MIRA INFORM REPORT

Report Date :

13^th November, 2006

IDENTIFICATION DETAILS

Name :	DELTA ELECTRONICS (THAILAND) PUBLIC CO. LTD.
Registered Office :	714 Moo 4, Bangpoo Industrial Estate, T. Praeksa, A. Muang, Samutprakarn 10280, Thailand
Country :	Thailand
Financials (as on) :	31.12.2005
Date of Incorporation :	1988
Com. Reg. No.:	0107537002559 [Former : BOR.MOR.JOR.502]
Legal Form :	Public Limited Company
Line of Business :	The subject is engaged in contract manufacturing service of electronic components for export according to two types of customer order: Original Design Manufacturer [ODM] and standard products for distribution.

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

Company name

DELTA ELECTRONICS [THAILAND] PUBLIC CO., LTD. [DELTA]

SUMMARY

BUSINESS ADDRESS : 714 MOO 4, BANGPOO INDUSTRIAL ESTATE,

: T. PRAEKSA, A. MUANG,

SAMUTPRAKARN 10280, THAILAND

TELEPHONE : [66] 2709-2800

FAX : [66] 2709-3790, 2709-2842

E-MAIL : info@deltathailand.com

ESTABLISHED : 1988

REGISTRATION NO. : 0107537002559 [Former : BOR.MOR.JOR.502]

CAPITAL REGISTERED : BHT. 1,259,000,000

CAPITAL PAID-UP : BHT. 1,246,067,451

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PUBLIC LIMITED COMPANY

EXECUTIVE : MR. NG KONG MENG [JAMES], MALAYSIAN

PRESIDENT & PRODUCT DEVELOPMENT

MANAGER

NO. OF STAFF : 12,509

LINES OF BUSINESS :ELECTRONIC PRODUCTS MANUFACTURER & EXPORTER

CORPORATE PROFILE

OPERATING TREND : STABLE

PRESENT SITUATION : OPERATING NORMALLY

REPUTATION : GOOD FOR NORMAL BUSINESS ENGAGEMENT

MANAGEMENT STANDARD : MANAGEMENT WITH GOOD PERFORMANCE

HISTORY

The subject was initially formed on June 16, 1988 as a private limited company as a subsidiary company of DELTA ELECTRONIC INC., U.S.A., under the registered name DELTA ELECTRONICS [THAILAND] CO., LTD. The Delta group’s production base are for electronic component production, with 2 main products; desktop power supplies and monitor. In 1988, the subject received investment promotion from the Board of Investment [BOI]. It began manufacturing activities in 1990. In 1993, the subject obtained the Best Factory Award from the Industrial Estate Authority of Thailand. It currently employs 12,509 staff.

In August 1994, the subject received quality system certificate ISO 9001 from DET NORSKE VERITAS of the United Kingdom.

On September 23, 1994 the subject converted its status to become a public limited company.

In 1995 the subject became 100% Original Design Manufacturing [ODM] company and listed on the Stock Exchange of Thailand in July 1995.

In January 1997, the subject set up “Delta Electronics [Cambodia] Co., Ltd.” for manufacturing of Magnetic & EMI Filter. In January 1997, the subject established joint venture with Susumu Co., Ltd. [Japan] and Cyntec Co., Ltd. [Taiwan] to set up “Delta Micro Electronics Co., Ltd.” to make Thin Film Chip Resistor and Temperature Sensor.

In September 1997, the subject started production of Ni-MH Rechargeable battery in Thailand. In 1998, it has invested in “Delta Axxion Technology [Thailand] Co., Ltd.” to make Bare Bone.

In November 1997, the subject set up DET International Holding Ltd., the holding company at Cayman Island for investment purpose.

In February 1998, it received the best factory Award from Committee of Factory Award Project.

In October 1998, it received the ISO 14001 Environmental Management Systems Certification from SGS Yarsley.

During 1998-2002 the subject was expanded its new products to OEM customers includes servers power supplies in 1999, networking power supplies in 2000, DC-DC converters power supplies in 2001, and DC Fan in 2002.

The subject’s registered address is 714 Moo 4, Bangpoo Industrial Estate, T. Praeksa, A. Muang, Samutprakarn 10280, and this is the subject’s current operation address.

