payable	0.4	-1.4	0.3	0.8	-0.9
Accrued Expenses	-0.6	0.0	0.6	-0.1	0.5
Taxes Payable	0.4	-0.3	0.0	0.1	0.1
Other Liabilities	-0.1	-0.1	0.0	0.3	-0.4
Changes in Working Capital	0.4	-2.1	-4.6	1.5	-1.3
Cash from Operating Activities	5.9	4.0	1.5	6.3	3.8
Purchase of Fixed Assets	-0.5	-0.9	-1.0	-0.6	-0.3
Purchase/Acquisition of Intangibles	0.0	0.0	0.0	-	-
Capital Expenditures	-0.5	-0.9	-1.1	-0.6	-0.3
Sale of Fixed Assets	0.0	0.0	0.0	0.0	0.0
Sale/Maturity of Investment	-	-	0.0	0.0	0.0
Investment, Net	0.0	0.1	-0.1	0.0	0.0
Other Investing Cash Flow	0.0	0.0	0.0	-0.4	0.0
Other Investing Cash Flow Items, Total	0.0	0.1	-0.1	-0.4	0.0
Cash from Investing Activities	-0.5	-0.8	-1.1	-1.0	-0.3
Other Financing Cash Flow	0.0	0.0	-0.1	0.1	-0.1
Financing Cash Flow Items	0.0	0.0	-0.1	0.1	-0.1
Cash Dividends Paid - Common	-2.7	-2.7	-1.8	-1.2	-1.5
Total Cash Dividends Paid	-2.7	-2.7	-1.8	-1.2	-1.5
Short Term Debt, Net	-0.4	-0.7	0.0	-0.2	-0.4
Issuance (Retirement) of Debt, Net	-0.4	-0.7	0.0	-0.2	-0.4
Cash from Financing Activities	-3.0	-3.4	-1.9	-1.2	-2.0
Foreign Exchange Effects	-0.2	0.4	-0.3	-0.1	0.2
Net Change in Cash	2.1	0.2	-1.7	3.9	1.6
Net Cash - Beginning Balance	6.8	6.6	7.9	3.6	2.2
Net Cash - Ending Balance	8.9	6.9	6.2	7.6	3.8
Cash Interest Paid	0.1	0.1	0.1	0.1	0.2
Cash Taxes Paid	0.3	0.7	0.4	0.4	0.2

Tah Kong Chemical Industrial Corp Taipei, Taiwan, Tel: 886-2-27859081, URL: http://www.tkc.com.tw/

