MIRA INFORM REPORT

 

 

Report No. :

343539

Report Date :

12.10.2015

 

IDENTIFICATION DETAILS

 

Name :

UNITED PERFORMANCE MATERIALS CORPORATION

 

 

Registered Office :

13F-5, No.206, Sec.2, Nanking E. Rd., Taipei, R.O.C.

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

20.09.1995

 

 

Com. Reg. No.:

89609149

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and Sales of Petroleum Resin.

 

 

No. of Employees :

About 100 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. Following the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, Taiwan in July 2013 signed a free trade deal with New Zealand - Taipei’s first-ever with a country with which it does not maintain diplomatic relations - and, in November, inked a trade pact with Singapore. However, follow-on components of the ECFA, including a signed agreement on trade in services and negotiations on trade in goods and dispute resolution, have stalled. In early 2014, the government bowed to public demand and proposed a new law governing the oversight of cross-Strait agreements, before any additional deals with China are implemented; the legislature has yet to vote on such legislation, leaving the future of ECFA up in the air as President MA enters his final full year in office. MA has portrayed ECFA as Taiwan’s key to greater participation in East Asia’s free trade networks.

 

Taiwan's total fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 expected to account for nearly 20% of the island's total population by 2025.

 

The island runs a trade surplus, largely because of its surplus with China, and its foreign reserves are the world's fifth largest, behind those of China, Japan, Saudi Arabia, and Switzerland. In 2006 China overtook the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Taiwan since 2009 has gradually loosened rules governing Chinese investment on the island and has also secured greater market access for its investors in the mainland. In August 2012, the Taiwan Central Bank signed a memorandum of understanding (MOU) on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese RMB and the New Taiwan dollar across the Strait, which has helped Taiwan develop into a local RMB hub.

 

Closer economic links with the mainland bring greater opportunities for Taiwan’s economy but also pose new challenges as the island becomes more economically dependent on China at a time when political differences remain unresolved. During 2014, the press paid increasing attention to domestic economic issues, while pushing aside the debates over trade liberalization that were a hallmark of MA’s tenure. The media focused on the divide between Taiwan’s “haves” and “have nots,” providing extensive coverage of public frustration with stagnant wages, skyrocketing housing prices, and the difficulty of finding decent entry-level jobs.

 

Source : CIA

 

 

Contact Points

 

Company Name:

United Performance Materials Corporation

Supplied Name:

UNITED PERFORMANCE MATERIALS CORPORATION

Trading Address:

13F-5, No.206, Sec.2, Nanking E. Rd., Taipei, Taiwan, R.O.C.

Supplied Address:

NO. 13F-5, NO.206, SEC.2 NAN KING E. RD TAIPEI, TAIWAN

Telephone Number:

+886-2-2507-2387-129

Fax Number:

+886-2-2507-2097

E-mail:

upmresin@fucc.com.tw

Notes: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

United Performance Materials Corporation

Registered Address:

13F-5, No.206, Sec.2, Nanking E. Rd., Taipei, Taiwan, R.O.C.

Date of Foundation:

1995-09-20

Registration Number:

89609149

Registry:

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

Registered Capital:

NTD 1,500,000,000 (USD 46,500,000)

(As of 2015.10, 1 NTD = 0.031 USD)

Paid-up Capital:

NTD 766,143,420 (USD 23,750,446.02)

Legal Representatives:

Jiaguo Liao

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sales of petroleum resin.

Staff:

About 100 Employees

Listed at Stock Exchange:

Yes; Stock Symbol:4752

Date of Last Annual Return:

2015-07-27

 

 

History

 

Subject was incorporated on 1995-09-20 with registered number 89609149 as Joint Stock Company in Taiwan.

 

Subject listed on Taiwan OTC Stock Market on 2012-12-27.

 

 

Corporate Structure

 

Factory

Name:

Pingnan Factory

Address:

No. 10, Jingjin Rd., Donghai Village, Fangliao Township, Pingdong County, Taiwan

Date of Foundation:

1996-05-20

Date of Registration:

1997-12-10

Factory Registration Number:

99666059

Factory Manager:

Yuxin Yu

Status:

In Production

Date of Last Annual Return:

2015-09-29

Major Products:

199 Other chemical products

184 Synthetic resin, plastic and rubber

 

Branch

Name:

Pingdong Branch

Address:

No. 10, Jingjin Rd., Donghai Village, Fangliao Township, Pingdong County, Taiwan

Date of Foundation:

1997-12-24

Registration Number:

96930974

Factory Manager:

Yuxin Yu

Status:

Live Company

Date of Last Annual Return:

2015-05-11

 

 

Shareholders

 

