MIRA INFORM REPORT

 

 

Report Date :

12.10.2012

 

IDENTIFICATION DETAILS

 

Name :

UNITED ORTHOPEDIC CORP.

 

 

Registered Office :

57, Park Ave. 2, Science Park, Hsinchu, Taiwan R.O.C.

 

 

Country :

Taiwan

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

05.03.1993

 

 

Com. Reg. No.:

22099982

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and sales of joint prosthesis, etc

 

 

No. of Employees :

200

 

 

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 :

No complaints

Litigation :

Clear

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Taiwan

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

TAIWAN - ECONOMIC OVERVIEW

 

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. In keeping with this trend, some large, state-owned banks and industrial firms have been privatized. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. In 2009, Taiwan's GDP contracted 1.9%, due primarily to a 20% year-on-year decline in exports. In 2010 GDP grew 10.9%, as exports returned to the level of previous years, and in 2011, grew 5.2%. However, 2012 growth will likely be less, according to most forecasters, because of softening global demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, but so far Taiwan has been excluded from this greater economic integration largely because of its diplomatic status with the exception of the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010. The MA administration has said that the ECFA will serve as a stepping stone toward trade pacts with other regional partners, and negotiations on a deal with Singapore began this year. Follow-on components of ECFA, including deals on trade in goods, services, and investment, have yet to be completed. 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 accounting for 10.9% of the island's total population as of 2011. The island runs a large trade surplus, and its foreign reserves are the world's fourth largest, behind China, Japan, and Russia. Since 2005 China has overtaken 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. Three financial memorandums of understanding, covering banking, securities, and insurance, took effect in mid-January 2010, opening the island to greater investments from the mainland's financial firms and institutional investors, and providing new opportunities for Taiwan financial firms to operate in China. Closer economic links with the mainland bring greater opportunities for the Taiwan economy, but also poses new challenges as the island becomes more economically dependent on China while political differences remain unresolved

Source : CIA


Contact Points

 

Company Name:

United Orthopedic Corp.

Former Name:

United Orthopedic Corporation

Supplied Name:

UNITED ORTHOPEDIC

Trading Address:

12F, No.80, Sec. 1,Chenggong Road., Yonghe Dist., New Taipei City 23452, Taiwan

Supplied Address:

Taiwan

Telephone Number:

+886-2-2929-4567

Fax Number:

+886-2-2922-4567

E-mail:

service@uoc.com.tw

Notes: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

United Orthopedic Corp.

Registered Address:

57, Park Ave. 2, Science Park, Hsinchu, Taiwan R.O.C.

Date of Foundation:

1993-3-5

Registration Number:

22099982

Registry:

Science and Industry Zone Administration Bureau

Registered Capital:

NTD 600,000,000 (USD 20,460,000)

(As of 2012.10, 1 NTD = 0.0341 USD)

Paid-up Capital:

NTD 463,625,000 (USD 15,809,612.50)

Legal Representatives:

Yansheng Lin

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sales of joint prosthesis, etc

Staff:

About 200 Employees

Listed at Stock Exchange:

Yes; Stock Symbol: 4129

Date of Last Annual Return:

2011-7-22

 

 

History

 

Subject was incorporated on 1993-3-5 with registered number 22099982 as Joint Stock Company in Taiwan.

 

Change of Name

Former Name

United Orthopedic Corporation

Current Name

United Orthopedic Corp.

Awards

Year

Awards

2009

Blue chip importer and exporter

2010

Blue chip importer and exporter

 

Standard of Blue chip importer and exporter

Unit: USD

Year

Amount

2009

15,000,000

2010

20,000,000

 

 

Shareholders

 

           

Name

Subscription Shares

Yansheng Lin

1,716,000

Chunsheng Lin

1,425,000

Haiman Hao

583,260

Chuhua Wu

660,000

Qi Yi Investment Corporation (Literal Translation)

794,000

Zongyuan Xu

372,000

 

The information above is that of subject’s major shareholders.

 

 


Subsidiaries & Branches

 

Related Companies

1

Name

UOC USA Inc.

Address

20 Fairbanks Suite 173 Irvine, CA 92618

Telephone Number

+949-328-3366

Fax Number

+949-328-3367

2

Name

United Medical Instrument Co., Ltd.

