MIRA INFORM REPORT

Report No. :	323170
Report Date :	20.05.2015

IDENTIFICATION DETAILS

Name :	CGPC POLYMER CORPORATION
Registered Office :	12F., No.37, Jihu Rd., Neihu Dist., Taipei City 11492
Country :	Taiwan
Financials (as on) :	31.12.2013
Date of Incorporation :	19.05.2009
Com. Reg. No.:	24347565
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and Sale of PVC Powder.
No. of Employee :	100

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
Taiwan	A2	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. Negotiations continue on follow-on components of ECFA regarding trade in goods and a dispute resolution mechanism; a trade in services agreement is under review in the legislature. Taiwan's Total Fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 accounting for 11.2% of the island's total population as of 2012. The island runs a large overall trade surplus largely because of its surplus with China, and its foreign reserves are the world's sixth largest, behind China, Japan, Saudi Arabia, Russia, and Switzerland. In 2006 China overtook the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Taiwan since 2009 has gradually loosened rules governing Chinese investment on the island, and has also secured greater market access for its investors in the mainland. In August 2012, Taiwan Central Bank signed a memorandum of understanding on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese RMB and the New Taiwan dollar across the Strait, which could help develop Taiwan into a local RMB hub. Closer economic links with the mainland bring greater opportunities for the Taiwan economy, but also poses new challenges as the island becomes more economically dependent on China while political differences remain unresolved.

Source : CIA

Contact Points

Company Name:	CGPC Polymer Corporation
Supplied Name:	CGPC POLYMER CORPORATION KAOHSIUNG BRANCH
Trading Address:	12F., No.37, Jihu Rd., Neihu Dist., Taipei City 11492, Taiwan (R.O.C.)
Supplied Address:	NO.8,SHIHUA 2ND RD.LINYUAN DIST. KAOHSIUNG,TAIWAN.
Telephone Number:	+886-2-8751-6888/ 2658-2158
Fax Number:	+886-2-2659-9519

Notes: The exact name and address are as above and the supplied name and address belong to subject’s Kaohsiung branch. (The supplied address also belongs to subject’s Linyuan factory)

Company Identification Details

Registered Name:	CGPC POLYMER CORPORATION
Registered Address:	12F., No.37, Jihu Rd., Neihu Dist., Taipei City 11492, Taiwan (R.O.C.)
Date of Foundation:	2009-5-19
Registration Number:	24347565
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 800,000,000 (USD 26,400,000) (As of 2015.01, 1 NTD = 0.0330 USD)
Paid-up Capital:	NTD 500,000,000 (USD 16,500,000)
Legal Representatives:	Yigui Wu
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sale of PVC powder,
Staff:	About 100 Employees (Company) About 900 Employees (Group)
Listed at Stock Exchange:	No
Date of Last Annual Return:	2014-12-2

History

Subject was incorporated on 2009-5-19 with registered number 24347565 as Joint Stock Company in Taiwan.

Corporate Structure

Factory

Name:	Linyuan Factory
Address:	No.6, 8, Shihua 2nd Rd., Linyuan Dist., Kaohsiung, Taiwan
Date of Registration:	2011-8-19
Factory Registration Number:	64006350
Factory Manager:	Peihong Cai
Status:	In Production
Date of Last Annual Return:	2014-12-7
Major Products:	184 synthetic resin, plastic and rubber

Branch

Name	CGPC Polymer Corporation Kaohsiung Branch
Address	No.8, Shihua 2nd Rd., Linyuan Dist., Kaohsiung, Taiwan
Registration Number	54385853
Date of Registration	2014-7-10
Status	Live
Manager Name	Hanfu Lin
Date of Last Annual Return	2014-7-10

Parent Company

Registered Name:	China General Plastics Corp.
Registered Address:	12^th Floor, No.37, Ji-Hu Road, Nei-Hu Dist., Taipei City, Taiwan, R.O.C.
Date of Foundation:	1964-4-29
Registration Number:	11686106
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 5,000,000,000 (USD 165,000,000) (As of 2015.01, 1 NTD = 0.0330 USD)
Paid-up Capital:	NTD 4,683,034,080 (USD 154,540,125)
Legal Representatives:	Yigui Wu
Legal Form:	Joint Stock Company
Listed at Stock Exchange:	Yes; Stock Code: 1305
Date of Listed:	1973-3-5
Date of Last Annual Return:	2014-8-26

Shareholders

Major Shareholders

Name	Subscription Shares
China General Plastics Corp.
50,000,000

Management Information

Core Management

Directors

1
Name		Yigui Wu
Position		Board Chairman
2
Name	Bingyi Wang
Position		Director
3
Name	Hanfu Lin
Position		Director & Manager
Appointment Date of Manager		2012-5-11
4
Name	Yayi Huang
Position		Supervisor

Operation Information

	Headquarters
Add	12F., No.37, Jihu Rd., Neihu Dist., Taipei City 11492, Taiwan (R.O.C.)

