MIRA INFORM REPORT

 

 

Report Date :

07.05.2014

 

IDENTIFICATION DETAILS

 

Name :

CHANG HWA COMMERCIAL BANK, LTD.

 

 

Registered Office :

No.38, Sec. 2, Ziyou Rd., Central Dist., Taichung City 40045

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

01.07.1950

 

 

Com. Reg. No.:

51811609

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Subject is engaged in providing commercial bank services

 

 

No. of Employees :

6,375 (as of 31.03.2013)

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 


 

Status :

Satisfactory

Payment Behaviour :

No complaints

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 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

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately 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

 

 

 

 


Contact Points

 

Company Name:

Chang Hwa Commercial Bank, Ltd.

Supplied Name:

Chang Hwa Commercial Bank Ltd

Trading Address:

No.57, Sec. 2, Zhongshan N. Rd., Zhongshan Dist., Taipei City 10412, Taiwan

Supplied Address:

Chi-Hsien Branch No 456 Chung-Hsiao 1st Road Kaohsiung

Telephone Number:

+886-2-2536-2951

Fax Number:

+886-2-8772-7706

Notes: The exact name and address are as above and the supplied address belongs to subject’s Qixian Branch.

 

 

Company Identification Details

 

Registered Name:

CHANG HWA COMMERCIAL BANK, LTD.

Registered Address:

No.38, Sec. 2, Ziyou Rd., Central Dist., Taichung City 40045, Taiwan (R.O.C.)

Date of Foundation:

1950-7-1

Registration Number:

51811609

Registry:

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

Registered Capital:

NTD 80,000,000,000 (USD 2,720,000,000)

(As of 2014.05, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 77,490,591,890 (USD 2,634,680,124)

Legal Representatives:

Huaizhou Chen

Legal Form:

Joint Stock Company

SWIFT Code:

CCBCTWTP

Principal Activities:

Commercial bank

Staff:

6,375 Employees (as of 2013-3-31)

Listed at Stock Exchange:

Yes; Stock Code: TPE: 2801

Date of Last Annual Return:

2013-10-15

 

 

History

 

Subject was incorporated on 1950-7-1 with registered number 51811609 as Joint Stock Company in Taiwan.

 

Subject listed on Taiwan Stock Exchange on 1962-2-15.

 

 

Shareholders

 

Name

Subscription Shares

Taishin Financial Holding Co., Ltd.

1,747,117,400   

Ministry of Finance

944,841,663

National Development Fund

213,067,359

Excel Chemical Corporation

15,714,118

Fan Deng Investment Co., Ltd. (Literal Translation)

76,124

 

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

 

Shareholder Information:

1

Registered Name:

Taishin Financial Holding Co., Ltd.

Registered Address:

No.118, Sec 4, Ren-ai Road, Da-an District, Taipei City, Taiwan

Date of Foundation:

2002-2-18

Registration Number:

80328055

Registry:

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

Registered Capital:

NTD 120,000,000,000 (USD 4,080,000,000)

(As of 2014.05, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 87,607,682,110 (USD 2,978,661,192)

Legal Representatives:

Dongliang Wu

Legal Form:

Joint Stock Company

Date of Last Annual Return:

2014-5-1

2

Registered Name:

Excel Chemical Corporation

Registered Address:

Rm. A, C, 9Fl., No.25, Sec.4, Jen Ai Rd., Taipei Taiwan R.O.C.

Date of Foundation:

1989-11-15

Registration Number:

23531178

Registry:

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

Registered Capital:

NTD 2,000,000,000 (USD 68,000,000)

(As of 2014.05, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 1,794,864,500 (USD 61,025,393)

Legal Representatives:

Chengqing Wu

Legal Form:

Joint Stock Company

Date of Last Annual Return:

2011-9-19

3

Registered Name:

Fan Deng Investment Co., Ltd. (Literal Translation)

Registered Address:

11th Floor, No.88, Sec 2, Xinyi Road, Da-an District, Taipei City, Taiwan

Date of Foundation:

2002-4-22

Registration Number:

13107693

Registry:

Taipei City Government

Registered Capital:

NTD 96,000,000 (USD 3,264,000)

(As of 2014.05, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 96,000,000 (USD 3,264,000)

Legal Representatives:

Ruiyun Ou

Legal Form:

Joint Stock Company

Date of Last Annual Return:

2013-12-4

 

 

Subsidiaries & Branches

 

