MIRA INFORM REPORT

 

 

Report No. :

355476

Report Date :

23.12.2015

 

IDENTIFICATION DETAILS

 

Name :

KAIMEI ELECTRONIC CORP.

 

 

Registered Office :

13Fl-2, No.81, Sec.1, Hsin Tai 5 Rd., Xizhi Dist., New Taipei City 221, Taiwan (R.O.C.)

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

28.11.1973

 

 

Com. Reg. No.:

04413051

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and Sales of Machines.

 

 

No. of Employees :

About 1,424

 

 

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:

KAIMEI ELECTRONIC CORP.

Supplied Name:

KAIMEI ELECTRONIC CORP

Trading Address:

13Fl-2, No.81, Sec.1, Hsin Tai 5 Rd., Xizhi Dist., New Taipei City 221, Taiwan (R.O.C.)

Supplied Address:

13TH FL, NO 81, SEC 1, XINTAI 5 TH RD, XIZHI DIST NEW TAIPEI CITY 22101

Telephone Number:

+886-2-2698-1010

Fax Number:

+886-2-2698-0386

 

Notes: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

Kaimei Electronic Corp.

Registered Address:

13Fl-2, No.81, Sec.1, Hsin Tai 5 Rd., Xizhi Dist., New Taipei City 221, Taiwan (R.O.C.)

Date of Foundation:

1973-11-28

Registration Number:

04413051

Registry:

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

Registered Capital:

NTD 2,000,000,000 (USD 62,000,000)

(As of 2015.12, 1 NTD = 0.031 USD)

Paid-up Capital:

NTD 1,363,894,690 (USD 42,280,735.39)

Legal Representatives:

Wendeng He

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sales of machines.

Staff:

About 1,424 Employees (Group)

Listed at Stock Exchange:

No 

Date of Last Annual Return:

2015-09-24

 

 

History

 

Subject was incorporated on 1973-11-28 with registered number 04413051 as Joint Stock Company in Taiwan.

 

 

Corporate Structure

 

Factories

1

Name:

Xizhi Factory

Address:

13Fl-2, No.81, Sec.1, Hsin Tai 5 Rd., Xizhi Dist., New Taipei City 221, Taiwan (R.O.C.)

Date of Foundation:

1997-04-19

Date of Registration:

1997-05-15

Factory Registration Number:

99606583

Factory Manager:

Wendeng He

Status:

In Production

Date of Last Annual Return:

2013-12-26

Major Products:

271 Computer and its peripheral equipment

272 Communications equipment

269 Other electric components

2

Address:

No.51, Fengtian Rd., Jiaxing Village, Dapi Township, Yunlin County, Taiwan

Date of Foundation:

1974-03-10

Date of Registration:

1977-09-21

Factory Registration Number:

99653089

Factory Manager:

Wendeng He

Status:

In Production

Date of Last Annual Return:

2014-03-10

Major Products:

262 Passive component manufacturing

272 Communications equipment

275 Measure, navigation, control equipment and clock

284 Lighting equipment

3

Name:

Malaysia Factory

Address:

3, Lebuh 2, Bandar Sultan, Suleiman, Taiwanese Industrial Park, 42000 Port Klang, Selangor Darul Ehsan, Malaysia

Tel:

+60-3-31762700

4

Name:

China Shen-Zhen Factory 

Address:

10th Industry Area, 2nd Donghuan, Longhua, Shenzhen city, PRC

Tel:

+86-755-28135359

5

Name:

China Su-Zhou Factory 

Address:

No.68, Wen Du Road, Wang Ting Town, Wuxian, Municipality, Jiangsu Province, the PRC

Tel:

+86-512-6538-9874

 

Related Company

1

Name:

Jamicon Electronic Tech.(Shanghai) Co., LTD

Address:

No. 1758, Lian You Rd, Minhang District, Shanghai, China

Tel:

+86-21-6465-4931/4934

Fax:

+86-21-6465-1783

2

Name:

China Jamicon Electronic Tech. 

Address:

No.155, Ln. 1510, Ji Di Rd., Minhang District; , Shang Hai, China

Tel:

+86-21-5458-0669

 

Branch

Name:

Hong Kong Branch

Address:

Block A, 3/F., King Win Factory Building, Jingye Street, Guantang, Kowloon, Hong Kong

Tel:

+852-2763-6820

 

 

Shareholders

 

Major Shareholders

 

Name

Subscription Shares     

Wendeng He

7,506,197

Chengxi Zhang

10,354,699

Jieren Zheng

75,667

Zuotian Lin

4,626,064

Minzhe Qiu

2,615,302

Honglin Weng

2,320,000

Zhenchang Huang

6,825,000

Shumei Zhang

2,365,304

Youlin Investment Co., Ltd.

