MIRA INFORM REPORT

Report No. :	342116
Report Date :	25.09.2015

IDENTIFICATION DETAILS

Name :	TAINERGY TECH CO., LTD.
Registered Office :	No.5, Tzu-Chiang 1st Rd., Zhongli Dist., Taoyuan City 320
Country :	Taiwan
Financials (as on) :	31.12.2014 (Consolidated)
Date of Incorporation :	14.05.2007
Com. Reg. No.:	28675574
Legal Form :	Joint Stock Company
Line of Business :	Manufacturing and trade of solar cells
No. of Employees :	About 700 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 – 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

Company name and address

Company Name:	Tainergy Tech Co., Ltd.
Supplied Name:	Tainergy Tech Co Ltd
Trading Address:	3F, No. 97, Sec. 2, Nan-Kang Rd., Taipei, Taiwan
Supplied Address:	No. 5, Tzu-Chuang 1st Road, Ghungu Industrial Zone, Taoyuan Hsein
Telephone Number:	+886-2-2788-3798
E-mail:	tainergy@tainergy.com.tw

Note: The exact name and address are as above. The supplied address belongs to that of the factory of the subject.

Company Identification Details

Registered Name:	Tainergy Tech Co., Ltd.
Registered Address:	No.5, Tzu-Chiang 1st Rd., Zhongli Dist., Taoyuan City 320, Taiwan (R.O.C.)
Date of Foundation:	2007-5-14
Registration Number:	28675574
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 4,000,000,000 (USD 121,600,000) (As of 2015.9, 1 NTD = 0.0304 USD)
Paid-up Capital:	NTD 3,165,450,000 (USD 96,229,680)
Legal Representatives:	Qingfu Xie
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and trade of solar cells
Staff:	About 700 employees
Listed at Stock Exchange:	Yes, Stock Code TPE: 4934
Date of Last Annual Return:	2015-7-22

History

Subject was incorporated on 2007-5-14 with registered number 28675574 as Joint Stock Company in Taiwan.

Subject listed on Taiwan Stock Exchange on 2011-8-16

Awards

Year	Awards
2008	Blue chip importer and exporter
2009	Blue chip importer and exporter
2010	Blue chip importer and exporter

Standard of Blue chip importer and exporter

Unit: USD

Year	Amount
2008	19,000,000
2009	15,000,000
2010	20,000,000

Corporate Structure

Factory

Address:	1/F., 3/F. and 4/F., No.5, Tzu-Chiang 1st Rd., Zhongli Dist., Taoyuan City 320, Taiwan (R.O.C.)
Date of Registration:	2008-7-10
Factory Registration Number:	99707706
Factory Manager:	Qingfu Xie
Status:	In production
Date of Last Annual Return:	2013-3-8
Major Products:	264 Photoelectric material and components
Tel:	+886-3-455-5807/3-463-9922
Fax:	+886-3-455-5383

Major Related Company

Name:	Tainergy Tech (Kunshan) Limited (literal translation)
Address:	No. 1288, Fuchun Jiang Rd., Penglang, Kunshan Development Zone, Jiangsu Province, China
Date of Registration:	2008-06-25
Registration Number:	320000400003497
Registered Capital:	USD 47,700,000
Legal Representatives:	Qingfu Xie
Date of Last Annual Return:	2015-08-07

Shareholders

Major Shareholders

Name	Subscription Shares
Kenmec Mechanical Engineering Co., Ltd.	112,757,833
Xiuzhi Jian	774,834
Zhongnan Fang	493,000

Shareholder Information:

Registered Name:	Kenmec Mechanical Engineering Co., Ltd.
Registered Address:	1/F., No. 69, Ruifang Industrial Zone, Dingping Rd., Ruifang Dist., New Taipei City, Taiwan
Date of Foundation:	1976-7-12
Registration Number:	04757891
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 4,020,000,000 (USD 122,208,000) (As of 2015.9, 1 NTD =0.0304 USD)
Paid-up Capital:	NTD 2,540,111,500 (USD 77,219,390)
Legal Representatives:	Qingfu Xie
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2015-7-13

