MIRA INFORM REPORT

 

 

Report No. :

323645

Report Date :

28.05.2015

 

IDENTIFICATION DETAILS

 

Name :

E-TON SOLAR TECH. CO., LTD

 

 

Registered Office :

No.498, Sec. 2, Bentian Rd., Annan Dist., Tainan City 709

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

26.12.2001

 

 

Com. Reg. No.:

12999083

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and sale of solar cells

 

 

No. of Employee :

About 620 Employees

           

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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, negotiations on follow-on components of ECFA, including an agreement on trade in services, deals 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 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 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 fourth largest, behind those of China, Japan, and Russia. 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 entry-level jobs.

Source : CIA

 

 

 

Contact Points

 

Company Name:

E-Ton Solar Tech. Co., Ltd.

Former Name:

E-Ton Solar Tech. Ind. Co., Ltd.

Supplied Name:

E Ton Solar Tech Co Ltd.

Trading Address:

No.498, Sec. 2, Bentian Rd., Annan Dist., Tainan City 709, Taiwan

Supplied Address:

No. 498 Section 2, Bentian Rd., An-Ban District Tainan 709 Taiwan

Telephone Number:

+886-6-384-0777

Fax Number:

+886-6-384-0872

E-mail:

business@e-tonsolar.com

Website:

www.e-tonsolar.com

Notes: The exact name is as above.

 

 

Company Identification Details

 

Registered Name:

E-TON SOLAR TECH. CO., LTD.

Registered Address:

No.498, Sec. 2, Bentian Rd., Annan Dist., Tainan City 709, Taiwan

Date of Foundation:

2001-12-26

Registration Number:

12999083

Registry:

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

Registered Capital:

NTD 9,000,000,000 (USD 292,500,000)

(As of 2015.5, 1 NTD = 0.0325 USD)

Paid-up Capital:

NTD 7,794,497,420 (USD 253,321,166)

Legal Representatives:

Xinqun Xu

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sale of solar cells

Staff:

About 620 Employees

Listed at Stock Exchange:

Yes; Stock Code: 3452

Date of Last Annual Return:

2014-6-26

 

 

History

 

Subject was incorporated on 2001-12-26 with registered number 12999083 as Joint Stock Company in Taiwan.

 

Subject listed on Taiwan Over-The-Counter Securities Exchange on 2006-3-8.

 

 

 

Corporate Structure

 

Factory

Address:

No.498, Sec. 2, Bentian Rd., Annan Dist., Tainan City 709, Taiwan

Date of Registration:

2002-11-25

Factory Registration Number:

99676604

Factory Manager:

Xinqun Xu

Status:

In Production

Date of Last Annual Return:

2012-3-3

Major Products:

264 Photoelectric material and components

 

 

Shareholders

 

Major Shareholders

 

Name

Subscription Shares     

Inventec Corporation

231,520,528

Fudai Investment Co., Ltd. (Literal Translation)

42,500,000

Licheng Ye

25,100,000

 

Shareholder Information:

1

Registered Name:

Inventec Corporation

Registered Address:

No. 66, Hougang St., Shilin Dist., Taipei City, Taiwan

Date of Foundation:

1975-6-9

Registration Number:

04322046

Registry:

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

Registered Capital:

NTD 36,500,000,000 (USD 1,186,250,000)

(As of 2015.05, 1 NTD = 0.0325 USD)

Paid-up Capital:

NTD 35,874,750,660 (USD 1,165,929,397)

Legal Representatives:

Shiqin Li

Legal Form:

Joint Stock Company

Date of Last Annual Return:

2014-6-27

2

Registered Name:

Fudai Investment Co., Ltd. (Literal Translation)

Registered Address:

5F-5, No. 148, Sec. 4, Zhongxiao E. Rd., Da’an Dist., Taipei City, Taiwan

Date of Foundation:

1990-5-30

Registration Number:

23641914

Registry:

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

Registered Capital:

NTD 1,500,000,000 (USD 48,750,000)

(As of 2015.05, 1 NTD = 0.0325 USD)

Paid-up Capital:

NTD 1,500,000,000 (USD 48,750,000)

Legal Representatives:

Licheng Ye

Legal Form:

Joint Stock Company

Date of Last Annual Return:

2014-4-16

 

 

Management Information

 

Core Management

 

Directors

1

Name

Xinqun Xu

Position

Chairman of the Board

2

Name

Qingzhang Wen

Position

Director & Manager

Date of Appointment for Manager

2011-6-24

3

Name

Xinhua Yang

Position

Director

4

Name

Jinbao You

Position

Director

5

Name

Mingzhang Lai

Position

Independent Director

6

Name

Yangzong Cai

Position

Independent Director

7

Name

Yingzhi Wu

Position

Independent Director

8

Name

Licheng Ye

Position

Supervisor

9

Name

Xianhe Cheng

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 620 Employees

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

No.498, Sec. 2, Bentian Rd., Annan Dist., Tainan City 709, Taiwan

 

Production Information

 

Subject is engaged in manufacturing of solar cells, etc.