(Literal Translation)

2,100,642

 

 

Management Information

 

Core Management

 

Directors

1

Name

Wendeng He

Position

Chairman of the Board

2

Name

Chengxi Zhang

Position

Director

3

Name

Jieren Zheng

Position

Director & Manager

Date of Appointment for Manager

2013-04-12

4

Name

Zuotian Lin

Position

Director

5

Name

Minzhe Qiu

Position

Director

6

Name

Honglin Weng

Position

Director

7

Name

Zhenchang Huang

Position

Director

8

Name

Shunquan Zhan

Position

Independent Director

9

Name

Huifeng Xu

Position

Independent Director

10

Name

Shumei Zhang

Position

Supervisor

11

Name

Youlin Investment Co., Ltd.

(Literal Translation)

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 1,424 Employees (Group)

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

13Fl-2, No.81, Sec.1, Hsin Tai 5 Rd., Xizhi Dist., New Taipei City 221, Taiwan (R.O.C.)

 

Production Information

 

Subject is engaged in manufacturing of capacitors, etc.

Subject has factories in Taiwan, Mainland China and Malaysia for production.

Subject obtained the certification of ISO 9001, ISO 9002 and ISO 14001.

 

Purchase Information

 

The registered activities of subject:

Business Code

Details

CB01010 

Machinery equipment manufacturing

CB01990

Other machinery manufacturing

CC01010

Electricity generation, transmission and distribution machinery manufacturing

CC01030

Appliances and audio-visual electronic products manufacturing

CC01040

Lighting equipment manufacturing

CC01070 

Wireless communications machinery and instrument

CC01080 

Electric component manufacturing

CC01990

Other electrical and electronic machinery equipment

CC01110

Computer and its peripheral equipment manufacturing

F113070

Telecommunications equipment wholesaling

F119010

Electrical materials wholesaling

F213060

Telecommunications equipment wholesaling

F219010

Electrical materials retailing

F401010

International trade

ZZ99999

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

 

 

The components and raw material for production are purchased from both home and abroad.

 

Sales Information

 

Subject is engaged in sales of capacitors.

The products of subject are mainly applied for vehicle-mounted industry and auto industry.

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

Subject’s sales regions include domestic market, Southeast Asia, America and Europe.

It is introduced that there are sales branches in Japan, USA and Europe.

Subject’s major customers are manufacturers of electronic products.

 

Major products

 

Products

Lighting

Electronic ballast, LED driver, LED other products

Capacitor

Electrolytic, electric double layer

Fan

DC fan, AC fan, accessory

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase

Products

Raw materials and components

Payment Terms

T/T, Cash

 

Import

Products

Raw materials and components

Payment Terms

L/C, T/T

 

Sales

 

Domestic Markets

Product

Capacitors

Selling Terms

T/T, Cash

 

Export

Product

Capacitors

Selling Terms

L/C, T/T

 

 

Balance Sheet

 

Unit: NTD/000

Consolidated

2014-12-31

2013-12-31

Current assets

 

 

Cash and cash equivalents

795,539

751,528

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

4,430

4,015

Notes receivable, net

20,321

21,173

Accounts receivable, net

402,509

446,115

Accounts receivable-related party, net

0

443

Other accounts receivable, net

1,225

3,763

Tax asset

428

4,018

Inventories

350,023

348,471

Prepayments

15,146

16,149

Other current assets

35,663

30,314

Current assets

1,625,284

1,625,989

Non-current assets

 

 

Investment by the equity method, net

7,444

7,864

Real property, plant and equipment

625,577

692,770

Investment property, net

56,023

56,872

Deferred income tax assets

33,851

33,756

Other non-current assets

27,825

27,156

Non-current assets

750,720

818,418

Assets

2,376,004

2,444,407

Current liabilities

 

 

Short-term borrowing

23,585

20,000

Notes payable

1,103

1,475

Account payable

195,329

196,164

Account payable-related party

0

38

Other accounts payable

118,533

112,915

Income tax liability

19,247

6,362

Other current liabilities

47,803

95,783

Current liabilities

405,600

432,737

Non-current liabilities

 

 

Long-term borrowings

52,500

171,500

Deferred income tax liabilities

49,369

43,292

Other non-current liabilities

100,175

103,994

Non-current liabilities

202,044

318,786

Liabilities

607,644

751,523

Ordinary share

1,363,895

1,363,895

Total capital stock

1,363,895

1,363,895

Retained earnings

176,624

154,624

Other equity

191,853

138,379

Treasury stock

-24,333

-24,333

Total equity attributable to owners parent

1,761,432

1,685,958

Non-controlling interests

6,928

6,926

Total equity

1,768,360

1,692,884

For cancellation of equity shares (unit: share)

0

0

Advance share (equity) under the about when issuing shares (unit: share)

0

0

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

1,774,064

1,774,064

 

 


Profit and Loss Account

 

Unit: NTD/000

Consolidated

2014

2013

Operating income

1,777,287

1,926,753

Cost of sales

1,434,228

1,569,228

Operating costs

1,434,228

1,569,228

Gross profit (loss) from operations

343,059

357,525

Gross profit (loss) from operations, net

343,059

357,525

Operating expenses

 

