MIRA INFORM REPORT

Report No. :	354739
Report Date :	18.12.2015

IDENTIFICATION DETAILS

Name :	ASIA POLYMER CORPORATION
Registered Office :	12F., No. 37, Jihu Rd., Neihu District, Taipei City 114, Taiwan (R.O.C.)
Country :	Taiwan
Financials (as on) :	31.12.2014
Date of Incorporation :	25.01.1977
Com. Reg. No.:	20747385
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and Sale of Chemical Material.
No. of Employees :	About 200

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, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
Taiwan	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

TAIWAN - ECONOMIC OVERVIEW

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are other major long-term challenges.

Free trade agreements have proliferated in East Asia over the past several years. 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. However, follow-on components of the ECFA, including a signed agreement on trade in services and negotiations on trade in goods and dispute resolution, have stalled. In early 2014, the government bowed to public demand and proposed a new law governing the oversight of cross-Strait agreements, before any additional deals with China are implemented; the legislature has yet to vote on such legislation, leaving the future of ECFA up in the air as President MA enters his final full year in office. MA has portrayed ECFA as Taiwan’s key to greater participation in East Asia’s free trade networks.

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 expected to account for nearly 20% of the island's total population by 2025.

The island runs a trade surplus, largely because of its surplus with China, and its foreign reserves are the world's fifth largest, behind those of China, Japan, Saudi Arabia, 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, the Taiwan Central Bank signed a memorandum of understanding (MOU) 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 has helped Taiwan develop into a local RMB hub.

Closer economic links with the mainland bring greater opportunities for Taiwan’s economy but also pose new challenges as the island becomes more economically dependent on China at a time when political differences remain unresolved. During 2014, the press paid increasing attention to domestic economic issues, while pushing aside the debates over trade liberalization that were a hallmark of MA’s tenure. The media focused on the divide between Taiwan’s “haves” and “have nots,” providing extensive coverage of public frustration with stagnant wages, skyrocketing housing prices, and the difficulty of finding decent entry-level jobs.

Source : CIA

Contact Points

Company Name:	ASIA POLYMER CORPORATION
Supplied Name:	ASIA POLYMER CORPORATION
Trading Address:	12F., No. 37, Jihu Rd., Neihu District, Taipei City 114, Taiwan (R.O.C.)
Supplied Address:	Kaohsiung Branch, No 3 Industrial First Road, Lin Yuan Kaohsiung City 832
Telephone Number:	+886-2-8751-6888/2-2658-2158
Fax Number:	+886-2-2659-95532-/2659-9502
Email:	samsontseng@apc.com.tw

Note: The exact name and address are as above. The supplied address belongs to subject’s Kaohsiung Branch.

Company Identification Details

Registered Name:	Asia Polymer Corporation
Registered Address:	12F., No. 37, Jihu Rd., Neihu District, Taipei City 114, Taiwan (R.O.C.)
Date of Foundation:	1977-1-25
Registration Number:	20747385
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 5,696,769,350 (USD 176,599,849.85) (As of 2015.12, 1 NTD = 0.0310 USD)
Paid-up Capital:	NTD 4,931,607,810 (USD 152,879,842.11)
Legal Representatives:	Yigui Wu
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sale of chemical material.
Staff:	About 200 employees
Listed at Stock Exchange:	Yes, Stock Code 1308
Date of Last Annual Return:	2015-9-16

History

Subject was incorporated on 1977-1-25 with registered number 20747385 as Joint Stock Company in Taiwan.

Subject listed on Taiwan Stock Exchange on 1986-6-20

Corporate Structure

Factory

Name:	Linyuan Plant
Address:	No.3, Industrial 1st Rd., Linyuan Dist., Kaohsiung, Taiwan
Telephone Number:	+886-7-641-2601
Fax Number:	+886-7-641-0641
Date of Foundation:	1979-5-11
Date of Registration:	1990-12-31
Factory Registration Number:	99662178
Factory Manager:	Xuezhu Qian
Status:	In Production
Date of Last Annual Return:	2014-10-21
Major Products:	184 Synthetic resins, plastics and rubber

Branch

Name	Asia Polymer Corporation Kaohsiung Branch
Address:	No.3, Industrial 1st Rd., Linyuan Dist., Kaohsiung, Taiwan
Registration Number	54388514
Date of Registration	2014-8-22
Status	Live Company
Manager Name	Guohong Li
Date of Last Annual Return	--

Major Related Companies

USI Corporation (USI)

