MIRA INFORM REPORT

 

 

Report Date :

04.06.2014

 

IDENTIFICATION DETAILS

 

Name :

HOU CHI CHEMICAL CO., LTD.

 

 

Registered Office :

1F, No.56, Foo Chow St., Taipei

 

 

Country :

Taiwan

 

 

Date of Incorporation :

27.05.1959

 

 

Com. Reg. No.:

79138401

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and sales of chemicals

 

 

No. of Employees

50

 

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 :

Unknown

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, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Taiwan

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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

 

 

 

Company name and address

 

Company Name:

HOU CHI CHEMICAL CO., LTD.

Supplied Name:

HOU CHI CHEMICAL CO LTD.

Trading Address:

1F, No.56, Foo Chow St., Taipei Taiwan R.O.C.

Supplied Address:

1F No. 56, Foo Chow St, Taipei

Telephone Number:

+886-2-2332-8001

Fax Number:

+886-2-2305-4020

Notes: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

HOU CHI CHEMICAL CO., LTD.

Registered Address:

1F, No.56, Foo Chow St., Taipei Taiwan R.O.C.

Date of Foundation:

1959-5-27

Registration Number:

79138401

Registry:

Taipei City Government

Registered Capital:

NTD 112,000,000 (USD 3,808,000)

(As of 2014.05, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 112,000,000 (USD 3,808,000)

Legal Representatives:

Zhengmao Liu

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sales of chemicals, etc

Staff:

About 50 Employees

Listed at Stock Exchange:

No

Date of Last Annual Return:

2012-5-25

 

 

History

 

Subject was incorporated on 1959-5-27 with registered number 79138401 as Joint Stock Company in Taiwan.

 

Change of Name

Former Chinese Name

合記貿易股份有限公司

Current Chinese Name

合記化學股份有限公司

 

Former English Name

Hou Chi Trading Co., Ltd.

Current English Name

Hou Chi Chemical Co., Ltd.

 

 

Shareholders

 

           

Name

Subscription Shares

Zhengmao Liu

2,305,000
Dexing Liu

993,000

Qunmao Liu

224,000

Xinzhen Xu

2,285,000

 

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

 

 

Subsidiaries & Branches

 

Factory

Address:

No.20, Kejia 6th Road, Xizhou Li, Douliu City, Yunlin County, Taiwan

Date of Registration:

2010-4-20

Factory Registration Number:

99709560

Factory Manager:

Zhengmao Liu

Status:

In Production

Date of Last Annual Return:

2012-3-20

Major Products:

184 synthetic resin, plastic, rubber

192 coating, dye, pigment

199 other chemical product

 

Related Companies

1

Name:

Proclamation & Faith Material Science Co., Ltd.

Address:

1F, No.56, Foo Chow St., Taipei Taiwan R.O.C.

2

Name:

Doxa Chemical Co., Ltd.

Address:

1F, No.56, Foo Chow St., Taipei Taiwan R.O.C.

 

Offices:

1

Name

Shanghai Office

Address

Building A, No.38, Kangdian Road, Chedun Town, Songjiang District, Shanghai City, China

Telephone Number

+86-21-3777-2188

Fax Number

+86-21-3777-2282

2

Name

Guangzhou Office

Address

801, No. 730 Yingbin Rd., Panyu District, Guangzhou, China. 511400

Telephone Number

+86-20-2288-3638

Fax Number

+86-20-2288-3639

 

 

Personnel Information

 

Core Management

 

Directors

1

Name

Zhengmao Liu

Position

Board Chairman

2

Name

Dexing Liu

Position

Director

3

Name

Qunmao Liu

Position

Director

4

Name

Xinzhen Xu

Position

Supervisor

 

 

Personnel Structure

 

Total Employees

About 50 Employees

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

1F, No.56, Foo Chow St., Taipei Taiwan R.O.C.

 

Production Information

 

Subject is engaged in manufacturing of chemicals, etc.

Subject has a factory in Yunlin County, Taiwan for production.

 

Purchase Information

 

The registered activities of subject:

Business Code

Details

C801100

Manufacturing of synthetic resin and plastic

C802120

Manufacturing of industrial auxiliaries

F106010

Wholesale of hardware

F107010

Wholesale of paint and coating

F107170

Wholesale of industrial auxiliaries

F107200

Wholesale of chemical materials

F107990

Wholesale of other chemical products

F109070

Wholesale of stationery, musical instrument, recreational supplies

F113010

Wholesale of machinery

F113050

Wholesale of computer and office equipment

F114010

Wholesale of automobile

F114030

Wholesale of automobile and motor components

F114060

Wholesale of ship and components

F114070

Wholesale of aircraft and components

F206010 

Retail of hardware

F207010

Retail of paint and coating

F207990

Retail of other chemical products

F209060

Retail of stationery, musical instrument, recreational supplies

F213030

Retail of computer and office equipment

F213080

Retail of mechanical appliance

F214010

Retail of automobile

F214030

Retail of automobile and motor components

F214060

Retail of ship and components

F214070

Retail of aircraft and components

F401010

International trade business

E603050

Automatic control equipment engineering

F113030

Wholesale of precise instrument

F213100

Retail of pollution-prevention equipment

ZZ99999

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

 

The raw materials for production are mostly purchased in domestic market.

It is introduced that subject also operates as sales agency for oversea companies and purchases products from Japan, USA and Europe, etc.

 

Sales Information

 

Subject is engaged in sale of chemicals, etc.

The major products sold by subject include organic pigments, aluminum paste, additives and advanced material, etc.

The products are applied to the industries of paint, ink and plastic, etc.

Subject’s sales regions include domestic market, Southeast Asia, Europe and America, etc.

One of Subject’s major customers is Rochesa S/A Tintas E Vernizes.

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase

Product

Terms

Proportion

Raw materials

T/T, Cash, etc

100%

 

Foreign Purchase

Product

Terms

Proportion

Chemicals, etc

L/C, T/T, etc

100%

 

Sales

 

Domestic Markets

Product

Terms

Proportion

Chemicals, etc

T/T, Cash, etc

100%

 

Export

Product

Terms

Proportion

Chemicals, etc

L/C, T/T, 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.

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

 

 

Bankers

 

Name

Taiwan Bank

 

 

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. Dai

Department

Sales Department

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.59.21

UK Pound

1

Rs.99.17

Euro

1

Rs.80.56

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.