MIRA
INFORM REPORT
|
Report Date : |
16.10.2007 |
IDENTIFICATION DETAILS
|
Name : |
INNOLUX DISPLAY CORP |
|
|
|
|
Registered Office : |
Science Based Industrial Park |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
January 14, 2003 |
|
|
|
|
Com. Reg. No.: |
12800225 |
|
|
|
|
Legal Form : |
Public Listed Company |
|
|
|
|
Line of Business : |
Imports of components related to LCD systems. Manufacturing of various types of LCD, OLED and related products. Selling and distribution to local and international markets. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
Up To US$ 5,000,000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
name &
address
INNOLUX DISPLAY CORP
SCIENCE BASED INDUSTRIAL PARK 160 KO HSUEH RD
CHU-NAN CHEN MIAOLI HSIEN 350,
TEL : 886-3-7586000
FAX : 886-3-7584622
EXECUTIVE SUMMARY
INCORPORATION DATE :
JANUARY 14, 2003
REGISTRATION NO. :
12800225
LEGAL FORM :
PUBLIC LISTED COMPANY
CHIEF EXECUTIVE :
MR. HSING-CHIEN TUAN (CHAIRMAN)
STAFF STRENGTH :
2,858
CAPITAL :
US$ 995,775,498
BUSINESS LINE :
MANUFACTURER
TURNOVER :
TWD105,181,739,000 (AS OF DEC. 31, 2006)
EQUITIES :
TWD 35,436,328,000 (AS OF DEC. 31, 2006)
PAYMENT :
ABOVE AVERAGE
RECOMM.
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
TWD 32.665 = 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 –
*Company History*
===============
24 October, 2006 - Became listed
on Taiwan Stock Exchange with symbol INNOLUX and code 3481.
*Company Registration*
===================
License number : 12800225
Date issued : 14 January,
2003
Issuing authority : Ministry of
Economic Affairs (MOEA)
License number : 12800317
Date issued : 19 June,
2003
Issuing authority : Ministry of
Economic Affairs (MOEA)
Type of license : Miaoli
Branch License
*Licenses & Permits*
================
License number : 9967762800
Date issued : 28 Jun,
2007
Issuing authority : Industrial
Development Bureau, MOEA
Type of license : Factory
license
License number :
Date issued : 11 Nov,2004
Issuing authority : Industrial
Development Bureau, MOEA
Type of license : Factory
license
License number : 95B0005700
Date issued : 11 Nov, 2004
Issuing authority : Industrial
Development Bureau, MOEA
Type of license : Factory
license
*Capital Details*
=============
Initial registered capital : TWD
350,000,000.00
Capital increases as follow:
Date
Increase (TWD)
-------
-----------------------
May 2003 1,000,000,000.00
October 2003
3,000,000,000.00
April 2004
9,000,000,000.00
September 2004
15,000,000,000.00
- 25,000,000,000.00
- 33,000,000,000.00
Initial paid-up capital : TWD
21,000,000,000.00
Paid-up capital increase : TWD 24,421,550,220.00
*Office & Facilities*
================
Size : 4,600
sq. ft. (Approx.)
Location : Miaoli Hsien
Property status : Rented
Type of building : Commercial
and Industrial building
Comment : Serves as
office and factory.
Other e-mail :
thomas.hsu@innolux.com / walter.chen@innolux.com
*Corporate & Organization Structure*
=============================
A large-sized company mainly operated and managed by an experienced team
of professionals.
*Factories, Size & Locations*
======================
The firm maintains three (3) manufacturing premises as listed below:
Size : 3,800
sq. ft. (Approx.)
Location : Miaoli
Hsien
Property status : Rented
Type of building : Commercial
and Industrial building
Size : 4,300 sq. ft. (Approx.)
Location : Miaoli
Hsien
Property status : Rented
Type of building : Commercial
and Industrial building
*Long & Short Term Investment*
=========================
Type of investment : Production plant
Date of investment : N/A
Investment amount : NTD 20 billion
Other details : The
company will invest in liquid crystal display production plants
*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 745
2005 70
2006 35
*Sales Ranking*
============
Generally regarded as one of the Top 500 Companies in terms of sales.
Details of rank as follows :
Year Rank
------ ------
2006 19
*Reputation*
==========
Reference checking for the purpose of establishing the firm's reputation
within the respective industry failed to reveal any negative information.
Web
site: www.innolux.com.tw The design is professional and the content
is well organized. At present it is in Chinese version.
Email : sales@innolux.com.tw
For the past two years there is no record of litigation.
