MIRA
INFORM REPORT
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Report Date : |
06.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
TWOWAY COMMUNICATIONS INC |
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Registered Office : |
Wuku Industrial Park 41 Wu Kung 6th Rd Wuku Hsiang Taipei Hsien 248 |
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Country : |
Taiwan |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
15.10.1992 |
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Com. Reg. No.: |
86880449 |
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Legal Form : |
Public Listed Company |
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Line of Business : |
Research and Development of Technologies related to HFC network
equipments |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 800,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NAME AND ADDRESS
TWOWAY
COMMUNICATIONS INC
WUKU INDUSTRIAL PARK 41 WU KUNG 6TH RD
WUKU HSIANG TAIPEI HSIEN 248, TAIWAN
TEL: 886-2-22990666
FAX: 886-2-22990667
EXECUTIVE SUMMARY
INCORPORATION DATE :
OCTOBER 15, 1992
REGISTRATION NO. :
86880449
LEGAL FORM :
PUBLIC LISTED COMPANY
CHIEF EXECUTIVE :
MS. SUSAN PI-SHUANG CHEN (CHAIRMAN)
STAFF STRENGTH :
181
CAPITAL :
US$ 22,933,011
BUSINESS LINE :
MANUFACTURER
TURNOVER :
NTD 709,984,000 (AS OF 2006)
EQUITIES :
NTD 671,304,000 (AS OF 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 800,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
TWD 32.35950 = US$1
Adopted
abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
M - million
TWD –Taiwan New Dollars
*Company History*
===============
23 January, 2003 - Listed on
Taiwan Stock Exchange with ticker code 8045.
*Company Name*
==============
Incorporated as :
TWO-WAY CATV SERVICE INC
Date of incorporation : 15
October, 1992
Changed name to : TWOWAY
COMMUNICATIONS INC
Date of change : N/A
*Office & Facilities*
================
Size :
8,439 sq. meter (Approx.)
Location :
Taipei Hsien
Type of building :
Industrial building
Property status : Owned
by TWOWAY COMMUNICATIONS INC
Comments : Serves as office and factory.
*Corporate & Organization Structure*
=============================
A medium-sized company operated and managed by an experienced team of
professionals.
*Capital Details*
=============
Initial registered capital
: NTD 5,000,000.00
Capital increases as follows:
Year
Amount (NTD)
-----
---------------------
1996
40,000,000
1998 160,000,000
1999
228,000,000
2000
379,000,000
2001
476,000,000
2002
523,000,000
2003
576,000,000
2004
605,000,000
-- 760,000,000.00
Paid-up capital : NTD
605,208,150.00
*Licenses & Permits*
================
License number : 9960309001
Date issued : 1
February, 2002
Issuing authority : Industrial
Development Bureau, MOEA
Type of license : Factory
license
*Industry Ranking*
================
Generally regarded as one of the Top 5000 Companies in Manufacturing
Industry of Taiwan.
Details of rank are as follows:
Year Rank
------- ---------
2004 2273
2005 2995
2006 2782
*Registrars*
=========
JIH SUN SECURITIES CO LTD
Stock Market Code : 8045
*Auditors*
=========
ERNST & YOUNG LLP
*Reputation*
==========
Reference checking for the purpose of establishing the firm's reputation
within the respective industry failed to reveal any negative information.
www.twoway.com.tw the design is
professional and the content is well organized. At present it is both in
Chinese and English versions.
E-mail: twoway@seed.net.tw
For the past two years there is no record of litigation.
