MIRA INFORM REPORT

Report No. :	309136
Report Date :	02.03.2015

IDENTIFICATION DETAILS

Name :	MACROBLOCK, INC.
Registered Office :	3F-5,6, No.18, Pu-Ting Rd., Hsinchu 300, Taiwan, R.O.C.
Country :	Taiwan
Financials (as on) :	31.12.2013
Date of Incorporation :	25.06.1999
Com. Reg. No.:	16948543
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and Sales of Related Products for LED.
No. of Employees :	About 170

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 :	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 – 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:	MACROBLOCK, INC.
Supplied Name:	MACROBLOCK INC
Trading Address:	Floor 6-4, No. 18, Pu-Ting Rd., Hsinchu 30072, Taiwan, R.O.C
Supplied Address:	F3-5, No.18, Pu-Ting Road, Hsinchu, Taiwan (300), R.O.C.
Telephone Number:	+886-3-579-0068
Fax Number:	+886-3-579-7534
E-mail:	info@mblock.com.tw

Note: The exact name and address are as above. The supplied address is subject’s registered address.

Company Identification Details

Registered Name:	Macroblock, Inc.
Registered Address:	3F-5,6, No.18, Pu-Ting Rd., Hsinchu 300, Taiwan, R.O.C.
Date of Foundation:	1999-6-25
Registration Number:	16948543
Registry:	MOEA Central Office
Registered Capital:	NTD 400,000,000 (USD 12,720,000) (As of 2015.2, 1 NTD = 0.0318 USD)
Paid-up Capital:	NTD 326,563,980 (USD 10,384,735)
Legal Representatives:	Lichang Yang
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sales of related products for LED and etc.
Staff:	About 170 employees
Listed at Stock Exchange:	Yes; (Public, TPE: 3527)
Date of Last Annual Return:	2014-4-3

History

Subject was incorporated on 1999-6-25 with registered number 16948543 as Joint Stock Company in Taiwan.

Subject listed on Taiwan Over-The-Counter Securities Exchange on 2007-10-29

Corporate Structure

Factory

Address:	3F-5,6, No.18, Pu-Ting Rd., Hsinchu 300, Taiwan, R.O.C.
Date of Registration:	2001-5-21
Factory Registration Number:	99667414
Factory Manager:	Lichang Yang
Status:	In Production
Date of Last Annual Return:	2004-7-2
Major Products:	261 Semiconductor

Shareholders

Major Shareholders

Name	Subscription Shares
Lichang Yang	1,688,735
Zhongyou Wu
425,222
Guanghong Huang	251,819
Shaling Guo	784,784
China Development Financial Holding Corporation (Liberal Translation)	250,000
IBT Holdings Corporation (Liberal Translation)	400,000
Rixin Investment Co Ltd (Liberal Translation)	74,687
Kangmao Liu	2,773
Guodong Diao	100
Shifang Zheng	227,599
Xiaomei Guo	138,000

Shareholder Information:

1
Registered Name:	Rixin Investment Co Ltd (Liberal Translation)
Registered Address:	7/F., No. 16, Lane 77, Xingai Rd., Neihu Dist., Taipei City, Taiwan.
Date of Foundation:	1996-2-2
Date of Dissolved	2015-1-8
Registration Number:	96972376
Registry:	Taipei City Government
Registered Capital:	NTD 800,000,000 (USD 25,440,000) (As of 2015.2, 1 NTD = 0.0318 USD)
Paid-up Capital:	NTD 71,842,800 (USD 2,284,601)
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2014-12-3
2
Registered Name:	IBT Holdings Corporation (Liberal Translation)
Registered Address:	No. 99, Sec. 2, Tiding Rd., Neihu Dist., Taipei City, Taiwan.
Date of Foundation:	1999-7-27
Registration Number:	70745361
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 25,905,063,010 (USD 823,781,004) (As of 2015.2, 1 NTD = 0.0318 USD)
Paid-up Capital:	NTD 23,905,063,010 (USD 760,181,004)
Legal Representatives:	Jinming Luo
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2015-2-9
3
Registered Name:	China Development Financial Holding Corporation (Liberal Translation)
Registered Address:	11/F., No. 125, Sec. 5, Nanjing East Rd., Songshan Dist., Taipei City, Taiwan.
Date of Foundation:	2002-3-5
Registration Number:	80328870
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 9,255,380,000 (USD 294,321,084) (As of 2015.2, 1 NTD = 0.0318 USD)
Paid-up Capital:	NTD 6,686,713,630 (USD 212,637,493)
Legal Representatives:	Xin Chen
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2014-9-11

