MIRA INFORM REPORT

Report Date :

22.12.2014

IDENTIFICATION DETAILS

Name :	TONG-TAI MACHINE & TOOL CO., LTD.

Registered Office :	No.3, Luke 3rd Rd., Luzhu Dist., Kaohsiung City 821,

Country :	Taiwan

Financials (as on) :	30.09.2014

Date of Incorporation :	09.01.1969

Com. Reg. No.:	88120872

Legal Form :	Joint Stock Company

Line of Business :	Manufacturing and sales of CNC lathe, machining centers and special purpose machines

No. of Employees :	740

RATING & COMMENTS

MIRA’s Rating :

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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Taiwan

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. 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

Company name and address

Company Name:	TONG-TAI MACHINE & TOOL CO., LTD.
Supplied Name:	TONG TAI MACHINE & TOOL CO LTD
Trading Address:	No.3, Luke 3rd Rd., Luzhu Dist., Kaohsiung City 821, Taiwan (R.O.C.)
Supplied Address:	No 3 Luke 3ed Rd Luzhu Dist Kao Hsiung Hsien 82151
Telephone Number:	+886-7-976-1588
Fax Number:	+886-7-976-1589
E-mail:	info@tongtai.com.tw/ jason01@tongtai.com.tw

Notes: The exact name and address are as above.

Company Identification Details

Registered Name:	TONG-TAI MACHINE & TOOL CO., LTD.
Registered Address:	No.3, Luke 3rd Rd., Luzhu Dist., Kaohsiung City 821, Taiwan (R.O.C.)
Date of Foundation:	1969-1-9
Registration Number:	88120872
Registry:	Southern Science Industrial Park Administration
Registered Capital:	NTD 2,500,000,000 (USD 83,750,000) (As of 2014.12, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 2,310,298,640 (USD 76,470,884)
Legal Representatives:	Ruixiong Yan
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sales of CNC lathe, machining centers and special purpose machines, etc
Staff:	About 740 Employees
Listed at Stock Exchange:	Yes; Stock Symbol: 4526
Date of Last Annual Return:	2014-7-11

History

Subject was incorporated on 1969-1-9 with registered number 88120872 as Joint Stock Company in Taiwan.

Subject listed on Taiwan stock exchange on 2003-9-15.

Corporate Structure

Factories

1
Name:	Hunei Plant
Address:	No.946, Sec. 1, Zhongshan Rd., Hunei Dist., Kaohsiung City, Taiwan (R.O.C.)
Date of Foundation:	1990-12-31
Date of Registration:	1990-12-31
Factory Registration Number:	99662061
Factory Manager:	Ruixiong Yan
Status:	In production
Date of Last Annual Return:	2009-7-9
Major Products:	291 machinery and equipment for processing metal 293 general machinery 251 metal hand tool and mold 301 automobile 302 automobile body 303 automobile components 312 haulage motor and its components
2
Name:	Plant 2
Address:	No.860, Sec. 1, Zhongshan Rd., Hunei Dist., Kaohsiung City, Taiwan (R.O.C.)
Date of Foundation:
Date of Registration:	2001-5-23
Factory Registration Number:	99661243
Factory Manager:	Ruixiong Yan
Status:	In production
Date of Last Annual Return:	2011-9-28
Major Products:	291 machinery and equipment for processing metal 292 other special developing machinery and equipment 303 automobile components 312 haulage motor and its components 319 other unclassified transportation facilities
3
Name:	Plant 1
Address:	No.3, Luke 3rd Rd., Luzhu Dist., Kaohsiung City 821, Taiwan (R.O.C.)
Date of Registration:	2006-8-11
Factory Registration Number:	94A00200
Factory Manager:	Ruixiong Yan
Status:	In production
Date of Last Annual Return:	2009-4-24
Major Products:	292 other special developing machinery and equipment 293 general machinery and equipment 263 printed circuit board 269 other electronic components

