MIRA INFORM REPORT

 

 

Report Date :

17.06.2014

 

IDENTIFICATION DETAILS

 

Name :

VOLTRONIC POWER TECHNOLOGY CORP.

 

 

Registered Office :

5F., No.151, Xinhu 1st Rd., Neihu Dist., Taipei City 11494,

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

01.05.2008

 

 

Com. Reg. No.:

28865032

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and sales of electronic components

 

 

No. of Employees

60 Employees (Taiwan)

1,000 Employees (Group)

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No complaints

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

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

 

 

 


Company name and address

 

Company Name:

VOLTRONIC POWER TECHNOLOGY CORP.

Supplied Name:

VOLTRONIC POWER TECHNOLOGY CORP.

Trading Address:

5F., No.151, Xinhu 1st Rd., Neihu Dist., Taipei City 11494, Taiwan (R.O.C.)

Supplied Address:

5F, NO. 151, XINHU 1ST ROAD, NEIHU DIST, TAIPEI TAIPEI TAIWAN

Telephone Number:

+886-2-2791-8296

Fax Number:

+886-2-8791-8216

E-mail:

sales@voltronic.com.tw

Website:

www.voltronicpower.com

Notes: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

VOLTRONIC POWER TECHNOLOGY CORP.

Registered Address:

5F., No.151, Xinhu 1st Rd., Neihu Dist., Taipei City 11494, Taiwan (R.O.C.)

Date of Foundation:

2008-5-1

Registration Number:

28865032

Registry:

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

Registered Capital:

NTD 700,000,000 (USD 23,800,000)

(As of 2014.06, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 674,699,660 (USD 22,939,788)

Legal Representatives:

Zhuoming Xie

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sales of electronic components, etc

Staff:

About 60 Employees (Taiwan)

About 1,000 Employees (Group)

Listed at Stock Exchange:

Yes; Stock Code 6409

Date of Last Annual Return:

2014-4-15

 

 

History

 

Subject was incorporated on 2008-5-1 with registered number 28865032 as Joint Stock Company in Taiwan.

 

Subject listed on Taiwan Stock Exchange on 2014-3-31.


 

Shareholders

 

Name

Subscription Shares

Zhuoming Xie

6,845,208

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

2,593,631

FSP Technology Inc.

6,111,187

RPS. S.P.A. (Italy)

5,988,531

Fu Feng Sheng Investment Co., Ltd. (Literal Translation)

2,733,531

 

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

 

Shareholder Information:

1

Registered Name:

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

Registered Address:

2nd Floor-1, No.333, Fuxing North Road, Songshan District, Taipei City, Taiwan

Date of Foundation:

2007-2-27

Registration Number:

28474871

Registry:

Taipei City Government

Registered Capital:

NTD 29,000,000 (USD 986,000)

(As of 2014.06, 1 NTD = 0.0340 USD)

Legal Representatives:

Cuifang Chen

Legal Form:

Private Limited Liabilities Company

Listed at Stock Exchange:

No

Date of Last Annual Return:

2013-1-11

2

Registered Name:

FSP Technology Inc.

Registered Address:

No.22, Jianguo E. Rd., Taoyuan City, Taoyuan Hsien, Taiwan, R.O.C.

Date of Foundation:

1993-4-15

Registration Number:

84239055

Registry:

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

Registered Capital:

NTD 3,600,000,000 (USD 122,400,000)

(As of 2014.06, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 2,344,657,920 (USD 79,718,369)

Legal Representatives:

Zongshun Wang

Legal Form:

Joint Stock Company

Listed at Stock Exchange:

Yes; Stock Code: 3015

Date of Last Annual Return:

2014-2-26

3

Registered Name:

Fu Feng Sheng Investment Co., Ltd. (Literal Translation)

Registered Address:

No.27, Sanhe Road, Yihe Village, Citong Township, Yunlin County, Taiwan

Date of Foundation:

2006-7-3

Registration Number:

28350436

Registry:

MOEA Central Office

Registered Capital:

NTD 100,000,000 (USD 3,400,000)

(As of 2014.06, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 100,000,000 (USD 3,400,000)

Legal Representatives:

Yuzhe Lin

Legal Form:

Joint Stock Company

Listed at Stock Exchange:

No

Date of Last Annual Return:

2013-6-27

 

 

Subsidiaries & Branches

 

Subsidiaries

1

Name:

Ri Yue Yuan Science and Technology (Shenzhen) Co., Ltd. (Literal Translation)

Address:

1~4/F, Bldg 5, Yusheng Industrial Park, No. 467, Section Xixiang, National Highway 107, Xixiang, Bao An District, Shenzhen, China

Tel:

+86-755-8601-6601

Fax:

+86-755-8601-6603

Date of Foundation:

2008-8-27

Registration Number:

440306503324962

Registered Capital:

USD 2,000,000

Paid-up Capital:

USD 2,000,000

Legal Representatives:

Zhuoming Xie

Legal Form:

Limited Liabilities Company

2

Name:

Zhi An Science and Technology (Shenzhen) Co., Ltd. (Literal Translation)

Address:

3/F, Bldg 9, Yusheng Industrial Park, No. 467, Section Xixiang, National Highway 107, Xixiang, Bao An District, Shenzhen, China

Tel:

+86-755-27470868

Fax:

+86-755-23153339

Date of Foundation:

2011-11-3

Registration Number:

440306503415170

Registered Capital:

USD 1,000,000

Paid-up Capital:

USD 450,000

Legal Representatives:

Zhuoming Xie

Legal Form:

Limited Liabilities Company

 

 

Personnel Information

 

Core Management

 

Directors

1

Name

Zhuoming Xie

Position

Board Chairman

2

Name

Cuifang Chen

Position

Director

3

Name

FSP Technology Inc.

Position

Director

4

Name

Roberto Facci

Position

Director

5

Name

Jianran Li

Position

Independent Director

6

Name

Qingxi Yang

Position

Independent Director

7

Name

Chun-An Xu

Position

Independent Director

8

Name

Yuzhe Lin

Position

Supervisor

9

Name

Yi Chen

Position

Supervisor

10

Name

Guifang Liao

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 60 Employees (Taiwan)

About 1,000 Employees (Group)

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

5F., No.151, Xinhu 1st Rd., Neihu Dist., Taipei City 11494, Taiwan (R.O.C.)

 

Production Information

 

Subject is engaged in manufacturing of electronic components, etc.

Subject has factories in Shenzhen City, China for production.

It is introduced that subject provide OEM and ODM services.

 

Purchase Information

 

The registered activities of subject:

Business Code

Details

F113050

Wholesale of computer and office equipment

F118010

Wholesale of software

F119010

Wholesale of electronic materials

F401010

International trade business

IG03010

Energy technology service

E605010

Computer installation

E603050

Automatic control equipment engineering

CC01010

Manufacturing of power equipment, transmission equipment and distribution equipment

I501010

Product design

I599990

Other design business

ZZ99999

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

 

The raw materials such as batteries, transformers, semiconductor parts, plastic materials, PCB and wire rod, etc for production are mostly purchased in domestic market.

 

Sales Information

 

Subject is engaged in sale of electronic components, etc.

The major products sold by subject include uninterrupted power supply, PV inverter, power inverter, voltage stabilizer and so on.

We obtained the proportion of subject’s revenue in 2012 as follows for reference.

Product

The proportion of revenue in 2012

Uninterrupted Power Supply

87%

Other Electronic Components

13%

Subject’s sales regions include domestic market, other Asian countries, Europe and America, etc.

Subject’s major customers are Powervar Inc., Intex Technologies India Ltd and Compu Greiff SAS, etc.

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase

Product

Terms

Proportion

Raw materials, etc

T/T, etc

100%

 

Foreign Purchase

 

Subject has little import.

 

Sales

 

Domestic Markets

Product

Terms

Proportion

Electronic components, etc

T/T, Cash, etc

100%

 

Export

Product

Terms

Proportion

Electronic components, etc

L/C, T/T, etc

100%

 

Balance Sheet

 

Unit: NTD/000

 

2012-12-31

2011-12-31

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

1,064,539.00

471,693.00

Financial assets measured at fair value through profit or loss - current

136,482.00

310,913.00

Notes receivable - net

4,680.00

0.00

Accounts receivable - net

613,040.00

454,906.00

Accounts receivable - related parties - net

109,389.00

118,419.00

Other receivables

31,614.00

27,993.00

Other receivables - related parties

0.00

15.00

Inventories

6,385.00

1,056.00

Other prepayments

9,681.00

15,274.00

Other current assets

2,637.00

2,810.00

Current assets

1,978,447.00

1,403,079.00

Funds and Investments

 