Annual Income Statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2012	Reclassified Normal 31-Dec-2012	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009
Filed Currency	TWD	TWD	TWD	TWD	TWD
Exchange Rate (Period Average)	29.57962	29.39004	31.497037	33.023867	31.543497
Auditor	Deloitte & Touche LLP	Deloitte & Touche LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation
Gross Sales	53.5	54.0	51.9	41.2	48.6
Sales Returns	0.0	0.0	-0.1	0.0	-0.4
Sales Discounts and Allowances	-0.1	-0.1	-0.1	-0.1	-0.1
Service Revenue	0.1	0.1	0.1	0.1	0.0
Other Operating Revenues	-	-	0.3	0.3	0.2
Total Revenue	53.4	53.9	52.1	41.5	48.4
Cost of Sales	43.6	43.7	41.5	33.2	40.4
Cost of Services	0.1	0.1	0.1	0.0	0.0
Other Operating Cost	-	-	0.3	0.2	0.2
Selling Expenses	2.4	2.4	2.3	1.8	2.2
General and Administrative Expenses	2.5	2.7	2.5	2.1	2.3
Research and Development Expenses	1.3	1.4	1.4	1.2	1.3
Depreciation of Idle Assets	-	-	0.0	-	-
Other Impairment Loss	-	-	0.0	0.0	0.0
Total Operating Expense	49.8	50.3	48.0	38.5	46.3
Interest Income	0.0	0.0	0.0	0.0	0.0
Dividend Income	-	-	0.0	0.0	0.0
Gain on Equity Investment	-	-	0.0	-	-
Gains on Disposal of Fixed Assets	0.0	-	0.0	-	-
Gain/Loss on Sale of Investments	0.0	-	0.0	-0.1	0.0
Gain/Loss on Foreign Exchange	-0.4	0.4	0.0	-0.1	0.5
Rent Income	-	-	-	0.0	0.0
Gain/Loss on Fncl. Asst. Valuation	0.0	-0.1	0.0	0.1	0.0
Technology&Adaministrative Service Incom	0.0	0.0	-	-	-
Miscellaneous Income	0.2	0.2	0.4	0.2	0.2
Interest Expenses	-0.1	-0.1	-0.1	-0.1	-0.2
Financial Expense	-	-	0.0	0.0	0.0
Loss on Equity Investment	0.0	-0.1	0.0	-0.1	0.0
Loss on Disposal of Fixed Assets	0.0	0.0	0.0	0.0	0.0
Loss on Other Investments	-	-	-	0.0	-0.1
Miscellaneous Disbursements	0.0	-0.1	0.0	-0.2	0.0
Net Income Before Taxes	3.4	4.0	4.4	2.7	2.5
Provision for Income Taxes	0.6	0.6	0.8	0.4	0.4
Net Income After Taxes	2.8	3.5	3.6	2.3	2.1
Minority Interests	0.0	0.0	0.0	0.0	0.0
Net Income Before Extra. Items	2.8	3.5	3.6	2.3	2.1
Net Income	2.8	3.5	3.6	2.3	2.1
Income Available to Com Excl ExtraOrd	2.8	3.5	3.6	2.3	2.1
Income Available to Com Incl ExtraOrd	2.8	3.5	3.6	2.3	2.1
Basic Weighted Average Shares	79.0	79.0	79.0	79.0	79.0
Basic EPS Excluding ExtraOrdinary Items	0.04	0.04	0.05	0.03	0.03
Basic EPS Including ExtraOrdinary Items	0.04	0.04	0.05	0.03	0.03
Dilution Adjustment	0.0	-	-	-	-
Diluted Net Income	2.8	3.5	3.6	2.3	2.1
Diluted Weighted Average Shares	79.4	79.0	79.0	79.0	79.0
Diluted EPS Excluding ExtraOrd Items	0.04	0.04	0.05	0.03	0.03
Diluted EPS Including ExtraOrd Items	0.04	0.04	0.05	0.03	0.03
DPS-Ordinary Shares	0.03	0.03	0.03	0.02	0.02
Gross Dividends - Common Stock	2.7	2.7	2.5	1.7	1.3
Normalized Income Before Taxes	3.4	4.0	4.4	2.7	2.5
Inc Tax Ex Impact of Sp Items	0.6	0.6	0.8	0.4	0.4
Normalized Income After Taxes	2.8	3.5	3.6	2.3	2.1
Normalized Inc. Avail to Com.	2.8	3.5	3.6	2.3	2.1
Basic Normalized EPS	0.04	0.04	0.05	0.03	0.03
Diluted Normalized EPS	0.03	0.04	0.05	0.03	0.03
Interest Expense, Supplemental	0.1	0.1	0.1	0.1	0.2
Interest Capitalized	-	-	0.0	0.0	0.0
R&D Expense, Supplemental	1.3	1.4	1.4	1.2	1.3
Depreciation - Operating Cost	2.0	2.0	1.9	2.0	2.5
Depreciation - Operating Expense	0.2	0.2	0.2	0.2	0.2
Amortization - Operating Cost	0.0	-	-	-	-
Amortization - Operating Expense	0.0	0.0	0.0	0.0	0.0
Current Tax Payable	0.6	0.4	0.4	0.4	0.3
Current Tax - Total	0.6	0.4	0.4	0.4	0.3
Deferred Tax	0.0	0.1	-0.1	0.0	0.1
Deferred Tax - Total	0.0	0.1	-0.1	0.0	0.1
Other Tax	0.0	-	0.5	0.0	0.0
Income Tax - Total	0.6	0.6	0.8	0.4	0.4
Service Cost	0.1	0.1	0.1	0.1	0.2
Interest Cost	0.2	0.2	0.2	0.2	0.2
Expected Return on Plan Assets	-0.1	-0.1	-0.1	-0.1	-0.2
Amortization of Actuarial Gains/Losses	0.0	0.0	0.1	0.1	0.1
Amort. Transitional Benefit Obligation	0.1	0.1	-	0.0	0.0
Domestic Pension Plan Expense	0.3	0.2	0.2	0.2	0.3
Defined Contribution Expense - Domestic	0.2	0.2	-	-	-
Total Pension Expense	0.4	0.4	0.2	0.2	0.3
Discount Rate	1.88%	2.00%	2.00%	2.00%	2.50%
Rate of Compensation Increase	2.00%	2.50%	2.00%	1.75%	1.75%
Expected Rate of Return on Plan Assets	1.88%	2.00%	2.00%	2.00%	2.50%