USI Management Consulting Corporation (UM)

China General Plastics Corporation (CGPC)

CGPC Polymer Co., Ltd. (CGPCP)

Swanson Plastics Corporation (SPC)

Taita Chemical Company (TTC)

Taiwan VCM Corporation (TVCM)

INOMA Corporation (INOMA)

Acme Electronics Corporation (ACME)

China General Terminal & Distribution Company (CGTD)

Shareholders

Major Shareholders

Name	Subscription Shares
Tai Lian International Investment Co., Ltd. (literal translation)	18,571,125
Lian Ju International Investment Co., Ltd. (literal translation)
177,951,528

Shareholder Information:

1
Registered Name:	Tai Lian International Investment Co., Ltd. (Literal Translation)
Registered Address:	10/F. No. 75, Sec. 3, Mingsheng East Rd., Zhongshan Dist., Taipei, Taiwan
Date of Foundation:	1996-10-21
Registration Number:	97168335
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Legal Representatives:	Yishao Ke
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2014-9-5
2
Registered Name:	Lian Ju International Investment Co., Ltd. (Literal Translation)
Registered Address:	12/F., No. 37, Jihu Rd., Neihu Dist., Taipei City, Taiwan
Date of Foundation:	1996-10-18
Registration Number:	97168102
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Legal Representatives:	Yigui Wu
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2014-7-15

Management Information

Core Management

Directors

1
Name		Yigui Wu
Position		Board Chairman
2
Name	Fengqiang Miao
Position		Director
3
Name	Xinhuai Zhou
Position		Director
4
Name	Guangzhe Huang
Position		Director
5
Name	Guohong Li
Position		Director & Manager
Date of Manager Appointment		2007-5-2
6
Name	Hantai Liu
Position		Director
7
Name	Zhentu Liu
Position		Director
8
Name	Shengquan Wu
Position		Supervisor
9
Name	Huizhong Jiang
Position		Supervisor

Personnel Structure

Total Employees

About 200 employees

Operation Information

	Headquarters
Add	12F., No. 37, Jihu Rd., Neihu District, Taipei City 114, Taiwan (R.O.C.)

Production Information

Subject is engaged in manufacturing of chemical materials.

Subject has a factory in Kaohsiung, Taiwan for production.

Subject obtained the certifications of ISO14001 and OHSAS18001.

Purchase Information

The registered activities of subject:

1	Manufacturing, processing and sale of low- density polyethylene
2	Manufacturing, processing and sale of medium density polyethylene
3	Sale of high-density polyethylene
4	Sale of linear low density polyethylene
5	Manufacturing and sale of Ethylene vinyl acetate copolymerization resin
6	Manufacturing and sale of decomposition of plastic raw materials
F113010	Wholesale of machinery
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

It is introduced that the raw materials for production are purchased from both home and abroad, such as USA, etc.

Sales Information

Subject is engaged in sale of chemical materials.

The major products are ethylene vinyl acetate resin and low-density polyethylene plastic resin, etc.

It is introduced that subject’s products are mainly applied in extrusion casting, sports goods, shoes, injection molding, wire and cable and frozen food packaging.

Subject’s sales regions include Taiwan, Mainland China, USA and Europe.

Subject’s major customers are manufacturers of food, shoes and mold.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Products	Raw materials
Payment Terms	T/T, Cash

