MIRA INFORM REPORT

Report No. :	335704
Report Date :	12.08.2015

IDENTIFICATION DETAILS

Name :	SAVIOR LIFETEC CORPORATION
Registered Office :	No.29, Kejhong Rd., Chu-Nan Site, Hsinchu Science-Based Industrial Park Chu Nan Miao-Li County
Country :	Taiwan
Financials (as on) :	31.12.2014
Date of Incorporation :	30.01.2004
Com. Reg. No.:	80642673
Legal Form :	Joint Stock Company
Line of Business :	Subject is manufacturing and sale of carbapenem antibiotics.
No. of Employee :	456 (As of 2015-5-19)

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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
Taiwan	A1	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. 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. However, follow-on components of the ECFA, including a signed agreement on trade in services and negotiations on trade in goods and dispute resolution, have stalled. In early 2014, the government bowed to public demand and proposed a new law governing the oversight of cross-Strait agreements, before any additional deals with China are implemented; the legislature has yet to vote on such legislation, leaving the future of ECFA up in the air as President MA enters his final full year in office. MA has portrayed ECFA as Taiwan’s key to greater participation in East Asia’s free trade networks.

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 expected to account for nearly 20% of the island's total population by 2025.

The island runs a trade surplus, largely because of its surplus with China, and its foreign reserves are the world's fifth largest, behind those of China, Japan, Saudi Arabia, 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, the Taiwan Central Bank signed a memorandum of understanding (MOU) 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 has helped Taiwan develop into a local RMB hub.

Closer economic links with the mainland bring greater opportunities for Taiwan’s economy but also pose new challenges as the island becomes more economically dependent on China at a time when political differences remain unresolved. During 2014, the press paid increasing attention to domestic economic issues, while pushing aside the debates over trade liberalization that were a hallmark of MA’s tenure. The media focused on the divide between Taiwan’s “haves” and “have nots,” providing extensive coverage of public frustration with stagnant wages, skyrocketing housing prices, and the difficulty of finding decent entry-level jobs.

Source : CIA

Contact Points

Company Name:	Savior Lifetec Corporation
Supplied Name:	SAVIOR LIFETEC CORPORATION
Trading Address:	11, Da-Shuen 9th Rd. Hsinshih Dist., Tainan City 74145, Taiwan, R.O.C.
Supplied Address:	11,DA-SHUEN 9TH RD., HSINSHIH DIST. TAINAN CITY 74145, TAIWAN, R.O.C TAIWAN.
Telephone Number:	+886-6-505-1200
Fax Number:	+886-6-505-2600

Notes: The exact address is as above.

Company Identification Details

Registered Name:	SAVIOR LIFETEC CORPORATION
Registered Address:	No.29, Kejhong Rd., Chu-Nan Site, Hsinchu Science-Based Industrial Park Chu Nan Miao-Li County, Taiwan
Date of Foundation:	2004-1-30
Registration Number:	80642673
Registry:	Science Park Administration, MOST
Registered Capital:	NTD 2,500,000,000 (USD 80,000,000) (As of 2015.8, 1 NTD = 0.0320 USD)
Paid-up Capital:	NTD 1,865,270,000 (USD 59,688,640)
Legal Representatives:	Hanyou Financial Management Consulting Co., Ltd. (Literal Translation)
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sale of carbapenem antibiotics
Staff:	456 Employees (As of 2015-5-19)
Listed at Stock Exchange:	Yes, (Stock Code: 4167)
Date of Last Annual Return:	2015-6-1

History

Subject was incorporated on 2004-1-30 with registered number 80642673 as Joint Stock Company in Taiwan.

Subject listed on Taiwan OTC Stock Market on 2012-12-21.

