MIRA INFORM REPORT

Report No. :	324348
Report Date :	29.05.2015

IDENTIFICATION DETAILS

Name :	NAN YA PLASTICS CORPORATION
Registered Office :	No.101, Shuiguan Rd., Renwu Dist., Kaohsiung City 81465
Country :	Taiwan
Financials (as on) :	31.12.2014
Date of Incorporation :	22.08.1958
Com. Reg. No.:	75370905
Legal Form :	Joint Stock Company
Line of Business :	Subject is manufacturing and sales of chemicals
No. of Employee :	About 12,600

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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
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, negotiations on follow-on components of ECFA, including an agreement on trade in services, deals 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 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 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 fourth largest, behind those of China, Japan, and Russia. 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 entry-level jobs.

Source : CIA

Contact Points

Company Name:	NAN YA PLASTICS CORPORATION
Supplied Name:	NANYA PLASTICS CORPORATION
Trading Address:	3F, 201 Tung-Hwa North Road, Taipei, Taiwan
Supplied Address:	Petrochemicals Division 201 Tung Hwa N Road Taipei
Telephone Number:	+886-2-2712-2211
Fax Number:	+886-2-2713-8248
E-mail:	nanya@npc.com.tw
Website:	www.npc.com.tw

Notes: The exact address is above.

Company Identification Details

Registered Name:	NAN YA PLASTICS CORPORATION
Registered Address:	No.101, Shuiguan Rd., Renwu Dist., Kaohsiung City 81465, Taiwan (R.O.C.)
Date of Foundation:	1958-8-22
Registration Number:	75370905
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 79,308,215,890 (USD 2,537,862,909) (As of 2015.5, 1 NTD = 0.032USD)
Paid-up Capital:	NTD 79,308,215,890 (USD 2,537,862,909)
Legal Representatives:	Jiazhao Wu
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sales of chemicals
Staff:	About 12,600 Employees
Listed at Stock Exchange:	Yes; Stock Symbol: 1303
Date of Last Annual Return:	2014-10-14

History

Subject was incorporated on 1958-08-22 with registered number 75370905 as Joint Stock Company in Taiwan.

Subject was listed on Taiwan Stock Exchange on 1967-11-5.

Corporate Structure

Factories

1
Name:	Kaohsiung Plant
Address:	No.35-1, Jhongshan 3rd Rd., Cianjhen District, Kaohsiung City 806, Taiwan (R.O.C.)
Date of Foundation:	1957-7-9
Date of Registration:	1959-1-1
Factory Registration Number:	64000002
Factory Manager:	Zongyang Su
Status:	In Production
Date of Last Annual Return:	2009-10-16
Major Products:	184 Synthetic resin, plastic and rubber 220 Plastic-rubber products 283 Electric wire and wiring accessories
2
Name:	Tai Ran Plant
Address:	No.57, Weiwang Street, Shu Lin Distict, New Taipei Taiwan (R.O.C.)
Date of Foundation:	1969-1-1
Date of Registration:	1978-5-15
Factory Registration Number:	99601027
Factory Manager:	Jianfa Weng
Status:	In Production
Date of Last Annual Return:	2013-9-23
Major Products:	114 Printing and dyeing finishing

Branch Companies

1
Name	Mai Liao Branch
Registered Address	No.1-1, Formosa Industrial Park, Sansheng Village, Miaoliao Township, Yunlin County, Taiwan
Registration Number	84897162
Date of Registration	1994-10-3
Manager Name	Zongyue Shi
Date of Last Annual Return	2014-8-8
2
Name	Xin Gang Branch
Registered Address	No.2, Zhongyang Industrial Park, Zhongyang Village, Xingang Township, Jiayi County, Taiwan
Registration Number	84709751
Date of Registration	1994-3-17
Manager Name	Mingren Zou
Date of Last Annual Return	1998-8-24
3
Name	Taipei Branch
Registered Address	1F., No. 201, Tung Hwa North Road, Taipei City, Taiwan
Registration Number	20754420
Date of Registration	1966-6-27
Manager Name	Peihuo Cai
Date of Last Annual Return	2003-9-26

