MIRA INFORM REPORT

 

 

Report Date :

02.07.2013

 

IDENTIFICATION DETAILS

 

Name :

COMPAL COMMUNICATIONS INC.

 

 

Registered Office :

8F., No.385, Yangguang St., Neihu District, Taipei City 114

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

12.02.1999

 

 

Com. Reg. No.:

16836505

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and sale of mobile phone and communication products

 

 

No. of Employees :

About 1,500 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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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. 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 1.8%, due primarily to a 13.1% year-on-year decline in exports. In 2010 GDP grew 10.7%, as exports returned to the level of previous years, and in 2011, grew 4.0%. In 2012, however, growth fell to 1.3%, 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 except for the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, so far Taiwan has been excluded from this greater economic integration in part because of its diplomatic status. Negotiations continue on such follow-on components of ECFA regarding trade in goods and services. The MA administration has said that the ECFA will serve as a stepping stone toward trade pacts with other key trade partners, which Taiwan subsequently launched with Singapore and New Zealand. 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 11.2% of the island's total population as of 2012. The island runs a large trade surplus largely because of its surplus with China, and its foreign reserves are the world's fifth largest, behind China, Japan, Saudi Arabia, and Russia. In 2006 China overtook 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. In August 2012, Taiwan Central Bank signed a memorandum of understanding on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese RMB and the New Taiwan dollar across the Strait, which could help develop Taiwan into a local RMB hub. 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:

Compal Communications Inc.

Former Name:

Trinity Communications Inc.

Supplied Name:

Compal Communications Inc

Trading Address:

No.385, Yangguang St., Neihu District, Taipei City 114, Taiwan (R.O.C.)

Supplied Address:

Nei Hu District Yang Guang St Asia Plaza Building B 385 Taipei Taiwan

Telephone Number:

+886-2-8751-6228

Fax Number:

+886-2-8751-3228

E-mail:

sales@compalcomm.com

Notes: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

COMPAL COMMUNICATIONS INC.

Registered Address:

8F., No.385, Yangguang St., Neihu District, Taipei City 114, Taiwan (R.O.C.)

Date of Foundation:

1999-2-12

Registration Number:

16836505

Registry:

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

Registered Capital:

NTD 11,000,000,000 (USD 374,000,000)

(As of 2013.07, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 6,077,270,000 (USD 206,627,180)

Legal Representatives:

Ruicong Chen

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sale of mobile phone and communication products

Staff:

About 1,500 Employees

Listed at Stock Exchange:

Yes; Stock Symbol: 8078

Date of Last Annual Return:

2012-7-4

 

 

History

 

Subject was incorporated on 1999-2-12 with registered number 16836505 as Joint Stock Company in Taiwan.

 

Subject was listed on Taiwan stock exchange on 2003-12-9.

 

Change of Name

Former Name

Trinity Communications Inc.

Current Name

Compal Communications Inc.

 

 

Shareholders

 

Name

Subscription Shares

Ruicong Chen

2,715,929         

Zhaocheng Chen

3,448,071

Compal Electronics, Inc.

290,355,904

Shenghua Peng

705,944

Nanxiong Li

4,038,522

 

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

 

 

Subsidiaries & Branches

 

Related Company

Name

COMPAL ELECTRONICS, INC.

Registered Address:

No.581, Rueiguang Rd., Neihu District, Taipei City 114, Taiwan (R.O.C.)

