MIRA INFORM REPORT

 

 

Report No. :

327714

Report Date :

23.06.2015

                                                                                                   

IDENTIFICATION DETAILS

 

Name :

APAC OPTO ELECTRONICS INC.

 

 

Formerly Known As :

APAC OPTOELECTRONICS INC.

 

 

Registered Office :

No.3,Tzu Chiang Rd., Fengshan Village, Hukuo Hsiang, Hsinchu Hsien, R.O.C.

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

20.07.1998

 

 

Com. Reg. No.:

16634613

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and Trading of Fiber-Optic Communication Products.

 

 

No. of Employees :

About 500 Employees

 

 

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, 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. However, follow-on components of ECFA, including a signed agreement on trade in services, negotiations on trade in goods, and dispute resolution—have stalled. In early 2014, the government bowed to public demand for 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 under 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 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 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 the Taiwan 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:

APAC Opto Electronics Inc.

Supplied Name:

APAC OPTO ELECTRONICS INC

Trading Address:

No.3,Tzu Chiang Rd., Fengshan Village, Hukuo Hsiang, Hsinchu Hsien, Taiwan, R.O.C.

Supplied Address:

3 Tzu Chiang Road, hsinchu Industrial park, Hukow, Hsinchu hsien 303

Telephone Number:

+886- 3-598-6799

Fax Number:

+886- 3-598-6655

Notes: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

APAC Opto Electronics Inc.

Registered Address:

No.3,Tzu Chiang Rd., Fengshan Village, Hukuo Hsiang, Hsinchu Hsien, Taiwan, R.O.C.

Date of Foundation:

1998-7-20

Registration Number:

16634613

Registry:

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

Registered Capital:

NTD 1,000,000,000 (USD 32,400,000)

(As of 2015.06, 1 NTD = 0.0324 USD)

Paid-up Capital:

NTD 778,276,570 (USD 25,216,161)

Legal Representatives:

Zhengyan Ye

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and trading of fiber-optic communication products

Staff:

About 500 Employees

Listed at Stock Exchange:

Yes; Stock Symbol 4908

Date of Last Annual Return:

2015-6-5

 

 

History

 

Subject was incorporated on 1998-7-20 with registered number 16634613 as Joint Stock Company in Taiwan.

 

Subject listed on Taiwan Over-The-Counter Securities Exchange on 2002-2-27.

 

Former English Name:

APAC Optoelectronics Inc.

Current English Name:

APAC Opto Electronics Inc.

 

 

Corporate Structure

 

Factory

Address:

1F, 2F, 3F, 4F and 5F, No.3,Tzu Chiang Rd., Fengshan Village, Hukuo Hsiang, Hsinchu Hsien, Taiwan, R.O.C.

Date of Registration:

2010-4-23

Factory Registration Number:

99700640

Factory Manager:

Zhengyan Ye

Status:

In Production

Date of Last Annual Return:

2014-1-17

Major Products:

269 other electronic components

 

 

Shareholders

 

Major Shareholders

 

Name

Subscription Shares

Zhengyan Ye

1,743,281

Xiuxia You

660,901

Duanyou Hong

318,289

Jiu Yang Investment Co., Ltd (Literal Translation)

6,723,512

Zhiyuan Liu

291,149

Mingyan Ye

1,694,979

 

Shareholder Information:

Registered Name:

Jiu Yang Investment Co., Ltd (Liberal Translation)

Registered Address:

5F., No.232, Sec. 3, Chengde Rd., Datong Dist., Taipei City, Taiwan (R.O.C.)

Date of Foundation:

1993-3-30

Registration Number:

84253339

Registry:

Taipei City Government

Registered Capital:

NTD 95,000,000 (USD 3,078,000)

(As of 2015.06, 1 NTD = 0.0324 USD)

Paid-up Capital:

NTD 95,000,000 (USD 3,078,000)

Legal Representatives:

Youji Chen

Legal Form:

Joint Stock Company

Date of Last Annual Return:

2013-9-4

 

 

Management Information

 

Core Management

 

Directors

1

Name

Zhenyan Ye

Position

Board Chairman

2

Name

Xiuxia You

Position

Director

3

Name

Duanyou Hong

Position

Director

4

Name

Jiu Yang Investment Co., Ltd (Literal Translation)

Position

Director

5

Name

Zhiyuaqn Liu

Position

Director

6

Name

Mingyan Ye

Position

Supervisor

7

Name

Chunxia Liu

Position

Supervisor

8

Name

Yueling Chen

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 500 Employees

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

No.3,Tzu Chiang Rd., Fengshan Village, Hukuo Hsiang, Hsinchu Hsien, Taiwan, R.O.C.