Related Companies

1
Name	Nan Ya Technology Corporation
Address	Hwa Ya Technology Park, 669, Fu Hsing 3rd Rd., Kueishan, Taoyuan 333, Taiwan
Tel	+886-3-328-1688
Fax	+886-3-396-0997
2
Name	Inotera Memories Inc
Address	667, Fuhsing 3rd Rd, Hwa-Ya Technology Park, Kueishan, Taoyuan 333, Taiwan
Tel	+886-3-327-2988
3
Name	Nan Ya Printed Circuit Board Corp
Address	No.338, Sec.1 Nankan Rd., Luchu Hsiang, Taoyuan County, Taiwan
Tel	+886-3-322-3751
4
Name	Nan Ya Plastic Corporation America
Address	9 Peach Tree Hill Road, Livingston, NJ 07039
Tel	+1-973-992-2090
Fax	+1-973-716-7470
5
Name	Nan Ya Photonics Inc.
Address	No. 55, Wei Wang St., Shu-Lin, Taipei County, Taiwan238, R.O.C.
Tel	+886-2-2680-6311
Fax	+886-2-2680-9611

Shareholders

Major Shareholders

Name	Subscription Shares
Jiazhao Wu	79,030
Wenyuan Wang	628,829
Formosa Petrochemical Corporation	179,214,423
Ruiyu Wang	19,052,421
Yunpeng Zhu	1,199
Qinren Wu	67,413
Guiyun Wang	11,613,271
Formosa Chemicals & Fibre Corp.	413,327,750
Mingren Zou	188,742
Fengqin Lin	25,458
Yuanshan Liu	52,645
Richun Jian	303,377
Fu Lin Investment Co., Ltd (Liberal Translation)	3,287,472
Formosa Plastics Corporation	783,260,376
Deyao Chen	293

Shareholder Information:

1
Registered Name:	Formosa Plastics Corporation
Registered Address:	No.39, Chung Shan 3rd Rd., Kaohsiung City, Taiwan, R.O.C.
Date of Foundation:	1954-11-5
Registration Number:	75708007
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 63,657,407,810 (USD 2,037,037,050) (As of 2015.5, 1 NTD = 0.0320 USD)
Paid-up Capital:	NTD 63,657,407,810 (USD 2,037,037,050)
Legal Representatives:	Zhicun Li
Legal Form:	Joint Stock Company
Listed at Stock Exchange:	No
Date of Last Annual Return:	2014-8-21
2
Registered Name:	Fu Lin Investment Co., Ltd (Liberal Translation)
Registered Address:	1F., No.103, Sec. 2, Ziyou Rd., Central Dist., Taichung City, Taiwan (R.O.C.)
Date of Foundation:	2006-1-12
Registration Number:	28075924
Registry:	Taichung City Government
Registered Capital:	NTD 454,450,000 (USD 14,542,400) (As of 2015.5, 1 NTD = 0.0320 USD)
Legal Representatives:	Wen Zhang
Legal Form:	Private Limited Liability Company
Listed at Stock Exchange:	No
Date of Last Annual Return:	2009-8-14
3
Registered Name:	Formosa Chemicals & Fibre Corp.
Registered Address:	No. 359, Chungshan Road, Sec. 3, Chang Hwa City, Chang Hwa County, Taiwan, R.O.C.
Date of Foundation:	1965-3-5
Registration Number:	58650902
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 58,611,862,910 (USD 1,875,579,613) (As of 2015.5, 1 NTD = 0.0320 USD)
Paid-up Capital:	NTD 58,611,862,910 (USD 1,875,579,613)
Legal Representatives:	Wenyuan Wang
Legal Form:	Joint Stock Company
Listed at Stock Exchange:	No
Date of Last Annual Return:	2014-11-21
4
Registered Name:	Formosa Petrochemical Corporation
Registered Address:	No.1-1,Formosa Plastic Group Industrial Zone,Mai-Liao Township, Yunlin County,Taiwan,R.O.C.
Date of Foundation:	1992-4-6
Registration Number:	86522210
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 95,259,596,520 (USD 3,048,307,089) (As of 2015.5, 1 NTD = 0.0320 USD)
Paid-up Capital:	NTD 95,259,596,520 (USD 3,048,307,089)
Legal Representatives:	Baolang Chen
Legal Form:	Joint Stock Company
Listed at Stock Exchange:	No
Date of Last Annual Return:	2014-11-21