*Major Shareholders*
=================
Shareholders' Name No. of
Shares
--------------------------
------------------
Ms. Ting-chen Hsu
135,823,900
Mr. Hsing-chien Tuan 12,636,267
Mr. Hsiu-chuan Huang 85,462,369
Mr. Min-chih Cho 21,212,736
Mr. Yao-chang Tseng
0
Mr. Kuo-hung Hsu
0
Mr. Chih-cheng Chou
0
Mr. Ying-ta Liu 0
*Company Directors*
=================
Name : Mr. Ing-dar Liu
Nationality :
*COMPANY MANAGEMENT*
==========================
Name Nationality
Job Description Dept. / Division
Ms. Feng-shu Chang Syrian
Manager Sales
Mr. Cheng-hua Lao Taiwanese
Assistant Vice President -
Mr. Cheng-hui Lin Taiwanese
Assistant Vice President -
Mr. Chih-hung Hsiao Taiwanese
Assistant Vice President -
Mr. Chih-kang Sun Taiwanese
Assistant Vice President -
Mr. Hsien-ying Chou Taiwanese
Assistant Vice President -
Mr. Wen-chih Yang Taiwanese
Assistant Vice President -
Mr. Hsing-chien Tuan Taiwanese
General Manager -
Mr. Cheng-hui Chao Taiwanese
Vice General Manager -
Mr. Chia-cheng Hsu Taiwanese
Vice General Manager -
Mr. Shih-chung Hsu Taiwanese
Vice General Manager -
Mr. Yuan-ching Wen Taiwanese
Vice General Manager -
Ms. Ting-chen Hsu Taiwanese
Vice General Manager -
*Key Personnel*
=============
Mr. Hsing-chien Tuan
Founder :
Co-founder
Resident status :
Work experience : More than 10
years.
Responsibilities : Handles the
daily operation of the firm including all financial and legal matters
*Main Products & Services*
======================
Specializes in the following areas of work:
1. Imports of components related to LCD systems.
2. Manufacturing of various types of LCD, OLED and related products.
3. Selling and distribution to local and international markets.
Products : Activated carbon
Adhesives
Air
compressors
Air
humidifiers
Air-conditioner
parts
*Brand*
======
Brand InnoLux
*Payment Terms*
==============
Sales
------
Local : Cash
30-60 days credit
Export : Letter of Credit (L/C)
Telegraphic Transfer
(T/T)
Purchases
--------------
Local : Cash
30-90 days credit
Import : Letter of Credit (L/C)
Telegraphic Transfer
(T/T)
*Competitors*
===========
The following locally based companies supply similar range of products :
- AU OPTRONICS CORP
- QUANTA COMPUTER INC
- CHI MEI OPTOELECTRONICS CORP
- FUNAI INFORMATION & TECHNOLOGY CORP
- HANNSTAR DISPLAY CORP
*Local Distribution Network*
=======================
Approximately 87% of the annual turnover is attributed to local sales.
*Domestic Suppliers*
=================
- SINTEK PHOTRONIC CORP
*Export Markets*
=============
Approximately 13% annual turnover is attributed to export.
Breakdown of export as per country:
Country % of Exports
------------ --------------
Other 8
*International Trade Ranking*
=======================
The firm has been ranked among
Details of rank are as follows :
Year Rank
------ ----------
2004 51
2005 53
*LOCAL BRANCHES & MANAGEMENT*
===================================
Branch : INNOLUX DISPLAY CORP (BRANCH 1) - MIAOLI HSIEN
Branch Address : 2Fl,
Branch Fax : [+886] 3-7586060
Branch Employees : 124
Branch : INNOLUX DISPLAY CORP (BRANCH 2) - MIAOLI HSIEN
Branch Address : 2Fl,
Branch Fax : [+886] 3-7586600
Branch Employees : 90
*(Subsidiaries , Joint-ventures & Affiliates)
=================================
Company Name : INNOLUX CORP LTD
Address :
Country :
Relationship : Subsidiary
Legal Form : Private company with limited liability
Company Type : Trader
Industry : Electronic Products & Components
Company Name : INNOLUX DISPLAY CORP
Address :
Country :
Relationship : Affiliate
Legal Form : Private company with limited liability
Company Type : Manufacturer
Industry : Electronic Products & Components
Company Name : INNOLUX HOLDING LTD
Country :
Relationship : Subsidiary
Legal Form : Private company with limited liability
Company Type : Service
Industry : Financial Services - General
Company Name : LAKERS TRADING LTD
Address : 1Fl NPF Bldg Offshore
Country :
Relationship : Affiliate
Legal Form : Offshore Company - Private Limited
Industry : Not Applicable
Company Name : ROCKETS HOLDING LTD
Country :
Relationship : Affiliate
Legal Form : Private company with limited liability
Company Type : Service
Industry : Financial Services - General
Company Name : SRANFORD DEVELOPMENTS LTD
Address : Offshore Group Chambers
Country :
Relationship : Subsidiary
Legal Form : Private company with limited liability
Company Type : Trader
Industry : Electronic Products & Components
*Branches*
=========
Branch 1
-----------
Comment : Also occupies the 3rd & 5th floor.