Branches

Name	Tong-Tai Machine & Tool Co., Ltd. Hunei Branch
Registered Address:	No.946, Sec. 1, Zhongshan Rd., Hunei Dist., Kaohsiung City, Taiwan (R.O.C.)
Registration Number	13111486
Date of Registration	2005-11-8
Status	Live Company
Manager Name	Ruixiong Yan
Date of Last Annual Return	2006-9-21

Related Companies

1
Name	Shuzhou TongYu Machine & Tool Co., Ltd.
Address	Factory 1 No.555, Huahong Road, Economic Development Area of Wujiang City, Jiangsu Province, China Factory 2 No.666, Huahong Road, Economic Development Area of Wujiang City, Jiangsu Province, China
Telephone Number	+86-512-6343-0168
Fax Number	+86-512-6343-1622
2
Name	Honor Seiki Co., Ltd.
Address	No. 6, sec. 2, Zhongshan Rd., Hunei Dist., Kaohsiung City 82942, Taiwan (R.O.C)
Telephone Number	+886-7-975-9888
Fax Number	+886-7-975-9999
3
Name	Asia Pacific Elite Corp.
Address	N0.26-3, Jhuangcian Rd. Shengang Dist., Taichung City 42951, Taiwan (R.O.C)
Telephone Number	+886-4-2563-1959
Fax Number	+886-4-2563-1985
4
Name	QuickTECH Machinery Co., Ltd.
Address	No. 35, Keji 1 Road, Tainan City 70955, Taiwan (R.O.C)
Telephone Number	+886-6-384-1155
Fax Number	+886-6-384-1177

