MIRA INFORM REPORT

Report No. :	498439
Report Date :	22.03.2018

IDENTIFICATION DETAILS

Name :	ASIA POLYMER CORPORATION
Registered Office :	No.3, Industrial 1st Rd., Linyuan Dist., Kaohsiung
Country :	Taiwan
Financials (as on) :	30.09.2017
Date of Incorporation :	25.01.1977
Com. Reg. No.:	20747385
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and Sale of Chemical Material, etc.
No. of Employees :	About 230

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Status :	Good
Payment Behaviour :	Regular
Litigation :	--

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 (30.09.2017)	Current Rating (31.12.2017)
Taiwan	A1	A1

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 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.

Source : CIA

Contact Points

Company Name:	ASIA POLYMER CORPORATION
Supplied Name:	ASIA POLYMER CORPORATION
Trading Address:	No.3, Industrial 1st Rd., Linyuan Dist., Kaohsiung , Taiwan
Supplied Address:	KAOHSIUNG BRANCH NO. 3, INDUSTRIAL 1ST ROAD LINYUAN DIST, KAOHSIUNG TAIWAN ROC
Telephone Number:	+886-7-641-2601

Note: The exact name and address are as above.

Company Identification Details

Registered Name:	Asia Polymer Corporation
Registered Address:	No.3, Industrial 1st Rd., Linyuan Dist., Kaohsiung , Taiwan
Date of Foundation:	1977-01-25
Registration Number:	20747385
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 5,696,769,350 (USD 187,993,389) (As of 2018.3, 1 NTD = 0.033 USD)
Paid-up Capital:	NTD 5,181,147,150 (USD 187,993,389)
Legal Representatives:	Yigui Wu
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sale of chemical material, etc.
Staff:	About 230 Employees
Listed at Stock Exchange:	Yes, Stock Code: 1308
Date of Last Annual Return:	2017-08-30

History

Subject was incorporated on 1977-01-25 with registered number 20747385 as Joint Stock Company in Taiwan.

Subject listed on Taiwan Stock Exchange on 1986-06-20.

Corporate Structure

Factory

Name:	Linyuan Plant
Address:	No.3, Industrial 1st Rd., Linyuan Dist., Kaohsiung, Taiwan
Date of Foundation:	1979-05-11
Date of Registration:	1990-12-31
Factory Registration Number:	99662178
Factory Manager:	Ronghong Chen
Status:	In Production
Date of Last Annual Return:	2017-05-26
Major Products:	184 Synthetic resins, plastics and rubber

Branch

Name	Asia Polymer Corporation Kaohsiung Branch
Address:	No.3, Industrial 1st Rd., Linyuan Dist., Kaohsiung, Taiwan
Registration Number	54388514
Date of Registration	2014-08-22
Status	Live Company
Manager Name	Guohong Li
Date of Last Annual Return	--

Office

Address:	12F, No.37, JiHu Road, NeiHu Dist., Taipei City 11492, Taiwan (R.O.C.)
Tel:	+-7-641-2601-3700

Major Related Companies

USI Corporation (USI)

USI Management Consulting Corporation (UM)

China General Plastics Corporation (CGPC)

CGPC Polymer Co., Ltd. (CGPCP)

Swanson Plastics Corporation (SPC)

Taita Chemical Company (TTC)

Taiwan VCM Corporation (TVCM)

INOMA Corporation (INOMA)

Acme Electronics Corporation (ACME)

China General Terminal & Distribution Company (CGTD)

USI Trading (Shanghai) Co., Ltd.

