MIRA INFORM REPORT

 

 

Report Date :

09.08.2014

 

IDENTIFICATION DETAILS

 

Name :

HON HAI PRECISION INDUSTRY CO., LTD.

 

 

Registered Office :

No.66, Chung Shan Rd., Tucheng Dist., New Taipei City 236

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

20.02.1974

 

 

Com. Reg. No.:

04541302

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and sale of electronic products

 

 

No of Employees :

About 6,300 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 :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

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 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Taiwan

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

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. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are other major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, and following the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, Taiwan in July 2013 signed a free trade deal with New Zealand—Taipei’s first-ever with a country with which it does not maintain diplomatic relations—and in November inked a trade pact with Singapore. Negotiations continue on follow-on components of ECFA regarding trade in goods and a dispute resolution mechanism; a trade in services agreement is under review in the legislature. 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 overall trade surplus largely because of its surplus with China, and its foreign reserves are the world's sixth largest, behind China, Japan, Saudi Arabia, Russia, and Switzerland. 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. Taiwan since 2009 has gradually loosened rules governing Chinese investment on the island, and has also secured greater market access for its investors in the mainland. 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:

Hon Hai Precision Industry Co., Ltd.

Supplied Name:

HON HAI PRECISION INDUSTRY CO LTD

Trading Address:

No.2, Zihyou St., Tucheng Dist., New Taipei City 236, Taiwan

Supplied Address:

5003115 No.2, Zihyou St., Tucheng Dist., New Taipei City 236, Taiwan

Telephone Number:

+886-2-2268-3466

Fax Number:

+886-2-2268-6216

Note: The exact address is as above.

 

Credit Summary

 

Credit Opinion:

Business connections are permissible.

Risk Analysis:

Very good creditworthiness

 

 

Company Identification Details

 

Registered Name:

Hon Hai Precision Industry Co., Ltd.

Registered Address:

No.66, Chung Shan Rd., Tucheng Dist., New Taipei City 236, Taiwan

Date of Foundation:

1974-2-20

Registration Number:

04541302

Registry:

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

Registered Capital:

NTD 150,000,000,000 (USD 4,995,000,000)

(As of 2014.08, 1 NTD = 0.0333 USD)

Paid-up Capital:

NTD 131,287,068,400 (USD 4,371,859,377.72)

Legal Representatives:

Taiming Guo

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sale of electronic products, etc.

Staff:

About 6,300 Employees

Listed at Stock Exchange:

Yes; Stock Symbol: 2317

Date of Last Annual Return:

2014-7-14

 

History

 

Subject was incorporated on 1974-2-20 with registered number 04541302 as Joint Stock Company in Taiwan.

 

The subject listed on Taiwan Stock Exchange on 1991-6-18.

 

 

Corporate Structure

 

Factories in Taiwan

1

Address:

No.66, Chung Shan Rd., Tucheng Dist., New Taipei City 236, Taiwan (R.O.C.)

Factory Registration Number:

99690050

Factory Manager:

Taiming Guo

Status:

In Production

Date of Last Annual Return:

2003-4-11

Major Products:

262 electronic passive component

269 other electronic component

271 computer and peripheral equipment

272 communication equipment

289 other power equipment

292 other special machinery

2

Name:

Hsinchu Science Park the 1st Factory

Address:

4/F-1,2, 5F-1,3, 6/F-1,2, Hsin-An Road, Hsinchu Science-Based Industrial Park Hsinchu, Taiwan, R.O.C.

Date of Registration:

2004-4-22

Factory Registration Number:

95A00640

Factory Manager:

Yiwei Liang

Status:

In Production

Date of Last Annual Return:

2012-6-15

Major Products:

269 other electronic component

271 computer and peripheral equipment

272 communication equipment

273 audio and video electronic product

275 measuration, navigation, control equipment and clock

289 other power equipment

3

Name:

Hsinchu Science Park the 2nd Factory

Address:

5th Floor, No.9, Lixing 5th Road, East District, Hsinchu Science-Based Industrial Park Hsinchu, Taiwan, R.O.C.

