3decades

MIRA INFORM REPORT

Report No. :	486505
Report Date :	15.01.2018

IDENTIFICATION DETAILS

Name :	CGPC POLYMER CORPORATION

Registered Office :	12F, No. 37, Kee Hu Rd., Nei Hu Dist., Taipei, Taiwan, R. O. C.

Country :	Taiwan

Financials (as on) :	31.12.2016

Date of Incorporation :	19.05.2009

Com. Reg. No.:	24347565

Legal Form :	Private Limited Company

Line of Business :	Production and Sale of PVC (Poly Vinyl Chlorde) Powder.

No. of Employees :	956 (China General Plastics Corp Parent Co. Included)

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

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

Taiwan

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
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 up in the air. 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.

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 United States, 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 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 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. Domestic economic issues loomed large in public debate ahead of the January 2016 presidential and legislative elections, including concerns about stagnant wages, high housing prices, youth unemployment, job security, and financial security in retirement.

Source : CIA

Verification Remark：

The given address refers to that of subject company’s：

Lin Yuan Plant

Other：Kaohsiung branch

ESSENTIAL CORPORATE INFORMATION

Registration No.：

24347565

English Company Name：

CGPC POLYMER CORPORATION

Registered Address in English：

12F, No. 37, Kee Hu Rd., Nei Hu Dist., Taipei, Taiwan, R. O. C.

Address of Operating Office：

Same as above

URL：

http://www.usig.com.tw/dirAbout/frmAbout98.aspx

E-mail：

cgpcstkqa@cgpc.com.tw

TEL：

+886-2-87516888

FAX：

+886-2-26599519

Established on：

May 19, 2009

No. of Employees：

956 (China General Plastics Corp Parent Co. Included)

Business Type：

Manufacturing Service Banking/Financing

NACE Code：

2014

Business Size：

Super Large Large Medium Medium-Small Small

Legal Form：

Private Limited Company

FACTORY AND BRANCH

Item		Address	Registration No.	Tel.	Fax.
	Kaohsiung Branch/ Lin Yuan Plant	No. 6 & 8, Petrochemical 2^nd Rd., Lin Yuan Dist., Kaohisung City	64006350	NIL	NIL

AFFILIATE

Registration No.		Company Name		Registered Person-in-Charge	Relationship to Subject Company
Registration No.			English	Registered Person-in-Charge	Relationship to Subject Company
	11686106		CHINA GENERAL PLASTICS CORP.	Wu, Yi-Kui	Affiliate	Subsidiary
Information provided by Mr. Chan (deputy manager of finance dept. (ext. 3758))

● HISTORY

Change in Company Name/Form
	Subject company has kept its present name and form since its establishment.

CAPITAL INCREASE/DECREASE

	Registered capital read NT$ 800,000,000 (paid-up fully) at the time of establishment.
Subsequent Capital Increase/Decrease
	YES
	Registered capital read NT$	800,000,000	in	12/	2014	paid up to NT$	500,000,000
	Registered capital read NT$	800,000,000	in	12/	2015	paid up to NT$	276,000,000
	Registered capital read NT$	800,000,000	in	07/	2016	paid up to NT$	321,317,550

● PLAN FOR CAPITAL INCREASE/DECREASE & STOCK LISTING – NIL

● ACTUAL BUSINESS ITEMS/ ACTIVITIES

1.	Production and sale of PVC (Poly Vinyl Chlorde) powder.

MAIN SHAREHOLDERS

Name		Position	Stake (NT$)	Ratio (%)	Note
Representative of CHINA GENERAL PLASTICS CORP.
	Wu, Yi-Kui	Chairman	321,317,550	100.00
	Wang, Ping-Yi	Director
	Lin, Han-Fu	Director
	Huang, Ya-Yi	Supervisor
Total No. of Shareholders：1
Source：Information obtained from Taipei City Government

