MIRA INFORM REPORT

 

 

Report No. :

336507

Report Date :

17.08.2015

 

IDENTIFICATION DETAILS

 

Name :

MICRO-STAR INTERNATIONAL CO., LTD.

 

 

Registered Office :

No.69, Li-De St., Zhonghe Dist., New Taipei City 235

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

04.08.1986

 

 

Com. Reg. No.:

22178368

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Subject is engaged in manufacturing and sale of motherboards and computer hardware.

 

 

No. of Employee :

·         About 1,600 (Taiwan)

  • About 15,000 (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, 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:

Micro-Star International Co., Ltd.

Supplied Name:

MICRO STAR INTERNATIONAL CO LTD

Trading Address:

No.69, Li-De St., Zhonghe Dist., New Taipei City 235, Taiwan

Supplied Address:

NO.69,LIDE ST.,ZHONGHE DIST.,NEW TAIPEI CITY 235,TAIWAN

Telephone Number:

+886-2-3234-5599

Fax Number:

+886-2-3234-5488

Note: The exact name is as above. The supplied number +886-2-3234-5488 belong to subject’s fax number.

 

 

Company Identification Details

 

Registered Name:

MICRO-STAR INTERNATIONAL CO., LTD.

Registered Address:

No.69, Li-De St., Zhonghe Dist., New Taipei City 235, Taiwan (R.O.C.)

Date of Foundation:

1986-8-4

Registration Number:

22178368

Registry:

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

Registered Capital:

NTD 15,000,000,000 (USD 481,500,000)

(As of 2015.8, 1 NTD = 0.0321 USD)

Paid-up Capital:

NTD 8,448,561,990 (USD 271,198,840)

Legal Representatives:

Xiang Xu

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sale of motherboards and computer hardware

Staff:

About 1,600 (Taiwan)

About 15,000 (Group)

Listed at Stock Exchange:

Yes, Stock Code 2377

Date of Last Annual Return:

2015-6-29

 

 

History

 

Subject was incorporated on 1986-8-4 with registered number 22178368 as Joint Stock Company in Taiwan.

 

Subject listed on Taiwan Stock Exchange on 1998-10-31.

 

 

Corporate Structure

 

Factories

1

Name:

Zhonghe Plant

Address:

No.69, Li-De St., Zhonghe Dist., New Taipei City 235, Taiwan (R.O.C.)

Date of Foundation:

1996-3-27

Date of Registration:

1997-8-28

Factory Registration Number:

99607752

Factory Manager:

Xiang Xu

Status:

In production

Date of Last Annual Return:

2002-8-9

Major Products:

271 Computer and its peripheral equipment
272 Communications equipment
269 Other electronic components

2

Name:

Zhonghe 3rd Plant

Address:

No. 488, Ban S. RD., Zhonghe Dist., New Taipei City 235, Taiwan (R.O.C.)

Date of Foundation:

1998-10-15

Date of Registration:

2000-8-30

Factory Registration Number:

99606668

Factory Manager:

Xiang Xu

Status:

In production

Date of Last Annual Return:

2003-11-24

Major Products:

271 Computer and its peripheral equipment
272 Communications equipment
275 Measurement, navigation and control equipment and clock
269 Other electronic components
273 Audio and video electronic products
274 The data storage media
264 Photoelectric material and components
276 Radiation and electronic medical equipment

 

Related Companies

1

Name

MSI Computer Corp. (L.A. Office)

Address

901 Canada Court, City of Industry, CA 91748

Tel

+1-626-913-0828

2

Name

MSI Technology GmbH

Address

Hanauerland strasse 318, 60314 Frankfurt am Main, Germany

Tel

+49-69-40893-0

Fax

+49-69-40893-202

3

Name

MSI Czech & Slovak

Address

LCS Business Centre, Videnska 546/55, 639 00 Brno, Czech Republic

Tel

+420-543-524-300

4

Name

MSI Computer SARL

Address

50 Boulevard Antoine Giroust, 77600 Bussy St. Georges, France

Tel

+33-1-6476-4949

Fax

+33-1-6476-4948

5

Name

MSI Computer (Australia) Pty. Ltd.