Date of Registration:

2004-4-22

Factory Registration Number:

95B00640

Factory Manager:

Guanglu Li

Status:

In Production

Date of Last Annual Return:

2009-5-11

Major Products:

277 optical instrument and equipment

4

Name:

Minsheng Factory

Address:

No.4-1, Minsheng Street, Tucheng District, New Taipei City, Taiwan

Date of Foundation:

2001-2-8

Date of Registration:

2001-3-2

Factory Registration Number:

99601096

Factory Manager:

Taiming Guo

Status:

In Production

Date of Last Annual Return:

2007-6-4

Major Products:

271 computer and peripheral equipment

272 communication equipment

275 measuration, navigation, control equipment and clock

269 other electronic component

264 optical instrument and equipment

7

Name:

The 3rd Factory

Address:

No.2, Ziyou Street, Tucheng Street, New Taipei City, Taiwan

Date of Foundation:

1987-2-11

Date of Registration:

1988-5-27

Factory Registration Number:

99689866

Factory Manager:

Taiming Guo

Status:

In Production

Date of Last Annual Return:

2003-12-4

Major Products:

254 metal processing

259 other metal product

293 general equipment

251 metal hand tool and mold

292 other special machinery

271 computer and peripheral equipment

272 communication equipment

275 measuration, navigation, control equipment and clock

269 other electronic component

273 audio and video electronic product

289 other power equipment

274 data storage medium

261 semiconductor

262 electronic passive component

263 printed circuit board

264 photoelectric material

281 power equipment, transmission equipment and distribution equipment

283 electric wire and wiring accessories

Note: It is introduced that subject also has factories in Mainland China, India and Vietnam, but the detail information we cannot obtain from any sources.


Branches

1

Name

Neihu Branch

Address

2~11th Floor, No. 32, Jihu Road, Neihu District, Taipei City, Taiwan

Registration Number

27948078

Date of Registration

2006-11-8

Status

Live Company

Manager Name

Bingzheng Xiong

Date of Last Annual Return

2009-9-10

2

Name

Hsinchu Science Park Branch Office

Address

5F-1, 5, Hsin-An Road, Hsinchu Science-Based Industrial Park Hsinchu, Taiwan, R.O.C.

Registration Number

12800533

Date of Registration

2004-4-1

Status

Live Company

Manager Name

Zhiping Ling

Date of Last Annual Return

2009-3-20

3

Name

USA Branch

Address

468E, Lambert Rd., Fullerton, CA 92835

Telephone Number

+1-714-680-2066

 

 

Shareholders

 

Major Shareholders

(Unit: NTD)

Name

Subscription Shares      

 

Taiming Guo

1,621,338,489

Hong Qiao International Investment Co., Ltd (Literal Translation)

20,523,686

Hong Jing International Investment Co., Ltd (Literal Translation)

1,433,093

Yibin Jian

1,433,056

Furui International Investment Co., Ltd (Literal Translation)

62,190,037

 

Shareholder Information:

 

1

Registered Name:

Furui International Investment Co., Ltd (Literal Translation)

Registered Address:

15th Floor, No.207-3, Sec 3, Beixin Road, Xindian District, New Taipei City, Taiwan

Date of Foundation:

1994-11-30

Registration Number:

89922730

Registry:

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

Registered Capital:

NTD 609,000,000 (USD 20,279,700)

(As of 2014.08, 1 NTD = 0.0333 USD)

Paid-up Capital:

NTD 609,000,000 (USD 20,279,700)

Legal Representatives:

Yibin Jian

Legal Form:

Joint Stock Company

Date of Last Annual Return:

2012-5-18

2

Registered Name:

Hong Jing International Investment Co., Ltd (Literal Translation)

Registered Address:

15th Floor, No.207-3, Sec 3, Beixin Road, Xindian District, New Taipei City, Taiwan

Date of Foundation:

1998-3-24

Registration Number:

16410233

Registry:

New Taipei City Government

Registered Capital:

NTD 20,000,000 (USD 666,000)

(As of 2014.08, 1 NTD = 0.0333 USD)

Paid-up Capital:

NTD 20,000,000 (USD 666,000)

Legal Representatives:

Qiulian Huang

Legal Form:

Joint Stock Company

Date of Last Annual Return:

2013-11-19

 

Management Information

 

Core Management

 

Directors

1

Name

Taiming Guo

Position

Chairman of the Board

2

Name

Zhengwu Dai

Position

Director

3

Name

Fangming Lv

Position

Director

4

Name

Yibin Jian

Position

Director

5

Name

Qingyuan Huang

Position

Director

6

Name

Yuqi Wu

Position

Independent Director

7

Name

Chengyu Liu

Position

Independent Director

8

Name

Ruixia Wan

Position

Supervisor

9

Name

Minzhi Zhuo

Position

Supervisor

10

Name

Taiming Guo

Position

Manager

Date of Appointment

1996-2-16

 

Personnel Structure

 

Total Employees

About 6,300 Employees

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

No.2, Zihyou St., Tucheng Dist., New Taipei City 236, Taiwan

 

Production Information

 

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

l         Subject has factories in Taiwan for production.

l         It is introduced that subject has factories in Mainland China, India and Vietnam for production.

l         Subject can also provide OEM and ODM services.

 

Purchase Information

 

l         The registered activities of subject:

Business Code

Details

--

Development, designing, manufacturing and sales of connector, cable component, monoblock and foundation bed of computer system equipment and other related products.

