MIRA INFORM REPORT

Report No. :	509528
Report Date :	21.05.2018

IDENTIFICATION DETAILS

Name :	BASF TAIWAN LTD.
Formerly Known As :	BASF ELECTRONIC MATERIALS TAIWAN LTD.
Registered Office :	16F., No.87, Songjiang Rd., Zhongshan Dist., Taipei City 10486, Taiwan (R.O.C.)
Country :	Taiwan
Date of Incorporation :	26.03.1991
Com. Reg. No.:	23930512
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and Sales of Chemicals, etc.
No. of Employees :	About 700

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	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist

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:	BASF TAIWAN LTD.
Supplied Name:	BASF TAIWAN LIMITED
Trading Address:	16F., No.87, Songjiang Rd., Zhongshan Dist., Taipei City 10486, Taiwan (R.O.C.)
Supplied Address:	Empire Building 16th Floor No 87 Song Jiang Road, Zhongshan District 10486 TAIPEI
Telephone Number:	+886-2-2518-7600
Fax Number:	+886-2-2518-7701

Notes: The exact name and address are as above.

Company Identification Details

Registered Name:	BASF TAIWAN LTD.
Registered Address:	16F., No.87, Songjiang Rd., Zhongshan Dist., Taipei City 10486, Taiwan (R.O.C.)
Date of Foundation:	1991-03-26
Registration Number:	23930512
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 3,566,303,000 (USD 117,687,999) (As of 2018.5, 1 NTD = 0.033 USD)
Paid-up Capital:	NTD 3,566,303,000 (USD 117,687,999)
Legal Representatives:	Stephan Dr. Kothrade
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sales of chemicals, etc.
Staff:	About 700 Employees
Listed at Stock Exchange:	No
Date of Last Annual Return:	2017-08-03

History

Subject was incorporated on 1991-03-26 with registered number 23930512 as Joint Stock Company in Taiwan.

Change of Name

Former English Name:	BASF ELECTRONIC MATERIALS TAIWAN LTD.
Current English Name:	BASF TAIWAN LTD.

Corporate Structure

Factories

1
Name:	Guanyin Factory
Address:	No. 33, Jingjian 1st Rd., Shulin Village, Guanyin Xiang, Taoyuan County, Taiwan
Date of Foundation:	1991-05-15
Date of Registration:	1993-03-09
Factory Registration Number:	99622117
Factory Manager:	Jiawei Lin
Status:	In Production
Date of Last Annual Return:	2017-12-05
Major Products:	181 basic chemical materials 182 petrochemical materials 199 other chemical products
2
Name:	Guanyin III Factory
Address:	No. 31, Jingjian 2nd Rd., Shulin Li, Guanyin Xiang, Taoyuan County, Taiwan
Date of Registration:	2014-01-03
Factory Registration Number:	03002108
Factory Manager:	Jiawei Lin
Status:	In Production
Date of Last Annual Return:	2014-01-03
Major Products:	254 metal processing
3
Name:	Kaohsiung Factory
Address:	No. 6, Guanghua Rd., Daliao Dist., Kaohsiung City, Taiwan
Date of Foundation:	1989-02-04
Date of Registration:	1992-05-06
Factory Registration Number:	99663018
Factory Manager:	Wansuo Chen
Status:	In Production
Date of Last Annual Return:	2015-12-02
Major Products:	199 other chemical products
4
Name:	Changhua Factory
Address:	No. 18, No. 20, Lu Gong Nan 5^th Road, Lu Gang Town, Changhua, Taiwan
Date of Registration:	2005-09-28
Factory Registration Number:	99679831
Factory Manager:	Shichang Liu
Status:	In Production
Date of Last Annual Return:	2016-07-19
Major Products:	184 synthetic resin, rubber and plastic

Major Related Companies

1
Name	BASF Hong Kong Ltd.
Address	No. 1, Connaught Place, Central Hong Kong
Tel:	+852-2731-1222
Fax:	+852-2734-9631
2
Name	BASF (China) Co. Ltd.
Address	No.300, Jiang Xin Sha Road Shanghai 200137 P. R. China
Tel:	+86-21-2039-1000
Fax:	+86-21-2039-4306

Shareholder

Major Shareholder

Name	Subscription Shares
BASF Taiwan B.V.	3,566,303

Registered Name:	BASF Taiwan B.V.
Registration Number:	27934905

Management Information

Core Management

Directors

1
Name		Stephan Dr. Kothrade
Position		Chairman of the Board
2
Name	Johann Friedrich Ulrich Dr. Boettger
Position		Director
3
Name	Mirko Bengel
Position		Director
4
Name	Ki, Wing Man Teresa
Position		Supervisor
5
Name	Kin Wah Chay
Position		Manager
Date of Appointment		2017-03-01

Personnel Structure

Total Employees

About 700 Employees

Operation Information

Offices & Factories

	Headquarters
Add	16F., No.87, Songjiang Rd., Zhongshan Dist., Taipei City 10486, Taiwan (R.O.C.)

