MIRA INFORM REPORT

 

 

Report Date :

29.01.2013

 

IDENTIFICATION DETAILS

 

Name :

LOGAH TECHNOLOGY CORPORATION

 

 

Registered Office :

5F.-3, No.36, Tai-Yuan St., Jhubei City, Hsinchu County 30265

 

 

Country :

Taiwan

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

22.12.2003

 

 

Com. Reg. No.:

80617029

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Design, Manufacturing and sales of electronic components, etc

 

 

No. of Employees :

About 140 Employees

 

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

(31.03.2011)

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:

Logah Technology Corporation

Supplied Name:

LOGAH TECHNOLOGY CORPORATION

Trading Address:

5F.-3, No.36, Tai-Yuan St., Jhubei City, Hsinchu County 30265, Taiwan (R.O.C.)

Supplied Address:

5F-3, NO 36 TAI-TUEN ST CUPEI HSINCHU, HSIEN, TAIWAN 302 TAIWAN

Telephone Number:

+886-3-552-5328

Fax Number:

+886-3-552-5327

Website:

www.logah.com

Notes: The exact address is as above.

 

Credit Summary

 

Credit Opinion:

Business connections are permissible.

 

Company Identification Details

 

Registered Name:

Logah Technology Corporation

Registered Address:

5F.-3, No.36, Tai-Yuan St., Jhubei City, Hsinchu County 30265, Taiwan (R.O.C.)

Date of Foundation:

2003-12-22

Registration Number:

80617029

Registry:

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

Registered Capital:

NTD 2,000,000,000 (USD 68,000,000)

(As of 2013.01, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 1,127,430,580 (USD 38,332,639.72)

Legal Representatives:

Huihuang Wu

Legal Form:

Joint Stock Company

Principal Activities:

Design, Manufacturing and sales of electronic components, etc

Staff:

About 140 Employees

Listed at Stock Exchange:

Yes; Stock Symbol: 3593

Date of Last Annual Return:

2012-7-24

 

History

 

Subject was incorporated on 2003-12-22 with registered number 80617029 as Joint Stock Company in Taiwan.

Subject listed on Taiwan stock exchange on 2008-10-29.

 

Shareholders

 

Name

Subscription Shares

Lite-On Technology Corporation

21,386,750       

Fuding Venture Capital Investment Corporation (Literal Translation)

484,396

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

 

Subsidiaries & Branches

 

Parent Company

Name

Lite-On Technology Corporation

Address

No.392, Ruiguang Road, Neihu District, Taipei City, Taiwan, R.O.C.

Telephone Number

+886-2-8798-2888

Fax Number

+886-2-8798-2760

Listed at Stock Exchange:

Yes; Stock Symbol: TPE: 2301

Principal Activity:

Manufacturing and sales of imaging products, enclosures, power supplies and LEDs, etc

Plant

Name

Logah Electronics (Suzhou) Co., Ltd.

Address

Lianhua Road, Wujiang City, Suzhou City, Jiangsu Province, China

Telephone Number

+86-512-6336-1588

Fax Number

+86-512-6336-1118

 

Personnel Information

Core Management

 

Directors

1

Name

Huihuang Wu

Position

Board Chairman

2

Name

Guangzhong Chen

Position

Director

3

Name

Gongyuan Song

Position

Director

4

Name

Guangzhong Teng

Position

Director

5

Name

Qilin Wei

Position

Director

6

Name

Decheng Qiu

Position

Director

7

Name

Jinshun Wu

Position

Independent Director

8

Name

Zhonghe Tai

Position

Independent Director

9

Name

Youxuan Fu

Position

Independent Director

 

Personnel Structure

 

Total Employees

About 140 Employees

 

Operation Information

Offices & Factories

 

 

Headquarters

Add

5F.-3, No.36, Tai-Yuan St., Jhubei City, Hsinchu County 30265, Taiwan (R.O.C.)

 

Production Information

 

l  Subject is engaged in design and manufacturing of electronic components, etc.

l  Subject has a R&D center in Jhubei City, Taiwan.

l  Subject has a plant in Jiangsu, China for production.

l  Subject can provide OEM and ODM services.

l  Subject obtained the certifications of ISO 9001 and ISO 14001.

