MIRA INFORM REPORT

Report No. :	492957
Report Date :	27.02.2018

IDENTIFICATION DETAILS

Name :	VOLTRONIC POWER TECHNOLOGY CORP.
Registered Office :	5/F, No.151, Xinhu 1st Rd., Neihu Dist., Taipei City 11494, (R.O.C.)
Country :	Taiwan
Financials (as on) :	31.12.2016
Date of Incorporation :	01.05.2008
Com. Reg. No.:	28865032
Legal Form :	Joint Stock Company
Line of Business :	Subject is engaged in manufacturing of UPS (Uninterruptible Power Supply) products.
No. of Employees :	About 100 Employees (Taiwan) About 1,300 Employees (Group)

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
Taiwan	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

TAIWAN - ECONOMIC OVERVIEW

Taiwan has a dynamic capitalist economy that is driven largely by industrial manufacturing, and especially exports of electronics, machinery, and petrochemicals. This heavy dependence on exports exposes the economy to fluctuations in global demand. Taiwan's diplomatic isolation, low birth rate, rapidly aging population, and increasing competition from China and other Asia Pacific markets are other major long-term challenges.

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 of that year, 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 uncertain. President TSAI since taking office in May 2016 has promoted greater economic integration with South and Southeast Asia through the New Southbound Policy initiative and has also expressed interest in Taiwan joining the Trans-Pacific Partnership as well as bilateral trade deals with partners such as the US. These overtures have likely played a role in increasing Taiwan’s total exports, which rose 11% during the first half of 2017, buoyed by strong demand for semiconductors.

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 with many economies, including China and the US, 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 and has also secured greater market access for its investors on 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 renminbi (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 opportunities for Taiwan’s economy but also pose challenges as political differences remain unresolved and China’s economic growth is slowing. President TSAI’s administration has made little progress on the domestic economic issues that loomed large when she was elected, including concerns about stagnant wages, high housing prices, youth unemployment, job security, and financial security in retirement. TSAI has made more progress on boosting trade with South and Southeast Asia, however, which may help insulate Taiwan’s economy from a fall in mainland demand should China’s growth slow in 2018.

Source : CIA

Company Name AND Address

Company Name:	Voltronic Power Technology Corp.
Supplied Name:	VOLTRONIC POWER TECHNOLOGY CORP
Trading Address:	5/F, No.151, Xinhu 1st Rd., Neihu Dist., Taipei City 11494, Taiwan (R.O.C.)
Supplied Address:	5F NO 151, XINHU, 1ST ROAD, NEIHU DIST TAIPEI, TAIWAN
Telephone Number:	+886-2-2791-8296
Fax Number:	+886-2-8791-8216
E-mail:	sales@voltronic.com.tw
Website:	www.voltronicpower.com

Notes: The exact name and address are as above.

Company Identification Details

Registered Name:	Voltronic Power Technology Corp.
Registered Address:	5/F, No.151, Xinhu 1st Rd., Neihu Dist., Taipei City 11494, Taiwan (R.O.C.)
Date of Foundation:	2008-5-1
Registration Number:	28865032
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 800,000,000 (USD 27,200,000) (As of 2018.2, 1 NTD = 0.034 USD)
Paid-up Capital:	NTD 786,884,300 (USD 26,754,066.2)
Legal Representatives:	Zhuoming Xie
Legal Form:	Joint Stock Company
Principal Activities:	Manufacturing and sale of UPS products, etc.
Staff:	About 100 Employees (Taiwan) About 1,300 Employees (Group)
Listed at Stock Exchange:	Yes; Stock Code: 6409
Date of Last Annual Return:	2017-7-17

History

Subject was incorporated on 2008-5-1 with registered number 28865032 as Joint Stock Company in Taiwan.

Subject listed on Taiwan Stock Exchange on 2014-3-31.

Corporate Structure

Factories

1
Name:	Neihu Factory
Address:	2/F, No.345, Xinhu 2nd Rd., Huyuan Li, Neihu Dist., Taipei City 11494, Taiwan (R.O.C.)
Date of Registration:	2018-1-19
Factory Registration Number:	63022437
Factory Manager:	Zhuoming Xie
Status:	In Production
Date of Last Annual Return:	2018-1-19
Major Products:	289 Other electrical equipment
2
Name:	Yusheng Production Center
Address:	1-4F, Building 5, Yusheng lndustrial Park, No.467, Section Xixiang, National Highway 107, Xixiang, Bao An District, Shenzhen, China
3
Name:	Zhongshan Production Center
Address:	Area B Ground Floor, Area E 1st Floor, No. 28, Yanjiang East-1 Road, Zhongshan Torch Hi-Tech Industrial Development Zone, Zhongshan, Guangdong, China
Tel:	+86-755-8601-9672
Fax:	+86-755-8601-6603