Address

Unit 16, 22 Princes Rd East Auburn, NSW 2144, Australia

Tel

+61-2-9748-0070

Fax

+61-2-9748-0799

6

Name

Micro-Star International Co., Ltd.

Address

Room 2501-2508, Block A, Xi’nian Centre, No. 6021, Shennan Rd., Futian Dist., Shenzhen City, China

Tel

+86-755-3395-9911

Fax

+86-755-3395-9912

 

 

Shareholders

 

Major Shareholders

 

Name

Subscription Shares

Xiang Xu

51,983,151       

Jinqing Huang

23,637,377

Wentong Lin

29,672,499

Xianneng You

17,892,824

Qilong Lu

19,374,835

Shengchang Jiang

1,117,074

Rongfeng Cai

297,647

Junxian Xu

821,415

Fenlan Xu

13,408,517

Gaoshan Xu

418,686

 

 

Management Information

 

Core Management

 

Directors

1

Name

Xiang Xu

Position

Board Chairman & Manager

Date of Appointment of Manager

1994-4-25

2

Name

Jinqing Huang

Position

Director

3

Name

Wentong Lin

Position

Director

4

Name

Xianneng You

Position

Director

5

Name

Qilong Lu

Position

Director

6

Name

Shengchang Jiang

Position

Director

7

Name

Rongfeng Cai

Position

Director

8

Name

Songzhou Wang

Position

Independence Director

9

Name

Zhengyi Liu

Position

Independence Director

10

Name

Junxian Xu

Position

Supervisor

11

Name

Fenlan Xu

Position

Supervisor

12

Name

Gaoshan Xu

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 1,600 Employees (Taiwan)

About 15,000 Employees (Group)

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

No.69, Li-De St., Zhonghe Dist., New Taipei City 235, Taiwan

 

Production Information

 

Subject is engaged in manufacturing of motherboards and computer hardware, etc.   

Subject has factories in Taiwan for production.

Subject obtained the certifications of ISO-9001, ISO 14001 and OHSAS 18001.

 

Purchase Information

 

The registered activities of subject:

Business Code

Details

1

Design, manufacturing and trading of all kinds of computer hardware software and finished products, components

2

Manufacturing and trading of electronic components

3

Trading of the above related products

4

As an agent assists in developing quoting, bidding and distributing about home and abroad companies' products.

CC01030

Manufacturing of appliances

CC01060

Manufacturing of cable machinery equipment

CC01070 

Manufacturing of mechanical equipment with wireless communications

CE01030

Manufacturing of optical instrument

CH01040 

Manufacturing of toys

F109040

Wholesale of toys and entertainment Products 

F113020 

Wholesale of appliances

F113050 

Wholesale of computer and transactional equipment

F113070 

Wholesale of telecommunications equipment

F209030

Retail of toys and entertainment Products 

F213030 

Retail of computer equipment and transactional

F213060 

Retail of telecommunications equipment

F213010 

Retail of electric equipment

CC01101 

Manufacturing of the controlled telecommunications radio-frequency devices

F401021

Importing of radio-frequency devices under telecommunications regulation.

CF01011

Manufacturing of medical devices

F108031 

Wholesale of medical devices.

F208031

Retail of medical devices.

CE01010 

Manufacturing of general instrument

ZZ99999

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

 

The components and raw material for production are mostly purchased at home and abroad.

 

Sales Information

 

Subject is engaged in sale of motherboards and computer hardware, etc.   

It is introduced that subject also provides OEM and ODM services.

It is introduced that subject has own brand named “Micro-Star”

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

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

 

Major products

Types

Products

Motherboards

Motherboards for Intel and AMD platforms

Multimedia graphic cards

NVIDIA and AMD series products

Servers

server motherboards, blade servers and rackmount servers, etc.

