MIRA INFORM REPORT

 

 

Report Date :

31.10.2013

 

IDENTIFICATION DETAILS

 

Name :

SILICON MOTION, INC.

 

 

Registered Office :

8F.-1, No.36, Taiyuan St., Jhubei City, Hsinchu County 302

 

 

Country :

Taiwan

 

 

Financials (as on) :

30.09.2013

 

 

Date of Incorporation :

08.04.1997

 

 

Com. Reg. No.:

97440546

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and sales of electronic components

 

 

No. of Employees :

About 420 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:

Silicon Motion, Inc.

Former Name:

Silicon Motion Tech. Inc.

Supplied Name:

SILICON MOTION, INC

Trading Address:

8F.-1, No.36, Taiyuan St., Jhubei City, Hsinchu County 302, Taiwan (R.O.C.)

Supplied Address:

8F-1, No.36, Taiyuan ST., Jhubei City, Hsinchu County

Telephone Number:

+886-3-552-6888

Fax Number:

+886-3-552-6988

Notes: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

SILICON MOTION, INC.

Registered Address:

8F.-1, No.36, Taiyuan St., Jhubei City, Hsinchu County 302, Taiwan (R.O.C.)

Date of Foundation:

1997-4-8

Registration Number:

97440546

Registry:

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

Registered Capital:

NTD 1,950,000,000 (USD 65,325,000)

(As of 2013.10, 1 NTD = 0.0335 USD)

Paid-up Capital:

NTD 1,054,120,000 (USD 35,313,020)

Legal Representatives:

Bangji Zhou

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sales of electronic components.

Staff:

About 420 Employees (Taiwan)

Listed at Stock Exchange:

Yes; (Public, Nasdaq: SIMO)

Date of Last Annual Return:

2013-8-12

 

 

History

 

Subject was incorporated on 1997-4-8 with registered number 97440546 as Joint Stock Company in Taiwan.

 

The subject (Silicon Motion Technology Corporation) was listed on Nasdaq Stock Exchange on 2007-5.

 

Change of Name

Former English Name

Silicon Motion Tech. Inc.

Current English Name

Silicon Motion, Inc.

 

 

Shareholders

 

Name

Subscription Shares

Silicon Motion (Dutch) B.V

105,412,000     

 

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

 

 

Subsidiaries & Branches

 

Offices

1

Address

1591 McCarthy Boulevard, Milpitas, CA 95035, USA

Telephone Number

+1-408-519-7200

Fax Number

+1-408-519-7101

2

Address

3F, No.100, Mincyuan Rd., Sindian Dist., New Taipei City 23141, Taiwan

Telephone Number

+886-2-2219-6688

Fax Number

+886-2-2219-6868

3

Address

9F, Bld B, Keji Chuangyeyuan, Tianan Digital City, Futian District, Shenzhen 518040, Guangdong, P.R.C.

Telephone Number

+86-755-8204-9580

Fax Number

+86-755-8204-9519

4

Address

A-18, No. 11, GuoTai Road, Shanghai 200433, P.R.C.

Telephone Number

+86-21-6510-7780

Fax Number

+86-21-6510-7821

5

Address

12B03, Bld A, Boya International Center, No. 1, Lizezhongyi Road, Chaoyang District, Beijing 100102, P.R.C.

Telephone Number

+86-10-8478-2140

Fax Number

+86-10-6471-9546

6

Address

KDX Shin-Yokohama 381 bldg. 8F, 3-8-11, Shin-Yokohama, Kohoku-ku, Yokohama, Kanagawa, 222-0033 Japan

Telephone Number

+81-45-478-5220

Fax Number

+81-45-478-5212

7

Address

11F, KINS Tower, 25-1 Jeongja-Dong Bundang-Gu, Sungnam City, Kyunggi-Do, 463-811 Korea

Telephone Number

+82-31-782-3880~2

Fax Number

+82-31-785-8779

8

Address

11F, KINS Tower, 25-1 Jeongja-Dong Bundang-Gu, Sungnam City, Kyunggi-Do, 463-811 Korea

Telephone Number

+82-31-782-3700

Fax Number

+82-31-711-0313

 

Factory

Address:

8F-1, 2, 7F-1, 2, 6F-1, 2, 3, 5,  No.36, Taiyuan St., Jhubei City, Hsinchu County 302, Taiwan (R.O.C.)

Date of Registration:

2008-11-20

Factory Registration Number:

99700541

Factory Manager:

Bangji Zhou

Status:

In Production

Date of Last Annual Return:

2008-11-20

Major Products:

261 Semi-conductor

 

 

Personnel Information

 

Core Management

 

Directors

1

Name

Bangji Zhou

Position

Board Chairman

Date of Appointment

2002-8-13

2

Name

Jiazhang Gou

Position

Director

3

Name

Wenzhong Zhang

Position

Director

4

Name

Zhihe Huang

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 420 Employees (Taiwan)

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

8F.-1, No.36, Taiyuan St., Jhubei City, Hsinchu County 302, Taiwan (R.O.C.)

