MIRA INFORM REPORT

 

 

Report No. :

355975

Report Date :

25.12.2015

 

IDENTIFICATION DETAILS

 

Name :

GINAR TECHNOLOGY CO., LTD.

 

 

Formerly Known As :

GINAR CHEMICAL CO., LTD.

 

 

Registered Office :

No. 29-45, Hsu-Tsou Kang, Ta Yuan Hsiang, Taoyuan 33713

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

15.07.1982

 

 

Com. Reg. No.:

12390496

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and Sale of Chemical Materials.

 

 

No. of Employees :

About 188 Employees (As of 2015-3-31)

 

 

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:

Ginar Technology Co., Ltd.

Supplied Name:

GINAR TECHNOLOGU CO LTD

Trading Address:

No. 29-45, Hsu-Tsou Kang, Ta Yuan Hsiang, Taoyuan 33713 Taiwan

Supplied Address:

29-45, TSOU KANG, TAOYUAN COUNTRY 3371

Telephone Number:

+886-3-386-8820

Fax Number:

+886-3-386-3587

E-mail:

ginar@ginar.com.tw

Notes: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

Ginar Technology Co., Ltd.

Registered Address:

No. 29-45, Hsu-Tsou Kang, Ta Yuan Hsiang, Taoyuan 33713 Taiwan

Date of Foundation:

1982-7-15

Registration Number:

12390496

Registry:

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

Registered Capital:

NTD 600,000,000 (USD 18,600,000)

(As of 2015.12, 1 NTD = 0.0310 USD)

Paid-up Capital:

NTD 552,573,000 (USD 17,129,763)

Legal Representatives:

Chunzhong Zhong

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sale of chemical materials.

Staff:

About 188 Employees (As of 2015-3-31)

Listed at Stock Exchange:

Yes; Stock Symbol: 6151

Date of Last Annual Return:

2015-7-8

 

 

History

 

Subject was incorporated on 1982-7-15 with registered number 12390496 as Joint Stock Company in Taiwan.

 

Change of Name

 

Former English Name:

Ginar Chemical Co., Ltd.

Current English Name:

Ginar Technology Co., Ltd.

 

Subject listed on Taiwan Over-The-Counter Securities Exchange on 2002-2-25.

 

 

Corporate Structure

 

Factories

1

Address:

No. 29-45, Hsu-Tsou Kang, Ta Yuan Hsiang, Taoyuan 33713 Taiwan

Date of Foundation:

1991-9-14

Date of Registration:

1993-5-24

Factory Registration Number:

99627754

Factory Manager:

Chunzhong Zhong

Status:

In Production

Date of Last Annual Return:

2015-1-6

Major Products:

184 Synthetic resin, plastic and rubber

210 rubber products

220 plastic products

2

Name:

The 1st Factory

Address:

No. 29-6, Hsu-Tsou Kang, Ta Yuan Hsiang, Taoyuan  Taiwan

Date of Foundation:

1989-5-15

Date of Registration:

1990-3-3

Factory Registration Number:

99627792

Factory Manager:

Chunzhong Zhong

Status:

In Production

Date of Last Annual Return:

2015-1-6

Major Products:

184 Synthetic resin, plastic and rubber

3

Name:

The 2nd Factory

Address:

No. 29-1, Hsu-Tsou Kang, Ta Yuan Hsiang, Taoyuan  Taiwan

Date of Registration:

2012-1-19

Factory Registration Number:

03000910

Factory Manager:

Chunzhong Zhong

Status:

In Production

Date of Last Annual Return:

2015-1-6

Major Products:

184 Synthetic resin, plastic and rubber

 

Branch

Name

Taichung Branch

Registration Number

84702960

Date of Registration

1993-11-17

Status

Live Company

Date of Last Annual Return

1993-11-17

 

Related Company

Name

Jiangsu Ginar Plastic Technology CO., Ltd.

Address

NO. 685, Huaihe Road, Huaiyin District, Huaian, Jiangsu, China

Telephone No.:

+86-517-8086-0591

Fax No.:

+86-517-8086-0592

 

 

Shareholders

 

Major Shareholders

 

Name

Subscription Shares     

Chunzhong Zhong

1,279,624

Baomin Zhong

1,620,044

Hengtong Investment Co., Ltd. (Literal Translation)

2,268,517

Guoliang Yang

716,900

Yuanzhen Chen

33,737

Wenchao Huang

443,876

Zhenwen Zhang

46,233

Qingzai Wu

506,891

Shunrong Yan

475,912

Yumou Zhong

141,174

 

 

Management Information

 

Core Management

 

Directors

1

Name

Chunzhong Zhong

Position

Chairman of the Board & Manager

Date of Appointment of Manager

1995-12-27

2

Name

Baomin Zhong

Position

Director

3

Name

Qingyu Xie

Position

Director

4

Name

Guoliang Yang

Position

Director

5

Name

Yuanzhen Chen

Position

Director

6

Name

Wenchao Huang

Position

Director

7

Name

Zhenwen Zhang

Position

Director

8

Name

Qingzai Wu

Position

Supervisor

9

Name

Shunrong Yan

Position

Supervisor

10

Name

Yumou Zhong

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 188 Employees (As of 2015-3-31)

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

No. 29-45, Hsu-Tsou Kang, Ta Yuan Hsiang, Taoyuan 33713 Taiwan

 

Production Information

 

Subject is engaged in manufacturing of chemical materials, etc.