Branch 2
------------
Comment : Also occupies the 3th floor.
*Strategic Partners & Alliances*
=========================
Group name : HON
HAI GROUP
Founder : Mr.
Terry Tai-ming Kuo
Management center :
PAYMENT RATING : 2 OBTAINED SCORES : 80
|
Implication |
Implications |
|
|
1 |
Scores 85–100 |
Excellent |
|
2 |
Scores 75 – 84 |
Above Average |
|
3 |
Scores 50 – 74 |
Average |
|
4 |
Scores 35 – 49 |
Fair |
|
5 |
Scores 15 – 34 |
Below Average |
|
6 |
Scores 01 – 14 |
Poor |
|
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
FAIRLY LARGE amounts depending on individual judgement experience.
*Bank Details*
============
Bank Name : CHIAO TUNG BANK CO LTD
Branch : Chungcheng Dist,
Branch Address :
SWIFT Code : BKCMTWTP
Bank Name : HUA NAN COMMERCIAL BANK LTD
Branch : Chungcheng Dist,
Branch Address :
SWIFT Code : HNBKTWTP
Balance Sheet
Currency : TWD
Denomination : In Thousands
2003 2004 2005 2006
-------------------
-------------------
-------------------
-----------------
Current Assets 1,885,667.00 3,708,832.00 27,801,039.00 41,436,838.00
Funds & long-term investments - 634,207.00 1,737,932.00 2,077,496.00
Property
1,477,687.00
28,466,713.00
41,572,258.00 40,512,573.00
Other Assets
116,942.00
530,340.00
832,623.00 919,833.00
Total Assets
3,480,296.00
33,340,092.00
71,943,852.00 84,946,740.00
Current Liabilities (Before) 603,955.00 2,258,616.00 21,014,079.00 32,054,940.00
(After)
603,955.00
2,258,616.00 21,014,079.00 35,054,940.00
Long-term Liabilities - 15,858,360.00 24,520,000.00 17,455,200.00
Other Liabilities
42,548.00
9,090.00
2,244,689.00
272.00
Total Liabilities (Before) 646,503.00 18,126,066.00 47,778,768.00 49,510,412.00
(After)
646,503.00
18,126,066.00 47,778,768.00 49,510,412.00
Common stock 3,000,000.00 15,000,000.00 21,066,240.00 23,260,560.00
Capital Reserve
- 1,200,000.00 3,600,473.00 9,801,334.00
Retained Earnings (Before) (166,663.00) (939,617.00) (533,231.00) 2,292,020.00
(After) (166,663.00) (939,617.00) (533,231.00) 2,292,020.00
Income Statement
Currency : TWD
Denomination : In Thousands
2003 2004 2005 2006
------------------- ------------------- ------------------- -------------------
Operating revenue 638,274.00 4,268,871.00 51,397,647.00 105,181,739.00
Gross Profit
88,765.00 (61,211.00) 2,449,641.00 7,588,717.00
Operating Income (197,708.00) (1,180,236.00) 767,778.00 4,462,099.00
Non-operating income 6,075.00 162,085.00 158,115.00 167,717.00
Non-operating expense (37,349.00) (54,787.00) (609,507.00) (1,587,067.00)
Net Income
(166,663.00) (772,954.00) 406,386.00 2,825,251.00
Earnings (losses) per share
(After) (1.30) (87.00) 0.21 1.31
*Financial Ratios*
==============
2003 2004 2005 2006
------------------- ------------------- ------------------- -------------------
Ratio of liabilities to Assets % 18.58 54.37 66.41 58.28
Ratio of long-term
capital to fixed Assets% 191.77 109.15 117.11 130.56
Current ratio%
31.22 164.21 132.30 129.27
Quick ratio%
244.99
106.14 67.41 81.88
Interest coverage - - 82.38 3.86
Turnover of receivable (times) - 5.53 8.82 7.67
Average collection period of receivable - 66.00 41.00 48.00
Turnover of inventories (times) - 5.41 6.77 6.91
Turnover of expense (times) - 4.48 8.14 53.00
Average days of sales - 67.00 54.00 53.00
Turnover of fixed assets (times) 0.43 0.15 1.47 2.56
Turnover of total assets (times) 0.18 0.13 0.98 1.34
Return on total assets% - (4.20) 1.16 4.59
Return on shareholder's Equity% - (8.57) 2.06 9.48
Operating Income (6.59) (7.87) 3.65 19.30
Net Income before tax (7.63) (7.15) 1.50 13.16
Profit margin%
(26.11)
(18.11)
0.79 2.69
Retroactive
(1.30) (0.87) 0.21 1.31
Cash flows ratio% - - - 27.00
Cash reinvestment ratio% - - - 15.00
Degree of operating leverage - - 8.87 3.61
Degree of financial leverage 1.00 1.00 1.56 1.30
*Financial History*
===============
March 2004 - Reported that the
company signed a NTD 20 billion loan to make more thin-film transistor liquid
crystal display monitors.