 

Production Information

 

·         Subject is engaged in manufacturing of fiber-optic communication products, etc.

·         Subject has a factory in Hsinchu Hsien, Taiwan for production.

·         Subject obtained the certifications of ISO 9001 and ISO 14001.

 

Purchase Information

 

The registered activities of subject:

Business Code

Details

CC01110 

Manufacturing of computer and related equipment.

CC01120 

Manufacturing and copying of files storage media.

CC01060 

Manufacturing of wired communication equipment.

CC01070 

Manufacturing of wireless communication equipment.

CC01080 

Manufacturing of components and parts.

CE01030 

Manufacturing of optical instrument.

F113050 

Manufacturing of computer and office equipment.

F113070 

Wholesales of telecommunication equipment.

F119010 

Wholesales of telecommunication materials.

F213030 

Retails of computer and office equipment.

F213060 

Retails of telecommunication equipment.

F218010 

Retails of information media.

F219010 

Retails of electronic materials.

F401010 

International trading business.

ZZ99999 

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

 

Subject purchases raw materials and components from both home and abroad.

 

Sales Information

 

·         Subject is engaged in sale of fiber-optic communication products, etc.

·         It is introduced that subject’s products are applied to many fields such as telecom, datacom, video, CATV and etc.

·         It is introduced that subject also provides OEM services.

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

·         Subject’s major customers are manufacturers of communications for internet service providers and telecommunications operating companies.

 

 

Major products

 

No.

Products

1

Optical Transceiver

2

Copper Transceiver

3

Optical Sub Assembly

4

Optical Extender

5

To-Can Assembly

6

Fiber Converter

7

Fiber Extender

8

Micro/Pico Projector

9

SMART Lighting

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

PURCHASE

 

Domestic Purchase

Products

Raw materials and etc.

Payment Terms

Cash, T/T and etc

 

Import

Products

Raw materials and etc.

Payment Terms

L/C, T/T and etc

 

SALES

 

Domestic Markets

Product

Fiber-optic communication products, etc.

Selling Terms

Cash, T/T and etc

 

Export

Product

Fiber-optic communication products, etc.

Selling Terms

Cash, T/T and etc

 

 

Balance Sheet

 

Unit: NTD/000

 

2014-12-31

2013-12-31

Current assets

 

 

Cash and cash equivalents

604,373

565,908

Notes receivable, net

138,345

159,863

Accounts receivable, net

572

1,078

Inventories

310,078

196,791

Prepayments

5,876

3,205

Other current assets

4,077

4,251

Total current assets

1,063,321

931,096

Non-current assets

 

 

Real property, plant and equipment

381,664

418,107

Intangible assets

2,295

2,691

Deferred income tax assets

4,898

7,444

Other non-current assets

6,421

4,776

Non-current assets

395,278

433,018

Assets

1,458,599

1,364,114

Current liabilities

 

 

Account payable

85,877

104,157

Income tax liability

15,979

22,571

Other current liabilities

109,248

91,515

Current liabilities

211,104

218,243

Non-current liabilities

 

 

Deferred income tax liabilities

402

1,404

Other non-current liabilities

1,250

5,256

Non-current liabilities

1,652

6,660

Liabilities

212,756

224,903

Share capital

 

 

Ordinary share

756,277

748,082

Deferred capital

1,940

10,066

Total capital stock

758,217

758,148

Capital surplus

 

 

Capital surplus

57,118

38,648

Retained earnings

 

 

Retained earnings

430,508

342,415

Total equity

1,245,843

1,139,211

For the cancellation of equity shares (unit: share)

0

0

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

82,000

441,500

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

0

0

 

 

Profit and Loss Account

 

Unit: NTD/000

 

2014

2013

Sales

1,310,646

1,294,556

Sales return

243

3,952

Sales discounts

99

1,254

Sales net income

1,310,304

1,289,350

Operating income

1,310,304

1,289,350

Operating costs

915,641

954,119

Gross profit (loss) from operations

394,663

335,231

Gross profit (loss) from operations, net

394,663

335,231

Operating expenses

 

 