Major Shareholders

 

Name

Subscription Shares     

Formosan Union Chemical Corporation

61,385,977

Minhong Lei

685,943

 

 

Management Information

 

Core Management

 

Directors

1

Name

Jiaguo Liao

Position

Chairman of the Board

2

Name

Shengshun Huang

Position

Director

3

Name

Zongyi Cao

Position

Director

4

Name

Fuhua Liao

Position

Director

5

Name

Ruichen Wang

Position

Independent Director

6

Name

Chang Chen

Position

Independent Director

7

Name

Zhuhua Yang

Position

Independent Director

8

Name

Minhong Lei

Position

Supervisor

9

Name

Zhenye Huang

Position

Supervisor

10

Name

Delun Huang

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 100 Employees

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

13F-5, No.206, Sec.2, Nanking E. Rd., Taipei, Taiwan, R.O.C.

 

Production Information

 

Subject is engaged in manufacturing of petroleum resin, etc.

Subject has a factory in Taiwan for production.

Subject obtained the certification of ISO 9001 and OHSAS 18001.

 

Purchase Information

 

The registered activities of subject:

Business Code

Details

C801010

Basic chemical industry

C801020

Manufacturing of petrochemical materials

C801100

Synthetic resin and plastic manufacturing

C802990

Other chemical products manufacturing

F107200

Chemical raw materials wholesale

F107990 

Other chemical products wholesale

F207200

Chemical raw materials retailing

F207990

Other chemical products retailing

F401010

International trade

ZZ99999

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

 

The components and raw material for production are mostly purchased from both home and abroad.

 

Sales Information

 

Subject is engaged in sales of hydrocarbon resin, etc.

The major products are aromatic C9 hydrocarbon resin and hydrogenated C9 hydrocarbon resin, etc.

It is introduced that the products of subject are mainly applied for paints and varnishes, printing inks, pressure sensitive adhesives, hot-melt adhesives, solvent base adhesives, hot-melt pressure sensitive adhesives, rubber, tire, floor tile, etc.

Subject’s sales regions include domestic market, Southeast Asia, North America and Europe, etc. 

Subject’s major customers are manufacturers of painting, ink, adhesive, solvent and rubber, etc.

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase

Products

Raw materials

Payment Terms

T/T, Cash, etc.

 

Import

Products

Raw materials

Payment Terms

L/C, T/T, etc.

 

 

Sales

 

Domestic Markets

Product

Petroleum resin, etc.

Selling Terms

T/T, Cash, etc.

 

Export

Product

Petroleum resin, etc.

Selling Terms

L/C, T/T, etc.

 

 

Balance Sheet

 

Unit: NTD/000

 

2014-12-31

2013-12-31

Current assets

 

 

Cash and cash equivalents

376,869

101,264

Notes receivable, net

25,368

31,108

Accounts receivable, net

350,913

376,135

Accounts receivable-related party, net

8,469

10,929

Other receivables, net

12,838

15,213

Other accounts receivable-related party, net

0

0

Inventories

699,452

815,577

Prepayments

2,721

4,456

Other current assets

409

826

Total current assets

1,477,039

1,355,508

Non-current assets

 

 

Property, plant and equipment

604,156

608,404

Intangible assets

334

388

Deferred tax assets

13,628

8,016

Other non-current assets

8,990

25,018

Total non-current assets

627,108

641,826

Total assets

2,104,147

1,997,334

Current liabilities

 

 

Short-term borrowings

713,000

587,000

Notes payable

0

0

Accounts payable

119,861

140,625

Accounts payable-related party

68,732

58,886

Other account payable

67,688

58,577

Other account payable-related party

158

158

Tax Liabilities

17,946

6,264

Liability reserve-current

2,988

2,661

Other current liability

76,874

102,340

Total current liability

1,067,247

956,511

Non-current liability

 

 

Long-term borrowings

45,417

111,750

Deferred tax liability

3,883

1,515

Other non-current liability

17,758

17,030

Total non-current liability

67,058

130,295

Total liability

1,134,305

1,086,806

Capital stock

 

 

Ordinary share

766,143

766,143

Total capital stock

766,143

766,143

Capital surplus

 

 

Total capital surplus

0

0

Reserved surplus

 

 

Legal reserve

62,058

57,323

Unappropriated retained earnings (accumulated deficit)

141,641

87,062

Total retained earnings

203,699

144,385

Other equity

 

 

Total other equity

0

0

Total equity

969,842

910,528

Number of share capital awaiting retirement (Unit: Share)

0

0

Equivalent issue shares of advance receipts for ordinary share (Unit: Share)

0

0

Number of shares in entity held by entity and by its subsidiaries

0

0

 

