MIRA INFORM REPORT

 

 

Report Date :

30.03.2013

 

IDENTIFICATION DETAILS

 

Name :

WISTRON CORPORATION

 

 

Registered Office :

No.5 Hsin An Road, Science-Based Industrial Park, Hsinchu

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

30.05.2001

 

 

Com. Reg. No.:

12868358

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and sales of electronic products, communication equipment and etc.

 

 

No. of Employees :

About 60,000 Employees (Group)

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular 

 

 

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:

Wistron Corporation

Supplied Name:

WISTRON CORPORATION

Trading Address:

158, Singshan Rd., Neihu Taipei, 11469 Taiwan R.O.C.

Supplied Address:

5, Hsin-Ann Rd Science-Based Industrial Park Hsinchu 300, Taiwan

Telephone Number:

+886-2-6616-9999

Fax Number:

+886-2-6616-5188

E-mail:

enterpriseBG@wistron.com  

mobileBG@wistron.com  

Notes: The exact name is as above. And the supplied address belongs to subject’s factory.

 

 

Company Identification Details

 

Registered Name:

Wistron Corporation

Registered Address:

No.5 Hsin An Road, Science-Based Industrial Park, Hsinchu, Taiwan, R.O.C.

Date of Foundation:

2001-5-30

Registration Number:

12868358

Registry:

Science Park Administration

Registered Capital:

NTD 25,000,000,000 (USD 813,746,000)

(As of 2013.3, 1 NTD = 0.0326 USD)

Paid-up Capital:

NTD 21,979,431,570 (USD 715,427,000)

Legal Representatives:

Xianming Lin

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sales of electronic products, communication equipment and etc.

Staff:

About 60,000 Employees (Group)

Listed at Stock Exchange:

Yes; Symbol: 3231

Date of Last Annual Return:

2012-8-21

History

 

Subject was incorporated on 2001-5-30 with registered number 12868358 as Joint Stock Company in Taiwan.

Subject was listed on Taiwan stock exchange with the stock symbol 3231 on 2003-8-19.

 

Awards

Year

Awards

2009

Blue chip importer and exporter

2010

Blue chip importer and exporter

2011

Blue chip importer and exporter

 

Standard of Blue chip importer and exporter

 

Unit: USD

Year

Amount

2009

15,000,000

2010

20,000,000

2011

22,000,000

 

 

Shareholders

 

(Unit: NTD)

Name

Subscription Amount

Xianming Lin

24,464,931

Zhenrong Shi

2,395,291

Botuan Huang

1,324,050

Hongbo Xie

931,857

Zhongren Zheng

69,944

 

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

 

 


Subsidiaries & Branches

 

Related Companies

1

Name

Wistron Kunshan Limited Company

Address

No. 168, The First Avenue, Comprehensive Bonded Zone, Kunshan City, Jiangsu Province, China

Telephone Number

+86-512-5736-7888

Fax Number

+86-512-5736-7999

2

Name

Wistron Zhongshan Limited Company

Address

No.38, Jidong Road, Torch Hi-Tech Industrial Development Zone, Zhongshan City, Guangdong Province, China

Telephone Number

+86-760-233-8238

Fax Number

+86-760-233-82382

Factory

Name

Hsinchu Factory

Address

No.5 Hsin An Road, Science-Based Industrial Park, Hsinchu, Taiwan, R.O.C.

Office

Name

Hsichih Office

Address

21F, 88, Sec 1, Hsintai 5th Rd, Hsichih New Taipei City 22181, Taiwan, R.O.C.

 

 

Personnel Information

 

Core Management

Directors

1

Name

Xianming Lin

Position

Board Chairman

2

Name

Zhenrong Shi

Position

Director

3

Name

Hongbo Xie

Position

Director

4

Name

Botuan Huang

Position

Director

5

Name

Mingzhi Xuan

Position

Independent Director

6

Name

Guozhi Cai

Position

Independent Director

7

Name

Guofeng Wu

Position

Independent Director

8

Name

Zhongren Zheng

Position

Independent Director

9

Name

Dugong Cai

Position

Independent Director

 

Personnel Structure

Total Employees

About 60,000 Employees

 


Operation Information

 

Offices & Factories

 

Headquarters

Add

No.5 Hsin An Road, Science-Based Industrial Park, Hsinchu, Taiwan, R.O.C.

 

Production Information

l         Subject is a manufacturer of electronic products, communication equipments and etc.

l         It is introduced that subject has three factories in Hsinchu, Taiwan, Kunshan City, Jiangsu Province, China and Zhongshan City, Guangdong Province, China for production.

l         It is introduced that subject’s factories has obtained ISO 9001, ISO1 4000, OHSAS 18000, ESD, QC 080000 certifications.

