MIRA INFORM REPORT

 

 

Report Date :

14.08.2014

 

IDENTIFICATION DETAILS

 

Name :

SYSCOM COMPUTER ENGINEERING COMPANY

 

 

Registered Office :

6F., No.115, Emei St., Wanhua Dist., Taipei City 10844

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

17.07.1975

 

 

Com. Reg. No.:

4967550

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Providing syndicated services

 

 

No of Employees :

About 800 Employees

 

 

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 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:

Syscom Computer Engineering Company

Supplied Name:

SYSCOM COMPUTER ENGINEERING COMPANY

Trading Address:

B1, 2-7/F, No.115, Emei St., Wanhua Dist., Taipei City 10844, Taiwan

Supplied Address:

3f, No 115, EMEI St, Wanhua Dist Taipei City 108

Telephone Number:

+886-2-2191-6066

Fax Number:

+886-2-2388-7171

Notes: The exact address is as above, and the supplied address is not complete.

 

Credit Summary

 

Credit Opinion:

Business connections are permissible.

 

 

Company Identification Details

 

Registered Name:

Syscom Computer Engineering Company

Registered Address:

6F., No.115, Emei St., Wanhua Dist., Taipei City 10844, Taiwan

Date of Foundation:

1975-7-17

Registration Number:

4967550

Registry:

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

Registered Capital:

NTD 1,570,000,000 (USD 52,281,000)

(As of 2014.08, 1 NTD = 0.0333 USD)

Paid-up Capital:

NTD 1,000,000,000 (USD 33,300,000)

Legal Representatives:

Ruifu Liu

Legal Form:

Joint Stock Company

Principal Activities:

Providing syndicated services, etc.

Staff:

About 800 Employees

Listed at Stock Exchange:

Yes; (Stock Code: 2453)

Date of Last Annual Return:

2014-6-30

 

History

 

Subject was incorporated on 1975-7-17 with registered number 4967550 as Joint Stock Company in Taiwan.

 

Subject is listed on Taiwan Stock Exchange on 2001-5-22.

 

 

Corporate Structure

 

Branches

1

Name

Tainan Branch

Registration Number

84310021

Date of Registration

1994-3-3

Status

Active

Manager Name

Jianxing Huang

Date of Last Annual Return

2002-9-2

2

Name

Taichung Branch

Registration Number

23413762

Date of Registration

1989-6-5

Status

Active 

Manager Name

Jianxing Huang

Date of Last Annual Return

2014-1-17

3

Name

Gaoxiong Branch

Registration Number

23413756

Date of Registration

1989-6-5

Status

Active

Manager Name

Jianxing Huang

Date of Last Annual Return

2002-9-2

 

Offices

1

Name

Taoyuan Office

Address

7/F, No. 373-6, Zhongshan Rd., Taoyuan City, Taiwan

Tel

+886-3-333-9842

Fax

+886-3-333-9840

2

Name

Xinzhu Office

Address

8-6/F, No. 27, Guanxin Rd., East Dist., Xinzhu City, Taiwan

Tel

+886-3-579-5842

 

Related Companies

1

Name

DBMaker Japan, Inc.

Address

Tokyo, Japan

Tel

+81-3-5206-7398

Fax

+81-3-5206-7396

2

Name

Syscom Computer Engineering (Thailand) Company (Literal Translation)

Address

Room B11, 6 Fl., 138 Boonmitr Building, Silom Road, Bangrak, Bangkok 10500, Thailand.

Tel

+66-2-634-0305~7

Fax

+66-2-634-0308

3

Name

Syscom Computer Engineering (Vietnam) Company (Literal Translation)

Address

B12, No.319, Ly Thuong Kiet, Ward 15, Dist.11, HCMC, Vietnam

Tel

+84-8-3863-8393

Fax

+84-8-3863-8394

4

Name

CASEMaker Inc.