 

Production Information

 

Subject is a manufacturer of electronic components and etc.

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

 

Purchase Information

 

The registered activities of subject:

Business Code

Details

1

Development and trading of semiconductor memory components (SDD) and its system.

2

Importing, exporting and trading of above business.

CC01080

Manufacturing of electronic components.

F119010

Wholesales of electronic materials.

F401010

International trading business.

F401030

Manufacturing and exporting industry.

CB01010

Manufacturing of machinery and equipment.

CE01010

Manufacturing of general instrument.

CE01030

Manufacturing of optical instrument.

ZZ99999

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

 

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

The subject imported some technologies from USA, Japan and etc.

 

Sales Information

 

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

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

The subject’s major customers are manufacturers of electronic products and etc.

The subject’s products are applied to computers, Tablet PC, smart phones and etc.

The subject owns two brands named “SMI” (Mobile Storage and Multimedia SoC products) and “FCI” (Mobile Communications products).

The subject has cooperated with many famous companies, such as “Samsung”, “SanDisk”, “Toshiba”, “Micron”,” Intel”, “Hynix”, “hp”, “Sharp”, “ZTE” and etc.

It is introduced that subject has many distributors covering all over the world.

 

Major Products

Type

Product

Mobile Storage

Flash Card Controllers

USB Flash Drive Controllers

Solid State Drive Controllers

Single-Chip Solid State Drive

Embedded Flash Controllers

Mobile Communications

Mobile TV IC Solutions

CDMA RFICs

Electronic Toll Collection SoCs

Multimedia SoCs

Embedded Graphics

Embedded GPU

Server GPU

Others

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase

Product

Payment Terms

Proportion

Raw materials, components and etc

COB, CBD, etc

100%

 

Foreign Purchase

Product

Payment Terms

Proportion

Raw materials, components and etc

CBD, etc

100%

 

Sales

 

Domestic Markets

Product

Sales Terms

Proportion

Electronic components and etc.

COB, CBD, etc

100%

 

Export

Product

Sales Terms

Proportion

Electronic components and etc.

L/C , T.T, etc.   

100%

Notes: Subject’s settlement for export is generally in USD

 

 

Consolidated Balance Sheet

 

      Unit: USD/000

Date

2012-9-30

2013-9-30

Cash and cash equivalents

146,570.00

160,430.00

Short-term investments

W

2,946.00

Accounts receivable (net)

37,593.00

30,444.00

Inventories

36,801.00

28,816.00

Refundable deposits - current

15,240.00

15,280.00

Deferred income tax assets (net)

2,565.00

1,111.00

Prepaid expenses and other current assets

3,248.00

4,696.00

Total current assets

242,017.00

243,723.00

Long-term investments

178.00

133.00

Property and equipment (net)

23,490.00

28,780.00

Goodwill and intangible assets(net)

35,465.00

35,471.00

Other assets

4,835.00

4,327.00

Total assets

305,985.00

312,434.00

Accounts payable

27,502.00

13,533.00

Income tax payable

3,506.00

7,309.00

Accrued expenses and other current liabilities

21,216.00

22,676.00

Total current liabilities

52,224.00

43,518.00

Other liabilities

3,922.00

3,921.00

Total liabilities

56,146.00

47,439.00

Shareholders’ equity

249,839.00

264,995.00

Total liabilities & shareholders’ equity

305,985.00

312,434.00

 

 

Consolidated Profit/Loss Account

 

Unit: USD/000

Date

2012-1-1~2012-9-30

2013-1-1~2013-9-30

Net Sales

210,766.00

172,819.00

Cost of sales

109,399.00

91,653.00

Gross profit

101,367.00

81,166.00

Operating expenses

 

 

Research & development

36,678.00

34,121.00

Sales & marketing

12,120.00

10,019.00

General & administrative

9,189.00

8,658.00

Operating income

43,380.00

43,380.00

Non-operating income (expense)

 

 

Gain on sale of investment

2.00

3.00

Interest income, net

972.00

1,252.00

Foreign exchange gain (loss),net

438.00

-98.00

Others, net

18.00

124.00

Subtotal

1,430.00

1,281.00

Income before income tax

44,810.00

29,649.00

Income tax expense (benefit)

5,522.00

7,689.00

Net income

39,288.00

21,960.00

Note: The above financial figures are unaudited.

 

 

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:

2002, Chongsu, 213

Date of Trial:

2004-4-8

Reason:

Compensation For Damages

Complainant:

Silicon Motion, Inc.

Defendant:

Phison Electronics Corp

 

 

Interview Details

 

Name

Mr. Yan

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.49

UK Pound

1

Rs.98.71

Euro

1

Rs.84.49

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

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

 

Unlimited

71-85

Aa

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

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

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

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

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.