--

Development, designing, manufacturing and sales of connector, cable component and components of computer information system, telecommunication, optical fiber and optronics.

--

Development, designing, manufacturing and sales of consumer electronics and components of automobile and aerospace industry.

--

Designing, manufacturing and sales of precision mold, mold components and die making equipment.

--

Manufacturing and sales of metal parts and plastic parts.

--

Manufacturing and sales of metal finishing, metal processing and its related equipment.

--

Sales of related processing for machinery and hardware devices.

--

Designing, development, manufacturing and sales of automatic machine and peripheral equipment.

--

Agent, designing, development, manufacturing, sales and after-sale service of computer network use and industrial use computer software.

--

Measuration and inspection services of mechanical, electronic parts and molds.

--

Development, designing, manufacturing and sales of testing equipment.

--

Importing and exporting trading business of related plastic materials and basic metal materials.

--

Development, designing, manufacturing and sales of construction materials.

--

Engaged in the delivery center in bonded warehouse.

--

Development, designing, manufacturing and sales of air pollution control, noise and vibration control, water pollution control, waste management, environmental inspection and environmental monitoring.

--

Renting and sales of construction of industrial buildings, commissioned to build plant, public housing and commercial building.

--

Agent and sales of related building and construction machinery.

--

Designing and construction of related lighting system and communication networks.

--

Designing and construction of safety and health system and interior trim.

--

Relating to the management, sales agent, real estate lease, and contract and agency business.

--

Development, designing, manufacturing, assembling, processing, testing and sales of integrated circuits and a base.

--

Development, designing, manufacturing and sales of CD machine and its components.

--

Development, designing, manufacturing and sales of CD machine.

--

Manufacturing, processing and sales of gold potassium hydride.

--

Researching, development, blending, mulling, processing, appliance, technology transferring and sales of related construction materials.

--

Importing and exporting business of related products.

CC01020

Manufacture of Wire and cable

CC01080

Manufacture of electronic components

CB01020

Manufacture of Clerical machine

CC01010

Manufacture power generating, Power Transmission and power distribution industry

CB01010

Manufacture of mechanical equipment

CD01030

Manufacture of Automotive components and accessories

CD01060

Manufacture of air craft and components

CC01050

Manufacture of data storage and processing equipment

F119010

Wholesales of electronic materials

F219010

Retails of electronic materials

ZZ99999

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

 

l         The components and raw material for production are both purchased at home and abroad such as Japan and USA, etc.

 

Sales Information

 

l         Subject is engaged in sale of electronic products, etc.

l         Subject’s major products include information systems integration and service product, digital products, mobile products, laser electric products, server and motherboard products, mold product, interconnects, consumer electronics, etc.

l         Subject’s sales regions are Japan, Korea, Southeast Asia, USA, America, Europe, Australia, etc.

l         It is introduced that subject’s products are used in communication industry, automation equipment industry, optoelectronic industry, precision machinery industry, automobile industry, consumer electronics industry, etc.

l         The major customers of the subject are “Sony”, “Apple”, “HP”, “Cisco” and “Nokia”, etc.

 

Import and export right:

 

Import right

Yes

Export right

Yes

 

Settlements

 

Purchase

 

1.      Domestic Purchase

Products

Raw materials and components, etc.

Payment Terms

T/T, Cash, etc.

 

2.       Import

Products

Raw materials and components, etc.

Payment Terms

L/C, T/T, etc.

 

Sales

 

1.       Domestic Markets

Product

Electronic products, etc.

Selling Terms

T/T, Cash, etc.

 

2.       Export

Product

Electronic products, etc.

Selling Terms

L/C, T/T, etc.

 

Balance Sheet

Unit: NTD/000

 

2012-12-31*

2011-12-31*

Assets

 

 