Management Information

Core Management

Directors

1
Name	Jiazhao Wu
Position	Board Chairman & Manager
Date of Appointment for Manager	2003-11-4
2
Name	Wenyuan Wang
Position	Executive Director
3
Name	Wenchao Wang
Position	Executive Director
4
Name	Ruiyu Wang
Position	Executive Director
5
Name	Zhigang Wang
Position	Executive Director(Independent Director)
6
Name	Yongsan Li
Position	Independent Director
7
Name	Yunpeng Zhu
Position	Independent Director
8
Name	Qinren Wu
Position	Director
9
Name	Guiyun Wang
Position	Director & Manager
Date of Appointment for Manger	1993-8-27
10
Name	Shenyi Li
Position	Director
11
Name	Mingren Zou
Position	Director & Manager
Date of Appointment for Manger	2005-8-25
12
Name	Fengqin Lin
Position	Director & Manager
Date of Appointment for Manger	2003-11-4
13
Name	Yuanshan Liu
Position	Director & Manager
Date of Appointment for Manager	1993-2-26
14
Name	Richun Jian
Position	Director
15
Name	Qingzheng Zhang
Position	Director
16
Name	Chenqin Fu
Position	Supervisor
17
Name	Deyao Chen
Position	Supervisor
18
Name	Zhenxiao Lei
Position	Supervisor
19
Name	Maoxiang Lin
Position	Manager
Date of Appointment	2004-3-3
20
Name	Hongguo Zheng
Position	Manager
Date of Appointment	2009-8-28
21
Name	Yizhong Cai
Position	Manager
Date of Appointment	2009-8-28
22
Name	Bing Wu
Position	Manager
Date of Appointment	2009-8-28
23
Name	Zhengzhong Li
Position	Manager
Date of Appointment	2009-8-28
24
Name	Xinyi Huang
Position	Manager
Date of Appointment	2009-8-28
25
Name	Dongfa Zhang
Position	Manager
Date of Appointment	2012-3-23

Personnel Structure

Total Employees

About 12,600 Employees

Operation Information

Offices & Factories

	Headquarters
Add	3F, 201 Tung-Hwa North Road, Taipei, Taiwan

Production Information

Subject is engaged in manufacturing of chemicals and etc.

Subject has factories in Taiwan, mainland of China and United States for production.

From public files we obtained subject’s annual production capacities information as following for references:

Annual Production Capacities

Unit: Tons

Product	Annual Production Capacity
AA/AE	108,000/154,000
PVC	494,000
VCM	800,000
Caustic Soda	1230,000
HDPE	350,000
Carbon Fiber	8,800
EVA/LDPE	240,000
AN	280,000
LLDPE	264,000
MMA	98,000
MTBE/B-1	174,000/32,000
ECH	100,000
NBA	250,000

Purchase Information

The registered activities of subject:

Business Code	Details
C301010	Spinning industry
C302010	Weaving industry
C303010	Unwoven cloth industry
C305010	Dyeing and finishing industry
C601040	Finished paper manufacturing industry
C601990	Other paper products manufacturing industry
C801010	Basic chemical industry
C801020	Raw materials for Petrochemical industry manufacturing industry
C801060	Synthetic rubber manufacturing industry
C801100	Synthetic resin and plastic manufacturing industry
C801110	Fertilizer manufacturing industry
C801120	Synthetic fiber manufacturing industry
C801990	Other chemical material manufacturing industry
C802041	Western medicine manufacturing industry
C802120	Industrial aid manufacturing industry
C802170	Toxic chemicals manufacturing industry
C802200	Coating, paint and dye manufacturing industry
C805010	Plastic, cloth, plate and tubular product manufacturing industry
C805020	Plastic film and bag manufacturing industry
C805070	Reinforced plastics manufacturing industry
C805990	Other plastic products manufacturing industry
C901020	Glass and glass product manufacturing industry
C901060	Refractory material manufacturing industry
CB01010	Machine manufacturing industry
CB01030	air treatment equipment manufacturing industry
CB01990	Other machinery manufacturing industry
CC01010	Generate electricity, electricity transmission, power distribution machinery manufacturing industry
CC01080	Electronic parts manufacturing industry
CC01090	Battery manufacturing industry
CQ01010	Mould manufacturing industry
CZ99990	Unclassified other industrial products
D101050	Steam/electricity co-generation industry
D401010	Heat energy supplying industry
E599010	Piping engineering industry
E601010	Electric product decorating industry
E603050	Automata controller project industry
E604010	Mechanism installation industry
EZ15010	Heat preservation, cold insulation installation project industry
H701020	Industrial plants renting industry
H701040	Specific area developing industry
I199990	Other service industry
ID01010	Apparatus for weights and measures industry
IZ99990	Other industrial and commercial service industry
J101030	Litter cleaning industry
J101040	Litter dealing industry
J101050	Environment measuring service industry
J101060	Sewage treatment industry
CE01021	Apparatus for weights and measures manufacturing industry
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 from China, Southeast Asia, USA and etc.