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
UpdateType/Date	Restated Normal 30-Sep-2013	Restated Normal 30-Sep-2013	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009
Filed Currency	TWD	TWD	TWD	TWD	TWD
Exchange Rate	29.011999	30.279	29.1565	31.985	32.818
Auditor	Deloitte & Touche LLP	Deloitte & Touche LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation
Cash & Equivalents	3.4	3.0	-	-	-
Cash and Cash Equivalent	-	-	6.7	7.8	3.6
Financial Assets at Fair Value	0.9	0.8	-	-	-
Debt Investments without Active Market	0.0	0.0	-	-	-
Financial Assets At Fair Value- Current	-	-	0.9	0.7	0.2
Notes Receivables, Gross	2.8	2.9	-	-	-
Provision for Notes Receivables	-0.1	-0.1	-	-	-
Notes Receivable	-	-	3.6	2.6	1.8
Notes Receivable - Related Parties	-	-	-	0.0	0.0
Acc. Receiv.& Acc. Receiv. Related Part.	11.2	9.6	-	-	-
Accounts Receivable, Gross	-	-	8.9	7.3	5.3
Provision for Doubtful Accounts	-0.4	-0.3	-0.3	-0.2	-0.2
Accounts Receivable - Related Parties, N	-	-	-	-	2.2
Accounts Recei. - Related Parties, Gross	-	-	2.6	2.1	-
Pro. for Doubtful Acc. - Relate Parties	-	-	-0.1	0.0	-
Other Receivables	0.1	0.0	0.1	0.1	0.2
Other Receivables - Related Parties	0.0	0.0	0.0	0.2	0.0
Raw Material	9.0	10.0	9.4	5.5	6.5
Supplies	0.1	0.1	0.1	0.1	0.1
Work-in-Process	1.6	1.7	1.6	1.2	1.2
Finished Goods	6.5	6.8	6.0	5.3	7.0
Consignment Goods	0.0	0.0	0.0	0.0	0.2
Inventory in Transit	0.6	0.2	0.2	-	-
Other Invetories	-	-	-	0.0	0.0
Provision/Allowance for Inventory	-	-	-0.4	-0.3	-0.5
Prepayment	-	-	0.4	0.3	0.3
Other Financial Assets	-	-	0.1	0.0	0.0
Other Current Assets	0.3	0.3	0.2	0.7	0.7
Cash	5.8	3.6	-	-	-
Total Current Assets	41.7	38.7	40.1	33.3	28.7
Long Term Equity Investment	-	-	0.1	0.1	0.0
Investment in Properties	0.2	0.2	-	-	-
Long Term Investment - Cost Method	-	-	-	0.0	0.0
Other LT Investments	-	-	-	0.0	0.0
Other Financial Assets - Non-Current	-	-	0.0	0.0	0.0
Land	1.5	1.4	1.5	1.3	1.3
Buildings and Structures	-	-	16.3	15.0	14.7
Machinery and Equipment	-	-	19.6	17.5	17.3
Utilities Equipment	-	-	6.2	5.7	5.6
Testing Equipment	-	-	2.7	2.5	2.3
Pollution Prevention Equipment	-	-	4.6	4.1	4.1
Transportation Equipment	-	-	1.5	1.4	1.4
Miscellaneous Equipment	-	-	2.5	2.2	2.1
Assets Revaluation Increment	-	-	0.0	0.0	0.1
Accumulated Depreciation	-	-	-39.8	-34.9	-32.4
Construction in Pro. & Prepay. for Equip	-	-	0.2	0.3	0.0
Prepayment for Equipment	-	-	-	0.0	0.0
Intangible Assets	0.0	0.0	-	-	-
Computer Software	-	-	0.0	0.0	0.0
Land Use Right	-	-	0.5	0.5	0.5
LT Prepaid Rent	0.5	0.5	-	-	-
Idle Assets	-	-	0.2	0.2	0.2
Security Deposits Paid	-	-	0.0	0.0	0.0
Deferred Charges	-	-	0.0	0.0	0.0