 

Purchase Information

 

l  The registered activities of subject:

Business Code

Details

CC01080

Manufacturing of electronic components

I501010

Product design

F119010

Manufacturing of electronic material

CC01010

Manufacturing of generator, electricity transmission machine, electricity distribution machine

CC01030

Manufacturing of electrical equipment

ZZ99999

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

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

 

Sales Information

 

l  Subject is engaged in sales of electronic components, etc.

l  The major products sold by subject are CCFL Inverter, LED Converter, power board, T-balance board, PV inverter, wireless charger, and battery charger, etc.

l  Subject’s sales regions include Asia, Europe and America, etc.

l  The inverter and display power supply are application to LCD TV, Notebook, and LCD Monitor, etc.

 

Import and export right:

Import right

Yes

Export right

Yes

 

Settlements

Purchase

 

Domestic Purchase

Product

Payment Terms

Proportion

Components

COD, CBD, etc

100%

 

Foreign Purchase

Product

Payment Terms

Proportion

Components

CBD, etc

100%

Sales

 

Domestic Markets (Taiwan and Mainland China)

Product

Sales Terms

Proportion

Electronic components

COD, CBD, Credit Sale, etc

100%

 

Export

Product

Sales Terms

Proportion

Electronic components

CBD, etc

100%

Notes: Subject’s settlement for export is generally in USD

 

Balance Sheet

Unit: NTD/000

 

2012-9-30

2011-9-30

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

827,828.00

951,116.00

Accounts receivable - net

440,882.00

747,896.00

Other receivables - related parties

130,121.00

325,632.00

Inventories

11,042.00

27,354.00

Other current assets

25,032.00

17,739.00

Current assets

1,434,905.00

2,069,737.00

Funds and Investments

 

 

Equity investments under equity method

916,373.00

880,338.00

Investments

916,373.00

880,338.00

Funds and long-term investments

916,373.00

880,338.00

Fixed Assets

 

 

Cost

 

 

Land

56,369.00

56,369.00

Buildings and structures

125,263.00

125,263.00

Machinery and equipment

50,669.00

51,251.00

Transportation equipment

1,829.00

1,829.00

Office equipment

14,948.00

15,321.00

Leasehold improvements

1,273.00

330.00

Other facilities

2,012.00

1,063.00

Fixed assets cost

252,363.00

251,426.00

Accumulated depreciation

-62,052.00

-56,462.00

Fixed assets

190,311.00

194,964.00

Intangible Assets

 

 

Other Assets

 

 

Guarantee deposits paid

202.00

242.00

Deferred charges

11,421.00

12,721.00

Other assets - other

256.00

188.00

Other assets

11,879.00

13,151.00

Assets

2,553,468.00

3,158,190.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

Financial liabilities measured at fair value through profit or loss - current

0.00

4,770.00

Accounts payable

14,074.00

0.00

Accounts payable - related parties

408,575.00

404,706.00

Accrued expenses

44,151.00

76,203.00

Other payables

225,157.00

619,689.00

Other current liabilities

962.00

2,738.00

Current liabilities

692,919.00

1,108,106.00

Long term Liabilities

 

 

Reserves

 

 

Other Liabilities

 

 

Deferred income tax liabilities

47,790.00

63,251.00

Other liabilities - other

672.00

672.00

Other liabilities

48,462.00

63,923.00

Liabilities

741,381.00

1,172,029.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

1,127,431.00

1,127,431.00

Capital Surplus

 

 

Capital surplus - additional paid-in capital

321,278.00

321,278.00

Capital surplus

321,278.00

321,278.00

Retained Earnings

 

 

Legal reserve

171,664.00

171,664.00

Special reserve

0.00

12,644.00

Unappropriated retained earnings

163,023.00

301,898.00

Retained earnings

334,687.00

486,206.00

Stockholders' Equity and Other adjustment

 

 

Cumulative translation adjustments

28,691.00

51,246.00

Equity adjustments

28,691.00

51,246.00

Stockholders-equity

1,812,087.00

(USD 61,610,958.00)

1,986,161.00

(USD 67,529,474.00)

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

0.00

0.00

 

0.00

0.00

 

 

Profit and Loss Account

Unit: NTD/000

 

2012-1-1~2012-9-30

2011-1-1~2011-9-30

Sales

1,190,214.00

(USD 40,467,276.00)

2,095,100.00

(USD 71,233,400.00)

Sales returns

6,419.00

3,348.00

Sales

1,183,795.00

2,091,752.00

Operating income

1,183,795.00

2,091,752.00

Operating costs

1,116,247.00

1,906,260.00

Gross profit (loss) from operations

67,548.00

185,492.00

Selling expense

22,394.00

28,796.00

General and administrative expenses

61,420.00

72,314.00

Research and development expenses

63,121.00

73,012.00

Operating expenses

146,935.00

174,122.00

Operating income (loss)