Date of Foundation:

1984-6-1

Registration Number:

21222725

Registry:

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

Registered Capital:

NTD 60,000,000,000 (USD 2,040,000,000)

(As of 2013.06, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 44,126,526,250 (USD 1,500,301,893)

Legal Representatives:

Shengxiong Xu

Legal Form:

Joint Stock Company

Listed at Stock Exchange:

Yes; Stock Symbol: 2324

Date of Last Annual Return:

2013-1-7

 

 

Personnel Information

 

Core Management

 

Directors

1

Name

Ruicong Chen

Position

Board Director

2

Name

Zhaocheng Chen

Position

Director/ Manager

Date of Appointment

2008-10-1

3

Name

Changqi Ke

Position

Director

4

Name

Shenghua Peng

Position

Director

5

Name

Qingxiong Lv

Position

Director

6

Name

Wenda Xu

Position

Director

7

Name

Dugong Cai

Position

Independent Director

8

Name

Maogui Lin

Position

Independent Director

9

Name

Guoqiang Hu

Position

Independent Director

10

Name

Nanxiong Li

Position

Supervisor

11

Name

Chenju Fan

Position

Supervisor

12

Name

Liqiu Zhang

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 1,500 Employees

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

No.385, Yangguang St., Neihu District, Taipei City 114, Taiwan (R.O.C.)

 

Production Information

 

Subject is engaged in manufacturing of mobile phone and communication products, etc.

It is introduced that subject has factories in Taiwan and Nanjing City, Jiangsu Province, China for production.

Subject can provide OEM and ODM services.

Subject obtained the certifications of ISO 14001 and CE.

 

Purchase Information

 

The registered activities of subject:

Business Code

Details

CC01070

Manufacturing of wireless communication equipment

CC01060

Manufacturing of wire communication equipment

CC01101

Manufacturing of RF devices controlled by telecom

F113070

Wholesale of telecom equipment

F401021

Import of RF devices controlled by telecom

ZZ99999

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

 

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

 

Sales Information

 

Subject is engaged in sale of mobile phone and communication products, etc.

The major products sold by subject include mobile phone, tablet product, data module, and robot products, etc.

Subject has their own robot brand called “UrRobot”.

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

Subject’s major customers are “Alcatel”, “Motorola” and “Microsoft”, etc.

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase

Product

Terms

Proportion

Components and raw materials

T/T, Cash, etc

100%

 

Foreign Purchase

Product

Terms

Proportion

Components and raw materials

L/C, T/T, etc

100%

 

Sales

 

Domestic Markets

Product

Terms

Proportion

Communication products

T/T, Cash, etc

100%

 

Export

Product

Sales Terms

Proportion

Communication products

L/C, T/T, etc

100%

 

 

Balance Sheet

 

Unit: NTD/000

 

2012-12-31

2011-12-31

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

6,624,540.00

2,339,648.00

Available-for-sale financial assets - current

74,003.00

61,863.00

Accounts receivable - net

4,387,566.00

10,176,053.00

Accounts receivable - related parties - net

2,490,988.00

47,743.00

Other receivables - related parties

0.00

572,502.00

Other financial assets - current

104,459.00

149,068.00

Inventories

1,788,710.00

3,785,108.00

Other current assets

121,852.00

191,750.00

Current assets

15,592,118.00

17,323,735.00

Funds and Investments

 

 

Financial assets carried at cost - non current

15,000.00

15,000.00

Equity investments under equity method

3,719,693.00

3,733,496.00

Investments

3,719,693.00

3,733,496.00

Funds and long-term investments

3,734,693.00

3,748,496.00

Fixed Assets

 

 

Cost

 

 

Machinery and equipment

4,675.00

4,675.00

Other facilities

689,765.00

609,746.00

Fixed assets cost

694,440.00

614,421.00

Accumulated depreciation

-565,694.00

-477,367.00

Construction in process and prepayment for equipments

5,100.00

6,324.00

Fixed assets

133,846.00

143,378.00

Intangible Assets

 

 

Computer software cost

26,838.00

31,369.00

Intangible assets

26,838.00

31,369.00

OtherAssets

 

 