Global Branch, Agent and Offices

China	Shuzhou Tong-Yu TEL:+86-512-634-30168 FAX :+86-512-634-31622 PCB Drilling Machine Agent TEL:+86-755-2988-2890~2 FAX :+86-755-2988-2713 PCB Routing Machine Agent TEL:+86-512-5782-5900 FAX :+86-512-5782-5700 Tianjin Branch TEL:+86-22-2441-7640 FAX :+86-22-2441-0761 Wuhan Branch TEL:+86-27-5940-9109 FAX :+86-27-5940-9110 Guangdong Branch TEL:+86-755-2722-2119 FAX :+86-755-2722-2115 Shanghai Office TEL:+86-21-2420-8138 FAX :+86-21-3407-3262 Chongching Branch TEL:+86-23-6786-5925 FAX :+86-23-6786-7717 Shenyang Office TEL:+86-24-2414-2968 FAX :+86-24-2411-5782 Ningbo Office TEL:+86-574-8711-6755 FAX :+86-574-8712-4525 Xiamen Office TEL:+86-592-5027-149 FAX :+86-592-5027-149 Dalian Office TEL:+86-411-8732-8455 FAX :+86-411-8732-8455 Nanchang Office TEL:+86-791-8642-5418 FAX :+86-791-8642-5418
Asia	Japan Branch TEL:+81-4-7143-8355 FAX :+81-4-7143-8360 Thailand Office TEL:+66-2-744-3440 FAX :+66-2-398-6518 Indonesia Office TEL:+62-21-4585-0521 FAX :+62-21-4584-0522 Vietnam Office TEL:+84-9-0991-8318 Philippines (MBK) TEL:+63-2-711-3751 FAX :+63-2-712-2484 Singapore (Flexspeed) TEL:+65-9272-8383 FAX :+65-6853-3733 Malaysia Office TEL:+60-3-7845-6815 FAX :+60-3-7845-6851 Malaysia (Quick Tech) TEL:+60-3-8068-3836 FAX :+60-3-8068-3863 Malaysia (IPM) TEL:+60-7-861-0651 FAX :+60-7-861-0653 India (PAC) TEL:+91-129-400-1625 FAX :+91-129-400-1627 India (Flexspeed) TEL:+91-80-4117-8422 FAX :+91-80-4117-9278 PCB Korea (Fine Electronics) TEL:+82-3-1499-0385 FAX :+82-3-1499-0384 PCB Singapore (Unistar) TEL:+65-6861-1881 FAX :+65-6861-7070
Europe	Netherlands Branch TEL:+31-10-292-2246 FAX :+31-10-292-2228 Romania Branch (CMIE) TEL:+40-2-6441-7983 FAX :+40-2-6440-3983 Benelux (Topper-Benelux) TEL:+31-1-6145-4639 FAX :+31-1-6145-4768 Denmark (AMP-CNC) TEL:+45-8688-2698 FAX :+45-8688-2680 Turkey (Bimaksan) TEL:+90-21-2544-4644 FAX :+90-21-2567-8477 Belarus (CROSSLINE) TEL:+375-117211-8644 FAX :+375-117211-8643 Ukraine (IMS) TEL:+380-48-942-7719 Norway (AIL) TEL:+47-5144-3537 FAX :+47-3333-5098 Israel (MTM) TEL:+972-3-647-9560 FAX :+972-3-647-9578 Hungary (NCT KFT) TEL:+36-1-467-6302 FAX :+36-1-467-6309 Italy (Tecnor) TEL:+39-2-824-2851 FAX :+39-2-825-5408 Poland (H.T.M ) TEL:+48-3-2332-1499 FAX :+48-3-2335-4103 Finland (Nucos Oy) TEL:+358-9-294-3590 FAX :+358-9-294-7590 Russia (PRIDE-TWL) TEL:+7-495-647-2641 FAX :+7-495-647-2638 Sweden (Promab) TEL:+46-5485-0210 FAX :+46-5485-0217 Switzerland (STEINER) TEL:+41-6-2855-0660 FAX :+41-6-2855-0669 Austria (TBW) TEL:+43-6-6262-7501 FAX :+43-6-6262-4402 France (Techni-CN) TEL:+33-4-7443-6720 FAX :+33-4-7493-7925 Spain (Ferrotall) TEL:+34-966-662-296 FAX :+34-966-663-856
America	U.S.A. Branch TEL:+1-845-267-5500 FAX :+1-845-267-5546 U.S.A. (ABSOLUTE) TEL:+1-440-960-6911 FAX :+1-440-960-6918 Mexico (HI-TEC) TEL:+52-55-5565-9008 FAX :+52-55-5390-8888 Canada (Tai-Max) TEL:+1-78-0434-6949 FAX :+1-78-0433-7172 Brazil (SCANNER) TEL:+55-11-5051-5545 FAX :+55-11-5051-8280 Argentina (ALTEMAQ) TEL:+54-11-5238-9870 FAX :+54-11-5256-6220
Africa	South Africa (PBS) TEL:+27-11-914-3360 FAX :+27-11-914-3366
Oceania	Australia (Chiron) TEL:+61-3-9575-0000 FAX :+61-3-9563-7944

Shareholders

Major Shareholders

Name	Subscription Shares
Ruixiong Yan	4,955,195
San Shin Co., Ltd.
7,320,820
Rui Xiu Investment Co., Ltd (Liberal Translation)	7,987,737
Guoqin Zhuang	1,990,940
Huocheng Guo	2,467,375
Dongying Investment Co., Ltd (Liberal Translation)	3,234,819
Yangguang Dong	2,025,214
Huizhen Yan	1,264,067

Shareholder Information:

1
Registered Name:	San Shin Co., Ltd.
Registered Address:	No.59, Cheng Kung Road, Tainan, Taiwan, R.O.C.
Date of Foundation:	1966-1-6
Registration Number:	68060200
Registry:	Tainan City Government
Registered Capital:	NTD 200,000,000 (USD 6,620,000) (As of 2014.12, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 200,000,000 (USD 6,620,000)
Legal Representatives:	Huazhou Yan
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2014-4-24
2
Registered Name:	Rui Xiu Investment Co., Ltd (Liberal Translation)
Registered Address:	1F, No.59, Cheng Kung Road, Tainan, Taiwan, R.O.C.
Date of Foundation:	2000-8-17
Registration Number:	12600731
Registry:	Tainan City Government
Registered Capital:	NTD 23,500,000 (USD 777,850) (As of 2014.12, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD 23,500,000 (USD 777,850)
Legal Representatives:	Xiuhui Lin
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2013-10-1
3
Registered Name:	Dongying Investment Co., Ltd (Liberal Translation)
Registered Address:	1F, No. 12, Lane 144, Gong Yuan Bei Road, North District, Tainan, Taiwan, R.O.C.
Date of Foundation:	2003-8-27
Registration Number:	80471636
Registry:	Tainan City Government
Registered Capital:	NTD (USD) (As of 2014.12, 1 NTD = 0.0331 USD)
Paid-up Capital:	NTD (USD )
Legal Representatives:	Senmao Wang
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2010-7-20