Shareholders

Major Shareholders

Name	Subscription Shares
Tai Lian International Investment Co., Ltd. (literal translation)	19,563,353
Lian Ju International Investment Co., Ltd. (literal translation)
186,955,874

Shareholder Information:

1
Registered Name:	Tai Lian International Investment Co., Ltd. (Literal translation)
Registered Address:	10/F. No. 75, Sec. 3, Mingsheng East Rd., Zhongshan Dist., Taipei, Taiwan
Date of Foundation:	1996-10-21
Registration Number:	97168335
Registered Capital:	NTD 735,000,000
Paid-up Capital:	NTD 735,000,000
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Legal Representatives:	Yishao Ke
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2017-06-29
2
Registered Name:	Lian Ju International Investment Co., Ltd. (Literal Translation)
Registered Address:	12/F., No. 37, Jihu Rd., Neihu Dist., Taipei City, Taiwan
Date of Foundation:	1996-10-18
Registration Number:	97168102
Registered Capital:	NTD 4,627,580,000
Paid-up Capital:	NTD 4,627,580,000
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Legal Representatives:	Yigui Wu
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2017-08-07

Management Information

Core Management

Directors

1
Name		Yigui Wu
Position		Board Chairman
2
Name	Fengqiang Miao
Position		Director
3
Name	Guangzhe Huang
Position		Director
4
Name	Guohong Li
Position		Director & Manager
Date of Manager Appointment		2007-05-02
6
Name	Hantai Liu
Position		Director
7
Name	Daxiong Chen
Position		Independent Director
8
Name	Shanghong Shen
Position		Independent Director
9
Name	Dunqian Zheng
Position		Independent Director
10
Name	Mingzong Wu
Position		Manager
Date of Appointment:		2016-03-11

Personnel Structure

Total Employees

About 200 employees

Operation Information

	Headquarters
Add	12F., No. 37, Jihu Rd., Neihu District, Taipei City 114, Taiwan (R.O.C.)

Production Information

Subject is engaged in manufacturing of chemical materials, etc.

Subject has a factory in Kaohsiung, Taiwan for production.

Subject obtained the certifications of ISO14001 and OHSAS18001.

Purchase Information

The registered activities of subject:

1	Manufacturing, processing and sale of low- density polyethylene
2	Manufacturing, processing and sale of medium density polyethylene
3	Sale of high-density polyethylene
4	Sale of linear low density polyethylene
5	Manufacturing and sale of Ethylene vinyl acetate copolymerization resin
6	Manufacturing and sale of decomposition of plastic raw materials
F113010	Wholesale of machinery
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

It is introduced that the raw materials for production are purchased both home and abroad, such as USA, etc.

Sales Information

Subject is engaged in sales of chemical materials, etc.

The major products of the subject are EVA resin (ethylene vinyl acetate resin) and LDPE resin (low-density polyethylene plastic resin), etc.

It is introduced that subject’s products are mainly applied in extrusion casting, sports goods, shoes, injection molding, wire and cable and frozen food packaging, etc.

Subject’s sales regions include Taiwan, Mainland China, USA and Europe, etc.

Subject’s major customers are manufacturers of plastic products, 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

Subject has little import.

Sales

Domestic Markets

Product	Chemical materials, etc.
Selling Terms	T/T, Cash, etc.

Export

Product	Chemical materials, etc.
Selling Terms	L/C, T/T, etc.

