MIRA INFORM REPORT

 

 

Report Date :

23.03.2013

 

IDENTIFICATION DETAILS

 

Name :

ADDA CORP.

 

 

Registered Office :

No.6, East Section, Industry 6 Road, Pingtung City, Pingtung County 900, Taiwan, R.O.C

 

 

Country :

Taiwan

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

19.07.1978

 

 

Com. Reg. No.:

90724033

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and sales of electronic components, etc

 

 

No. of Employees :

300

 

 

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 :

Usually 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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Taiwan

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

Taiwan - ECONOMIC OVERVIEW

 

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. In keeping with this trend, some large, state-owned banks and industrial firms have been privatized. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. In 2009, Taiwan's GDP contracted 1.9%, due primarily to a 20% year-on-year decline in exports. In 2010 GDP grew 10.9%, as exports returned to the level of previous years, and in 2011, grew 5.2%. However, 2012 growth will likely be less, according to most forecasters, because of softening global demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, but so far Taiwan has been excluded from this greater economic integration largely because of its diplomatic status with the exception of the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010. The MA administration has said that the ECFA will serve as a stepping stone toward trade pacts with other regional partners, and negotiations on a deal with Singapore began this year. Follow-on components of ECFA, including deals on trade in goods, services, and investment, have yet to be completed. Taiwan's Total Fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 accounting for 10.9% of the island's total population as of 2011. The island runs a large trade surplus, and its foreign reserves are the world's fourth largest, behind China, Japan, and Russia. Since 2005 China has overtaken the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Three financial memorandums of understanding, covering banking, securities, and insurance, took effect in mid-January 2010, opening the island to greater investments from the mainland's financial firms and institutional investors, and providing new opportunities for Taiwan financial firms to operate in China. Closer economic links with the mainland bring greater opportunities for the Taiwan economy, but also poses new challenges as the island becomes more economically dependent on China while political differences remain unresolved.

 

Source : CIA


Contact Points

 

Company Name:

ADDA Corp.

Supplied Name:

ADDA CORP

Trading Address:

35 F, No.38, Singuang Road, Ling Ya District, Kaohsing City, Taiwan (R.O.C)

Supplied Address:

NO. 60 EAST SECTION INDUST RD PING TUNG CITY TAIWAN

Telephone Number:

+886-7-269-5166

Fax Number:

+886-7-269-5366

E-mail:

adda@adda.com.tw

Website:

www.adda.com

Notes: The exact name and address are as above and the supplied address belongs to subject’s Pingtung factory.

 

 

Company Identification Details

 

Registered Name:

ADDA Corp.

Registered Address:

No.6, East Section, Industry 6 Road, Pingtung City, Pingtung County 900, Taiwan, R.O.C.

Date of Foundation:

1978-7-19

Registration Number:

90724033

Registry:

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

Registered Capital:

NTD 2,400,000,000 (USD 81,600,000)

(As of 2013.03, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 1,827,718,000 (USD 62,142,412)

Legal Representatives:

Rongjie Xu

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sales of electronic components, etc

Staff:

About 300 Employees (Taiwan)

Listed at Stock Exchange:

Yes; Stock Symbol: 3071

Date of Last Annual Return:

2012-8-17

 

 

History

 

Subject was incorporated on 1978-7-19 with registered number 90724033 as Joint Stock Company in Taiwan.

 

Subject was listed on Taiwan stock exchange on 2004-12-30.

 

 

Shareholders

 

Name

Subscription Shares

Zhi Rong Zaizao Consultant Co., Ltd. (Literal Translation)

8,919   

Kang Xun Co., Ltd. (Literal Translation)

34,247,915

Ya Da Investment and Development Co., Ltd. (Literal Translation)

8,565,741

China Development and Investment Co., Ltd. (Literal Translation)

10,345,743

Hua Sheng Venture Capital Co., Ltd.

5,145,429

 

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

 

 

Subsidiaries & Branches

 

Factories

1

Name

Pingtung Factory

Address

90049,No.6, East Section Industrial 6th Road, Pingtung City, Pingtung County, Taiwan (R.O.C)

Telephone Number

+886-8-755-0579

Fax Number

+886-8-753-2815

2

Name

Xingwang Factory

Address

Bldg 10, The Third Industrial Zone, Wanfeng Village, Shajing Town, Baoan District, Shenzhen City, Guangdong Province, China

Telephone Number

+86-755-2723-0759

Fax Number

+86-755-2723-0754

3

Name

Gaojing Factory

Address

98 Industrial City, Wanfeng Village, Shajing Town, Baoan District, Shenzhen City, Guangdong Province, China

Telephone Number

+86-755-2985-1308

Fax Number

+86-755-2985-1108

4

Name

Kunshan Factory

Address

No.88, Fengjiang Road, Zhangpu Town, Kunshan City, Jiangsu Province, China

Telephone Number

+86-512-5745-1127

Fax Number

+86-512-57451146

 