Management Information

Core Management

Directors

1
Name		Ruixiong Yan
Position		Board Chairman
2
Name	Huazhou yan
Position		Director
3
Name	Xuanren Gong
Position		Director
4
Name	Guoqin Zhuang
Position		Director
5
Name	Huocheng Guo
Position		Director
6
Name		Kunchong Wang
Position		Director
7
Name	Senmao Wang
Position		Director
8
Name	Huixiong Chen
Position		Independent Director
9
Name	Tinglang Xiao
Position		Independent Director
10
Name	Yangguang Dong
Position		Supervisor
11
Name		Huizhen Yan
Position		Supervisor
12
Name	Hongqi Li
Position		Supervisor
13
Name	Kunchong Wang
Position		Manager
Date of Appointment		2008-6-13

Personnel Structure

Total Employees

About 740 Employees

Operation Information

Offices & Factories

	Headquarters
Add	No.3, Luke 3rd Rd., Luzhu Dist., Kaohsiung City 821, Taiwan (R.O.C.)

Production Information

Subject is engaged in manufacturing of CNC lathe, machining centers and special purpose machines, etc

Subject has three factories in Taiwan and has two factories in Suzhou City, Jiangsu Province, China which are mainly engaged in manufacturing of small-scaled equipment for production.

Subject obtained the certification of ISO 9002, ISO 9001 and ISO-14001 quality certification.

Purchase Information

The registered activities of subject:

Business Code	Details
CB01010	The industry of manufacturing machine and equipment
CC01030	Manufacture of electronic products and audio-visual products
CC01080	Manufacture of electronic components
CC01110	Manufacture of the computer and ancillary equipment of computers (the production and management in the limited area)
CD01030	Manufacture of the automobiles and components of the automobiles (the production and management in the limited area)
CD01040	Manufacture of the locomotives and components of the locomotives (the production and management in the limited area)
CD01060	Manufacture of air crafts and components of the air crafts (the production and management in the limited area)
CP01010	Manufacture of hand tools (the production and management in the limited area)
CQ01010	Manufacture of the moulds (the production and management in the limited area)
CE01030	Manufacture of optical instrument (the production and management in the limited area)
F401010	International trade
--	Research, development, process and sales of the following products: 1.The hole forming devices of printed circuit (wiring) board 2. Central vacuum of linear motors for comprehensive processing 3. Central vacuum of comprehensive processing in high-speed 4. CNC computer numerical control 5. Planar indicator: led manufacture process equipment and components 6.The international trade of the above products

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

It is introduced that subject import some technologies from Japan.

Sales Information

Subject is engaged in sale of CNC lathe, machining centers and special purpose machines, etc

Subject’s sales regions include Asia, America and Europe, etc.

Subject’s main customers include vehicle manufacturer, mould manufacturer and electronic manufacturer, etc

It is introduced that subject has many sales offices which are located in all over the world, such as mainland China, Europe, America, Africa, Oceania, etc.

Subject has their own brands “Tongtai”, “Topper” and “TT”.

It is introduced that some clients of subject include Toyota, Taiwan Hitachi, Taiwan Toshiba, SYM, etc.