Corporate Structure

Factories

1
Address:	No.29, Kejhong Rd., Chu-Nan Site, Hsinchu Science-Based Industrial Park Chu Nan Miao-Li County, Taiwan
Date of Registration:	2005-04-27
Factory Registration Number:	95A00662
Factory Manager:	Shixian Pan
Status:	In Production
Date of Last Annual Return:	2014-7-7
Major Products:	199--Other chemicals 200--Medicines and medical chemicals
2
Name:	Savior Lifetec Corporation Nanke Branch Nanke Factory
Address:	No.11, Dashung 9th Rd., Tainan Science Park, Sinshih Township, Tainan County 744, Taiwan
Date of Registration:	2006-04-11
Factory Registration Number:	94A00153
Factory Manager:	Mingfa Lin
Status:	In Production
Date of Last Annual Return:	2014-12-31
Major Products:	200-- Medicines and medical chemicals
3
Name:	Savior Lifetec Corporation Nanke Branch Injection Factory
Address:	4F, No. 8, 4F & 5F, No. 12, 4F, No. 16, Chuangye Rd., Sinshih Township, Tainan City, Taiwan
Date of Registration:	2012-04-02
Factory Registration Number:	13111417
Factory Manager:	Zhanping Xu
Status:	In Production
Date of Last Annual Return:	2012-11-19
Major Products:	200-- Medicines and medical chemicals
4
Name:	Savior Lifetec Corporation Nanke Branch Nanke the 2nd Factory
Address:	No. 1, Nanke 6th Rd., Sinshih Township, Tainan County, Taiwan
Date of Registration:	2014-4-21
Factory Registration Number:	94C00153
Factory Manager:	Mingfa Lin
Status:	In Production
Date of Last Annual Return:	2014-7-4
Major Products:	200-- Medicines and medical chemicals

Branch

Name	Savior Lifetec Corporation Tainan Branch
Registration Number	13111417
Date of Registration	2005-07-15
Registered Address	No.11, Dashung 9th Rd., Tainan Science Park, Sinshih Township, Tainan County 744, Taiwan
Manager Name	Manqin Gu
Date of Last Annual Return	2014-7-15

Office

Trading Address:	No.29, Kejhong Rd., Chu-Nan Site, Hsinchu Science-Based Industrial Park Chu Nan Miao-Li County, Taiwan
Telephone Number:	+886-37-580100
Fax Number:	+886-37-580200

Shareholders

Major Shareholders

Name	Subscription Shares
Hanyou Financial Management Consulting Co., Ltd. (Literal Translation)
1,417,641
CH & SB Holding Ltd	3,769,261
Qihang Venture Investment Co., Ltd. (Literal Translation)	5,137,000
Hua Eng Wire & Cable Co., Ltd.	4,088,412
Jiaju Investment Co., Ltd. (Literal Translation)	1,677,841
Zaisheng Liu	409,000
Riyan Zhang	224,755

Shareholder Information:

1
Registered Name:	Qihang Venture Investment Co., Ltd. (Literal Translation)
Registered Address:	28F, No. 7, Sec. 5, Xinyi Rd., Taipei City, Taiwan
Date of Foundation:	2005-03-25
Registration Number:	27252844
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Legal Representatives:	Yuanquan Hong
Legal Form:	Joint Stock Company
Listed at Stock Exchange:	No
Date of Last Annual Return:	2015-5-20
2
Registered Name:	Hua Eng Wire & Cable Co., Ltd.
Registered Address:	No.170, Chung Cheng 4th Road, Kaohsiung, Taiwan, R.O.C.
Date of Foundation:	1956-12-08
Registration Number:	79460007
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Legal Representatives:	Xianming Wu
Legal Form:	Joint Stock Company
Listed at Stock Exchange:	Yes; (Stock Code: 1608)
Date of Last Annual Return:	2014-7-1
3
Registered Name:	Jiaju Investment Co., Ltd. (Literal Translation)
Registered Address:	4F, No. 76, Sec. 2, Dunhua S. Rd., Da’an Dist., Taipei City, Taiwan
Date of Foundation:	1998-7-1
Registration Number:	16602464
Registry:	Taipei City Government
Legal Representatives:	Bangji Zhou
Legal Form:	Private Limited Liability Company
Listed at Stock Exchange:	No
Date of Last Annual Return:	2011-7-7
4
Registered Name:	Hanyou Financial Management Consulting Co., Ltd. (Literal Translation)
Registered Address:	4F, No. 76, Sec. 2, Dunhua S. Rd., Da’an Dist., Taipei City, Taiwan
Date of Foundation:	1995-6-14
Registration Number:	89471550
Registry:	Taipei City Government
Legal Representatives:	Bangji Zhou
Legal Form:	Joint Stock Company
Listed at Stock Exchange:	No
Date of Last Annual Return:	2013-9-12

Management Information

Core Management

Directors

1
Name		Hanyou Financial Management Consulting Co., Ltd. (Literal Translation)
Position		Chairman of the Board
2
Name	CH & SB Holding Ltd
Position		Director
3
Name	Zongxian Lv
Position		Director
4
Name	Xianming Wu
Position		Director
5
Name	Jiaju Investment Co., Ltd. (Literal Translation)
Position		Director
6
Name	Zaisheng Liu
Position		Director
7
Name	Riyan Zhang
Position		Independent Director
8
Name	Hengde Chen
Position		Independent Director
9
Name	Yinan Lin
Position		Independent Director
10
Name	Rongshun Ke
Position		Manager
Date of Appointment		2013-12-5

Personnel Structure

Total Employees

456 Employees (As of 2015-5-19)

Operation Information

Offices & Factories

	Headquarters
Add	11, Da-Shuen 9th Rd. Hsinshih Dist., Tainan City 74145, Taiwan, R.O.C.

