MIRA INFORM REPORT

 

 

Report No. :

331363

Report Date :

14.07.2015

 

IDENTIFICATION DETAILS

 

Name :

CHINA STEEL CORPORATION

 

 

Registered Office :

No.1, Chung Kang Road, Lin Hai Ind. Dist., Hsiao Kang, Kaohsiung 81233, Taiwan, R.O.C.

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

03.12.1971

 

 

Com. Reg. No.:

30414175

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and Sales of Steel Products.

 

 

No. of Employees :

About 10,000

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

Payment Behaviour :

Regular

Litigation :

--

 

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, 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. However, follow-on components of ECFA, including a signed agreement on trade in services, negotiations on trade in goods, and dispute resolution—have stalled. In early 2014, the government bowed to public demand for 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 under 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 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 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 the Taiwan 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:

CHINA STEEL CORPORATION

Supplied Name:

CHINA STEEL CORPORATION

Trading Address:

No.1, Chung Kang Road, Lin Hai Ind. Dist., Hsiao Kang, Kaohsiung 81233, Taiwan, R.O.C.

Supplied Address:

88, Cheng Gong 2nd Road, Qian Zben Kaobsung 80661

Telephone Number:

+886-7-802-1111

Fax Number:

+886-7-802-2511/801-9427

 

Notes: We contacted with the subject, the relevant staff introduced that the subject’s exact headquarters’ address and name are as above, the staff also confirmed that the supplied address also belongs to the subject.

 

 

Company Identification Details

 

Registered Name:

China Steel Corporation

Registered Address:

No.1, Chung Kang Road, Lin Hai Ind. Dist., Hsiao Kang, Kaohsiung 81233, Taiwan, R.O.C.

Date of Foundation:

1971-12-3

Registration Number:

30414175

Registry:

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

Registered Capital:

NTD 170,000,000,000 (USD 5,440,000,000)

(As of 2015.07, 1 NTD = 0.032 USD)

Paid-up Capital:

NTD 157,731,289,960 (USD 5,047,401,279)

Legal Representatives:

Ruoqi Zou

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sales of steel products and etc.

Staff:

About 10,000 Employees

Listed at Stock Exchange:

No

Date of Last Annual Return:

2014-9-2

 

 

History

 

Subject was incorporated on 1971-12-3 with registered number 30414175 as Joint Stock Company in Taiwan.

 

Subject listed on Taiwan Stock Exchange on 1974-12-26.

 

 

Corporate Structure

 

Factories

1

Address:

No.1, Zhonggang Rd., Xiaogang Dist., Kaohsiung City, Taiwan (R.O.C.)

No.17, Donglin Rd., Xiaogang Dist., Kaohsiung City, Taiwan (R.O.C.)

No.38, Daye S. Rd., Xiaogang Dist., Kaohsiung City, Taiwan (R.O.C.)

No.56, Yanhai 3rd Rd., Xiaogang Dist., Kaohsiung City, Taiwan (R.O.C.)

Date of Foundation:

1972-12-12

Date of Registration:

1978-7-17

Factory Registration Number:

64000249

Factory Manager:

Ruoqi Zou

Status:

In Production

Date of Last Annual Return:

2013-4-1

Major Products:

092 non-alcohol beverage

181 basic chemical material

170 petroleum and coal products

232 refractory, clay construction materials and ceramic products

241 steel

254 metal processing

239 other non-metallic mineral products

293 general machinery equipment

253 metal container

252 metal structure and building components

249 other base metals

243 copper

339 other Products

319 unclassified other means of transport and its parts

301 automobile

302 car body

303 automobile parts

281 power generation, transmission and distribution of machines

283 cables and wiring accessories

289 other electric power equipment

251 metal hand tools and moulds

292 other specialized machinery and equipment

291 metal processing machinery equipment

242 aluminium

210 rubber products

199 other chemical products

140 products for wood and bamboo

2

Address:

No. 4, No.5, No. 6, Xiaogang Dist., Kaohsiung City, Taiwan (R.O.C.)

No.5, Guangyang St., Xiaogang Dist., Kaohsiung City, Taiwan (R.O.C.)

Date of Registration:

2001-7-25

Factory Registration Number:

64005725

Factory Manager:

Chunxiang Huang

Status:

In Production

Date of Last Annual Return:

2015-1-26

Major Products:

249 other base metals

3

Address:

No.2, Jiaxing St., Xiaogang Dist., Kaohsiung City, Taiwan (R.O.C.)