Major products

No.	Product
1	Vertical Tapping Centers
2	Vertical Machining Centers
3	Vertical Machining Centers for Die & Mold
4	Vertical Machining Centers for Five-Axis
5	Horizontal Machining Centers
6	Horizontal Boring & Milling Machines
7	CNC Lathes
8	Vertical CNC Lathes
9	Multi-Tasking Turning Centers
10	Al. Wheel Machines
11	PCB Machines

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Products	Component and etc
Payment Terms	Cash, T/T and etc

Import

Products	Component and etc
Payment Terms	L/C, T/T and etc

Sales

Domestic Markets

Product	CNC lathe, machining centers and special purpose machines, etc
Selling Terms	Cash, T/T and etc

Export

Product	CNC lathe, machining centers and special purpose machines, etc
Selling Terms	L/C, T/T and etc

Balance Sheet

Unit: NTD/000

Consolidated	2014-9-30	2013-9-30
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	1,037,056	1,006,742
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	164,399	106,495
Notes receivable, net
Notes receivable, net	468,819	488,107
Accounts receivable, net
Accounts receivable, net	3,423,712	2,521,723
Accounts receivable due from related parties, net
Accounts receivable due from related parties, net	4,784	2,216
Other receivables
Other receivables, net	85,431	48,466
Current tax assets
Total current tax assets	11,288	39,306
Inventories
Total inventories	4,747,942	4,116,054
Prepayments
Total prepayments	241,416	152,000
Other current assets
Other current financial assets	271,480	76,754
Other current assets, others	29,088	7,620
Total other current assets	300,568	84,374
Total current assets	10,485,415	8,565,483
Non-current assets
Non-current available-for-sale financial assets
Non-current available-for-sale financial assets, net	166,374	151,125
Investments accounted for using equity method
Investments accounted for using equity method, net	20,000	0
Property, plant and equipment
Total property, plant and equipment	2,440,434	2,618,940
Investment property, net
Investment property, net	319,012	244,530
Intangible assets
Total intangible assets	13,731	13,731
Deferred tax assets	134,510	99,474
Other non-current assets
Guarantee deposits paid	6,832	7,934
Long-term notes and accounts receivable
Long-term notes and accounts receivable, net	15,793	25,782
Other non-current financial assets
Total other non-current financial assets	12,000	22,551
Other non-current assets, others
Total other non-current assets, others	48,200	48,713
Total other non-current assets	82,825	104,980
Total non-current assets	3,176,886	3,232,780
Total assets	13,662,301	11,798,263
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	2,257,277	1,615,136
Short-term notes and bills payable
Total short-term notes and bills payable	344,904	139,949
Current financial liabilities at fair value through profit or loss
Total current financial liabilities at fair value through profit or loss	0	6,189
Notes payable
Total notes payable	149,627	167,546
Accounts payable
Total accounts payable	2,086,001	1,467,769
Accounts payable to related parties
Total accounts payable to related parties	94,155	62,971
Other payables
Total other payables	554,759	453,721
Current tax liabilities	88,058	30,415
Current provisions
Total current provisions	67,042	66,672
Other current liabilities
Advance receipts
Total advance receipts	1,060,169	723,575
Long-term liabilities, current portion
Total long-term liabilities, current portion	435,491	422,285
Other current liabilities, others	10,543	53,606
Total other current liabilities	1,506,203	1,199,466
Total current liabilities	7,148,026	5,209,834
Non-current liabilities
Long-term borrowings
Total long-term borrowings	593,705	1,075,604
Deferred tax liabilities
Total deferred tax liabilities	91,641	81,065
Other non-current liabilities
Long-term notes and accounts payable
Total long-term notes and accounts payable	0	0
Accrued pension liabilities	152,454	148,039
Guarantee deposits received	6,331	300
Other non-current liabilities, others	17,629	4,758
Total other non-current liabilities	176,414	153,097
Total non-current liabilities	861,760	1,309,766
Total liabilities	8,009,786	6,519,600
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	2,310,299	2,310,299
Total capital stock	2,310,299	2,310,299
Capital surplus
Total capital surplus	869,715	869,715
Retained earnings
Legal reserve	603,283	574,840
Special reserve	137,857	137,857
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	1,091,549	838,202
Total retained earnings	1,832,689	1,550,899
Other equity interest
Total other equity interest	93,161	42,110
Treasury shares	28,999	27,968
Total equity attributable to owners of parent	5,076,865	4,745,055
Non-controlling interests	575,650	533,608
Total equity	5,652,515	5,278,663
Number of share capital awaiting retirement	0	0
Equivalent issue shares of advance receipts for ordinary share	0	0
Number of shares in entity held by entity and by its subsidiaries	1,200,000	1,160,000