Production Information

Subject is engaged in manufacturing of chemicals, etc.

Subject has factories in Taiwan for production.

Purchase Information

The registered activities of subject:

Business Code	Details
EZ05010	Instrumentation, installation engineering
F102180	Alcohol wholesaling
F107200	Chemical raw materials wholesaling
F107990	Other chemical products wholesaling
F113010	Mechanical wholesaling
F203030	Alcohol retailing
F207200	Chemical raw materials retailing
F207990	Other chemical products retailing
F213040	Precision instruments retailing
F401010	The international trade
JE01010	Leasing industry
F103010	Feed wholesaling
F107020	Dye pigment wholesaling
F107050	Fertilizer wholesaling
F107080	Environmental medicine wholesaling
F202010	Feed retailing
F207050	Fertilizer retailing
F207080	Environmental medicine retailing
I103060	Management and consultant industry
F111090	Building materials wholesaling
F211010	Building materials retailing
C901050	Cement and concrete products manufacturing
C802200	Dyes and pigments manufacturing coating paint
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.
F113020	Electrical wholesaling
F116010	Photographic equipment wholesaling
F207020	Dye paint retailing
F213010	Electrical appliance retailing
F216010	Photographic equipment retailing
F107060	Toxic chemical substances wholesaling
F207060	Toxic chemical substances retailing
F102170	Food wholesaling
F203010	Food and beverage wholesaling
C801100	Synthetic resin and plastic manufacturing
C801010	Basic chemical industry
C801990	Other chemical materials manufacturing
C802090	Cleaning products manufacturing
C802990	Other chemical products manufacturing
F107030	Cleaning supplies wholesaling
F207030	Cleaning supplies retailing
IF04010	Nondestructive testing industry
F107190	Plastic film bags wholesaling
F207190	Plastic film bag of retailing
IZ99990	Other business services
JZ99990	No other services were classified
F107041	Pesticide wholesaling
F108021	Western medicine wholesaling
F207041	Pesticide retailing
F208021	Western medicine retailing
CA02990	Other metal products manufacturing
F107040	Agricultural drug wholesale
F207040	Agricultural drug retail

The raw materials for production are purchased from both home and abroad.

Sales Information

Subject is engaged in sales of chemicals, etc.

The products of subject are mainly applied for medicine, plastic, papers, leathers, and textile, etc.

Subject’s sales regions include domestic market, Japan, Korea, Singapore, Southeast Asia, US, Europe, Australia, etc.

It is introduced that subject’s major customers are manufacturers of paper and rubber, etc.

Major Products

Category	Products
Chemicals	Petrochemicals, Intermediates, Monomers, etc.
Performance Products	Dispersions & Pigments, Care Chemicals, Automobile and Refinery Industry, Textile Chemicals, Leather Chemicals, Paper Chemicals, etc.
Functional Materials & Solutions	Catalysts, Coatings, Construction Chemicals, Performance Materials, etc.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Products	Raw Materials, etc.
Payment Terms	T/T, Cash, etc.

Import

Products	Raw Materials, etc.
Payment Terms	L/C, T/T, etc.

Sales

Domestic Markets

Product	Chemicals, etc.
Selling Terms	T/T, Cash, etc.

Export

Product	Chemicals, etc.
Selling Terms	L/C, T/T, etc.

Financial Information

Subject has no obligations to disclose its financial statements to the third party according to the relevant policy in Taiwan and the only source from which we can obtain the information is the subject itself.

Subject’s relevant staff declined to disclose its financials citing the grounds of company’s confidentiality; from other sources we could not obtain such information, either.

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

1
Trial Number:	2013, Beijian, 2372
Date of Trial:	2013-08-16
Reason:	Return the compensation
Claimant:	Mingda Water and Electricity Co., Ltd. (Literal Translation)
Defendant:	BASF Taiwan Ltd.
2
Trial Number:	2013, Beijian, 2372
Date of Trial:	2013-07-17
Reason:	Return the compensation
Claimant:	Mingda Water and Electricity Co., Ltd. (Literal Translation)
Defendant:	BASF Taiwan Ltd.

Special Note

Interview Details

Department

Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 67.95
UK Pound	1	INR 91.87
Euro	1	INR 80.27
TWD	1	INR 2.27

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