MIRA INFORM REPORT

Report Date :

19.07.2013

IDENTIFICATION DETAILS

Name :	GENERAL BIOLOGICAL CORP.

Registered Office :	No. 6, Innovation First Road, Hsinchu Science-Based Industrial Park, Baoshan, 300

Country :	Taiwan

Financials (as on) :	31.12.2012

Date of Incorporation :	11.06.1984

Legal Form :	Public Independent Company

Line of Business :	Subject is engaged in research, design, development, manufacture and distribution of medical diagnostic reagents

No. of Employees :	63

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but Correct
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 31^st 2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Taiwan

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

Company name & address

GENERAL BIOLOGICAL CORP.

No. 6, Innovation First Road

Hsinchu Science-Based Industrial Park

Baoshan, 300

Taiwan

Tel: 886-35-779221

Fax: 886-35-779227

Web: www.gbc.com.tw

synthesis

Employees: 63

Company Type: Public Independent

Traded: Gre Tai Security Market: 4117

Incorporation Date: 11-Jun-1984

Auditor: Ernst & Young LLP

Financials in: USD (Millions)

Fiscal Year End: 31-Dec-2012

Reporting Currency: Taiwanese New Dollar

Annual Sales: 6.0 1

Net Income: 0.5

Total Assets: 7.1 2

Market Value: 23.9 (05-Jul-2013)

Business Description

GENERAL BIOLOGICALS CORPORATION is a Taiwan-based company engaged in the research, design, development, manufacture and distribution of medical diagnostic reagents. The Company offers testing reagents for B, C and A hepatitis, acquired immunodeficiency syndrome (AIDS), severe acute respiratory syndrome (SARS) virus, hormones, human T-cell leukemia viruses, carcinoembryonic antigens (CEAs), alpha-fetoproteins, rapid human immunodeficiency virus (HIV), C rapid hepatitis and B hepatitis nucleic acid molecules. During the year ended December 31, 2011, the Company obtained approximately 36.66%, 29.5% and 24.91% of its total revenue from other testing reagents, B hepatitis testing reagents and C hepatitis testing reagents, respectively. For the fiscal year ended 31 December 2012, GENERAL BIOLOGICAL CORP. revenues increased 3% to NT$176.5M. Net income increased 98% to NT$14.9M. Revenues reflect Testing Drug-Testing segment increase of 8% to NT$59.2M, Testing Drug-Sales segment increase of 1% to NT$117.3M, Europe segment increase of 31% to NT$39.9M, Other Foreign segment increase of 81% to NT$5.7M. Net income benefited from Miscellaneous Income increase of 46% to NT$23M (income).

Industry

Industry Biotechnology and Drugs

ANZSIC 2006: 1841 - Human Pharmaceutical and Medicinal Product Manufacturing

NACE 2002: 2442 - Manufacture of pharmaceutical preparations

NAICS 2002: 325412 - Pharmaceutical Preparation Manufacturing

UK SIC 2003: 24421 - Manufacture of medicaments

UK SIC 2007: 2120 - Manufacture of pharmaceutical preparations

US SIC 1987: 2834 - Pharmaceutical Preparations

Key Executives

Name	Title
Mingshan Liu	General Manager
Liting Huang	Head of Finance
Menghui Lin	IR Contact Officer
Zongqing Lin	Chairman of the Board
Haishan Jian	Independent Director

Financial Summary

As of 31-Dec-2012

Key Ratios	Company	Industry
Current Ratio (MRQ)	2.72	2.09
Quick Ratio (MRQ)	2.21	1.48
Debt to Equity (MRQ)	0.09	0.43
Sales 5 Year Growth	-4.93	4.13
Net Profit Margin (TTM) %	10.25	17.06
Return on Assets (TTM) %	9.09	9.59
Return on Equity (TTM) %	10.20	18.98

Stock Snapshot

Traded: Gre Tai Security Market: 4117

As of 5-Jul-2013

Financials in: TWD

Recent Price	28.35	EPS	0.59
52 Week High	43.50	Price/Sales	4.05
52 Week Low	4.80	Price/Earnings	18.32
Avg. Volume (mil)	0.07	Price/Book	4.58
Market Value (mil)	715.16	Beta	0.70

	Price % Change	Rel S&P 500%
4 Week	-0.53%	0.63%
13 Week	23.26%	22.34%
52 Week	302.13%	271.28%
Year to Date	162.50%	152.57%

1 - Profit & Loss Item Exchange Rate: USD 1 = TWD 29.57962

2 - Balance Sheet Item Exchange Rate: USD 1 = TWD 29.012

Corporate Overview

Location

No. 6, Innovation First Road

Hsinchu Science-Based Industrial Park

Baoshan, 300

Taiwan

Tel: 886-35-779221

Fax: 886-35-779227

Web: www.gbc.com.tw

Quote Symbol - Exchange

4117 - Gre Tai Security Market

Sales TWD(mil): 176.5

Assets TWD(mil): 205.7

Employees: 63

Fiscal Year End: 31-Dec-2012

Industry: Biotechnology and Drugs

Incorporation Date: 11-Jun-1984

Company Type: Public Independent

Quoted Status: Quoted

Chairman of the Board: Zongqing Lin

Industry Codes

ANZSIC 2006 Codes:

1841 - Human Pharmaceutical and Medicinal Product Manufacturing

NACE 2002 Codes:

2442 - Manufacture of pharmaceutical preparations

NAICS 2002 Codes:

325412 - Pharmaceutical Preparation Manufacturing

US SIC 1987:

2834 - Pharmaceutical Preparations

UK SIC 2003:

24421 - Manufacture of medicaments

UK SIC 2007:

2120 - Manufacture of pharmaceutical preparations

Business Description

Financial Data

Financials in:	TWD(mil)

Revenue:	176.5
Net Income:	14.9
Assets:	205.7
Long Term Debt:	0.0
Total Liabilities:	49.4
Working Capital:	0.1

Date of Financial Data:	31-Dec-2012

1 Year Growth

3.0%

98.2%

6.9%

Market Data

Quote Symbol:	4117
Exchange:	Gre Tai Security Market
Currency:	TWD
Stock Price:	28.4
Stock Price Date:	07-05-2013
52 Week Price Change %:	302.1
Market Value (mil):	715,157.1

SEDOL:	B064FR7
ISIN:	TW0004117007

Equity and Dept Distribution:
The Company started to report quaterly consolidated fncl. from 06/06. 01/2005, 54-for-100 Complex capital change (Factor: 0.54). FY'01 fncls. are CLA. 12/2007, Rights Issue, 40 new shares for every 100 shares held @ TWD6 (Factor:1.083019).FY'08 Ann I/S is CLA.FY'08 I/S Semi2 is being CLA.FY'09 I/S Semi1 is being CLA.