Production Information

Subject is engaged in manufacturing of PVC powder, .

Subject has a factory in Kaohsiung, Taiwan for production.

Subject obtained the certification of ISO 9001.

Purchase Information

l The registered activities of subject:

Business Code	Details
C801020	Manufacturing of petrochemical materials
C805010	Manufacturing of plastic leather, cloth, plate and tube
F107200	Wholesale of chemical raw materials
F107990	Wholesale of other chemical products
F207200	Retail of chemical raw materials
F207990	Retail of other chemical products
C801100	Manufacturing of synthetic resin and plastic
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

l The raw materials for production are mostly purchased in domestic market.

Sales Information

l Subject is engaged in sale of PVC powder, .

l The major products are applied to manufacturing of tubular product, building material, adhesive plaster, electric wire and plug, .

l Subject’s sales regions include Asia, Europe and America, .

l One of subject’s foreign customers is GNB Import Export SA.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

1. Domestic Purchase

Products	Raw materials
Payment Terms	Cash, T/T,

2. Import

Subject has little import.

Sales

1. Domestic Markets

Product	PVC powder,
Selling Terms	Cash, T/T,

2. Export

Product	PVC powder,
Selling Terms	T/T,

Balance Sheet

Unit: NTD/000

Consolidated	2013-12-31	2012-12-31
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	928,585	943,780
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	1,018,538	1,070,753
Current available-for-sale financial assets
Current available-for-sale financial assets, net	3,551	3,135
Current bond investment without active market
Current bond investment without active market, net	207,924	32,925
Notes receivable, net
Notes receivable, net	145,583	223,033
Accounts receivable, net
Accounts receivable, net	1,075,492	1,036,018
Accounts receivable due from related parties, net
Accounts receivable due from related parties, net	147,573	129,799
Other receivables
Other receivables, net	53,953	69,000
Other receivables due from related parties
Other receivables due from related parties, net	22,179	18,875
Inventories
Total inventories	1,682,277	1,340,961
Prepayments
Total prepayments	116,302	39,381
Other current assets
Total other current assets	43,505	152,804
Total current assets	5,445,462	5,060,464
Non-current assets
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets, net	2,690	2,648
Non-current financial assets at cost
Non-current financial assets at cost, net	3,004	2,927
Investments accounted for using equity method
Investments accounted for using equity method, net	291,918	304,076
Property, plant and equipment
Total property, plant and equipment	5,203,400	5,247,719
Investment property, net
Investment property, net	27,715	29,407
Intangible assets
Total intangible assets	37,530	40,776
Deferred tax assets	321,382	322,391
Other non-current assets
Long-term prepaid rents	122,133	120,328
Other non-current assets, others
Total other non-current assets, others	36,271	35,311
Total other non-current assets	158,404	155,639
Total non-current assets	6,046,043	6,105,583
Total assets	11,491,505	11,166,047
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	200,000	207,926
Short-term notes and bills payable
Total short-term notes and bills payable	124,929	371,849
Current financial liabilities at fair value through profit or loss
Total current financial liabilities at fair value through profit or loss	106	4
Notes payable
Total notes payable	262	364
Accounts payable
Total accounts payable	812,923	575,333
Accounts payable to related parties
Total accounts payable to related parties	53,082	341,951
Other payables
Total other payables	544,781	585,084
Other payables to related parties	14,290	15,013
Current tax liabilities	149,560	60,788
Current provisions
Total current provisions	21,196	20,469
Other current liabilities
Long-term liabilities, current portion
Total long-term liabilities, current portion	62,000	62,000
Other current liabilities, others	40,188	38,470
Total other current liabilities	102,188	100,470
Total current liabilities	2,023,317	2,279,251
Non-current liabilities
Long-term borrowings
Total long-term borrowings	1,151,375	1,213,132
