MIRA INFORM REPORT

 

 

Report Date :

15.04.2013

 

IDENTIFICATION DETAILS

 

Name :

HU LANE ASSOCIATE INC.

 

 

Registered Office :

No. 68, Huanhe St., Xizhi Dist., New Taipei City 221

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

09.07.1977

 

 

Com. Reg. No.:

20759430

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and sales of connector, housing, terminal and wafer and etc.

 

 

No. of Employees :

About 300 Employees (Headhunter)

 

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:

Hu Lane Associate Inc.

Supplied Name:

Hu Lane Associate Inc

Trading Address:

No. 68, Huanhe St., Xizhi Dist., New Taipei City 221, Taiwan (R.O.C.)

Supplied Address:

68 Huanhe St. Xizhi Dist New Tapipei City 22154

Telephone Number:

+886-2-2694-0551

Fax Number:

+886-2-2694-2526

E-mail:

marketing@hulane.com.tw

Notes: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

HU LANE ASSOCIATE INC.

Registered Address:

No. 68, Huanhe St., Xizhi Dist., New Taipei City 221, Taiwan (R.O.C.)

Date of Foundation:

1977-7-9

Registration Number:

20759430

Registry:

Department of Commerce, Ministry of Economic Affairs, R.O.C.

Registered Capital:

NTD 1,000,000,000 (USD 33,500,000)

(As of 2013.4, 1 NTD = 0.0335 USD)

Paid-up Capital:

NTD 884,051,050 (USD 29,615,710)

Legal Representatives:

Zixiong Zhang

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sales of connector, housing, terminal and wafer and etc.

Staff:

About 300 Employees (Headhunter)

Listed at Stock Exchange:

Yes; (Public, TPE: 6279) 

Date of Last Annual Return:

2012-9-20

 

 

History

 

Subject was incorporated on 1977-7-9 with registered number 20759430 as Joint Stock Company in Taiwan.

 

Subject listed on Taiwan Stock Exchange on 2003-11-26.

 

 

Shareholders

 

Name

Subscription Shares

Zixiong Zhang

3,761,427

Shengqing Hu

5,256,270

Baoxi Li

1,913,432

Hongming Lian

2,366,577

Chunxiang Liu

4,386,172

Shuhua Xu

25,735

Shiliang Lin

728,274

Yimin Zhan

30,849

Suntian Lin

24,476

 

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

 

 

Subsidiaries & Branches

 

Related Companies

1

Name

Hu Lane Electronic (Nan Jing) CO., LTD.

Address

No.38, Lai-Feng Rd. , Airport Industrial Park , Lokou Town , Jiang-Ning District, Nanjing , Jiangsu , China

Telephone Number

+86-25-5277-4425

Fax Number

+86-25-5277-1366

2

Name

Hu Lane Electronic (Shen Zhen) CO., LTD.

Address

Blk 4, 2nd New Industrial Area, Shanmen Village, Songgang, Baoan, Shenzhen, China

Telephone Number

+86-755-231-3286

3

Name

Hu Lane Associate Inc.(Hong Kong)

Address

Unit28, 20F. Blk B, Wah Lok Ind., Centre 31, Shen Wei St.,

Fo Tan Shatin N.T., HK

Telephone Number

+852-2687-3228

Fax Number

+852-2687-1576

E-mail

hulane@netvigator.com

4

Name

Shenzhen Puguang Trading Limited Company (Liberal translation)

Address

Shanmen Village, Puan Songgang, Shenzhen City, Guangdong Province, China

Telephone Number

+86-755-2714-7355

Fax Number

+86-755-2771-8343

 

 

Personnel Information

 

Core Management

 

Directors

1

Name

Zixiong Zhang

Position

Board of Chairman

2

Name

Shengqing Hu

Position

Director

3

Name

Baoxi Li

Position

Director

4

Name

Hongming Lian

Position

Director

5

Name

Chunxiang Liu

Position

Director

6

Name

Yuanli Lin

Position

Independent Director

7

Name

Shuhua Xu

Position

Independent Director

8

Name

Shiliang Lin

Position

Supervisor

9

Name

Yimin Zhan

Position

Supervisor

10

Name

Suntian Lin

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 300 Employees (Headhunter)

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

No. 68, Huanhe St., Xizhi Dist., New Taipei City 221, Taiwan (R.O.C.)