THE BOARD OF DIRECTORS

Name		Nationality	Age
Mr. Ng Kong Meng : Chairman	: [x]	Malaysian	59
Mr. Wang Ming-Cheng	: [x]	Taiwanese	60
Mr. Chu Chih-Yuan	: [+]	Taiwanese	59
Mr. Anusorn Muttaraid	: [+]	Thai	52
Ms. Niramol Tantipuntam	: [+]	Thai	49
Mrs. Supaphan Ratanaporn		Thai	62
Mrs. Vathanee Phannachet		Thai	67
Mr. Hsieh Heng Hsien	: [x]	Taiwanese	42
Mr. Lee Ji Ren		Taiwanese	48

AUTHORIZED PERSON

Two of the mentioned directors [x] can jointly sign or one of the directors [x] can jointly sign with one of the directors [+] on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Ng Kong Meng [James] is the President & Product Development Manager.

He is Malaysian nationality with the age of 59 years old.

Work Experience:

1974 - 1986 : Divisional Manager, Philips Singapore Pte. Ltd.

1986 - 1989 : General Manager, Thomson Audio Malaysia Pte. Ltd.

Mr. Wang Ming-Cheng [Stronger] is the Executive Vice President.

He is Taiwanese nationality with the age of 60 years old.

Work Experience:

1971 - 1986 : Manager Manufacturing, Engineering, RCA [Taiwan] Ltd.

1987 - 1989 : Factory Manager, Delta Electronics Inc. Taiwan

Mr. Hsieh Heng Hsien is the Vice President, marketing & Sales.

He is Taiwanese nationality with the age of 42 years old.

Mr. Anusorn Muttaraid is the Administration & Human Resource Manager.

He is Thai nationality with the age of 52 years old.

Mr. Yu Po-Wen is the Financial Director.

He is Taiwanese nationality.

Mr. Ter Chai Seng is the Operation Director..

He is Taiwanese nationality.

BUSINESS OPERATIONS

The subject is engaged in contract manufacturing service of electronic components for export according to two types of customer order: Original Design Manufacturer [ODM] and standard products for distribution. Delta’s products are used as components in electronics and telecommunications equipment.

Its products are as follows:

1. Monitor

- CRT, LCD, TVPDP

2. Switching Power supplies

- Switching Power Supply

- DC-DC converters

- AC/DC adapters

3. DES Products [Delta Energy Systems]

4. Electronic Components

- Magnetic & Solenoid

- EMI filters

- DC Brushless fan & blowers

PRODUCTION

Monitor : 80,000 Units/month

DC-DC converter : 1,200,000 Units/month

Switching Power Supplies : 3,780,000 Units/month

Adapters : 960,000 Units/month

DES : 260,000 Units/month

Magnetic : 20,000,000 Units/month

Solenoid : 50,000 Units/month

ECU : 120,000 Units/month

EMI filter : 3,000,000 Units/month

Cooling Fan : 2,000,000 Units/month

The products are serviced to worldwide leading electronics manufacturers, such as Dell, Cisco, HP, Arris International, Xerox, Sun Microsystems, Intel, Acer, Bendix, Celstica, Ericsson, Fujitsu, Apple, Motorola, Philips, Sony, LG, Hitachi and etc.

IMPORT [COUNTRIES]

The majority of machinery, spare parts and raw material are imported from Taiwan and Japan, Republic of China, and the rest is purchased from local suppliers.

MAJOR SUPPLIERS

Delta Electronics Ltd. : Taiwan, the main supplier of raw materials

EXPORT [COUNTRIES]

100% of its products is exported to United States of America, Taiwan, Europe, Japan, Singapore, Hong Kong, Taiwan, Republic of China and Australia.

MAJOR CUSTOMERS

- AT & T Communication Inc. : United States of America

- IBM : United States of America

- Compaq : United States of America

- Hewllett Packard : United States of America

- Mutsushita : Japan

- Fujitsu : Japan

- Acer : Japan

- Canon : Japan

- Gateway 2000 : United States of America

- Hitachi : Japan

- Toshiba : Japan

- etc.

INVESTMENT IN SUBSIDIARY COMPANIES

Subsidiary Companies

DET International Holding Co., Ltd.