Key Corporate Relationships

Auditor:	Ernst & Young LLP

Auditor:	Ernst & Young LLP

Executive report

Board of Directors

Name

Title

Function

Zongqing Lin

Chairman of the Board

Chairman

Biography:

Lin Zongqing has been serving as Chairman of the Board in GENERAL BIOLOGICALS CORP. since June 10, 2013. Lin is also General Manager in another company. Lin used to be Chief Strategic Officer of the Company. Lin used to be General Manager in a technology company.

Compensation/Salary:1,760,000

Compensation Currency: TWD

Haishan Jian

Independent Director

Director/Board Member

Biography:

Jian Haishan has been Independent Director of GENERAL BIOLOGICALS CORP. since June 28, 2013. Jian currently also serves as President and Chief Operating Officer of TWIBIOTECHNOLOGY COMPAN.

Mengde Lin

Director

Director/Board Member

Zhongyu Wang

Director

Director/Board Member

Biography:

Wang Zhongyu has been Director in GENERAL BIOLOGICALS CORP. since June 24, 2010. Wang is Vice Chairman of the Board in Tong Lung Metal Industry Co., Ltd, and Independent Director in a trust financial holdings company.

Marietta Hui Wu

Independent Director

Director/Board Member

Biography:

Dr. Marietta Hui Wu is Independent Director of GENERAL BIOLOGICALS CORP. She currently also serves as Managing Director of Burrill & Company Venture Capital Group.

Education:

Ohio University, PHD
University of Michigan, MBA

Mingzhi Xuan

Director

Director/Board Member

Biography:

Xuan Mingzhi has been Director in GENERAL BIOLOGICALS CORP. since June 24, 2010. Xuan is Honorary Vice Chairman of the Board in Unimicron Technology Corporation.

Age: 61

Education:

National Chiao Tung University, B (Electronics Engineering)

Zheren Zhuang

Independent Director

Director/Board Member

Executives

Name

Title

Function

Mingshan Liu

General Manager

Division Head Executive

Biography:

Liu Mingshan is General Manager in GENERAL BIOLOGICALS CORP. Liu is also Chief Executive Officer in eGENE INC. Liu holds a Master's degree in Biochemistry from National Taiwan University, and a Doctorate's degree in Obstetrics and Gynecology from University of British Columbia, Canada.

Education:

University of British Columbia, PHD
National Taiwan University, M (Biochemistry)

Liting Huang

Head of Finance

Finance Executive

Biography:

Huang Liting has been Head of Finance in GENERAL BIOLOGICALS CORP. since February 9, 2010. Huang used to be Head-Accounting of the Company.

Menghui Lin

IR Contact Officer

Investor Relations Executive

Significant Developments

General Biologicals Corp to Issue New Shares Jul 10, 2013

General Biologicals Corp announced that it will issue 8 million common shares with par value of NTD 10 per share at NTD 23 per share. 15% of the new shares (1,200,000 shares) will be offered to the Company's employees and the remaining 85% will be offered to the Company's existing shareholders. The proceeds will be used for business operation.

General Biologicals Corp Announces Change of General Manager Jun 10, 2013

General Biologicals Corp announced that it has appointed Liu Mingshan as General Manager, to replace Lin Zongqing, due to position adjustment, effective June 10, 2013.

General Biologicals Corp Announces No Dividend Payment for FY 2012 Apr 11, 2013

General Biologicals Corp announced that it will pay no dividend to shareholders for fiscal year 2012.

General Biologicals Corp to Issue New Shares Apr 11, 2013

General Biologicals Corp announced that it will issue 5 million common shares with par value of NTD 10 per share at NTD 23 per share. 10% of the new shares will be offered to the Company's employees and the remaining 90% will be offered to the Company's existing shareholders.

General Biologicals Corp to Issue New Shares Dec 26, 2012

General Biologicals Corp announced that it will issue 5 million common shares with par value of NTD 10 per share at NTD 15 per share. 10% of the new shares will be offered to the Company's employees and the remaining 90% will be offered to the Company's existing shareholders.

Annual Income Statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2012	Reclassified Normal 31-Dec-2012	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009
Filed Currency	TWD	TWD	TWD	TWD	TWD
Exchange Rate (Period Average)	29.57962	29.39004	31.497037	33.023867	31.543497
Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified with Explanation	Unqualified	Unqualified	Unqualified

Gross Revenue	6.0	5.9	5.9	5.6	6.3
Sales Returns and Allowances	0.0	0.0	0.0	0.0	-0.1
Revenue	6.0	5.8	5.8	5.6	6.3
Total Revenue	6.0	5.8	5.8	5.6	6.3

Cost of Revenue	2.3	2.3	2.6	3.0	3.1
Cost of Revenue, Total	2.3	2.3	2.6	3.0	3.1
Gross Profit	3.7	3.5	3.3	2.7	3.2

Selling/General/Administrative Expense	2.7	2.4	2.4	2.2	2.7
Total Selling/General/Administrative Expenses	2.7	2.4	2.4	2.2	2.7
Research & Development	1.2	1.4	0.8	0.6	0.7
Impairment-Assets Held for Use	-	-	0.0	0.1	0.1
Unusual Expense (Income)	-	-	0.0	0.1	0.1
Total Operating Expense	6.1	6.1	5.8	5.9	6.6

Operating Income	-0.2	-0.3	0.1	-0.3	-0.3

Interest Expense - Non-Operating	0.0	0.0	0.0	-0.1	-0.1
Interest Expense, Net Non-Operating	0.0	0.0	0.0	-0.1	-0.1
Interest Income - Non-Operating	0.0	0.0	0.0	0.0	0.0
Investment Income - Non-Operating	0.0	0.0	-0.1	0.0	0.1
Interest/Investment Income - Non-Operating	0.0	0.0	-0.1	0.0	0.2
Interest Income (Expense) - Net Non-Operating Total	0.0	0.0	-0.1	-0.1	0.1
Gain (Loss) on Sale of Assets	0.0	0.0	0.0	0.0	0.1
Other Non-Operating Income (Expense)	0.8	0.6	0.2	0.2	0.1
Other, Net	0.8	0.6	0.2	0.2	0.1
Income Before Tax	0.6	0.3	0.2	-0.2	-0.1