-79,387.00

11,370.00

Non-Operating Income

 

 

Interest income

2,800.00

2,147.00

Income from long-term equity investments under the equity method

0.00

26,716.00

Investment income

0.00

26,716.00

Foreign exchange gains

0.00

8,029.00

Revaluation gain on financial assets

2,588.00

0.00

Miscellaneous income

5,236.00

11,873.00

Non-operating revenues and gains

10,624.00

48,765.00

Non-Operating Expenses

 

 

Losses from long-term equity investments under the equity method

52,823.00

0.00

Investment loss

52,823.00

0.00

Loss on disposal of fixed assets

0.00

1,247.00

Foreign exchange losses

4,658.00

0.00

Revaluation loss on financial liabilities

0.00

15,625.00

Miscellaneous disbursements

1,021.00

321.00

Non-operating expenses and losses

58,502.00

17,193.00

Income from continuing operations before income tax

-127,265.00

42,942.00

Income tax expense (benefit)

-3,431.00

25,924.00

Income from continuing operations

-123,834.00

17,018.00

Net income (loss)

-123,834.00

(USD -4,210,356.00)

17,018.00

(USD 578,612.00)

Primary Earnings per Share

 

 

Primary earnings per share

-1.10

0.15

Diluted earnings per share

 

 

Diluted earnings per share

-1.10

0.15

 

Cash Flows

Unit: NTD/000

 

2012-1-1~2012-9-30

2011-1-1~2011-9-30

Net Income (Loss)

(123,834)

17,018

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

 

 

Depreciation Expense

9,289

10,925

Provision (Reversal of Provision) for Bad Debts Losses

-996

86

Difference Between Net Pension Cost and Plan Contribution

-63

-16

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

1,179

852

Loss (Gain) on Physical Inventory

4

0

Investment Loss (Income) Recognized under Equity Method

52,823

-26,716

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

0

1,247

Unrealized Revaluation Loss (Gain) on Financial Assets and Liabilities

0

4,770

Loss (Gain) on Deferred Income Tax

-3,078

5,960

Other Adjustments to Reconcile Net Income

-79

-79

Changes in Operating Assets and Liabilities

 

 

Decrease (Increase) in Accounts Receivable

145,553

409,451

Decrease (Increase) in Other Receivable- Related Parties

95,763

265,264

Decrease (Increase) in Inventories

10,088

-11,569

Decrease (Increase) in Other Prepayments

-2,988

3,698

Increase (Decrease) in Accounts Payable

14,074

-101

Increase (Decrease) in Accounts Payable - Related Parties

98,636

-209,313

Increase (Decrease) in Income Tax Payable

0

-2,697

Increase (Decrease) in Accrued Expenses

-6,059

-1,548

Increase (Decrease) in Other Payables

-133,986

-286,300

Increase (Decrease) in Other Current Liabilities

-819

-2,832

Net Cash Provided by (Used in) Operating Activities

155,507

178,100

Cash Flows from Investing Activities

 

 

Proceeds from Disposal of Financial Assets as Fair Value through Profit or Loss

-292

0

Purchase of Property, Plant and Equipment

-4,502

-140,220

Proceeds from Disposal of Property, Plant and Equipment

2

224

Decrease (Increase) in Refundable Deposits

30

1,858

Increase in Deferred Charges

-1,869

-2,102

Net Cash Provided by (Used in) Investing Activities

-6,631

-140,240

Cash Flows from Financing Activities

 

 

Net Increase (Decrease) in Cash and Cash Equivalents

148,876

37,860

Cash and Cash Equivalents, Beginning of year

678,952

913,256

Cash and Cash Equivalents, End of year

827,828

951,116

Supplemental Cash Flow Information

 

 

Income Tax Paid

1,310

23,011

Non-cash Investing and Financing Activities

 

 

Cash Dividends Payable

0

112,743

Investing Activities Affecting Both Cash and Non-cash Items

 

 

Cash Paid for Acquisition of Property, Plant and Equipment

 

 

Increase in Property, Plant and Equipment

(4,668)

(140,285)

Increase (Decrease) in Payable for Equipment Purchased

166

65

Cash Paid for Acquisition of Property, Plant and Equipment

(4,502)

(140,220)

 

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. Lv

Department

Sales Department

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.89

UK Pound

1

Rs.84.92

Euro

1

Rs.72.51

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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