Guarantee deposits paid

95,535.00

95,583.00

Other assets - other

5,053.00

2,546.00

Other assets

100,588.00

98,129.00

Assets

19,588,083.00

21,345,107.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

Short-term borrowings

1,422,960.00

272,475.00

Accounts payable

3,237,370.00

5,655,248.00

Accounts payable - related parties

2,250,453.00

3,689,331.00

Accrued expenses

931,987.00

783,273.00

Other payables - related parties

385.00

4,652.00

Other current liabilities

778,585.00

1,118,004.00

Current liabilities

8,621,740.00

11,522,983.00

Long term Liabilities

 

 

Reserves

 

 

Other Liabilities

 

 

Deferred income tax liabilities

235,390.00

242,023.00

Other liabilities - other

688.00

5,227.00

Other liabilities

236,078.00

247,250.00

Liabilities

8,857,818.00

11,770,233.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

6,077,270.00

6,077,270.00

Capital Surplus

 

 

Capital surplus - additional paid-in capital

354,041.00

354,041.00

Capital surplus - treasury stock transactions

20,792.00

20,792.00

Capital surplus - employee stock option

84,045.00

20,462.00

Capital surplus

458,878.00

395,295.00

Retained Earnings

 

 

Legal reserve

1,871,632.00

1,871,632.00

Special reserve

218,382.00

597.00

Unappropriated retained earnings

2,510,865.00

1,559,574.00

Retained earnings

4,600,879.00

3,431,803.00

Stockholders' Equity and Other adjustment

 

 

Cumulative translation adjustments

-318,018.00

-229,320.00

Unrealized gains (losses) on financial instruments

22,368.00

10,938.00

Treasure stock

-111,112.00

-111,112.00

Equity adjustments

-406,762.00

-329,494.00

Stockholdersˉ equity

10,730,265.00

(USD 364,829,010.00)

9,574,874.00

(USD 325,545,716.00)

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

3,144,000.00

3,144,000.00

 

0.00

0.00

(As of 2013.07, 1 NTD = 0.0340 USD)

 

 

Profit and Loss Account

 

Unit: NTD/000

 

2012

2011

Sales

45,187,980.00

(USD 1,536,391,320.00)

17,841,498.00

(USD 606,610,932.00)

Sales returns

624,467.00

28,045.00

Sales discounts and allowances

345.00

12,255.00

Sales

44,563,168.00

17,801,198.00

Other operating revenue

792,801.00

503,048.00

Operating income

45,355,969.00

18,304,246.00

Operating costs

41,878,618.00

16,120,012.00

Gross profit (loss) from operations

3,477,351.00

2,184,234.00

Selling expense

107,002.00

121,539.00

General and administrative expenses

490,814.00

346,010.00

Research and development expenses

1,857,402.00

1,645,182.00

Operating expenses

2,455,218.00

2,112,731.00

Operating income (loss)

1,022,133.00

71,503.00

Non-Operating Income

 

 

Interest income

32,783.00

52,697.00

Income from long-term equity investments under the equity method

139,441.00

0.00

Investment income

139,441.00

0.00

Foreign exchange gains

0.00

10,734.00

Miscellaneous income

164,222.00

121,057.00

Non-operating revenues and gains

336,446.00

184,488.00

Non-Operating Expenses

 

 

Losses from long-term equity investments under the equity method

0.00

421,577.00

Investment loss

0.00

421,577.00

Loss on sale of investments

34,830.00

0.00

Foreign exchange losses

40,362.00

0.00

Miscellaneous disbursements

771.00

54.00

Non-operating expenses and losses

75,963.00

421,631.00

Income from continuing operations before income tax

1,282,616.00

-165,640.00

Income tax expense (benefit)

113,540.00

566.00

Income from continuing operations

1,169,076.00

-166,206.00

Net income (loss)

1,169,076.00

(USD 39,748,584.00)

-166,206.00

(USD -5,651,004.00)

Primary Earnings per Share

 

 

Income (loss) from continuing operations

1.93

-0.27

Primary earnings per share

1.93

-0.27

Diluted earnings per share

 

 