Address

1680 Civic Center Drive, Santa Clara,CA 95050, U.S.A

Tel

+1-408-261-8265

Fax

+1-408-261-2153

5

Name

Syscom Computer Engineering (Shenzhen) Company (Literal Translation)

Address

Room 805, Zhuoyue Shidai Plaza, No. 4068, Yitian Rd., Futian Central Dist., Shenzhen City, China

Tel

+86-755-8378-0029

Fax

+86-755-8378-2067

 

 

Shareholders

 

Major Shareholders

 

Name

Subscription Shares      

 

Ruifu Liu

 

21,929,787

 

Ruilong Liu

402,562

Suyun Zheng

2,254

Fengqiu You

1,273

Zhijun Liu

3,110,689

Chengling Pan

2,329

 

Management Information

 

Core Management

 

Directors

1

Name

Ruifu Liu

Position

Chairman of the Board

2

Name

Ruilong Liu

Position

Director

3

Name

Bowen Wang

Position

Director

4

Name

Suyun Zheng

Position

Director

5

Name

Fengqiu You

Position

Director

6

Name

Kunshan Chen

Position

Supervisor

7

Name

Zhijun Liu

Position

Supervisor

8

Name

Chengling Pan

Position

Supervisor

9

Name

Ruilong Liu

Position

Manager

Date of Appointment

1993-11-8

 

Personnel Structure

 

Total Employees

About 800 Employees

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

B1, 2-7/F, No.115, Emei St., Wanhua Dist., Taipei City 10844, Taiwan

 

Operation Information

 

·         The registered activities of subject:

Business Code

Details

E605010 

Computer equipment installation industry

E701010 

Communication engineering

F113050 

Computer and transactional machine equipment wholesaling

F113070 

Telecommunications equipment wholesale business

F118010 

Information software wholesaling

F119010 

Electronics material wholesale business

F213030 

Computers and transactional machinery and equipment retail

F213060 

Telecommunications equipment retail

F218010 

Information software retail

F219010 

Electronics components retail business

F401010 

The international trade

G902011 

The second category of telecom enterprise

I103060 

Management consulting

I301010 

Information software services

I301020 

Data processing services

I301030 

Electronic information supply services

I501010 

Products designing

J303010 

Publishing journal (journal)

J304010 

Book industry

JA02010 

The repair business of electrical and electronic products

JA02990 

Other repair business

F401021 

Input industry of controlled telecommunications radio-frequency devices

ZZ99999 

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

 

l         Subject is engaged in providing syndicated services, etc. without any production activities. 

l         The services supplied by the subject include hardware and software programming, development, import and maintenance services, the overall information outsourcing service, consulting and training services, etc.

l         The distribution products of the subject are A+M (Analysis and Moving Solution), Cisco Collaboration Solution, etc.

l         The major service objects of the subject are communications system, management and information system in Bank, medical information system, securities information management solutions, etc.

l         It is introduced that subject has service stations in Taiwan, Mainland China, Japan, Thailand, Vietnam, USA, etc.


 

Import and export right:

Import right

Yes

Export right

Yes

 

Settlements

 

Subject declined to disclose the detail settlement information of the subject, and it is introduced that the details of settlements are to be negotiated.

 

Balance Sheet

Unit: NTD/000

 

2013-12-31

2012-12-31

Total cash and cash equivalents

341,361

398,470

Current available-for-sale financial assets, net

74,914

3,907

Current bond investment without active market, net

145,804

123,376

Notes receivable, net

29,675

17,710

Accounts receivable

1,484,034

1,351,918

Lease payments receivable

39

1,104

Accounts receivable, net

1,484,073

1,353,022

Other receivables, net

9,976

6,241

Total inventories

361,586

510,157

Total prepayments

150,755

177,039

Other current assets, others

17,664

9,645

Total other current assets

17,664

9,645

Total current assets

2,615,808

2,599,567

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

1,580

1,450

Non-current financial assets at cost, net

3,589

4,784

Non-current bond investment without active market, net

71,622

77,152

Investments accounted for using equity method, net

150,545

90,263

Total property, plant and equipment

455,433

380,156

Other intangible assets, net

12,361

12,976

Total intangible assets

12,361

12,976

Deferred tax assets

25,861

18,200

Total other non-current assets, others

6,389

32,439

Total other non-current assets

6,389

32,439

Total non-current assets

727,380

617,420

Total assets

3,343,188

(USD

111,328,160.40)