Office

Name

Taipei Office

Address

9Fl-6, No.81,Sec.1, Hsin-Tai 5th Road , Sijhih District, New Taipei City, Taiwan (R.O.C)

Telephone Number

+886-2-2698-0277

Fax Number

+886-2-2698-0295

 

R&D Centre

Address

10F-7, No.77, Sec.1, Hsin-Tai 5th Road , Sijhih District, New Taipei City, Taiwan (R.O.C)

Telephone Number

+886-2-8698-4160

Fax Number

+886-2-8698-4222

 

Related Company

Name

Warburg Branch Trade (Shenzhen) Co., Ltd.

Address

Room 1101-1102, 11th Floor, Xingji Building, Xinsha Road, Shajing Street, Shenzhen City, Guangdong Province, China

Telephone Number

+86-755-2988-3085

 

 

Personnel Information

 

Core Management

 

Directors

1

Name

Rongjie Xu

Position

Board Chairman

2

Name

Lida Lv

Position

Director

3

Name

Shoucan Chen

Position

Director

4

Name

Ruiyi Huang

Position

Director

5

Name

Xinmao Xie

Position

Director

6

Name

Yanzuo Lu

Position

Director

7

Name

Songtian Guan

Position

Director

8

Name

Huachuang Qiu

Position

Independent Director

9

Name

Shoujun Xu

Position

Independent Director

10

Name

Xiangru Liao

Position

Supervisor

11

Name

Guangyu Yang

Position

Supervisor

12

Name

Zhilong He

Position

Manager

Date of Appointment

2007-3-22

 

Personnel Structure

 

Total Employees

About 300 Employees (Taiwan)

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

35 F, No.38, Singuang Road, Ling Ya District, Kaohsing City, Taiwan (R.O.C)

 

Production Information

 

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

l  Subject has factories in mainland China and Pingtung County, Taiwan for production.

l  Subject has obtained the certifications of ISO 9001, ISO 9002, ISO 14001, QS 9000, and OHSAS 18001, etc.

 

Purchase Information

 

l  The registered activities of subject:

Business Code

Details

C805030

Manufacturing of plastic daily necessities

C805050

Manufacturing of industrial plastic products

C805990

Manufacturing of other plastic products

CC01030

Manufacturing of electrical equipment and audio-visual electronic products

CC01040

Manufacturing of lighting equipment

CC01060

Manufacturing of wire communication machinery

CC01110

Manufacturing of computer and office equipment

CC01990

Manufacturing of other electrical machine and electronic machinery

CE01030

Manufacturing of optical instrument

CQ01010

Manufacturing of mould

F113020

Wholesale of electrical equipment

F113070

Wholesale of telecommunications equipment

F213010

Retail of electrical equipment

F213060

Retail of telecommunications equipment

ZZ99999 

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

 

l  The components for production are mostly purchased in domestic market.

Sales Information

 

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

l  The major produces sold by subject include CPU cooler modules, blower fans, DC axial-flow/blower fans and Ac axial-flow fans, etc.

l  The fans sold by subject are applied to computer, DVD, and motor, etc.

l  Subject has their own brand “ADDA”.

l  Subject’s major customers include “HP”, “AIWA”, “SIEMENS”, “COMPAQ”, “QUANTA”, “ACER”, “SONY”, “IBM”, “SAMSUNG”, “HITACHI”, “MICROSOFT” and “ASUS”, etc.

 

 

Settlements

 

Purchase

 

Domestic Purchase

Product

Payment Terms

Proportion

Components

COD, CBD, etc

100%

 

Foreign Purchase

 

Subject has little import.

 

Sales

 

Domestic Markets

Product

Sales Terms

Proportion

Electronic components

COD, CBD, etc

100%

 

Export

Product

Sales Terms

Proportion

Electronic components

CBD, etc

100%

 

Balance Sheet

 

Unit: NTD/000

 

2012-9-30

2011-9-30

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

420,854.00

492,716.00

Available-for-sale financial assets- current

1,744.00

200.00

Notes receivable - net

7,632.00

17,289.00

Accounts receivable - net

547,203.00

776,322.00

Accounts receivable - related parties - net

75,875.00

43,433.00

 Other financial assets-current

1,625.00

1,986.00

Inventories

62,403.00

125,144.00

Other current assets

27,181.00

118,911.00

Current assets

1,144,517.00

1,576,001.00

Funds and Investments

 

 