Date of Registration:

2011-7-12

Factory Registration Number:

64006324

Factory Manager:

Shikai Zeng

Status:

In Production

Date of Last Annual Return:

2015-5-29

Major Products:

241 steel

254 metal processing

 

Offices

1

Name

Taipei Office

Address

Room A, 28/F., 101 Building, No.7, Section 5, Xinyi Road, Taipei City, Taiwan

Tel

+886-2-8758-0000

Fax

+886-2-8758-0007

2

Name

Singapore Office

Address

#14-01 MAS Building, 10 Shenton Way, Singapore 0207

Tel

+65-6223-8777

Fax

+65-6225-6054

3

Name

Osaka Office

Address

8F, Nantai Building, 2-20, Minamihonmachi 4-Chome,Chuoku, Osaka 541, Japan

Tel

+81-6-6281-1021

Fax

+81-6-6281-1023

4

Name

India Office

Address

S-3 Level, Block-E, International Trade Tower, Nehru Place, New Delhi 110019, India

Tel

+91-11-4057-3739

Fax

+91-11-4057-3741

5

Address

88, Chenggong 2nd Rd., Qianzhen, Kaohsiung 80661, Taiwan

Tel

+886-337-1111

Fax

+886-537-3570

Shareholders

 

Major Shareholders

 

Name

Subscription Shares

Ministry of Economic Affairs

3,154,709,357

Ever Wealthy International Corporation

2,226,265

Gao Rui Investment Co., Ltd. (Literal Translation)

1,335,318

Qun Yu Investment Co., Ltd. (Literal Translation)

1,548,289

Hong Gao Investment and Development Co., Ltd. (Literal Translation)

1,003,980

Kaohsiung China Steel Enterprise Union

7,221,548

Zuen Zhang

18,583

Dingpeng Liang

409

Hsin Kuang Steel Co., Ltd.

70,359,683

 

Shareholder Information:

1

Name

Ever Wealthy International Corporation

Registered Address:

25F., No.88, Chenggong 2nd Rd., Qianzhen Dist., Kaohsiung City 806, Taiwan (R.O.C.)

Date of Foundation:

1999-8-30

Registration Number:

70748331

Registry:

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

Registered Capital:

NTD 2,000,000,000

Paid-up Capital:

NTD 1,045,749,820

Legal Representatives:

Jianming Li

Legal Form:

Joint Stock Company

Date of Last Annual Return:

2014-12-12

2

Name

Gao Rui Investment Co., Ltd. (Literal Translation)

Registered Address:

26F., No.88, Chenggong 2nd Rd., Qianzhen Dist., Kaohsiung City, Taiwan (R.O.C.)

Date of Foundation:

1997-5-21

Registration Number:

97159878

Registry:

Economic Development Board of Kaohsiung City Government

Registered Capital:

NTD 29,900,000

Paid-up Capital:

NTD 29,900,000

Legal Representatives:

Yingjuan Li

Legal Form:

Joint Stock Company

Date of Last Annual Return:

2014-6-30

3

Name

Qun Yu Investment Co., Ltd. (Literal Translation)

Registered Address:

26th Floor, No.88, Chenggong 2nd Rd., Qianzhen Dist., Kaohsiung City 806, Taiwan (R.O.C.)

Date of Foundation:

1997-5-21

Registration Number:

97159912

Registry:

Economic Development Board of Kaohsiung City Government

Registered Capital:

NTD 29,900,000

Paid-up Capital:

NTD 29,900,000

Legal Representatives:

Mingzhu Zhu

Legal Form:

Joint Stock Company

Date of Last Annual Return:

2015-5-28

4

Name

Hong Gao Investment and Development Co., Ltd. (Literal Translation)

Registered Address:

9th Floor, No.88, Chenggong 2nd Rd., Qianzhen Dist., Kaohsiung City 806, Taiwan (R.O.C.)

Date of Foundation:

2006-9-26

Registration Number:

28292730

Registry:

Economic Development Board of Kaohsiung City Government

Registered Capital:

NTD 30,000,000

Paid-up Capital:

NTD 26,000,000

Legal Representatives:

Chaocheng Wang

Legal Form:

Joint Stock Company

Date of Last Annual Return:

2014-7-9

5

Name

Hsin Kuang Steel Co., Ltd.