Management Information

Core Management

Directors

1
Name		Qingfu Xie
Position		Board Chairman
2
Name	Zhouhuang Bai
Position		Director
3
Name	Weidi Chen
Position		Director
4
Name	Honglin Chen
Position		Director
5
Name	Yaorong Kan
Position		Independence Director
6
Name	Jiaxiang Wang
Position		Independence Director
7
Name	Fuling Ye
Position		Independence Director
8
Name	Xiuzhi Jian
Position		Supervisor
9
Name	Zhongnan Fang
Position		Supervisor
10
Name	Jianliang Chen
Position		Supervisor

Personnel Structure

Total Employees

About 700 employees

Operation Information

Offices & Factories

	Headquarters
Add	3F, No. 97, Sec. 2, Nan-Kang Rd., Taipei, Taiwan

Production Information

• Subject is engaged in manufacturing of solar cells
• Subject has a factory in Taiwan for production.
• It is introduced that subject’s production capacity is about 600 MW per year.
• Subject has obtained the certification of ISO 9001:2000(CNS 12681).

Purchase Information

• The registered activities of subject:

Business Code	Details
CC01010	Manufacture of power,
CC01060	Manufacture of wire communication equipment
CC01070	Manufacture of wireless communication equipment
CC01080	Manufacture of electronic material
CC01090	Manufacture of battery
F401010	International trade
E604010	Installation of machinery
E701030	The controlled telecommunications radio-frequency devices installed engineering
F113010	Wholesale of machineries
F113110	Wholesale of batteries
F213080	Retail of mechanical appliances
F119010	Wholesale of electronics material
F213110	Battery retail industry
F219010	Electronics material retail industry
F401010	International trade
I501010	Product design industry
IG02010	Research and development services
IG03010	Energy services industry
CA04010	Treatment industry of metal surface
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

• The components and raw material for production are mostly purchased in domestic market.

Sales Information

• Subject is engaged in sale of solar cells
• The major products sold by the subject are six-inch multi-crystalline solar cells and solar energy modules.
• Subject’s products are mainly applied in watches, mini-size computers, battery chargers, solar electrical bicycles, power generation and others.
• Subject’s sales regions are Asia, Europe and America

Import and export right:

Import right	Yes
Export right	Yes

Settlements

Purchase

Domestic Purchase

Products	Raw material
Payment Terms	T/T, Cash

Import

Subject has little import.

Sales

Domestic Markets

Product	Solar cells
Selling Terms	T/T, Cash

Export

Product	Solar cells
Selling Terms	L/C, T/T

Balance Sheet

Unit: NTD/000

Consolidated	2014-12-31	2013-12-31
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	1,264,428	582,751
Current financial assets at fair value through profit or loss
Total current financial assets at fair value through profit or loss	103,402	164,220
Current available-for-sale financial assets
Current available-for-sale financial assets, net	31,096	0
Current bond investment without active market
Current bond investment without active market, net	101,933	201,518
Notes receivable, net
Notes receivable, net	98,361	263
Accounts receivable, net
Accounts receivable, net	371,842	399,137
Accounts receivable due from related parties, net
Accounts receivable due from related parties, net	0	0
Construction contracts receivable	1,888	36,739
Other receivables
Other receivables, net	29,691	47,365
Other receivables due from related parties
Other receivables due from related parties, net	784	0
Current tax assets
Total current tax assets	386	770
Inventories
Total inventories	580,278	507,084
Prepayments
Total prepayments	307,763	293,188
Other current assets
Total other current assets	14,635	0
Total current assets	2,906,487	2,233,035
Non-current assets
Non-current bond investment without active market
Non-current bond investment without active market, net	8,036	7,975
Property, plant and equipment
Total property, plant and equipment	3,239,233	3,417,629
Intangible assets
Total intangible assets	1,040	1,138
Deferred tax assets	69,185	50,392
Other non-current assets
Prepayments for business facilities	99,293	82,508
Guarantee deposits paid	508,882	649,281
Long-term prepaid rents	176,287	174,228
Other non-current assets, others
Total other non-current assets, others	166,624	200,280
Total other non-current assets	951,086	1,106,297
Total non-current assets	4,268,580	4,583,431
Total assets	7,175,067	6,816,466
Liabilities
Current liabilities
Short-term borrowings
Total short-term borrowings	798,213	965,189
Current financial liabilities at fair value through profit or loss
Total current financial liabilities at fair value through profit or loss	1,492	2,152
Notes payable
Total notes payable	133,129	268,314
Accounts payable
Total accounts payable	543,873	531,262
Accounts payable to related parties
Total accounts payable to related parties	0	0
Construction contracts payable	559	0
Other payables
Total other payables	293,944	260,056
Other payables to related parties	115,047	566,678
Current tax liabilities	5,647	0
Other current liabilities
Advance receipts
Total advance receipts	100,186	8,819
Long-term liabilities, current portion
Total long-term liabilities, current portion	275,909	389,115
Other current liabilities, others	534	388
Total other current liabilities	376,629	398,322
Total current liabilities	2,268,533	2,991,973
Non-current liabilities
Long-term borrowings
Total long-term borrowings	209,111	238,555
Deferred tax liabilities
Total deferred tax liabilities	11,339	2,212
Other non-current liabilities
Long-term deferred revenue	207,922	210,943
Accrued pension liabilities	4,086	3,671
Guarantee deposits received	51	3,626
Total other non-current liabilities	212,059	218,240
Total non-current liabilities	432,509	459,007
Total liabilities	2,701,042	3,450,980
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	2,765,450	2,310,450
Total capital stock	2,765,450	2,310,450
Capital surplus
Total capital surplus	1,411,592	811,902
Retained earnings
Legal reserve	21,853	0
Special reserve	0	0
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	255,961	241,375
Total retained earnings	277,814	241,375
Other equity interest
Exchange differences on translation of foreign financial statements
Total exchange differences on translation of foreign financial statements	19,073	1,759
Unrealized gains (losses) on available-for-sale financial assets
Total unrealized gains (losses) on available-for-sale financial assets	96	0
Total other equity interest	19,169	1,759
Treasury shares	0	0
Total equity attributable to owners of parent	4,474,025	3,365,486
Equity attributable to former owner of business combination under common control	0	0
Non-controlling interests	0	0
Total equity	4,474,025	3,365,486
Number of share capital awaiting retirement	0	0
Equivalent issue shares of advance receipts for ordinary share	0	0
Number of shares in entity held by entity and by its subsidiaries	0	0