Cash and cash equivalents

71,517,954.00

74,149,784.00

Available-for-sale financial assets - current

690,433.00

592,257.00

Accounts receivable - net

472,888,155.00

382,890,440.00

Accounts receivable - related parties - net

62,720,798.00

57,950,719.00

Other receivables

1,016,559.00

606,048.00

Other receivables - related parties

377,590,202.00

309,526,062.00

Inventories

93,648,034.00

126,489,487.00

Other prepayments

1,420,857.00

1,406,370.00

Other current assets

2,283,747.00

4,759,524.00

Current assets

1,083,776,739.00

958,370,691.00

Available-for-sale financial assets - non current

2,146,941.00

1,575,600.00

Financial assets carried at cost - non current

191,062.00

291,262.00

Equity investments under equity method

601,401,616.00

532,795,426.00

Investments

601,401,616.00

532,795,426.00

Other financial assets - non current

23,100.00

23,100.00

Funds and long-term investments

603,762,719.00

534,685,388.00

Land

1,671,640.00

1,671,640.00

Buildings and structures

3,613,058.00

3,670,419.00

Machinery and equipment

47,416,196.00

53,020,018.00

Molding equipment

11,763.00

11,763.00

Testing equipment

3,120,912.00

4,887,832.00

Office equipment

714,593.00

760,557.00

Maintenance equipment and tools

472.00

3,552.00

Other facilities

1,449,265.00

1,535,045.00

Fixed assets cost

57,997,899.00

65,560,826.00

Accumulated depreciation

-33,937,740.00

-33,231,500.00

Construction in process and prepayment for equipment

2,767,938.00

1,556,812.00

Fixed assets

26,828,097.00

33,886,138.00

Deferred charges

573,854.00

476,386.00

Other assets - other

703,617.00

707,635.00

Other assets

1,277,471.00

1,184,021.00

Assets

1,715,645,026.00

1,528,126,238.00

Short-term borrowings

38,404,076.00

59,754,378.00

Short-term notes and bills payable

7,991,597.00

7,989,312.00

Accounts payable

106,055,305.00

94,632,674.00

Accounts payable - related parties

432,791,798.00

355,935,299.00

Income tax payable

8,805,575.00

10,113,427.00

Accrued expenses

116,769,211.00

101,164,671.00

Other payables

211,300,093.00

207,748,685.00

Advance receipts

25,143,427.00

2,141,682.00

Long-term liabilities - current portion

31,931,536.00

3,000,000.00

Other current liabilities

9,699,905.00

19,299,168.00

Current liabilities

988,892,523.00

861,779,296.00

Bonds payable

56,210,000.00

62,378,777.00

Long-term borrowings

19,156,400.00

21,920,600.00

Long-term liabilities

75,366,400.00

84,299,377.00

Pension reserve / accrued pension liability

900,688.00

871,342.00

Deferred income tax liabilities

3,353,326.00

3,241,244.00

Other liabilities - other

599,902.00

103,291.00

Other liabilities

4,853,916.00

4,215,877.00

Liabilities

1,069,112,839.00

950,294,550.00

Common stock

118,358,665.00

106,890,967.00

Capital surplus - additional paid-in capital

58,302,661.00

53,206,711.00

Capital surplus - long-term equity investments

16,928,977.00

15,452,488.00

Capital surplus - stock option

2,034,440.00

2,034,440.00

Capital surplus

77,266,078.00

70,693,639.00

Legal reserve

59,980,502.00

51,821,402.00

Unappropriated retained earnings

385,380,938.00

325,500,402.00

Retained earnings

445,361,440.00

377,321,804.00

Cumulative translation adjustments

1,395,612.00

21,141,456.00

Unrealized gains (losses) on financial instruments

4,169,293.00

1,802,723.00

Treasure stock

-18,901.00

-18,901.00

Equity adjustments

5,546,004.00

22,925,278.00

Stockholdersˉ equity

646,532,187.00

(USD 21,529,521,827.10)

577,831,688.00

(USD 19,241,795,210.40)

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

1,302,812.00

1,184,375.00

 

Unit: NTD/000

 

2013-12-31#

Assets

 

Total cash and cash equivalents

694,027,045

Total current financial assets at fair value through profit or loss

1,198,112

Current available-for-sale financial assets, net

1,087,171

Accounts receivable, net

727,761,542

Accounts receivable due from related parties, net

19,948,258

Other receivables, net

40,215,354

Total inventories

312,785,092

Total prepayments

6,393,753

Total other current assets

5,165,161

Total current assets

1,808,581,488

Non-current available-for-sale financial assets, net

11,854,684

Non-current financial assets at cost, net

10,843,376

Investments accounted for using equity method, net

46,282,999

Total property, plant and equipment

379,561,941

Investment property, net

2,304,839

Total intangible assets

12,815,278

Deferred tax assets

15,837,041

Total other non-current assets

24,379,557

Total non-current assets

503,879,715

Total assets

2,312,461,203

Total short-term borrowings

366,233,601

Total short-term notes and bills payable

19,982,517

Total current financial liabilities at fair value through profit or loss

39,946

Total accounts payable

682,942,409

Total accounts payable to related parties

29,761,739

Total other payables

191,175,178

Current tax liabilities

24,158,478

Total current provisions

2,406,336

Total other current liabilities

42,260,567

Total current liabilities

1,358,960,771

Total bonds payable

97,054,788

Total long-term borrowings

35,108,728

Total deferred tax liabilities

6,218,103

Total other non-current liabilities

9,194,211

Total non-current liabilities

147,575,830

Total liabilities

1,506,536,601

Ordinary share

131,287,068

Total capital stock

131,287,068

Total capital surplus, additional paid-in capital

64,033,016

Capital surplus, difference between consideration and carrying amount of subsidiaries acquired or disposed