Deferred tax liabilities
Total deferred tax liabilities	602,837	608,288
Other non-current liabilities
Accrued pension liabilities	1,393,880	1,391,234
Other non-current liabilities, others	7,277	4,780
Total other non-current liabilities	1,401,157	1,396,014
Total non-current liabilities	3,155,369	3,217,434
Total liabilities	5,178,686	5,496,685
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	4,502,917	4,248,035
Total capital stock	4,502,917	4,248,035
Capital surplus
Total capital surplus	8,239	8,290
Retained earnings
Legal reserve	77,701	0
Special reserve	408,223	0
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	1,023,408	1,210,417
Total retained earnings	1,509,332	1,210,417
Other equity interest
Total other equity interest	30,087	2,541
Treasury shares	0	0
Total equity attributable to owners of parent	6,050,575	5,469,283
Non-controlling interests	262,244	200,079
Total equity	6,312,819	5,669,362
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	2013	2012
Operating revenue
Net sales revenue
Net sales revenue	14,191,319	14,166,158
Total operating revenue	14,191,319	14,166,158
Operating costs
Cost of sales
Total cost of sales	12,228,005	12,104,989
Total operating costs	12,228,005	12,104,989
Gross profit (loss) from operations	1,963,314	2,061,169
Gross profit (loss) from operations	1,963,314	2,061,169
Operating expenses
Selling expenses
Total selling expenses	757,891	719,644
Administrative expenses
Total administrative expenses	227,674	276,828
Research and development expenses
Total research and development expenses	54,492	60,448
Total operating expenses	1,040,057	1,056,920
Net other income (expenses)
Net other income (expenses)	-12,814	-15,779
Net operating income (loss)	910,443	988,470
Non-operating income and expenses
Other income
Total other income	36,766	74,724
Other gains and losses
Other gains and losses, net	62,206	-4,805
Finance costs
Interest expense	27,947	37,102
Finance costs, net	27,947	37,102
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	21,879	18,916
Total non-operating income and expenses	92,904	51,733
Profit (loss) from continuing operations before tax	1,003,347	1,040,203
Tax expense (income)
Total tax expense (income)	170,996	63,802
Profit (loss) from continuing operations	832,351	976,401
Profit (loss) from discontinued operations
Total profit (loss) from discontinued operations	-17,515	-28,713
Profit (loss)	814,836	947,688
Other comprehensive income
Exchange differences on translation	26,525	-29,160
Unrealised gains (losses) on valuation of available-for-sale financial assets	458	13,918
Actuarial gains (losses) on defined benefit plans	-34,983	-38,252
Share of other comprehensive income of associates and joint ventures accounted for using equity method
Share of other comprehensive income of associates and joint ventures accounted for using equity method, exchange differences on translation	867	-725
Share of other comprehensive income of associates and joint ventures accounted for using equity method, unrealized gains (losses) on available-for-sale financial assets	4,210	4,029
Share of other comprehensive income of associates and joint ventures accounted for using equity method, actuarial gains (losses) on defined benefit plans	-518	-1,045
Total share of other comprehensive income of associates and joint ventures accounted for using equity method	4,559	2,259
Income tax related to components of other comprehensive income	-2,028	-11,460
Other comprehensive income, net	-1,413	-39,775
Total comprehensive income	813,423	907,913
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	753,119	833,800
Profit (loss), attributable to non-controlling interests	61,717	113,888
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	751,258	795,212
Comprehensive income, attributable to non-controlling interests	62,165	112,701
Basic earnings per share
Basic earnings (loss) per share from continuing operations	1.71	1.91
Basic earnings (loss) per share from discontinued operations	-0.04	-0.06
Total basic earnings per share	1.67	1.85
Diluted earnings per share
Diluted earnings (loss) per share from continuing operations	1.71	1.91
Diluted earnings (loss) per share from discontinued operations	-0.04	-0.06
Total diluted earnings per share	1.67	1.85