Business Type : Holding Business

Investment : The subject is holding 100.00% of the company’s shares.

Delta Energy System [Switzerland] Co., Ltd.

Business Type : Holding company

Investment : The subject is holding 100.00% of the company’s shares.

The subsidiaries held through DET International Holding Limited are Newton Power Limited, Delcom Electronics Co., Ltd., DET Logistic [USA] Corporation Limited and Delta Electronic Components [Thailand] Co., Ltd. All associated companies are also held through DET International Holding Limited.

LITIGATION

Bankruptcy and Receivership

There are no litigation on bankruptcy and receivership cases filed against the subject found at Legal Execution Department for the past five years.

Others

There are no legal suits filed against the subject according to IRICO’S DATABASE for the past two years.

CREDIT

Purchasing terms are by cash or on the credits of 30-60-90 days.

Imports are by L/C at sight or on the credit of 120 days.

Exports are against L/C at sight or T/T on the credits of 30-60 days.

BANKING

Bangkok Bank Public Co., Ltd.

[Samutprakarn Branch : Sukhumvit Rd., Muang, Samutprakarn 10270]

TMB Bank Public Co., Ltd.

[Samutprakarn Branch : 122 Srisamut Rd., Muang, Samutprakarn 10270]

Credit Agricole Indosuez

[Bangkok Branch : 152 Wireless Rd., Lumpini, Pathumwan, Bangkok 10330]

Citibank NA

[Bangkok Branch : 127 South Sathorn Rd., Sathorn, Bangkok 10120]

EMPLOYMENT

The subject employs around 12,509 office staff and factory workers.

LOCATION DETAILS

The premise is owned for administrative office at the heading address. Premise is located in an industrial area.

Factory:

Monitor Factory:

Location : Plant 1, Export Processing Zone, Bangpoo Industrial Estate, 701 Moo 4,

Praeksa, Muang, Samutprakarn 10280.

Facility Area : 18,000 sq.m.

Switching Power Supplies Factory:

- Switching Power Supplies [SPS and Adaptor]

Location : Plant 5, Export Processing Zone, Bangpoo Industrial Estate,

Praeksa, Muang, Samutprakarn 10280.

Facility Area : 9,600 sq.m.

- DC-DC Factory:

Location : Plant 5, Export Processing Zone, Bangpoo Industrial Estate,

Praeksa, Muang, Samutprakarn 10280.

Facility Area : 4,200 sq.m.

DES Products :

Location : Plant 5, Export Processing Zone, Bangpoo Industrial Estate,

Praeksa, Muang, Samutprakarn 10280.

Facility Area : 15,000 sq.m.

Electronic Components :

- Magnetic Factory:

Location : Plant 5, Export Processing Zone, Bangpoo Industrial Estate,

Praeksa, Muang, Samutprakarn 10280.

Facility Area : 23,624 sq.m.

- EMI Filter Factory:

Location : Wellgrow Industrial Estate, Bangpakong, Chachoengsao Province

Facility Area : 2,800 sq.m.

- Cooling Fan Factory:

Location : Wellgrow Industrial Estate, Bangpakong, Chachoengsao Province

Facility Area : 2,500 sq.m.

COMMENT

The company has always been in the top five among Thai companies for excellent profit margins for the past decade. Its great performance was on the back of in-dept research and development combined with healthy financial fundamental. Delta allocates 3% of its revenue considered an international standard for R&D each year. Moreover, careful product planning and plant operation helped Delta stay ahead of the competitors. Over the past year, the company diversified its production lines from computer technology to components for communications and consumer products such as electrical appliances, multimedia systems and mobile phones. Delta had foreseen that information technology was heading for a downturn in the past few years, and it was able to switch quickly and derive more earnings from switching power supply and magnetic components. The good results came largely from components for mobile phones and fibre-optics as well as the contribution of new monitor products.

Furthermore, a strong focus on one-year business plans created a smarter and more focused company. The focus on customers has generated a consistently strong performance for Delta. After selecting the business areas on which it wants to concentrate, Delta will develop the product technology by itself and refine it by working with its customers. The company is aware that it is no longer just to provide the systems and services that customers demand. The company has to read market trends and come up with solutions for high-quality systems.