 

Purchase Information

l         The registered activities of subject:

Business Code

Details

CC01060

Wire communication mechanical equipment manufacturing

CC01070

Wireless communication mechanical equipment manufacturing

CC01080

Electronic components manufacturing

I301010

Information software service

I501010

Design industry

F401010

International Trading Business

CE01030

Optical instrument manufacturing

F401021

The controlled telecommunications radio-frequency devices input industry (radio transmitting-receiving set)

CC01101

Controlled telecommunications radio-frequency devices Manufacturing (radio transmitting-receiving set)

CC01030

Appliances and audio-visual electronic manufacturing

CC01110

Computer and its peripheral equipment manufacturing

JA02010

The repair of electrical and electronic products

J101090

The waste disposal industry

l         It is introduced that subject purchases raw materials, components and etc for products both in domestic and overseas market.

 

Sales Information

l         The subject is engaged in sales of electronic products, communication equipments and etc.

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

l         It is introduced that subject’s major customers are manufacturers, wholesalers, distributors of electronic products and etc.

l         It is introduced that subject can also provide OEM, ODM services and etc.

 

Major products sold

 

Product

1.

PCs

2.

servers and storage systems

3.

networking products

4.

display products

5.

communication devices

 

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 products, communication equipments and etc.

COD, CBD and etc.

100%

Export

Product

Sales Terms

Proportion

electronic products, communication equipments and etc.

CBD and etc.

100%

 

 

Balance Sheet

 

Unit: NTD/000

 

 2012-12-31

 2011-12-31

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

17,358,699.00

12,925,794.00

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

1,624.00

7,174.00

Accounts receivable - net

57,976,137.00

71,228,719.00

Accounts receivable - related parties - net

39,741,307.00

44,935,853.00

Other receivables - related parties

3,611,177.00

1,230,567.00

Other financial assets - current

2,269,393.00

1,695,176.00

Inventories

6,147,360.00

6,600,989.00

Other current assets

2,589,111.00

2,648,353.00

Current assets

129,694,808.00

141,272,625.00

Funds and Investments

 

 

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

800.00

0.00

Available-for-sale financial assets - non current

1,529,444.00

1,635,652.00

Financial assets carried at cost - non current

1,185,485.00

1,105,940.00

Equity investments under equity method

56,415,412.00

47,020,352.00

Investments

56,415,412.00

47,020,352.00

Funds and long-term investments

59,131,141.00

49,761,944.00

Fixed Assets

 

 

Cost

 

 

Land

2,810,384.00

2,810,384.00

Buildings and structures

2,166,167.00

1,984,839.00

Machinery and equipment

1,136,092.00

1,156,144.00

Molding equipment

11,098,789.00

9,229,009.00

Testing equipment

1,417,065.00

1,312,757.00

Office equipment

797,383.00

602,350.00

Leasehold improvements

129,873.00

0.00

Other facilities

53,006.00

49,846.00

Fixed assets cost

19,608,759.00

17,145,329.00

Accumulated depreciation

-12,359,735.00

-9,845,287.00

Construction in process and prepayment for equipments

958,422.00

874,174.00

Fixed assets

8,207,446.00

8,174,216.00

Intangible Assets

 

 

Patents

587,081.00

682,886.00

Computer software cost

347,951.00

312,574.00

Goodwill

561,485.00

561,485.00

Other intangible assets

39,720.00

92,680.00

Intangible assets

1,536,237.00

1,649,625.00

Other Assets

 

 

Rental assets

201,314.00

191,713.00

Guarantee deposits paid

62,101.00

56,322.00

Other assets - other

191,132.00

202,842.00

Other assets

454,547.00

450,877.00

Assets

199,024,179.00

201,309,287.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

Short-term borrowings

50,158,945.00

39,812,278.00

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

25,764.00

2,206.00

Notes payable

13,017.00

6,928.00

Accounts payable

40,511,940.00

41,007,898.00

Accounts payable - related parties

20,206,052.00

42,299,944.00

Other payables - related parties

1,361,193.00

1,674,398.00

Long-term liabilities - current portion

606,886.00

0.00

Other current liabilities

9,583,094.00

11,862,179.00

  Current liabilities

122,466,891.00

136,665,831.00

Long term Liabilities

 

 

Bonds payable

8,017,100.00

0.00

Long-term borrowings

3,007,424.00

0.00

Long-term liabilities

11,024,524.00

0.00

Reserves

 

 

Other Liabilities

 

 