 

Production Information

 

The subject is a manufacturer of connector, housing, terminal and wafer and etc.

It is introduced that subject has factories in Taiwan and the mainland of China for production.

It is introduced that subject’s factories have obtained ISO 9002: 1994, QS 9000: 1995, QS 9000: 1998, ISO 9001: 2000, ISO/TS 16949: 2002 and ISO 14001: 2004 certifications.

 

Purchase Information

 

The registered activities of subject:

Business Code

Details

--

Manufacturing and sales of electronic components (terminal) and hardware components.

--

Sales on domestic and overseas market of apparels, textiles, handicraft and etc.

--

Imports, exports and agents of products’ sales, bidding and marking prices for domestic and overseas factories.

CC01080

Manufacture of electronic material.

CQ01010

Manufacture of mold.

F119010

Wholesale of electronic material.

F219010

Retail of electronic material.

F106030

Wholesale of mold.

F206030

Retail of mold.

C804020

Manufacturing of industrial rubber products.

C805050

Manufacturing of industrial plastic products.

ZZ99999

Besides licensed business, all other business items those are not banned or restricted.

 

It is introduced that subject purchase raw materials and etc both in domestic and overseas market.

 

Sales Information

 

The subject is engaged in sales of connector, housing, terminal and wafer and etc.

It is introduced that subject’s selling territory covers all over the world.

It is introduced that subject’s major customers are automobile, motorbike, medical and electronic industry and etc.

It is introduced that subject’s products are applied to automobile, motorbike, medical and electronic.

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

 

Major products

1

Fuse

2

Instrument Panel

3

Automobile Lamp

4

Electronic

5

EFI(Electronic Fuel Injection Systems)

6

ECU(Electronic Controller Unit)

7

Automobile Digital Entertainment System

8

Medical

9

Wire to Board Connector(Wafer)

10

Fasten Accessories

11

LPG&CNG Converter

12

Others- Terminal & Housing

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase

Product

Payment Terms

Proportion

Raw materials and etc

COD, CBD and etc

100%

 

Foreign Purchase

Product

Payment Terms

Proportion

Raw materials and etc

CBD and etc

100%

 

Sales

 

Domestic Markets

Product

Sales Terms

Proportion

Connector, housing, terminal and wafer and etc

COD, CBD and etc

100%

 

Export

Product

Sales Terms

Proportion

Connector, housing, terminal and wafer and etc

CBD and etc

100%

 

 

 

 

 

Balance Sheet

                                                                    Unit: NTD/000

Date

2012-12-31

2011-12-31

Assets

 

 

        Current Assets

 

 

          Cash and cash equivalents

371,574.00

248,648.00

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

419.00

395.00

          Notes receivable - net

55,223.00

59,842.00

          Accounts receivable - net

205,308.00

263,833.00

          Accounts receivable - related parties - net

293,088.00

450,518.00

          Other receivables

21,738.00

24,324.00

          Other receivables - related parties

272,936.00

104,536.00

          Inventories

143,727.00

152,310.00

          Other current assets

54,692.00

56,258.00

            Current assets

1,418,705.00

1,360,664.00

       Funds and Investments

 

 

            Equity investments under equity method

1,280,081.00

1,188,448.00

          Investments

1,280,081.00

1,188,448.00

            Funds and long-term investments

1,280,081.00

1,188,448.00

     Fixed Assets

 

 

        Cost

 

 

          Land

100,183.00

100,183.00

          Buildings and structures

74,915.00

76,387.00

          Machinery and equipment

150,469.00

159,122.00

          Transportation equipment

7,728.00

5,789.00

          Office Equipment

17,576.00

21,659.00

          Leasehold improvements

1,576.00

1,576.00

            Revaluation increment

79,144.00

79,144.00

          Cost and revaluation increment

431,591.00

443,860.00

          Accumulated depreciation

-124,106.00

-130,525.00

          Construction in process and prepayment for equipments

6,902.00

8,589.00

          Cost and revaluation increment

314,387.00

321,924.00

         Intangible Assets

 

 

          Computer software cost

12,417.00

11,766.00

            Intangible assets

12,417.00

11,766.00

        Other Assets

 

 