Market Competition

The market for electronics products are highly competitive resulting in downward pressure on its prices and margins, especially in its power supplies products. The subject competes in offering new model with better quality and specifications at more competitive prices. Moreover, the subject offer different product lines to various degrees on the basis of prices, quality and technical performance, features, and systems compatibility as well as customized design and technical support to individual customers in various industries such as telecommunications, office appliances and consumer electronic devices. Though monitor price erosion has slow down in recent years due to shortage of Cathod Ray Tube, but the subject still further develops its capacity in bigger screen monitor which yields higher price and margin.

FINANCIAL INFORMATION

The capital was initially registered at Bht. 40 million, divided into 4,000,000 shares of Bht. 10 each.

The capital was increased later as followings:

Bht. 200,000,000 in December, 1987

Bht. 300,000,000 in August, 1990

Bht. 800,000,000 in September, 1994

Bht. 1,200,000,000 in 1998

Bht. 1,259,000,000 on February 9, 2006

The latest capital was divided into 1,259,000,000 shares of Bht. 1 with the current capital paid-up of Bht. 1,246,067,451.

MAIN SHAREHOLDERS

[as at March 10, 2006] at Bht. 1,246,067,451 of capitalization.

NAME	HOLDING	%
Citibank Nominee Singapore Pte. Ltd. - SA PBG Clients SG	808,107,200	65.24
Delta Electronics Inc.	69,128,140	5.58
Chase Nominees Limited 42	52,421,308	4.23
HSBC [Singapore] Nominees Pte. Ltd.	37,973,640	3.07
Mellon Bank N.A.	24,492,700	1.98
HSBC Bank Plc-Clients General A/C	20,502,700	1.66
ABN AMRO Bank NV. Singapore Branch	17,195,750	1.39
Thai NVDR Co., Ltd.	15,930,475	1.29
Goldman Sachs International	13,241,190	1.07
State Street Bank and Trust Company	9,407,950	0.76
State Street Bank and Trust Company, for London	8,652,406	0.70
Others	169,013,992	13.03

Total Shareholders : 3,416

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Dr. Supachai Panyawatano No. 3930

BALANCE SHEET [BAHT]

The latest financial figures published for December 31, 2005 & 2004 were:

ASSETS

Current Assets	2005	2004
Cash in hand & at Bank	5,309,825,378	2,417,913,321
Trade Accounts Receivable - Related Company	2,943,821,584	3,570,078,030
- Other Company	4,914,135,153	6,657,116,350
Less: Provision for Doubtful Accounts	[261,695,236]	[265,581,428]
Trade Accounts Receivable - Net	7,596,261,501	9,961,612,952
Inventories	1,891,567,045	2,118,711,879
Other Current Assets Refundable Business Tax	22,642,995	14,817,593
Prepayment	21,748,453	29,533,045
Others	31,050,094	22,766,870
Total Current Assets	14,873,095,466	14,565,355,660
Investment accounted for under Equity Method	2,818,944,021	3,565,545,372
Fixed Assets	3,396,080,738	3,860,743,128
Other Assets	2,197,431	1,904,762
Total Assets	21,090,317,656	21,993,548,922

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2005	2004
Trade Accounts Payable - Related Company	143,814,723	151,326,933
- Non Related Company	4,745,801,603	5,500,694,457
Trade Accounts Payable - Net	4,889,616,326	5,652,021,390
Short Term Loan & Advanced Related Company	128,668,278	242,213,445
Other Current Liabilities Accrued Expenses	763,779,606	534,360,813
Pre-received Income	166,392,805	144,630,007
Account Payable - Forward Contract	161,447,720	195,871,232
Others	18,310,031	23,147,100
Total Current Liabilities	6,128,214,766	6,792,243,987
Long Term Loan from Related Company	-	1,848,741,408
Total Liabilities	6,128,214,766	8,640,985,395
Shareholders' Equity
Share capital : Baht 1 par value Authorized & issued share capital 1,259 & 1,200 million shares in 2005 & 2004	1,259,000,000	1,200,000,000
Capital Paid	1,188,116,740	1,188,102,115
Surplus on Share Capital	1,491,912,500	1,491,912,500
Unrealized Loss of Investment in Marketable Securities available for Sale	[13,122,460]	[41,001,868]
Adjustment from Conversion of Accounts in Foreign Currency	97,195,102	[150,241,673]
Retained Earning Appropriated for Statutory Reserve	129,900,000	120,000,000
Unappropriated	12,072,101,008	10,743,792,453
Total Shareholders' Equity	14,962,102,890	13,352,563,527
Total Liabilities & Shareholders' Equity	21,090,317,656	21,993,548,922