Management Information

Core Management

Directors

1
Name		Lichang Yang
Position		Board Chairman
2
Name	Zhongyou Wu
Position		Director
3
Name	Guanghong Huang
Position		Director
4
Name	Shaling Guo
Position		Director
5
Name	China Development Financial Holding Corporation (Liberal Translation)
Position		Director
6
Name	IBT Holdings Corporation (Liberal Translation)
Position		Director
7
Name	Rixin Investment Co Ltd (Liberal Translation)
Position		Director
8
Name	Kangmao Liu
Position		Independent Director
9
Name	Guoping Zhang
Position		Independent Director
10
Name	Guodong Diao
Position		Independent Director
11
Name	Jianhua Fu
Position		Supervisor
12
Name	Shifang Zheng
Position		Supervisor
13
Name	Xiaomei Guo
Position		Supervisor

Personnel Structure

Total Employees

About 170 employees

Operation Information

	Headquarters
Add	Floor 6-4, No. 18, Pu-Ting Rd., Hsinchu 30072, Taiwan, R.O.C

Production Information

Subject is a manufacturer of related products for LED.

It is introduced that subject has a factory in Taiwan for production.

It is introduced that subject has obtained ISO 9001: 2000 certification.

Purchase Information

The registered activities of subject:

Business Code	Details
IZ99990	Other trading business services
F119010	Wholesales of electronic materials.
F219010	Retails of electronic materials.
F401010	International trading business.
I501010	Designing of products.
CC01080	Manufacturing of electronic components.
F113020	Wholesales of electrical appliances.
F213010	Retails of electrical appliances.
CC01040	Manufacturing of lighting appliances.
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

It is introduced that subject purchases components and raw material from both home and aboard.

Sales Information

Subject is mainly engaged in sale of LED and etc.

Subject’s major products are LED display driver IC and LED power module, etc.

It is introduced that subject’s products are applied to the lighting of construction, traffic signs, computers and etc.

Subject’s sales regions cover all over the world.

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Products	Components
Payment Terms	T/T, Cash