Total Income Tax	0.0	0.0	0.0	0.0	0.1
Income After Tax	0.6	0.3	0.2	-0.2	-0.2

Minority Interest	-0.1	0.0	0.0	0.0	0.0
Net Income Before Extraord Items	0.5	0.3	0.2	-0.2	-0.2
Net Income	0.5	0.3	0.2	-0.2	-0.2

Income Available to Common Excl Extraord Items	0.5	0.3	0.2	-0.2	-0.2

Income Available to Common Incl Extraord Items	0.5	0.3	0.2	-0.2	-0.2

Basic/Primary Weighted Average Shares	25.2	25.2	25.2	25.2	21.3
Basic EPS Excl Extraord Items	0.02	0.01	0.01	-0.01	-0.01
Basic/Primary EPS Incl Extraord Items	0.02	0.01	0.01	-0.01	-0.01
Dilution Adjustment	0.0	0.0	0.0	0.0	0.0
Diluted Net Income	0.5	0.3	0.2	-0.2	-0.2
Diluted Weighted Average Shares	25.4	25.3	25.2	25.2	21.3
Diluted EPS Excl Extraord Items	0.02	0.01	0.01	-0.01	-0.01
Diluted EPS Incl Extraord Items	0.02	0.01	0.01	-0.01	-0.01
Dividends per Share - Common Stock Primary Issue	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Interest Expense, Supplemental	0.0	0.0	0.0	0.1	0.1
Depreciation, Supplemental	0.5	0.5	0.5	0.5	0.5
Total Special Items	0.0	0.0	0.0	0.1	0.1
Normalized Income Before Tax	0.6	0.3	0.2	-0.1	0.0

Effect of Special Items on Income Taxes	0.0	0.0	0.0	0.0	0.0
Inc Tax Ex Impact of Sp Items	0.0	0.0	0.0	0.0	0.1
Normalized Income After Tax	0.6	0.3	0.2	-0.1	-0.1

Normalized Inc. Avail to Com.	0.5	0.3	0.2	-0.1	-0.1

Basic Normalized EPS	0.02	0.01	0.01	0.00	0.00
Diluted Normalized EPS	0.02	0.01	0.01	0.00	0.00
Amort of Intangibles, Supplemental	0.1	0.1	0.1	0.0	0.0
Research & Development Exp, Supplemental	1.2	1.4	0.8	0.6	0.7
Normalized EBIT	-0.2	-0.3	0.1	-0.2	-0.2
Normalized EBITDA	0.4	0.3	0.6	0.4	0.3
Current Tax - Domestic	-0.1	-0.1	0.0	0.0	0.0
Current Tax - Total	-0.1	-0.1	0.0	0.0	0.0
Deferred Tax - Total	-	-	-	0.0	0.1
Deferred Tax - Total	-	-	-	0.0	0.1
Other Tax	0.1	0.1	0.0	0.0	0.0
Income Tax - Total	0.0	0.0	0.0	0.0	0.1
Interest Cost - Domestic	0.0	0.0	0.0	0.0	0.0
Service Cost - Domestic	0.0	0.0	0.0	0.0	0.0
Expected Return on Assets - Domestic	0.0	0.0	0.0	0.0	0.0
Transition Costs - Domestic	0.0	0.0	0.0	0.0	0.0
Other Pension, Net - Domestic	-	0.0	0.0	0.0	0.0
Domestic Pension Plan Expense	0.0	0.1	0.1	0.1	0.1
Defined Contribution Expense - Domestic	0.0	0.0	0.0	0.1	0.1
Total Pension Expense	0.1	0.1	0.1	0.1	0.2
Discount Rate - Domestic	1.75%	2.00%	2.00%	2.25%	2.50%
Expected Rate of Return - Domestic	1.75%	2.00%	2.00%	2.25%	2.50%
Compensation Rate - Domestic	1.00%	1.00%	1.00%	1.00%	5.00%
Total Plan Interest Cost	0.0	0.0	0.0	0.0	0.0
Total Plan Service Cost	0.0	0.0	0.0	0.0	0.0
Total Plan Expected Return	0.0	0.0	0.0	0.0	0.0
Total Plan Other Expense	-	0.0	0.0	0.0	0.0

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
UpdateType/Date	Updated Normal 31-Dec-2012	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Reclassified Normal 31-Dec-2010	Updated Normal 31-Dec-2008
Filed Currency	TWD	TWD	TWD	TWD	TWD
Exchange Rate	29.011999	30.279	29.1565	31.985	32.818
Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified with Explanation	Unqualified	Unqualified	Unqualified

Cash & Equivalents	1.5	0.8	2.2	1.9	2.6
Cash and Short Term Investments	1.5	0.8	2.2	1.9	2.6
Accounts Receivable - Trade, Gross	1.3	1.2	0.9	1.2	1.1
Provision for Doubtful Accounts	0.0	0.0	0.0	0.0	0.0
Trade Accounts Receivable - Net	1.3	1.2	0.9	1.2	1.1
Notes Receivable - Short Term	0.1	0.2	0.2	0.2	0.2
Other Receivables	0.0	0.1	0.1	0.1	0.0
Total Receivables, Net	1.4	1.4	1.1	1.5	1.2
Inventories - Finished Goods	0.3	0.2	0.2	0.2	0.2
Inventories - Work In Progress	0.3	0.2	0.5	0.5	0.5
Inventories - Raw Materials	0.2	0.1	0.2	0.1	0.1
Inventories - Other	0.0	0.0	0.0	-0.1	-0.1
Total Inventory	0.7	0.5	0.8	0.7	0.7
Prepaid Expenses	0.1	0.1	0.2	0.1	0.1
Restricted Cash - Current	0.1	-	-	0.0	-
Other Current Assets, Total	0.1	-	-	0.0	-
Total Current Assets	3.9	2.9	4.3	4.3	4.6

