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MIRA INFORM REPORT
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Report No. : |
503158 |
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Report Date : |
17.04.2018 |
IDENTIFICATION DETAILS
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Name : |
TAIWAN PROSPERITY CHEMICAL CORPORATION |
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Registered Office : |
9/F, No. 113, Sec. 2, Chung-Shan N. Rd.,
Taipei 104, R.O.C. |
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Country : |
Taiwan |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
28.05.1991 |
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Com. Reg. No.: |
86120031 |
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Legal Form : |
Joint Stock Company |
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Line of Business : |
Manufacturing and sales of chemicals. |
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No. of Employees : |
About 178 Employees (As of 2017-5-12) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Taiwan |
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
TAIWAN - ECONOMIC OVERVIEW
Taiwan has a dynamic capitalist economy that is driven largely by industrial manufacturing, and especially exports of electronics, machinery, and petrochemicals. This heavy dependence on exports exposes the economy to fluctuations in global demand. Taiwan's diplomatic isolation, low birth rate, rapidly aging population, and increasing competition from China and other Asia Pacific markets are other major long-term challenges.
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 of that year, 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 uncertain. President TSAI since taking office in May 2016 has promoted greater economic integration with South and Southeast Asia through the New Southbound Policy initiative and has also expressed interest in Taiwan joining the Trans-Pacific Partnership as well as bilateral trade deals with partners such as the US. These overtures have likely played a role in increasing Taiwan’s total exports, which rose 11% during the first half of 2017, buoyed by strong demand for semiconductors.
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 with many economies, including China and the US, 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 and has also secured greater market access for its investors on 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 renminbi (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 opportunities for Taiwan’s economy but also pose challenges as political differences remain unresolved and China’s economic growth is slowing. President TSAI’s administration has made little progress on the domestic economic issues that loomed large when she was elected, including concerns about stagnant wages, high housing prices, youth unemployment, job security, and financial security in retirement. TSAI has made more progress on boosting trade with South and Southeast Asia, however, which may help insulate Taiwan’s economy from a fall in mainland demand should China’s growth slow in 2018.
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Source
: CIA |
Contact Points
Notes: The exact name and address are as above.
Company Identification Details
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Registered Name: |
Taiwan Prosperity Chemical Corporation |
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Registered Address: |
9/F, No. 113, Sec. 2, Chung-Shan N. Rd.,
Taipei 104, Taiwan, R.O.C. |
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Date of Foundation: |
1991-5-28 |
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Registration Number: |
86120031 |
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Registry: |
Department of Commerce, Ministry of Economic
Affairs, R.O.C. |
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Registered Capital: |
NTD 4,000,000,000
(USD 136,000,000) (As of 2018.4, 1 NTD = 0.034
USD) |
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Paid-up Capital: |
NTD 2,919,750,000 (USD 99,271,500) |
|
Legal Representatives: |
Anping Zhang |
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Legal Form: |
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Principal Activities: |
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Staff: |
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Listed at Stock Exchange: |
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Date of Last Annual Return: |
History
Subject was incorporated
on 1991-05-28 with registered number 86120031
as Joint Stock Company in Taiwan.
Subject was listed on Taiwan Stock Exchange on 2007-10-02.
Corporate Structure
Factory
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Name: |
Linyuan Factory |
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Address: |
No. 9, Gongye 3rd Rd., Linyuan Industrial Zone, Linyuan Township,
Kaohsiung County, Taiwan |
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Date of Foundation: |
1992-8-25 |
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Date of Registration: |
1995-10-16 |
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Factory Registration Number: |
99661829 |
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Factory Manager: |
Tianfu Zhao |
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Status: |
In Production |
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Date of Last Annual Return: |
2015-08-03 |
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Major Products: |
Petrochemical materials |
Note: It is introduced that subject has 6 plants on the above address
for manufacturing of cumene, acetone, bisphenol, etc.
Shareholder
Major Shareholder
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Name |
Subscription Shares |
|
Taiwan Cement Corporation |
145,987,998 |
Shareholder Information:
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Registered Name: |
Taiwan Cement Corporation |
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Registered Address: |
No. 113, Sec. 2, Chung Shan N. Rd., Taipei
City, Taiwan, R.O.C. |
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Date of Foundation: |
1950-12-29 |
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Registration Number: |
11913502 |
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Registry: |
Department of Commerce, Ministry of Economic Affairs, R.O.C. |
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Registered Capital: |
NTD 60,000,000,000 |
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Paid-up Capital: |
NTD 42,465,090,100 |
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Legal Representatives: |
Anping Zhang |
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Legal Form: |
Joint Stock Company |
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Listed at Stock Exchange: |
Yes; Stock Code: 1101 |
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Date of Last Annual Return: |
2018-1-31 |
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Telephone Number: |
+886-2-2531-6533 |
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Fax Number: |
+886-2-2531-6529 |
Management Information
Core Management
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1 |
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Name |
Anping Zhang |
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Position |
Board Chairman |
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2 |
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Name |
Gongyi Gu |
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Position |
Director |
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3 |
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Name |
Jiye Chen |
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Position |
Director |
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4 |
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Name |
Fulong Chen |
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Position |
Director |
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5 |
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Name |
Renhe Jiao |
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Position |
Independent Director |
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6 |
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Name |
Zhiren Sheng |
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Position |
Independent Director |
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7 |
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Name |
Zinan Jia |
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Position |
Independent Director |
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8 |
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Name |
Tianfu Zhao |
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Position |
Manager |
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Dare of Appointment |
2012-4-2 |
Personnel Structure
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Total Employees |
About 178 Employees (As of 2017-5-12) |
Operation Information
Offices & Factories
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Headquarters |
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Add |
9/F, No.113, Sec. 2, Chung-Shan N. Rd., Taipei 104, Taiwan, R.O.C. |
Production Information
Subject is engaged in manufacturing of chemicals, etc.