Major Branch Companies

1

Name

Xike Branch

Address

No.215 & No.217, Sec 1, Datong Road, Xizhi District, New Taipei City, Taiwan

Registration Number

53668951

Date of Registration

2013-4-16

Status

Live

Manager Name

Shunfeng Luo

Date of Last Annual Return

--

2

Name

Guiren Branch

Address

No.218, Sec 2, Zhongshan Road, Guiren District, Tainan City, Taiwan

Registration Number

53025682

Date of Registration

2012-2-13

Status

Live

Manager Name

Hanhe Xiao

Date of Last Annual Return

2012-2-13

3

Name

Wufen Bu Branch

Address

1st Floor, No.92, Zhongpo North Road, Nangang District, Taipei City, Taiwan

Registration Number

53025487

Date of Registration

2012-2-7

Status

Live

Manager Name

Fanxiong Ran

Date of Last Annual Return

--

4

Name

Zuoying Branch

Address

No.280, Bo-ai 4th Road, Zuoying District, Kaohsiung City, Taiwan

Registration Number

53006496

Date of Registration

2011-2-10

Status

Live

Manager Name

Ruisen Yang

Date of Last Annual Return

2013-8-28

5

Name

Guanglong Branch

Address

No.577, 579, Guangfu South Road, Xinyi District, Taipei City, Taiwan

Registration Number

29000280

Date of Registration

2010-9-1

Status

Live

Manager Name

Guifen Chen

Date of Last Annual Return

2013-7-26

6

Name

Longtan Branch

Address

No.240-3, Zhongzheng Road, Longtan Township, Taoyuan County, Taiwan

Registration Number

28999243

Date of Registration

2010-8-10

Status

Live

Manager Name

Shengmou Peng

Date of Last Annual Return

2013-2-20

7

Name

Xinshu Branch

Address

No.266-1, Xinshu Road, Xinzhaung District, New Taipei City, Taiwan

Registration Number

28975946

Date of Registration

2009-3-10

Status

Live

Manager Name

Xiuxia Cai

Date of Last Annual Return

2014-3-4

8

Name

Dong Keelung Branch

Address

No.57, Xinyi Road, Keelung City, Taiwan

Registration Number

00404050

Date of Registration

2009-3-10

Status

Live

Manager Name

Yaozong Wang

Date of Last Annual Return

2013-2-20

9

Name

Wugu Industrial Area Branch

Address

No.3-1, Wugong 5th Road, Xinzhuang District, New Taipei City, Taiwan

Registration Number

28413565

Date of Registration

2007-4-17

Status

Live

Manager Name

Qingfu Lin

Date of Last Annual Return

2014-4-2

10

Name

Xinhu Branch

Address

No.180, Xinhu 2nd Road, Neihu District, Taipei City, Taiwan

Registration Number

28414311

Date of Registration

2007-5-8

Status

Live

Manager Name

Baohua Xu

Date of Last Annual Return

2012-11-14

11

Name

Qixian Branch

Address

3F., No.456, Zhongxiao 1st Rd., Xinxing Dist., Kaohsiung City, Taiwan

Tel:

+886-7-235-5658

Fax:

+886-7-235-5785

Note: Subject has 183 branches in Taiwan domestic market (as of 2013-3-31), we supplied some of its major branches as above for reference.

It is introduced that subject also has banking business outlets in New York, Tokyo, Landon, Hong Kong, Singapore and Kunshan City (China

 

 

Personnel Information

 

Core Management

 

Directors

1

Name

Huaizhou Chen

Position

Board Chairman

2

Name

Mingdao Zhang

Position

Director/ Manager

Date of Appointment

2013-9-30

3

Name

Huaixin Liang

Position

Director

4

Name

Chengqing Wu

Position

Executive Director

5

Name

Jiazhong Zheng

Position

Director

6

Name

Dengshan Chen

Position

Director

7

Name

Shangcheng Chen

Position

Independent Director

8

Name

Zhengxian Lin

Position

Director

9

Name

Guoyuan Liang

Position

Executive Director (Independent Director)

10

Name

Qinghua Ruan

Position

Supervisor

11

Name

Wenyou Wang

Position

Supervisor

12

Name

Zhishang Gao

Position

Supervisor

 

Personnel Structure

 

Total Employees

6,375 Employees (as of 2013-3-31)

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

No.57, Sec. 2, Zhongshan N. Rd., Zhongshan Dist., Taipei City 10412, Taiwan

 

Operation Information

 

·         Subject is engaged in providing commercial bank services

·         The major banking services provided by subject include deposits, loans, wealth management, securities, credit cards, net banking, syndicated loans, corporate financing, bills, hire-purchase and leasing, foreign exchange, insurance agency, and mandatory provident fund

·         It is introduced that subject can also provide the services of futures broking, insurance broking, general insurance underwriting, property management, trustee and nominee services through its subsidiaries.

·         Subject’s foreign banking business outlets covers New York, Tokyo, Landon, Hong Kong, Singapore and Kunshan City (China)

·         Subject is the 10th largest commercial bank by total assets in Taiwan and currently among the top 300 banks in the world.