Buildings	3.1	3.0	3.0	2.8	2.7
Machinery/Equipment	6.7	6.3	6.4	6.9	7.2
Construction in Progress	0.1	0.0	0.1	0.1	0.0
Other Property/Plant/Equipment	-	-	-	-	0.0
Property/Plant/Equipment - Gross	9.8	9.3	9.5	9.8	9.9
Accumulated Depreciation	-7.6	-6.7	-6.5	-6.9	-6.9
Property/Plant/Equipment - Net	2.3	2.7	3.0	2.9	3.0
Goodwill, Net	0.1	-	-	-	-
Intangibles, Net	0.8	0.4	0.2	0.1	0.1
LT Investments - Other	0.1	0.4	0.6	0.1	0.1
Long Term Investments	0.1	0.4	0.6	0.1	0.1
Pension Benefits - Overfunded	0.0	0.0	0.0	0.1	0.0
Deferred Income Tax - Long Term Asset	-	-	-	-	0.0
Restricted Cash - Long Term	0.0	0.0	0.1	0.4	0.2
Other Long Term Assets	0.0	0.0	0.0	0.0	0.0
Other Long Term Assets, Total	0.0	0.0	0.2	0.5	0.3
Total Assets	7.1	6.4	8.2	7.9	8.0

Accounts Payable	0.2	0.2	0.3	0.3	0.2
Accrued Expenses	0.7	0.2	0.3	0.3	0.3
Notes Payable/Short Term Debt	0.5	0.7	1.1	0.7	0.8
Current Portion - Long Term Debt/Capital Leases	0.0	0.3	0.3	0.3	0.3
Customer Advances	-	-	0.1	0.0	-
Other Current Liabilities	0.1	0.1	-	-	0.0
Other Current liabilities, Total	0.1	0.1	0.1	0.0	0.0
Total Current Liabilities	1.4	1.5	2.0	1.7	1.5

Long Term Debt	-	-	0.3	0.5	0.9
Capital Lease Obligations	-	-	-	-	0.0
Total Long Term Debt	0.0	0.0	0.3	0.5	0.9
Total Debt	0.5	1.0	1.7	1.5	2.0

Minority Interest	-0.2	0.0	0.9	0.8	0.7
Pension Benefits - Underfunded	0.5	0.4	0.6	0.8	0.7
Other Long Term Liabilities	0.0	0.0	0.0	0.0	0.0
Other Liabilities, Total	0.5	0.4	0.6	0.8	0.7
Total Liabilities	1.7	1.9	3.7	3.8	3.9

Common Stock	8.7	8.3	8.7	7.9	7.7
Common Stock	8.7	8.3	8.7	7.9	7.7
Additional Paid-In Capital	0.3	0.1	-	-	-
Retained Earnings (Accumulated Deficit)	-3.2	-3.5	-3.9	-3.8	-3.5
Unrealized Gain (Loss)	-0.2	-0.2	-0.1	-	-0.1
Translation Adjustment	0.0	-	-	-	0.0
Minimum Pension Liability Adjustment	-0.3	-0.2	-0.2	0.0	0.0
Other Equity, Total	-0.3	-0.2	-0.2	0.0	0.0
Total Equity	5.4	4.5	4.5	4.1	4.1

Total Liabilities & Shareholdersâ€™ Equity	7.1	6.4	8.2	7.9	8.0

Shares Outstanding - Common Stock Primary Issue	25.2	25.2	25.2	25.2	25.2
Total Common Shares Outstanding	25.2	25.2	25.2	25.2	25.2
Treasury Shares - Common Stock Primary Issue	0.0	0.0	0.0	0.0	0.0
Employees	63	57	72	79	84
Number of Common Shareholders	899	497	-	-	394
Accumulated Intangible Amort, Suppl.	0.6	0.5	0.5	0.4	0.4
Deferred Revenue - Current	0.1	0.1	0.1	0.0	-
Total Operating Leases, Supplemental	0.0	0.0	-	-	-
Operating Lease Payments Due in Year 1	0.0	0.0	-	-	-
Oper. Lse. Pymts. Due in Year 6 & Beyond	0.0	0.0	-	-	-
Pension Obligation - Domestic	0.6	0.5	0.8	-	0.9
Plan Assets - Domestic	0.1	0.1	0.1	-	0.1
Funded Status - Domestic	-0.5	-0.4	-0.7	-	-0.8
Accumulated Obligation - Domestic	0.6	0.4	0.7	-	0.7
Total Funded Status	-0.5	-0.4	-0.7	-	-0.8
Discount Rate - Domestic	1.75%	2.00%	2.00%	-	2.50%
Expected Rate of Return - Domestic	1.75%	2.00%	2.00%	-	2.50%
Compensation Rate - Domestic	1.00%	1.00%	1.00%	-	5.00%
Prepaid Benefits - Domestic	0.0	0.0	0.0	0.1	0.0
Accrued Liabilities - Domestic	-0.5	-0.4	-0.6	-0.8	-0.7
Net Assets Recognized on Balance Sheet	-0.5	-0.4	-0.6	-0.7	-0.6
Total Plan Obligations	0.6	0.5	0.8	-	0.9
Total Plan Assets	0.1	0.1	0.1	-	0.1

Annual Cash Flows

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2012	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Restated Normal 31-Dec-2010	Updated Normal 31-Dec-2008
Filed Currency	TWD	TWD	TWD	TWD	TWD
Exchange Rate (Period Average)	29.57962	29.39004	31.497037	33.023867	31.543497
Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified with Explanation	Unqualified	Unqualified	Unqualified

Net Income/Starting Line	0.6	0.3	0.2	-0.2	-0.2
Depreciation	0.5	0.5	0.5	0.5	0.5
Depreciation/Depletion	0.5	0.5	0.5	0.5	0.5
Amortization of Intangibles	0.1	0.1	0.1	0.0	0.0
Amortization	0.1	0.1	0.1	0.0	0.0
Deferred Taxes	-	-	-	-	0.1
Unusual Items	0.0	0.0	0.1	0.2	0.0
Equity in Net Earnings (Loss)	-	-	-	-	0.0
Other Non-Cash Items	0.3	0.1	0.0	0.0	-0.1
Non-Cash Items	0.3	0.1	0.1	0.2	-0.1
Accounts Receivable	0.0	-0.3	0.5	-0.3	0.8
Inventories	-0.2	0.3	-0.1	-0.1	-0.1
Prepaid Expenses	0.0	0.1	-0.1	0.0	0.0
Other Assets	-	-	-	-	0.0
Accounts Payable	-0.4	-0.1	-0.1	0.1	0.0
Accrued Expenses	0.0	0.0	-0.1	0.1	-0.4
Other Liabilities	0.0	-0.2	-0.2	0.0	0.0
Changes in Working Capital	-0.5	-0.3	-0.1	-0.2	0.3
Cash from Operating Activities	1.0	0.7	0.7	0.4	0.6