Import

Products	Raw materials
Payment Terms	L/C, T/T

Sales

Domestic Markets

Product	Chemical materials
Selling Terms	T/T, Cash

Export

Product	Chemical materials
Selling Terms	L/C, T/T

Balance Sheet

Unit: NTD/000

Consolidated	2014-12-31	2013-12-31
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	914,090	1,167,110
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	868,131	2,024,181
Current available-for-sale financial assets
Current available-for-sale financial assets, net	43,520	46,906
Current bond investment without active market
Current bond investment without active market, net	0	49,895
Notes receivable, net
Notes receivable, net	188	310
Accounts receivable, net
Accounts receivable, net	150,169	249,687
Accounts receivable due from related parties, net
Accounts receivable due from related parties, net	181,085	265,006
Other receivables
Other receivables, net	27,258	702
Other receivables due from related parties
Other receivables due from related parties, net	48,423	22,204
Inventories
Inventories, manufacturing business
Inventories, manufacturing business, net	870,128	601,685
Total inventories	870,128	601,685
Prepayments
Total prepayments	115,326	78,270
Other current assets
Total other current assets	2,410	110
Total current assets	3,220,728	4,506,066
Non-current assets
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets, net	2,643,224	2,719,072
Non-current financial assets at cost
Non-current financial assets at cost, net	290,476	96,279
Investments accounted for using equity method
Investments accounted for using equity method, net	1,390,351	1,342,297
Property, plant and equipment
Total property, plant and equipment	1,937,007	870,911
Investment property, net
Investment property, net	536,741	535,346
Intangible assets
Total intangible assets	1,660	2,491
Deferred tax assets	63,101	63,372
Other non-current assets
Total other non-current assets	3,002	2,846
Total non-current assets	6,865,562	5,632,614
Total assets	10,086,290	10,138,680
Liabilities
Current liabilities
Accounts payable
Total accounts payable	262,880	351,732
Accounts payable to related parties
Total accounts payable to related parties	5,398	3,037
Other payables
Total other payables	224,336	149,157
Other payables to related parties	122,519	55,786
Current tax liabilities	52,050	33,298
Current provisions
Total current provisions	5,899	5,899
Other current liabilities
Total other current liabilities	8,531	5,414
Total current liabilities	681,613	604,323
Non-current liabilities
Deferred tax liabilities
Total deferred tax liabilities	42,385	37,563
Other non-current liabilities
Accrued pension liabilities	302,291	311,817
Other non-current liabilities, others	5,980	5,413
Total other non-current liabilities	308,271	317,230
Total non-current liabilities	350,656	354,793
Total liabilities	1,032,269	959,116
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	4,696,769	4,696,769
Total capital stock	4,696,769	4,696,769
Capital surplus
Total capital surplus	14,135	14,140
Retained earnings
Legal reserve	1,458,204	1,404,518
Special reserve	566,027	566,027
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	1,731,836	1,752,550
Total retained earnings	3,756,067	3,723,095
Other equity interest
Total other equity interest	587,050	745,560
Treasury shares	0	0
Total equity attributable to owners of parent	9,054,021	9,179,564
Non-controlling interests	0	0
Total equity	9,054,021	9,179,564
Number of share capital awaiting retirement	0	0
Equivalent issue shares of advance receipts for ordinary share	0	0
Number of shares in entity held by entity and by its subsidiaries	0	0

Profit and Loss Account

Unit: NTD/000

Consolidated	2014	2013
Operating revenue
Net sales revenue
Net sales revenue	5,566,285	5,804,229
Total operating revenue	5,566,285	5,804,229
Operating costs
Cost of sales
Total cost of sales	4,978,473	5,312,870
Total operating costs	4,978,473	5,312,870
Gross profit (loss) from operations	587,812	491,359
Gross profit (loss) from operations	587,812	491,359
Operating expenses
Selling expenses
Total selling expenses	87,608	119,256
Administrative expenses
Total administrative expenses	84,441	85,122
Research and development expenses
Total research and development expenses	7,996	7,724
Total operating expenses	180,045	212,102
Net operating income (loss)	407,767	279,257
Non-operating income and expenses
Other income
Total other income	168,353	221,093
Other gains and losses
Other gains and losses, net	-2,770	39,295
Finance costs
Interest expense	101	238
Finance costs, net	101	238
Share of profit (loss) of associates and joint ventures accounted for using equity method
Share of profit (loss) of associates and joint ventures accounted for using equity method, net	10,664	66,550
Total non-operating income and expenses	176,146	326,700
Profit (loss) from continuing operations before tax	583,913	605,957
Tax expense (income)
Total tax expense (income)	83,980	69,102
Profit (loss) from continuing operations	499,933	536,855
Profit (loss)	499,933	536,855
Other comprehensive income
Exchange differences on translation	31,728	15,519
Unrealized gains (losses) on valuation of available-for-sale financial assets	-172,436	-389,177
Actuarial gains (losses) on defined benefit plans	5,743	-4,568
Share of other comprehensive income of associates and joint ventures accounted for using equity method
Total share of other comprehensive income of associates and joint ventures accounted for using equity method	-15,593	37,671
Income tax related to components of other comprehensive income	5,237	324
Other comprehensive income, net	-155,795	-340,879
Total comprehensive income	344,138	195,976
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	499,933	536,855
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	344,138	195,976
Basic earnings per share
Basic earnings (loss) per share from continuing operations	1.06	1.14
Total basic earnings per share	1.06	1.14
Diluted earnings per share
Diluted earnings (loss) per share from continuing operations	1.06	1.14
Total diluted earnings per share	1.06	1.14