Deferred Income Tax Assets	0.6	0.6	0.2	0.0	0.0
Other Assets - Other	0.1	0.0	-	-	-
Construction in Progress	-	0.1	-	-	-
Buildings and Structures, Net	7.8	8.2	-	-	-
Machinery and Equipment, Net	1.9	2.7	-	-	-
Utilities Equipment, Net	0.5	0.6	-	-	-
Testing Equipment, Net	0.1	0.2	-	-	-
Pollution Prevention Equipment, Net	0.2	0.3	-	-	-
Transportation Equipment, Net	0.2	0.2	-	-	-
Miscellaneous Equipment, Net	0.2	0.2	-	-	-
Total Assets	55.5	53.8	56.4	49.2	45.9
Short Term Borrowings	2.5	2.7	3.5	3.2	2.9
Short Term Notes & Bills Payable	-	-	-	0.0	0.3
Notes Payable	1.3	1.1	1.5	1.3	1.0
Other Notes Payable	-	-	0.2	0.2	0.1
Accounts Payable	1.3	0.9	2.1	1.7	0.9
Accounts Payable - Related Parties	0.0	0.0	0.2	0.1	0.0
Income Tax Payable	0.5	0.1	0.4	0.4	0.3
Accrued Expenses	-	-	2.8	2.0	2.0
Other Payables	2.7	3.6	0.1	0.2	0.1
Advance Receipts	-	-	0.0	0.0	0.0
Other Current Liabilities	0.1	0.0	0.0	0.0	0.0
Total Current Liabilities	8.3	8.3	10.9	9.1	7.8
Land Revaluation Increment Tax Reserve	-	-	0.1	0.1	0.1
Accrued Pension Liabilities	2.7	2.6	1.6	1.5	1.4
Other Long Term Liabilities	0.0	0.0	-	-	-
Deferred Income Tax Liabilities	0.1	0.1	-	0.0	0.0
Other Long Term Liabilities	-	-	0.0	0.0	0.0
Minority Interest	0.0	0.0	0.0	0.0	0.0
Total Liabilities	11.1	11.1	12.6	10.7	9.4
Common Stock	27.2	26.1	27.1	24.7	24.1
Capital Gain on Fixed Assets Disposal	0.0	0.0	-	-	-
Capital Surplus, Sale of Fixed Assets	-	-	0.0	0.0	0.0
Capital Surplus, Donated Assets Received	0.0	0.0	0.0	0.0	0.0
Capital Surplus, Long-term Investments	-	-	0.1	0.1	0.0
Legal Reserve	7.2	6.6	6.5	5.7	5.3
Special Reserve	1.4	1.3	1.1	0.3	0.2
Retained Earnings	8.8	8.7	8.4	6.9	5.9
Cumulative Translation Adjustment	-0.4	0.0	0.2	0.7	0.8
Unrealized Revaluation Increment	-	-	0.2	0.2	0.2
Total Equity	44.3	42.7	43.8	38.6	36.5
Total Liabilities & Shareholders' Equity	55.5	53.8	56.4	49.2	45.9
S/O-Ordinary Shares	79.0	79.0	79.0	79.0	79.0
Total Common Shares Outstanding	79.0	79.0	79.0	79.0	79.0
T/S-Ordinary Shares	0.0	0.0	0.0	0.0	0.0
Advance Receipt - Current	-	-	0.0	0.0	0.0
Full-Time Employees	-	-	340	358	355
Number of Common Shareholders	2,728	2,660	-	2,862	2,642
Benefit Obligation	-	-	8.1	7.4	7.2
Fair Value of Plan Assets	-	-	5.4	5.2	4.8
Funded Status	-	-	-2.7	-2.3	-2.4
Accumulated Benefit Obligation	-	-	6.8	6.3	6.0
Total Funded Status	-	-	-2.7	-2.3	-2.4
Discount Rate	-	-	2.00%	2.00%	2.50%
Rate of Compensation Increase	-	-	2.00%	1.75%	1.75%
Expected Rate of Return on Plan Assets	-	-	2.00%	2.00%	2.50%
Accrued Benefit Liability	-2.7	-2.6	-	-	-
Accrued Pension Liabilities	-	-	-1.6	-1.5	-1.4
Net Assets Recognized on Balance Sheet	-2.7	-2.6	-1.6	-1.5	-1.4