It is introduced that subject has 6 factories in Linyuan Township,
Kaohsiung County, Taiwan for production (Total area is about 13 hectare).
Subject obtained the certifications of ISO 9001：2015, ISO 14001：2015.
Purchase Information
The registered activities of subject:
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Business Code |
Details |
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C801020 |
Manufacture of petrochemical materials |
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F107200 |
Wholesales of chemical materials |
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F107990 |
Wholesales of other chemical products |
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F207200 |
Retails of chemical materials |
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F207990 |
Retails of other chemical products |
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ZZ99999 |
Besides licensed business, all other business items those are not
banned or restricted. |
The raw materials for production are purchased both at home and abroad.
Subject is engaged in sale of chemicals,
etc.
The major products are cumene, phenol, acetone,
bisphenol, cyclohexanone and malic anhydride, alpha-methylstyrene,
etc.
It is introduced that subject’s products are applied to the industries
of chemical engineering, plastics, construction, machinery, automobile, etc.
Subject’s sales regions are domestic market, Southeast Asia, Middle
East, America, etc.
It is introduced that subject’s customers include BASF Chile S.A., China
Petroleum & Chemical, Kaohsiung Monomer Company Ltd, Micro Inks Ltd., ICC
Chemical Corporation and Chimei Asahi Corporation, etc.
Import and export right:
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Import right |
Yes |
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Export right |
Yes |
Settlements
Purchase
Domestic Purchase
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Products |
Raw materials, etc. |
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Payment Terms |
T/T, Cash, etc. |
Import
|
Products |
Raw materials, etc. |
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Payment Terms |
L/C, T/T, etc. |
Domestic Markets
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Product |
Chemicals, etc. |
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Selling Terms |
T/T, Cash, etc. |
Export
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Product |
Chemicals, etc. |
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Selling Terms |
L/C, T/T, etc. |
Balance Sheet
Unit: NTD/000
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2017-12-31 |
2016-12-31 |
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Assets |
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Current assets |
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Cash and cash equivalents |
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Total cash and cash equivalents |
952,693 |
355,734 |
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Current available-for-sale financial assets |
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Current available-for-sale financial assets, net |
1,019,362 |
832,703 |
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Accounts receivable, net |
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Accounts receivable, net |
1,173,064 |
1,300,559 |
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Other receivables |
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Other receivables, net |
35,153 |
27,475 |
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Inventories |
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Total inventories |
761,655 |
618,429 |
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Prepayments |
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Total prepayments |
71,576 |
79,146 |
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Other current assets |
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Total other current assets |
1,614 |
2,651 |
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Total current assets |
4,015,117 |
3,216,697 |
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Non-current assets |
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Property, plant and equipment |
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Total property, plant and equipment |
6,100,026 |
7,076,593 |
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Deferred tax assets |
276,057 |
276,745 |
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Other non-current assets |
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Other non-current assets, others |
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Total other non-current assets, others |
420,023 |
651,989 |
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Total other non-current assets |
420,023 |
651,989 |
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Total non-current assets |
6,796,106 |
8,005,327 |
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Total assets |
10,811,223 |
11,222,024 |
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Liabilities and equity |
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Liabilities |
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Current liabilities |
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Short-term borrowings |
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Total short-term borrowings |
2,492,317 |
1,690,911 |
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Short-term notes and bills payable |
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Total short-term notes and bills payable |
399,098 |
399,674 |
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Accounts payable |
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Total accounts payable |
990,914 |
828,232 |
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Other payables |
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Total other payables |
436,355 |
612,159 |
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Other current liabilities |
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Long-term liabilities, current portion |
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Total long-term liabilities, current portion |
1,745,000 |
570,000 |
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Other current liabilities, others |
8,525 |
17,037 |
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Total other current liabilities |
1,753,525 |
587,037 |
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Total current liabilities |
6,072,209 |
4,118,013 |
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Non-current liabilities |
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Long-term borrowings |
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Total long-term borrowings |
0 |
1,745,000 |
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Other non-current liabilities |
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Long-term notes and accounts payable to related parties |
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Long-term lease obligations payable to related parties |
1,397,901 |
1,858,437 |
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Total long-term notes and accounts payable to related parties |
1,397,901 |
1,858,437 |
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Other non-current liabilities, others |
123,321 |
94,428 |
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Total other non-current liabilities |