*Major Shareholders*
================
Shareholders' Name No. of Shares
--------------------------
------------------
Mr. Guo-yuan Tai
5,046,267
Ms. Susan Pi-shuang Chen 4,373,258
TSE LUEH YING MANAGE & CONSULT LTD 441,000
Mr. Wan-lai Chang 88,935
Mr. Ming-yuan Cheng 36,844
Mr. Chin-fang Huang
--
Mr. Chin-ming Huang
--
Mr. Yen-sheng Huang
--
Management: Mr. Ling-chuan Wang,
Manager
Ms. Chiu-jung Hsu, Manager
Mr. Eric Fu, Manager
Name Nationality
Job Description Dept. / Division
Mr. Ling-chuan Wang Taiwanese
Manager Account
Ms. Chiu-jung Hsu Taiwanese
Manager Administration
Mr. Eric Fu Taiwanese
Manager Business Liaison
Ms. Tina Mei-pei Tsai Taiwanese
Manager Finance
Mr. Wen-yen Chang Taiwanese
Manager R&D
Mr. Chia-hsiang Huang Taiwanese
Director Sales
Mr. Guo-yuan Tai Taiwanese
General Manager -
Ms. Susan Pi-shuang Chen Taiwanese
President -
Mr. Yi-chuan Lin Taiwanese
Special Assistant -
*Key Personnel*
=============
(1)
Ms. Susan Pi-shuang Chen
Founder :
Co-Founder
Resident status : Taiwan
Email :
cs@twoway.com.tw
Work experience : More than 15 years experience
Responsibilities : Handles the daily operation of the firm
including all financials, sales and legal matters.
(2)
Mr. Yi-chuan Lin
E-mail :
pr@twoway.com.tw
(3)
Ms. Tina Mei-pei Tsai
E-mail :
tina.tsai@twoway.com.tw
*Main Products & Services*
=====================
Specializes in the following areas of works:
1. Research and Development of technologies related to HFC network
equipments.
2. Manufacturing of amplifiers and accessories, optical transceivers and
cable television (CATV) related equipments.
3. Selling to both domestic and international markets.
Products: Amplifiers
CATV
amplifiers
CATV head end
equipment
CATV optical
transmitter
CCTV systems
*Brand*
======
ACI
Augat
*Payment Terms*
=============
Sales
-------
Local : Cash
30-90 days credit
Export : Letter of Credit (L/C)
Telegraphic
Transfer (T/T)
Purchases
--------------
Local : 30-90 days credit
Import : Letter of Credit (L/C)
Telegraphic
Transfer (T/T)
Open account /DA
terms with settlement using Telegraphic Transfer (T/T)
*Associations*
============
Member of :
- Taiwan Electrical & Electronic Manufacturers' Association (TEEMA)
*Competitors*
===========
The following locally based companies supply similar range of products :
- ACNODE CORP
- FUNTACH ENTERPRISE CO LTD
- INPHONE ELECTRONICS ENTERPRISE CO LTD
- MICROELECTRONICS TECHNOLOGY INC
*Local Distribution Network*
=======================
Approximately 65% annual turnover is attributed to local sales.
*Export Markets*
=============
Approximately 35% annual turnover is attributed to export.
*Overseas Customers*
==================
Major overseas customer's include :
- TIME WARNER CABLE
- MEDIAONE
*(Subsidiaries , Joint-ventures & Affiliates)
===============================
Company Name : ACI COMMUNICATIONS
INC
Address : 23413, 66th Ave South Kent 98032 Washington
USA
Country : USA
Relationship : Subsidiary
Legal Form : Private company with limited liability
Company Type : Manufacturer
Industry : Electronic Products & Components
Company Name ACI HOLDING LLC
Address : Suite 1800, 1191 Second Ave Seattle 98101
Washington USA
Country : USA
Relationship : Subsidiary
Legal Form : Private company with limited liability
Company Type : Service
Industry : Financial Services - General
Company Name : ACI JAPAN INC
Address : 13Fl Yokohama Business Park East Tower 134
Godo-Cho Hodogaya-ku Yokohama-shi
2400005 Kanagawa
Japan
Country : Japan
Relationship : Subsidiary
Legal Form :
Private company with limited liability
Company Type : Manufacturer
Industry : Electronic Products & Components
Company Name : TWO-WAY CATV SERVICE INC
Country : Virgin Islands (British)
Relationship : Subsidiary
Legal Form : Private company with limited liability
Company Type : Service
Industry : Professional Services
*Strategic Partners & Alliances*
=========================
Partner : BROADBAND NETWORK
SYSTEMS LTD
PAYMENT
RATING : 3 OBTAINED SCORES :
70
|
Rating Key |
Implication |
Implications |
|
1 |
Scores 85–100 |
Excellent |
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2 |
Scores 75 – 84 |
Above Average |
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3 |
Scores 50 – 74 |
Average |
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4 |
Scores 35 – 49 |
Fair |
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5 |
Scores 15 – 34 |
Below Average |
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6 |
Scores 01 – 14 |
Poor |
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NR |
No Data |
No Data |
The rating indicates the payment
pattern of SC based upon our Payment Database, comments from suppliers of SC,
information from banks (if available), as well as industrial sources.