            Other assets

19,913.00

22,438.00

            Assets

3,045,503.00

2,905,240.00

        Liabilities and Stockholders' Equity

 

 

        Liabilities

 

 

        Current Liabilities

 

 

          Short-Term Borrowing

35,000.00

79,062.00

          Financial liabilities at fair value through profit or loss--flow

0.00

94.00

          Payable Bills

21,577.00

33,533.00

          Accounts payable

83,643.00

96,257.00

          Accounts payable - related parties

83,784.00

60,779.00

          Income tax payable

51,081.00

43,446.00

          Accrued expenses

104,815.00

102,798.00

          Other payables - related parties

76,857.00

40,705.00

          Other payables

12,966.00

13,672.00

          Other current liabilities

469,723.00

470,346.00

          Long term Liabilities

 

 

        Reserves

 

 

          Reserve for land revaluation increment tax

45,119.00

45,119.00

            Reserves

45,119.00

45,119.00

        Other Liabilities

 

 

          Pension reserve / accrued pension liability

68,621.00

68,573.00

       Other liabilities-others

11,369.00

10,126.00

            Other liabilities

79,990.00

78,699.00

            Liabilities

594,832.00

594,164.00

       Stockholders' Equity

 

 

   Capital

 

 

          Common stock

884,051.00

864,910.00

          Advance receipts for common stock

352.00

172.00

        Capital Surplus

 

 

          Capital surplus - additional paid-in capital

585,112.00

585,112.00

          Capital Surplus- Gain on Sale of Fixed Assets

101.00

101.00

        Capital surplus - long-term equity investments

8.00

8.00

          Capital surplus - Consolidated surplus

53,723.00

53,723.00

              Capital surplus - employee stock option

13,649.00

10,887.00

            Capital surplus

652,593.00

649,831.00

          Retained Earnings

 

 

          Legal reserve

262,282.00

222,905.00

         Special Reserve

0.00

20,682.00

           Inappropriate retained earnings

623,396.00

490,953.00

              Retained earnings

885,678.00

734,540.00

        Stockholders’' Equity and Other adjustment

 

 

        Cumulative translation adjustments

27,857.00

61,483.00

           Unrealized Revaluation Increment

140.00

140.00

            Equity adjustments

27,997.00

61,623.00

          Stockholders‘ equity

2,450,671.00

(USD 82,097,479)

2,311,076.00

(USD 77,421,046)

              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)

17,700.00

8,000.00

(As of 2013.4, 1 NTD = 0.0335 USD)

 

 

Profit and Loss Account

                                                                    Unit: NTD/000

Date

2012

2011

  Sales

1,698,770.00

(USD 56,908,795)

1,862,759.00

(USD 62,402,427)

         Sales return

4,853.00

6,690.00

          Sales

1,693,917.00

1,856,069.00

         Operating income

1,693,917.00

1,856,069.00

              Operating costs

1,063,457.00

1,230,874.00

          Gross profit (loss) from operations

630,460.00

625,195.00

          Unrealized gain from inter-affiliate accounts.

2,347.00

0.00

          Selling expense

90,481.00

123,142.00

          General and administrative expenses

128,758.00

128,736.00

          Research And Development Expenses

44,783.00

41,100.00

          Operating expenses

264,022.00

292,978.00

          Operating income (loss)

364,091.00

332,217.00

        Non-Operating Income

 

 

          Income from long-term equity investments under the equity method

98,819.00

88,649.00

          Investment income

98,819.00

88,649.00

          Miscellaneous income

55,981.00

44,072.00

          Non-operating revenues and gains

154,800.00

132,721.00

        Non-Operating Expenses

 

 

          Foreign exchange loss

23,983.00

0.00

          Miscellaneous disbursements

761.00

7,065.00

          Non-operating expenses and losses

24,744.00

7,065.00

          Income from continuing operations before income tax

494,147.00

457,873.00

          Income tax expense (benefit)

74,393.00

64,093.00

          Income from continuing operations

419,754.00

393,780.00

          Net income (loss)

419,754.00

(USD 14,061,759)

393,780.00

(USD 13,191,630)

        Primary Earnings per Share

 

 

          Primary earnings per share

4.75

4.47

        Diluted earnings per share

 

 