1,521,222 |
1,952,865 |
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Total non-current liabilities |
1,521,222 |
3,697,865 |
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Total liabilities |
7,593,431 |
7,815,878 |
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Equity |
|
|
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Share capital |
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|
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Ordinary share |
2,919,750 |
2,919,750 |
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Total capital stock |
2,919,750 |
2,919,750 |
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Capital surplus |
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Total capital surplus |
690,000 |
690,000 |
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Retained earnings |
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Legal reserve |
192,858 |
192,858 |
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Unappropriated retained earnings (accumulated deficit) |
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Total unappropriated retained earnings (accumulated deficit) |
-791,441 |
-416,428 |
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Total retained earnings |
-598,583 |
-223,570 |
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Other equity interest |
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|
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Unrealized gains (losses) on available-for-sale financial assets |
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Total unrealized gains (losses) on available-for-sale financial assets |
206,625 |
19,966 |
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Total other equity interest |
206,625 |
19,966 |
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Total equity |
3,217,792 |
3,406,146 |
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Total liabilities and equity |
10,811,223 |
11,222,024 |
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Equivalent issue shares of advance receipts for ordinary share |
0 |
0 |
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Number of shares in entity held by entity and by its subsidiaries |
0 |
0 |
Profit and Loss Account
Unit: NTD/000
Cash Flows
Unit: NTD/000
|
|
2017 |
2016 |
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Cash flows from (used in) operating activities, indirect method |
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Profit (loss) from continuing operations before tax |
-348,665 |
-406,170 |
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Profit (loss) before tax |
-348,665 |
-406,170 |
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Adjustments |
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Adjustments to reconcile profit (loss) |
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Depreciation expense |
760,931 |
665,216 |
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Interest expense |
128,007 |
187,342 |
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Interest income |
-3,853 |
-1,487 |
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Dividend income |
-37,059 |
-31,746 |
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Impairment loss on non-financial assets |
-19,484 |
3,541 |
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Unrealized foreign exchange loss (gain) |
-14,421 |
10,260 |
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Total adjustments to reconcile profit (loss) |
814,121 |
833,126 |
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Changes in operating assets and liabilities |
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Changes in operating assets |
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|
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Decrease (increase) in accounts receivable |
115,733 |
-333,167 |
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Decrease (increase) in other receivable |
-7,765 |
14,691 |
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Decrease (increase) in inventories |
-123,742 |
290,240 |
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Decrease (increase) in prepayments |
7,570 |
32,379 |
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Decrease (increase) in other current assets |
1,037 |
240 |
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Total changes in operating assets |
-7,167 |
4,383 |
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Changes in operating liabilities |
|
|
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Increase (decrease) in accounts payable |
174,696 |
209,848 |
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Increase (decrease) in other payable |
-77,605 |
59,105 |
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Increase (decrease) in other current liabilities |
-8,512 |
1,770 |
|
Increase (decrease) in net defined benefit liability |
84 |
-32,604 |
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Total changes in operating liabilities |
88,663 |
238,119 |
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Total changes in operating assets and liabilities |
81,496 |
242,502 |
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Total adjustments |
895,617 |
1,075,628 |
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Cash inflow (outflow) generated from operations |
546,952 |
669,458 |
|
Interest received |
3,760 |
1,431 |
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Interest paid |
-64,096 |
-62,557 |
|
Income taxes refund (paid) |
196 |
6,578 |
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Net cash flows from (used in) operating activities |
486,812 |
614,910 |
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Cash flows from (used in) investing activities |
|
|
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Acquisition of property, plant and equipment |
-43,199 |
-112,261 |
|
Dividends received |
37,059 |
31,746 |
|
Other investing activities |
120,766 |
-36,111 |
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Net cash flows from (used in) investing activities |
114,626 |
-116,626 |
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Cash flows from (used in) financing activities |
|
|
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Increase in short-term loans |
13,946,709 |
10,830,581 |
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Decrease in short-term loans |
-13,131,309 |
-10,437,712 |
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Increase in short-term notes and bills payable |
1,894,988 |
1,695,896 |
|
Decrease in short-term notes and bills payable |
-1,900,000 |
-1,900,000 |
|
Repayments of long-term debt |
-570,000 |
-285,000 |
|
Decrease in lease payable |
-248,000 |
-360,000 |
|
Increase in other non-current liabilities |
3,133 |
-2,415 |
|
Net cash flows from (used in) financing activities |
-4,479 |
-458,650 |
|
Net increase (decrease) in cash and cash equivalents |
596,959 |
39,634 |
|
Cash and cash equivalents at beginning of period |
355,734 |
316,100 |
|
Cash and cash equivalents at end of period |
952,693 |
355,734 |
|
Cash and cash equivalents reported in the statement of financial
position |
952,693 |
355,734 |
Note: 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
|
Department |
Sales Department |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 65.45 |
|
|
1 |
INR 93.28 |
|
Euro |
1 |
INR 80.74 |
|
TWD |
1 |
INR 2.24 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.