Income (loss) from continuing operations

1.91

-0.27

Diluted earnings per share

1.91

-0.27

(As of 2013.07, 1 NTD = 0.0340 USD)

 

 

Cash Flows

 

Unit: NTD/000

 

2012

2011

Cash Flows from Operating Activities - Indirect Method

 

 

Net Income (Loss)

1,169,076.00

-166,206.00

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

 

 

Depreciation Expense

92,870.00

116,358.00

Amortization Expense

35,883.00

46,925.00

Provision (Reversal of Provision) for Bad Debts Losses

-1,059.00

-2,093.00

Provision (Reversal of Provision) for Sales Returns, Discounts and Allowances

86,865.00

-5,789.00

Share-based Compensation

63,583.00

41,390.00

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

3,590.00

-25,138.00

Investment Loss (Income) Recognized under Equity Method

-139,441.00

421,577.00

Cash Dividends Received from Investments Accounted for under Equity Method

3,325.00

3,170.00

Loss (Gain) on Disposal of Investments

34,830.00

0.00

Unrealized Gain (Loss) on Intercompany Transactions

-227.00

-272.00

Changes in Operating Assets and Liabilities

 

 

Decrease (Increase) in Accounts Receivable

3,259,436.00

-8,283,691.00

Decrease (Increase) in Inventories

1,992,808.00

-2,600,296.00

Decrease (Increase) in Other Prepayments

58,056.00

-96,702.00

Decrease (Increase) in Other Financial Assets

617,111.00

-522,972.00

Decrease (Increase) in Deferred Tax Assets

10,628.00

70,674.00

Decrease (Increase) in Other Operating Assets

764.00

0.00

Increase (Decrease) in Accounts Payable

-2,417,878.00

5,081,840.00

Increase (Decrease) in Accounts Payable - Related Parties

-1,438,878.00

1,902,080.00

Increase (Decrease) in Income Tax Payable

83,429.00

425.00

Increase (Decrease) in Other Payables

21,311.00

95,390.00

Increase (Decrease) in Other Current Liabilities

-299,712.00

220,698.00

Increase (Decrease) in Deferred Tax Liabilities

6,881.00

-81,175.00

Increase (Decrease) in Other Operating Liabilities

0.00

-2,848.00

Net Cash Provided by (Used in) Operating Activities

3,243,251.00

-3,786,655.00

Cash Flows from Investing Activities

 

 

Proceeds from Disposal of Investments Accounted for by Equity Method

5,227.00

0.00

Purchase of Property, Plant and Equipment

-85,813.00

-51,166.00

Proceeds from Disposal of Property, Plant and Equipment

848.00

1,953.00

Purchase of Intangible Assets

-29,137.00

-21,539.00

Other Investing Activities

48.00

-578.00

Net Cash Provided by (Used in) Investing Activities

-108,827.00

-71,330.00

Cash Flows from Financing Activities

 

 

Increase (Decrease) in Short-term Loans

1,150,485.00

257,834.00

Increase (Decrease) in Guarantee Deposits Received

-17.00

0.00

Cash Dividends Paid

0.00

-302,690.00

Purchase of Treasury Stock

0.00

-111,112.00

Treasury Stock Sold to Employees

0.00

47,520.00

Net Cash Provided by (Used in) Financing Activities

1,150,468.00

-108,448.00

Net Increase (Decrease) in Cash and Cash Equivalents

4,284,892.00

-3,966,433.00

Cash and Cash Equivalents, Beginning of year

2,339,648.00

6,306,081.00

Cash and Cash Equivalents, End of year

6,624,540.00

2,339,648.00

Supplemental Cash Flow Information

 

 

Interest Paid

735.00

0.00

Interest Paid- Excluding Capitalized Interest

735.00

0.00

Income Tax Paid

6,986.00

10,125.00

 

 

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

Mr. Wang

Department

Sales Department

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.15

UK Pound

1

Rs.90.05

Euro

1

Rs.77.06

 

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%)

 

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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.