52,165

Capital surplus, changes in equity of associates and joint ventures accounted for using equity method

707,692

Total capital surplus

64,792,873

Legal reserve

69,456,739

Total unappropriated retained earnings (accumulated deficit)

467,423,426

Total retained earnings

536,880,165

Total exchange differences on translation of foreign financial statements

26,432,947

Total unrealized gains (losses) on available-for-sale financial assets

5,295,914

Total other equity interest

31,728,861

Treasury shares

18,901

Total equity attributable to owners of parent

764,670,066

Non-controlling interests

41,254,536

Total equity

805,924,602

(USD 26,837,289,246.60)

Number of shares in entity held by entity and by its subsidiaries

1,433,093

(As of 2014.08, 1 NTD = 0.0333 USD)

 

Profit and Loss Account

Unit: NTD/000

 

2012*

2011*

Sales

3,218,928,395.00

(USD 107,190,315,553.50)

2,773,311,378.00

(USD 92,351,268,887.40)

Sales

3,218,928,395.00

2,773,311,378.00

Operating income

3,218,928,395.00

2,773,311,378.00

Cost of sales

3,066,728,559.00

2,665,484,499.00

Operating costs

3,066,728,559.00

2,665,484,499.00

Gross profit (loss) from operations

152,199,836.00

107,826,879.00

Selling expense

88,233,452.00

57,367,306.00

General and administrative expenses

6,561,747.00

6,336,949.00

Research and development expenses

11,478,794.00

12,622,338.00

Operating expenses

106,273,993.00

76,326,593.00

Operating income (loss)

45,925,843.00

31,500,286.00

Non-Operating Income

 

 

Interest income

239,695.00

182,319.00

Income from long-term equity investments under the equity method

62,582,101.00

61,958,096.00

Dividends

20,643.00

43,642.00

Investment income

62,602,744.00

62,001,738.00

Gains on sale of investments

50,382.00

0.00

Revaluation gain on financial assets

0.00

41,017.00

Revaluation gain on financial liabilities

9,314.00

135,676.00

Miscellaneous income

1,136,093.00

2,117,567.00

Non-operating revenues and gains

64,038,228.00

64,478,317.00

Non-Operating Expenses

 

 

Interest expense

2,186,975.00

1,827,181.00

Foreign exchange losses

54,900.00

1,839,757.00

Financial expense

189,662.00

482,813.00

Revaluation loss on financial assets

41,181.00

0.00

Miscellaneous disbursements

24,585.00

37,378.00

Non-operating expenses and losses

2,497,303.00

4,187,129.00

Income from continuing operations before income tax

107,466,768.00

91,791,474.00

Income tax expense (benefit)

12,704,391.00

10,200,475.00

Income from continuing operations

94,762,377.00

81,590,999.00

Net income (loss)

94,762,377.00

(USD

3,155,587,154.10)

81,590,999.00

(USD 2,716,980,266.70)

Primary Earnings per Share

 

 

Income (loss) from continuing operations

8.03

6.94

Primary earnings per share

8.03

6.94

Diluted earnings per share

 

 

Income (loss) from continuing operations

7.84

6.78

Diluted earnings per share

7.84

6.78

 

Unit: NTD/000

 

2013#

Total operating revenue

3,952,317,540

(USD 131,612,174,082)

Total operating costs

3,697,623,039

Gross profit (loss) from operations

254,694,501

Gross profit (loss) from operations

254,694,501

Total selling expenses

25,893,690

Total administrative expenses

72,906,384

Total research and development expenses

46,580,031

Total operating expenses

145,380,105

Net operating income (loss)

109,314,396

(USD 3,640,169,386.80)

Total other income

17,531,778

Other gains and losses, net

13,863,801

Finance costs, net

9,252,353

Share of profit (loss) of associates and joint ventures accounted for using equity method, net

4,838,075

Total non-operating income and expenses

26,981,301

Profit (loss) from continuing operations before tax

136,295,697

Total tax expense (income)

28,949,821

Profit (loss) from continuing operations

107,345,876

Profit (loss)

107,345,876

Exchange differences on translation

24,617,695

Unrealized gains (losses) on valuation of available-for-sale financial assets

-1,002,017

Actuarial gains (losses) on defined benefit plans

980

Total share of other comprehensive income of associates and joint ventures accounted for using equity method