 

Profit and Loss Account

 

Unit: NTD/000

 

2014

2013

Sales revenue

3,179,900

3,013,442

Total operating revenue

3,179,900

3,013,442

Sales costs

2,917,252

2,804,835

Total operating expenses

2,917,252

2,804,835

Gross profit (loss) from operations

262,648

208,607

Gross profit (loss) from operations, net

262,648

208,607

Operating expenses

 

 

Selling expenses

136,674

126,834

Administrative expenses

21,845

17,704

Research and development expenses

4,928

3,899

Total operating expenses

163,447

148,437

Operating income (loss)

99,201

60,170

Non-operating income and expenses

 

 

Other income

212

1,115

Other gains and losses, net

31,136

8,994

Finance costs, net 

10,522

12,468

Total non-operating income and expenses

20,826

-2,359

Profit (loss) before tax, net

120,027

57,811

Total tax expense (income)

21,650

10,460

Profit (loss) of continuing operations net

98,377

47,351

Profit (loss) net

98,377

47,351

Other net comprehensive income profit (loss)

 

 

Determine the welfare program actuarial profit (loss)

-911

15,887

Tax income related to other comprehensive profit or loss

-155

2,701

Other comprehensive profit(loss), net

-756

13,186

Total comprehensive profit(loss)

97,621

60,537

Basic earnings per share

1.28

0.62

Diluted earnings per share

1.28

0.62

 

 

Cash Flows

 

Unit: NTD/000

 

2014

2013

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

 

 

Profit (loss) from continuing operations before tax

120,027

57,811

Profit (loss) before tax

120,027

57,811

Depreciation expense

47,186

45,502

Amortization expense

263

547

Interest expense

10,522

12,468

Interest income

-212

-154

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

0

0

Total income or loss non-effect cash flow

57,759

58,363

Decrease (increase) in notes receivable

5,740

-3,916

Decrease (increase) in accounts receivable

25,223

-83,738

Decrease (increase) in accounts receivable-related party

2,460

4,868

Decrease (increase) in other accounts receivable

2,375

998

Decrease (increase) in inventory

116,125

212,389

Decrease (increase) in prepaid expenses

156

-187

Decrease (increase) in prepayment

1,579

4,844

Decrease (increase) in other current liabilities

327

-324

Total net changes in operating assets

153,985

134,934

Decrease (increase) in notes payable

0

0

Decrease (increase) in accounts payable

-20,764

11,612

Decrease (increase) in accounts payable-related party

9,846

3,533

Decrease (increase) in other accounts payable

6,357

-4,029

Decrease (increase) in accounts payable-related party

0

32

Decrease (increase) in liability reserve

327

-256

Decrease (increase) in prepayment

4,641

2,693

Decrease (increase) in other current liabilities

-107

-84

Increase (decrease) in accrued pension liabilities

-183

771

Decrease (increase) in other operating liabilities

0

0

Total net changes in operating liabilities

117

14,272

Total changes in operating assets and liabilities

154,102

149,206

Total adjustments

211,861

207,569

Net cash flows from (used in) operating activities

331,888

265,380

Interest received

212

154

Interest paid

-10,472

-12,672

Income taxes refund (paid)

-13,056

-8,495

Cash inflow (outflow) generated from operations

308,572

244,367

Cash flow from investing activities

 

 

Acquisition of property, plant and equipment

0

-7,172

Disposal of property, plant and equipment

0

4

Increase in refundable deposit

-1,270

-1,042

Decrease in refundable deposit

1,360

1,310

Disposal of intangible assets

-209

-452

Increase in other financial assets

0

0

Increase in prepayments for equipment

-24,208

-64,878

Decrease in prepayments for equipment

0

0

Cash inflow (outflow) from (used in) investing activities, net

-24,327

-72,230

Cash flow from (used in) investing activities

 

 

Increase in short-term borrowings

276,000

257,000

Decrease in short-term borrowings

-150,000

0

Proceeds from long-term debt

0

100,000

Repayments of long-term debt

-96,333

-444,667

Decrease in deposits received

0

0

Cash dividends paid-up

-38,307

-38,307

Other financing activities

0

0

Cash inflow (outflow) generated from financing activities

-8,640

-125,974

Net increase (decrease) in cash and cash equivalents

275,605

46,163

Cash and cash equivalents at beginning of period

101,264

55,101

Cash and cash equivalents at end of period

376,869

101,264

Cash and cash equivalents reported in the statement of financial position

376,869

101,264

 

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

Ms. Chen

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.78

UK Pound

1

Rs.99.54

Euro

1

Rs.73.08

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

 

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.