Profit and Loss Account

Unit: NTD/000

Consolidated	2014-1-1~2014-9-30	2013-1-1~2013-9-30
Operating revenue
Total operating revenue	6,791,023	5,540,279
Operating costs
Total operating costs	5,065,800	4,212,074
Gross profit (loss) from operations	1,725,223	1,328,205
Gross profit (loss) from operations	1,725,223	1,328,205
Operating expenses
Selling expenses
Total selling expenses	497,869	407,684
Administrative expenses
Total administrative expenses	521,660	470,672
Research and development expenses
Total research and development expenses	179,136	154,399
Total operating expenses	1,198,665	1,032,755
Net operating income (loss)	526,558	295,450
Non-operating income and expenses
Other income
Total other income	103,286	53,064
Other gains and losses
Other gains and losses, net	86,791	50,129
Finance costs
Finance costs, net	38,146	35,143
Total non-operating income and expenses	151,931	68,050
Profit (loss) from continuing operations before tax	678,489	363,500
Tax expense (income)
Total tax expense (income)	128,908	76,359
Profit (loss) from continuing operations	549,581	287,141
Profit (loss)	549,581	287,141
Other comprehensive income
Exchange differences on translation	12,014	56,749
Unrealised gains (losses) on valuation of available-for-sale financial assets	10,745	22,694
Income tax related to components of other comprehensive income	2,042	9,647
Other comprehensive income, net	20,717	69,796
Total comprehensive income	570,298	356,937
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	482,501	229,334
Profit (loss), attributable to non-controlling interests	67,080	57,807
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	502,671	293,993
Comprehensive income, attributable to non-controlling interests	67,627	62,944
Basic earnings per share
Basic earnings (loss) per share from continuing operations	2.1	0.99
Total basic earnings per share	2.1	0.99
Diluted earnings per share
Diluted earnings (loss) per share from continuing operations	2.08	0.99
Total diluted earnings per share	2.08	0.99

