MIRA INFORM REPORT

 

 

Report Date :

25.11.2013

 

IDENTIFICATION DETAILS

 

Name :

TOP UNION ELECTRONICS CORPORATION

 

 

Registered Office :

No.480, Nioupu E. Rd., Hsinchu City 300, Taiwan R.O.C.

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

15.02.1990

 

 

Com. Reg. No.:

23576977

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Subject is engaged in providing services

 

 

No. of Employees :

300 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:

TOP UNION ELECTRONICS CORPORATION

Supplied Name:

TOP UNION ELECTRONICS

Trading Address:

No.480, Nioupu E. Rd., Hsinchu City 300, Taiwan R.O.C.

Supplied Address:

No. 480, Nioupu east Road Hsinchu City 300

Telephone Number:

+886-3-538-6139

Fax Number:

+886-3-538-6138

E-mail:

marketing@topunion.com.tw

Notes: The exact name and address are as above.

 

Company Identification Details

 

Registered Name:

TOP UNION ELECTRONICS CORPORATION

Registered Address:

No.480, Nioupu E. Rd., Hsinchu City 300, Taiwan R.O.C.

Date of Foundation:

1990-2-15

Registration Number:

23576977

Registry:

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

Registered Capital:

NTD 1,000,000,000 (USD 33,900,000)

(As of 2013.11, 1 NTD = 0.0339 USD)

Paid-up Capital:

NTD 783,017,210 (USD 26,544,283)

Legal Representatives:

Shihe Cui

Legal Form:

Joint Stock Company

Principal Activities:

Providing Services, etc.

Staff:

About 300 Employees (Taiwan)

Listed at Stock Exchange:

Yes; Stoke Symbol:6266

Date of Last Annual Return:

2013-8-26

 

History

 

Subject was incorporated on 1990-2-15 with registered number 23576977 as Joint Stock Company in Taiwan.

 

Subject listed on Taiwan Over-The-Counter Securities exchange on 2004-4-29.

 

Shareholders

 

Name

Subscription Shares

Shihe Cui

2,683,775

Boxiang Liao

2,135,616

Chengzhong investment co ltd(Literal Translation)

2,918,680

Yingquan Song

411,964

Donglong su

676,121

Jincai Lin

582,415

Mingxian Peng

1,022,966

 

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

 

Shareholder Information:

Registered Name:

Chengzhong investment co ltd (Literal Translation)

Registered Address:

10-2F, No. 3-2, Yuanqu Street, Nangang District, Taipei City

Date of Foundation:

2002-10-17

Registration Number:

80286956

Registry:

Taipei City Government

Registered Capital:

NTD 78,000,000 (USD 2,644,200)

(As of 2013.11, 1 NTD = 0.0339 USD)

Paid-up Capital:

NTD 78,000,000 (USD 2,644,200)

Legal Representatives:

Bingzhong Song

Listed at Stock Exchange:

No

Date of Last Annual Return:

2012-9-26

 

Subsidiaries & Branches

Factories

1

Address:

No.480, Nioupu E. Rd., Hsinchu City 300, Taiwan R.O.C.

Date of Registration:

2005-10-14

Factory Registration Number:

99668941

Factory Manager:

Shihe Cui

Status:

In Production

Major Products:

2013-11-12

2

Address:

No. 171-1, Dahu Road, Haishan Alley, Xinzhu City

Date of Foundation:

1995-11-24

Date of Registration:

1996-1-18

Date of closing business

2006-8-21

Factory Registration Number:

99667649

Factory Manager:

Chaoqin Song

Status:

Close Business

Date of Last Annual Return:

2006-8-21

3

Address:

No. 17, 576 Alley, 1 Sec, Guangfu Road, Longshan Lane, Xinzhu City

Date of Foundation:

1994-8-9

Date of Registration:

1994-9-14

Date of closing business

2001-3-1

Factory Registration Number:

99175075

Factory Manager:

Chaoqin Song

Status:

Close Business

Date of Last Annual Return:

2001-3-1

4

Address:

No. 44-1, 576 Alley, 1 Sec, Guangfu Road, Longshan Lane, Xinzhu City

Date of Foundation:

1990-5-4

Date of Registration:

1990-6-11

Date of closing business

1994-9-27

Factory Registration Number:

99153389

Factory Manager:

Chaoqin Song

Status:

Close Business

Date of Last Annual Return:

1994-9-27

 

Personnel Information

 

Core Management

Directors

1

Name

Shihe cui

Position

Board chairman

2

Name

Boxiang liao

Position

Director

3

Name

Chengzhong Investment Co Ltd (Literal Translation)

Position

Director

4

Name

Yinquan Song

Position

Director

5

Name

Donglong Su

Position

Director

6

Name

Yongshun Zhuang

Position

Independent Director

7

Name

Qinghe Li

Position

Independent Director

8

Name

Jincai Lin

Position

Supervisor

9

Name

Mingxian Peng

Position

Supervisor

10

Name

Boyong Chen

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 300 Employees (Taiwan)

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

No.480, Nioupu E. Rd., Hsinchu City 300, Taiwan R.O.C.

 

Production Information

 

l         Subject is engaged in providing services.

l         Subject has 3 factories in Taiwan and the mainland of China for production.

l         Subject obtained the certification of ISO9001, ISO 14000, etc.

l         It is introduced subject provided OEM services.

 

Purchase Information

 

l         The registered activities of subject:

Business Code

Details

CC01030

Appliances and audio-visual electronic products manufacturing

CC01060

Cable machinery equipment manufacturing industry

CC01070

Wireless communications equipment manufacturing machinery

CC01080

Electronic components manufacturing

CC01990

Other mechanical electrical and electronic equipment manufacturing industry

F119010

Electronics material wholesale business

F219010

Electronics components retail business

F401010

The international trade

I599990

Other design

CC01101

Controlled telecommunications radio-frequency devices manufacturing

ZZ99999

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

 

l         The components and raw material for production are purchased both home and abroad.

 

Sales Information

 

l         The subject is mainly engaged in providing services.

l         The major services sold by subject include PCB assembly foundry services, Electronic parts agency service, electronic product assembly services, etc.

l         The subject sales regions include Asia, America, Europe, etc.

 

Major Service provided by subject

Type

Detail

Design And Development

ICT fixture

ICT software design

Test tooling creating

Automated Optical Inspection

Design for test

PCB manufacturing

Manufacturing fixture

Parts placement optimization

Manufacturing process design

Generation and review of manufacturing process documentation

Design for Procurement

BOM and AVL review

Generation and review of procurement specifications

Design for Assembly

Case assembly

Packing and shipping

Generation and review of assembly process documentation

 

 

 

Import and export right:

Import right

Yes

Export right

Yes

 

Settlements

 

Purchase

 

Domestic Purchase

Product

Terms

Proportion

Components and raw material, etc.

Cash, T/T, etc

100%

 

Foreign Purchase

Product

Terms

Proportion

Components and raw material, etc.

L/C, etc

100%

 

Sales

 

Domestic Markets

Product

Terms

Proportion

Services, etc.

T/T, Cash, etc

100%

 

Export

Product

Terms

Proportion

Services, etc.

L/C, etc

100%

 

Balance Sheet

                                                                                      Unit: NTD/000

 

2012-12-31

2011-12-31

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

109,650.00

172,985.00

Notes receivable - net

3,476.00

4,926.00

Accounts receivable - net

98,290.00

144,949.00

Inventories

233,592.00

266,838.00

Other current assets

19,719.00

12,718.00

Current assets

464,727.00

602,416.00

Funds and Investments

 

 

Long-term investments under equity method

628,191.00

625,036.00

Investments

628,191.00

625,036.00

Funds and investments

628,191.00

625,036.00

Fixed Assets

 

 

Cost

 

 