Annual Cash Flows

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2012	Reclassified Normal 31-Dec-2012	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009
Filed Currency	TWD	TWD	TWD	TWD	TWD
Exchange Rate (Period Average)	29.57962	29.39004	31.497037	33.023867	31.543497
Auditor	Deloitte & Touche LLP	Deloitte & Touche LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation
Net Income	2.8	3.5	3.6	2.3	2.1
Depreciation	2.2	2.3	2.1	2.2	2.7
Provision (Reversal of Provision) for Ba	0.0	0.0	-	-	-
Idle Assets - Depreciation Expenses	-	-	0.0	0.0	0.0
Amortization of Intangibles	-	-	0.0	0.0	0.0
G/L on Financial Assets Revaluation	0.0	0.1	0.0	-0.1	0.0
Investment Loss	-	-	-	0.0	0.1
Gain on Sale of Investments	-	-	0.0	0.1	0.0
Gain/Loss on Equity Investments	0.0	0.1	0.0	0.1	0.0
Other Impairment Loss	-	-	0.0	0.0	0.0
Other Loss	0.0	0.0	0.0	0.2	0.0
Loss on Fixed & Idles Assets Written-Off	-	-	-	0.0	0.0
G/L on Disposal of Fixed & Idle Assets	-	-	-	0.0	0.0
G/L on Disposal&Write-off of Properties	0.0	0.0	0.0	-	-
G/L on Disposal&Write-off of Idle Assets	-	-	0.0	-	-
Financial Assets at FV - Current	0.0	-0.1	-0.1	-0.5	-0.1
Notes Receivable	0.3	0.7	-0.7	-0.6	1.0
Notes Receivable-Related Parties	-0.1	0.0	-	-	-
Accounts Receivable	-0.9	1.0	-0.8	-1.6	1.1
Accounts Receivable-Related Parties	-0.3	0.5	-0.3	-	-
Other Receivables	0.0	0.1	0.0	0.1	0.2
Other Receivables-Related Parties	0.0	0.0	0.2	-	-
Other Current Assets	0.1	0.1	-	-	-
Inventories	1.2	-2.6	-3.7	3.1	-2.6
Prepayment	-	-	0.0	0.0	-0.1
Deferred Tax Assets	0.0	0.1	0.5	0.0	0.1
Notes Payable	0.2	-0.6	0.1	0.3	-0.5
Accounts Payable	0.4	-1.4	0.2	0.8	-0.9
Accounts Payable,Related Parties	-	-	0.1	-	-
Accrued Expenses	-0.6	0.0	0.6	-0.1	0.5
Other Current Liabilities	-0.2	0.5	-	-	-
Inventory Devaluation & Obsolescence	0.5	0.0	-	-	-
Tax Payable	0.4	-0.3	0.0	0.1	0.1
Advance Receipts	-	-	0.0	0.0	0.0
Accrued Pension Liabilities	0.0	0.0	0.0	0.0	0.1
Cash from Operating Activities	5.9	4.0	1.5	6.3	3.8
Other Accounts Receivable	-	-	0.0	-0.4	0.0
Other Financial Assets	0.0	0.1	-0.1	0.0	0.0
Disposal of Financial Assets at Cost	-	-	0.0	0.0	0.0
Disposal of Fixed Assets	0.0	0.0	0.0	0.0	0.0
Capital Expenditure	-0.5	-0.9	-1.0	-0.6	-0.3
Software Increase	0.0	0.0	0.0	-	-
Other Current Assets	-	-	0.0	0.0	0.0
Decrease in Refundable Deposits	0.0	0.0	0.0	0.0	0.0
Cash from Investing Activities	-0.5	-0.8	-1.1	-1.0	-0.3
Short Term Borrowings Increase/Decrease	-0.4	-0.7	0.0	0.1	-0.7
Sort Term Notes Increase/Decrease	-	-	0.0	-0.3	0.3
Other Note Payables	-	-	0.0	0.0	0.0
Other Payables Increase/Decrease	-	-	-0.2	0.1	0.0
Other Current Liabilities Inc.Dec.	0.0	0.0	0.0	0.0	0.0
Security Deposit Received	-	-	-	0.0	0.0
Safekeeping Funds	-	-	0.0	0.0	0.0
Cash Dividend - Common Stock	-2.7	-2.7	-1.8	-1.2	-1.5
Employees Bonus	-	-	-	0.0	-0.1
Directors Remuneration	-	-	-	0.0	0.0
Cash from Financing Activities	-3.0	-3.4	-1.9	-1.2	-2.0
Foreign Exchange Effects	-0.2	0.4	-0.3	-0.1	0.2
Net Change in Cash	2.1	0.2	-1.7	3.9	1.6
Net Cash - Beginning Balance	6.8	6.6	7.9	3.6	2.2
Net Cash - Ending Balance	8.9	6.9	6.2	7.6	3.8
Cash Interest Paid	0.1	0.1	0.1	0.1	0.2
Cash Taxes Paid	0.3	0.7	0.4	0.4	0.2