Dealings on open terms may be
possible for MODERATE amounts depending on individual judgement experience.
*Bank Details*
============
Bank name : TAIWAN COOPERATIVE
BANK
Branch : East Hsin Chung
Swift code : TACBTWTP
Balance Sheet
Currency : NTD
Denomination : In Thousands
2002 2003 2004 2005
2006
---------- ---------- ---------- ----------
----------
Current Assets 662,835 528,770 618,429
737,066 764,466
Funds & long-term investments 283,196
232,452 187,535 171,896 147,717
Property 486,740 494,884 474,742
439,012 442,088
Intangible Assets --
-- -- -- 21,540
Other Assets 16,960 57,345 101,863
137,819 141,204
Total Assets
1,449,731 1,313,451 1,382,569 1,485,793 1,517,015
Current Liabilities (Before) 353,413 211,918
298,643 573,516 611,665
(After) 374,372 245,044 311,800
573,516 --
Long-term Liabilities 283,125 260,625
286,579 230,635 220,201
Other Liabilities
2,993 16,249 21,834
15,999 13,845
Total Liabilities (Before) 639,531 488,792
607,056 820,150 845,711
(After)
660,490 521,918 620,213 820,150
--
Common stock 523,990 576,389 605,208
605,208 605,208
Capital Reserve 184,430 158,231 129,412
129,412 64,344
Retained Earnings (Before) 77,431 67,809
46,832 (65,098) 7,776
(After) 56,472 34,683
33,675 0 --
Income Statement
Currency : NTD
Denomination : In Thousands
2002 2003 2004 2005
2006
---------- ---------- ---------- ---------- ----------
Operating revenue 749,341 915,477 920,700
606,660 709,984
Gross Profit 197,874 242,443 176,209
47,808 190,340
Operating Income
95,957 107,996 47,796
(91,591) 48,058
Non-operating income 8,683 4,195
1,575 7,059 2,188
Non-operating expense
62,801 72,306 35,352
41,111 44,586
Net Income 36,720 37,537 12,149
(98,743) 7,776
Earnings (losses) per share (After)
0.70 0.65 0.20
(1.63) 0.13
*Financial Ratios*
===============
2002 2003 2004 2005 2006
---------- ---------- ---------- ----------
----------
Ratio of liabilities to Assets (%) 44.11
37.21 43.91 55.20
55.75
Ratio of long-term capital to fixed
Assets (%)
224.62 219.30 223.72 204.57
207.63
Current ratio (%) 187.55 235.66 207.08
128.52 124.98
Quick ratio (%) 129.83 148.25 137.06
92.27 88.54
Interest coverage 2.51
4.42 2.30 (5.01) 1.33
Turnover of receivable (times) 2.20 3.78
4.00 2.11 2.04
Average collection period of
receivable
166 97 91 173
179
Turnover of inventories (times) 2.53 3.50
3.55 2.76 2.47
Turnover of expense (times) 3.61 7.02
8.39 4.73 3.36
Average days of sales 144 104
103 132 148
Turnover of fixed assets (times) 1.54
1.85 1.90 1.35 1.64
Turnover of total assets (times) 0.52
0.70 0.68 0.42 0.47
Return on total assets (%) 3.90 3.25
1.50 (5.79) 1.38
Return on shareholder's Equity (%) 4.64
4.59 1.52 (13.70) 1.16
Operating Income 9.28 18.31 29.12
(15.13) 7.94
Net Income before tax 3.01 7.98
2.32 (20.76) 0.94
Profit margin (%) 4.90 4.10 1.32
(16.28) 1.1
Retroactive 0.70 0.65 0.20 (1.63) 0.13
Cash flows ratio (%) 38.58 90.61
6.56 (8.93) (1.26)
Cash flows adequacy (%) 15.46 34.44
31.95 112.69 72.48
Cash reinvestment ratio (%) 11.74 17.22
(0.82) (6.28) (0.82)
Degree of operating leverage 1.29 1.26
0.59 0.47 1.88
Degree of financial leverage 1.41 1.12
1.07 0.81 1.56
Int´l Trade Activity (Currency: U.S. $'s)
=============================
Year Imports Exports Total
1999 $6,000,000.00 $5,900,000.00 $11,900,000.00
2002 n/a $7,538,641.85
$7,538,641.85
2003 n/a $9,239,243.08
$9,239,243.08