Sales Information

Subject is engaged in sale of chemical products, etc.

Subject’s selling territory includes China, Japan, South Korea, Southeast Asia, USA and etc.

Subject’s major customers are electronics, automobiles, plastic products, textiles, electrical engineering and etc.

Major Products

Department	Product
Electronic Material	Copper-Clad Laminates, Epoxy Resins, Glass Fabrics, Liquid Crystal Displays And Copper Foils
Plastic Raw Material	Glycol, Butylene Glycol, Bisphenol A, Toluene Diisocyanate, Plasticizers
Plastic Products	Plastic Plaster, Poly Urethane (PU) Synthetic Leathers, Polypropylene (PP) Rubber Fabrics, Polyvinyl Chloride (PVC) Plastic Injection Products
Fiber Products	Polyester Products, Dyeing Products

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	Plastic products, etc.
Selling Terms	T/T, Cash, etc.

Export

Product	Plastic products, etc.
Selling Terms	L/C, T/T, 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	36,632,716	24,547,373
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	0	0
Current available-for-sale financial assets
Current available-for-sale financial assets, net	40,842,667	43,162,997
Notes receivable, net
Notes receivable, net	8,032,090	6,917,412
Accounts receivable, net
Accounts receivable, net	34,845,415	35,330,345
Accounts receivable due from related parties, net
Accounts receivable due from related parties, net	11,521,600	2,532,219
Other receivables
Other receivables, net	2,575,117	1,700,011
Other receivables due from related parties
Other receivables due from related parties, net	24,010,378	63,778,842
Inventories
Total inventories	47,379,663	45,220,280
Other current assets
Total other current assets	5,851,585	6,410,802
Total current assets	211,691,231	229,600,281
Non-current assets
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets, net	22,491,849	10,515,714
Non-current financial assets at cost
Non-current financial assets at cost, net	2,998,687	3,009,879
Investments accounted for using equity method
Investments accounted for using equity method, net	129,204,326	114,532,675
Property, plant and equipment
Total property, plant and equipment	145,079,151	147,810,707
Intangible assets
Total intangible assets	139,535	247,060
Deferred tax assets	8,281,938	6,430,974
Other non-current assets
Prepayments for business facilities	2,305,980	2,418,547
Long-term notes and accounts receivable
Overdue receivables	0	0
Long-term notes and accounts receivable, net	0	0
Non-current prepaid pension cost	1,014	1,014
Other non-current assets, others
Total other non-current assets, others	10,457,816	9,943,279
Total other non-current assets	12,764,810	12,362,840
Total non-current assets	320,960,296	294,909,849
Total assets	532,651,527	524,510,130
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	9,201,472	14,337,560
Short-term notes and bills payable
Total short-term notes and bills payable	0	4,499,306
Current financial liabilities at fair value through profit or loss
Total current financial liabilities at fair value through profit or loss	0	0
Accounts payable
Total accounts payable	7,973,470	7,104,310
Accounts payable to related parties
Total accounts payable to related parties	8,810,017	11,456,920
Other payables
Total other payables	13,977,003	15,025,997
Other payables to related parties	32,600	15,900
Other current liabilities
Long-term liabilities, current portion
Bonds payable, current portion	25,660,654	17,987,255
Long-term borrowings, current portion	4,919,981	22,718,829
Total long-term liabilities, current portion	30,580,635	40,706,084
Other current liabilities, others	1,092,900	915,947
Total other current liabilities	31,673,535	41,622,031
Total current liabilities	71,668,097	94,062,024
Non-current liabilities
Non-current financial liabilities at fair value through profit or loss
Total non-current financial liabilities at fair value through profit or loss	0	0
Bonds payable
Total bonds payable	63,592,267	73,214,727
Long-term borrowings
Total long-term borrowings	29,991,393	29,604,621
Deferred tax liabilities
Total deferred tax liabilities	7,817,402	6,612,663
Other non-current liabilities
Accrued pension liabilities	24,625,157	24,818,051
Guarantee deposits received	617,021	645,271
Other non-current liabilities, others	192,608	205,222
Total other non-current liabilities	25,434,786	25,668,544
Total non-current liabilities	126,835,848	135,100,555
Total liabilities	198,503,945	229,162,579
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	79,308,216	79,308,216
Share capital awaiting retirement	0	0
Total capital stock	79,308,216	79,308,216
Capital surplus
Capital surplus, employee share options	0	0
Capital surplus, share options	0	0
Capital Surplus, restricted stock	0	0
Capital surplus, others	22,926,996	21,917,718
Total capital surplus	22,926,996	21,917,718
Retained earnings
Total retained earnings	154,809,420	138,092,702
Other equity interest
Total other equity interest	62,417,658	43,134,677
Treasury shares	0	1,945
Total equity attributable to owners of parent	319,462,290	282,451,368
Non-controlling interests	14,685,292	12,896,183
Total equity	334,147,582	295,347,551
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	185,067