Production Information

l Subject is engaged in manufacturing of carbapenem antibiotics, etc.

l Subject has factories in Tainan City and Miaoli County, Taiwan for production.

l It is introduced that subject owns two high quality R&D centers and manufacturing facilities, which cover 20,000 square meters in total.

Purchase Information

l The registered activities of subject:

Business Code	Details
C801010	Basic chemical industry
C801030	Manufacturing of precision chemical materials
C802041	Western medicine manufacturing
IG01010	Biological technology services
F108021	Western medicine wholesale
F208021	Western medicine retail
F401010	International trade
--	Research, develop, design, manufacture and sell the following products: 1. Antibiotic drug of carbapenem (1) Imipenem (2) Cilastatin (3) Meropenem (4) Ertapenem 2. The API of intermediates 3. Biopharmaceutical technology services 4. Related import and export of above products

l The raw materials for production are purchased in Taiwan and Mainland China.

Sales Information

l Subject is engaged in sale of carbapenem antibiotics, etc.

l The major products sold by subject include cilastatin sodium (sterile bulk), imipenem (sterile), imipenem and cilastatin sodium (sterile bulk), IMITIC, powder for IV injection, meropenem (sterile bulk), meropenem and sodium carbonate for injection (sterile bulk) and so on.

l Subject’s sales regions include domestic market, Japan, Korea, Singapore, Southeast Asia, India, US, North America, Europe, etc.

l It is introduced that subject recently has more orders, and its general delivery lead time of subject is about 90 days.

l The major products of the subject are manufacturers of west medicines, etc.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

1. Domestic Purchase

Products	Raw materials
Payment Terms	T/T, Cash, etc.

2. Import

Subject has little import.

Sales

1. Domestic Markets

Product	Carbapenem antibiotics, etc.
Selling Terms	T/T, Cash, etc.

2. Export

Product	Carbapenem antibiotics, etc.
Selling Terms	L/C, T/T, etc.

Balance Sheet

Unit: NTD/000

	2014-12-31	2013-12-31
Current Assets
Cash and cash equivalents	218,025	69,721
Notes receivable - net	1,706	3,864
Accounts receivable - net	234,526	244,112
Other accounts receivable - net	5,266	5,850
Inventories	574,872	517,283
Advance expenses	32,585	23,175
Other current assets	21,846	60,781
Current assets	1,088,826	924,786
Non-current assets
Property, plant and equipment	2,029,042	1,848,727
Intangible assets	1,884	3,961
Other non-current assets	12,692	43,658
Total non-current assets	2,043,618	1,896,346
Total assets	3,132,444	2,821,132
Current liabilities
Short-term borrowings	425,989	299,040
Notes payable	19,108	43,821
Accounts payable	217,656	96,906
Other accounts payable	214,673	245,170
Other current liabilities	82,732	546,420
Total current liabilities	960,158	1,231,357
Non-current liabilities
Long-term borrowings	878,887	194,801
Other non-current liabilities	0	752
Total non-current liabilities	878,887	195,553
Total liabilities	1,839,045	1,426,910
Capital
Common stock	1,723,740	1,613,090
Advance receipts for capital stock	0	1,559
Total capital stock	1,723,740	1,614,649
Capital surplus
Capital surplus- share premium	141,804	220,406
Capital surplus-employee share options	5,572	9,335
Capital surplus- employee stock right	23,555	0
Capital surplus-other	1,560	0
Total capital surplus	172,491	229,741
Retained earnings
Unappropriated retained earnings (accumulated deficit	-584,812	-450,168
Retained Earnings	-584,812	-450,168
Other equity
Other equity-other	-18,020	0
Other equity-total	-18,020	0
Total equity	1,293,399	1,394,222
Equivalent issue shares of advance receipts for ordinary share (Unit: Share)	0	57,732