Subject has factories in Taiwan for production.

It is introduced that subject has a factory in Dongguan City, the Mainland of China for production of PC compounds.

Subject obtained the certification of ISO 9001, ISO 14001, ISO 16949 and QC 080000.

It is introduced that the total annual production of the subject’s capacity is about 55,000 tones.

 

Purchase Information

 

The registered activities of subject:

Business Code

Details

--

Manufacturing, processing, buying and selling of rubber composites, plastic composite materials, reinforced plastic, mineral, fiber reinforced plastic and plastic engineering plastic alloy.

--

Agent of the pricing, bidding of above related products home and abroad.

--

General trading business.

CC01080 

Electronic components manufacturing

C805050 

Industrial plastic products manufacturing

CC01990 

Other mechanical electrical and electronic equipment manufacturing (connector)

ZZ99999 

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

 

The raw materials for production are purchased both at home and abroad.

 

Sales Information

 

Subject is engaged in sale of chemical materials, etc.

The major products are mapex polyamide compounds, aplax polypropylene compounds, and kapex polycarbonate compounds and so on.

Subject’s sales regions are Taiwan, the Mainland of China, Hong Kong, Taiwan, Southeast Asia, USA, Europe, etc.

Subject’s major customers are manufacturers of electronics, automobiles, sports equipment, etc.

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase

Products

Raw materials

Payment Terms

T/T, Cash, etc.

 

Import

Products

Raw materials

Payment Terms

L/C, T/T, etc.

 

Sales

 

Domestic Markets

Product

Chemical materials, etc.

Selling Terms

T/T, Cash, etc.

 

Export

Product

Chemical materials, etc.

Selling Terms

L/C, T/T, etc.

 

 

Balance Sheet

 

Unit: NTD/000

Consolidated

2014-12-31

2013-12-31

Current assets

 

 

Cash and cash equivalents

178,334

144,125

Financial assets net fair valued by profit and loss

0

0

Bond investment with non-active market-current net

2,000

2,000

Notes receivable, net

168,500

140,687

Accounts receivable, net

457,395

462,892

Other accounts receivable, net

15,198

51,132

Current Income tax assets

4,811

3,492

Inventories

373,838

349,355

Prepayment

7,264

8,950

Other current assets

474

471

Total current assets

1,207,814

1,163,104

Non-current assets

 

 

Financial assets valued by cost- non-current net

0

30,000

Net investment by equity method

0

0

Property, plant and equipment

571,208

564,984

Investment non-current assets

2,941

2,973

Intangible assets

2,095

4,162

Deferred tax assets

6,036

11,300

Other non-current assets

42,773

9,645

Total non-current assets

625,053

623,064

Total assets

1,832,867

1,786,168

Current liabilities

 

 

Short-term borrowings

276,338

239,345

Notes payable

118,322

90,511

Accounts payable

165,426

187,742

Other Accounts payable

56,917

68,384

Current tax liabilities

4,898

19,622

Other current liabilities

30,621

30,584

Total current liabilities

652,522

636,188

Non-current liabilities

 

 

Long-term borrowings

167,500

197,500

Deferred tax liabilities

58,199

51,813

Other non-current liabilities

26,835

31,010

Total non-current liabilities

252,534

280,323

Total liabilities

905,056

916,511

Ordinary share

552,573

516,424

Total capital stock

552,573

516,424

Capital surplus

144,319

144,319

Legal reserve

92,330

84,332

Special reserve

0

896

Unappropriated retained earnings (accumulated deficit)

74,524

79,978

Total retained earnings

166,854

165,206

Other equity

64,065

43,708

Total equity

attributable to the parent company

927,811

869,657

Non-controlling equity

0

0

Total equity

927,811

869,657

 

 

Profit and Loss Account

 

Unit: NTD/000

Consolidated

2014

2013

Operating revenue

2,037,851

2,134,918

Operating costs

1,725,907

1,791,508

Gross profit (loss) from operations

311,944

343,410

Gross profit (loss) from operations-net

311,944

343,410

Selling expenses

111,308

102,134

Administrative expenses

72,730

91,642

Research and development expenses

35,440

37,273

Operating expenses

219,478

231,049

Income (expenses) from operating

92,466

112,361

Other income

15,464

13,320

Other net income or loss

-5,236

1,452

Financial cost net

9,292

9,539

Non-operating income and expenses

936

5,233

Net income (loss) before tax

93,402

117,594

Tax expense (income)

21,574

32,882

Profit (loss) from continuing operations

71,828

84,712

Net income (loss)

71,828

84,712

Other net income (loss)

 

 

