MIRA INFORM REPORT

Report No. :	316016
Report Date :	09.04.2015

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) :	31.12.2014
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 Employee :	About 60

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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
Taiwan	A2	A1

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

Contact Points

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 RD., NEIHU DIST., TAIPEI CITY 11494, TAIWAN (R.O.C.) 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 800,000,000 (USD 25,600,000) (As of 2015.04, 1 NTD = 0.032 USD)
Paid-up Capital:	NTD 708,434,660 (USD 22,669,909)
Legal Representatives:	Zhuoming Xie
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sales of electronic components and etc.
Staff:	About 60 Employees (Taiwan) About 1,000 Employees (Group)
Listed at Stock Exchange:	Yes; Stock Symbol: 6409
Date of Last Annual Return:	2014-9-24

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.

Corporate Structure

Factory

Address:	4F., No.153, Xinhu 1st Rd., Neihu Dist., Taipei City, Taiwan (R.O.C.)
Date of Registration:	2012-3-9
Factory Registration Number:	63022230
Factory Manager:	Zhuoming Xie
Status:	In production
Date of Last Annual Return:	2012-3-9
Major Products:	289 other electrical equipment

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

Shareholders

Major Shareholders

Name	Subscription Shares
Zhuoming Xie	7,187,468
Kai Hong International Investment Co., Ltd (Liberal Translation)
2,723,312
Fsp Technology Inc.	6,416,746
Rps. S.P.A.	6,287,957
Fu Feng Sheng Investment Co., Ltd (Liberal Translation)	2,870,207

Shareholder Information:

1
Registered Name:	Kai Hong International Investment Co., Ltd (Liberal 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 928,000) (As of 2015.04, 1 NTD = 0.032 USD)
Legal Representatives:	Cuifang Chen
Legal Form:	Private Limited Liabilities Company
Date of Last Annual Return:	No
2
Registered Name:	Fsp Technology Inc.
Registered Address:	No.22, Jianguo E. Rd., Taoyuan Dist., Taoyuan City 330, 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 115,200,000) (As of 2015.04, 1 NTD = 0.032 USD)
Paid-up Capital:	NTD 2,344,657,920 (USD 75,029,053)
Legal Representatives:	Zongshun Wang
Legal Form:	Joint Stock Company
Listed at Stock Exchange:	Yes; Stock Code: 3015
Date of Last Annual Return:	2014-6-27
3
Registered Name:	Fu Feng Sheng Investment Co., Ltd (Liberal 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 3,200,000) (As of 2015.04, 1 NTD = 0.032 USD)
Paid-up Capital:	NTD 100,000,000 (USD 3,200,000)
Legal Representatives:	Yuzhe Lin
Legal Form:	Joint Stock Company
Date of Last Annual Return:	No

Management 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 and etc.

Subject has factories in Shenzhen City, the mainland of China for production.

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.

It is introduced that subject purchases its raw materials such as batteries, transformers, semiconductor parts, plastic materials, PCB and wire rod, etc for production are mostly in domestic market.

Sales Information

Subject is engaged in sale of electronic components, etc.

The major products uninterrupted power supply, PV inverter, power inverter, voltage stabilizer and etc.

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

Subject’s major customers are manufacturers of computers, medical equipment and etc.

It is introduced that subject can provide OEM and ODM services.

It is introduced that subject has many customers such as Powervar Inc., Intex Technologies India Ltd and Compu Greiff SAS, etc.

From our databases, 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%

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Products	Raw materials
Payment Terms	T/T

Import

Subject has little imports.

Sales

Domestic Markets

Product	Electronic components
Selling Terms	T/T, Cash

Export

Product	Electronic components
Selling Terms	L/C, T/T

Balance Sheet

Unit: NTD/000

Consolidated	2014-12-31	2013-12-31
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	2,796,380	1,829,906
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	0	334,812
Notes receivable, net
Notes receivable, net	15,901	6,342
Accounts receivable, net
Accounts receivable, net	1,096,219	822,403
Accounts receivable due from related parties, net
Accounts receivable due from related parties, net	150,215	93,466
Other receivables
Other receivables, net	50,076	63,621
Inventories
Total inventories	351,980	238,767
Prepayments
Total prepayments	61,051	47,476
Total current assets	4,521,822	3,436,793
Non-current assets
Property, plant and equipment
Total property, plant and equipment	893,157	143,869
Intangible assets
Other intangible assets, net
Other intangible assets, net	7,160	6,315
Total intangible assets	7,160	6,315
Deferred tax assets	16,041	6,310
Other non-current assets
Other non-current assets, others
Total other non-current assets, others	15,499	10,306
Total other non-current assets	15,499	10,306
Total non-current assets	931,857	166,800
Total assets	5,453,679	3,603,593
Liabilities
Current liabilities
Notes payable
Total notes payable	5,477	6,615
Accounts payable
Total accounts payable	1,505,300	1,244,627
Accounts payable to related parties
Total accounts payable to related parties	6,161	8,847
Other payables
Total other payables	348,382	265,540
Current tax liabilities	104,307	64,341
Other current liabilities
Other current liabilities, others	53,246	26,888
Total other current liabilities	53,246	26,888
Total current liabilities	2,022,873	1,616,858
Non-current liabilities
Deferred tax liabilities
Total deferred tax liabilities	25,451	8,575
Other non-current liabilities
Total other non-current liabilities	254	245
Total non-current liabilities	25,705	8,820
Total liabilities	2,048,578	1,625,678
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	708,435	616,400
Total capital stock	708,435	616,400
Capital surplus
Total capital surplus	1,387,138	600,258
Retained earnings
Legal reserve	165,412	104,358
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	1,112,728	704,652
Total retained earnings	1,278,140	809,010
Other equity interest
Total other equity interest	31,388	-47,753
Total equity attributable to owners of parent	3,405,101	1,977,915
Total equity	3,405,101	1,977,915
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	0	0