918,220

Income tax related to components of other comprehensive income

167

Other comprehensive income, net

24,534,711

Total comprehensive income

131,880,587

Profit (loss), attributable to owners of parent

106,697,157

Profit (loss), attributable to non-controlling interests

648,719

Comprehensive income, attributable to owners of parent

130,621,274

Comprehensive income, attributable to non-controlling interests

1,259,313

Basic earnings (loss) per share from continuing operations

8.16

Total basic earnings per share

8.16

Diluted earnings (loss) per share from continuing operations

7.99

Total diluted earnings per share

7.99

(As of 2014.08, 1 NTD = 0.0333 USD)

Cash Flows

Unit: NTD/000

 

2012*

2011*

Cash Flows from Operating Activities - Indirect Method

 

 

Net Income (Loss)

94,762,377.00

81,590,999.00

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

 

 

Depreciation Expense

7,679,615.00

8,319,196.00

Amortization Expense

1,039,010.00

1,313,430.00

Provision (Reversal of Provision) for Bad Debts Losses

388,623.00

(1,183,157.00)

Provision (Reversal of Provision) for Sales Returns, Discounts and Allowances

591,729.00

0.00

Amortization of Discounts (Premiums) on Financial Liabilities

2,285.00

0.00

Amortization of Discounts (Premiums) on Bonds Payable

666,334.00

645,094.00

Effects of Exchange Rate Changes Of Bonds Payable

(1,203,575.00)

1,098,312.00

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

(1,561,557.00)

1,937,585.00

Investment Loss (Income) Recognized under Equity Method

(62,582,101.00)

(61,958,096.00)

Cash Dividends Received from Investments Accounted for under Equity Method

1,193,901.00

1,094,061.00

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

(40,359.00)

(58,877.00)

Loss (Gain) on Disposal of Investments

(50,382.00)

7,061.00

Unrealized Revaluation Loss (Gain) on Financial Assets and Liabilities

0.00

0.00

Realized Loss (Gain) on Intercompany Transactions

(2,847.00)

4,609.00

Other Adjustments to Reconcile Net Income

(2,162,311.00)

279,191.00

Changes in Operating Assets and Liabilities

 

 

Decrease (Increase) in Financial Assets Held for Trading

0.00

0.00

Decrease (Increase) in Notes Receivable

(1,992,657.00)

15,777.00

Decrease (Increase) in Accounts Receivable

(88,985,410.00)

(114,157,206.00)

Decrease (Increase) in Accounts Receivable - Related Parties

(4,770,079.00)

(30,454,427.00)

Decrease (Increase) in Other Receivables

9,561.00

(30,377.00)

Decrease (Increase) in Inventories

34,403,010.00

(21,207,601.00)

Decrease (Increase) in Other Prepayments

(14,487.00)

3,910,215.00

Decrease (Increase) in Deferred Tax Assets

2,475,777.00

(1,264,969.00)

Increase (Decrease) in Accounts Payable

11,422,631.00

(3,388,946.00)

Increase (Decrease) in Accounts Payable - Related Parties

76,856,498.00

84,698,214.00

Increase (Decrease) in Income Tax Payable

(1,307,852.00)

1,686,042.00

Increase (Decrease) in Accrued Expenses

20,010,370.00

31,953,804.00

Increase (Decrease) in Other Payables

9,666,541.00

1,708,236.00

Increase (Decrease) in Receipts in Advance

23,001,745.00

173,103.00

Increase (Decrease) in Other Current Liabilities

(9,599,179.00)

6,335,514.00

Increase (Decrease) in Deferred Tax Liabilities

112,082.00

(510,857.00)

Increase (Decrease) in Accrued Pension Liabilities

29,346.00

12,792.00

Net Cash Provided by (Used in) Operating Activities

110,038,639.00

(7,431,278.00)

Cash Flows from Investing Activities

 

 

Acquisition of Financial Assets as Fair Value through Profit or Loss

0.00

(146,138.00)

Acquisition of Available-for-sale Financial Assets

(76,291.00)

0.00

Proceeds from Disposal of Financial Assets Carried at Cost

150,582.00

2,847.00

Acquisition of Investments Accounted for by Equity Method

(22,731,587.00)

(24,180,101.00)

Proceeds from Capital Reduction of Investments Accounted for under Equity Method

0.00

0.00

Purchase of Property, Plant and Equipment

(5,771,750.00)

(21,538,628.00)

Proceeds from Disposal of Property, Plant and Equipment

11,334,160.00

2,178,382.00

Increase in Deferred Charges

(1,038,889.00)

(1,056,214.00)

Decrease (Increase) in Other Financial Assets

0.00

4,984.00

Decrease (Increase) in Other Assets

(93,432.00)

59,178.00

Other Investing Activities

(80,254,037.00)

25,794,344.00

Net Cash Provided by (Used in) Investing Activities

(98,481,244.00)

(18,881,346.00)

