MIRA INFORM REPORT

 

 

Report Date :

02.07.2013

 

IDENTIFICATION DETAILS

 

Name :

FARADAY TECHNOLOGY CORPORATION

 

 

Registered Office :

No.5, Li-Hsin Third Rd., Hsinchu Science Park, Hsinchu City, Taiwan 300

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

10.06.1993

 

 

Com. Reg. No.:

84149060

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and sales of electronic components

 

 

No. of Employees :

About 700 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:

Faraday Technology Corporation

Former Name:

Faraday Technology Corp.

Supplied Name:

Faraday Technology Corporation

Trading Address:

No.5, Li-Hsin Third Rd., Hsinchu Science Park, Hsinchu City, Taiwan 300, R.O.C.

Supplied Address:

No. 5, Li-Hsin Rd. III, Hsinchu Science park, Hsinchu City, Taiwan 300 Taiwan

Telephone Number:

+886-3-578-7888

Fax Number:

+886-3-578-7889

E-mail:

twsales@faraday-tech.com

Notes: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

FARADAY TECHNOLOGY CORPORATION

Registered Address:

No.5, Li-Hsin Third Rd., Hsinchu Science Park, Hsinchu City, Taiwan 300, R.O.C.

Date of Foundation:

1993-6-10

Registration Number:

84149060

Registry:

Science Park Administration

Registered Capital:

NTD 5,000,000,000 (USD 167,500,000)

(As of 2013.7, 1 NTD = 0.0335 USD)

Paid-up Capital:

NTD 4,062,075,220 (USD 136,079,520)

Legal Representatives:

Mingzhi Xuan

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sales of electronic components.

Staff:

About 700 Employees

Listed at Stock Exchange:

Yes; (Public, TPE: 3035)

Date of Last Annual Return:

2013-5-16

 

 

History

 

Subject was incorporated on 1993-6-10 with registered number 84149060 as Joint Stock Company in Taiwan.

 

Subject listed on Taiwan stock exchange on 2002-8-26.

 

Change of Name

Former English Name

Faraday Technology Corp.

Current English Name

Faraday Technology Corporation

 

 

Shareholders

 

Name

Subscription Shares

Unimicron Technology Corp.

200,000

United Microelectronics Corp.

57,067,023

Weixin Zang

237,941

Hongping Zheng

84,128

Zhengxing Hong

163,957

Qingyi Zeng

1,075,689

Zhiming Lin

761,330

 

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

 

 

Subsidiaries & Branches

 

Branches and Offices

1

Name

USA Branch

Address

3945 Freedom Circle, Suite 200 Santa Clara, CA 95054, U.S.A

Telephone Number

+1-408-522-8888

Fax Number

+1-408-522-8889

2

Name

Europe Office

Address

Planetenweg 39, 2132 HN Hoofddorp, The Netherlands

Telephone Number

+31-23-56-20496

Fax Number

+31-23-56-36297

3

Name

Japan Office

Address

Akihabara Center Place Bldg. 15F 1 Aioicho Kanda Chiyoda-ku, Tokyo, 101-0029, Japan

Telephone Number

+81-3-3526-4838

Fax Number

+81-3-3255-3900

4

Name

Shanghai Office

Address

Room 801, Yuanzhong Scientific Research Building, No.1905 Hongmei Rd., Shanghai, 200233, China

Telephone Number

+86-21-5445-3398

Fax Number

+86-21-5445-3368

5

Name

Shenzhen Office

Address

Room 403, Building, TsingHua Hi, Keyuan Road, Hi-tech Park, Nanshan District, Shenzhen City, 518057 China

Telephone Number

+86-755-8839-2194

Fax Number

+86-755-8839-2173

 

 

Personnel Information

 

Core Management

 

Directors

1

Name

Mingzhi Xuan

Position

Board Chairman

2

Name

Guowei Wang

Position

Director

3

Name

Weixin Zang

Position

Director

4

Name

Hongping Zheng

Position

Director

5

Name

Zhengxin Hong

Position

Director

6

Name

Shijun Xu

Position

Director

7

Name

Lingling Wu

Position

Independent Director

8

Name

Hongyuan Zheng

Position

Independent Director

9

Name

Shijie Cai

Position

Independent Director

10

Name

Qingyi Zeng

Position

Supervisor

11

Name

Zhiming Lin

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 700 Employees

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

No.5, Li-Hsin Third Rd., Hsinchu Science Park, Hsinchu City, Taiwan 300, R.O.C.