·         The registered activities of subject:

Business Code

Details

H101021

Commercial bank

 

 

Balance Sheet

 

Units: NTD/000

 

2012-12-31

2011-12-31

Cash and cash equivalents

40,180,352.00

52,948,865.00

Due from the Central Bank and call loans to banks

103,411,156.00

79,667,740.00

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

35,613,670.00

25,020,162.00

Receivables - net

18,020,960.00

19,604,067.00

Discounts and loans-net

1,129,128,128.00

1,122,738,843.00

Available-for-sale financial assets - net

63,427,594.00

57,579,949.00

Held-to-maturity financial assets - net

170,696,300.00

180,376,569.00

Stock investments measured by equity method - net

465,745.00

390,890.00

Other financial assets - net

8,048,820.00

12,943,157.00

Fix assets - net

23,930,249.00

23,506,806.00

Intangible assets

86,991.00

62,074.00

Other assets

17,091,116.00

14,668,680.00

Assets

1,610,101,081.00

1,589,507,802.00

Deposits from the Central Bank and banks

100,530,198.00

112,053,512.00

Financial liabilities measured at fair value through profit or loss

1,912,629.00

2,035,814.00

Notes and bonds issued under repurchase agreement

5,629,554.00

10,726,892.00

Payables

32,863,279.00

31,956,087.00

Deposits and remittances

1,316,727,161.00

1,288,795,742.00

Bank notes payable

38,451,937.00

38,496,086.00

Accrued pension liability

767,223.00

452,697.00

Other financial liabilities

1,364,673.00

1,676,663.00

Other liabilities

8,045,522.00

7,636,353.00

Liabilities

1,506,292,176.00

1,493,829,846.00

Capital

72,421,114.00

67,683,284.00

Common stock

72,421,114.00

67,683,284.00

Retained earnings

20,888,598.00

18,509,344.00

Legal reserve

11,836,090.00

9,123,384.00

Special reserve

241,692.00

241,692.00

Unappropriated earnings

8,810,816.00

9,144,268.00

Other equity

10,499,193.00

9,485,328.00

Revaluation increment

11,011,800.00

10,339,717.00

Cumulative translation adjustments

-60,115.00

45,884.00

Net loss not recognized as pension cost

-439,555.00

-133,402.00

Unrealized gains (losses) on financial instruments

-12,937.00

-766,871.00

Stockholders' equity

103,808,905.00

(USD

3,529,502,770.00)

95,677,956.00

(USD 3,253,050,504.00)

(As of 2014.05, 1 NTD = 0.0340 USD)

 

 

Profit and Loss Account

 

Units: NTD/000

 

2012

2011

Interest incomes

26,871,532.00

(USD 913,632,088.00)

26,700,664.00

(USD 907,822,576.00)

Interest expenses

11,001,807.00

10,061,739.00

Net income (loss) of interest

15,869,725.00

16,638,925.00

Other non-interest net income (loss)

9,111,933.00

9,965,448.00

Net service fee (charge) income (losses)

3,375,397.00

3,427,753.00

Gain (loss) on financial assets or liabilities measured at fair value through profit and loss

1,343,291.00

1,210,479.00

Realized gain (loss) on available-for-sale financial assets

300,733.00

-99,194.00

Income (losses) from equity investments under the equity method

321,996.00

274,601.00

Foreign exchange gains (losses), net

95,365.00

483,252.00

Impairment loss on assets (reversal of impairment loss on assets)

-21,736.00

0.00

Other non-interest net income (loss)

3,696,887.00

4,668,557.00

Net income (loss)

24,981,658.00

26,604,373.00

Bad debt expenses - loan

1,645,871.00

3,225,183.00

Operating expenses

13,126,982.00

12,810,050.00

Personnel expenses

8,876,000.00

8,516,913.00

Depreciation and Amortization Expense

738,446.00

799,420.00

Other general and administrative expenses

3,512,536.00

3,493,717.00

Income (loss) from continuing operations before income tax

10,208,805.00

10,569,140.00

Income tax expense (benefit)

-1,738,055.00

-1,526,785.00

Net income (loss) from continuing operations

8,470,750.00

9,042,355.00

Net income (loss)

8,470,750.00

(USD 288,005,500.00)

9,042,355.00

(USD 307,440,070.00)

Earnings per share

 

 

Earnings per share

1.17

1.25

Income (loss) from continuing operations, net of income tax

1.17

1.25

Earnings per share

1.16

1.24

Income (loss) from continuing operations, net of income tax

1.16

1.24

(As of 2014.05, 1 NTD = 0.0340 USD)

 

 

Cash Flows

 

Units: NTD/000

 

2012

2011

Cash Flows from Operating Activities

 

 

Net Income (Loss)

8,470,750.00

9,042,355.00

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

 

 