Cash Flows from Financing Activities

 

 

Increase (Decrease) in Short-term Loans

(21,350,302.00)

27,982,701.00

Increase (Decrease) in Short-term Notes and Bills Payable

0.00

(1,601,976.00)

Proceeds from Issuance of Bonds

26,300,000.00

18,000,000.00

Repayments of Bonds

(3,000,000.00)

(17,219,400.00)

Proceeds from Long-term Debt

0.00

21,920,600.00

Increase (Decrease) in Other Liabilities

496,611.00

(87,631.00)

Cash Dividends Paid

(16,033,645.00)

(9,661,248.00)

Net Cash Provided by (Used in) Financing Activities

(13,587,336.00)

39,333,046.00

Effect of Exchange Rate Changes

(601,889.00)

(279,191.00)

Net Increase (Decrease) in Cash and Cash Equivalents

(2,631,830.00)

12,741,231.00

Cash and Cash Equivalents, Beginning of year

74,149,784.00

61,408,553.00

Cash and Cash Equivalents, End of year

71,517,954.00

74,149,784.00

Supplemental Cash Flow Information

 

 

Interest Paid

1,346,618.00

964,369.00

Interest Paid- Excluding Capitalized Interest

1,346,618.00

964,369.00

Income Tax Paid

11,355,262.00

10,247,811.00

Non-cash Investing and Financing Activities

 

 

Unrealized Valuation Gains or Losses on Financial Instruments

593,226.00

(3,927,843.00)

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

1,773,344.00

(7,534,564.00)

Cumulative Translation Adjustments

(19,745,844.00)

30,471,775.00

Investing Activities Affecting Both Cash and Non-cash Items

 

 

Cash Paid for Acquisition of Property, Plant and Equipment

 

 

Increase in Property, Plant and Equipment

6,491,667.00

20,992,624.00

Increase (Decrease) in Payable for Equipment Purchased

(719,917.00)

546,004.00

Cash Paid for Acquisition of Property, Plant and Equipment

5,771,750.00

21,538,628.00

Cash Received from Disposal of Property, Plant and Equipment

 

 

Proceeds from Disposal of Property, Plant and Equipment

5,897,917.00

7,613,331.00

Decrease (Increase) in Other Receivables- Disposal of Property, Plant and Equipment

5,436,243.00

(5,434,949.00)

Cash received from Disposal of Long-term Investments under Equity Method

11,334,160.00

2,178,382.00

 

 

2013#

Cash flows from (used in) operating activities, indirect method

 

Profit (loss) from continuing operations before tax

136,295,697

Profit (loss) before tax

136,295,697

Depreciation expense

72,686,853

Amortization expense

926,373

Provision (reversal of provision) for bad debt expense

227,523

Net loss (gain) on financial assets or liabilities at fair value through profit or loss

311,994

Interest expense

9,117,464

Interest income

-10,845,494

Dividend income

-419,216

Share of loss (profit) of associates and joint ventures accounted for using equity method

-4,838,075

Loss (gain) on disposal of property, plan and equipment

559,393

Loss (gain) on disposal of investments

-1,427,121

Impairment loss on non-financial assets

577,807

Total adjustments to reconcile profit (loss)

66,877,501

Decrease (increase) in financial assets held for trading

-1,411,995

Decrease (increase) in notes receivable

-582,757

Decrease (increase) in accounts receivable

-129,827,318

Decrease (increase) in accounts receivable due from related parties

15,521,393

Decrease (increase) in other receivable

-1,707,015

Decrease (increase) in inventories

37,097,551

Decrease (increase) in prepayments

1,253,288

Total changes in operating assets

-79,656,853

Changes in operating liabilities

 

Increase (decrease) in accounts payable

80,186,615

Increase (decrease) in accounts payable to related parties

-5,853,108

Increase (decrease) in other payable

14,011,616

Increase (decrease) in provisions

-1,057,944

Increase (decrease) in receipts in advance

-10,539,496

Increase (decrease) in other current liabilities

-641,479

Increase (decrease) in accrued pension liabilities

-86,428

Total changes in operating liabilities

76,019,776

Total changes in operating assets and liabilities

-3,637,077

Total adjustments

63,240,424

Cash inflow (outflow) generated from operations

199,536,121

Income taxes refund (paid)