Address

Room 509-510, 10th Building Daning International Commercial Square, No.1988 Gonghe Xin Road, Zhabei District, Shanghai City, China

Telephone Number

+86-21-3387-1088

Fax Number

+86-21-3387-1089

 

Plants

1

Name

Hsinchu Plant

Address

57, Park Ave. 2, Science Park, Hsinchu, Taiwan R.O.C.

Telephone Number

+886-3-577-3351

Fax Number

+886-3-577-7156

2

Name

Kaohsiung Plant

Address

No. 16, Luke 1st Rd., Luzhu Dist., Kaohsiung City 82151, Taiwan

Telephone Number

+886-7-695-5850

Fax Number

+886-7-695-5055

3

Name

Xi An Plant

Address

No. 32 Daxing West Road, Xi An City, Shanxi Province, China

Telephone Number

+86-29-8441-7129

Fax Number

+86-29-8441-7088

 

Personnel Information

 

Core Management

 

Directors

1

Name

Yansheng Lin

Position

Board Director

Date of Appointment

2008-6-30

2

Name

Chunsheng Lin

Position

Director

3

Name

Haiman Hao

Position

Director

4

Name

Junxian Li

Position

Independent Director

5

Name

Yuecheng Wang

Position

Independent Director

6

Name

Chuhua Wu

Position

Director

7

Name

Qi Yi Investment Corporation (Literal Translation)

Position

Director

8

Name

Zongyuan Xu

Position

Supervisor

9

Name

Jinxiang Wang

Position

Supervisor

10

Name

Liru Chen

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 200 Employees

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

12F, No.80, Sec. 1,Chenggong Road., Yonghe Dist., New Taipei City 23452, Taiwan

 

Production Information

 

l  Subject is engaged in manufacturing of joint prosthesis, etc.

l  Subject has factories in Taiwan and mainland China for production and Xi An plant in mainland China is about 14,000 square meters.

 

Purchase Information

 

l  The registered activities of subject:

Business Code

Details

--

Research, developing, manufacturing and sales following products: 1. Artificial implant materials, joint prosthesis, artificial bone plate, nail, and bone spicule used by orthopedics department 2. Surgical medical equipment and manufacturing equipment 3. Special metals and plastic material

--

Import and export of above products

 

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

 

Sales Information

 

l  Subject is engaged in sales of joint prosthesis, etc.

l  Subject’s sales regions include Taiwan, mainland China, Europe, USA, South Africa, South Korea and Southeast Asia, etc.

l  Subject obtained the certifications of ISO 9001 and ISO 13485, etc.

l  It is introduced that subject can provide OEM and ODM services.

 

Major types sold

Type

Detail

HIP

U2 Hip System

U1 Hip System

U-Motion Ceramic System

Instrument

U2 Revisin Hip

UTF

Delta Head

Knee

U2 Knee System

UKnee System

Instrument

U2 Revision PSA System

MBC System

Oncology

Ustar System

Trauma

Unify System

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase (Taiwan and Mainland, China)

Product

Payment Terms

Proportion

Components and raw materials

COD, CBD, etc

100%

 

Foreign Purchase

Product

Payment Terms

Proportion

Components and raw materials

CBD, etc

100%

 

Sales

 

Domestic Markets (Taiwan and Mainland, China)

Product

Sales Terms

Proportion

Joint prosthesis, etc.

COD, CBD, etc

100%

 

Export

Product

Sales Terms

Proportion

Joint prosthesis, etc.

CBD, etc

100%

 

 

Balance Sheet

 

Unit: NTD/000

Date

2012-6-30

2011-6-30

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

66,896.00

130,461.00

Notes receivable - net

740.00

906.00

Accounts receivable - net

138,076.00

107,767.00

Accounts receivable–related parties - net

127,922.00

88,023.00

Inventories

189,141.00

183,397.00

Other current assets

13,682.00

19,451.00

Current assets

536,457.00

530,005.00

Funds and Investments

 

 

Income from long-term equity investments under the equity method

121,885.00

121,411.00

Investments

121,885.00

121,411.00

Funds and investments

121,885.00

121,411.00

Fixed Assets

 

 

Cost

 

 

Land

41,855.00

27,182.00

Buildings and structures

91,299.00

68,405.00

Machinery and equipment

276,752.00

248,411.00

Mold equipment

10,172.00

3,135.00

Computer and communication equipment

8,070.00

7,084.00

Lease improved

9,330.00

4,872.00

Other facilities

31,852.00

27,923.00

Revaluation increment

0.00

0.00

Cost and revaluation increment

469,330.00

387,012.00

Accumulated depreciation

-151,139.00

-129,417.00

Construction in process and prepayment for equipments

58,836.00

14,292.00

Fixed assets

377,027.00

271,887.00

Intangible Assets

 