Subject has a factory in Taiwan for production.

It is introduced that subject’s annual capacity has been about 880 MW since 2011.

 

Purchase Information

 

The registered activities of subject:

Business Code

Details

ZZ99999

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

 

The components and raw materials for production are both purchased at home and abroad.

 

Sales Information

 

Subject is engaged in sale of solar cells, etc.

The major products of the subject include solar cells, solar energy related application products and photoelectric materials, etc.

Subject’s sales regions are domestic market and abroad.

Two of subject’s major customers are E Ton America, Llc. and E Ton Power Tech Co., Ltd.

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase

Products

Components and raw materials, etc.

Payment Terms

T/T, Cash, etc.

 

Import

Products

Components and raw materials, etc.

Payment Terms

L/C, T/T, etc.

 

Sales

 

Domestic Markets

Product

Solar cells, etc.

Selling Terms

T/T, Cash, etc.

 

Export

Product

Solar cells, etc.

Selling Terms

L/C, T/T, etc.

 

 

Balance Sheet

 

Unit: NTD/000

Consolidated

2014-12-31

2013-12-31

Current assets

 

 

Cash and cash equivalents

22,975

228,111

Financial assets for sale-current asset

0

634

Accounts receivable, net

438,464

274,697

Accounts receivable-related parties net

129,936

44,725

Other accounts receivable, net

33,778

285,447

Inventories

1,291,626

586,791

Prepayment

1,346,374

526,107

Other current assets

130,950

97,489

Total current assets

3,394,103

2,044,001

Non-current assets

 

 

Financial assets valued by cost- non-current net

60,000

60,000

Property, plant and equipment

3,833,218

4,100,508

Net investment non-current assets

590,080

618,025

Intangible assets

857

2,238

Deferred tax assets

66,228

66,228

Other non-current assets

1,125,316

2,679,667

Non-current assets

5,675,699

7,526,666

Total assets

9,069,802

9,570,667

Current liabilities

 

 

Short-term borrowings

198,093

394,515

Notes payable

38,142

43,582

Accounts payable

655,258

415,283

Other accounts payable

481,032

433,724

Other current liabilities

16,889

32,955

Total current liabilities

1,389,414

1,320,059

Non-current liabilities

 

 

Long-term borrowings

240,000

0

Total non-current liabilities

240,000

0

Total liabilities

1,629,414

1,320,059

Total equity

 

 

attributable to the parent company

 

 

Common stock

7,794,498

7,794,498

Total equity

7,794,498

7,794,498

Capital surplus

 

 

Total capital surplus

2,148,495

2,147,942

Retained earnings

 

 

Total retained earnings

-2,333,989

-1,573,913

Total other equity

-1,822

-4,579

Total equity attributable to owners of parent

7,607,182

8,363,948

Non-controlling equity

-166,794

-113,340

Total equity

7,440,388

8,250,608

Number of shares in entity held by entity and by its subsidiaries

0

0

 

 

Profit and Loss Account

 

Unit: NTD/000

Consolidated

2014

2013

Net sales revenue

4,452,140

3,268,572

Operating revenue

4,452,140

3,268,572

Operating costs

4,538,710

3,738,353

Gross profit (loss) from operations

-86,570

-469,781

Gross profit (loss) from operations net

-86,570

-469,781

Operating expenses

 

 

Selling expenses

55,059

34,609

Administrative expenses

164,340

205,250

Research and development expenses

69,273

79,304

Total operating expenses

288,672

319,163

Operating income (loss)

-375,242

-788,944

Non-operating income and expenses

 

 

Other income

297

2,968

Other income or loss net

-426,869

-794,092

Financial costs net

11,782

27,782

Non-operating income and expenses total

-438,354

-818,906

Income or loss net before tax

-813,596

-1,607,850

Total tax income (loss)

18

60

Profit (loss) from continuing operations-net

-813,614

-1,607,910

Net profit (loss)

-813,614

-1,607,910

Other comprehensive income (loss) net

 

 

Exchange differences on translation

-670

156

Unrealized income or loss of financial assets for sale

3,097

352

Determine the welfare program actuarial profit (loss)