Purchase of Fixed Assets	-0.1	-0.3	-0.3	-0.3	-1.1
Purchase/Acquisition of Intangibles	-0.1	-0.1	-0.1	-0.1	-0.1
Capital Expenditures	-0.2	-0.5	-0.4	-0.4	-1.2
Sale of Fixed Assets	0.0	0.0	0.0	0.0	0.3
Sale/Maturity of Investment	-	-	-	-	0.3
Purchase of Investments	0.0	-0.3	-0.2	-	-
Other Investing Cash Flow	0.2	0.1	0.3	-0.2	0.4
Other Investing Cash Flow Items, Total	0.2	-0.2	0.1	-0.2	1.0
Cash from Investing Activities	0.0	-0.7	-0.3	-0.6	-0.2

Other Financing Cash Flow	0.0	-1.0	0.0	-	-
Financing Cash Flow Items	0.0	-1.0	0.0	-	-
Sale/Issuance of Common	-	-	-	-	1.5
Common Stock, Net	-	-	-	-	1.5
Issuance (Retirement) of Stock, Net	-	-	-	-	1.5
Short Term Debt, Net	-0.2	0.0	-0.1	-	0.0
Long Term Debt, Net	-0.3	-0.3	-0.3	-0.4	0.0
Issuance (Retirement) of Debt, Net	-0.5	-0.3	-0.4	-0.4	0.0
Cash from Financing Activities	-0.5	-1.3	-0.4	-0.4	1.5

Net Change in Cash	0.6	-1.3	0.1	-0.7	1.9

Net Cash - Beginning Balance	0.9	2.2	2.0	2.5	0.8
Net Cash - Ending Balance	1.5	0.9	2.0	1.9	2.7
Cash Interest Paid	0.0	0.0	0.0	0.1	0.1
Cash Taxes Paid	0.0	-	0.0	0.0	0.0

Annual Income Statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2012	Reclassified Normal 31-Dec-2012	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009
Filed Currency	TWD	TWD	TWD	TWD	TWD
Exchange Rate (Period Average)	29.57962	29.39004	31.497037	33.023867	31.543497
Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified with Explanation	Unqualified	Unqualified	Unqualified

Gross Sales	6.0	5.9	5.9	5.6	6.3
Sales Returns	0.0	0.0	0.0	0.0	0.0
Sales Discounts and Allowances	0.0	0.0	0.0	0.0	0.0
Total Revenue	6.0	5.8	5.8	5.6	6.3

Cost of Sales	2.3	2.3	2.6	3.0	3.1
Impairment Loss of Assets	-	-	0.0	0.1	0.1
Selling Expenses	1.9	1.7	1.7	1.7	2.2
General and Administrative Expenses	0.8	0.7	0.7	0.6	0.6
Research and Development Expenses	1.2	1.4	0.8	0.6	0.7
Reversal of Bad Debts	0.0	0.0	-	0.0	-0.1
Total Operating Expense	6.1	6.1	5.8	5.9	6.6

Interest Income	0.0	0.0	0.0	0.0	0.0
Gain on Sale of Fixed Assets	-	-	0.0	0.0	0.1
Gain on Sales of LT Investment	-	-	-	0.0	0.1
Rent Income	0.0	0.0	0.0	0.0	-
Miscellaneous Income	0.8	0.5	0.2	0.2	0.1
Interest Expenses	0.0	0.0	0.0	-0.1	-0.1
Loss on Equity Investment	-	-	-	0.0	0.0
Loss on Sale of Fixed Assets	0.0	0.0	0.0	0.0	0.0
Gain/Loss on Foreign Exchange	0.0	0.0	-0.1	0.0	0.1
Miscellaneous Disbursements	-	-	0.0	0.0	0.0
Net Income Before Taxes	0.6	0.3	0.2	-0.2	-0.1

Provision for Income Taxes	0.0	0.0	0.0	0.0	0.1
Net Income After Taxes	0.6	0.3	0.2	-0.2	-0.2

Minority Interests	-0.1	0.0	0.0	0.0	0.0
Net Income Before Extra. Items	0.5	0.3	0.2	-0.2	-0.2
Net Income	0.5	0.3	0.2	-0.2	-0.2

Income Available to Com Excl ExtraOrd	0.5	0.3	0.2	-0.2	-0.2

Income Available to Com Incl ExtraOrd	0.5	0.3	0.2	-0.2	-0.2

Basic Weighted Average Shares	25.2	25.2	25.2	25.2	21.3
Basic EPS Excluding ExtraOrdinary Items	0.02	0.01	0.01	-0.01	-0.01
Basic EPS Including ExtraOrdinary Items	0.02	0.01	0.01	-0.01	-0.01
Dilution Adjustment	0.0	0.0	0.0	0.0	0.0
Diluted Net Income	0.5	0.3	0.2	-0.2	-0.2
Diluted Weighted Average Shares	25.4	25.3	25.2	25.2	21.3
Diluted EPS Excluding ExtraOrd Items	0.02	0.01	0.01	-0.01	-0.01
Diluted EPS Including ExtraOrd Items	0.02	0.01	0.01	-0.01	-0.01
DPS-Ordinary Shares	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Normalized Income Before Taxes	0.6	0.3	0.2	-0.1	0.0

Inc Tax Ex Impact of Sp Items	0.0	0.0	0.0	0.0	0.1
Normalized Income After Taxes	0.6	0.3	0.2	-0.1	-0.1

Normalized Inc. Avail to Com.	0.5	0.3	0.2	-0.1	-0.1

Basic Normalized EPS	0.02	0.01	0.01	0.00	0.00
Diluted Normalized EPS	0.02	0.01	0.01	0.00	0.00
Interest Expenses	0.0	0.0	0.0	0.1	0.1
Research and Development	1.2	1.4	0.8	0.6	0.7
Depreciation - Operating Cost	0.1	0.1	0.1	0.1	0.1
Depreciation - Operating Expense	0.4	0.4	0.4	0.4	0.4
Amortization - Operating Expense	0.1	0.1	0.1	0.0	0.0
Current Tax	-0.1	-0.1	0.0	0.0	0.0
Current Tax - Total	-0.1	-0.1	0.0	0.0	0.0
Deferred Tax	-	-	-	0.0	0.1
Deferred Tax - Total	-	-	-	0.0	0.1
Other Tax	0.1	0.1	0.0	0.0	0.0
Income Tax - Total	0.0	0.0	0.0	0.0	0.1
Service Cost	0.0	0.0	0.0	0.0	0.0
Interest Cost	0.0	0.0	0.0	0.0	0.0
Expected Return on Plan Assets	0.0	0.0	0.0	0.0	0.0
Amort. of Transition Cost	0.0	0.0	0.0	0.0	0.0
Under Estimate on Pension	-	-	0.0	0.0	0.0
Other Pension, Net - Domestic	-	0.0	0.0	-	-
Domestic Pension Plan Expense	0.0	0.1	0.1	0.1	0.1
Defined Contribution Expense - Domestic	0.0	0.0	0.0	0.1	0.1
Total Pension Expense	0.1	0.1	0.1	0.1	0.2
Discount Rate	1.75%	2.00%	2.00%	2.25%	2.50%
Rate of Compensation Increase	1.00%	1.00%	1.00%	1.00%	5.00%
Expected Return on Plan Assets	1.75%	2.00%	2.00%	2.25%	2.50%