 

Production Information

 

The subject is a manufacturer of electronic components and etc.

It is introduced that subject has a factory in Taiwan for production.

It is introduced that subject has obtained ISO 9001:2008 and ISO 9001 certifications.

 

 

 

 

Purchase Information

 

The registered activities of subject:

Business Code

Details

CC01080

Manufacturing of electronic components.

F401010

International trading business.

I501010

Designing of products.

I301020

Dealing with files.

I301010

Serving of information software.

Researching, development, designing, manufacturing, producing and sales of follow products.

1

Designing of integrated circuit for special applications.

2

Silicon ipr and system platform for designing for integrated circuit for special applications.

3

Electronic circuit designing and ASIC EDA Tools for integrated circuit for special applications.

 

It is introduced that subject purchases raw materials, components and etc both at home and abroad.

 

Sales Information

 

The subject is mainly engaged in sales of electronic components and etc.

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

It is introduced that subject’s major customers are manufactures of electronic and electrical products, etc.

It is introduced that subject also provides SoC Design Service and SoC Evaluation Platform Service.

 

Major Products

 

Product

1

Library & Memory Compiler

2

Processor Cores

3

Interface IP

4

Analog / Mixed Signal IP

5

Peripheral IP

6

ARM Tools

7

Browse by IP Category

8

Browse by Technology

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase

Product

Payment Terms

Proportion

Raw materials, components and etc

COD, CBD and etc

100%

 

Foreign Purchase

Product

Payment Terms

Proportion

Raw materials, components and etc

CBD and etc

100%

 

Sales

 

Domestic Markets

Product

Sales Terms

Proportion

Electronic components and etc.

COD, CBD and etc

100%

 

Export

Product

Sales Terms

Proportion

Electronic components 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

2,794,321.00

2,371,540.00

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

3,141.00

342.00

          Available-for-sale financial assets - current

252,857.00

188,347.00

          Notes receivable - net

4,797.00

1,506.00

          Notes receivable - related parties - net

474.00

0.00

          Accounts receivable - net

1,025,702.00

653,325.00

          Accounts receivable - related parties - net

243,066.00

331,197.00

          Other receivables - related parties

33,496.00

23,099.00

          Inventories

720,490.00

410,776.00

          Other current assets

246,087.00

129,336.00

            Current assets

5,324,431.00

4,109,468.00

        Funds and Investments

 

 

          Financial assets carried at cost - non current

894,138.00

896,463.00

            Equity investments under equity method

1,178,364.00

1,259,245.00

          Investments

1,178,364.00

1,259,245.00

            Funds and long-term investments

2,072,502.00

2,155,708.00

        Fixed Assets

 

 

        Cost

 

 

          Land

33,576.00

33,576.00

          Buildings and structures

981,744.00

981,744.00

          Machinery and equipment

91,888.00

104,035.00

          Computer and telecommunication equipment

67,688.00

55,990.00

          Office equipment

8,611.00

26,796.00

          Other facilities

3,365.00

5,844.00

          Fixed assets cost

1,186,872.00

1,207,985.00

          Accumulated depreciation

-457,044.00

-433,254.00

            Fixed assets

729,828.00

774,731.00

        Intangible Assets

 

 

          Other intangible assets

557,064.00

263,401.00

            Intangible assets

557,064.00

263,401.00

        OtherAssets

 

 

          Guarantee deposits paid

899.00

740.00

          Deferred income tax assets - non current

0.00

38,000.00

          Other assets - other

15,939.00

15,906.00

            Other assets

16,838.00

54,646.00

            Assets

8,700,663.00

7,357,954.00

        Liabilities and Stockholders' Equity

 

 

        Liabilities

 

 

        Current Liabilities

 

 

          Accounts payable

706,641.00

427,559.00

          Accounts payable - related parties

2,038.00

1,096.00

          Income tax payable

101,490.00

83,198.00

          Accrued expenses

491,166.00

324,267.00

          Other payables

165,693.00

22,029.00

          Other current liabilities

194,521.00

196,397.00

            Current liabilities

1,661,549.00

1,054,546.00

        Long term Liabilities

 

 

          Long-term notes and accounts payable

149,854.00

0.00

            Long-term liabilities

149,854.00

0.00

        Reserves

 

 

        Other Liabilities

 

 

