MIRA INFORM REPORT

Report Date :

12.09.2014

IDENTIFICATION DETAILS

Name :	GINTECH ENERGY CORPORATION
Registered Office :	No.21, Kebei 1st Rd., Zhunan Town, Miaoli County 350,
Country :	Taiwan
Financials (as on) :	31.12.2013
Date of Incorporation :	10.08.2005
Com. Reg. No.:	27757133
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and sale of solar cell
No. of Employees	1,600

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but correct
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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Taiwan	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

TAIWAN ECONOMIC OVERVIEW

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. 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:	GINTECH ENERGY CORPORATION
Supplied Name:	GINTECH ENERGY CORPORATION
Trading Address:	No.21, Kebei 1st Rd., Zhunan Town, Miaoli County 350, Taiwan (R.O.C.)
Supplied Address:	Taipei Branch 9F, 295, Tiding Blvd, Sec. 2, Taipei City 11493, Taiwan
Telephone Number:	+886-37-586-198
Fax Number:	+886-37-586-199

Note: The exact address is as above. The supplied address belongs to subject’s Taipei Branch.

Company Identification Details

Registered Name:	GINTECH ENERGY CORPORATION
Registered Address:	No.21, Kebei 1st Rd., Zhunan Town, Miaoli County 350, Taiwan (R.O.C.)
Date of Foundation:	2005-8-10
Registration Number:	27757133
Registry:	Science Park Administration, MOST
Registered Capital:	NTD 5,000,000,000 (USD 167,000,000) (As of 2014.09, 1 NTD = 0.0334 USD)
Paid-up Capital:	NTD 4,077,094,770 (USD 136,174,965.32)
Legal Representatives:	Wenyan Pan
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sale of solar cell, etc.
Staff:	About 1,600 Employees
Listed at Stock Exchange:	Yes; Stock Code: 3514
Date of Last Annual Return:	2014-8-25

History

Subject was incorporated on 2005-8-10 with registered number 27757133 as Joint Stock Company in Taiwan.

Subject is listed on Taiwan Stock Exchange on 2007-11-2.

Corporate Structure

Factories

1
Name:	Zhuke B Factory
Address:	No. 66, 68, Keyan Rd., Dingpu Li, Zhunan Town, Miaoli County, Science Industrial Park, Xinzhu, Taiwan
Date of Registration:	2011-10-31
Factory Registration Number:	95B00751
Factory Manager:	Wenhui Pan
Status:	In Production
Date of Last Annual Return:	2011-10-31
Major Products:	264 Photoelectric material and components
2
Name:	Guanyin Factory
Address:	No. 19, Datong Yi Rd., Caoluo Village, Guanyin Xiang, Taoyuan County, Taiwan
Date of Registration:	2006-6-22
Factory Registration Number:	99706399
Factory Manager:	Wenyan Pan
Status:	In Production
Date of Last Annual Return:	2011-8-16
Major Products:	264 photoelectric material and components 281 electricity generation, transmission and power machinery 282 battery 284 lighting equipment 285 household appliances 289 other power equipment
3
Name:	Zhuke A Factory
Address:	No.21, Kebei 1st Rd., Zhunan Town, Miaoli County, Taiwan
Date of Registration:	2011-10-18
Factory Registration Number:	95A00751
Factory Manager:	Wenhui Pan
Status:	In Production
Date of Last Annual Return:	2011-10-18
Major Products:	264 photoelectric material and components 281 electricity generation, transmission and power machinery 289 other power equipment

Branch

Name:	Gintech Energy Corporation Taipei Branch
Address:	9F., No.295, Sec. 2, Tiding Blvd., Neihu Dist., Taipei City 11493, Taiwan
Date of Registration:	2007-9-5
Registration Number:	28112532
Manager Name:	Wenhui Pan
Status:	Active
Date of Last Annual Return:	2011-1-12

Shareholders

Major Shareholders

Name	Subscription Shares
Zhongwei Investment Co., Ltd. (Literal Translation)
15,184,379
Wenhui Pan	2,701,757
Heyang Assets Management Co., Ltd. (Literal Translation)	966,470
Zhongqian Zhang	25,291
Witty Corporation	3,032,278
Chuangding Investment Co., Ltd. (Literal Translation)	277,000

Shareholder Information:

1
Registered Name:	Zhongwei Investment Co., Ltd. (Literal Translation)
Registered Address:	7F, No. 285, Sec. 4, Zhongxiao East Rd., Da’an Dist., Taipei City, Taiwan
Date of Foundation:	2005-9-28
Registration Number:	27953705
Registry:	Taipei City Government
Registered Capital:	NTD 27,000,000 (USD 901,800) (As of 2014.09, 1 NTD = 0.0334 USD)
Paid-up Capital:	NTD 27,000,000 (USD 901,800)
Legal Representatives:	Wenyan Pan
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2009-11-13
2
Registered Name:	Heyang Assets Management Co., Ltd. (Literal Translation)
Registered Address:	7F, No. 15, Lane 8, Sec. 5, Xinyi Rd., Xinyi Dist., Taipei City, Taiwan
Date of Foundation:	2007-9-6
Registration Number:	28707745
Registry:	Taipei City Government
Registered Capital:	NTD 5,000,000 (USD 167,000) (As of 2014.09, 1 NTD = 0.0334 USD)
Paid-up Capital:	NTD 1,000,000 (USD 33,400)
Legal Representatives:	Zhifen Li
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2011-1-12
3
Registered Name:	Witty Corporation
Registered Address:	10F., No.136, Sec. 3, Ren-Ai Rd., Da-An District, Taipei 106, Taiwan
Date of Foundation:	1976-12-28
Registration Number:	30813166
Registry:	Taipei City Government
Registered Capital:	NTD 40,000,000 (USD 1,336,000) (As of 2014.09, 1 NTD = 0.0334 USD)
Paid-up Capital:	NTD 40,000,000 (USD 1,336,000)
Legal Representatives:	Dongyuan Liu
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2013-12-16
4
Registered Name:	Chuangding Investment Co., Ltd. (Literal Translation)
Registered Address:	10F, No. 89, Sec. 6, Zhongshan North Rd., Shilin Dist., Taipei City, Taiwan
Date of Foundation:	1999-2-5
Registration Number:	16835941
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 1,600,000,000 (USD 53,440,000) (As of 2014.09, 1 NTD = 0.0334 USD)
Paid-up Capital:	NTD 1,100,000,000 (USD 36,740,000)
Legal Representatives:	Zongxing Yang
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2014-7-8

Management Information

Core Management

Directors

1
Name		Wenyan Pan
Position		Chairman of the Board
2
Name	Wenhui Pan
Position		Director
3
Name	Junyan Yu
Position		Director
4
Name	Heyang Assets Management Co., Ltd. (Literal Translation)
Position		Director
5
Name	Zhongqian Zhang
Position		Director
6
Name	Shijun Xu
Position		Independent Director
7
Name	Guansheng Wang
Position		Independent Director
8
Name	Dongyuan Liu
Position		Supervisor
9
Name	Rongbao Kang
Position		Supervisor
10
Name	Bichuan Chen
Position		Supervisor
11
Name	Wenhui Pan
Position		Manager
Date of Appointment		2010-3-1

Personnel Structure

Total Employees

About 1,600 Employees

Operation Information

Offices & Factories

	Headquarters
Add	No.21, Kebei 1st Rd., Zhunan Town, Miaoli County 350, Taiwan

Production Information

Subject is engaged in manufacturing of solar cell, etc.

Subject has factories in Taiwan for production.

Subject obtained the certification of ISO 9001 and ISO/TS 16949.

Purchase Information

The registered activities of subject:

Business Code	Details
CC01010	Manufacturing of electricity generation, transmission and distribution machinery
CC01080	Electronic components manufacturing
F401010	The international trade
CC01090	Battery manufacturing
IG03010	Energy technology services
E601010	Electrical appliance industry (limited to operating area)
--	Research and development of the solar cell and related systems
--	Research and development of solar module
--	Trading of the above related products.

The components and raw materials for production are both purchased at home and abroad.

Sales Information

Subject is engaged in sale of solar cell, etc.

The major products solar cell and modules, etc.

Subject’s sales regions domestic market, Japan, Korea, Southeast Asia, USA, Europe, Australia, etc.

Subject’s major customers are manufacturers of machineries and autos, dealers, etc.

The detail information of the products are as follows:

Category	Products
Cells	Diamond Series, Douro Series, Phoenix Series, Gintech Onboard, etc.
Modules	Multi 60, Multi 72, Mono 60, etc.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Products	Components and raw materials, etc.
Payment Terms	T/T, Cash, etc.

Import

Products	Components and raw materials, etc.
Payment Terms	L/C, T/T, etc.

Sales

Domestic Markets

Product	Solar cell, etc.
Selling Terms	T/T, Cash, etc.

Export

Product	Solar cell, etc.
Selling Terms	L/C, T/T, etc.