Profit and Loss Account

Unit: NTD/000

Consolidated	2014	2013
Operating revenue
Net sales revenue
Net sales revenue	6,723,027	5,491,112
Total operating revenue	6,723,027	5,491,112
Operating costs
Cost of sales
Total cost of sales	4,962,315	4,168,291
Total operating costs	4,962,315	4,168,291
Gross profit (loss) from operations	1,760,712	1,322,821
Gross profit (loss) from operations	1,760,712	1,322,821
Operating expenses
Selling expenses
Total selling expenses	166,020	166,401
Administrative expenses
Total administrative expenses	191,166	158,733
Research and development expenses
Total research and development expenses	268,365	235,007
Total operating expenses	625,551	560,141
Net operating income (loss)	1,135,161	762,680
Non-operating income and expenses
Other income
Other income, others	38,034	9,679
Total other income	38,034	9,679
Other gains and losses
Other gains and losses, net	63,359	-14,530
Finance costs
Finance costs, net	4,860	5,069
Total non-operating income and expenses	96,533	-9,920
Profit (loss) from continuing operations before tax	1,231,694	752,760
Tax expense (income)
Total tax expense (income)	236,298	142,222
Profit (loss) from continuing operations	995,396	610,538
Profit (loss)	995,396	610,538
Other comprehensive income
Exchange differences on translation	46,698	32,923
Other comprehensive income	-7,938	-5,597
Other comprehensive income, net	38,760	27,326
Total comprehensive income	1,034,156	637,864
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	995,396	610,538
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	1,034,156	637,864
Basic earnings per share
Basic earnings (loss) per share from continuing operations	14.33	9.72
Total basic earnings per share	14.33	9.72
Diluted earnings per share
Diluted earnings (loss) per share from continuing operations	14.26	9.65
Total diluted earnings per share	14.26	9.65

Cash Flows

Unit: NTD/000

Consolidated	2014	2013
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	1,231,694	752,760
Profit (loss) before tax	1,231,694	752,760
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	52,378	45,830
Amortization expense	3,853	4,381
Provision (reversal of provision) for bad debt expense	3,941	5,934
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	-1,283	-1,404
Interest expense	4,860	5,069
Interest income	-34,041	-9,679
Share-based payments	40,381	51,691
Loss (gain) on disposal of property, plan and equipment	-70	-46
Loss (gain) on disposal of investments	-496	0
Impairment loss on non-financial assets	1,343	1,818
Unrealized foreign exchange loss (gain)	-4,324	7,420
Other adjustments to reconcile profit (loss)	75	0
Total adjustments to reconcile profit (loss)	66,617	111,014
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in financial assets held for trading	336,095	-196,926
Decrease (increase) in notes receivable	-9,439	-1,630
Decrease (increase) in accounts receivable	-251,590	-181,821
Decrease (increase) in accounts receivable due from related parties	-56,749	19,381
Decrease (increase) in other receivable	18,967	33,092
Decrease (increase) in inventories	-101,272	-32,992
Decrease (increase) in prepayments	-11,384	23,725
Total changes in operating assets	-75,372	-337,171
Changes in operating liabilities
Increase (decrease) in notes payable	-1,138	2,788
Increase (decrease) in accounts payable	193,986	110,168
Increase (decrease) in accounts payable to related parties	-2,686	364
Increase (decrease) in other payable	80,482	82,272
Increase (decrease) in other current liabilities	25,911	-26,327
Total changes in operating liabilities	296,555	169,265
Total changes in operating assets and liabilities	221,183	-167,906
Total adjustments	287,800	-56,892
Cash inflow (outflow) generated from operations	1,519,494	695,868
Interest received	30,526	9,679
Interest paid	-4,860	-5,069
Income taxes refund (paid)	-197,870	-138,926
Net cash flows from (used in) operating activities	1,347,290	561,552
Cash flows from (used in) investing activities
Acquisition of available-for-sale financial assets	-14,755	0
Proceeds from disposal of available-for-sale financial assets	15,251	0
Acquisition of property, plant and equipment	-796,310	-49,380
Proceeds from disposal of property, plant and equipment	635	287
Increase in refundable deposits	-4,819	-2,343
Acquisition of intangible assets	-4,569	-3,439
Increase in prepayments for business facilities	-75	0
Net cash flows from (used in) investing activities	-804,642	-54,875
Cash flows from (used in) financing activities
Cash dividends paid	-492,531	-390,933
Proceeds from issuing shares	845,180	251,430
Net cash flows from (used in) financing activities	352,649	-139,503
Effect of exchange rate changes on cash and cash equivalents	71,177	43,849
Net increase (decrease) in cash and cash equivalents	966,474	411,023
Cash and cash equivalents at beginning of period	1,829,906	1,418,883
Cash and cash equivalents at end of period	2,796,380	1,829,906
Cash and cash equivalents reported in the statement of financial position	2,796,380	1,829,906

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

Department

Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.33
UK Pound	1	Rs.92.53
Euro	1	Rs.67.60

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	ANK

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.