Subsidiary Companies

1
Name:	Ri Yue Yuan Science and Technology (Shenzhen) Co., Ltd. (Literal Translation)
Address:	1-4/F, Bldg 5, Yusheng Industrial Park, No. 467, Section Xixiang, National Highway 107, Xixiang, Bao An District, Shenzhen, China
Tel:	+86-755-8601-6601
Fax:	+86-755-8601-6603
Date of Foundation:	2008-8-27
Registration Number:	440306503324962
Registered Capital:	USD 2,000,000
Paid-up Capital:	USD 2,000,000
Legal Representatives:	Zhuoming Xie
Legal Form:	Limited Liabilities Company
2
Name:	Zhi An Science and Technology (Shenzhen) Co., Ltd. (Literal Translation)
Address:	3/F, Bldg 9, Yusheng Industrial Park, No. 467, Section Xixiang, National Highway 107, Xixiang, Bao An District, Shenzhen, China
Tel:	+86-755-27470868
Fax:	+86-755-23153339
Date of Foundation:	2011-11-3
Registration Number:	440306503415170
Registered Capital:	USD 1,000,000
Paid-up Capital:	USD 450,000
Legal Representatives:	Zhuoming Xie
Legal Form:	Limited Liabilities Company

Shareholders

Major Shareholders

Name	Subscription Shares
Zhuoming Xie
7,593,680
Kai Hong International Investment Co., Ltd (Liberal Translation)	3,002,546
FSP Technology Inc.	5,595,916
RPS. S.P.A.	3,382,680

Shareholders Information:

1
Registered Name:	Kai Hong International Investment Co., Ltd (Liberal Translation)
Registered Address:	13-3/F, No.259, Sec.6, Nanjing E. Rd., Neihu Dist., Taipei City, Taiwan
Date of Foundation:	2007-2-27
Registration Number:	28474871
Registry:	Taipei City Government
Registered Capital:	NTD 29,000,000
Legal Representatives:	Cuifang Chen
Legal Form:	Private Limited Liabilities Company
Date of Last Annual Return:	2016-2-5
2
Registered Name:	FSP Technology Inc.
Registered Address:	No.22, Jianguo E. Rd., Taoyuan Dist., Taoyuan City, Taiwan
Date of Foundation:	1993-4-15
Registration Number:	84239055
Registry:	Department of Commerce, Ministry of Economic Affairs, R.O.C.
Registered Capital:	NTD 3,600,000,000
Paid-up Capital:	NTD 1,922,619,500
Legal Representatives:	Yaren Zheng
Legal Form:	Joint Stock Company
Date of Last Annual Return:	2017-6-28

Former Shareholder

Name	Subscription Shares
Fu Feng Sheng Investment Co., Ltd (Liberal Translation)	3,013,778

Management Information

Core Management

Directors

1
Name		Zhuoming Xie
Position		Chairman of the Board
2
Name	Cuifang Chen
Position		Director
3
Name	Yaren Zheng
Position		Director
4
Name	Roberto Facci
Position		Director
5
Name	Jianran Li
Position		Independent Director
6
Name	Chun-An Xu
Position		Independent Director
7
Name	Qingxi Yang
Position		Independent Director

Personnel Structure

Total Employees

About 100 Employees (Taiwan) About 1,300 Employees (Group)

Operation Information

Offices & Factories

	Headquarters
Add	5/F, No.151, Xinhu 1st Rd., Neihu Dist., Taipei City 11494, Taiwan (R.O.C.)

Production Information

Subject is engaged in manufacturing of UPS (Uninterruptible Power Supply) products.

Subject has factories in Shenzhen and Zhongshan, China and Taiwan for production.

Subject obtained the certifications of ISO9001 and ISO14001.

Purchase Information

The registered activities of subject:

Business Code	Details
F113050	Wholesale of computer and office equipment
F118010	Wholesale of software
F119010	Wholesale of electronic materials
F401010	International trade business
IG03010	Energy technology service
E605010	Computer installation
E603050	Automatic control equipment engineering
CC01010	Manufacturing of power equipment, transmission equipment and distribution equipment
I501010	Product design
I599990	Other design business
ZZ99999	Besides licensed business, all other business items those are not banned or restricted.