Barebones

all-in-one personal computers (PCs), mini PCs, liquid crystal display (LCD) PCs

Industrial computers

industrial computer motherboards and industrial computer systems

Consumer electronics

automobile electronic products, communication products, as well as notebook computers and smart robots, etc.

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase

Products

Raw material, etc.

Payment Terms

T/T, Cash, etc.

 

Import

Products

Raw material, etc.

Payment Terms

L/C, T/T, etc.

 

Sales

 

Domestic Markets

Product

Motherboards and computer hardware, etc.  

Selling Terms

T/T, Cash, etc.

 

Export

Product

Motherboards and computer hardware, etc.  

Selling Terms

L/C, T/T, etc.

 

 

Balance Sheet

 

Unit: NTD/000

Consolidated

2014-12-31

2013-12-31

Cash and cash equivalents

10,002,083

10,328,590

Financial assets at fair value through profit or loss - current

36,586

0

Notes receivable, net

8,372

1

Accounts receivable, net

12,562,726

12,086,606

Other receivables

282,901

260,736

Current income tax assets

21,207

3,836

Inventories, net

15,553,209

11,453,060

Prepayments

1,282,857

1,326,234

Current Assets

39,749,941

35,459,063

Non-current assets

 

 

Financial assets carried at cost - noncurrent – net

0

10,000

Investments accounted for under equity method

479

433

Property, plant and equipment

5,848,330

5,583,526

Investment property - net

405,364

211,706

Deferred income tax assets

250,542

187,368

Other non-current assets

170,059

188,558

Non-current assets

6,674,774

6,181,591

Total assets

46,424,715

41,640,654

Current liabilities

 

 

Short-term borrowings

2,139,056

1,200,595

Financial liabilities at fair value through profit or loss - current

0

3,831

Notes payable

8

3,505

Accounts payable

15,272,310

13,803,209

Other payables

2,888,150

2,343,323

Current income tax liabilities

386,113

287,760

Provisions for liabilities - current

224,816

221,810

Other current liabilities

639,600

598,087

Current Liabilities

21,550,053

18,462,120

Non-current liabilities

 

 

Long-term borrowings

16,413

18,748

Deferred income tax liabilities

5,634

4,471

Other non-current liabilities

320,079

217,729

Non-current liabilities

342,126

240,948

Total Liabilities

21,892,179

18,703,068

Equity attributable to owners of parent

 

 

Share capital

 

 

Share capital - common stock

8,448,562

8,448,562

Total capital stock

8,448,562

8,448,562

Capital surplus

 

 

Capital surplus

2,920,142

2,920,142

Retained earnings

 

 

Legal reserve

2,723,897

2,526,611

Special reserve

389,482

389,482

Unappropriated retained earnings

9,579,139

8,462,643

Total retained earnings

12,692,518

11,378,736

Other equity interest

 

 

Total other equity interest

471,314

190,146

Equity attributable to owners of the parent

24,532,536

22,937,586

Total equity

24,532,536

22,937,586

 

 

Profit and Loss Account

 

Unit: NTD/000

Consolidated

2014

2013

Sales revenue

84,901,773

71,879,047

Operating costs

73,387,333

62,620,507

Net operating margin

11,514,440

9,258,540

Selling expenses

 

 

General & administrative expenses

4,412,360

3,728,810

Research and development expenses

773,023

661,381

Total operating expenses

2,735,708

2,491,761

Selling expenses

7,921,091

6,881,952

Operating profit

3,593,349

2,376,588

Non-operating income and expenses

 

 

Other income

500,265

425,724

Other gains and losses

-469,334

-56,007

Finance costs

47,156

14,344

Share of profit/(loss) of associates and joint ventures accounted for under equity method

46

-1,658

Total non-operating income and expenses

-16,179

353,715

Profit before income tax

3,577,170

2,730,303

Income tax expense

563,309

753,611

Profit for the year from continuing operations

3,013,861

1,976,692

Profit for the year

3,013,861

1,976,692

Other comprehensive income

 