2004 $3,862,272.00 $10,704,463.01 $14,566,735.01
2005 $2,100,000.00 $7,610,000.00 $9,710,000.00
2006 $2,560,000.00 $8,230,000.00 $10,790,000.00
*Financial Summary (Currency: U.S. $'s)
=============================
Year Sales Assets Net Income
2002 $21,538,976.72 $41,670,911.18 $1,055,475.71
2003 $26,397,837.37 $37,873,442.91
$1,082,381.78
2004 $27,690,225.56 $41,581,022.56 $365,383.46
2005 $19,167,772.51 $46,944,486.57 -$3,119,842.02
2006 $21,462,636.03 $45,858,978.23 $235,066.51
SC is considered medium-sized in its line with a development history of
15 years. Taking into consideration of SC’s general performance, a credit line
up to USD 800,000 appears to be within SC’s capacities.
Attached: trade references
SIC PRODUCT CLASSIFICATION & ACTIVITY
Activity Code Product/Service Description
Exporting 3357 Nonferrous
metal wire and cable, drawn and insulated
Exporting 5065 Electronic
Parts/Equip, NEC
Manufacturing 3357 Nonferrous
metal wire and cable, drawn and insulated
Manufacturing 5065 Electronic
Parts/Equip, NEC
HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY
Activity Code Product/Service Description
Exporting 8473 Parts
etc for typewriters & other office machines computer accessories
Exporting 8517501000 Modems (modulator-demodulator apparatus) of a kind used with
data processing
machines
of heading 8471
Exporting 8518 Microphones;
loudspeakers; sound amplifier etc, parts
Exporting 8525 Trans
apparatus for radiotelephony etc; tv cameras cordless telephones
Exporting 8528 Television
receivers (incl monitors & proj receivers)
Exporting 8543 Electrical
mach etc, with ind functions, parts
Exporting 8547 Insulating
fittings for assembly
Exporting 8548 Electrical
parts of machinery
Exporting 9015 Survey,
hydrogr, meteoro etc inst; rangef etc, parts
Exporting 9015800000 Surveying instruments and appliances
DETAILED PRODUCT CLASSIFICATION & ACTIVITY
Activity Product/Service Description
Manufacturer Communications equipment
Manufacturer Insulating
non-ferrous wire
Manufacturer CATV
amplifiers
Manufacturer CATV optical
transmitter
Manufacturer Optical
equipment
Manufacturer Amplifiers
Manufacturer CCTV systems
Manufacturer Network
monitoring
Manufacturer Optical
transmitter
Manufacturer Set top boxes
INTERNATIONAL TRADE : ACTIVITY & MARKETS
Exporting to Asia
Exporting to Canada
Exporting to Europe
Exporting to France
Exporting to Hong Kong
Exporting to Hungary
Exporting to India
Exporting to Ireland
Exporting to Japan
Exporting to Mexico
Exporting to Netherlands
Exporting to North America
Exporting to Philippines
Exporting to South Korea
Exporting to Thailand
Exporting to Turkey
Exporting to USA
Exporting to Vietnam
Importing from Asia
Importing from Canada
Importing from China
Importing from Europe
Importing from Germany
Importing from Hong Kong
Importing from Indonesia
Importing from Israel
Importing from Japan
Importing from Malaysia
Importing from North America
Importing from Philippines
Importing from Singapore
Importing from South Korea
Importing from Thailand
Importing from USA
Importing from United Kingdom
RATING
EXPLANATIONS
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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. |
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 |
|
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 and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)