Depreciation Expenses

712,998.00

778,410.00

Amortization Expenses

25,448.00

21,010.00

Provision (Reversal of Provision) for Bad Debt Expense

1,645,871.00

3,225,183.00

Amortization of Premiums (Discounts) on Financial Assets

-921,003.00

-773,993.00

Investment Loss (Income) Recognized under Equity Method

-321,996.00

-274,601.00

Cash Dividends Received from Investments Accounted for under Equity Method

247,141.00

111,327.00

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

120.00

-11,575.00

Loss (Gain) on Disposal of Investments

-218,684.00

255,040.00

Unrealized Revaluation Loss (Gain) on Financial Assets and Liabilities

-58,506.00

-103,666.00

Impairment Loss on Financial Asset

21,736.00

0.00

Loss (Gain) on Disposal of Foreclosed Properties

0.00

-27,474.00

Loss (Gain) on Deferred Income Tax

1,276,297.00

1,633,606.00

Changes in Operating Assets and Liabilities

 

 

Decrease (Increase) in Financial Assets Held for Trading

-7,971,434.00

-5,269,668.00

Decrease (Increase) in Receivables

1,560,228.00

3,775,781.00

Decrease (Increase) in Other Financial Assets

-73,862.00

-184,370.00

Decrease (Increase) in Other Assets

-3,491,538.00

-73,461.00

Increase (Decrease) in Financial Liabilities Held for Trading

-2,686,589.00

-2,795,109.00

Increase (Decrease) in Payables

907,192.00

6,411,999.00

Increase (Decrease) in Accrued Pension Liability

8,373.00

30,880.00

Increase (Decrease) in Other Financial Liabilities

-311,990.00

505,817.00

Increase (Decrease) in Other Liabilities

43,207.00

-45,561.00

Net Cash Provided by (Used in) Operating Activities

-1,136,241.00

16,231,930.00

Cash Flows from Investing Activities

 

 

Acquisition of Available-for-sale Financial Assets

-110,074,916.00

-64,424,536.00

Proceeds from Disposal of Available-for-sale Financial Assets

106,120,904.00

50,854,980.00

Acquisition of Debt Investments without Active Market

-665,780.00

-82,324.00

Proceeds from Disposal of Debt Investments without Active Market

193,139.00

0.00

Repayments of Debts Investment without Active Market

5,340,342.00

3,299,013.00

Acquisition of Held-to-maturity Financial Assets

-1,240,388,044.00

-961,027,399.00

Repayments of Held-to-Maturity Financial Assets

1,250,068,313.00

974,075,493.00

Purchase of Property, Plant and Equipment

-384,726.00

-521,442.00

Proceeds from Disposal of Property, Plant and Equipment

87.00

46,773.00

Purchase of Intangible Assets

-43,729.00

-25,620.00

Proceed from Disposal of Foreclosed Collateral

0.00

27,474.00

Decrease (Increase) in Due from the Central Bank and Call Loans to Banks

-23,743,416.00

8,846,166.00

Decrease (Increase) in Loans Discounted

-7,907,921.00

-79,163,644.00

Net Cash Provided by (Used in) Investing Activities

-21,485,747.00

-68,095,066.00

Cash Flows from Financing Activities

 

 

Proceeds of the Issuance Of Bank Debentures

0.00

10,000,000.00

Increase (Decrease) in Notes and Bonds Issued Under Repurchase Agreement

-5,097,338.00

-2,909,822.00

Cash Dividends Paid

-1,353,666.00

-1,738,653.00

Increase (Decrease) in Deposits Central and Bank Banks

-11,523,314.00

16,944,531.00

Increase (Decrease) in Deposits and Exchange

27,931,419.00

48,616,754.00

Net Cash Provided by (Used in) Financing Activities

9,957,101.00

70,912,810.00

Effect of Exchange Rate Changes

-103,626.00

-8,291.00

Net Increase (Decrease) in Cash and Cash Equivalents

-12,768,513.00

19,041,383.00

Cash and Cash Equivalents, Beginning of year

52,948,865.00

33,907,482.00

Cash and Cash Equivalents, End of year

40,180,352.00

52,948,865.00

Supplemental Cash Flow Information

 

 

Interest Paid

10,929,509.00

9,668,305.00

Interest Paid- Excluding Capitalized Interest

10,929,509.00

9,668,305.00

Income Tax Paid

322,134.00

139,617.00

Non-cash Investing and Financing Activities

 

 

Capital Increase by Earnings Recapitalization

4,737,830.00

5,588,528.00

 

 

Public Record

 

Mortgage

 

No chattel mortgage record of subject has been found within the recent 3 months.

 

Lawsuit

 

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

 

 

Interview Details

 

Name

Mr. Wang

Department

Foreign Department

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.20

UK Pound

1

Rs.101.68

Euro

1

Rs.83.55

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NNA

 

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.