Foreign cash balance operating mechanism conversion of the financial statements

24,527

28,093

Determine the welfare program actuarial profit (loss)

2,553

-2,672

Income tax related to other comprehensive profit (loss)

4,604

4,320

Other comprehensive profit (loss) net

22,476

21,101

Total comprehensive profit (loss)

94,304

105,813

Net profit (loss) attributable to:

 

 

Net income or loss of parent company

71,828

84,712

Net income or loss of non-controlling equity

0

0

Comprehensive profit (loss) attributable to:

 

 

Comprehensive profit (loss) of parent company

94,304

105,813

Comprehensive profit (loss) of non-controlling equity

0

0

Basic earnings per share

1.30

1.53

Diluted earnings per share

1.29

1.52

 

 

Cash Flows

 

Unit: NTD/000

Consolidated

2014

2013

Cash flows from (used in) operating activities, indirect method

 

 

Profit (loss) from continuing operations before tax

93,402

117,594

Profit (loss) before tax

93,402

117,594

Depreciation expense

56,861

58,945

Amortization expense

2,964

3,203

Provision (reversal of provision) for bad debt expense

9,814

24,635

Net income or loss of financial assets and liabilities by fair value

0

0

Interest expense

9,292

9,539

Interest income

-1,788

-997

Loss (gain) on disposal of property, plant and equipment

127

2,806

Loss (gain) on disposal of investment

3,067

0

Loss on financial assets

1,500

0

Total income or loss non-effect cash flow

81,837

98,131

Decrease (increase) in financial assets for sale

25,433

0

Decrease (increase) in notes receivable

-24,321

-25,184

Decrease (increase) in accounts receivable

3,780

-33,384

Decrease (increase) in other accounts receivable

35,953

-14,983

Decrease (increase) in inventories

-20,120

24,467

Decrease (increase) in prepayment

1,810

6,060

Decrease (increase) in other current assets

13

41

Decrease (increase) in other financial assets

-1

0

Total net changes in operating assets

22,547

-42,983

Increase (decrease) in notes payable

27,645

16,751

Increase (decrease) in accounts payable

-25,314

81,807

Increase (decrease) in other accounts payable

-12,663

17,373

Increase (decrease) in other current liabilities

37

-52

Increase (decrease) in accrued pension liabilities

-1,629

-1,454

Total net changes in operating liabilities

-11,924

114,425

Total changes in operating assets and liabilities

10,623

71,442

Total adjustments

92,460

169,573

Cash inflow (outflow) generated from operations

185,862

287,167

Interest received

1,789

1,938

Charge of the dividend

-9,244

-10,707

Income taxes refund (paid)

-30,571

-16,075

Net cash flows from (used in) operating activities

147,836

262,323

Cash flows from (used in) investing activities

 

 

Financial assets measured by costs

0

-30,000

Acquisition of property, plant and equipment

-60,527

-14,861

Proceeds from disposal of property, plant and equipment

4

2,838

Increase in refundable deposit

0

-897

Decrease in refundable deposit

17

0

Acquisition of intangible assets

-534

-734

Increase in other non-current assets

-72

0

Increase in prepayment of equipment

0

-3,542

Decrease in prepayment of equipment

2,703

0

Other increase in prepayment

-36,057

0

Net cash flows from (used in) investing activities

-94,466

-47,196

Net cash flows from (used in) financing activities

 

 

Increase in short-term borrowing

35,920

0

Decrease in short-term borrowing

0

-57,040

Proceeds from long-term debt

0

250,000

Repayments of long-term debt

-30,000

-257,412

increase in deposit received

0

-30

Cash dividends paid

-36,150

-46,478

Net cash flows from (used in) financing activities

-30,230

-110,960

Effect of exchange rate changes on cash and cash equivalents

11,069

3,144

Net increase (decrease) in cash and cash equivalents

34,209

107,311

Cash and cash equivalents at beginning of period

144,125

36,814

Cash and cash equivalents at end of period

178,334

144,125

Cash and cash equivalents reported in the statement of financial position

178,334

144,125

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

 

Name:

First Commercial Bank

 

 

Public Record

 

Mortgage

 

Case Type:

Chattel Mortgage

Registered Number:

076269

Debtor Name:

Ginar Technology Co., Ltd.

Registry:

Economic Development Bureau of Taoyuan City Government

Name of Mortgagee:

Bank of Communications Co., Ltd. Business Department

Date of Registration:

2003-6-19

Amount of Secure Claims:

NTD 15,536,000

Type of Mortgage:

Machinery, equipment and tools

 

Lawsuit

 

Trial Number:

2009, taojian, 471

Date of Trial:

2009-5-12

Reason:

Service payment

Claimant:

Hong Kong First Line Co., Ltd. Taiwan Branch (Literal Translation)

Defendant:

Ginar Technology Co., Ltd.

 

Special Note

 

Interview Details

Name

Mr. Yang

Department

Sales Department

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.20

UK Pound

1

Rs.98.30

Euro

1

Rs.72.41

TWD

1

Rs.2.01

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

               


 

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.