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
UpdateType/Date	Updated Normal 31-Dec-2012	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Reclassified Normal 31-Dec-2010	Updated Normal 31-Dec-2008
Filed Currency	TWD	TWD	TWD	TWD	TWD
Exchange Rate	29.011999	30.279	29.1565	31.985	32.818
Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified with Explanation	Unqualified	Unqualified	Unqualified

Cash and Cash Equivalents	1.5	0.8	2.2	1.9	2.6
Notes Receivable	0.1	0.2	0.2	0.2	0.2
Accounts Receivable, Gross	1.3	1.2	0.9	1.2	1.1
Provision for Doubtful Accounts	0.0	0.0	0.0	0.0	0.0
Provision for Sales Discount	-	-	-	-	0.0
Other Receivables	0.0	0.1	0.1	0.1	0.0
Other Receivables - Related Parties	0.0	-	-	-	-
Raw Material	0.0	0.0	0.0	0.0	0.0
Supplies	0.1	0.1	0.2	0.1	0.1
Work-in-Process	0.3	0.2	0.5	0.5	0.5
Finished Goods	0.1	0.1	0.1	0.1	0.1
Goods	0.2	0.1	0.1	0.1	0.1
Provision/Allowance for Inventory	0.0	0.0	0.0	-0.1	-0.1
Restricted Deposits	0.1	-	-	0.0	-
Prepayment & Other Current Assets	0.1	0.1	0.2	0.1	0.1
Total Current Assets	3.9	2.9	4.3	4.3	4.6

Long Term Investment - Cost Method	-	-	-	-	0.0
Prepayment for Long Term Investment	0.0	0.3	0.3	0.0	-
Financial Assets - Hold for Sale	0.0	0.1	0.2	0.0	0.0
Financial Assets Valuation - Cost Method	0.1	0.1	0.1	0.0	0.0
Buildings and Structures	2.4	2.3	2.3	2.0	2.0
Machinery and Equipment	6.1	5.8	5.9	6.3	6.6
Transportation Equipment	0.0	0.0	0.1	0.1	0.1
Office Equipment	0.3	0.3	0.3	0.4	0.4
Leasehold Assets	-	-	-	-	0.0
Leasehold Improvement	0.6	0.6	0.7	0.7	0.7
Miscellaneous Equipment	0.2	0.2	0.2	0.2	0.2
Accumulated Depreciation	-7.6	-6.7	-6.5	-6.9	-6.9
Construction in Progress	-	-	-	-	0.0
Prepayment for Equipment	-	-	-	-	0.0
Con. in Pro. & Prepay. for Equipment	0.1	0.0	0.1	0.1	-
Trademarks	0.0	0.0	-	-	-
Patents	0.0	0.0	-	-	-
Computer Software	0.0	0.0	0.1	0.1	0.0
Goodwill	0.1	-	-	-	-
Deferred Pension Cost	0.0	0.0	0.0	0.1	0.0
Technology Know - How	0.6	0.2	0.1	-	0.0
Other Intangibles Asserts	0.1	0.1	0.0	0.0	0.1
Security Deposits Paid	0.0	0.0	0.0	0.0	0.0
Deferred Income Tax Assets - Non Current	-	-	-	-	0.0
Restricted Bank Deposits	0.0	0.0	0.1	0.4	0.2
Total Assets	7.1	6.4	8.2	7.9	8.0

Short Term Borrowings	0.1	0.2	0.2	0.3	0.3
Notes Payable	0.4	0.5	0.5	0.4	0.5
Other Notes Payables	-	-	0.3	-	-
Accounts Payable	0.1	0.2	0.3	0.3	0.2
Accounts Payable - Related Parties	0.1	-	-	-	-
Accrued Expenses	0.7	0.2	0.3	0.3	0.3
Accrued Expenses-Related Party	0.0	0.0	0.0	0.0	-
Current Portion of Long Term Debt	0.0	0.3	0.3	0.3	0.3
Current Portion of Lease Payment	-	-	-	-	0.0
Other Current Liabilities	0.1	0.1	-	-	0.0
Advance Receipts&Other Current Liab	-	-	0.1	0.0	-
Total Current Liabilities	1.4	1.5	2.0	1.7	1.5

Long Term Borrowings	-	-	0.3	0.5	0.9
Lease Payable	-	-	-	-	0.0
Total Long Term Debt	-	-	0.3	0.5	0.9

Accrued Pension Liabilities	0.5	0.4	0.6	0.8	0.7
Long Term Security Deposits Received	0.0	0.0	0.0	0.0	0.0
Other Liabilities	-	-	-	-	0.0
Minority Interest	-0.2	0.0	0.9	0.8	0.7
Total Liabilities	1.7	1.9	3.7	3.8	3.9

Common Stock	8.7	8.3	8.7	7.9	7.7
Employee Stock Option	0.3	0.1	-	-	-
Capital Surplus, LT Equity Investments	0.0	-	-	-	-
Retained Earnings	-3.2	-3.5	-3.9	-3.8	-3.5
Cumulative Translation Adjustment	0.0	-	-	-	0.0
Net Loss Not Recognized as Pension Cost	-0.3	-0.2	-0.2	0.0	0.0
Unrealized Gain/Loss on Fncl. Assets	-0.2	-0.2	-0.1	-	-0.1
Total Equity	5.4	4.5	4.5	4.1	4.1