Cash Flows

Unit: NTD/000

Consolidated	2014-1-1~2014-9-30	2013-1-1~2013-9-30
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	678,489	363,500
Profit (loss) before tax	678,489	363,500
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	155,466	158,877
Amortization expense	15,199	11,626
Provision (reversal of provision) for bad debt expense	72,415	15,773
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	-10,363	9,161
Interest expense	38,146	35,143
Interest income	-17,987	-12,465
Dividend income	-6,299	-448
Loss (gain) on disposal of property, plan and equipment	-30,629	1,626
Loss (gain) on disposal of investment properties	0	-12,100
Impairment loss on non-financial assets	24,489	-3,043
Unrealized foreign exchange loss (gain)	0	-19,530
Other adjustments to reconcile profit (loss)	40,681	45,267
Total adjustments to reconcile profit (loss)	281,118	229,887
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in financial assets held for trading	-103,085	66,455
Decrease (increase) in notes receivable	-34,880	-138,255
Decrease (increase) in accounts receivable	-861,787	-324,805
Decrease (increase) in accounts receivable due from related parties	158	-722
Decrease (increase) in other receivable	14,066	-29,774
Decrease (increase) in inventories	-682,257	-442,189
Decrease (increase) in prepayments	-122,530	-75,896
Decrease (increase) in other current assets	-17,737	90,611
Total changes in operating assets	-1,808,052	-854,575
Changes in operating liabilities
Increase (decrease) in notes payable	21,208	-132,239
Increase (decrease) in accounts payable	637,541	569,049
Increase (decrease) in accounts payable to related parties	51,585	29,309
Increase (decrease) in other payable	96,282	-57,153
Increase (decrease) in provisions	-36,845	-41,940
Increase (decrease) in receipts in advance	255,523	120,150
Increase (decrease) in other current liabilities	-2,613	36,670
Increase (decrease) in accrued pension liabilities	372	-1,577
Increase (decrease) in other operating liabilities	10,142	-3,630
Total changes in operating liabilities	1,033,195	518,639
Total changes in operating assets and liabilities	-774,857	-335,936
Total adjustments	-493,739	-106,049
Cash inflow (outflow) generated from operations	184,750	257,451
Interest received	12,273	12,363
Dividends received	6,299	448
Interest paid	-39,165	-35,992
Income taxes refund (paid)	-101,696	-107,785
Net cash flows from (used in) operating activities	62,461	126,485
Cash flows from (used in) investing activities
Proceeds from capital reduction of available-for-sale financial assets	15,000	0
Acquisition of investments accounted for using equity method	-20,000	0
Acquisition of property, plant and equipment	-129,268	-133,989
Proceeds from disposal of property, plant and equipment	30,744	912
Decrease in refundable deposits	1,855	13,045
Acquisition of investment properties	0	-2,055
Proceeds from disposal of investment properties	0	96,718
Decrease in other financial assets	-175,797	15,134
Decrease in other non-current assets	8,856	-22,085
Net cash flows from (used in) investing activities	-268,610	-32,320
Cash flows from (used in) financing activities
Increase in short-term loans	740,661	166,480
Decrease in short-term loans	-199,968	0
Increase in short-term notes and bills payable	65,029	-144,999
Proceeds from long-term debt	397,328	483,528
Repayments of long-term debt	-627,170	-459,071
Increase in guarantee deposits received	1,087	69
Cash dividends paid	-252,852	-226,500
Payments to acquire treasury shares	0	-27,968
Acquisition of ownership interests in subsidiaries	-10,020	0
Change in non-controlling interests	-43,243	-24,088
Net cash flows from (used in) financing activities	70,852	-232,549
Effect of exchange rate changes on cash and cash equivalents	27,481	39,915
Net increase (decrease) in cash and cash equivalents	-107,816	-98,469
Cash and cash equivalents at beginning of period	1,144,872	1,105,211
Cash and cash equivalents at end of period	1,037,056	1,006,742
Cash and cash equivalents reported in the statement of financial position	1,037,056	1,006,74

Note: Subject didn’t submit its individual financial information; we obtained its consolidated financials as above for reference.

The above financial 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:	Conditional Sale
Document Number:	10331056600
Date of Registration:	2014-9-25
Nature:	Registration
First Party:	Tong-Tai Machine & Tool Co., Ltd.
Second Party:	Chang De Technology Co., Ltd (Liberal Translation)
Date of Alteration:	Allowed
2
Case Type:	Conditional Sale
Document Number:	10331056550
Date of Registration:	2014-9-25
Nature:	Registration
First Party:	Tong-Tai Machine & Tool Co., Ltd.
Second Party:	Bao Dao Jig Yang Co., Ltd (Liberal Translation)
Date of Alteration:	Allowed
3
Case Type:	Conditional Sale
Document Number:	10331056580
Date of Registration:	2014-9-25
Nature:	Registration
First Party:	Tong-Tai Machine & Tool Co., Ltd.
Second Party:	Chang De Technology Co., Ltd (Liberal Translation)
Date of Alteration:	Allowed
4
Case Type:	Conditional Sale
Document Number:	10331056590
Date of Registration:	2014-9-25
Nature:	Registration
First Party:	Tong-Tai Machine & Tool Co., Ltd.
Second Party:	Chang De Technology Co., Ltd (Liberal Translation)
Date of Alteration:	Allowed

Lawsuit

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

Special Note

Interview Details

Department

Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.07
UK Pound	1	Rs.98.73
Euro	1	Rs.77.46

INFORMATION DETAILS

Analysis Done by :	KAR

Report Prepared by :	NIS

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.