- Paid a
margin of 86.5 basis points more than the 90-day commercial paper secondary
market, or
trading,
rate, currently 1%.
*Loan & Facilities*
===============
Loan facility : NTD 20 billion
Lenders : CHIAO TUNG BANK
CO LTD and 7 other lenders
Date of loan : 10 March, 2004
*Accountants*
============
PRICEWATERHOUSE COOPERS represented by Ming-ling Hsueh and Yung-chien
Hsu
*Financial Summary (Currency:
===============================
Year Sales Assets Net Income
2003 US$ 18,404,671.28 US$
100,354,555.94 -US$ 4,805,738.18
2004 US$ 128,387,097.74 US$
1,002,709,533.83 -US$ 23,246,736.84
2005 US$ 1,623,938,293.84 US$
2,273,107,488.15 US$ 12,840,000.00
2006 US$ 3,179,617,261.19 US$
2,567,918,379.69 US$ 85,406,620.31
*Int´l Trade Activity (Currency:
===============================
Year Imports Exports Total
2003 US$ 600,000.00 US$ 50,000.00 US$ 650,000.00
2004 US$ 810,526,315.79 US$ 2,464,421.98 US$ 812,990,737.77
2005 US$ 351,974,723.54 US$ 380,094,786.73 US$ 732,069,510.27
2006 US$ 219,400,846.43 US$ 425,030,229.75 US$ 644,431,076.18
SC is considered medium-sized in its line with stable financial
conditions. It is considered a credit line up to US$ 5,000,000 appears to be
within SC’s capacities.
Attached:
trade references
SIC PRODUCT CLASSIFICATION & ACTIVITY
Activity Code Product/Service Description
Exporting 5065 Electronic
Parts/Equip, NEC
Importing 2800 Chemicals
and Allied Products
Importing 2821 Plastics
materials and resins
Importing 2891 Adhesives
and sealants
Importing 3089 Plastics
products
Importing 3231 Products
of purchased glass
Importing 3317 Steel
Pipe & Tubes
Importing 3321 Cast
iron products, not malleable
Importing 3365 Aluminum
foundries
Importing 3412 Metal
shipping barrels, drums, kegs, and pails
HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY
Activity Code Product/Service Description
Exporting 3920990000 Plates,
foil, noncellular, not reinforced, laminated, combined, of other plastics
Exporting 8531900000 Parts
of electric sound or visual signaling apparatus
Exporting 8534000020 Printed
circuits having a base of plastic impregnated with glass consisting of 3 or
more
layers of conducting materials
Exporting 8534000060 Printed
circuits
Exporting 8542 Electronic
integrated circuits & microassembl, parts
Exporting 9001200000 Sheets
and plates of polarizing material
Exporting 9031800060 Equipment
for testing electrical characteristics of internal combustion engines
Importing 2804300000 Nitrogen
Importing 2811210000 Carbon
dioxide
Importing 3506990000 Other
products suitable for use as adhesives, put up for retail sale as adhesives,
not
exceeding a net weight of
DETAILED PRODUCT CLASSIFICATION & ACTIVITY
Activity Product/Service Description
Importer Carbon
dioxide
Importer Recording
media
Importer Instrument
& measuring devices
Importer Photographic
chemicals
Importer Non-woven glass
fiber
Importer Non-wired
glass
Importer Float
glass
Importer Plastic
buckets
Importer Plastic
boxes
Importer Ion exchange
resins
INTERNATIONAL TRADE : ACTIVITY & MARKETS
Exporting to
Exporting to
Exporting to
Exporting to
Exporting to
Exporting to
Exporting to
Exporting to
Exporting to
Exporting to
Exporting to
Exporting to
Importing from
Importing from
Importing from
Importing from
Importing from
Importing from
Importing from
Importing from
Importing from
Importing from
Importing from
Importing from
Importing from
Importing from
Importing from
Importing from
Importing from
Importing from
Importing from
Importing from
Importing from
Importing from
Importing from
Importing from
Importing from
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. |
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%)