Profit and Loss Account

Unit: NTD/000

Consolidated	2014	2013
Operating revenue
Total operating revenue	325,473,146	311,005,289
Operating costs
Total operating costs	296,426,556	278,338,457
Gross profit (loss) from operations	29,046,590	32,666,832
Unrealized profit (loss) from sales	0	0
Realized profit (loss) on from sales	-13,492	-5,605
Gross profit (loss) from operations	29,033,098	32,661,227
Operating expenses
Selling expenses
Total selling expenses	9,973,544	9,626,789
Administrative expenses
Total administrative expenses	8,068,366	8,222,295
Total operating expenses	18,041,910	17,849,084
Net operating income (loss)	10,991,188	14,812,143
Non-operating income and expenses
Other income
Total other income	4,386,359	3,972,786
Other gains and losses
Other gains and losses, net	5,770,598	1,646,672
Finance costs
Finance costs, net	2,147,670	2,200,700
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	15,515,623	12,726,562
Total non-operating income and expenses	23,524,910	16,145,320
Profit (loss) from continuing operations before tax	34,516,098	30,957,463
Tax expense (income)
Current tax expense (income)	1,699,345	5,893,763
Total tax expense (income)	1,699,345	5,893,763
Profit (loss) from continuing operations	32,816,753	25,063,700
Profit (loss)	32,816,753	25,063,700
Other comprehensive income
Exchange differences on translation	7,993,127	5,235,320
Unrealised gains (losses) on valuation of available-for-sale financial assets	8,469,631	10,266,627
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	3,114,468	2,371,300
Other comprehensive income	-6,942	11,245
Income tax related to components of other comprehensive income	287,303	106,376
Other comprehensive income, net	19,282,981	17,778,116
Total comprehensive income	52,099,734	42,841,816
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	31,785,279	25,271,588
Profit (loss), attributable to non-controlling interests	1,031,474	-207,888
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	51,068,260	43,049,704
Comprehensive income, attributable to non-controlling interests	1,031,474	-207,888
Basic earnings per share
Basic earnings (loss) per share from continuing operations	4.01	3.19
Total basic earnings per share	4.01	3.19

