MIRA INFORM REPORT

 

 

Report No. :

327550

Report Date :

22.06.2015

 

IDENTIFICATION DETAILS

 

 

 

Registered Office :

136, Sec.4, Chung Hsing Road, Chutung, Hsinchu, R.O.C.

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2014 - Consolidated

 

 

Date of Incorporation :

06.12.1974

 

 

Com. Reg. No.:

47056834

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and Trading of Glass, Ceramic and Related Products.

 

 

No. of Employees :

About 250 Employees

 

 

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, 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 Glaze Co., Ltd.

Supplied Name:

CHINA GLAZE CO., LTD

Trading Address:

136, Sec.4, Chung Hsing Road, Chutung, Hsinchu, Taiwan, R.O.C.

Supplied Address:

136, SEC.4, CHUNG HSING ROAD, CHUTUNG, HSINCHU,TAIWAN,

Telephone Number:      

+886-3-582-4128

Fax Number:

+886-3-582-0543

E-mail:

Info@mail.china-glaze.com.tw

Notes: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

China Glaze Co., Ltd.

Registered Address:

136, Sec.4, Chung Hsing Road, Chutung, Hsinchu, Taiwan, R.O.C.

Date of Foundation:

1974-12-6

Registration Number:

47056834

Registry:

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

Registered Capital:

NTD 2,300,000,000 (USD 73,600,000)

(As of 2015.06, 1 NTD = 0.032 USD)

Paid-up Capital:

NTD 1,898,203,830 (USD 60,742,523)

Legal Representatives:

Xianzong Cai

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and trading of glass, ceramic and related products..

Staff:

About 250 Employees (Taiwan)

Listed at Stock Exchange:

No

Date of Last Annual Return:

2014-7-1

 

 

History

 

Subject was incorporated on 1974-12-6 with registered number 47056834 as Joint Stock Company in Taiwan.

 

The subject has listed on Taiwan exchange on 1996-4-30.

 

 

Corporate Structure

 

Subsidaries

1

Name

C.G.C. Development Ltd.

2

Name

Long Hua Co., Ltd (Liberal Translation)

3

Name

Yuan Sheng Co., Ltd (Liberal Translation)

 

Contact Office

Name

Yingko Liaison Office

Address

Taoyuan County Rural Xingfeng Pate Road, Lane 86, 2345

Telephone Number

+886-3-3678915

Fax Number

+886 -3-3678796

 

Factories

1

Address:

136, Sec.4, Chung Hsing Road, Chutung, Hsinchu, Taiwan, R.O.C.

Date of Foundation:

1969-1-1

Date of Registration:

1976-4-27

Factory Registration Number:

99630156

Factory Manager:

Xianzong Cai

Status:

In Production

Date of Last Annual Return:

2011-7-14

Major Products:

184 Synthetic resin, plastic and rubber.
185 Man-made fibre
192 Coating, dyes and pigment.
199 Other chemical products.
231 Glass and glassware.
232 Construction materials of fire retarding materials and clay, and ceramic product.
233 Cement and its products.
234 Stone products.
239 Other non-metallic mineral products
264 Optoelectronic materials and products
269 Other electronic components.

2

Name:

Miaoli Plant

Address:

No.65-18, Tongxiao Township, Miaoli County, Taiwan (R.O.C.)

Date of Foundation:

1997-2-15

Date of Registration:

1998-1-27

Factory Registration Number:

99631630

Factory Manager:

Xianzong Cai

Status:

In Production

Date of Last Annual Return:

2006-8-24

Major Products:

231 Glass and glassware.

Telephone Number

+886-37-752755

Fax Number

+886-37-762168

3

Name

PT. China Glaze Indonesia

Address

Kawasan Industri Suryacipta Jl Surya Lestari Kav 1-17C Kutamekar,Ciampel Karawang Jawa Barat 41361 Indonesia

Telephone Number

+62-267-440-938

Fax Number

+62-267440-889

4

Name

Guangdong Sanshui T&H glaze Ltd.

Address

Foshan City, Guangdong Province, China Town, Sanshui District, Datang Town Da-Busha industry zone.

Telephone Number

+86-757-87293010

Fax Number

+86-757-87293862

5

Name

Shanghai T&H glaze Ltd.