Balance Sheet

Unit: NTD/000

	2013-12-31	2012-12-31
Total cash and cash equivalents	2,881,447	2,646,413
Total current financial assets at fair value through profit or loss	0	287
Current available-for-sale financial assets, net	146,854	171,067
Accounts receivable, net	2,992,293	2,003,652
Accounts receivable due from related parties, net	0	174
Other receivables, net	5,205	35,503
Other receivables due from related parties, net	178,454	20,103
Total current tax assets	995	599
Total inventories	1,259,476	1,333,999
Total prepayments	1,607,745	1,439,183
Total other current assets	744,578	289,058
Total current assets	9,817,047	7,940,038
Non-current financial assets at cost, net	31,800	31,800
Investments accounted for using equity method, net	362,974	493,703
Total property, plant and equipment	9,895,253	10,948,567
Total intangible assets	11,887	17,979
Deferred tax assets	661,346	712,480
Total other non-current assets, others	1,571,190	3,798,310
Total other non-current assets	1,571,190	3,798,310
Total non-current assets	12,534,450	16,002,839
Total assets	22,351,497 (USD 746,539,999.80)	23,942,877 (USD 799,692,091.80)
Total short-term borrowings	569,554	1,933,022
Total notes payable	0	125
Total accounts payable	1,826,225	1,100,490
Total accounts payable to related parties	175,117	0
Total other payables	551,739	557,355
Total advance receipts	11,617	13,550
Total long-term liabilities, current portion	1,038,000	849,000
Other current liabilities, others	7,028	6,497
Total other current liabilities	1,056,645	869,047
Total current liabilities	4,179,280	4,460,039
Total non-current financial liabilities at fair value through profit or loss	2,690	10,354
Total bonds payable	715,064	540,710
Total long-term borrowings	4,390,954	6,717,450
Total non-current provisions	1,825	1,825
Guarantee deposits received	2,197	47,970
Other non-current liabilities, others	0	167
Total other non-current liabilities	2,197	48,137
Total non-current liabilities	5,112,730	7,318,476
Total liabilities	9,292,010	11,778,515
Ordinary share	3,922,069	3,388,517
Advance receipts for share capital	107,110	0
Total capital stock	4,029,179	3,388,517
Total capital surplus	9,645,359	8,814,729
Legal reserve	0	677,064
Total unappropriated retained earnings (accumulated deficit)	-593,294	-762,553
Total retained earnings	-593,294	-85,489
Total other equity interest	-21,757	46,605
Total equity attributable to owners of parent	13,059,487	12,164,362
Total equity	13,059,487 (USD 436,186,865.80)	12,164,362 (USD 406,289,690.80)
Equivalent issue shares of advance receipts for ordinary share	10,710,947	0

(As of 2014.09, 1 NTD = 0.0334 USD)

Profit and Loss Account

Unit: NTD/000

	2013	2012
Total sales revenue	15,137,178 (USD 505,581,745.20)	14,061,624 (USD 469,658,241.60)
Sales returns	22,477	78,884
Sales discounts and allowances	17,071	16,513
Net sales revenue	15,097,630	13,966,227
Total operating revenue	15,097,630	13,966,227
Total operating costs	14,663,550	14,623,788
Gross profit (loss) from operations	434,080	-657,561
Unrealized profit (loss) from sales	0	4,339
Realized profit (loss) on from sales	2,462	0
Gross profit (loss) from operations	436,542	-661,900
Total selling expenses	241,736	477,045
Total administrative expenses	165,375	194,320
Total research and development expenses	300,174	316,778
Total operating expenses	707,285	988,143
Net other income (expenses)	0	-21
Net operating income (loss)	-270,743	-1,650,064
Other income, others	42,485	32,221
Total other income	42,485	32,221
Other gains and losses, net	34,942	27,260
Finance costs, net	158,491	155,936
Share of profit (loss) of associates and joint ventures accounted for using equity method, net	-184,330	-214,505
Total non-operating income and expenses	-265,394	-310,960
Profit (loss) from continuing operations before tax	-536,137	-1,961,024
Total tax expense (income)	55,047	-37,127
Profit (loss) from continuing operations	-591,184	-1,923,897
Profit (loss)	-591,184	-1,923,897
Unrealized gains (losses) on valuation of available-for-sale financial assets	-27,315	46,797
Total share of other comprehensive income of associates and joint ventures accounted for using equity method	5,639	-8,986
Other comprehensive income, net	-21,676	37,811
Total comprehensive income	-612,860	-1,886,086
Profit (loss), attributable to owners of parent	-591,184	-1,923,897
Comprehensive income, attributable to owners of parent	-612,860	-1,886,086
Basic earnings (loss) per share from continuing operations	-1.65	-5.68
Total basic earnings per share	-1.65	-5.68
Diluted earnings (loss) per share from continuing operations	-1.65	-5.68
Total diluted earnings per share	-1.65	-5.68