Tah Kong Chemical Industrial Corp Taipei, Taiwan, Tel: 886-2-27859081, URL: http://www.tkc.com.tw/

Financial Health

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Key Indicators USD (mil)
Â	Quarter Ending 30-Sep-2013	Quarter Ending Yr Ago	Annual Year End 31-Dec-2012	1 Year Growth	3 Year Growth	5 Year Growth
Total Revenue1 (?)	14.2	5.94%	53.4	-0.27%	4.91%	2.44%
Research & Development1 (?)	0.3	2.80%	1.3	-6.84%	1.13%	0.73%
Operating Income1 (?)	1.2	2.22%	3.6	-1.17%	2.97%	19.16%
Income Available to Common Excl Extraord Items1 (?)	1.1	6.92%	2.8	-19.60%	2.84%	7.38%
Basic EPS Excl Extraord Items1 (?)	0.01	6.91%	0.04	-19.60%	2.84%	7.38%
Capital Expenditures2 (?)	0.4	-4.76%	0.5	-43.91%	-9.92%	-15.49%
Cash from Operating Activities2 (?)	3.9	-0.92%	5.9	49.09%	-5.82%	4.04%
Free Cash Flow (?)	3.5	-0.41%	5.5	76.64%	-5.40%	8.04%
Total Assets3 (?)	58.5	5.58%	55.5	-1.17%	0.72%	1.12%
Total Liabilities3 (?)	14.5	18.41%	11.1	-3.53%	-1.74%	-1.84%
Total Long Term Debt3 (?)	0.0	-	0.0	-	-	-
Total Common Shares Outstanding3 (?)	79.0	0.00%	79.0	0.00%	0.00%	0.00%
1-ExchangeRate: TWD to USD Average for Period	29.872711	Â	29.579620	Â	Â	Â
2-ExchangeRate: TWD to USD Average for Period	29.737391	Â	29.579620	Â	Â	Â
3-ExchangeRate: TWD to USD Period End Date	29.552500	Â	29.011999	Â	Â	Â

Utility Industry Specific USD (mil)
Â	31-Dec-2010	31-Dec-2009	31-Dec-2008
Deferred Charges3 (?)	0.0	0.0	0.0
3-ExchangeRate: TWD to USD Period End Date	29.156500	31.985000	32.818000

Key Ratios
Â	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Profitability
Gross Margin (?)	18.38%	18.78%	19.24%	18.73%	15.79%
Operating Margin (?)	6.73%	6.80%	7.93%	7.12%	4.30%
Pretax Margin (?)	6.35%	7.48%	8.47%	6.55%	5.24%
Net Profit Margin (?)	5.21%	6.46%	6.85%	5.53%	4.44%
Financial Strength
Current Ratio (?)	5.00	4.64	3.69	3.67	3.67
Long Term Debt/Equity (?)	0.00	0.00	0.00	0.00	0.00
Total Debt/Equity (?)	0.08	0.09	0.12	0.12	0.11
Management Effectiveness
Return on Assets (?)	5.08%	6.25%	6.99%	4.90%	4.46%
Return on Equity (?)	6.38%	7.97%	8.95%	6.22%	5.72%
Efficiency
Receivables Turnover (?)	4.16	3.96	4.01	3.96	4.44
Inventory Turnover (?)	2.37	2.43	3.04	2.60	2.94
Asset Turnover (?)	0.98	0.97	1.02	0.89	1.01