Balance Sheet

Unit: NTD/000

Consolidated	2016-12-31	2015-12-31
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	2,812,999	507,965
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	1,548,462	515,410
Current available-for-sale financial assets
Current available-for-sale financial assets, net	40,569	36,056
Notes receivable, net
Notes receivable, net	1,789	730
Accounts receivable, net
Accounts receivable, net	727,801	215,815
Accounts receivable due from related parties, net
Accounts receivable due from related parties, net	190,532	240,734
Other receivables
Other receivables, net	2,345	2,492
Other receivables due from related parties
Other receivables due from related parties, net	59,070	53,816
Inventories
Inventories, manufacturing business
Inventories, manufacturing business, net	673,642	794,231
Total inventories	673,642	794,231
Prepayments
Total prepayments	163,093	88,175
Other current assets
Total other current assets	110	110
Total current assets	6,220,412	2,455,534
Non-current assets
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets, net	2,392,067	1,919,856
Non-current financial assets at cost
Non-current financial assets at cost, net	282,866	291,740
Investments accounted for using equity method
Investments accounted for using equity method, net	1,395,172	1,372,035
Property, plant and equipment
Total property, plant and equipment	3,795,553	3,637,771
Investment property, net
Investment property, net	526,445	533,901
Intangible assets
Total intangible assets	1,272	3,057
Deferred tax assets	53,997	63,708
Other non-current assets
Total other non-current assets	2,245	2,168
Total non-current assets	8,449,617	7,824,236
Total assets	14,670,029	10,279,770
Liabilities and equity
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	950,000	210,000
Short-term notes and bills payable
Total short-term notes and bills payable	699,791	249,955
Current financial liabilities at fair value through profit or loss
Total current financial liabilities at fair value through profit or loss	1,732	0
Accounts payable
Total accounts payable	242,765	280,197
Accounts payable to related parties
Total accounts payable to related parties	71,847	34,387
Other payables
Total other payables	271,475	170,550
Other payables to related parties	118,301	83,585
Current tax liabilities	48,520	44,862
Current provisions
Total current provisions	5,899	5,899
Other current liabilities
Total other current liabilities	15,633	9,465
Total current liabilities	2,425,963	1,088,900
Non-current liabilities
Long-term borrowings
Total long-term borrowings	2,450,000	0
Deferred tax liabilities
Total deferred tax liabilities	43,307	44,370
Other non-current liabilities
Net defined benefit liability, non-current	239,127	299,876
Credit balance of investments accounted for using equity method	6,171	1,208
Other non-current liabilities, others	8,256	9,281
Total other non-current liabilities	253,554	310,365
Total non-current liabilities	2,746,861	354,735
Total liabilities	5,172,824	1,443,635
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	5,030,240	4,931,607
Total capital stock	5,030,240	4,931,607
Capital surplus
Total capital surplus	14,046	14,046
Retained earnings
Legal reserve	1,561,352	1,508,197
Special reserve	565,379	565,379
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	2,026,291	1,836,956
Total retained earnings	4,153,022	3,910,532
Other equity interest
Total other equity interest	299,897	-160,479
Total equity attributable to owners of parent	9,497,205	8,695,706
Equity attributable to former owner of business combination under common control	0	140,429
Non-controlling interests	0	0
Total equity	9,497,205	8,836,135
Total liabilities and equity	14,670,029	10,279,770

Unit: NTD/000

	2017-09-30
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	1,510,692
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	1,851,676
Current available-for-sale financial assets
Current available-for-sale financial assets, net	55,273
Notes receivable, net
Notes receivable, net	532
Accounts receivable, net
Accounts receivable, net	506,888
Accounts receivable due from related parties, net
Accounts receivable due from related parties, net	148,394
Other receivables
Other receivables, net	15,424
Other receivables due from related parties
Other receivables due from related parties, net	69,989
Inventories
Inventories, manufacturing business
Inventories, manufacturing business, net	606,268
Total inventories	606,268
Prepayments
Total prepayments	116,444
Other current assets
Total other current assets	242
Total current assets	4,881,822
Non-current assets
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets, net	2,338,492
Non-current financial assets at cost
Non-current financial assets at cost, net	257,671
Investments accounted for using equity method
Investments accounted for using equity method, net	2,840,150
Property, plant and equipment
Total property, plant and equipment	3,686,404
Investment property, net
Investment property, net	516,844
Intangible assets
Total intangible assets	557
Deferred tax assets	53,023
Other non-current assets
Total other non-current assets	2,186
Total non-current assets	9,695,327
Total assets	14,577,149
Liabilities and equity
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	500,000
Short-term notes and bills payable
Total short-term notes and bills payable	699,743
Current financial liabilities at fair value through profit or loss
Total current financial liabilities at fair value through profit or loss	420
Accounts payable
Total accounts payable	241,120
Accounts payable to related parties
Total accounts payable to related parties	33,009
Other payables
Total other payables	168,384
Other payables to related parties	105,699
Current tax liabilities	23,817
Current provisions
Total current provisions	5,899
Other current liabilities
Long-term liabilities, current portion
Total long-term liabilities, current portion	400,000
Other current liabilities, others	30,120
Total other current liabilities	430,120
Total current liabilities	2,208,211
Non-current liabilities
Long-term borrowings
Total long-term borrowings	2,500,000
Deferred tax liabilities
Total deferred tax liabilities	43,760
Other non-current liabilities
Net defined benefit liability, non-current	200,144
Credit balance of investments accounted for using equity method	8,588
Other non-current liabilities, others	9,485
Total other non-current liabilities	218,217
Total non-current liabilities	2,761,977
Total liabilities	4,970,188
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	5,181,147
Stock dividend to be distributed	0
Total capital stock	5,181,147
Capital surplus
Total capital surplus	14,369
Retained earnings
Legal reserve	1,627,934
Special reserve	565,379
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	1,981,772
Total retained earnings	4,175,085
Other equity interest
Total other equity interest	236,360
Treasury shares	0
Total equity attributable to owners of parent	9,606,961
Equity attributable to former owner of business combination under common control	0
Total equity	9,606,961
Total liabilities and equity	14,577,149