CORPORATE SHAREHOLDER OVERVIEW

Registration No.		Company Name		Address
Registration No.			English	Address
	11686106		CHINA GENERAL PLASTICS CORP.	12F, No. 37, Kee Hu Rd., Nei Hu Dist., Taipei

● RELATIONSHIP BETWEEN MAIN SHAREHOLDERS

Spouse	Parent/Children	Siblings	Relatives/In-Laws	Schoolmates
Associates	Friends	Members in USI Group		Institutional Investors
Others (specified as follows)：Sole Proprietorship

MANAGEMENT（CHAIRMAN AND GENERAL MANAGER）

Chairman

Name (Chinese)：

吳亦圭

English：

QUINTIN WU

Sex：

Male

ID No.：

A103105334

Date of Birth：

December 02, 1950

Place of Birth：

Taipei City, Taiwan

Education：

Graduate of China College of Marine Technology and Commerce, majoring in Sailing

Graduate of a US university

Experience：

Chairman of the USI Group

Chairman of VANGUARD INTERNATIONAL SEMICONDUCTOR CORPORATION

Chairman of G-BOND OPTOELECTRONICS, INC.

Vice Chairman of USI CORPORATION

Supervisor of HARBINGER VENTURES CO., LTD.

Director of QUANTA DISPLAY INC.

Director Asia Petrochemical United Co., Ltd. (亞洲石化聯合(股))

Chairman of the China Youth Career Development Association

Chairman of FINE APPLIANCE CORP.

Director of HAN TECH VENTURE CAPITAL CORPORATION

Standing Director of CTCI CORPORATION

Supervisor of GETAC TECHNOLOGY CORPORATION,

Director of NATIONAL DATACOMM CORPORATION

Director of Chang Hsuan Construction Co., Ltd.

Chairman of INOMA CORPORATION

Years in Subject Company’s Line of Business：

More than 20 years

Other Business Investments

English Company Name

Position

CHINA GENERAL PLASTICS CORP.

Chairman

TAITA CHEMICAL CO., LTD.

Chairman

ASIA POLYMER CORPORATION

Chairman

USI CORPORATION

Chairman

CHONG LOONG TRADING CO., LTD.

Chairman

ACME ELECTRONICS CORPORATION

Chairman

THINTEC MATERIALS CORPORATION

Chairman

USI INVESTMENT CO., LTD.

Chairman

Asia Polymer Investment Co., Ltd.

Chairman

TAIWAN UNITED VENTURE CAPITAL CORP.

Chairman

TAIWAN UNITED VENTURE MANAGEMENT CORPORATION

Chairman

SWANSON TECHNOLOGIES CORPORATION

Chairman

SWANSON PLASTICS CORPORATION

Chairman

USI OPTRONICS CORPORATION

Chairman

INOMA CORPORATION

Director

Lien Ju International Investment Co., Ltd.

Chairman cum GM

USI MANAGEMENT CONSULTING CORPORATION

Chairman cum GM

Yu Tao Investment Co., Ltd.

Person-in-charge

CTCI CORPORATION

Director

TAIWAN VCM CORPORATION

Director

CHINA GENERAL TERMINAL & DISTRIBUTION CORPORATION

Director

Mao Chang Investment Co., Ltd.

Director

MAW CHONG ENERGY CO., LTD.

Director

Ta Sheng 1B Venture Capital Co., Ltd.

Director

Ta Sheng Venture Capital Co., Ltd.

Director

General Manager（President）

Name (Chinese)：

林漢福

English：

Lin, Han-Fu

Sex：

Male

ID No.：

Declined

Date of Birth：

1946

Place of Birth：

Taiwan

Education：

Bachelor in chemical engineering from Chung Yuan Christian University

Experience：

Positions at FORMOSA PLASTICS CORPORATION:

Deputy manager at plastic division, manager at Polypropylene (PP) division and Consultant

Chairman of 9^th board of directors of PLASTICS INDUSTRY DEVELOPMENT CENTER

Years in Subject Company’s Line of Business：

More than 20 years

Other Business Investments

English Company Name

Position

CHINA GENERAL PLASTICS CORP.