Cash Flows

Unit: NTD/000

Consolidated	2013	2012
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	1,003,347	1,040,203
Profit (loss) from discontinued operations before tax	-17,515	-28,713
Profit (loss) before tax	985,832	1,011,490
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	344,159	471,616
Amortization expense	10,174	8,839
Provision (reversal of provision) for bad debt expense	-19	-9,895
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	-40,622	-44,070
Interest expense	27,947	37,102
Interest income	-13,422	-13,232
Dividend income	-1,003	-894
Share of loss (profit) of associates and joint ventures accounted for using equity method	-21,879	-18,916
Loss (gain) on disposal of property, plan and equipment	-5,105	-10,402
Property, plan and equipment transferred to expenses	1,480	0
Loss (gain) on disposal of investments	-1,002	-13,094
Impairment loss on financial assets	0	29,567
Impairment loss on non-financial assets	3,181	7,870
Reversal of impairment loss on non-financial assets	-7,526	-149,889
Total adjustments to reconcile profit (loss)	296,363	294,602
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in financial assets held for trading	94,627	116,120
Decrease (increase) in notes receivable	77,450	-6,957
Decrease (increase) in accounts receivable	-39,666	218,924
Decrease (increase) in accounts receivable due from related parties	-17,774	223
Decrease (increase) in other receivable	13,628	2,855
Decrease (increase) in other receivable due from related parties	-3,304	35,159
Decrease (increase) in inventories	-180,463	336,577
Decrease (increase) in prepayments	-108,468	3,856
Decrease (increase) in other current assets	5,631	-133,385
Total changes in operating assets	-158,339	573,372
Changes in operating liabilities
Increase (decrease) in notes payable	-102	218
Increase (decrease) in accounts payable	237,590	22,313
Increase (decrease) in accounts payable to related parties	-288,869	223,278
Increase (decrease) in other payable	-27,334	155,086
Increase (decrease) in other payable to related parties	-723	-4,356
Increase (decrease) in provisions	727	-8,802
Increase (decrease) in other current liabilities	1,718	5,694
Increase (decrease) in accrued pension liabilities	-32,337	-20,640
Total changes in operating liabilities	-109,330	372,791
Total changes in operating assets and liabilities	-267,669	946,163
Total adjustments	28,694	1,240,765
Cash inflow (outflow) generated from operations	1,014,526	2,252,255
Interest received	14,841	11,333
Interest paid	-27,800	-36,130
Income taxes refund (paid)	-78,567	-67,991
Net cash flows from (used in) operating activities	923,000	2,159,467
Cash flows from (used in) investing activities
Acquisition of bond investments without active market	-193,924	0
Proceeds from disposal of bond investments without active market	18,925	2,875
Proceeds from disposal of investments accounted for using equity method	39,511	0
Acquisition of property, plant and equipment	-328,525	-461,183
Proceeds from disposal of property, plant and equipment	6,392	13,731
Increase in refundable deposits	-1,692	-426
Decrease in refundable deposits	1,988	2,389
Acquisition of intangible assets	-1,832	-9,887
Decrease in other non-current assets	-1,235	9,654
Dividends received	1,003	2,619
Net cash flows from (used in) investing activities	-459,389	-440,228
Cash flows from (used in) financing activities
Decrease in short-term loans	-12,536	-137,786
Increase in short-term notes and bills payable	100,000	0
Decrease in short-term notes and bills payable	-346,920	-627,842
Proceeds from long-term debt	0	1,670,000
Repayments of long-term debt	-62,000	-2,136,592
Increase in guarantee deposits received	5,561	4,771
Decrease in guarantee deposits received	-3,071	-6,148
Increase in other non-current liabilities	-14	29
Cash dividends paid	-169,926	-8
Disposal of ownership interests in subsidiaries (without losing control)	0	54
Net cash flows from (used in) financing activities	-488,906	-1,233,522
Effect of exchange rate changes on cash and cash equivalents	10,100	-11,297
Net increase (decrease) in cash and cash equivalents	-15,195	474,420
Cash and cash equivalents at beginning of period	943,780	469,360
Cash and cash equivalents at end of period	928,585	943,780
Cash and cash equivalents reported in the statement of financial position	928,585	943,780

Note: Subject has no obligations to disclose its financial statements to the third party according to the relevant policy in Taiwan and the only source from which we can obtain the information is the subject itself.

Subject’s relevant staff declined to disclose its financials citing the grounds of company’s confidentiality; from other sources we found the consolidated financial information of subject’s parent company (China General Plastics Corp.) from public files 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

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

Special Note

Interview Details

Name	Mr. Huang
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.69
UK Pound	1	Rs.99.73
Euro	1	Rs.71.90

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	ANK

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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