Cash Flows

Unit: NTD/000

Consolidated	2013	2012
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	583,913	605,957
Profit (loss) before tax	583,913	605,957
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	89,935	95,935
Amortization expense	831	0
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	12,648	-120,451
Interest expense	101	238
Interest income	-16,162	-17,595
Dividend income	-85,645	-136,490
Share of loss (profit) of associates and joint ventures accounted for using equity method	-10,664	-66,550
Loss (gain) on disposal of property, plan and equipment	59	6
Loss (gain) on disposal of investments	-13,276	57,322
Impairment loss on financial assets	3,006	22,255
Reversal of impairment loss on non-financial assets	3,471	-26,030
Unrealized foreign exchange loss (gain)	-648	-2,986
Total adjustments to reconcile profit (loss)	-16,344	-194,346
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in financial assets held for trading	1,158,191	-170,166
Decrease (increase) in notes receivable	122	796
Decrease (increase) in accounts receivable	101,975	-68,147
Decrease (increase) in accounts receivable due from related parties	84,305	-155,448
Decrease (increase) in other receivable	-26,011	1,514
Decrease (increase) in other receivable due from related parties	-26,219	38,451
Decrease (increase) in inventories	-271,914	453,242
Decrease (increase) in prepayments	-37,056	19,809
Decrease (increase) in other current assets	-2,300	0
Total changes in operating assets	981,093	120,051
Changes in operating liabilities
Increase (decrease) in accounts payable	-89,104	201,025
Increase (decrease) in accounts payable to related parties	2,361	1,377
Increase (decrease) in other payable	73,341	14,963
Increase (decrease) in other payable to related parties	64,179	-266,178
Increase (decrease) in provisions	0	0
Increase (decrease) in other current liabilities	3,117	1,023
Increase (decrease) in accrued pension liabilities	-3,783	-1,590
Total changes in operating liabilities	50,111	-49,380
Total changes in operating assets and liabilities	1,031,204	70,671
Total adjustments	1,014,860	-123,675
Cash inflow (outflow) generated from operations	1,598,773	482,282
Interest received	16,253	17,569
Interest paid	-56	-193
Income taxes refund (paid)	-65,393	-71,448
Net cash flows from (used in) operating activities	1,549,577	428,210
Cash flows from (used in) investing activities
Acquisition of available-for-sale financial assets	-118,611	-13,082
Proceeds from disposal of available-for-sale financial assets	4,062	3,013
Acquisition of bond investments without active market	0	-26,395
Proceeds from disposal of bond investments without active market	49,895	0
Acquisition of financial assets at cost	-200,000	0
Proceeds from capital reduction of financial assets at cost	6,899	12,186
Acquisition of investments accounted for using equity method	-65,202	0
Proceeds from disposal of investments accounted for using equity method	0	19,753
Proceeds from capital reduction of investments accounted for using equity method	7,500	0
Acquisition of property, plant and equipment	-1,151,759	-256,616
Increase in refundable deposits	-156	-678
Acquisition of intangible assets	0	-370
Dividends received	123,065	157,035
Net cash flows from (used in) investing activities	-1,344,307	-105,154
Cash flows from (used in) financing activities
Increase in other non-current liabilities	567	0
Decrease in other non-current liabilities	0	-189
Cash dividends paid	-467,884	-467,791
Net cash flows from (used in) financing activities	-467,317	-467,980
Effect of exchange rate changes on cash and cash equivalents	9,027	2,439
Net increase (decrease) in cash and cash equivalents	-253,020	-142,485
Cash and cash equivalents at beginning of period	1,167,110	1,309,595
Cash and cash equivalents at end of period	914,090	1,167,110
Cash and cash equivalents reported in the statement of financial position	914,090	1,167,110

Note: Subject didn’t submit its individual financial information; we obtained its consolidated financials as above for reference.

The above financial figures are based on the IFRSs Accounting System.

Bankers

Subject declined to disclose its bank details; from other source we could not obtain the relevant information, either.

Public Record

Mortgage

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

Lawsuit

Trial Number:	2008, Beibu, 136
Date of Trial:	2008-5-5
Reason:	Returning of housing, etc.
Claimant:	Asia Polymer Corporation
Defendant:	Ding Tai International Co. Ltd. (literal translation)

Special Note

Interview Details

Department

Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.65
UK Pound	1	Rs.99.61
Euro	1	Rs.72.33
TWD	1	Rs.2.02

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	TRI
Report Prepared by :	TPT

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.