 

Selling expense

90,299

96,221

Administrative expenses

146,087

140,658

Research and development expenses

14,317

18,432

Operating expenses

250,703

255,311

Operating profit (loss)

92,356

102,214

Non-operating revenues and gains

 

 

Other income

19,594

17,030

Other profit (loss), net

7,629

3,741

Net financial cost

2,957

7,424

Related companies and joint venture share profits and losses recognized by employing the equity method, net

-420

-288

Total non-operating revenue (cost)

23,846

13,059

Profit (loss) from continuing operations before tax

116,202

115,273

Income tax expense (income)

29,471

16,531

Profit (loss) from continuing operations

86,731

98,742

Profit (loss) from continuing operations before tax

86,731

98,742

Other comprehensive profit and loss (net)

 

 

Exchange differences on translation

53,708

49,163

Actuarial gains (losses) on defined benefit plans

3,894

26,433

Income tax related to components of other comprehensive income

662

4,493

Other comprehensive income, net

56,940

71,103

Total comprehensive income

143,671

169,845

Net profit (loss) attributable to:

 

 

Profit (loss), attributable to owners of parent

86,963

98,986

Profit (loss), attributable to non-controlling interests

-232

-244

Comprehensive income, attributable to:

 

 

Comprehensive income, attributable to owners of parent

143,669

169,725

Comprehensive income, attributable to non-controlling interests

2

120

Basic earnings per share

 

 

Total basic earnings per share

0.65

0.74

Diluted earnings per share

 

 

Total diluted earnings per share

0.64

0.73

 

 

Cash Flows

 

Unit: NTD/000

Consolidated

2014

2013

Cash flows from (used in) operating activities, indirect method

 

 

Profit (loss) from continuing operations before tax

116,202

115,273

Profit (loss) before tax

116,202

115,273

Depreciation expense

79,074

89,957

Amortization expense

2,526

2,617

Bad debt expense item number (income)

-705

-1,830

Net loss (gain) on financial assets or liabilities at fair value through profit or loss

-420

-151

Interest expense

2,957

7,424

Interest income

-7,995

-3,991

Related companies and joint venture share profits and losses recognized by employing the equity method, net

420

288

Loss (gain) on disposal of property, plant and equipment

3,362

923

Disposal of loss (profit) of investment

-3,966

0

Non-effect on cash gains and losses items

75,253

95,237

Decrease (increase) in notes receivable

1,042

-1,700

Decrease (increase) in accounts receivable

47,515

23,701

Decrease (increase) in accounts receivable-related party

443

3,641

Decrease (increase) in other receivable

1,623

-842

Decrease (increase) in other receivable-related party

0

481

Decrease (increase) in inventories

5,815

48,786

Decrease (increase) in other current asset

3,303

3,641

Decrease (increase) in other financial asset

-2,993

-726

Total changes in operating assets

56,748

76,982

Increase (decrease) in notes payable

-372

534

Increase (decrease) in accounts payable

-6,914

-10,246

Increase (decrease) in accounts payable-related party

-38

-2,467

Increase (decrease) in other payable

7,671

1,658

Increase (decrease) in other current liabilities

13,424

-6,827

Increase (decrease) in accrued pension liabilities

-806

-14,552

Total changes in operating liabilities

12,965

-31,900

Total changes in operating assets and liabilities

69,713

45,082

Total adjustments

144,966

140,319

Cash inflow (outflow) generated from operations

261,168

255,592

Interests collected

8,296

5,048

Interest paid

-3,008

-8,570

Income taxes refund (paid)

-7,059

1,581

Net cash flows from (used in) operating activities

259,397

253,651

Cash flow of investment activities

 

 

Disposal of financial assets valued by cost

3,966

0

Acquisition of property, plant and equipment

-2,252

-20,924

Decrease in other non-current asset

-2,513

-315

Net cash flows from (used in) investing activities

-799

-21,239

Cash flows from (used in) financing activities

 

 

Increase in short-term borrowings

3,585

0

Decrease in short-term borrowings

0

-195,408

Long-term borrowings

0

43,510

Repayments of long-term debt

-166,500

0

Increase in guarantee deposit received

34

0

Decrease in guarantee deposit received

0

-3,333

Cash dividends paid

-68,195

0

Other financing activities

-5,135

0

Net cash flows from (used in) financing activities

-236,211

-155,231

Effect of exchange rate changes on cash and cash equivalents

21,624

22,096

Net increase (decrease) in cash and cash equivalents

44,011

99,277

Cash and cash equivalents at beginning of period

751,528

652,251

Cash and cash equivalents at end of period

795,539

751,528

Cash and cash equivalents reported in the statement of financial position

795,539

751,528

 

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

Ms. Lin

Department

Sales Department

E-mail

Lydia.lin@jamicon.com.tw

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.30

UK Pound

1

Rs.98.70

Euro

1

Rs.72.33

TWD

1

Rs.2.02

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

TPT

 


               

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.