Profit and Loss Account

Unit: NTD/000

Consolidated	2014	2013
Operating revenue
Net sales revenue
Net sales revenue	6,553,928	5,147,861
Total operating revenue	6,553,928	5,147,861
Operating costs
Cost of sales
Total cost of sales	6,105,085	4,716,670
Total operating costs	6,105,085	4,716,670
Gross profit (loss) from operations	448,843	431,191
Gross profit (loss) from operations	448,843	431,191
Operating expenses
Selling expenses
Total selling expenses	110,481	89,851
Administrative expenses
Total administrative expenses	153,249	34,394
Research and development expenses
Total research and development expenses	71,520	63,042
Other expenses	0	0
Total operating expenses	335,250	187,287
Net other income (expenses)
Net other income (expenses)	0	0
Net operating income (loss)	113,593	243,904
Non-operating income and expenses
Other income
Total other income	61,964	15,182
Other gains and losses
Other gains and losses, net	54,757	28,947
Finance costs
Finance costs, net	62,364	78,174
Total non-operating income and expenses	54,357	-34,045
Profit (loss) from continuing operations before tax	167,950	209,859
Tax expense (income)
Total tax expense (income)	-7,234	-8,675
Profit (loss) from continuing operations	175,184	218,534
Profit (loss) from discontinued operations
Total profit (loss) from discontinued operations	0	0
Profit (loss)	175,184	218,534
Other comprehensive income
Exchange differences on translation	20,860	20,535
Unrealised gains (losses) on valuation of available-for-sale financial assets	96	0
Actuarial gains (losses) on defined benefit plans	-142	0
Share of other comprehensive income of associates and joint ventures accounted for using equity method
Total share of other comprehensive income of associates and joint ventures accounted for using equity method	0	0
Other comprehensive income	0	0
Income tax related to components of other comprehensive income	3,522	3,492
Other comprehensive income, net	17,292	17,043
Total comprehensive income	192,476	235,577
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	175,184	218,534
Profit (loss), attributable to non-controlling interests	0	0
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	192,476	235,577
Comprehensive income, attributable to non-controlling interests	0	0
Basic earnings per share
Basic earnings (loss) per share from continuing operations	0.66	1.04
Total basic earnings per share	0.66	1.04
Diluted earnings per share
Diluted earnings (loss) per share from continuing operations	0.66	1.04
Total diluted earnings per share	0.66	1.04