Address

China Shanghai city Meilong Town Jindu Road No.538 Side, Minhang District

Telephone Number

+86-21-64975566

Fax Number

+86-21-64973535

6

Name

Shandong T&H glaze Ltd.

Address

Shandong Province,economic development zone Bai-E Road North side

Telephone Number

+86-533-6258888

Fax Number

+86-533-6256666

 

 

Shareholders

 

Major Shareholders

 

Name

Subscription Shares

Xianzong Cai

17,207,009

Xianlong Cai

14,849,421

Yizhi Cai

3,710,156

Ruinian Cai

1,300,472

Wending Luo

194

Youjie Cai

1,649,838

Kean Cai

97,132

 

 

Management Information

 

Core Management

 

Directors

1

Name

Xianzong Cai

Position

Board Chairman

2

Name

Xianlong Cai

Position

Director

3

Name

Yizhi Cai

Position

Director

4

Name

Ruinian Cai

Position

Director

5

Name

Wending Luo

Position

Director

6

Name

Youjie Cai

Position

Supervisor

7

Name

Kean Cai

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 250 Employees (Taiwan)

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

136, Sec.4, Chung Hsing Road, Chutung, Hsinchu, Taiwan, R.O.C.

 

Production Information

 

Subject is a manufacturer of glass, ceramic and related products, etc.

It is introduced that subject has 6 factories in Taiwan, the mainland of China and Indonesia for production.

It is introduced that subject has obtained ISO 9001, ISO 14001 and etc certifications.

 

Purchase Information

 

The registered activities of subject:

Business Code

Details

 

C901010

Manufacturing of ceramic and ceramic products.

C901020

Manufacturing of glass and glassware.

C801990

Manufacturing of other chemical products and etc.

C802200

Manufacturing of coating, painting, dyes and pigment.

ZZ99999

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

 

Subject purchases its raw materials and etc both at home and abroad.

 

Sales Information

 

Subject is engaged in sale of glass, ceramic and related products, etc.

The major products include optical nanomaterials, ceramic colours, building materials and so on.

Subject’s sales regions cover Asia, Europe, America and etc.

Subject’s major customers are construction industry, manufacturers of electronics and etc

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

PURCHASE

 

Domestic Purchase

Products

Raw materials and etc

Payment Terms

Cash, T/T and etc

 

Import

Products

Raw materials and etc

Payment Terms

L/C, T/T and etc

 

SALES

 

Domestic Markets

Product

Glass, ceramic and related products, etc.

Selling Terms

Cash, T/T and etc

 

Export

Product

Glass, ceramic and related products, etc.

Selling Terms

L/C, T/T and etc

 

 

Balance Sheet

 

Unit: NTD/000

Consolidated

2014-12-31

2013-12-31

  Assets

 

 

   Current assets

 

 

    Cash and cash equivalents

 

 

     Total cash and cash equivalents

685,304

582,303

    Current financial assets at fair value through profit or loss

 

 

     Total current financial assets at fair value through profit or loss

19,534

12,653

    Notes receivable, net

 

 

     Notes receivable, net

203,348

210,386

    Accounts receivable, net

 

 

     Accounts receivable, net

980,208

905,823

    Construction contracts receivable

1,831

3,229

    Other receivables

 

 

     Other receivables, net

12,406

39,312

    Inventories

 

 

     Total inventories

969,211

1,177,519

    Other current assets

 

 

     Total other current assets

990,609

805,570

    Total current assets

3,862,451

3,736,795

   Non-current assets

 

 

    Non-current financial assets at cost

 

 

     Non-current financial assets at cost, net

5,979

14,297

    Investments accounted for using equity method

 

 

     Investments accounted for using equity method, net

0

65,977

    Property, plant and equipment

 

 

     Total property, plant and equipment

1,768,860

1,761,915

    Investment property, net

 

 

     Investment property, net

121,369

161,532

    Intangible assets

 

 

     Goodwill

14,072

14,072

     Other intangible assets, net

 

 

      Other intangible assets, net

218

720

     Total intangible assets

14,290

14,792

    Deferred tax assets

72,913

57,565

    Other non-current assets

 

 