Director-cum-GM

TAIWAN VCM CORPORATION

Chairman-cum-GM

CHINA GENERAL TERMINAL & DISTRIBUTION CORPORATION

Director

Information provided by Mr. Chan (deputy manager of finance dept. (ext. 3758))

PREMISES

	Registered cum Operating Office：
	The rented premise reports a total floor space of 482.54 square meters and is registered under the name of USI CORPORATION
	Lin Yuan Plant：
	The self-owned premise reports a total floor space of 13,130.09 square meters and is registered under the name of CGPC POLYMER CORPORATION. The premise has been mortgaged to Land Bank of Taiwan at a maximum mortgage value of NT$ 1,704,000,000 for a term of 27 years starting on January 07, 2013.
Note：Information related to ownership status of subject premises is obtained from computerized official issued by local land administration authority.

MAJOR PRODUCTION FACILITY

Equipment		Quantity
	Related production facilities	Adequate

MORTGAGE RECORD OF MOVEABLE PROPERTIES

YES (summarized as follows)：

A survey on related banking records find 1 records related to subject and LAND BANK OF TAIWAN.

Source：Information obtained from official records kept by relevant government authorities.

DOMESTIC SUPPLIERS

Raw Material / Product

Supplier

Payment Term

VCM monomer (Vinyl Chloride Monomer), Chemicals, Starting agent, Dispersant

TAIWAN VCM CORPORATION

BASF TAIWAN LTD.

T/T on 30-60 Days term (100%)

OVERSEAS SUPPLIERS

Raw Material/ Products		Country/Region
	VCM monomer, Chemicals, Machinery	Japan, Middle East, China
	Payment Terms
	T/T (100%)

● BRAND NAMES OF PRODUCTS LICENSED FOR SALE BY SUBJECT COMPANY

Subject company declines the brand name carried.

DOMESTIC CUSTOMERS

Raw Material / Product

Customer

Payment Term

PVC powder

CHINA GENERAL PLASTICS CORP. Related chemical engineering companies

15 Day Post-Dated Check on monthly closed basis (30%)

T/T on 15 Days term (70%)

● MAIN DOMESTIC SALES CHANNELS – NIL

OVERSEA CUSTOMERS

Raw Material/ Products		Country/Region
	PVC powder	China, Malaysia, Other SE Asian countries, India, Bangladesh, Brazil, South Africa, Australia
	Payment Terms
	L/C (50%) T/T (50%)

● OVERSEA PRODUCTION BASES / SALES OUTLETS

Subject company claims to have no oversea production stations.

● COMPLIANCE WITH LOCAL / INTERNATIONAL STANDARDS

ISO-9001 certified

BANKERS

	Land Bank of Taiwan, Sung Shan Branch	Account No.：Declined
	Active since：Declined	Current Status：Normal Dishonored
	Chang Hua Commercial Bank, Nankang Scientific Park Branch	Account No.：Declined
	Active since：Declined	Current Status：Normal Dishonored
Information provided by Mr. Chan (deputy manager of finance dept. (ext. 3758))

PAYMENT RECORD

As of July 21, 2017, relevant records obtained from Clearing House indicate：
	No dishonored banking record filed against subject company during the past three years.
	No dishonored banking record filed against subject company’s registered person-in-charge during the past three year.

● STATUS AS QUALIFIED GOVERNMENT SUPPLIER

Subject company’s status as a qualified government supplier has not been suspended during the past one year.

● LITIGATION/COURT RECORD

Subject company has been involved in neither litigation nor legal proceeding during the past two years.

● INTELLECTUAL PROPERTY（PATENT and TRADEMARK）

	No patent and trademark is found registered under the name of subject company.
Source：Intellectual Property Office, Ministry of Economic Affairs, R.O.C.