Total Liabilities & Shareholders' Equity	7.1	6.4	8.2	7.9	8.0

S/O-Ordinary Shares	25.2	25.2	25.2	25.2	25.2
Total Common Shares Outstanding	25.2	25.2	25.2	25.2	25.2
T/S-Ordinary Shares	0.0	0.0	0.0	0.0	0.0
Deferred Revenue - Current	0.1	0.1	0.1	0.0	-
Accumulated Intangible Amortization	0.6	0.5	0.5	0.4	0.4
Full-Time Employees	63	57	72	79	84
Number of Common Shareholders	899	497	-	-	394
Operating Lease Pymts. Due within 1Year	0.0	0.0	-	-	-
Total Operating Leases, Supplemental	0.0	0.0	-	-	-
Accumulated Benefit Obligation	0.6	0.4	0.7	-	0.7
Projected Benefit Obligation	0.6	0.5	0.8	-	0.9
Fair Value of Plan Assets	0.1	0.1	0.1	-	0.1
Funed Status	-0.5	-0.4	-0.7	-	-0.8
Total Funded Status	-0.5	-0.4	-0.7	-	-0.8
Discount Rate	1.75%	2.00%	2.00%	-	2.50%
Rate of Compensation Increase	1.00%	1.00%	1.00%	-	5.00%
Expected Return on Plan Assets	1.75%	2.00%	2.00%	-	2.50%
Deferred Pension Cost	0.0	0.0	0.0	0.1	0.0
Accrued Pension Liabilites	-0.5	-0.4	-0.6	-0.8	-0.7
Net Assets Recognized on Balance Sheet	-0.5	-0.4	-0.6	-0.7	-0.6

Annual Cash Flows

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2012	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Restated Normal 31-Dec-2010	Updated Normal 31-Dec-2008
Filed Currency	TWD	TWD	TWD	TWD	TWD
Exchange Rate (Period Average)	29.57962	29.39004	31.497037	33.023867	31.543497
Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified with Explanation	Unqualified	Unqualified	Unqualified

Net Income	0.6	0.3	0.2	-0.2	-0.2
Depreciation	0.5	0.5	0.5	0.5	0.5
Provision of Bad Debts	0.1	0.0	0.0	0.0	-
Reversal of Bad Accounts	-	-	-	-	-0.1
Amortization of Intangibles	0.1	0.1	0.1	0.0	0.0
Equity Investment Loss	-	-	-	-	0.0
Gain/Loss on Sales of LT Investment	-	-	-	-	-0.1
Net Loss on Disposal of Properties	-	-	-	0.0	-
Net Gain on Disposal of Properties	0.0	0.0	0.0	-	-0.1
Impairment Loss on Financial Assets	-	-	0.0	0.1	0.1
Gain from Devaluation of Inventory	0.0	0.0	0.0	0.0	-0.1
Prov. for Inventory Devaluation	-	-	-	-	0.1
Obsolete(Discard) of Inventory	-	0.0	0.1	0.1	-
Stock Compensation Expense	0.3	0.1	-	-	-
Notes Receivable	0.1	0.0	0.0	0.0	-0.1
Accounts Receivable	-0.1	-0.3	0.4	-0.2	0.9
Accounts Receivable-Related Parites	0.0	-	-	-	-
Inventories	-0.2	0.3	-0.1	-0.1	-0.1
Other Receivables	0.0	0.0	0.0	-0.1	0.0
Prepayments&Other Current Assets	0.0	0.1	-0.1	0.0	0.0
Deferred Tax Assets	-	-	-	-	0.1
Deferred Pension Cost	-	-	-	-	0.0
Notes Payable	-0.1	0.0	0.1	0.0	0.0
Accounts Payable	-0.1	-0.1	-0.1	0.1	0.0
Accounts Payable- Related Parties	-0.1	-	-	-	-
Accrued Expenses	0.0	0.0	-0.1	0.1	-0.4
Accrued Expenses-Related Parties	0.0	0.0	0.0	-	-
Other Payables	-0.2	-	-	-	-
Other Current Liabilities	0.0	0.0	-	-	-0.1
Advance Receipts&Other Current Liab	-	-	0.0	0.0	-
Accrued Pension Liabilities	0.1	-0.2	-0.3	0.0	0.0
Cash from Operating Activities	1.0	0.7	0.7	0.4	0.6

Prepayment for LT Investment Increase	-	-0.3	-	-	-
Financial Assets - Hold for Sale	0.0	0.0	-0.2	-	-
Sale of LT Equity Investment	-	-	-	-	0.3
Capital Expenditure	-0.1	-0.3	-0.3	-0.3	-1.1
Restricted Bank Deposits	-	-	-	-	0.4
Intangible Assets	-0.1	-0.1	-0.1	-0.1	-0.1
Disposal of Fixed Assets	0.0	0.0	0.0	0.0	0.3
Security Deposit Paid	0.0	0.0	0.0	0.0	0.0
Restricted Assets	0.2	0.1	0.3	-0.2	-
Other Assets	0.0	-	-	-	-
Cash from Investing Activities	0.0	-0.7	-0.3	-0.6	-0.2

Short Term Borrowings Increase	-0.2	0.0	-0.1	-	0.0
Other Payables-Related Parties	0.1	-	-	-	-
Long Term Borrowings	-0.3	-0.3	-0.3	-0.4	0.0
Cash Capital	-	-	-	-	1.5
Minority Interest	0.0	-1.0	-	-	-
Security Deposit Received	0.0	0.0	0.0	-	-
Cash from Financing Activities	-0.5	-1.3	-0.4	-0.4	1.5

Net Change in Cash	0.6	-1.3	0.1	-0.7	1.9

Net Cash - Beginning Balance	0.9	2.2	2.0	2.5	0.8
Net Cash - Ending Balance	1.5	0.9	2.0	1.9	2.7
Cash Interest Paid	0.0	0.0	0.0	0.1	0.1
Cash Taxes Paid	0.0	-	0.0	0.0	0.0