 

Deferred pension cost

237.00

0.00

Other intangible assets

19,905.00

14,574.00

Intangible assets

20,142.00

14,574.00

Other Assets

 

 

Deferred charges

50,501.00

48,844.00

Deferred income tax assets –Non Current

1,477.00

8,831.00

Other assets-other

28,673.00

27,616.00

Other assets

80,651.00

85,291.00

Assets

1,136,162.00

1,023,168.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

Short-term borrowings

20,000.00

0.00

Changes in the fair value of the financial liability on profit and loss-flow

0.00

42.00

Notes payable

0.00

1,947.00

Accounts payable

53,724.00

50,630.00

Accounts payable-related parties

6,855.00

8,511.00

Income tax payable

8,094.00

3,421.00

Accrued expenses

76,291.00

65,202.00

Other payables

46,362.00

31,549.00

Long-Term Liabilities -Current Portion

55,148.00

30,260.00

Other current liabilities

22,152.00

25,277.00

Current liabilities

288,626.00

216,839.00

Long term Liabilities

 

 

Long-term borrowings

148,904.00

150,547.00

Long-term liabilities

148,904.00

150,547.00

Reserves

 

 

Other Liabilities

 

 

Pension reserve / accrued pension liability

18,416.00

14,717.00

Other liabilities - other

41,062.00

19,875.00

Other liabilities

59,478.00

34,592.00

Liabilities

497,008.00

401,978.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

463,625.00

463,625.00

Capital Surplus

 

 

Capital surplus - additional paid-in capital

118,178.00

118,178.00

Capital surplus

118,178.00

118,178.00

Retained Earnings

 

 

Legal reserve

14,042.00

8,246.00

Unappropriated retained earnings

37,313.00

29,319.00

Retained earnings

51,355.00

37,565.00

Stockholders' Equity and Other adjustment

 

 

Cumulative translation adjustments

9,429.00

1,822.00

Net loss not recognized as pension cost

-3,433.00

0.00

Stockholders' equity and other adjustment

5,996.00

1,822.00

Stockholders’ equity

639,154.00

(USD 21,795,151.40)

621,190.00

(USD 21,182,579)

Number of treasury stock acquired by the company and subsidiaries (unit: share)

0.00

0.00

Equivalent Shares of Outstandings of Advance Receipts for Common Stock (Unit: Share)

0.00

0.00

(As of 2012.10, 1 NTD = 0.0341 USD)

 

 

Profit and Loss Account

 

Unit: NTD/000

Date

2012-1-1~2012-6-30

2011-1-1~2011-6-30

Sales

404,309.00

(USD 13,786,936.90)

347,408.00

(USD 11,846,612.80)

Sales returns

5,921.00

2,230.00

Sales discounts and allowances

1,887.00

3,962.00

Sales

396,501.00

341,216.00

Operating income

396,501.00

341,216.00

Operating costs

176,985.00

181,103.00

Gross profit (loss) from operations

219,516.00

160,113.00

Unrealized gain from inter-affiliate accounts.

38,829.00

19,731.00

Realized gain from inter-affiliate accounts.

23,199.00

17,699.00

Selling expense

64,880.00

55,172.00

General and administrative expenses

38,887.00

34,558.00

Research and development expenses

56,975.00

47,003.00

Operating expenses

160,742.00

136,733.00

Operating income (loss)

43,144.00

21,348.00

Non-Operating Income

 

 

Interest income

152.00

149.00

Investment income

0.00

11,012.00

Investment profit recognized under equity method

0.00

11,012.00

Gains on disposal of fixed assets

0.00

66.00

Foreign exchange gains

0.00

2,198.00

Miscellaneous income

5,497.00

4,334.00

Non-operating revenues and gains

5,649.00

17,759.00

Non-Operating Expenses

 

 

Interest expense

2,024.00

1,440.00

Investment loss recognized under equity method

1,170.00

0.00

Investment loss

1,170.00

0.00

Loss on disposal of fixed assets

53.00

0.00

Loss on exchange

2,114.00

0.00

Loss on financial liability evaluation

7.00

42.00

Miscellaneous disbursements

0.00

6.00

Non-operating expenses and losses

5,368.00

1,488.00

Income from continuing operations before income tax

43,425.00

37,619.00

Income tax expense (benefit)