 

Equity investments under equity method

503,371.00

312,436.00

Investments

503,371.00

312,436.00

Funds and long-term investments

503,371.00

312,436.00

Fixed Assets

 

 

Cost

 

 

Machinery and equipment

43,171.00

36,381.00

Transportation equipment

460.00

460.00

Office equipment

4,555.00

4,608.00

Leasehold improvements

4,758.00

4,758.00

Other facilities

775.00

375.00

Fixed assets cost

53,719.00

46,582.00

Accumulated depreciation

-23,513.00

-14,965.00

Construction in process and prepayment for equipments

63.00

282.00

Fixed assets

30,269.00

31,899.00

Intangible Assets

 

 

Computer software cost

4,409.00

6,294.00

Intangible assets

4,409.00

6,294.00

OtherAssets

 

 

Guarantee deposits paid

986.00

876.00

Deferred income tax assets - non current

1,157.00

0.00

Other assets

2,143.00

876.00

Assets

2,518,639.00

1,754,584.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

Notes payable

3,827.00

2,229.00

Accounts payable

29,690.00

41,795.00

Accounts payable - related parties

880,763.00

509,494.00

Income tax payable

53,161.00

19,941.00

Accrued expenses

78,598.00

85,124.00

Other payables

158.00

667.00

Advance receipts

43,093.00

39,273.00

Other current liabilities

1,486.00

389.00

Current liabilities

1,090,776.00

698,912.00

Long term Liabilities

 

 

Reserves

 

 

Other Liabilities

 

 

Deferred income tax liabilities

0.00

1,463.00

Other liabilities

0.00

1,463.00

Liabilities

1,090,776.00

700,375.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

543,476.00

462,223.00

Capital Surplus

 

 

Capital surplus - additional paid-in capital

271,713.00

256,444.00

Capital surplus

271,713.00

256,444.00

Retained Earnings

 

 

Legal reserve

52,354.00

24,397.00

Unappropriated retained earnings

564,975.00

304,000.00

Retained earnings

617,329.00

328,397.00

Stockholders' Equity and Other adjustment

 

 

Cumulative translation adjustments

-4,655.00

7,145.00

Equity adjustments

-4,655.00

7,145.00

Stockholders’ equity

1,427,863.00

(USD 48,547,342.00)

1,054,209.00

(USD 35,843,106.00)

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

0.00

0.00

(As of 2014.06, 1 NTD = 0.0340 USD)

 

 

Profit and Loss Account

 

Unit: NTD/000

 

2012

2011

Sales

4,668,260.00

(USD 158,720,840.00)

3,426,586.00

(USD 116,503,924.00)

Sales returns

13,595.00

6,371.00

Sales

4,654,665.00

3,420,215.00

Operating income

4,654,665.00

3,420,215.00

Operating costs

4,017,115.00

3,058,297.00

Gross profit (loss) from operations

637,550.00

361,918.00

Selling expense

105,587.00

95,205.00

General and administrative expenses

74,036.00

63,864.00

Research and development expenses

39,206.00

23,197.00

Operating expenses

218,829.00

182,266.00

Operating income (loss)

418,721.00

179,652.00

Non-Operating Income

 

 

Interest income

3,962.00

1,858.00

Income from long-term equity investments under the equity method

194,651.00

121,216.00

Investment income

194,651.00

121,216.00

Foreign exchange gains

0.00

14,293.00

Revaluation gain on financial assets

1,777.00

1,180.00

Miscellaneous income

5.00

5.00

Non-operating revenues and gains

200,395.00

138,552.00

Non-Operating Expenses

 

 

Interest expense

5,907.00

4,687.00

Loss on disposal of fixed assets

0.00

9.00

Foreign exchange losses

24,325.00

0.00

Miscellaneous disbursements

15.00

0.00

Non-operating expenses and losses

30,247.00

4,696.00

Income from continuing operations before income tax

588,869.00

313,508.00

Income tax expense (benefit)

68,826.00

33,941.00

Income from continuing operations

520,043.00

279,567.00

Net income (loss)

520,043.00

(USD 17,681,462.00)

279,567.00

(USD 9,505,278.00)

Primary Earnings per Share

 

 

Primary earnings per share

9.66

5.79

Diluted earnings per share

 

 

Diluted earnings per share

9.37

5.46

 

 