     Total other non-current assets

135,731

131,486

    Total non-current assets

2,119,142

2,207,564

   Total assets

5,981,593

5,944,359

  Liabilities

 

 

   Current liabilities

 

 

    Short-term borrowings

 

 

     Total short-term borrowings

299,307

209,400

    Short-term notes and bills payable

 

 

     Total short-term notes and bills payable

29,978

129,950

    Notes payable

 

 

     Total notes payable

152,120

174,639

    Accounts payable

 

 

     Total accounts payable

185,262

218,397

    Construction contracts payable

20,377

20,093

    Other payables

 

 

     Total other payables

140,713

141,082

    Current tax liabilities

15,963

21,140

    Other current liabilities

 

 

     Long-term liabilities, current portion

 

 

      Total long-term liabilities, current portion

117,148

180,712

     Other current liabilities, others

11,926

26,168

     Total other current liabilities

129,074

206,880

    Total current liabilities

972,794

1,121,581

   Non-current liabilities

 

 

    Long-term borrowings

 

 

     Total long-term borrowings

158,088

181,981

    Deferred tax liabilities

 

 

     Total deferred tax liabilities

129,011

118,917

    Other non-current liabilities

 

 

     Accrued pension liabilities

170,078

173,214

     Guarantee deposits received

0

13,170

     Total other non-current liabilities

170,078

186,384

    Total non-current liabilities

457,177

487,282

   Total liabilities

1,429,971

1,608,863

  Equity

 

 

   Equity attributable to owners of parent

 

 

    Share capital

 

 

     Ordinary share

1,898,204

1,898,204

     Total capital stock

1,898,204

1,898,204

    Capital surplus

 

 

     Total capital surplus

182,836

182,836

    Retained earnings

 

 

     Legal reserve

316,859

302,600

     Special reserve

99,759

99,759

     Unappropriated retained earnings (accumulated deficit)

 

 

      Total unappropriated retained earnings (accumulated deficit)

996,923

906,222

     Total retained earnings

1,413,541

1,308,581

    Other equity interest

 

 

     Total other equity interest

105,844

19,420

    Total equity attributable to owners of parent

3,600,425

3,409,041

   Non-controlling interests

951,197

926,455

   Total equity

4,551,622

4,335,496

   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

 

 

   Total operating revenue

3,578,567

3,502,527

  Operating costs

 

 

   Total operating costs

2,796,247

2,764,174

  Gross profit (loss) from operations

782,320

738,353

  Gross profit (loss) from operations

782,320

738,353

  Operating expenses

 

 

   Selling expenses

 

 

    Total selling expenses

266,402

250,149

   Administrative expenses

 

 

    Total administrative expenses

248,476

233,294

   Research and development expenses

 

 

    Total research and development expenses

72,365

68,894

   Total operating expenses

587,243

552,337

  Net other income (expenses)

 

 

   Net other income (expenses)

4,001

21,520

  Net operating income (loss)

199,078

207,536

  Non-operating income and expenses

 

 

   Other income

 

 

    Total other income

51,839

33,689

   Other gains and losses

 

 

    Other gains and losses, net

-12,838

-16,217

   Finance costs

 

 

    Finance costs, net

12,008

12,407

   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

-3,843

-9,460

   Total non-operating income and expenses

23,150

-4,395

  Profit (loss) from continuing operations before tax

222,228

203,141

  Tax expense (income)

 

 

   Total tax expense (income)

47,468

49,047

  Profit (loss) from continuing operations

174,760

154,094

  Profit (loss)

174,760

154,094

  Other comprehensive income

 

 

   Exchange differences on translation

119,819

137,029

   Actuarial gains (losses) on defined benefit plans

8,277

15,330

   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

0

731

   Income tax related to components of other comprehensive income

1,384

2,606

   Other comprehensive income, net

126,712

150,484

  Total comprehensive income

301,472

304,578

  Profit (loss), attributable to:

 

 

   Profit (loss), attributable to owners of parent

164,504

142,588

   Profit (loss), attributable to non-controlling interests

10,256

11,506

  Comprehensive income attributable to:

 

 

   Comprehensive income, attributable to owners of parent

257,999

243,684

   Comprehensive income, attributable to non-controlling interests

43,473

60,894

  Basic earnings per share

 