Deferred income tax liabilities

3,072,816.00

2,976,928.00

Other liabilities - other

467,408.00

116,757.00

Other liabilities

3,540,224.00

3,093,685.00

Liabilities

137,031,639.00

139,759,516.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

21,979,432.00

20,849,972.00

Capital Surplus

 

 

Capital surplus - additional paid-in capital

19,330,750.00

19,079,276.00

Capital surplus - treasury stock transactions

2,981.00

2,206.00

Capital surplus - long-term equity investments

87,703.00

84,764.00

Capital surplus - employee stock option

65,434.00

65,921.00

Capital surplus - stock option

49,357.00

0.00

Capital surplus

19,536,225.00

19,232,167.00

Retained Earnings

 

 

Legal reserve

5,561,975.00

4,655,472.00

Special reserve

1,791,906.00

3,287,455.00

Unappropriated retained earnings

17,743,302.00

16,099,930.00

  Retained earnings

25,097,183.00

24,042,857.00

Stockholders' Equity and Other adjustments

 

 

Cumulative translation adjustments

-3,278,911.00

-1,441,163.00

Net loss not recognized as pension cost

-294,572.00

-178,336.00

Unrealized gains (losses) on financial instruments

-269,282.00

-172,407.00

Treasure stock

-777,535.00

-783,319.00

Equity adjustments

-4,620,300.00

-2,575,225.00

Stockholdersˉ equity

61,992,540.00

(USD 2,020,956,804)

61,549,771.00

(USD 2,006,522,534.60)

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

15,458,000.00

15,573,000.00

(As of 2013.3, 1 NTD = 0.0326 USD)

 

 

Profits & Loss Accounts

 

Unit: NTD/000

 

2012

 2011

Sales

601,339,897.00

(USD 19,603,680,642.20)

591,140,834.00

(USD 19,271,191,188.40)

Sales returns

2,581,304.00

4,663,651.00

Sales

598,758,593.00

586,477,183.00

Operating income

598,758,593.00

586,477,183.00

Cost of sales

574,159,694.00

562,007,162.00

Operating costs

574,159,694.00

562,007,162.00

Gross profit (loss) from operations

24,598,899.00

24,470,021.00

Unrealized gains on intercompany transactions

20,652.00

0.00

Realized gains on intercompany transactions

0.00

194,047.00

Selling expense

6,000,843.00

6,054,862.00

General and administrative expenses

1,650,580.00

1,616,494.00

Research and development expenses

11,252,487.00

11,051,558.00

Operating expenses

18,903,910.00

18,722,914.00

Operating income (loss)

5,674,337.00

5,941,154.00

Non-Operating Income

 

 

Interest income

22,620.00

24,516.00

Income from long-term equity investments under the equity method

3,261,181.00

4,634,824.00

Investment income

3,261,181.00

4,634,824.00

Gains on disposal of fixed assets

1,075.00

1,777.00

Gains on sale of investments

14,593.00

70,808.00

Rent income

30,552.00

32,614.00

Revaluation gain on financial assets

0.00

86,596.00

Miscellaneous income

159,741.00

157,740.00

Non-operating revenues and gains

3,489,762.00

5,008,875.00

Non-Operating Expenses

 

 

Interest expense

996,563.00

596,441.00

Loss on disposal of fixed assets

482.00

29.00

Foreign exchange losses

443.00

121,156.00

Revaluation loss on financial assets

31,582.00

0.00

Miscellaneous disbursements

7,220.00

44,473.00

Non-operating expenses and losses

1,036,290.00

762,099.00

Income from continuing operations before income tax

8,127,809.00

10,187,930.00

Income tax expense (benefit)

1,461,378.00

1,122,902.00

Income from continuing operations

6,666,431.00

9,065,028.00

Net income (loss)

6,666,431.00

(USD 217,325,650.60)

9,065,028.00

(USD 295,519,912.80)

Primary Earnings per Share

 

 

Primary earnings per share

3.06

4.15

Diluted earnings per share

 

 

Diluted earnings per share

2.83

4.06

(As of 2013.3, 1 NTD = 0.0326 USD)

 

Cash Flows

 

Unit: NTD/000

 

2012

 2011

Cash Flows from Operating Activities - Indirect Method

 

 

Net Income (Loss)

6,666,431

9,065,028

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

 

 

Depreciation Expense

2,744,322

2,124,752

Amortization Expense

407,935

611,922

Amortization of Discounts (Premiums) on Bonds Payable

172,740

0

Effects of Exchange Rate Changes Of Bonds Payable

225,903

0

Investment Loss (Income) Recognized under Equity Method

3,003,079

4,389,033

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

593

1,748

Property, Plan and Equipment Transferred to Expenses

163

7,248

Loss (Gain) on Disposal of Investments

14,593

70,808

Unrealized Revaluation Loss (Gain) on Financial Assets and Liabilities

31,582

86,596

Loss (Gain) on Bond Redemption

1,650

0

Loss (Gain) on Deferred Income Tax

594,775

1,090,514

Other Adjustments to Reconcile Net Income

0

73,967

Changes in Operating Assets and Liabilities

 