OPERATING INCOME 2014~2016（NT$：1,000）

	2016	％	2015	％	2014	％
Domestic Sales	511,290	10.00	451,888	10.00	435,086	10.00
Export Value	4,601,606	90.00	4,066,988	90.00	3,915,774	90.00
Total	5,112,896	100	4,518,876	100	4,350,860	100
Growth (%)	13.15	%	3.86	%	－－	%

TRADE RECORD（USD）

YEAR	TOTAL IMPORT	TOTAL EXPORT
2016	1,000,000-2,000,000	Over 10,000,000
2015	2,150,938	126,520,000
2014	1,841,810	121,659,420

● 01/01~12/31, 2016：BREAKDOWN OF SALES BY PRODUCTS（NT$：1,000）

PRODUCT		SALES	％
	PVC powder	5,112,896	100.00

● SALES PERFORMANCE 01~06, 2017（NT$：1,000）

－－

FINANCIAL PROFILE（NT$：1,000）

As of	03/31/2017	12/31/2016	12/31/2015	12/31/2014
Paid-in Capital	－－	321,318	276,000	500,000
Net Worth	－－	596,870	326,353	275,584
Total Liabilities	－－	1,934,706	2,515,681	2,447,791
Assets	－－	2,531,576	2,842,034	2,723,375
Business Performance	01~03, 2017	01~12, 2016	01~12, 2015	01~12, 2014
Net Sales	－－	5,112,896	4,518,876	4,350,860
Operating Income	－－	335,354	62,194	-187,051
Net Income	－－	270,517	50,769	-189,577
Information based on CPA audited financial statements of 2014 to 2016 provided by CHINA GENERAL PLASTICS CORP.

BANK LINE OF CREDIT

YES, (summarized as follows)：

Subject’s total credit limit is hundreds of million, and the company has only withdrawn few of them.

CORPORATE RANKING 2014~2016

Category	2016	2015	2014
By Import/Export Performance	－－	409	456
The Corporate ranking of subject company is based on the Directory of Leading Importers & Exporters in Taiwan published by Ministry of Economic Affairs

SUMMARY

Subject company’s attitude toward ACIE credit reporting： Reasonably cooperative
	Subject is specialized in production and sale of PVC powder. Product items focusing on H-61 and H-66 which can be applied in several end market fields such as flexible PVC sheeting, sponge leather, rigid film and sheet, rigid tube, tube & pipe, construction materials, plastic fabric, wire & cable and plug, etc.
	Approximately 95.00% of the needed raw materials are procured from domestic suppliers which include TAIWAN VCM CORPORATION and BASF TAIWAN LTD. TAIWAN VCM CORPORATION is the largest supplier which provides 85% of subject’s total supplies. Only few of the supplies are imported from Japan, Middle East and China.
	Subject relies mainly on export sale that accounts for approximately 90.00% of its total business revenues. Major export markets include China, Malaysia, other SE Asian countries, India, Bangladesh, Brazil, South Africa and Australia, etc. SE Asia is the largest oversea market which accounts for 30% to 40% of the total sales. The rest 10.00% products are sold to domestic customers which include CHINA GENERAL PLASTICS CORP. and related chemical engineering companies, etc. As we learned, CHINA GENERAL PLASTICS CORP. is the largest domestic customers
	The purpose for setup up subject company is to increase PVC production volumes and sales volumes to support group affiliate, TAIWAN VCM CORPORATION, to be able to maximize VCM production capacities. Currently, the annual production capacities of PVC powder are around 200,000 tons, hence, subject can make the most of the advantage of vertical integration of upper stream, mid stream and downstream provided by the group.

RESULT OF MEDIA SEARCH

No adverse news or reports related to subject company and its registered person-in-charge have been identified during the past two years.

OUR COMMENTS

Credit or business dealings with subject company are deemed acceptable while monitoring on a regular basis remains desirable.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.53
UK Pound	1	INR 86.05
Euro	1	INR 76.53
TWD	1	INR 2.15

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Report Prepared by :

KET

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