Profit and Loss Account

Unit: NTD/000

Consolidated	2016	2015
Operating revenue
Net sales revenue
Net sales revenue	5,566,285	5,804,229
Total operating revenue	5,566,285	5,804,229
Operating costs
Cost of sales
Total cost of sales	4,978,473	5,312,870
Total operating costs	4,978,473	5,312,870
Gross profit (loss) from operations	587,812	491,359
Gross profit (loss) from operations	587,812	491,359
Operating expenses
Selling expenses
Total selling expenses	87,608	119,256
Administrative expenses
Total administrative expenses	84,441	85,122
Research and development expenses
Total research and development expenses	7,996	7,724
Total operating expenses	180,045	212,102
Net operating income (loss)	407,767	279,257
Non-operating income and expenses
Other income
Total other income	168,353	221,093
Other gains and losses
Other gains and losses, net	-2,770	39,295
Finance costs
Interest expense	101	238
Finance costs, net	101	238
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	10,664	66,550
Total non-operating income and expenses	176,146	326,700
Profit (loss) from continuing operations before tax	583,913	605,957
Tax expense (income)
Total tax expense (income)	83,980	69,102
Profit (loss) from continuing operations	499,933	536,855
Profit (loss)	499,933	536,855
Other comprehensive income
Exchange differences on translation	31,728	15,519
Unrealized gains (losses) on valuation of available-for-sale financial assets	-172,436	-389,177
Actuarial gains (losses) on defined benefit plans	5,743	-4,568
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	-15,593	37,671
Income tax related to components of other comprehensive income	5,237	324
Other comprehensive income, net	-155,795	-340,879
Total comprehensive income	344,138	195,976
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	499,933	536,855
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	344,138	195,976
Basic earnings per share
Basic earnings (loss) per share from continuing operations	1.06	1.14
Total basic earnings per share	1.06	1.14
Diluted earnings per share
Diluted earnings (loss) per share from continuing operations	1.06	1.14
Total diluted earnings per share	1.06	1.14

Unit: NTD/000

	2017-01-01~2017-09-30
Operating revenue
Net sales revenue
Sales revenue
Total sales revenue	1,710,974
Net sales revenue	1,710,974
Total operating revenue	1,710,974
Operating costs
Cost of sales
Total cost of sales	1,565,806
Total operating costs	1,565,806
Gross profit (loss) from operations	145,168
Gross profit (loss) from operations	145,168
Operating expenses
Selling expenses
Total selling expenses	29,213
Administrative expenses
Total administrative expenses	24,238
Research and development expenses
Total research and development expenses	1,479
Total operating expenses	54,930
Net operating income (loss)	90,238
Non-operating income and expenses
Other income
Total other income	64,785
Other gains and losses
Other gains and losses, net	-4,503
Finance costs
Interest expense	11,796
Finance costs, net	11,796
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	29,667
Total non-operating income and expenses	78,153
Profit (loss) from continuing operations before tax	168,391
Tax expense (income)
Total tax expense (income)	18,361
Profit (loss) from continuing operations	150,030
Profit (loss)	150,030
Other comprehensive income
Components of other comprehensive income that will be reclassified to profit or loss
Exchange differences on translation	16,041
Unrealised gains (losses) on valuation of available-for-sale financial assets	-14,677
Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss
Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss	7,809
Income tax related to components of other comprehensive income that will be reclassified to profit or loss	3,917
Components of other comprehensive income that will be reclassified to profit or loss	5,256
Other comprehensive income, net	5,256
Total comprehensive income	155,286
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	150,030
Profit (loss), attributable to former owner of business combination under common control	0
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	155,286
Comprehensive income, attributable to former owner of business combination under common control	0
Basic earnings per share
Basic earnings (loss) per share from continuing operations	0.29
Total basic earnings per share	0.29
Diluted earnings per share
Diluted earnings (loss) per share from continuing operations	0.29
Total diluted earnings per share	0.29