 

   Basic earnings (loss) per share from continuing operations

0.87

0.75

   Total basic earnings per share

0.87

0.75

  Diluted earnings per share

 

 

   Diluted earnings (loss) per share from continuing operations

0.86

0.75

   Total diluted earnings per share

0.86

0.75

 

 

Cash Flows

 

Unit: NTD/000

Consolidated

2014

2013

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

 

 

   Profit (loss) from continuing operations before tax

222,228

203,141

   Profit (loss) before tax

222,228

203,141

   Adjustments

 

 

    Adjustments to reconcile profit (loss)

 

 

     Depreciation expense

136,212

119,975

     Amortization expense

506

513

     Provision (reversal of provision) for bad debt expense

9,368

-1,639

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

-1,763

-3,894

     Interest expense

12,008

12,407

     Interest income

-28,708

-20,743

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

3,843

9,460

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

7,420

9,965

     Loss (gain) on disposal of investments

2,877

2,246

     Impairment loss on financial assets

7,937

10,226

     Reversal of impairment loss on non-financial assets

15,447

-15,364

     Total adjustments to reconcile profit (loss)

165,147

123,152

    Changes in operating assets and liabilities

 

 

     Changes in operating assets

 

 

      Decrease (increase) in financial assets held for trading

-5,388

2,133

      Decrease (increase) in notes receivable

7,038

66,130

      Decrease (increase) in accounts receivable

-85,347

-115,286

      Decrease (increase) in other receivable

26,906

3,010

      Decrease (increase) in inventories

192,587

78,937

      Decrease (increase) in other current assets

-185,039

-544,014

      Total changes in operating assets

-49,243

-509,090

     Changes in operating liabilities

 

 

      Increase (decrease) in notes payable

-22,519

-122,152

      Increase (decrease) in accounts payable

-33,135

82,058

      Increase (decrease) in other payable

-1,212

-12,398

      Increase (decrease) in other current liabilities

-13,959

21,966

      Increase (decrease) in accrued pension liabilities

5,141

2,226

      Total changes in operating liabilities

-65,684

-28,300

     Total changes in operating assets and liabilities

-114,927

-537,390

    Total adjustments

50,220

-414,238

   Cash inflow (outflow) generated from operations

272,448

-211,097

   Income taxes refund (paid)

-57,855

-42,186

  Net cash flows from (used in) operating activities

214,593

-253,283

  Cash flows from (used in) investing activities

 

 

   Acquisition of financial assets at cost

-27

0

   Proceeds from disposal of financial assets at cost

1,057

0

   Proceeds from disposal of investments accounted for using equity method

58,590

0

   Acquisition of property, plant and equipment

-87,363

-59,580

   Proceeds from disposal of property, plant and equipment

22,669

1,500

   Acquisition of intangible assets

0

-377

   Increase in other non-current assets

-4,244

12,706

   Interest received

28,708

20,743

   Net cash flows from (used in) investing activities

19,390

-25,008

  Cash flows from (used in) financing activities

 

 

   Increase in short-term loans

89,907

-21,972

   Increase in short-term notes and bills payable

-100,657

30,000

   Proceeds from long-term debt

100,000

27,780

   Repayments of long-term debt

-193,212

-166,911

   Cash dividends paid

-66,437

-56,946

   Interest paid

-10,480

-12,617

   Change in non-controlling interests

-18,621

-17,937

   Net cash flows from (used in) financing activities

-199,500

-218,603

  Effect of exchange rate changes on cash and cash equivalents

68,518

106,926

  Net increase (decrease) in cash and cash equivalents

103,001

-389,968

  Cash and cash equivalents at beginning of period

582,303

972,271

  Cash and cash equivalents at end of period

685,304

582,303

   Cash and cash equivalents reported in the statement of financial position

685,304

582,303

 

Note: Subject did not submit the latest independent financial information to the official registry. We only provide the above consolidated financial information of the subject for your reference.

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

 

 

Bankers

 

1

Name

Taiwan Bank

2

Name

Mega International Commercial Bank Co., Ltd

 

 

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.

 

 

Special Note

 

Interview Details

Department

Sales Department

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.82

UK Pound

1

Rs.101.26

Euro

1

Rs.72.36

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.