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

3,058.00

3,058.00

 Long-term equity investment under equity method

1,309,316.00

1,367,894.00

Investments

1,309,316.00

1,367,894.00

Accumulated impairment - investments

-3,758.00

-3,758.00

Funds and investments

1,308,616.00

1,367,194.00

Fixed Assets

 

 

Cost

 

 

Land

44,652.00

44,652.00

Buildings and structures

166,922.00

166,972.00

Machinery and equipment

66,330.00

65,610.00

Transportation equipment

4,770.00

4,770.00

Lease improvement

1,559.00

1,559.00

Other facilities

40,119.00

38,495.00

Cost of fixed assets

324,352.00

322,058.00

Accumulated depreciation

-146,637.00

-135,615.00

Accumulated impairment-fixed assets

-12,950.00

-12,950.00

Construction in process and prepayment for equipments

0.00

0.00

Fixed assets

164,765.00

173,493.00

Intangible Assets

 

 

Trademark right

468.00

0.00

Computer software cost

11,656.00

14,827.00

Intangible Assets

12,124.00

14,827.00

Other Assets

 

 

Guarantee deposits paid

4,983.00

4,466.00

Long-term notes receivable and payment–related parties

152,494.00

115,229.00

 Deferred income tax assets-non current

29,283.00

49,988.00

Other assets-other

2,896.00

0.00

Other assets

189,656.00

169,683.00

Assets

2,819,678.00

3,301,198.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

Short-term borrowing

46,865.00

119,873.00

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

0.00

6,635.00

Notes payable

1,567.00

4,759.00

Accounts payable

234,055.00

437,722.00

Accounts payable - related parties

461,920.00

356,905.00

Income tax payable

6,338.00

5,075.00

Accrued expenses

39,664.00

71,600.00

Other payables

23,759.00

15,517.00

Long-Term Liabilities -Current Portion

0.00

222,002.00

Other current liabilities

14,935.00

14,678.00

Current liabilities

829,103.00

1,254,766.00

Long-term Liabilities

 

 

Bonds payable

0.00

0.00

Long-term loan

0.00

0.00

Long-term liabilities

0.00

0.00

Reserves

 

 

Other Liabilities

 

 

Pension reserve / accrued pension liability

19,382.00

18,516.00

Guarantee deposits received

62.00

62.00

Other liabilities

19,444.00

18,578.00

Liabilities

848,547.00

1,273,344.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

1,827,718.00

2,069,987.00

Capital Surplus

 

 

Capital surplus–share premium

19,438.00

19,072.00

Capital surplus–storage stock trading

2,791.00

0.00

Capital surplus - subscription right

0.00

562.00

Capital surplus

22,229.00

19,634.00

Retained Earnings

 

 

Legal reserve

7,878.00

0.00

Unappropriated retained earnings

70,188.00

-139,938.00

Retained earnings

78,066.00

-139,938.00

Stockholders' Equity and Other adjustment

 

 

Cumulative translation adjustments

43,118.00

78,171.00

Stockholders' equity and other adjustment

43,118.00

78,171.00

Stockholders-equity

1,971,131.00

(USD 67,018,454.00)

2,027,854.00

(USD 68,947,036.00)

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

0.00

0.00

Equivalent shares of outstandings of advance receipts for common stock (Unit: share)

0.00

0.00

(As of 2013.03, 1 NTD = 0.0340 USD)

 

 

Profit and Loss Account

 

Unit: NTD/000

 

2012-1-1~2012-9-30

2011-1-1~2011-9-30

Sales

1,749,681.00

(USD 59,489,154.00)

2,275,147.00

(USD 77,354,998.00)

Sales returns

2,512.00

15,310.00

Sales discounts

7,090.00

4,886.00

Sales

1,740,079.00

2,254,951.00

Operating income

1,740,079.00

2,254,951.00

Operating costs

1,462,917.00

1,922,198.00

Gross profit (loss) from operations

277,162.00

332,753.00

Unrealized gains on intercompany transactions

9,743.00

9,074.00

Realized gains on intercompany transactions

9,571.00

5,312.00

Selling expense

65,867.00

88,645.00

General and administrative expenses

80,728.00

98,350.00

Research and development expenses

73,014.00

88,874.00

Operating expenses

219,609.00

275,869.00

Operating income (loss)

57,381.00

53,122.00

Non-Operating Income

 

 

Interest income

940.00

466.00

Investment income

0.00

60,014.00

Foreign exchange gains

0.00

19,161.00

Rental income

240.00

266.00

Valuation gain on financial assets

1,512.00

0.00

Miscellaneous income

17,945.00

2,657.00

Non-operating revenues and gains

20,637.00

82,564.00

Non-Operating Expenses

 

 