Registered Address:

25F, No. 97, Sec. 4, Chung Shin Rd., Sanchong Dist., New Taipei City 241, Taiwan (R.O.C.)

Date of Foundation:

1976-12-2

Registration Number:

35836625

Registry:

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

Registered Capital:

NTD 3,600,000,000

Paid-up Capital:

NTD 2,788,380,140

Legal Representatives:

Mingde Su

Legal Form:

Joint Stock Company

Date of Last Annual Return:

2015-1-22

 

 

Management Information

 

Core Management

 

Directors

1

Name

Ruoqi Zou

Position

Board Chairman

2

Name

Mingzhong Zheng

Position

Director

3

Name

Rongjin Shen

Position

Director

4

Name

Zhiyu Song

Position

Director

5

Name

Hongnan Lin

Position

Director

6

Name

Jigang Liu

Position

Director

7

Name

Zhengyi Weng

Position

Director

8

Name

Zhaojin Wei

Position

Director

9

Name

Shenyi Li

Position

Independent Director

10

Name

Zuen Zhang

Position

Independent Director

11

Name

Dingpeng Liang

Position

Independent Director

12

Name

Mingde Li

Position

Supervisor

13

Name

Yilin Cheng

Position

Supervisor

14

Name

Sitang Deng

Position

Supervisor

15

Name

Zhiyu Song

Position

Manager

Date of Appointment

2012-2-1

16

Name

Hongnan Lin

Position

Manager

Date of Appointment

2014-2-1

 

Major related Companies

1

 

Name

Zhonggang Lvye Co Ltd (Liberal Translation)

 

Address

No.17, Donglin Rd., Xiaogang Dist., Kaohsiung City, Taiwan (R.O.C.)

 

Telephone Number

+886-7-871-8866

 

Fax Number

+886-7-872-1852

 

2

Name

Zhonggang Yuntong Co Ltd (Liberal Translation)

Address

32F., No.8, Minquan 2nd Rd., Qianzhen Dist., Kaohsiung City, Taiwan (R.O.C.)

Telephone Number

+886-7-337-8888

Fax Number

+886-7-338-3516

3

Name

Zhonggang Carbon Chemistry Co Ltd (Liberal Translation)

Address

5F.-1, No.47, Zhonghua 4th Rd., Lingya Dist., Kaohsiung City, Taiwan (R.O.C.)

Telephone Number

+886-7-338-3515

Fax Number

+886-7-338-3516

4

Name

Zhongmao International Co Ltd (Liberal Translation)

Address

31F., No.8, Minquan 2nd Rd., Qianzhen Dist., Kaohsiung City, Taiwan (R.O.C.)

Telephone Number

+886-7-332-2186

Fax Number

+886-7-335-6411-2

5

Name

Zhonglian Resources Co Ltd (Liberal Translation)

Address

10F., No.243, Yixin 1st Rd., Qianzhen Dist., Kaohsiung City, Taiwan (R.O.C.)

Telephone Number

+886-7-336-8377

Fax Number

+886-7-336-8433

6

Name

Zhongyu Environmental Engineering Co Ltd (Liberal Translation)

Address

8F., No.8, Minquan 2nd Rd., Qianzhen Dist., Kaohsiung City, Taiwan (R.O.C.)

Telephone Number

+886-7-330-6138

Fax Number

+886-7-339-4016

 

Personnel Structure

 

Total Employees

About 10,000 Employees

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

No.1, Chung Kang Road, Lin Hai Ind. Dist., Hsiao Kang, Kaohsiung 81233, Taiwan, R.O.C.

 

Production Information

 

Subject is engaged in manufacturing of steel products.

Subject has factories in Taiwan and subject’s related companies have factories in Taiwan, India and the mainland of China for production.

From public files, we found the production information of steel products in 2014 as following for reference

Unit: Tons

Products

Production

Steel plates

964,193

Bars

621,540

Wire rods

1,316,976

Hot rolled steel products

2,376,013

Cold rolled steel products

3,658,877

Commercial slabs

10,427

Pig iron

5,378

Others

87,493

Totals

9,040,897

 

Purchase Information

 

The registered activities of subject:

Business Code

Details

CA01010

Iron and steel smelting

CA01030

Steel casting industry

CA01020

Steel rolling and extruded industry

CA01050

Steel secondary processing industry

CA02080

Metal forging

CA03010

Heat treatment industry

CA04010

Surface treatment industry

E103101

Environmental protection Environmental protection

E602011

Air conditioner engineering

ZZ99999

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

 

It is introduced that subject purchases its raw materials and etc both at home and abroad

From public files, we found purchasing information of subject’s group as following for references:

 

Product

Origin

Coking coals

Australia, Canada, Indonesia, Mozambique, North Korea and Russia

Iron ore

Australia, Canada, Brazil and Venezuela

Flux materials

Japan, Taiwan, Philippines, Vietnam, the mainland of China and Thailand.