11,914.00

8,300.00

Income from continuing operations

31,511.00

29,319.00

Net income (loss)

31,511.00

(USD 1,074,525.10)

29,319.00

(USD 999,777.90)

Primary Earnings per Share

 

 

Primary Earnings per Share

0.68

0.63

Diluted earnings per share

 

 

(As of 2012.10, 1 NTD = 0.0341 USD)

 

 

Cash Flows

 

Unit: NTD/000

Date

2012-1-1~2012-6-30

2011-1-1~2011-6-30

Net Income (Loss)

31,511

29,319

Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities

 

 

Depreciation Expense

19,221

13,353

Amortization Expense

6,357

5,550

Investment Loss (Profit) Recognized under Equity Method

1,170

-11,012

Loss (Gain) on Disposal of Property, Plant and Equipment

53

-66

Changes in Operating Assets and Liabilities

 

 

Decrease (Increase) in Notes Receivable

-35

980

Decrease (Increase) in Accounts Receivable

-8,081

4,073

Increase (Decrease) in-Related Parities- Accounts Receivable

-22,224

-23,358

Decrease (Increase) in Inventories

-3,348

-7,380

Decrease (Increase) in Other Current Asset

4,451

10,211

Decrease (Increase) in Other Financial Asset

7

0

Decrease (Increase) in Deferred Income Tax Assets

4,134

3,790

Increase (Decrease) in Notes Payable

-5,421

1,314

Increase (Decrease) in Accounts Payable

-3,152

9,318

Increase (Decrease) in-Related Parities- Accounts Payable

-1,060

-345

Increase (Decrease) in Income Tax Payable

1,180

-1,908

Increase (Decrease) in Accrued Expenses

-9,368

-7,340

Increase (Decrease) in Other Financial Liabilities

0

42

Increase (Decrease) in Other Current Liabilities

8,683

401

Increase (Decrease) in Accrued Pension Liabilities

-642

849

Increase (Decrease) in Deffered Credit

15,630

2,032

Increase (Decrease) in Other Operating Liabilities

-2,167

-67

Net Cash Provided by (Used in) Operating Activities

36,899

29,756

Cash Flows from Investing Activities

 

 

Purchase of Property, Plant and Equipment

-77,595

-47,540

Proceeds from Disposal of Property, Plant and Equipment

0

95

Decrease (Increase) in Refundable Deposits

-427

75

Increase in Deferred Charges

-8,173

-6,128

Decrease (Increase) in Other Account Receivable- Related Parities

0

0

Decrease (Increase) in Restricted Assets

-15

-3,802

Purchase intangible assets

-3,676

-9,974

Net Cash Provided by (Used in) Investing Activities

-89,886

-67,274

Cash Flows from Financing Activities

 

 

Increase (Decrease) in Short-term Loans

20,000

-20,000

Borrow Long-term Loan

 

7,997

53,545

Net Cash Provided by (Used in) Financing Activities

27,997

33,545

Net Increase (Decrease) in Cash and Cash Equivalents

-24,990

-3,973

Cash and Cash Equivalents, Beginning of year

91,886

134,434

Cash and Cash Equivalents, End of year

66,896

130,461

Supplemental Cash Flow Information

 

 

Interest Paid- Excluding Capitalized Interest

2,027

1,372

Income Tax Paid

6,599

6,418

Non-cash Investing and Financing Activities

 

 

Current Portion of Long-term Liabilities

55,148

30,260

Cumulative Conversion Adjustment

(2,246)

645

Investing Activities Affecting Both Cash and Non-cash Items

 

 

Cash Paid for Acquisition of Property, Plant and Equipment

 

 

Cash Paid for Acquisition of Property, Plant and Equipment

77,595

47,540

 

 

Bankers

 

Subject declined to disclose its bank details; from other source we cannot 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:

2005,Zhujian,1514

Date of Trial:

2006-3-16

Reason:

Return unauthorized possession goods

2

Trial Number:

2005,Bu.560

Date of Trial:

2005-8-25

Reason:

Pay for remuneration

3

Trial Number:

2002,Zhujian,293

Date of Trial:

2002-5-6

Reason:

Pay for fare

 

 

Interview Details

 

Name

Ms. Li

Department

Sales Department


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.07

UK Pound

1

Rs.84.94

Euro

1

Rs.68.23

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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

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

--

NB

                                       New Business

 

--

 

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%)

 

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