3,216,987

(USD

107,125,667.10)

Total short-term borrowings

72,400

196,908

Total notes payable

4,405

718

Total accounts payable

1,048,830

1,004,178

Total other payables

203,928

85,968

Current tax liabilities

20,775

13,060

Total advance receipts

121,609

84,883

Other current liabilities, others

9,444

33,075

Total other current liabilities

131,053

117,958

Total current liabilities

1,481,391

1,418,790

Deferred tax liabilities, income tax

16,875

6,749

Total deferred tax liabilities

16,875

6,749

Accrued pension liabilities

118,667

118,985

Guarantee deposits received

10,373

12,644

Other non-current liabilities, others

1,095

3,190

Total other non-current liabilities

130,135

134,819

Total non-current liabilities

147,010

141,568

Total liabilities

1,628,401

1,560,358

Ordinary share

1,000,000

1,000,000

Total capital stock

1,000,000

1,000,000

Total capital surplus

511

0

Legal reserve

202,436

194,349

Special reserve

17,619

17,619

Total unappropriated retained earnings (accumulated deficit)

474,515

436,533

Total retained earnings

694,570

648,501

Total other equity interest

-4,998

-13,189

Total equity attributable to owners of parent

1,690,083

1,635,312

Non-controlling interests

24,704

21,317

Total equity

1,714,787

(USD

57,102,407.10)

1,656,629

(USD

55,165,745.70)

(As of 2014.08, 1 NTD = 0.0333 USD)

 

Profit and Loss Account

Unit: NTD/000

 

2013

2012

Net sales revenue

4,257,097

(USD

141,761,330.10)

4,741,682

(USD

157,898,010.60)

Total service revenue

611,125

545,311

Other operating revenue, net

228

349

Total operating revenue

4,868,450

5,287,342

Total cost of sales

3,384,827

3,882,283

Total cost of services

487,423

459,681

Total operating costs

3,872,250

4,341,964

Gross profit (loss) from operations

996,200

945,378

Gross profit (loss) from operations

996,200

945,378

Total selling expenses

718,581

680,845

Total research and development expenses

184,171

176,299

Total operating expenses

902,752

857,144

Net operating income (loss)

93,448

88,234

Total other income

41,548

27,325

Other gains and losses, net

-13,365

-15,989

Finance costs, net

4,482

4,621

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

-3,932

2,105

Total non-operating income and expenses

19,769

8,820

Profit (loss) from continuing operations before tax

113,217

97,054

Total tax expense (income)

18,034

22,405

Profit (loss) from continuing operations

95,183

74,649

Profit (loss)

95,183

74,649

Exchange differences on translation

9,498

-11,516

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

311

34

Actuarial gains (losses) on defined benefit plans

-260

-9,922

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

792

-1,523

Income tax related to components of other comprehensive income

346

0

Other comprehensive income, net

9,995

-22,927

Total comprehensive income

105,178

51,722

Profit (loss), attributable to owners of parent

94,809

73,002

Profit (loss), attributable to non-controlling interests

374

1,647

Comprehensive income, attributable to owners of parent

104,260

50,482

Comprehensive income, attributable to non-controlling interests

918

1,240

Basic earnings (loss) per share from continuing operations

0.95

0.73

Total basic earnings per share

0.95

0.73

Diluted earnings (loss) per share from continuing operations

0.95

0.73

Total diluted earnings per share

0.95

0.73

(As of 2014.08, 1 NTD = 0.0333 USD)


Cash Flows

Unit: NTD/000

 