-26,784,550

Net cash flows from (used in) operating activities

172,751,571

Acquisition of available-for-sale financial assets

-488,977

Proceeds from disposal of available-for-sale financial assets

1,401,164

Acquisition of financial assets at cost

-2,060,666

Proceeds from disposal of financial assets at cost

456,764

Acquisition of investments accounted for using equity method

-1,408,714

Proceeds from disposal of investments accounted for using equity method

2,436,170

Acquisition of property, plant and equipment

-44,395,165

Proceeds from disposal of property, plant and equipment

9,106,480

Acquisition of intangible assets

-9,180,000

Increase in other financial assets

-3,394,991

Increase in other non-current assets

830,897

Increase in other prepayments

-563,668

Interest received

10,475,314

Dividends received

1,552,262

Other investing activities

1,327,042

Net cash flows from (used in) investing activities

-33,906,088

Increase in short-term loans

54,232,791

Increase in short-term notes and bills payable

11,990,920

Proceeds from issuing bonds

28,242,000

Repayments of bonds

-32,477,430

Proceeds from long-term debt

17,761,410

Repayments of long-term debt

-26,877,214

Increase in other non-current liabilities

834,513

Cash dividends paid

-17,753,800

Interest paid

-8,188,197

Change in non-controlling interests

3,930,733

Net cash flows from (used in) financing activities

31,695,726

Effect of exchange rate changes on cash and cash equivalents

17,958,880

Net increase (decrease) in cash and cash equivalents

188,500,089

Cash and cash equivalents at beginning of period

505,526,956

Cash and cash equivalents at end of period

694,027,045

Cash and cash equivalents reported in the statement of financial position

694,027,045

 

Note:

 

(*) Figures are based on the Taiwan generally accepted accounting principle.

 

(#) Figures are based on the IFRSs Accounting System.

 

 

Bankers

 

Subject declined to disclose its bank details; from other source we could not obtain the relevant information, either.

 

Public Record

 

Mortgage

 

1

Case Type:

Chattel Mortgage

Certificate No.:

025878

Debtor Name:

Hon Hai Precision Industry Co., Ltd.

Document Number:

218194

Date of Registration:

1986-8-25

Date of Alteration:

1986-8-25

Status:

Paid off

2

Case Type:

Chattel Mortgage

Certificate No.:

028886

Debtor Name:

Hon Hai Precision Industry Co., Ltd.

Document Number:

315518

Date of Registration:

1987-10-23

Date of Alteration:

1987-10-23

Status:

Paid off

3

Case Type:

Chattel Mortgage

Certificate No.:

028973

Debtor Name:

Hon Hai Precision Industry Co., Ltd.

Document Number:

196021

Date of Registration:

1988-2-8

Date of Alteration:

1988-2-8

Status:

Paid off

4

Case Type:

Chattel Mortgage

Certificate No.:

030044

Debtor Name:

Hon Hai Precision Industry Co., Ltd.

Document Number:

197236

Date of Registration:

1988-3-18

Date of Alteration:

1988-3-18

Status:

Paid off

5

Case Type:

Chattel Mortgage

Certificate No.:

031320

Debtor Name:

Hon Hai Precision Industry Co., Ltd.

Document Number:

291720

Date of Registration:

1988-8-12

Date of Alteration:

1988-8-12

Status:

Paid off

6

Case Type:

Chattel Mortgage

Certificate No.:

032890

Debtor Name:

Hon Hai Precision Industry Co., Ltd.

Document Number:

196539

Date of Registration:

1989-3-3

Date of Alteration:

1989-3-3

Status:

Paid off

7

Case Type:

Chattel Mortgage

Certificate No.:

034838

Debtor Name:

Hon Hai Precision Industry Co., Ltd.

Document Number:

314473

Date of Registration:

1989-12-19

Date of Alteration:

1989-12-19

Status:

Paid off

8

Case Type:

Chattel Mortgage

Certificate No.:

035734

Debtor Name:

Hon Hai Precision Industry Co., Ltd.

Document Number:

987291

Date of Registration:

1990-6-12

Date of Alteration:

1990-6-12

Status:

Paid off

9

Case Type:

Chattel Mortgage

Certificate No.:

044140

Debtor Name:

Hon Hai Precision Industry Co., Ltd.

Document Number:

195127

Date of Registration:

1994-1-10

Date of Alteration:

--

Status:

Paid off

 

Lawsuit

 

1

Trial Number:

2007,Beijian, 37800

Date of Trial:

2007-11-30

Reason:

Payment for damaging.

Claimant:

He Yun Car Rental Co., Ltd. (Literal Translation)

Defendant:

Hon Hai Precision Industry Co., Ltd.

2

Trial Number:

2007, Beijian, 363

Date of Trial:

2007-8-15

Reason:

Payment for damaging.

Claimant:

He Yun Car Rental Co., Ltd. (Literal Translation)

Defendant:

Hon Hai Precision Industry Co., Ltd.

 

 

Special Note

 

Interview Details

Name

Ms. Chen

Department

Sales Department

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 61.55

UK Pound

1

Rs. 103.50

Euro

1

Rs. 82.41

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

DPT

 

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.