Profit and Loss Account

Unit: NTD/000

	2014	2013
Operating revenue	1,018,801	1,000,632
Operating costs	1,000,225	928,476
Gross profit (loss) from operations	18,576	72,156
Gross profit (loss) from operations net	18,576	72,156
Operating expenses
Selling expenses	36,510	43,539
Administrative expenses	63,578	43,000
Research and development expenses	256,886	208,319
Total operating expenses	356,974	294,858
Other income net
Other income (loss) net	5,615	0
Operating income (loss)	-332,783	-222,702
Non-operating income and expenses
Other income	6,049	832
Other income (loss) net	-10,616	-681
Financial cost net	18,440	6,152
Non-operating income and expenses net	-23,007	-6,001
Income (loss) net before tax	-355,790	-228,703
Net profit (loss) from continuing operations	-355,790	-228,703
Profit (loss) net	-355,790	-228,703
Other comprehensive income (loss) net
Determine the welfare program actuarial profit (loss)	741	-17
Other comprehensive income net	741	-17
Comprehensive income	-355,049	-228,720
Basic earnings per share
Unit profit (loss) net from continue operations	-2.12	-1.48
Basic earnings per share	-2.12	-1.48

Cash Flows

Unit: NTD/000

	2014	2013
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	-355,790	-228,703
Profit (loss) before tax	-355,790	-228,703
Depreciation expense	163,157	123,157
Amortization expense	2,590	3,003
Provision (reversal of provision) for bad debt expense	-5,615	0
Net profit (loss) from financial assets and liabilities valued by fair	-26	0
Interest expenses	18,440	6,152
Interest income	-553	-322
Share base payment cost	10,295	2,926
Loss (gain) on disposal of property, plant and equipment	99	-35
Impairment loss on non-financial assets	0	591
Total income or loss non-effect cash flow	188,387	135,472
Decrease (increase) in financial assets for sale	26	0
Decrease (increase) in notes receivable	2,158	-3,864
Decrease (increase) in accounts receivable	15,201	-36,480
Decrease (increase) in other accounts receivable	584	-3,109
Decrease (increase) in inventories	-57,589	14,251
Decrease (increase) in prepayments	-9,410	-13,649
Decrease (increase) in other current assets	11,726	-8,922
Decrease (increase) in other operating assets	-7,887	842
Total net changes in operating assets	-45,191	-50,931
Increase (decrease) in notes payable	-2,271	-2,358
Increase (decrease) in accounts payable	120,750	-32,916
Increase (decrease) in other accounts payable	14,286	9,857
Increase (decrease) in other current liabilities	5,239	-9,909
Increase (decrease) in accrued pension liabilities	-11	-189
Total changes in operating liabilities	137,993	-35,515
Total net changes in operating assets and liabilities	92,802	-86,446
Total adjustments	281,189	49,026
Cash inflow (outflow) generated from operations	-74,601	-179,677
Interest received	553	322
Interest paid	-18,361	-6,152
Income taxes refund (paid)	0	0
Net cash flows from (used in) operating activities	-92,409	-185,507
Cash flows from (used in) investing activities
Acquisition of property, plant and equipment	-394,327	-548,883
Proceeds from disposal of property, plant and equipment	116	70
Increase in refundable deposits	21,366	-4,418
Acquisition of intangible assets	-499	-2,967
Increase in other financial assets	27,209	-18,172
Net cash flows from (used in) investing activities	-346,135	-574,370
Cash flows from (used in) financing activities
Increase in short-term borrowing	126,949	178,341
Proceeds from long-term debt	1,008,678	39,284
Repayments of long-term debt	-738,814	-41,733
Increase in lease account payable	50,000	66,000
Decrease in lease account payable	-104,706	-11,294
Increase in cash	202,441	325,559
Exercise of employee share options	33,300	24,360
Other financing activities	9,000	0
Cash flows from (used in) financing activities	586,848	580,517
Increase (decrease) in cash and cash equivalents	148,304	-179,360
Cash and cash equivalents at beginning of period	69,721	249,081
Cash and cash equivalents at end of period	218,025	69,721
Cash and cash equivalents reported in the statement of financial position	218,025	69,721

Bankers

Name	Chang Hwa Bank

Public Record

Mortgage

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

Lawsuit

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

Special Note

Interview Details

Name	Ms. Zhang
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.17
UK Pound	1	Rs.99.84
Euro	1	Rs.70.36

INFORMATION DETAILS

Analysis Done by :	KIN
Report Prepared by :	ASH

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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