Cash Flows

Unit: NTD/000

Consolidated	2016	2015
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	792,928	637,446
Profit (loss) before tax	792,928	637,446
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	180,969	93,670
Amortization expense	1,785	1,466
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	-700	14,302
Interest expense	21,895	2,029
Interest income	-14,389	-13,515
Dividend income	-88,723	-81,154
Share of loss (profit) of associates and joint ventures accounted for using equity method	-97,677	-29,711
Loss (gain) on disposal of property, plan and equipment	34	-6,511
Loss (gain) on disposal of investments	11,262	0
Impairment loss on non-financial assets	-6,731	3,406
Unrealized foreign exchange loss (gain)	-8,821	-1,381
Total adjustments to reconcile profit (loss)	-1,096	-17,399
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in financial assets held for trading	-1,030,620	338,419
Decrease (increase) in notes receivable	-1,057	-547
Decrease (increase) in accounts receivable	-502,245	-64,029
Decrease (increase) in accounts receivable due from related parties	50,579	-59,229
Decrease (increase) in other receivable	2,300	28,961
Decrease (increase) in other receivable due from related parties	-5,254	-4,221
Decrease (increase) in inventories	127,320	80,200
Decrease (increase) in prepayments	-74,918	27,170
Decrease (increase) in other current assets	0	1,756
Total changes in operating assets	-1,433,895	348,480
Changes in operating liabilities
Increase (decrease) in accounts payable	-37,601	16,268
Increase (decrease) in accounts payable to related parties	36,330	8,279
Increase (decrease) in other payable	99,914	-41,638
Increase (decrease) in other payable to related parties	34,716	-55,863
Increase (decrease) in other current liabilities	6,168	-1,032
Increase (decrease) in net defined benefit liability	-85,684	-3,368
Total changes in operating liabilities	53,843	-77,354
Total changes in operating assets and liabilities	-1,380,052	271,126
Total adjustments	-1,381,148	253,727
Cash inflow (outflow) generated from operations	-588,220	891,173
Interest received	12,253	10,394
Interest paid	-20,884	-1,984
Income taxes refund (paid)	-100,569	-104,114
Net cash flows from (used in) operating activities	-697,420	795,469
Cash flows from (used in) investing activities
Acquisition of available-for-sale financial assets	-11,812	0
Proceeds from disposal of available-for-sale financial assets	13,165	0
Proceeds from capital reduction of financial assets at cost	17,886	1,349
Net cash flow from acquisition of subsidiaries	-95,196	0
Proceeds from capital reduction of investments accounted for using equity method	6,661	5,363
Acquisition of property, plant and equipment	-333,069	-1,801,830
Proceeds from disposal of property, plant and equipment	12	6,851
Increase in refundable deposits	-77	834
Acquisition of intangible assets	0	-1,745
Dividends received	128,847	93,382
Net cash flows from (used in) investing activities	-273,583	-1,695,796
Cash flows from (used in) financing activities
Increase in short-term loans	740,000	210,000
Increase in short-term notes and bills payable	449,836	249,955
Proceeds from long-term debt	2,450,000	0
Increase in other non-current liabilities	-1,025	3,301
Cash dividends paid	-295,896	-140,906
Change in non-controlling interests	-41,786	0
Net cash flows from (used in) financing activities	3,301,129	322,350
Effect of exchange rate changes on cash and cash equivalents	-25,092	5,077
Net increase (decrease) in cash and cash equivalents	2,305,034	-572,900
Cash and cash equivalents at beginning of period	507,965	1,080,865
Cash and cash equivalents at end of period	2,812,999	507,965
Cash and cash equivalents reported in the statement of financial position	2,812,999	507,965