Land

80,113.00

80,113.00

Buildings and structures

333,237.00

333,237.00

Machinery and equipment

168,997.00

156,578.00

Transportation equipment

7,487.00

7,487.00

office equipment

7,227.00

4,261.00

Other facilities

9,098.00

9,098.00

Cost and revaluation increment

606,159.00

590,774.00

Accumulated depreciation

-171,993.00

-132,177.00

Fixed assets

434,166.00

458,597.00

Intangible Assets

 

 

Intangible assets

8,582.00

13,260.00

OtherAssets

 

 

Guarantee deposits paid

19.00

19.00

Other assets

19.00

19.00

Assets

1,535,685.00

1,699,328.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

short-term borrowing

50,000.00

0.00

notes payable

0.00

586.00

Accounts payable

176,074.00

175,547.00

Accounts payable - related parties

537.00

10,452.00

Accrued expenses

44,738.00

53,756.00

Other payables

2,322.00

5,170.00

advance receipt

58,610.00

79,633.00

Long-Term Liabilities -Current Portion

0.00

155,474.00

Other current liabilities

1,445.00

4,439.00

Current liabilities

333,726.00

485,057.00

Long term Liabilities

 

 

Reserves

 

 

Other Liabilities

 

 

Pension reserve / accrued pension liability

35,675.00

35,830.00

Guarantee deposits received

1,032.00

1,032.00

Other liabilities

36,707.00

36,862.00

Liabilities

370,433.00

521,919.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

771,279.00

745,851.00

Capital Surplus

 

 

Capital surplus - additional paid-in capital

146,842.00

107,121.00

Capital reserves - storage stock trading

14,457.00

14,457.00

Capital surplus - employee stock option

1,274.00

41,142.00

Capital surplus

162,573.00

162,720.00

Retained Earnings

 

 

Legal reserve

71,182.00

65,932.00

Unappropriated retained earnings

94,806.00

122,066.00

Retained earnings

165,988.00

187,998.00

Stockholders' Equity and Other adjustment

 

 

Cumulative translation adjustments

65,412.00

80,840.00

Equity adjustments

65,412.00

80,840.00

Stockholders‘ equity

1,165,252.00

1,177,409.00

Number of Treasury Stock Acquired by  Parent 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

 

Profit and loss account

 

                                                                                                                  Unit: NTD/000

 

2012

2011

Sales

1,091,027.00

944,491.00

Return Inward

11,368.00

2,909.00

Sales

1,079,659.00

941,582.00

Operating income

1,079,659.00

941,582.00

Operating costs

994,612.00

836,059.00

Gross profit (loss) from operations

85,047.00

105,523.00

Selling expense

24,345.00

23,255.00

General and administrative expenses

35,806.00

51,497.00

Research and development expenses

16,473.00

10,645.00

Operating expenses

76,624.00

85,397.00

Operating income (loss)

8,423.00

20,126.00

Non-Operating Income

 

 

Interest income

446.00

459.00

Income from long-term equity investments under the equity method

18,583.00

30,316.00

Investment income

18,583.00

30,316.00

Gains on disposal of fixed assets

0.00

6,233.00

Foreign exchange gains

0.00

4,098.00

Miscellaneous income

1,379.00

2,721.00

Non-operating revenues and gains

20,408.00

43,827.00

Non-Operating Expenses

 

 

Interest expense

5,352.00

6,011.00

Investment losses under equity method

95.00

934.00

Impairment loss on assets

2,444.00

0.00

Miscellaneous disbursements

1.00

1,091.00

Non-operating expenses and losses

7,892.00

8,036.00

Income from continuing operations before income tax

20,939.00

55,917.00

Income tax expense (benefit)

-3,293.00

3,416.00

Income from continuing operations

24,232.00

52,501.00

Net income (loss)

24,232.00

52,501.00

Primary Earnings per Share

 

 

Primary earnings per share

0.31

0.69

Diluted earnings per share

 

 

Diluted earnings per share

0.31

0.63

 

 

 