Cash Flows

Unit: NTD/000

Consolidated	2014	2013
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	34,516,098	30,957,463
Profit (loss) before tax	34,516,098	30,957,463
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	15,326,343	14,744,325
Amortization expense	1,949,764	1,413,952
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	0	-28,560
Interest expense	2,147,670	2,200,700
Interest income	-1,387,839	-1,524,253
Share of loss (profit) of associates and joint ventures accounted for using equity method	-15,515,623	-12,726,562
Loss (gain) on disposal of property, plan and equipment	31,540	-374,930
Property, plan and equipment transferred to expenses	0	12,160
Loss (gain) on disposal of investments	-4,538,705	-20,055
Unrealized profit (loss) from sales	13,492	5,605
Unrealized foreign exchange loss (gain)	-721,212	-185,071
Other revenue, overdue dividends and compensation of board and directors	-918	-54,895
Other adjustments to reconcile profit (loss)	120,666	-4,667
Total adjustments to reconcile profit (loss)	-2,574,822	3,457,749
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in notes receivable	-1,114,678	-1,182,990
Decrease (increase) in accounts receivable	-8,086,596	-3,850,530
Decrease (increase) in other receivable	-793,881	150,017
Decrease (increase) in inventories	-2,939,415	-2,364,495
Decrease (increase) in other current assets	554,421	-1,436,244
Total changes in operating assets	-12,380,149	-8,684,242
Changes in operating liabilities
Increase (decrease) in accounts payable	-1,820,797	-171,805
Increase (decrease) in other payable	-1,053,922	-703,199
Increase (decrease) in other current liabilities	176,953	-339,758
Increase (decrease) in accrued pension liabilities	-192,894	-339,956
Total changes in operating liabilities	-2,890,660	-1,554,718
Total changes in operating assets and liabilities	-15,270,809	-10,238,960
Total adjustments	-17,845,631	-6,781,211
Cash inflow (outflow) generated from operations	16,670,467	24,176,252
Interest received	1,306,614	1,553,896
Dividends received	7,128,769	2,175,466
Interest paid	-2,309,531	-2,283,999
Income taxes refund (paid)	-2,463,737	-195,079
Net cash flows from (used in) operating activities	20,332,582	25,426,536
Cash flows from (used in) investing activities
Acquisition of available-for-sale financial assets	-7,053,280	-4,300,005
Proceeds from disposal of available-for-sale financial assets	8,691,387	1,752,993
Proceeds from capital reduction of financial assets at cost	15,818	0
Acquisition of investments accounted for using equity method	-1,186,296	-11,399,315
Proceeds from disposal of investments accounted for using equity method	3,650,366	0
Acquisition of property, plant and equipment	-6,240,125	-9,757,385
Proceeds from disposal of property, plant and equipment	55,378	988,493
Increase in refundable deposits	952	-2,536
Increase in other receivables due from related parties	39,768,464	-19,250,936
Increase in other non-current assets	-3,849,901	-4,331,277
Net cash flows from (used in) investing activities	33,852,763	-46,299,968
Cash flows from (used in) financing activities
Increase in short-term loans	-5,136,088	5,012,421
Increase in short-term notes and bills payable	-4,499,306	4,499,306
Proceeds from issuing bonds	14,966,816	31,262,271
Repayments of bonds	-18,000,000	-17,500,000
Proceeds from long-term debt	19,485,924	10,021,963
Repayments of long-term debt	-36,898,000	-13,623,695
Decrease in guarantee deposits received	-28,250	30,655
Increase in other payables to related parties	16,700	1,900
Increase in other non-current liabilities	8,695	18,715
Cash dividends paid	-15,069,990	-2,353,884
Change in non-controlling interests	9,800	1,844,215
Net cash flows from (used in) financing activities	-45,143,699	19,213,867
Effect of exchange rate changes on cash and cash equivalents	3,043,697	865,120
Net increase (decrease) in cash and cash equivalents	12,085,343	-794,445
Cash and cash equivalents at beginning of period	24,547,373	25,341,818
Cash and cash equivalents at end of period	36,632,716	24,547,373
Cash and cash equivalents reported in the statement of financial position	36,632,716	24,547,373

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

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

Bankers

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

Public Record

Mortgage

1
Case Type:	Chattel Mortgage
File No.:	071125
Debtor Name:	Nan Ya Plastics Corporation
Document Number:	09005130280
Date of Registration:	2001-8-13
Date of Alteration:	2005-7-25
2
Case Type:	Chattel Mortgage
File No.:	094983
Debtor Name:	Nan Ya Plastics Corporation
Document Number:	09705128310
Date of Registration:	2008-7-11
Date of Alteration:	--
3
Case Type:	Chattel Mortgage
File No.:	095014
Debtor Name:	Nan Ya Plastics Corporation
Document Number:	09705129790
Date of Registration:	2008-7-16
Date of Alteration:	2012-7-26
4
Case Type:	Chattel Mortgage
File No.:	078084
Debtor Name:	Nan Ya Plastics Corporation
Document Number:	09200506900
Date of Registration:	2003-12-23
Date of Alteration:	--
5
Case Type:	Chattel Mortgage
File No.:	098008
Debtor Name:	Nan Ya Plastics Corporation
Document Number:	09830470480
Date of Registration:	2009-8-21
Date of Alteration:	--

Lawsuit

Trial Number:	2008,Xiongbu, 2387
Date of Trial:	2008-11-26
Reason:	Payment for retirement benefits
Claimant:	Not Stated
Defendant:	Nan Ya Plastics Corporation

Special Note

Interview Details

Department

Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.90
UK Pound	1	Rs.98.16
Euro	1	Rs.69.74

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	ASH

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.