2013

2012

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

 

 

Profit (loss) from continuing operations before tax

113,217

97,054

Profit (loss) before tax

113,217

97,054

Depreciation expense

83,756

77,841

Amortization expense

1,228

1,147

Provision (reversal of provision) for bad debt expense

-497

1,183

Interest expense

4,482

4,621

Interest income

-3,682

-4,012

Dividend income

-51

-47

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

3,932

-2,105

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

9,921

11,340

Loss (gain) on disposal of investments

-1,473

-763

Impairment loss on financial assets

1,206

0

Impairment loss on non-financial assets

23,183

7,743

Unrealized foreign exchange loss (gain)

5,844

-6,640

Total adjustments to reconcile profit (loss)

127,849

90,308

Decrease (increase) in notes receivable

-11,965

-10,997

Decrease (increase) in accounts receivable

-125,242

-137,846

Decrease (increase) in other receivable

-3,152

9,711

Decrease (increase) in inventories

99,853

-62,503

Decrease (increase) in prepayments

26,665

-36,099

Decrease (increase) in other current assets

6,780

5,715

Decrease (increase) in other operating assets

262

1,056

Total changes in operating assets

-6,799

-230,963

Changes in operating liabilities

 

 

Increase (decrease) in notes payable

3,687

-12,487

Increase (decrease) in accounts payable

40,334

164,173

Increase (decrease) in other payable

113,970

-45,274

Increase (decrease) in receipts in advance

36,726

44,406

Increase (decrease) in other current liabilities

-23,631

13,507

Increase (decrease) in accrued pension liabilities

-578

1,362

Total changes in operating liabilities

170,508

165,687

Total changes in operating assets and liabilities

163,709

-65,276

Total adjustments

291,558

25,032

Cash inflow (outflow) generated from operations

404,775

122,086

Interest received

3,678

4,025

Dividends received

51

1,027

Interest paid

-4,487

-4,616

Income taxes refund (paid)

-5,213

-15,925

Net cash flows from (used in) operating activities

398,804

106,597

Acquisition of available-for-sale financial assets

-1,201,800

-809,700

Proceeds from disposal of available-for-sale financial assets

1,132,447

909,062

Proceeds from disposal of bond investments without active market

-16,898

-48,708

Acquisition of investments accounted for using equity method

-65,000

0

Acquisition of property, plant and equipment

-142,361

-74,830

Proceeds from disposal of property, plant and equipment

312

433

Decrease in refundable deposits

8,469

-1,754

Acquisition of intangible assets

-212

-282

Increase in other non-current assets

3,168

2,542

Net cash flows from (used in) investing activities

-281,875

-23,237

Cash flows from (used in) financing activities

 

 

Decrease in short-term loans

-126,593

71,011

Increase in guarantee deposits received

-2,271

8,924

Increase in other non-current liabilities

-2,095

3,190

Cash dividends paid

-50,000

-50,000

Change in non-controlling interests

2,980

0

Other financing activities

0

-242

Net cash flows from (used in) financing activities

-177,979

32,883

Effect of exchange rate changes on cash and cash equivalents

3,941

-5,759

Net increase (decrease) in cash and cash equivalents

-57,109

110,484

Cash and cash equivalents at beginning of period

398,470

287,986

Cash and cash equivalents at end of period

341,361

398,470

Cash and cash equivalents reported in the statement of financial position

341,361

398,470

Note: The above financial information belongs to the form of after adopting IFRSs.

 

 

Bankers

 

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

 

Public Record

 

Mortgage

 

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

 

Lawsuit

 

Up to date of reporting, no existing or latent litigation of the subject has been found.

 

 

Special Note

 

Interview Details

Name

Ms. Li

Department

Sales Department


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 61.24

UK Pound

1

Rs. 103.01

Euro

1

Rs. 81.89

 

 

INFORMATION DETAILS

 

Analysis Done by :

RSM

 

 

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%)

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