 

It is introduced that subject purchases some products and etc from the related factories of its related companies in the mainland of China, Taiwan and India.

Sales Information

 

Subject is engaged in sale of steel products.

The major products include steel plates, bars, wire rods, hot rolled coils and sheets, cold rolled coils, electro-galvanized coils, hot-dip galvanized coils, electrical steels coils and so on.

Subject’s sales regions include China, Japan, Thailand, Indonesia, Vietnam, Mexico, Malaysia, India and etc.

Subject’s major customers are manufactures of machinery, hardware and etc, the construction industry and etc.

 

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

T/T, L/C

 

Sales

 

Domestic Markets

Product

Steel products

Selling Terms

T/T, Cash

 

Export

Product

Steel products

Selling Terms

T/T, L/C

 

 

Balance Sheet

 

Unit: NTD/000

Consolidated

2014-12-31

2013-12-31

  Assets

 

 

   Current assets

 

 

    Cash and cash equivalents

 

 

     Total cash and cash equivalents

13,632,013

13,700,839

    Current financial assets at fair value through profit or loss

 

 

     Total current financial assets at fair value through profit or loss

5,418,751

5,014,510

    Current available-for-sale financial assets

 

 

     Current available-for-sale financial assets, net

6,651,624

5,290,437

    Current derivative financial assets for hedging

62,992

30,501

    Current bond investment without active market

 

 

     Current bond investment without active market, net

0

9,259

    Notes receivable, net

 

 

     Notes receivable, net

1,243,767

1,198,221

    Notes receivable due from related parties, net

 

 

     Notes receivable due from related parties, net

162,202

607,062

    Accounts receivable, net

 

 

     Accounts receivable, net

10,818,647

10,248,930

    Accounts receivable due from related parties, net

 

 

     Accounts receivable due from related parties, net

734,991

520,732

    Construction contracts receivable

7,313,482

7,309,470

    Other receivables

 

 

     Other receivables, net

1,484,045

1,943,126

    Current tax assets

 

 

     Total current tax assets

169,509

120,617

    Inventories

 

 

     Inventories, manufacturing business

 

 

      Inventories, manufacturing business, net

81,203,168

83,040,277

     Total inventories

81,203,168

83,040,277

    Other current assets

 

 

     Other current financial assets

13,714,418

13,529,793

     Other current assets, others

5,757,202

5,673,611

     Total other current assets

19,471,620

19,203,404

    Total current assets

148,366,811

148,237,385

   Non-current assets

 

 

    Non-current financial assets at fair value through profit or loss

 

 

     Total non-current financial assets at fair value through profit or loss

31,842

0

    Non-current available-for-sale financial assets

 

 

     Non-current available-for-sale financial assets, net

31,102,392

28,100,611

    Held-to-maturity non-current financial assets

 

 

     Non-current held-to-maturity financial assets, net

222,989

209,991

    Derivative non-current financial assets for hedging

87,969

42,202

    Non-current bond investment without active market

 

 

     Non-current bond investment without active market, net

2,806,597

2,973,651

    Investments accounted for using equity method

 

 

     Investments accounted for using equity method, net

13,419,402

10,990,162

    Property, plant and equipment

 

 

     Total property, plant and equipment

459,313,969

462,742,294

    Investment property, net

 

 

     Investment property, net

8,436,098

8,337,249

    Intangible assets

 

 

     Total intangible assets

2,493,804

2,680,365

    Deferred tax assets

6,062,321

6,077,668

    Other non-current assets

 

 

     Guarantee deposits paid

436,833

513,180

     Other non-current financial assets

 

 

      Total other non-current financial assets

2,376,787

2,361,443

     Other non-current assets, others

 

 

      Other non-current assets, others

7,579,422

8,733,172

      Total other non-current assets, others

7,579,422

8,733,172

     Total other non-current assets

10,393,042

11,607,795

    Total non-current assets

534,370,425

533,761,988

   Total assets

682,737,236

681,999,373

  Liabilities

 