 

Cumulative translation differences of foreign operations

281,168

372,234

Actuarial loss on defined benefit plan

-12,490

-2,615

Income tax relating to the components of other comprehensive income

-2,123

-445

Total other comprehensive income for the year

270,801

370,064

Total comprehensive income for the year

3,284,662

2,346,756

Profit attributable to:

 

 

Owners of the parent

3,013,861

1,972,857

Non-controlling interests

0

3,835

Comprehensive income attributable to:

 

 

Owners of the parent

3,284,662

2,342,921

Non-controlling interests

0

3,835

Total basic earnings per share

3.57

2.34

Total diluted earnings per share

3.53

2.31

 

 

Cash Flows

 

Unit: NTD/000

Consolidated

2014

2013

Cash Flows From Operating Activities

 

 

Consolidated profit before tax for the year

3,577,170

2,730,303

Profit (loss) before tax

3,577,170

2,730,303

Depreciation (including investment properties)

532,397

568,189

Amortization (including long-term prepaid rents)

9,742

9,581

Reversal of provision for bad debts

-68,958

-7,762

Net gains on financial assets and liabilities at fair value through profit or loss

-40,417

-11,254

Interest expense

47,156

14,344

Interest income

-137,549

-63,025

Share of (profit) losses of associates and joint ventures accounted for under equity method

-46

1,658

(Gains) losses from disposal of property, plant and equipment

-2,516

3,949

Impairment loss of financial instruments

10,000

0

Losses (gains) from unrealized foreign currency exchange

71,248

-22,093

Income and expenses having no effect on cash flows

421,057

493,587

Financial assets at fair value through profit or loss

0

38,836

Notes receivable, net

-8,371

4,340

Accounts receivable

-407,162

-1,880,937

Other receivables

-22,236

183,812

Inventories, net

-4,100,149

-1,389,445

Prepayments

43,377

100,144

(Increase) Decrease in other operating assets

9,624

-12,636

Total changes in operating assets

-4,484,917

-2,955,886

Net changes in liabilities relating to operating activities

-3,497

3,281

Notes payable

1,469,101

2,590,571

Accounts payable

544,320

350,055

Provisions for liabilities - current

3,006

59,059

Other liabilities - current

42,455

253,222

Pension obligation

8,460

-4,394

Other liabilities - non-current

-10,334

1,982

Total changes in operating liabilities

2,053,511

3,253,776

Total changes in operating assets and liabilities

-2,431,406

297,890

Total adjustments

-2,010,349

791,477

Cash generated from operations

1,566,821

3,521,780

Interest received

137,636

64,374

Payment of interest

-46,649

-13,134

Payment for income tax

-544,338

-92,211

Net cash provided by operating activities

1,113,470

3,480,809

Cash Flows From Investing Activities

 

 

Acquisition of property, plant and equipment

-913,871

-211,364

Proceeds from disposal of property, plant and equipment

13,213

10,000

Increase in guarantee deposit received

-867

-3,893

Increase in other non-current assets

0

-1,013

Net cash used in investing activities

-901,525

-206,270

Cash flows from financing activities

 

 

Increase in short-term borrowings

938,461

122,455

Bonds Redeemed

0

-707,000

Payments of long-term borrowings

-3,277

-2,504

Increase in guarantee deposit received

91,734

30,431

Cash dividends paid

-1,689,712

-253,456

Reacquisition of non-controlling interest

0

-4,800

Cash distribution from capital reserve

0

-675,885

Net cash used in financing activities

-662,794

-1,490,759

Effect of exchange rate

124,342

203,657

(Decrease) increase in cash and cash equivalents

-326,507

1,987,437

Cash and cash equivalents at beginning of year

10,328,590

8,341,153

Cash and cash equivalents at end of year

10,002,083

10,328,590

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

 

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

Mr. Li

Department

Sales Department

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.12

UK Pound

1

Rs.101.62

Euro

1

Rs.72.56

 

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%)

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.