Unit: NTD/000

	2017-01-01~2017-09-30
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	551,281
Profit (loss) before tax	551,281
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	217,964
Amortization expense	715
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	10,755
Interest expense	31,547
Interest income	-12,305
Dividend income	-96,329
Share of loss (profit) of associates and joint ventures accounted for using equity method	-98,046
Loss (gain) on disposal of property, plant and equipment	-210
Loss (gain) on disposal of investments	-7,739
Impairment loss on non-financial assets	6,951
Unrealized foreign exchange loss (gain)	-2,951
Total adjustments to reconcile profit (loss)	50,352
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in financial assets held for trading	-315,281
Decrease (increase) in notes receivable	1,260
Decrease (increase) in accounts receivable	224,007
Decrease (increase) in accounts receivable due from related parties	42,146
Decrease (increase) in other receivable	-11,976
Decrease (increase) in other receivable due from related parties	-10,919
Decrease (increase) in inventories	60,423
Decrease (increase) in prepayments	46,649
Decrease (increase) in other current assets	-132
Total changes in operating assets	36,177
Changes in operating liabilities
Increase (decrease) in accounts payable	-1,662
Increase (decrease) in accounts payable to related parties	-38,975
Increase (decrease) in other payable	-103,611
Increase (decrease) in other payable to related parties	-12,602
Increase (decrease) in other current liabilities	14,487
Increase (decrease) in net defined benefit liability	-38,983
Total changes in operating liabilities	-181,346
Total changes in operating assets and liabilities	-145,169
Total adjustments	-94,817
Cash inflow (outflow) generated from operations	456,464
Interest received	11,158
Interest paid	-31,076
Income taxes refund (paid)	-89,903
Net cash flows from (used in) operating activities	346,643
Cash flows from (used in) investing activities
Acquisition of available-for-sale financial assets	0
Proceeds from disposal of available-for-sale financial assets	21,634
Proceeds from capital reduction of financial assets at cost	20,993
Acquisition of investments accounted for using equity method	-1,437,647
Increase in prepayments for investments	0
Acquisition of property, plant and equipment	-104,892
Proceeds from disposal of property, plant and equipment	210
Increase in refundable deposits	59
Dividends received	164,189
Net cash flows from (used in) investing activities	-1,335,454
Cash flows from (used in) financing activities
Increase in short-term loans	0
Decrease in short-term loans	-450,000
Decrease in short-term notes and bills payable	0
Proceeds from long-term debt	450,000
Increase in other non-current liabilities	1,229
Cash dividends paid	-301,765
Net cash flows from (used in) financing activities	-300,536
Effect of exchange rate changes on cash and cash equivalents	-12,960
Net increase (decrease) in cash and cash equivalents	-1,302,307
Cash and cash equivalents at beginning of period	2,812,999
Cash and cash equivalents at end of period	1,510,692
Cash and cash equivalents reported in the statement of financial position	1,510,692

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

Name:

Chang Hwa Commercial Bank, Ltd

Public Record

Mortgage

Case Type:	Chattel Mortgage
Registered Number:	020293
Debtor Name:	Asia Polymer Corporation
Registry:	Directorate-General of Highways, MOTC
Name of Mortgagee:	Mega International Commercial Bank Co., Ltd.
Date of Registration:	1984-01-20
Amount of Secure Claims:	NTD 1,800,000,000
Type of Mortgage:	Machinery equipment or tool

Lawsuit

Trial Number:	2008, Beibu, 136
Date of Trial:	2008-05-05
Reason:	Returning of housing, etc.
Claimant:	Asia Polymer Corporation
Defendant:	Ding Tai International Co. Ltd. (literal translation)

Special Note

Interview Details

Name:	Ms. Gong
Department	Sales Department
E-mail:	shgong@apc.com.tw

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.22
UK Pound	1	INR 91.33
Euro	1	INR 79.96
TWD	1	INR 2.23

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

INFORMATION DETAILS

Analysis Done by :	PRA
Report Prepared by :	TPT

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)

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