Financial Health

Financials in: USD (mil),

Except for share items (millions) and per share items (actual units),

Key IndicatorsÂ USD (mil)
Â	Quarter Ending 31-Dec-2012	Quarter Ending Yr Ago	Annual Year End 31-Dec-2012	1 Year Growth	3 Year Growth	5 Year Growth
Total Revenue1	3.2	3.78%	6.0	2.98%	-1.68%	-4.93%
Research & Development1	0.5	-23.30%	1.2	-15.11%	18.16%	8.49%
Operating Income1	0.0	-	-0.2	-	-	-
Income Available to Common Excl Extraord Items1	0.5	33.30%	0.5	98.20%	-	-
Basic EPS Excl Extraord Items1	0.02	33.32%	0.02	98.22%	-	-
Capital Expenditures2	0.2	-66.79%	0.2	-66.79%	-31.62%	-37.07%
Cash from Operating Activities2	1.0	50.37%	1.0	50.37%	33.14%	59.74%
Free Cash Flow	0.9	309.08%	0.9	309.08%	-	-
Total Assets3	7.1	6.94%	7.1	6.94%	-6.49%	-3.29%
Total Liabilities3	1.7	-13.14%	1.7	-13.14%	-25.92%	-19.81%
Total Long Term Debt3	0.0	-	0.0	-	-	-
Employees3	-	-	63	10.53%	-7.27%	-8.83%
Total Common Shares Outstanding3	25.2	0.00%	25.2	0.00%	0.00%	6.22%
1-ExchangeRate: TWD to USD Average for Period	29.501099	Â	29.579620	Â	Â	Â
2-ExchangeRate: TWD to USD Average for Period	29.579620	Â	29.579620	Â	Â	Â
3-ExchangeRate: TWD to USD Period End Date	29.011999	Â	29.011999	Â	Â	Â

Key Ratios
Â	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Profitability
Gross Margin	62.29%	60.17%	56.11%	47.45%	51.28%
Operating Margin	-2.80%	-4.60%	1.36%	-5.40%	-5.42%
Pretax Margin	10.25%	4.37%	3.18%	-3.34%	-1.24%
Net Profit Margin	8.42%	4.38%	3.77%	-3.65%	-2.57%
Financial Strength
Current Ratio	2.72	1.92	2.21	2.56	2.98
Long Term Debt/Equity	0.00	0.00	0.07	0.13	0.22
Total Debt/Equity	0.09	0.23	0.37	0.38	0.48
Management Effectiveness
Return on Assets	9.09%	3.47%	2.39%	-2.41%	-1.94%
Return on Equity	10.20%	5.63%	5.33%	-5.10%	-4.42%
Efficiency
Receivables Turnover	4.15	4.45	4.45	4.17	3.78
Inventory Turnover	3.71	3.61	3.57	4.24	4.43
Asset Turnover	0.89	0.79	0.75	0.72	0.78

Market ValuationÂ USD (mil)
P/E (TTM)	48.44	.	Enterprise Value2	23.4
Price/Sales (TTM)	4.05	.	Enterprise Value/Revenue (TTM)	3.85
Price/Book (MRQ)	4.58	.	Enterprise Value/EBITDA (TTM)	52.06
Market Cap as of 05-Jul-20131	23.9	.
1-ExchangeRate: TWD to USD on 5-Jul-2013	29.977691
2-ExchangeRate: TWD to USD on 31-Dec-2012	29.011999

Annual Ratios

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Financial Strength
Current Ratio	2.72	1.92	2.21	2.56	2.98
Quick/Acid Test Ratio	2.07	1.54	1.71	2.07	2.47
Working Capital1	2.4	1.4	2.4	2.6	3.0
Long Term Debt/Equity	0.00	0.00	0.07	0.13	0.22
Total Debt/Equity	0.09	0.23	0.37	0.38	0.48
Long Term Debt/Total Capital	0.00	0.00	0.05	0.10	0.15
Total Debt/Total Capital	0.08	0.19	0.27	0.27	0.32
Payout Ratio	0.00%	0.00%	0.00%	0.00%	0.00%
Effective Tax Rate	-0.01%	-0.07%	-0.41%	-	-
Total Capital1	5.9	5.5	6.2	5.6	6.1

Efficiency
Asset Turnover	0.89	0.79	0.75	0.72	0.78
Inventory Turnover	3.71	3.61	3.57	4.24	4.43
Days In Inventory	98.34	101.21	102.20	86.15	82.39
Receivables Turnover	4.15	4.45	4.45	4.17	3.78
Days Receivables Outstanding	88.04	81.97	81.94	87.61	96.50
Revenue/Employee2	96,581	99,325	87,677	73,504	71,901
Operating Income/Employee2	-2,703	-4,570	1,193	-3,968	-3,897
EBITDA/Employee2	7,149	5,478	9,369	3,325	1,713

Profitability
Gross Margin	62.29%	60.17%	56.11%	47.45%	51.28%
Operating Margin	-2.80%	-4.60%	1.36%	-5.40%	-5.42%
EBITDA Margin	7.40%	5.51%	10.69%	4.52%	2.38%
EBIT Margin	-2.80%	-4.60%	1.36%	-5.40%	-5.42%
Pretax Margin	10.25%	4.37%	3.18%	-3.34%	-1.24%
Net Profit Margin	8.42%	4.38%	3.77%	-3.65%	-2.57%
R&D Expense/Revenue	19.85%	24.08%	13.04%	11.44%	11.15%
COGS/Revenue	37.71%	39.83%	43.89%	52.55%	48.72%
SG&A Expense/Revenue	45.24%	40.69%	41.71%	39.60%	43.18%

Management Effectiveness
Return on Assets	9.09%	3.47%	2.39%	-2.41%	-1.94%
Return on Equity	10.20%	5.63%	5.33%	-5.10%	-4.42%

Valuation
Free Cash Flow/Share2	0.03	0.01	0.01	0.00	-0.02
Operating Cash Flow/Share 2	0.04	0.03	0.03	0.02	0.02
1-ExchangeRate: TWD to USD Period End Date	29.011999	30.279	29.1565	31.985	32.818
2-ExchangeRate: TWD to USD Average for Period	29.011999	30.279	29.1565	31.985	32.818

Current Market Multiples
Market Cap/Earnings (TTM)	48.44
Market Cap/Equity (MRQ)	4.58
Market Cap/Revenue (TTM)	4.05
Market Cap/EBIT (TTM)	-144.77
Market Cap/EBITDA (TTM)	54.73
Enterprise Value/Earnings (TTM)	46.07
Enterprise Value/Equity (MRQ)	4.35
Enterprise Value/Revenue (TTM)	3.85
Enterprise Value/EBIT (TTM)	-137.70
Enterprise Value/EBITDA (TTM)	52.06

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.59.71
UK Pound	1	Rs.90.59
Euro	1	Rs.78.22

INFORMATION DETAILS

Report Prepared by :

MNL

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.

MIRA INFORM REPORT

Company name & address

synthesis

Business Description

Key Executives

Financial Summary

Stock Snapshot

Corporate Overview

Executive report

Significant Developments

Annual Income Statement

Financial Health

Annual Ratios

Unit