Cash Flows

Unit: NTD/000

Consolidated	2014	2013
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	167,950	209,859
Profit (loss) before tax	167,950	209,859
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	509,546	539,199
Amortization expense	4,736	5,829
Provision (reversal of provision) for bad debt expense	5,201	-92,002
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	-11,152	12,279
Interest expense	62,364	78,174
Interest income	-5,485	-3,861
Share-based payments	10,465	0
Loss (gain) on disposal of property, plan and equipment	7	0
Loss (gain) on disposal of investments	-1,191	0
Impairment loss on financial assets	0	0
Impairment loss on non-financial assets	14,327	-20,266
Reversal of impairment loss on non-financial assets	5,999	-20,044
Unrealized foreign exchange loss (gain)	3,056	-12,431
Other adjustments to reconcile profit (loss)	-7,991	-7,933
Total adjustments to reconcile profit (loss)	589,882	478,944
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in financial assets held for trading	6,079	-152,814
Decrease (increase) in notes receivable	-98,098	393
Decrease (increase) in accounts receivable	22,028	385,473
Decrease (increase) in accounts receivable due from related parties	0	0
Decrease (increase) in construction contracts receivable	-1,888	-36,739
Decrease (increase) in other receivable	18,090	-24,746
Decrease (increase) in other receivable due from related parties	-784	222
Decrease (increase) in inventories	-79,389	-230,268
Decrease (increase) in prepayments	-14,437	-49,629
Decrease (increase) in other current assets	0	0
Decrease (increase) in other operating assets	19,329	28,463
Total changes in operating assets	-129,070	-79,645
Changes in operating liabilities
Increase (decrease) in financial liabilities held for trading	-2,731	-27,063
Increase (decrease) in notes payable	-135,185	217,398
Increase (decrease) in accounts payable	12,611	14,884
Increase (decrease) in accounts payable to related parties	0	0
Increase (decrease) in construction contracts receivable	559	0
Increase (decrease) in other payable	45,348	95,642
Increase (decrease) in other payable to related parties	2,316	-5,999
Increase (decrease) in receipts in advance	91,367	-13,031
Increase (decrease) in other current liabilities	146	-137
Increase (decrease) in accrued pension liabilities	273	3,671
Increase (decrease) in other operating liabilities	0	215
Total changes in operating liabilities	14,704	285,580
Total changes in operating assets and liabilities	-114,366	205,935
Total adjustments	475,516	684,879
Cash inflow (outflow) generated from operations	643,466	894,738
Interest received	5,069	4,488
Interest paid	-65,587	-78,645
Income taxes refund (paid)	-77	-86
Net cash flows from (used in) operating activities	582,871	820,495
Cash flows from (used in) investing activities
Acquisition of financial assets at fair value through profit or loss, designated as upon initial recognition	67,962	0
Acquisition of available-for-sale financial assets	-1,130,847	0
Proceeds from disposal of available-for-sale financial assets	1,101,038	0
Proceeds from disposal of bond investments without active market	99,524	1,666
Acquisition of property, plant and equipment	-175,358	-439,966
Proceeds from disposal of property, plant and equipment	0	5
Decrease in refundable deposits	140,399	133,585
Acquisition of intangible assets	-709	-347
Increase in other financial assets	-14,635	0
Decrease in other financial assets	0	17,557
Increase in prepayments for business facilities	-58,014	-57,413
Net cash flows from (used in) investing activities	29,360	-344,913
Cash flows from (used in) financing activities
Increase in short-term loans	0	0
Decrease in short-term loans	-171,387	-282,864
Repayments of long-term debt	-141,295	-464,754
Decrease in guarantee deposits received	-3,575	3,533
Increase in other payables to related parties	-505,899	15,357
Cash dividends paid	-138,627	0
Proceeds from issuing shares	1,044,225	475,000
Net cash flows from (used in) financing activities	83,442	-253,728
Effect of exchange rate changes on cash and cash equivalents	-13,996	-36,132
Net increase (decrease) in cash and cash equivalents	681,677	185,722
Cash and cash equivalents at beginning of period	582,751	397,029
Cash and cash equivalents at end of period	1,264,428	582,751
Cash and cash equivalents reported in the statement of financial position	1,264,428	582,751

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. Ye
Department	Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.10
UK Pound	1	Rs.100.89
Euro	1	Rs.73.96

INFORMATION DETAILS

Analysis Done by :	TRI
Report Prepared by :	VNT

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.