Selling expenses

28,329

28,814

Administrative expenses

48,165

42,226

Research and development expenses

107,571

108,877

Total operating expenses

184,065

179,917

Operating income (loss)

210,598

155,314

Non-operating income and expenses

 

 

Other income

6,202

4,368

Other gains and losses, net

14,073

13,427

Finance costs, net

0

19

Total non-operating income and expenses

20,275

17,776

Profit (loss) from continuing operations before tax

230,873

173,090

Income tax expense (income)

28,740

41,287

Profit (loss) from continuing operations

202,133

131,803

Profit (loss)

202,133

131,803

Other comprehensive profit and loss (net)

 

 

Actuarial gains (losses) on defined benefit plans

3,129

-986

Income tax related to components of other comprehensive income

532

-168

Other comprehensive income, net

2,597

-818

Total comprehensive income

204,730

130,985

Basic earnings per share

 

 

Total basic earnings per share

2.68

1.76

Diluted earnings per share

 

 

Total diluted earnings per share

2.61

1.73

 

 

Cash Flows

 

Unit: NTD/000

 

2014

2013

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

 

 

Profit (loss) from continuing operations before tax

230,873

173,090

Profit (loss) before tax

230,873

173,090

Depreciation expense

57,813

67,814

Amortization expense

765

722

Interest expense

0

19

Interest income

-6,202

-4,368

Share based payment compensation cost

7,413

15,511

Non-cash gains and losses items

59,789

79,698

Decrease (increase) in notes receivable

-799

762

Decrease (increase) in accounts receivable

22,317

19,947

Decrease (increase) in other receivable

546

-864

Decrease (increase) in inventories

-113,287

14,356

Decrease (increase) in prepayments

-3,093

913

Decrease (increase) in other current asset

174

636

Total changes in operating assets

-94,142

35,750

Increase (decrease) in accounts payable

-18,280

12,638

Increase (decrease) in other current liabilities

17,455

-15,572

Increase (decrease) in accrued pension liabilities

-877

-654

Total changes in operating liabilities

-1,702

-3,588

Total changes in operating assets and liabilities

-95,844

32,162

Total adjustments

-36,055

111,860

Cash inflow (outflow) generated from operations

194,818

284,950

Interests collected

6,162

4,590

Interest paid

0

-19

Income taxes refund (paid)

-33,898

-19,440

Net cash flows from (used in) operating activities

167,082

270,081

Cash flows from (used in) investing activities

 

 

Acquisition of property, plant and equipment

-11,530

-4,775

Decrease in guaranteed deposits paid

0

30

Acquisition of intangible assets

-369

-1,148

Other non-current assets increased

-11,207

-4,373

Net cash flows from (used in) investing activities

-23,106

-10,266

Cash flows from (used in) financing activities

 

 

Cash dividends paid

-116,637

-149,606

Exercise of Employee Stock Options

11,126

10,428

Net cash flows from (used in) financing activities

-105,511

-139,178

Net increase (decrease) in cash and cash equivalents

38,465

120,637

Cash and cash equivalents at beginning of period

565,908

445,271

Cash and cash equivalents at end of period

604,373

565,908

Cash and cash equivalents reported in the statement of financial position

604,373

565,908

 

 

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

 

1

Trial Number:

2003, Su, 878

Date of Trial:

2004-6-11

Reason:

Payment for goods

Claimant:

Wha Yu Industrial Co., Ltd.

Defendant:

APAC Opto Electronics Inc.

2

Trial Number:

2003, Bu, 914

Date of Trial:

2003-12-4

Reason:

Payment for goods

Claimant:

Wha Yu Industrial Co., Ltd.

Defendant:

APAC Opto Electronics Inc.

3

Trial Number:

2005, Chu, 399

Date of Trial:

2005-8-26

Reason:

Invalidating judgment

Claimant:

Not stated

Defendant:

Not stated

4

Trial Number:

2011, Sicui, 63

Date of Trial:

2011-2-18

Reason:

Service by publication

Claimant:

Weinan Li

Defendant:

Not stated

5

Trial Number:

2011, Chu, 206

Date of Trial:

2011-7-8

Reason:

Invalidating judgment

Claimant:

Weinan Li

Defendant:

Not stated

 

 

Special Note

 

Interview Details

Department

Sales Department


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.51

UK Pound

1

Rs.100.94

Euro

1

Rs.72.32

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIT

 

 

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.