Cash flow

                                                                                            Unit: NTD/000

 

2012

2011

Cash Flows from Operating Activities - Indirect Method

24,232.00

52,501.00

Net Income (Loss)

 

 

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

40,184.00

36,663.00

Depreciation Expense

6,743.00

6,025.00

Amortization Expense

74.00

341.00

Share-based Compensation

5,226.00

6,008.00

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

-18,583.00

-30,316.00

Investment Loss (Income) Recognized under Equity Method

95.00

-5,299.00

Loss (Gain) on Deferred Income Tax

0.00

7,476.00

Other Adjustments to Reconcile Net Income

 

 

Changes in Operating Assets and Liabilities

1,450.00

-2,909.00

Decrease (Increase) in Notes Receivable

46,659.00

-47,535.00

Decrease (Increase) in Other Receivable- Related Parties

33,246.00

-46,350.00

Decrease (Increase) in Inventories

-6,777.00

3,523.00

Impairment Losses on Financial Asset

-224.00

-120.00

Changes in Operating Assets and Liabilities

-586.00

320.00

Decrease (Increase) in Notes Receivable

527.00

16,813.00

Decrease (Increase) in Accounts Receivable

-9,915.00

10,452.00

Decrease (Increase) in Accounts Receivable - Related Parties

0.00

-7,081.00

Increase (Decrease) in Income Tax Payable

-9,018.00

8,562.00

Increase (Decrease) in Accrued Expenses

-958.00

-1,969.00

Advance payment increase (decrease)

-21,023.00

16,794.00

Increase (Decrease) in Other Payable - Related Parties

-255.00

188.00

Increase (Decrease) in Other Current Liabilities

-155.00

-2,103.00

Increase (Decrease) in Accrued Pension Liabilities

90,942.00

21,984.00

Net Cash Provided by (Used in) Operating Activities

 

 

Acquisition of Investments Accounted for by Equity Method

-18,587.00

-40,059.00

Purchase of Property, Plant and Equipment

0.00

7,368.00

Increase in Deferred Charges

-2,065.00

-16,450.00

Purchase of Intangible Assets

-20,652.00

-49,141.00

Net Cash Provided by (Used in) Investing Activities

 

 

Cash Flows from Financing Activities

50,000.00

0.00

Redemption and buy back the convertible corporate bonds

-160,700.00

0.00

Proceeds from Disposal of Property, Plant and Equipment

0.00

1,000.00

Cash dividends

-23,121.00

-43,970.00

Repayment of Long-term Debt

196.00

820.00

Employees to buy called shares

0.00

6,618.00

Exercise of Employee Stock Options

-133,625.00

-35,532.00

Net Cash Provided by (Used in) Financing Activities

-63,335.00

-62,689.00

Net Increase (Decrease) in Cash and Cash Equivalents

172,985.00

235,674.00

Cash and Cash Equivalents, Beginning of year

109,650.00

172,985.00

Cash and Cash Equivalents, End of year

 

 

Supplemental Cash Flow Information

90.00

3.00

Interest Paid

90.00

3.00

Interest Paid- Excluding Capitalized Interest

4,543.00

10,516.00

Income Tax Paid

 

 

The maturity to cope with corporate bonds in a year

0.00

155,474.00

Corporate bonds into common stock

0.00

3,371.00

Income Tax Paid

 

 

Investing Activities Affecting Both Cash and Non-cash Items

 

 

Cash Paid for Acquisition of Property, Plant and Equipment

15,848.00

40,645.00

Increase in Property, Plant and Equipment

2,739.00

-586.00

Increase (Decrease) in Payable for Equipment Purchased

18,587.00

40,059.00

 

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

 

Trial Number:

2007,Jiaosheng,147

Date of Trial:

2007-11-29

Reason:

Violation of traffic regulations on administrative penalties for objection

 

Interview Details

 

Name

Ms. Pan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.02

UK Pound

1

Rs.102.04

Euro

1

Rs.84.91

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.