 

Decrease (Increase) in Accounts Receivable

13,252,582

10,733,490

Decrease (Increase) in Accounts Receivable - Related Parties

5,194,546

414,152

Decrease (Increase) in Other Receivable- Related Parties

21,206

16,046

Decrease (Increase) in Inventories

453,629

4,282,661

Decrease (Increase) in Other Prepayments

815,087

627,214

Decrease (Increase) in Other Current Assets

104,014

134,711

Decrease (Increase) in Other Financial Assets

574,217

1,122,305

Increase (Decrease) in Notes Payable

6,089

1,687

Increase (Decrease) in Accounts Payable

495,958

6,953,929

Increase (Decrease) in Accounts Payable - Related Parties

22,093,892

7,396,391

Increase (Decrease) in Accrued Expenses

2,309,624

3,407,384

Increase (Decrease) in Other Payable - Related Parties

313,205

858,893

Increase (Decrease) in Other Current Liabilities

718,733

105,744

Increase (Decrease) in Deferred Credits

20,652

194,047

Increase (Decrease) in Other Operating Liabilities

669,470

265,022

Net Cash Provided by (Used in) Operating Activities

170,284

3,903,206

Cash Flows from Investing Activities

 

 

Proceeds from Disposal of Available-for-sale Financial Assets

17,239

45,828

Acquisition of Financial Assets Carried at Cost

119,875

293,642

Proceeds from Disposal of Financial Assets Carried at Cost

7,485

0

Capital Reduction of Financial Assets Carried at Cost

34,387

4,683

Acquisition of Investments Accounted for by Equity Method

7,947,253

4,994,149

Proceeds from Disposal of Investments Accounted for by Equity Method

0

25,961

Proceeds from Capital Reduction of Investments Accounted for under Equity Method

556

0

Purchase of Property, Plant and Equipment

2,682,446

4,885,231

Proceeds from Disposal of Property, Plant and Equipment

55,437

9,536

Decrease (Increase) in Other Receivables - Related Parties

2,359,404

164,607

Purchase of Intangible Assets

272,204

356,980

Decrease (Increase) in Other Assets

196,987

116,358

Net Cash Provided by (Used in) Investing Activities

13,463,065

10,724,959

Cash Flows from Financing Activities

 

 

Increase (Decrease) in Short-term Loans

10,346,667

14,385,877

Proceeds from Issuance of Bonds

8,277,119

0

Redemption and Repurchase of Convertible Bonds

146,510

0

Proceeds from Long-term Debt

3,614,310

1,728,120

Repayment of Long-term Debt

0

10,467,120

Increase (Decrease) in Guarantee Deposits Received

212,260

541

Cash Dividends Paid

4,572,705

6,299,707

Exercise of Employee Stock Options

329,940

240,321

Treasury Stock Sold to Employees

5,173

89,781

Net Cash Provided by (Used in) Financing Activities

18,066,254

323,269

Net Increase (Decrease) in Cash and Cash Equivalents

4,432,905

7,145,022

Cash and Cash Equivalents, Beginning of year

12,925,794

20,070,816

Cash and Cash Equivalents, End of year

17,358,699

12,925,794

Supplemental Cash Flow Information

 

 

Interest Paid- Excluding Capitalized Interest

991,834

562,226

Income Tax Paid

0

1,572,930

Non-cash Investing and Financing Activities

 

 

Current Portion of Long-term Liabilities

606,886

0

Unrealized Valuation Gains or Losses on Financial Instruments

89,823

48,136

Unrealized Gains or Losses on Financial Instruments Recognized due to Equity Changes in Long-term Investments

7,052

33,362

Cumulative Translation Adjustments

1,837,748

1,553,624

Cash Dividends Payable

2,508

2,387

 

 

Public Record

 

Mortgage

No chattel mortgage record of subject has been found within the recent 3 months.

 

Lawsuit

1

Trial Number:

2012, Shensu, 393

Date of Trial:

2012-10-31

Reason:

To pay payment for goods

2

Trial Number:

2012, Bu, 695

Date of Trial:

2012-8-21

Reason:

To pay payment for goods

3

Trial Number:

2006, Zi, 11

Date of Trial:

2008-4-11

Reason:

Defamation

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.39

UK Pound

1

Rs.82.32

Euro

1

Rs.69.54

 

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.