          Pension reserve / accrued pension liability

8,953.00

12,965.00

            Other liabilities

8,953.00

12,965.00

            Liabilities

1,820,356.00

1,067,511.00

        Stockholders' Equity

 

 

        Capital

 

 

          Common stock

4,036,075.00

3,980,270.00

          Advance receipts for common stock

7,111.00

8,990.00

          Stock dividend to be distributed

0.00

0.00

        Capital Surplus

 

 

          Capital surplus - additional paid-in capital

150,863.00

150,863.00

          Capital surplus - long-term equity investments

38,318.00

34,124.00

          Capital surplus - employee stock option

336,881.00

786,630.00

            Capital surplus

526,062.00

971,617.00

        Retained Earnings

 

 

          Legal reserve

1,182,467.00

1,170,554.00

          Special reserve

55,557.00

55,557.00

          Unappropriated retained earnings

1,130,376.00

157,782.00

            Retained earnings

2,368,400.00

1,383,893.00

        Stockholders' Equity and Other adjustmen

 

 

          Cumulative translation adjustments

-54,373.00

-42,768.00

          Unrealized gains (losses) on financial instruments

-2,968.00

-11,559.00

            Equity adjustments

-57,341.00

-54,327.00

          Stockholdersˉ equity

6,880,307.00

(USD 230,490,285)

6,290,443.00

(USD 210,729,841)

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

0.00

0.00

          

711,125.00

899,000.00

(As of 2013.7, 1 NTD = 0.0335 USD)

 

 

Profit and Loss Account

                                                                    Unit: NTD/000

Date

2012-1-1~2012-12-31

2011-1-1~2011-12-31

Sales

8,124,742.00

(USD 272,178,857)

5,362,953.00

 (USD 179,658,926)

          Sales returns

0.00

1,386.00

          Sales discounts and allowances

23,456.00

36,767.00

          Sales

8,101,286.00

5,324,800.00

          Operating income

8,101,286.00

5,324,800.00

          Operating costs

4,908,638.00

2,990,822.00

          Gross profit (loss) from operations

3,192,648.00

2,333,978.00

          Selling expense

155,578.00

130,325.00

          General and administrative expenses

235,158.00

189,250.00

          Research and development expenses

1,566,694.00

1,265,527.00

          Operating expenses

1,957,430.00

1,585,102.00

          Operating income (loss)

1,235,218.00

748,876.00

        Non-Operating Income

 

 

          Interest income

18,026.00

12,131.00

          Dividends

6,742.00

6,955.00

          Investment income

6,742.00

6,955.00

          Gains on sale of investments

1,342.00

0.00

          Foreign exchange gains

3,991.00

30,231.00

          Revaluation gain on financial assets

2,799.00

0.00

          Miscellaneous income

4,625.00

9,361.00

          Non-operating revenues and gains

37,525.00

58,678.00

        Non-Operating Expenses

 

 

          Losses from long-term equity investments under the equity method

84,786.00

180,662.00

          Investment loss

84,786.00

180,662.00

          Loss on sale of investments

0.00

3,521.00

          Impairment loss on assets

2,325.00

3,615.00

          Revaluation loss on financial assets

0.00

24,423.00

          Miscellaneous disbursements

11,024.00

14,559.00

          Non-operating expenses and losses

98,135.00

226,780.00

          Income from continuing operations before income tax

1,174,608.00

580,774.00

          Income tax expense (benefit)

109,639.00

461,645.00

          Income from continuing operations

1,064,969.00

119,129.00

          Net income (loss)

1,064,969.00

(USD 35,676,462)

119,129.00

(USD 3,990,822)

        Primary Earnings per Share

 

 

          Primary earnings per share

2.65

0.30

        Diluted earnings per share

 

 

          Diluted earnings per share

2.58

0.29

(As of 2013.7, 1 NTD = 0.0335 USD)

 

 

Cash Flow

 

Date

2012-1-1~2012-12-31

2011-1-1~2011-12-31

Cash Flows from Operating Activities - Indirect Method

 

 

 Net Income (Loss)

1,064,969.00

119,129.00

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

 

 