Interest expenses

4,249.00

6,268.00

Investment losses

6,142.00

0.00

Loss on disposal of fix assets

11.00

264.00

Foreign exchange losses

8,206.00

0.00

Impairment loss

0.00

3,758.00

Valuation loss on financial assets

0.00

17,300.00

 Miscellaneous disbursements

0.00

804.00

Non-operating expenses and losses

18,608.00

28,394.00

Income from continuing operations before income tax

59,410.00

107,292.00

Income tax expense (benefit)

23,192.00

20,328.00

Income from continuing operations

36,218.00

86,964.00

Net income (loss)

36,218.00

(USD 1,231,412.00)

86,964.00

(USD 2,956,776.00)

Primary Earnings per Share

 

 

Primary earnings per share

0.19

0.47

Diluted earnings per share

 

 

Diluted earnings per share

0.00

0.44

(As of 2013.03, 1 NTD = 0.0340 USD)

 

 


Cash Flows

 

Unit: NTD/000

 

2012-1-1~2012-9-30

2011-1-1~2011-9-30

Cash Flows from Operating Activities - Indirect Method

 

 

Net Income (Loss)

36,218

86,964

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

 

 

Depreciation Expense

8,443

8,683

Selling Expense

9,170

21,130

Provision for Bad Debt

-6,478

5,630

Bond Payable Discount (Premium) Amortization

360

1,607

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

-32

-3,453

Investment Loss (Income) Recognized under Equity Method

6,142

-60,014

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

11

264

Impairment Loss on Non-financial Assets

0

3,758

Other Adjustments to Reconcile Net Income

0

-128

Changes in Operating Assets and Liabilities

 

 

Loss (Gain) on Trading Financial Assets

-1,512

10,665

Decrease (Increase) in Notes Receivable

3,516

233

Decrease (Increase) in Accounts Receivable

210,881

-98,605

Decrease (Increase) in Accounts Receivable - Related Parties

-43,748

-15,544

Decrease (Increase) in Inventories

51,825

18,030

Decrease (Increase) in Other Current Assets

-7,340

3,172

Decrease (Increase) in Other Financial Assets

-12

1,332

Decrease (Increase) in Deferred Income Tax Assets

16,333

12,212

Decrease (Increase) in Trading Financial Liabilities

0

6,635

Increase (Decrease) in Notes Payable

-2,156

1,669

Increase (Decrease) in Accounts Payable

-112,664

6,381

Increase (Decrease) in Accounts Payable - Related Parties

82,140

80,115

Increase (Decrease) in Income Tax Payable

-2,714

-12,024

Increase (Decrease) in Accrued Expenses

-38,613

-12,004

Increase (Decrease) in Other Accrued Expenses

7,985

-690

Increase (Decrease) in Other Current Liabilities

-5,358

1,049

Increase (Decrease) in Accrued Pension Liabilities

683

521

Increase (Decrease) in Deferred Credit

172

3,762

Net Cash Provided by (Used in) Operating Activities

213,252

71,350

Cash Flows from Investing Activities

 

 

Increase in Long-term Investments at Equity

-19,710

-244,904

Purchase of Property, Plant and Equipment

-1,888

-2,682

Decrease (Increase) in Refundable Deposits

-687

309

Other Receivables - Decrease (Increase) in Related Parties

-8,298

196,591

Increase (Decrease) in Restricted Assets

90,072

-8,099

Purchase of Intangible Assets

-565

-9,128

Increase (Decrease) in Other Assets

0

460

Net Cash Provided by (Used in) Investing Activities

58,924

-67,453

Cash Flows from Financing Activities

 

 

Increase (Decrease) in Short-term Loans

-20,263

51,324

Bonds Redeemed

-222,900

0

Long-term Borrowing Redeemed

-72,660

-66,933

Increase (Decrease) in Guarantee Deposits Received

0

62

Cash Dividends Paid

-36,924

0

Cost of Treasury Stock

-15,855

0

Net Cash Provided by (Used in) Financing Activities

-368,602

-15,547

Exchange Influence

0

0

Net Increase (Decrease) in Cash and Cash Equivalents

-96,426

-11,650

Cash and Cash Equivalents, Beginning of year

517,280

504,366

Cash and Cash Equivalents, End of year

420,854

492,716

Supplemental Cash Flow Information

 

 

Interest Paid - Excluding Capitalized Interest

10,558

3,711

Income Tax Paid

9,573

19,883

Non-cash Investing and Financing Activities 

 

 

Long-Term Liabilities -Current Portion

0

222,002

Corporate Bonds Transfer Common Share

0

495

Cumulative Translation Adjustment

-41,040

89,805

Shareholders' Equity Transfer Capital Surplus

-12

0

 

 

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. Guo

Department

Sales Department

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.33

UK Pound

1

Rs.82.55

Euro

1

Rs.70.10

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.