Import

Products	Components
Payment Terms	L/C, T/T

Sales

Domestic Markets

Product	LED
Selling Terms	T/T, Cash

Export

Product	LED
Selling Terms	L/C, T/T

Balance Sheet

Unit: NTD/000

Consolidated	2013-12-31	2012-12-31
Current assets
Cash and cash equivalents	1,017,210	1,229,386
Financial liabilities measured at fair value through profit or loss - current	0	8
Notes receivable, net	30,021	0
Accounts receivable, net	347,452	240,597
Accounts receivable, net－relations people	6,586	0
Other accounts receivable, net	10,571	39,794
Inventories	289,471	325,562
Prepayments	0	0
Other current assets	49,671	38,557
Total current assets	1,750,982	1,873,904
Non-current assets
Non-current available-for-sale financial assets, net	38,869	0
Real property, plant and equipment	186,340	200,440
Intangible assets	43,556	38,374
Deferred income tax assets	26,993	21,171
Other non-current assets	16,388	15,449
Total non-current assets	312,146	275,434
Assets	2,063,128	2,149,338
Current liabilities
Short-term borrowing	15,000	20,535
To cope with short-term bills	9,982	4,984
Account payable	286,228	232,810
Other accounts payable	116,230	165,368
Income tax liability	28,788	33,482
Current Liabilities Ready	85,581	68,044
Other current liabilities	13,097	6,950
Total current liabilities	554,906	532,173
Non-current liabilities
Deferred income tax liabilities	187	0
Other non-current liabilities	3,874	8,905
Total non-current current liabilities	4,061	8,905
Total liabilities	558,967	541,078
Equity attributable to owners of parent
Share capital
Ordinary share	331,564	331,564
Total capital stock	331,564	331,564
Capital surplus
Total capital surplus	882,903	877,644
Retained earnings
Legal reserve	189,913	160,450
Special reserve	15,511	12,785
Unappropriated retained earnings	134,552	287,220
Total retained earnings	339,976	460,455
Other equity
Exchange differences on translation	-2,416	-6,185
Financial assets available-for-sale Unrealized gains and losses	15	0
Total other equity	-2,401	-6,185
Treasury stock	-67,924	-67,924
Total equity attributable to owners parent	1,484,118	1,595,554
Non-controlling interests	20,043	12,706
Non-controlling interests	1,504,161	1,608,260
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)	500,000	500,000

Profit and Loss Account

Unit: NTD/000

Consolidated	2013-1-1~2013-12-31	2012-1-1~2012-12-31
Net sales revenue	2,154,761	2,471,184
Total operating revenue	2,154,761	2,471,184
Cost of selling	1,461,840	1,586,442
Total operating costs	1,461,840	1,586,442
Gross profit (loss) from operations	692,921	884,742
Profit (loss) of unrealized selling	2,332	0
Gross profit (loss) from operations, net	690,589	884,742
Operating expenses
Selling expenses	151,758	172,618
Administrative expenses	110,238	129,220
Research and development expenses	296,213	301,616
Total operating expenses	558,209	603,454
Operating income (loss)	132,380	281,288
Non-operating income and expenses
Other income	12,766	14,528
Other gains and losses, net	19,201	8,694
Finance costs, net	568	189
Share of net profit or loss of the associated companies and joint ventures recognized the use of the equity method	1,101	0
Total non-operating income and expenses	32,500	23,033
Profit (loss) from continuing operations before tax	164,880	304,321
Total income tax expense (benefit)	24,780	27,438
Profit (loss) from continuing operations	140,100	276,883
Profit (loss)	140,100	276,883
Other comprehensive profit and loss (net)
Exchange differences on translation	3,769	-6,185
Financial assets available-for-sale evaluation unrealized gains and losses	15	1,496
Actuarial gains (losses) on defined benefit plans	178	-1,270
Other comprehensive income, net	3,962	-5,959
Total comprehensive income	144,062	270,924
Net profit (loss) attributable to:
Profit (loss), attributable to owners of parent	158,767	297,625
Profit (loss), attributable to non-controlling interests	-18,667	-20,742
Comprehensive income, attributable to:
Comprehensive income, attributable to owners of parent	162,729	291,666
Comprehensive income, attributable to non-controlling interests	-18,667	-20,742
Basic earnings per share
Profit (loss) from continuing operations	4.86	9.11
Basic earnings per share	4.86	9.11
Diluted earnings per share
Profit (loss) from continuing operations	4.81	8.98
Total diluted earnings per share	4.81	8.98