 

   Current liabilities

 

 

    Short-term borrowings

 

 

     Total short-term borrowings

30,801,717

28,652,599

    Short-term notes and bills payable

 

 

     Total short-term notes and bills payable

20,112,096

30,786,300

    Current financial liabilities at fair value through profit or loss

 

 

     Total current financial liabilities at fair value through profit or loss

7,149

9,094

    Current derivative financial liabilities for hedging

46,327

44,281

    Notes payable

 

 

     Total notes payable

1,384,782

1,015,417

    Notes payable to related parties

 

 

     Total notes payable to related parties

88

756

    Accounts payable

 

 

     Total accounts payable

8,903,520

11,543,379

    Accounts payable to related parties

 

 

     Total accounts payable to related parties

689,623

157,372

    Construction contracts payable

5,403,038

5,818,449

    Other payables

 

 

     Total other payables

23,131,466

23,925,757

    Current tax liabilities

4,868,683

3,700,145

    Current provisions

 

 

     Total current provisions

3,795,700

2,968,838

    Other current liabilities

 

 

     Long-term liabilities, current portion

 

 

      Bonds payable, current portion

8,148,376

3,499,318

      Long-term borrowings, current portion

20,939,065

19,426,467

      Total long-term liabilities, current portion

29,087,441

22,925,785

     Other current liabilities, others

3,273,887

3,306,668

     Total other current liabilities

32,361,328

26,232,453

    Total current liabilities

131,505,517

134,854,840

   Non-current liabilities

 

 

    Non-current derivative financial liabilities for hedging

10,060

18,043

    Bonds payable

 

 

     Total bonds payable

89,695,089

62,994,437

    Long-term borrowings

 

 

     Long-term bank loans

86,579,129

108,062,267

     Others long-term borrowings

20,019,412

34,882,033

     Total long-term borrowings

106,598,541

142,944,300

    Non-current provisions

 

 

     Total non-current provisions

1,031,812

1,067,087

    Deferred tax liabilities

 

 

     Total deferred tax liabilities

12,678,217

12,976,988

    Other non-current liabilities

 

 

     Accrued pension liabilities

5,457,497

7,237,168

     Other non-current liabilities, others

1,072,632

536,795

     Total other non-current liabilities

6,530,129

7,773,963

    Total non-current liabilities

216,543,848

227,774,818

   Total liabilities

348,049,365

362,629,658

  Equity

 

 

   Equity attributable to owners of parent

 

 

    Share capital

 

 

     Ordinary share

157,348,610

154,255,840

     Preference share

382,680

382,680

     Total capital stock

157,731,290

154,638,520

    Capital surplus

 

 

     Total capital surplus

37,217,876

36,960,818

    Retained earnings

 

 

     Legal reserve

56,957,880

55,359,726

     Special reserve

27,086,283

26,920,871

     Unappropriated retained earnings (accumulated deficit)

 

 

      Total unappropriated retained earnings (accumulated deficit)

24,125,515

16,348,240

     Total retained earnings

108,169,678

98,628,837

    Other equity interest

 

 

     Total other equity interest

10,162,015

7,955,853

    Treasury shares

8,587,461

8,496,974

    Total equity attributable to owners of parent

304,693,398

289,687,054

   Non-controlling interests

29,994,473

29,682,661

   Total equity

334,687,871

319,369,715

   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

318,369,000

308,545,000

 

 

Profit and Loss Account

 

Unit: NTD/000

Consolidated

2014

2013

  Operating revenue

 

 

   Total operating revenue

366,510,697

347,828,838

  Operating costs

 

 

   Total operating costs

322,622,227

310,548,923

  Gross profit (loss) from operations

43,888,470

37,279,915

  Realized profit (loss) on from sales

0

404,495

  Gross profit (loss) from operations

43,888,470

37,684,410

  Operating expenses

 

 

   Selling expenses

 

 

    Total selling expenses

4,899,826

4,992,404

   Administrative expenses

 

 

    Total administrative expenses

7,181,277

6,286,297

   Research and development expenses

 

 

    Total research and development expenses

2,015,836

1,852,759

   Total operating expenses

14,096,939

13,131,460

  Net operating income (loss)

29,791,531

24,552,950

  Non-operating income and expenses

 

 

   Other income

 

 

    Total other income

2,420,784

1,618,710

   Other gains and losses

 