414

-166

Other comprehensive income or loss net

2,841

342

Comprehensive income or loss

-810,773

-1,607,568

Net profit (loss) attributable to:

 

 

Net income or loss of parent company

-760,490

-1,574,401

Net income or loss of non-controlling equity

-53,124

-33,509

Comprehensive profit (loss) attributable to:

 

 

Comprehensive profit (loss) of parent company

-757,319

-1,575,644

Comprehensive profit (loss) of non-controlling equity

-53,454

-31,924

Basic earnings per share

 

 

Diluted earnings per share

-0.98

-2.16

 

 

Cash Flows

 

Unit: NTD/000

Consolidated

2014

2013

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

 

 

Profit (loss) from continuing operations before tax

-813,596

-1,607,850

Profit (loss) before tax

-813,596

-1,607,850

Depreciation expense

739,639

731,204

Amortization expense

3,041

18,457

Provision (reversal of provision) for bad debt expense

0

455

Net income or loss of financial assets and liabilities by fair value

0

-3,370

Interest expense

11,782

27,782

Interest income

-297

-2,968

Share-based payments

553

9,870

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

2,043

-4,487

Loss (gain) on disposal of investment property assets

0

-74,983

Loss (gain) on disposal of investments

-2,478

0

Impairment loss on non-financial assets

353,240

835,936

Other items

343

142

Total income or loss non-effect cash flow

1,107,866

1,538,038

Decrease (increase) in accounts receivable

-248,978

-60,810

Decrease (increase) in other accounts receivable

14,362

-41,674

Decrease (increase) in inventories

-704,835

-277,147

Decrease (increase) in prepayments

752,806

308,276

Decrease (increase) in other current assets

-11,649

10,968

Total net changes in operating assets

-198,294

-60,387

Increase (decrease) in notes payable

-3,057

1,624

Increase (decrease) in accounts payable

239,975

117,184

Increase (decrease) in other accounts payable

28,495

25,056

Increase (decrease) in other current liabilities

-16,065

-28,450

Total net changes in operating liabilities

249,348

115,414

Total changes in operating assets and liabilities

51,054

55,027

Total adjustments

1,158,920

1,593,065

Cash inflow (outflow) generated from operations

345,324

-14,785

Interest received

326

2,939

Interest paid

-11,555

-36,897

Income taxes refund (paid)

-18

-60

Net cash flows from (used in) operating activities

334,077

-48,803

Cash flows from (used in) investing activities

 

 

Disposal of financial assets for sale

6,281

0

Acquisition of financial assets valued by financial assets

0

-10,000

Acquisition of property, plant and equipment

-470,726

-374,859

Proceeds from disposal of property, plant and equipment

3,507

2,433

Acquisition of intangible assets

-150

-1,177

Proceeds from disposal property

0

110,611

Increase in other financial assets

-115,642

0

Decrease in other financial assets

0

17,754

Increase in other non-current assets

-5,188

-1,834

Net cash flows from (used in) investing activities

-581,918

-257,072

Net cash flows from (used in) financing activities

 

 

Decrease in short-term borrowing

-196,421

-985,193

Company debt payment

0

-6,830

Proceeds from long-term debt

240,000

0

Repayments of long-term debt

0

-484,000

Decrease in other accounts payable-related parties

0

-1,010,415

Increase in cash

0

2,819,672

Net cash flows from (used in) financing activities

43,579

333,234

Effect of exchange rate changes on cash and cash equivalents

-874

2,752

Net increase (decrease) in cash and cash equivalents

-205,136

30,111

Cash and cash equivalents at beginning of period

228,111

198,000

Cash and cash equivalents at end of period

22,975

228,111

Cash and cash equivalents reported in the statement of financial position

22,975

228,111

 

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

 

1

Case Type:

Chattel Mortgage

File No.:

098903

Debtor Name:

E-Ton Solar Tech. Co., Ltd.

Document Number:

09830512080

Date of Registration:

2009-12-22

Date of Alteration:

--

2

Case Type:

Chattel Mortgage

File No.:

098886

Debtor Name:

E-Ton Solar Tech. Co., Ltd.

Document Number:

09830512100

Date of Registration:

2009-12-21

Date of Alteration:

--

3

Case Type:

Chattel Mortgage

File No.:

098923

Debtor Name:

E-Ton Solar Tech. Co., Ltd.

Document Number:

09830513610

Date of Registration:

2009-12-23

Date of Alteration:

2010-3-8

 

Lawsuit

 

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

 

 

Special Note

 

Interview Details

Name

Ms. Li

Department

Sales Department

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.95

UK Pound

1

Rs.98.64

Euro

1

Rs.69.86

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

SDA

 

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.