          Diluted earnings per share

4.70

4.42

(As of 2013.4, 1 NTD = 0.0335 USD)

 

 

Cash Flow

 

Date

2012

2011

Cash Flows from Operating Activities - Indirect Method

 

 

  Net Income (Loss)

419,754.00

393,780.00

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

 

 

   Depreciation Expense

36,916.00

39,656.00

   Amortization Expense

6,687.00

1,444.00

   Share-based Compensation

676.00

1,619.00

   Loss (Gain) on Decline (Recovery) in Market Value, Scrap and Obsolescence of Inventories

6,126.00

6,828.00

   Investment Loss (Income) Recognized under Equity Method

(98,819.00)

(88,649.00)

 Received the equity method investment company cash dividend

17,400.00

0.00

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

(90.00)

404.00

   Loss (Gain) on Disposal of Investments

(1,725.00)

(916.00)

  Financial assets and liabilities unrealized loss assessment (interest)

(24.00)

0.00

 Unrealized gain from inter-affiliate accounts.

2,347.00

0.00

  Loss (Gain) on Deferred Income Tax

(5,288.00)

(5,955.00)

 Changes in Operating Assets and Liabilities

 

 

  Trading financial assets (increase) decrease

1,631.00

3,615.00

    Decrease (Increase) in Accounts Receivable

220,574.00

(156,957.00)

   Decrease (Increase) in Other Receivables

(165,814.00)

(90,391.00)

  Decrease (Increase) in Inventories

3,491.00

(12,556.00)

   Decrease (Increase) in Other Current Assets

9,353.00

(12,648.00)

Other operation (income) loss

55.00

(638.00)

   Increase (Decrease) in Accounts Payable

(1,565.00)

47,147.00

  Increase (Decrease) in Income Tax Payable

7,635.00

925.00

  Increase (Decrease) in Accrued Expenses

2,017.00

(878.00)

   Increase (Decrease) in Other Payable

36,152.00

(34,009.00)

    Increase (Decrease) in Other Current Liabilities

(706.00)

5,001.00

    Increase (Decrease) in Accrued Pension Liabilities

48.00

562.00

Other operating liabilities gains (decrease)

(1,103.00)

7,431.00

Net Cash Provided by (Used in) Operating Activities

495,728.00

104,815.00

Cash Flows from Investing Activities

 

 

 Acquisition of Investments Accounted for by Equity Method

(40,428.00)

(240,339.00)

The capital return of shares by the investment companies under equity method

0.00

143,219.00

  Purchase of Property, Plant and Equipment

(33,919.00)

(77,685.00)

  Proceeds from Disposal of Property, Plant and Equipment

179.00

576.00

  Decrease (Increase) in Refundable Deposits

(138.00)

(219.00)

  Increase in Deferred Charges

(2,530.00)

(459.00)

  Purchase of Intangible Assets

(1,632.00)

(144.00)

  Net Cash Provided by (Used in) Investing Activities

(78,468.00)

(175,051.00)

Cash Flows from Financing Activities

 

 

 Increase (Decrease) in Short-term Loans

(44,062.00)

79,062.00

 cash dividends

(251,286.00)

(287,261.00)

 Cash capital increase

0.00

0.00

  Exercise of Employee Stock Options

4,077.00

7,615.00

  Net Cash Provided by (Used in) Financing Activities

(291,271.00)

(200,584.00)

Effect rates of exchange

(3,063.00)

(314.00)

Net Increase (Decrease) in Cash and Cash Equivalents

122,926.00

(271,134.00)

Cash and Cash Equivalents, Beginning of year

248,648.00

519,782.00

Cash and Cash Equivalents, End of year

371,574.00

248,648.00

Supplemental Cash Flow Information

 

 

  Interest Paid- Excluding Capitalized Interest

128.00

1,758.00

  Income Tax Paid

75,425.00

74,107.00

Does not affect the investment and financing activities cash flow

 

 

 Reserve and recapitalization

17,330.00

41,037.00

 

 

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

 

Up to date of reporting, no existing or latent litigation of the subject has been found.

 

 

Interview Details

 

Name

Ms. Qiu

Department

Sales Department

E-mail

sales@hulane.com.tw


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.44

UK Pound

1

Rs.83.77

Euro

1

Rs.71.33

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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