PROFIT & LOSS ACCOUNT

Revenue	2005	2004
Sales & Services	34,029,416,390	37,716,572,039
Other Income Interest Income	97,952,723	51,813,719
Gain on Exchange Rate	608,811,855	-
Others	60,245,617	31,686,281
Total Revenues	34,796,426,585	37,800,072,039
Expenses
Cost of Goods Sold & Services	27,543,445,189	31,586,069,815
Selling & Administrative Expenses	3,906,913,903	3,891,017,582
Loss on Sales of Assets	33,588,452	2,147,602
Loss on Exchange Rate	-	214,232,587
Directors’ Remuneration	4,410,000	4,511,960
Shares of Loss from Investment Equity Method	1,021,917,534	862,673,789
Total Expenses	32,510,275,078	36,560,653,335
Profit / [Loss] before Income Tax	2,286,151,507	1,239,418,704
Income Tax	[1,471,410]	[11,310,162]
Net Profit / [Loss]	2,284,680,097	1,228,108,542

FINANCIAL ANALYSIS

Annual Growth & Profitability

Annual Growth	2005	2004
Sales	[9.78]
Operating	59.65
Net Profit	86.03
Fixed Assets	[12.04]
Total Assets	[4.11]
Profitability
Cost of Goods Sold	80.94	83.75
Operating Profit Margin	9.83	6.16
S&A expenses	11.48	10.32
Other Revenues	2.25	0.22
Net Profit Margin	6.71	3.26
Earning Per Shares	1.92	1.03
No. of Shares	1,188,116,740	1,188,102,115

Net Sales was decreased by 9.78%, Operating Profit was increased by 59.65%, Net Profit was increased by 86.03%, Fixed Assets was decreased by 12.04%, Total Assets was decreased by 4.11%.

Compare each cost with sales, Cost of Goods Sold was decreased from 83.75% to 80.94%, Operating Profit Margin was increased from 6.16% to 9.83%, S & A Expenses were increased from 10.32% to 11.48%, Other Revenues was increased from 0.22% to 2.25%, Net Profit Margin was increased from 3.26% to 6.71%.

Earning Per Shares was increased from 1.03 baht per share to 1.92 baht per share.

Liquidity

Liquidity	2005	2004
Current Ratio	2.43	2.14
Quick - assets ratio	2.11	1.82

Current Ratio was increased from 2.14 to 2.43, show Current Assets can cover Current Liabilities, Liquidity Ratio of the company was good, and Quick-assets Ratio was increased from 1.82 to 2.11, capacity to pay Short Term Loan was good too, because Current Assets without Inventory can cover Current Liabilities.

Leverage

Leverage	2005	2004
D/E Ratio	0.41	0.65

D/E Ratio was decreased from 0.65 to 0.41, show the company had fund from Equity more than fund from Loan, investment risked of the company is low.

Efficiency

Efficiency	2005	2004
Fixed Assets Turnover	10.02	9.77
Total Assets Turnover	1.61	1.71
Return on Assets	10.83	5.58
Return on Equity	15.27	9.20
Day’s Payable	51.73	53.95
Day’s Inventories	20.01	20.22
Days’ Receivables	80.36	95.08

Fixed Assets Turnover was increased from 9.77 times to 10.02 times, Total Assets Turnover was decreased from 1.71 times to 1.61 times, show the company could use Fixed Assets so efficiently, and Return on Assets was increased from 5.58 to 10.83, Return on Equity was increased from 9.20 to 15.27, capacity to use Assets to make profit was good.

Day’s Payable was decreased from 54 days to 52 days, while Day’s Inventories was stable at 21 days, but Day’s Receivables was decreased from 96 days to 81 days.

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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