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

Sales Information

Subject is engaged in sale of UPS products, etc.

The major products are standby UPS, DC UPS, line interactive UPS, online UPS, inverter, AVR, solar inverter and so on.

Subject’s sales regions include domestic market, Asia-Pacific, Middle East, Europe, Africa, America, etc.

The products can be applied in manufacturing of communication equipment, electrical equipment, transportation facilities, medical devices, etc.

It is introduced that subject’s customers include Powervar Inc., Intex Technologies India Ltd, Compu Greiff SAS, Breldyng S.A, and Kunhar Peripherals Pvt Ltd. etc.

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

Subject has little imports.

Sales

Domestic Markets

Product	UPS products, etc.
Selling Terms	T/T, Cash, etc.

Export

Product	UPS products, etc.
Selling Terms	L/C, T/T, etc.

Balance Sheet

Unit: NTD/000

Consolidated	2016-12-31	2015-12-31
Assets
Current assets
Cash and cash equivalents
Total cash and cash equivalents	3,039,601	3,334,051
Notes receivable, net
Notes receivable, net	21,694	27,247
Accounts receivable, net
Accounts receivable, net	1,392,944	1,193,908
Accounts receivable due from related parties, net
Accounts receivable due from related parties, net	108,307	159,954
Other receivables
Other receivables, net	117,123	98,685
Inventories
Total inventories	725,603	351,537
Prepayments
Total prepayments	100,061	65,660
Other current assets
Other current financial assets	241,963	151,012
Total other current assets	241,963	151,012
Total current assets	5,747,296	5,382,054
Non-current assets
Property, plant and equipment
Total property, plant and equipment	1,062,153	930,952
Intangible assets
Total intangible assets	8,198	6,103
Deferred tax assets	43,983	19,833
Other non-current assets
Long-term prepaid rents	177,133	0
Other non-current assets, others
Total other non-current assets, others	40,472	29,109
Total other non-current assets	217,605	29,109
Total non-current assets	1,331,939	985,997
Total assets	7,079,235	6,368,051
Liabilities and equity
Liabilities
Current liabilities
Notes payable
Total notes payable	7	2,476
Accounts payable
Total accounts payable	2,022,359	1,580,657
Accounts payable to related parties
Total accounts payable to related parties	260	8,329
Other payables
Other payables, others	546,456	465,240
Total other payables	546,456	465,240
Current tax liabilities	124,403	166,537
Other current liabilities
Total other current liabilities	78,522	49,828
Total current liabilities	2,772,007	2,273,067
Non-current liabilities
Deferred tax liabilities
Total deferred tax liabilities	18,703	26,376
Other non-current liabilities
Other non-current liabilities, others	266	253
Total other non-current liabilities	266	253
Total non-current liabilities	18,969	26,629
Total liabilities	2,790,976	2,299,696
Equity
Equity attributable to owners of parent
Share capital
Ordinary share	787,055	743,557
Total capital stock	787,055	743,557
Capital surplus
Total capital surplus	1,697,404	1,385,450
Retained earnings
Legal reserve	406,623	264,952
Unappropriated retained earnings (accumulated deficit)
Total unappropriated retained earnings (accumulated deficit)	1,764,457	1,629,826
Total retained earnings	2,171,080	1,894,778
Other equity interest
Total other equity interest	-367,280	44,570
Total equity attributable to owners of parent	4,288,259	4,068,355
Total equity	4,288,259	4,068,355
Total liabilities and equity	7,079,235	6,368,051
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	2016	2015
Operating revenue
Net sales revenue
Net sales revenue	8,120,220	8,039,323
Total operating revenue	8,120,220	8,039,323
Operating costs
Cost of sales
Total cost of sales	5,634,608	5,602,291
Total operating costs	5,634,608	5,602,291
Gross profit (loss) from operations	2,485,612	2,437,032
Gross profit (loss) from operations	2,485,612	2,437,032
Operating expenses
Selling expenses
Total selling expenses	212,484	213,091
Administrative expenses
Total administrative expenses	235,590	237,909
Research and development expenses
Total research and development expenses	358,263	307,813
Total operating expenses	806,337	758,813
Net operating income (loss)	1,679,275	1,678,219
Non-operating income and expenses
Other income
Total other income	42,644	44,231
Other gains and losses
Other gains and losses, net	7,662	44,053
Finance costs
Finance costs, net	7,360	5,832
Total non-operating income and expenses	42,946	82,452
Profit (loss) from continuing operations before tax	1,722,221	1,760,671
Tax expense (income)
Total tax expense (income)	293,885	343,961
Profit (loss) from continuing operations	1,428,336	1,416,710
Profit (loss)	1,428,336	1,416,710
Other comprehensive income
Components of other comprehensive income that will be reclassified to profit or loss
Exchange differences on translation	-181,365	-15,952
Income tax related to components of other comprehensive income that will be reclassified to profit or loss	-30,832	-2,712
Components of other comprehensive income that will be reclassified to profit or loss	-150,533	-13,240
Other comprehensive income, net	-150,533	-13,240
Total comprehensive income	1,277,803	1,403,470
Profit (loss), attributable to:
Profit (loss), attributable to owners of parent	1,428,336	1,416,710
Comprehensive income attributable to:
Comprehensive income, attributable to owners of parent	1,277,803	1,403,470
Basic earnings per share
Basic earnings (loss) per share from continuing operations	18.25	18.14
Total basic earnings per share	18.25	18.14
Diluted earnings per share
Diluted earnings (loss) per share from continuing operations	18.20	18.08
Total diluted earnings per share	18.20	18.08