(As of 2014.09, 1 NTD = 0.0334 USD)

Cash Flows

Unit: NTD/000

	2013	2012
Profit (loss) from continuing operations before tax	-536,137	-1,961,024
Profit (loss) before tax	-536,137	-1,961,024
Depreciation expense	1,912,500	1,636,728
Amortization expense	12,853	12,577
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	-9,208	1,821
Interest expense	139,595	137,155
Interest income	-4,053	-6,327
Dividend income	-8,512	-8,025
Share-based payments	18,424	0
Share of loss (profit) of associates and joint ventures accounted for using equity method	184,330	214,505
Loss (gain) on disposal of property, plan and equipment	0	21
Unrealized profit (loss) from sales	0	4,339
Realized loss (profit) on from sales	-2,462	0
Unrealized foreign exchange loss (gain)	73,735	71,733
Other adjustments to reconcile profit (loss)	545,414	0
Total adjustments to reconcile profit (loss)	2,862,616	2,064,527
Decrease (increase) in notes receivable	0	900
Decrease (increase) in accounts receivable	-969,942	1,012,585
Decrease (increase) in accounts receivable due from related parties	174	19,253
Decrease (increase) in other receivable	30,652	-18,518
Decrease (increase) in other receivable due from related parties	-158,351	-19,747
Decrease (increase) in inventories	106,312	464,532
Decrease (increase) in prepayments	169,517	404,001
Decrease (increase) in other current assets	42,369	-45,263
Total changes in operating assets	-779,269	1,817,743
Increase (decrease) in notes payable	-125	0
Increase (decrease) in accounts payable	719,885	381,473
Increase (decrease) in accounts payable to related parties	173,479	-291,171
Increase (decrease) in other payable	46,770	40,098
Increase (decrease) in receipts in advance	-1,933	-190,961
Increase (decrease) in other current liabilities	530	-201
Increase (decrease) in other operating liabilities	-167	167
Total changes in operating liabilities	938,439	-60,595
Total changes in operating assets and liabilities	159,170	1,757,148
Total adjustments	3,021,786	3,821,675
Cash inflow (outflow) generated from operations	2,485,649	1,860,651
Interest received	3,685	5,661
Interest paid	-129,478	-152,637
Income taxes refund (paid)	-4,296	-11,031
Net cash flows from (used in) operating activities	2,355,560	1,702,644
Acquisition of available-for-sale financial assets	-3,102	-2,519
Acquisition of investments accounted for using equity method	-45,500	-274,480
Acquisition of property, plant and equipment	-325,993	-487,337
Proceeds from disposal of property, plant and equipment	0	19
Increase in refundable deposits	332,491	-8,194
Acquisition of intangible assets	-6,761	-5,600
Increase in prepayments for business facilities	-103,330	-795,475
Dividends received	8,512	8,025
Net cash flows from (used in) investing activities	-143,683	-1,565,561
Decrease in short-term loans	-1,362,818	-739,032
Proceeds from issuing bonds	497,200	613,005
Proceeds from long-term debt	2,220,277	3,168,030
Repayments of long-term debt	-4,359,805	-3,662,500
Decrease in guarantee deposits received	-45,773	-17,612
Proceeds from issuing shares	1,152,598	0
Net cash flows from (used in) financing activities	-1,898,321	-638,109
Effect of exchange rate changes on cash and cash equivalents	-78,522	-68,489
Net increase (decrease) in cash and cash equivalents	235,034	-569,515
Cash and cash equivalents at beginning of period	2,646,413	3,215,928
Cash and cash equivalents at end of period	2,881,447	2,646,413
Cash and cash equivalents reported in the statement of financial position	2,881,447	2,646,413

Bankers

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

Public Record

Mortgage

Case Type:	Chattel Mortgage
File No.:	106999
Debtor Name:	Gintech Energy Corporation
Document Number:	10130364120
Date of Registration:	2012-12-14
Date of Alteration:	--

Lawsuit

1
Trial Number:	2011, bu, 651
Date of Trial:	2011-10-12
Reason:	Payment of remuneration
Claimant:	Taiwan Shiruike Baoquan Co., Ltd.
Defendant:	Gintech Energy Corporation
2
Trial Number:	2011, bu, 148
Date of Trial:	2011-4-1
Reason:	Confirm the employment relationship
Claimant:	Yiru Chen
Defendant:	Gintech Energy Corporation

Special Note

Interview Details

Name	Mr. Liu
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.19
UK Pound	1	Rs.98.65
Euro	1	Rs.78.63

INFORMATION DETAILS

Analysis Done by :	RAS
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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.