Market Valuation USD (mil)
P/E (TTM) (?)	15.06	.	Enterprise Value2 (?)	40.7
Price/Sales (TTM) (?)	0.87	.	Enterprise Value/Revenue (TTM) (?)	0.74
Price/Book (MRQ) (?)	1.09	.	Enterprise Value/EBITDA (TTM) (?)	7.30
Market Cap as of 27-Dec-20131 (?)	47.4	.
1-ExchangeRate: TWD to USD on 27-Dec-2013	30.040485
2-ExchangeRate: TWD to USD on 30-Sep-2013	29.552500

Tah Kong Chemical Industrial Corp Taipei, Taiwan, Tel: 886-2-27859081, URL: http://www.tkc.com.tw/

Annual Ratios

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Financial Strength
Current Ratio (?)	5.00	4.64	3.69	3.67	3.67
Quick/Acid Test Ratio (?)	2.82	2.35	2.08	2.26	1.68
Working Capital1 (?)	33.3	30.4	29.2	24.2	20.9
Long Term Debt/Equity (?)	0.00	0.00	0.00	0.00	0.00
Total Debt/Equity (?)	0.08	0.09	0.12	0.12	0.11
Long Term Debt/Total Capital (?)	0.00	0.00	0.00	0.00	0.00
Total Debt/Total Capital (?)	0.08	0.08	0.11	0.11	0.10
Payout Ratio (?)	96.04%	77.22%	70.36%	73.11%	58.37%
Effective Tax Rate (?)	18.07%	13.76%	19.02%	15.80%	15.56%
Total Capital1 (?)	48.0	46.5	49.0	43.2	40.6
Efficiency
Asset Turnover (?)	0.98	0.97	1.02	0.89	1.01
Inventory Turnover (?)	2.37	2.43	3.04	2.60	2.94
Days In Inventory (?)	153.75	150.34	120.01	140.55	124.27
Receivables Turnover (?)	4.16	3.96	4.01	3.96	4.44
Days Receivables Outstanding (?)	87.68	92.10	90.94	92.10	82.16
Revenue/Employee2 (?)	-	-	165,484	119,557	130,991
Operating Income/Employee2 (?)	-	-	13,129	8,516	5,627
EBITDA/Employee2 (?)	-	-	19,697	14,812	12,954
Profitability
Gross Margin (?)	18.38%	18.78%	19.24%	18.73%	15.79%
Operating Margin (?)	6.73%	6.80%	7.93%	7.12%	4.30%
EBITDA Margin (?)	10.80%	10.97%	11.90%	12.39%	9.89%
EBIT Margin (?)	6.73%	6.80%	7.93%	7.12%	4.30%
Pretax Margin (?)	6.35%	7.48%	8.47%	6.55%	5.24%
Net Profit Margin (?)	5.21%	6.46%	6.85%	5.53%	4.44%
R&D Expense/Revenue (?)	2.50%	2.68%	2.65%	2.79%	2.64%
COGS/Revenue (?)	81.62%	81.22%	80.33%	80.75%	83.84%
SG&A Expense/Revenue (?)	9.15%	9.31%	9.09%	9.27%	9.22%
Management Effectiveness
Return on Assets (?)	5.08%	6.25%	6.99%	4.90%	4.46%
Return on Equity (?)	6.38%	7.97%	8.95%	6.22%	5.72%
Valuation
Free Cash Flow/Share2 (?)	0.07	0.04	0.01	0.07	0.04
Operating Cash Flow/Share 2 (?)	0.08	0.05	0.02	0.08	0.05
1-ExchangeRate: TWD to USD Period End Date	29.011999	30.279	29.1565	31.985	32.818
2-ExchangeRate: TWD to USD Average for Period	29.011999	30.279	29.1565	31.985	32.818

Current Market Multiples
Market Cap/Earnings (TTM) (?)	15.06
Market Cap/Equity (MRQ) (?)	1.09
Market Cap/Revenue (TTM) (?)	0.87
Market Cap/EBIT (TTM) (?)	13.57
Market Cap/EBITDA (TTM) (?)	8.64
Enterprise Value/Earnings (TTM) (?)	12.72
Enterprise Value/Equity (MRQ) (?)	0.92
Enterprise Value/Revenue (TTM) (?)	0.74
Enterprise Value/EBIT (TTM) (?)	11.46
Enterprise Value/EBITDA (TTM) (?)	7.30

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.54
UK Pound	1	Rs.101.08
Euro	1	Rs.83.38

INFORMATION DETAILS

Report Prepared by :

PDT

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.