 

    Other gains and losses, net

-454,241

-258,031

   Finance costs

 

 

    Finance costs, net

3,787,776

2,985,370

   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

605,936

280,793

   Total non-operating income and expenses

-1,215,297

-1,343,898

  Profit (loss) from continuing operations before tax

28,576,234

23,209,052

  Tax expense (income)

 

 

   Total tax expense (income)

4,378,958

4,854,585

  Profit (loss) from continuing operations

24,197,276

18,354,467

  Profit (loss)

24,197,276

18,354,467

  Other comprehensive income

 

 

   Exchange differences on translation

2,212,405

218,254

   Unrealised gains (losses) on valuation of available-for-sale financial assets

580,738

3,550,104

   Cash flow hedges

178,384

340,696

   Actuarial gains (losses) on defined benefit plans

1,564,528

153,606

   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

-26,796

-156,363

   Other comprehensive income

-345,570

-102,760

   Other comprehensive income, net

4,163,689

4,003,537

  Total comprehensive income

28,360,965

22,358,004

  Profit (loss), attributable to:

 

 

   Profit (loss), attributable to owners of parent

22,160,266

15,981,540

   Profit (loss), attributable to non-controlling interests

2,037,010

2,372,927

  Comprehensive income attributable to:

 

 

   Comprehensive income, attributable to owners of parent

25,685,222

19,506,129

   Comprehensive income, attributable to non-controlling interests

2,675,743

2,851,875

  Basic earnings per share

 

 

   Basic earnings (loss) per share from continuing operations

1.43

1.03

   Total basic earnings per share

1.43

1.03

  Diluted earnings per share

 

 

   Diluted earnings (loss) per share from continuing operations

1.43

1.03

   Total diluted earnings per share

1.43

1.03

 

 

Cash Flows

 

Unit: NTD/000

Consolidated

2014

2013

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

 

 

   Profit (loss) from continuing operations before tax

28,576,234

23,209,052

   Profit (loss) before tax

28,576,234

23,209,052

   Adjustments

 

 

    Adjustments to reconcile profit (loss)

 

 

     Depreciation expense

35,354,714

31,345,401

     Amortization expense

368,943

293,117

     Net loss (gain) on financial assets or liabilities at fair value through profit or loss

-127,501

-225,006

     Interest expense

3,787,776

2,985,370

     Interest income

-511,164

-472,294

     Dividend income

-379,552

-364,527

     Share of loss (profit) of associates and joint ventures accounted for using equity method

-617,995

-281,422

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

214,424

111,761

     Loss (gain) on disposal of intangible assets

-73,327

0

     Loss (gain) on disposal of investments

-740,942

-674,749

     Impairment loss on financial assets

930,366

153,215

     Impairment loss on non-financial assets

2,102,323

371,296

     Realized loss (profit) on from sales

0

-404,495

     Other adjustments to reconcile profit (loss)

6,704,916

4,308,836

     Total adjustments to reconcile profit (loss)

47,012,981

37,146,503

    Changes in operating assets and liabilities

 

 

     Changes in operating assets

 

 

      Decrease (increase) in financial assets held for trading

-107,934

-215,872

      Decrease (increase) in notes receivable

-45,546

-223,510

      Decrease (increase) in notes receivable due from related parties

444,860

-87,609

      Decrease (increase) in accounts receivable

-701,378

454,020

      Decrease (increase) in accounts receivable due from related parties

-214,259

84,545

      Decrease (increase) in construction contracts receivable

-4,012

123,196

      Decrease (increase) in other receivable

748,434

515,700

      Decrease (increase) in inventories

603,865

-5,894,599

      Decrease (increase) in other current assets

-83,485

-709,282

      Total changes in operating assets

640,545

-5,953,411

     Changes in operating liabilities

 

 

      Increase (decrease) in notes payable

369,365

721,620

      Increase (decrease) in notes payable to related parties

-668

-412

      Increase (decrease) in accounts payable

-2,639,859

259,209

      Increase (decrease) in accounts payable to related parties

532,251

-73,935

      Increase (decrease) in construction contracts receivable

-415,411

2,161,444

      Increase (decrease) in other payable

559,896

894,106

      Increase (decrease) in provisions

-5,689,752

-3,493,517

      Increase (decrease) in other current liabilities

-43,294

695,626

      Increase (decrease) in accrued pension liabilities

-223,652

-48,508

      Total changes in operating liabilities

-7,551,124

1,115,633

     Total changes in operating assets and liabilities

-6,910,579

-4,837,778

    Total adjustments

40,102,402

32,308,725

   Cash inflow (outflow) generated from operations

68,678,636

55,517,777

   Income taxes refund (paid)