 Depreciation Expense

80,789.00

84,112.00

 Amortization Expense

243,067.00

195,368.00

 Provision (Reversal of Provision) for Bad Debts Losses

-1,600.00

7,215.00

 Share-based Compensation

2,838.00

7,671.00

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

54,485.00

51,105.00

 Investment Loss (Income) Recognized under Equity Method

84,786.00

180,662.00

 Loss (Gain) on Disposal of Investments

-1,342.00

3,521.00

 Unrealized Revaluation Loss (Gain) on Financial Assets and Liabilities

-2,799.00

24,423.00

 Impairment Losses on Financial Asset

2,325.00

3,615.00

 Changes in Operating Assets and Liabilities

 

 

 Decrease (Increase) in Notes Receivable

-3,291.00

17,965.00

 Decrease (Increase) in Notes Receivable - Related Parties

-474.00

0.00

 Decrease (Increase) in Accounts Receivable

-362,958.00

29,104.00

 Decrease (Increase) in Accounts Receivable - Related Parties

81,317.00

40,780.00

 Decrease (Increase) in Other Receivable- Related Parties

-9,483.00

7,404.00

 Decrease (Increase) in Inventories

-364,199.00

53,692.00

 Decrease (Increase) in Other Financial Assets

1,902.00

-1,180.00

 Decrease (Increase) in Deferred Tax Assets

13,221.00

387,102.00

 Decrease (Increase) in Other Operating Assets

-91,972.00

17,357.00

 Increase (Decrease) in Accounts Payable

279,082.00

-232,614.00

 Increase (Decrease) in Accounts Payable - Related Parties

942.00

-355.00

 Increase (Decrease) in Income Tax Payable

18,292.00

53,854.00

 Increase (Decrease) in Accrued Expenses

87,894.00

-70,268.00

 Increase (Decrease) in Other Payables

146,133.00

-113,784.00

 Increase (Decrease) in Accrued Pension Liabilities

-4,012.00

-1,098.00

 Increase (Decrease) in Other Operating Liabilities

-1,876.00

87,876.00

Net Cash Provided by (Used in) Operating Activities

1,318,036.00

952,656.00

Cash Flows from Investing Activities

 

 

 Acquisition of Available-for-sale Financial Assets

-221,140.00

-60,000.00

 Proceeds from Disposal of Available-for-sale Financial Assets

165,832.00

176,528.00

 Capital Reduction of Financial Assets Carried at Cost

0.00

4,500.00

 Acquisition of Investments Accounted for by Equity Method

-14,406.00

-44,143.00

 Purchase of Property, Plant and Equipment

-41,401.00

-22,954.00

 Decrease (Increase) in Refundable Deposits

-159.00

-37.00

 Decrease (Increase) in Restricted Assets

-33.00

-58.00

 Purchase of Intangible Assets

-304,824.00

-204,482.00

 Net Cash Provided by (Used in) Investing Activities

-416,131.00

-150,646.00

Cash Flows from Financing Activities

 

 

 Cash Dividends Paid

-603,465.00

-566,422.00

 Exercise of Employee Stock Options

124,341.00

246,885.00

 Net Cash Provided by (Used in) Financing Activities

-479,124.00

-319,537.00

Net Increase (Decrease) in Cash and Cash Equivalents

422,781.00

482,473.00

Cash and Cash Equivalents, Beginning of year

2,371,540.00

1,889,067.00

Cash and Cash Equivalents, End of year

2,794,321.00

2,371,540.00

Supplemental Cash Flow Information

 

 

 Income Tax Paid

78,126.00

20,679.00

Non-cash Investing and Financing Activities

 

 

 Unrealized Valuation Gains or Losses on Financial Instruments

8,591.00

-11,967.00

 Cumulative Translation Adjustments

-11,605.00

13,198.00

Investing Activities Affecting Both Cash and Non-cash Items

 

 

 Cash Paid for Acquisition of Property, Plant and Equipment

 

 

 Increase in Property, Plant and Equipment

38,932.00

26,440.00

 Increase (Decrease) in Payable for Equipment Purchased

2,469.00

-3,486.00

 Cash Paid for Acquisition of Property, Plant and Equipment

41,401.00

22,954.00

 

 

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

 

1

Trial Number:

2012,Chonglaosu, 2

Date of Trial:

2012-1-12

Reason:

Performance of Contract

2

Trial Number:

2011, Bu, 629

Date of Trial:

2011-7-25

Reason:

Performance of Contract

3

Trial Number:

2000, Su, 553

Date of Trial:

2000-11-17

Reason:

Certain for the relationship

 

 

Interview Details

 

Name

Ms. Lin

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

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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.