Cash Flows

Unit: NTD/000

Consolidated	2016	2015
Cash flows from (used in) operating activities, indirect method
Profit (loss) from continuing operations before tax	1,722,221	1,760,671
Profit (loss) before tax	1,722,221	1,760,671
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	55,303	56,825
Amortization expense	3,156	3,682
Provision (reversal of provision) for bad debt expense	657	-1,125
Interest expense	7,360	5,832
Interest income	-41,076	-43,060
Share-based payments	57,436	24,893
Loss (gain) on disposal of property, plan and equipment	-195	2,053
Impairment loss on non-financial assets	2,375	3,514
Unrealized foreign exchange loss (gain)	-42,878	-30,974
Other adjustments to reconcile profit (loss)	1,264	0
Total adjustments to reconcile profit (loss)	43,402	21,640
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in notes receivable	4,744	-11,459
Decrease (increase) in accounts receivable	-204,500	-119,102
Decrease (increase) in accounts receivable due from related parties	51,647	-9,739
Decrease (increase) in other receivable	-23,903	-49,267
Decrease (increase) in inventories	-420,678	-5,633
Decrease (increase) in prepayments	-36,030	-4,974
Decrease (increase) in other financial assets	-106,269	-152,071
Total changes in operating assets	-734,989	-352,245
Changes in operating liabilities
Increase (decrease) in notes payable	-2,469	-3,002
Increase (decrease) in accounts payable	562,466	64,654
Increase (decrease) in accounts payable to related parties	-8,069	2,168
Increase (decrease) in other payable	72,633	113,459
Increase (decrease) in other current liabilities	29,917	-3,374
Total changes in operating liabilities	654,478	173,905
Total changes in operating assets and liabilities	-80,511	-178,340
Total adjustments	-37,109	-156,700
Cash inflow (outflow) generated from operations	1,685,112	1,603,971
Interest received	40,916	43,050
Interest paid	-7,360	-5,832
Income taxes refund (paid)	-339,873	-281,800
Net cash flows from (used in) operating activities	1,378,795	1,359,389
Cash flows from (used in) investing activities
Acquisition of property, plant and equipment	-184,806	-97,989
Proceeds from disposal of property, plant and equipment	881	154
Increase in refundable deposits	-3,836	-13,794
Acquisition of intangible assets	-5,361	-2,638
Increase in prepayments for business facilities	-10,156	0
Increase in other prepayments	-189,543	0
Net cash flows from (used in) investing activities	-392,821	-114,267
Cash flows from (used in) financing activities
Cash dividends paid	-1,115,335	-765,109
Net cash flows from (used in) financing activities	-1,115,335	-765,109
Effect of exchange rate changes on cash and cash equivalents	-165,089	57,658
Net increase (decrease) in cash and cash equivalents	-294,450	537,671
Cash and cash equivalents at beginning of period	3,334,051	2,796,380
Cash and cash equivalents at end of period	3,039,601	3,334,051
Cash and cash equivalents reported in the statement of financial position	3,039,601	3,334,051

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

1
Name	Yuanta Commercial Bank Co., Ltd.
2
Name	Taipei Fubon Commercial Bank Co., Ltd.

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

Department

Sales Department

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.66
UK Pound	1	INR 90.65
Euro	1	INR 79.70
TWD	1	INR 2.22

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

INFORMATION DETAILS

Analysis Done by :	VIV
Report Prepared by :	TRU

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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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.