-4,225,392

-1,251,708

  Net cash flows from (used in) operating activities

64,453,244

54,266,069

  Cash flows from (used in) investing activities

 

 

   Acquisition of financial assets at fair value through profit or loss, designated as upon initial recognition

-6,714,162

-5,331,769

   Proceeds from disposal of financial assets at fair value through profit or loss, designated as upon initial recognition

6,448,991

4,713,063

   Acquisition of available-for-sale financial assets

-7,237,912

-10,341,835

   Proceeds from disposal of available-for-sale financial assets

2,995,987

3,137,250

   Proceeds from capital reduction of available-for-sale financial assets

53,438

64,500

   Acquisition of bond investments without active market

-39,155

-14,593

   Proceeds from disposal of bond investments without active market

24,861

29,330

   Acquisition of held-to-maturity financial assets

0

-102,112

   Proceeds from disposal of held-to-maturity financial assets

0

82,236

   Acquisition of investments accounted for using equity method

-942,591

-9,403,092

   Net cash flow from acquisition of subsidiaries

-771,678

-907,670

   Proceeds from capital reduction of investments accounted for using equity method

11,550

0

   Acquisition of property, plant and equipment

-30,970,004

-60,718,197

   Proceeds from disposal of property, plant and equipment

99,390

132,927

   Increase in refundable deposits

76,382

-71,422

   Acquisition of intangible assets

-71,234

-236,845

   Acquisition of investment properties

0

-11,309

   Proceeds from disposal of investment properties

89

0

   Increase in other financial assets

-292,737

273,317

   Decrease in other non-current assets

211,931

-1,363,882

   Interest received

508,355

467,105

   Dividends received

956,331

431,184

   Net cash flows from (used in) investing activities

-35,652,168

-79,171,814

  Cash flows from (used in) financing activities

 

 

   Increase in short-term loans

205,793,710

299,839,209

   Decrease in short-term loans

-203,954,160

-300,050,470

   Increase in short-term notes and bills payable

-10,674,204

2,106,870

   Proceeds from issuing bonds

34,900,000

19,894,618

   Repayments of bonds

-3,500,000

-11,275,000

   Proceeds from long-term debt

41,533,502

63,921,305

   Repayments of long-term debt

-61,918,263

-48,495,770

   Increase in other borrowings

0

3,098,302

   Decrease in other borrowings

-14,862,621

0

   Increase in other non-current liabilities

223,170

-55,213

   Cash dividends paid

-10,709,909

-5,976,436

   Payments to acquire treasury shares

-198,602

0

   Proceeds from sale of treasury shares

0

281,372

   Interest paid

-3,808,487

-3,650,011

   Change in non-controlling interests

-2,388,290

-2,037,708

   Net cash flows from (used in) financing activities

-29,564,154

17,601,068

  Effect of exchange rate changes on cash and cash equivalents

881,293

886,863

  Net increase (decrease) in cash and cash equivalents

118,215

-6,417,814

  Cash and cash equivalents at beginning of period

10,541,442

16,959,256

  Cash and cash equivalents at end of period

10,659,657

10,541,442

   Cash and cash equivalents reported in the statement of financial position

13,632,013

13,700,839

   Other items qualifying for cash and cash equivalents under the definition of IAS 7

-2,972,356

-3,159,397

 

Note: Subject didn’t submit its individual financial information; we obtained its consolidated financials as follows 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

 

1

Trial Number

2012,Xiongbu,552

Trial Date

2012-4-23

Reason

Payment for salary

Claimant:

Tianyou Chen

Jinman Xiao

Defeng Chen

Ande Lin

Defendant:

China Steel Corporation

China Steel Machinery Limited (Liberal Translation)

He Xiong Industrial Co., Ltd (Liberal Translation)

2

Trial Number

2008,Xiongbu,2431

Trial Date

2008-12-3

Reason

Compensation for damages

Complainant

Yongzhi Qian

Defendant

China Steel Corporation

 

 


Special Note

 

Interview Details

Department

Sales Department

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.47

UK Pound

1

Rs.98.47

Euro

1

Rs.70.69

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

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.