Cash Flows

 

Unit: NTD/000

 

2012

2011

Cash Flows from Operating Activities - Indirect Method

 

 

Net Income (Loss)

520,043.00

279,567.00

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

 

 

Depreciation Expense

8,601.00

6,607.00

Amortization Expense

2,551.00

2,634.00

Provision (Reversal of Provision) for Bad Debts Losses

1,389.00

301.00

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

-29.00

31.00

Investment Loss (Income) Recognized under Equity Method

-194,651.00

-121,216.00

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

0.00

9.00

Unrealized Revaluation Loss (Gain) on Financial Assets and Liabilities

-1,777.00

-1,180.00

Loss (Gain) on Deferred Income Tax

-31.00

1,908.00

Changes in Operating Assets and Liabilities

 

 

Decrease (Increase) in Financial Assets Held for Trading

176,208.00

-129,347.00

Decrease (Increase) in Notes Receivable

-4,680.00

0.00

Decrease (Increase) in Accounts Receivable

-159,523.00

-127,684.00

Decrease (Increase) in Accounts Receivable - Related Parties

9,030.00

-36,772.00

Decrease (Increase) in Other Receivables

-3,621.00

1,392.00

Decrease (Increase) in Other Receivable- Related Parties

15.00

0.00

Decrease (Increase) in Inventories

-5,300.00

-154.00

Decrease (Increase) in Other Prepayments

5,593.00

-1,570.00

Decrease (Increase) in Other Current Assets

0.00

1,104.00

Increase (Decrease) in Notes Payable

1,598.00

2,026.00

Increase (Decrease) in Accounts Payable

-12,105.00

8,785.00

Increase (Decrease) in Accounts Payable - Related Parties

371,269.00

138,264.00

Increase (Decrease) in Income Tax Payable

33,220.00

9.00

Increase (Decrease) in Accrued Expenses

20,663.00

32,724.00

Increase (Decrease) in Other Payables

158.00

0.00

Increase (Decrease) in Receipts in Advance

3,820.00

13,694.00

Increase (Decrease) in Other Current Liabilities

1,097.00

-335.00

Net Cash Provided by (Used in) Operating Activities

773,538.00

70,797.00

Cash Flows from Investing Activities

 

 

Acquisition of Investments Accounted for by Equity Method

-10,500.00

-3,038.00

Purchase of Property, Plant and Equipment

-7,638.00

-15,453.00

Proceeds from Disposal of Property, Plant and Equipment

0.00

6.00

Decrease (Increase) in Refundable Deposits

-110.00

193.00

Purchase of Intangible Assets

-666.00

-2,100.00

Net Cash Provided by (Used in) Investing Activities

-18,914.00

-20,392.00

Cash Flows from Financing Activities

 

 

Cash Dividends Paid

-161,778.00

-79,563.00

Proceeds from Issuance of Shares

0.00

132,000.00

Net Cash Provided by (Used in) Financing Activities

-161,778.00

52,437.00

Net Increase (Decrease) in Cash and Cash Equivalents

592,846.00

102,842.00

Cash and Cash Equivalents, Beginning of year

471,693.00

368,851.00

Cash and Cash Equivalents, End of year

1,064,539.00

471,693.00

Supplemental Cash Flow Information

 

 

Interest Paid

5,907.00

4,687.00

Interest Paid- Excluding Capitalized Interest

5,907.00

4,687.00

Income Tax Paid

35,637.00

32,023.00

Non-cash Investing and Financing Activities

 

 

Cumulative Translation Adjustments

-14,216.00

20,004.00

Employee Bonus Payable and Compensation Due to Directors and Supervisors

27,189.00

82,997.00

Others

2,416.00

-3,608.00

Investing Activities Affecting Both Cash and Non-cash Items

 

 

Cash Paid for Acquisition of Property, Plant and Equipment

 

 

Increase in Property, Plant and Equipment

6,971.00

16,120.00

Increase (Decrease) in Payable for Equipment Purchased

667.00

-667.00

Cash Paid for Acquisition of Property, Plant and Equipment

7,638.00

15,453.00

 

 

Bankers

 

Subject declined to disclose any information about bankers, and we can not obtain the information from other source.

 

 

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.


 

Interview Details

 

Name

Ms. Chen

Department

Sales Department


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.01

UK Pound

1

Rs.101.99

Euro

1

Rs.81.25

 

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.