Cash Flows

Unit: NTD/000

Consolidated	2013-1-1~2013-12-31	2012-1-1~2012-12-31
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	164,880	304,321
Profit (loss) before tax	164,880	304,321
Depreciation expense	52,694	59,061
Amortization expense	19,957	19,662
Cash flows from (used in) operating activities, indirect method	457	-184
Interest expense	568	189
Interest income	-12,766	-14,310
Payment of compensation cost basis of shares	5,159	23,417
Associated companies and joint ventures using the share loss (interest) recognized the equity method of	-1,101	0
Loss (gain) on disposal of property, plant and equipment	240	257
Loss on disposal of investments (interest)	-39	-505
Unrealized interest sales (loss)	2,332	0
Unrealized loss (gain) on foreign currency exchange	-2,182	-824
115,371	115,371	113,593
Non-cash gains and losses items	180,690	200,356
Reduce their holdings for trading financial assets (increase)	8	-8
Decrease (increase) in accounts receivable	-110,668	-91,943
Decrease (increase) in other receivable	29,164	-25,493
Decrease (increase) in inventories	21,345	-88,302
Decrease (increase) in other current asset	-11,114	-5,458
Total changes in operating assets	-71,265	-211,204
Increase (decrease) in accounts payable	52,381	1,775
Increase (decrease) in other payable	-30,220	-201
Prepare liabilities increase (decrease)	-83,446	-57,261
Increase (decrease) in other current liabilities	6,650	-5,347
Increase (decrease) in accrued pension liabilities	-4,809	-2,401
Increase (decrease) in other operating liabilities	-17,184	-1,316
Total changes in operating liabilities	-76,628	-64,751
Total changes in operating assets and liabilities	-147,893	-275,955
Total adjustments	32,797	-75,599
Cash inflow (outflow) generated from operations	197,677	228,722
Interests collected	12,848	14,342
Interest paid	-577	-168
Income taxes refund (paid)	-35,109	-29,708
Net cash flows from (used in) operating activities	174,839	213,188
Cash flows from (used in) investing activities
Acquisition of available-for-sale financial assets	-150,000	-230,000
Disposal of financial assets available-for-sale	120,033	235,762
Investment using the equity method of obtaining	-40,000	0
Disposal of non-current assets held for sale	0	109,595
Acquisition of property, plant and equipment	-39,296	-58,780
Process from disposal of property, plant and equipment	322	362
Increase in guaranteed deposits paid	-924	-1,320
Decrease in guaranteed deposits paid	1,783	1,030
Acquisition of intangible assets	-26,666	-20,881
Increase in prepayments for equipment	-6,647	-15,132
Decrease in prepayments for equipment	5,168	14,487
Net cash flows from (used in) investing activities	-136,227	35,123
Cash flows from (used in) financing activities
Increase in short-term borrowing	39,435	50,535
Decrease in short-term borrowing	-44,970	-30,000
Increase in short-term bills	4,998	4,984
Cash dividends paid	-254,720	-271,048
Changes in non-controlling interests	1,300	0
Net cash flows from (used in) financing activities	-253,957	-245,529
Effect of exchange rate changes on cash and cash equivalents	3,169	-3,027
Net increase (decrease) in cash and cash equivalents	-212,176	-245
Cash and cash equivalents at beginning of period	1,229,386	1,229,631
Cash and cash equivalents at end of period	1,017,210	1,229,386
Cash and cash equivalents reported in the statement of financial position	1,017,210	1,229,386

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

Name	First Commercial Bank

Public Record

Mortgage

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

Lawsuit

Trial Number:	2007, Zhi, 5
Date of Trial:	2007-9-10
Reason:	Payment for damages
Claimant:	Macroblock, Inc.
Defendant:	Dian Jing Technology Co., Ltd. (Liberal Translation)
2
Trial Number:	2007, Chongzhi, 3
Date of Trial:	2009-2-18
Reason:	Payment for damages
Claimant:	Macroblock, Inc.
Defendant:	Dian Jing Technology Co., Ltd. (Liberal Translation)
3
Trial Number:	2009, Zhi, 1
Date of Trial:	2011-1-3
Reason:	Payment for damages
Claimant:	Macroblock, Inc.
Defendant:	Dian Jing Technology Co., Ltd. (Liberal Translation)
4
Trial Number:	2007, Chongzhi, 3
Date of Trial:	2011-1-3
Reason:	Payment for damages
Claimant:	Macroblock, Inc.
Defendant:	Dian Jing Technology Co., Ltd. (Liberal Translation)

Special Note

Interview Details

Department

Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.79
UK Pound	1	Rs.95.42
Euro	1	Rs.69.29

INFORMATION DETAILS

Analysis Done by :	DIV
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%)

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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.